Bitcoin has gained ground among today’s investors. Its proponents say it is the future of currency and investment, while its detractors argue that it is a risky investment option that may not generate large returns.
Bitcoin was created by a group of programmers using the name “Satoshi Nakamoto.” But the real creator(s) of Bitcoin is still unknown to the public.
Recently, Bitcoin‘s valuation has increased more than 763% in just one year, easily outpacing traditional gains in the stock market. And it is becoming a decentralized, global currency.
Virtual “coins” or “tokens” are used in a cryptocurrency system instead of physical cash. But remember: the “coins” have no intrinsic value.
What do you need to invest in Bitcoin?
- Personal identification documents
- Bank account information
- A secure internet connection
If you’re going to be purchasing coins through a stockbroker, you may not need to supply your personal information or financial information because your stockbroker will likely have all that on record.
5 easy steps to invest in Bitcoin
- Join a Bitcoin Exchange
- Get a Bitcoin Wallet
- Connect Your Wallet to a Bank Account
- Place Your Bitcoin Order
- Manage Your Bitcoin Investments
You will need to decide where you want to make a Bitcoin purchase. Most Bitcoin investors use cryptocurrency exchanges.
There is no official “Bitcoin” company because it is an open source technology, but there are several different exchanges that facilitate Bitcoin transactions.
When you buy a coin, it’s stored in a “wallet,” which is where all your cryptocurrency is stored. There are two types of wallets you can get: a “hot wallet” or a “cold wallet.”
The hot wallets are more convenient because you’ll be able to access your coins through the internet or a software program.
Types of hot wallets
- Electrum: Software that enables you to store your coins on your computer
- Mycelium: A mobile-only app for Android and iPhone users