Introduction to Bitcoin Investing
Since its creation in 2009, Bitcoin has made its place as a desired and overall intriguing asset to invest in. But as the mainstream adoption of Bitcoin continues, more large investment firms, banks, and individuals are getting involved. With this increase in popularity comes more scrutiny from governments and their need for regulation, but there also comes more potential opportunity.
If all the buzz surrounding Bitcoin has caught your interest, but you’re wondering the best way to invest in Bitcoin, stay tuned. As with other types of investments, there are different ways to invest in Bitcoin. For some of us who are newer to the world of crypto, Bitcoin may present a whole new world of possibilities when it comes to investing. You may be hesitant to take that initial leap from observer to investor, but not to worry because you’re not alone and this article is for you. So what is the safest way to invest in Bitcoin? Let’s dive in and find out.
How can I invest in Bitcoin?
Many different ways to invest in Bitcoin have emerged over the years. From ETFs to Index Funds, to IRAs and “crypto stocks,” there are several ways you can invest in Bitcoin. In 2018, the value of Bitcoin was around $3,327. If you started investing in 2018, you have likely seen a healthy return on your investment. Today, one Bitcoin is worth over $42,000. With an increase like that, it’s no wonder you are curious about investing in Bitcoin. Initially, the various ways to invest in Bitcoin can seem confusing, especially if you are just starting out.
If you have experience in trading stocks, this may help you navigate various platforms and potentially make sound financial decisions. If you are unsure of certain components, you may be able to seek trusted, financial advice from experts, or even friends or family members whom you know trade Bitcoin. But it’s important to remember that when it comes to investing, there is no guarantee that you will win or lose.
If you’ve decided that you’d like to invest in Bitcoin, you can easily do so through a platform, such as ours, Bitcoin IRA, which also offers a robust mobile app. Or, if you’d like to explore other options, here are 4 steps that may help you start your Bitcoin investment journey:
- Determine where you want to buy Bitcoin. Ask yourself: Would you want to use our platform to open a Bitcoin IRA account? If so, do you have any existing IRAs or 401ks that you’d consider rolling over into a Bitcoin IRA?
- Choose a cryptocurrency storage method. As briefly mentioned above, there are a few ways you can store cryptocurrency.
- Buy Bitcoin. Of course, getting to this step will probably take plenty of research. When you are ready, this is where you can execute your investment strategy.
- Manage your investment. For most investments, it’s common to incorporate a long-term plan and close supervision. (As with most endeavors, it’s typically a best practice to monitor your investment closely).
How do I store my Bitcoin safely?
Knowing how to properly store your Bitcoin can help you avoid particular hazards of crypto security. Once you’ve purchased your desired amount of Bitcoin or other cryptocurrencies, you may want to determine what type of wallet to store them, such as a digital or cryptocurrency wallet. A digital wallet can help to ensure that you have complete control over the private key to your funds, and may help to protect you from hacks that can occur on the exchange, itself.
You can choose from an online wallet called a “hot” wallet or a wallet that resides on your computer’s hard drive or a USB drive, called a “cold” or offline wallet. It really comes down to preference as both types of wallets are used by many cryptocurrency holders. If you plan to trade frequently, you may want to use a hot wallet. Of course, the choice is entirely up to you—the cryptocurrency holder.
Our Bitcoin IRA platform provides users with a customized dashboard and digital wallet that can be accessed after creating an account. After you open an account, you will have access to tutorial videos and other helpful, educational materials created to assist newer investors, like you, get started with your investment journey.
Different Ways to Invest in Bitcoin
The good news is that, these days, there are some simple ways to invest in Bitcoin that are potentially less volatile and geared to the more long-term investor. These include Bitcoin IRAs, ETFs, and a few others.
A Bitcoin IRA is a self-directed IRA (SDIRA) that invests in alternative assets like Bitcoin, real estate, and precious metals, like gold and silver. To invest in a Bitcoin IRA you will need to determine the type of account (IRA or Roth IRA account) you’d like to open, then fund it by either transferring funds from a previous retirement account or by connecting a bank account. At this time, you cannot transfer previously owned Bitcoin into your portfolio, unless it’s a crypto investment through another IRA account. Getting started with crypto investments using Bitcoin IRA—the industry-leading crypto IRA platform, may be broken down in three easy steps and is just one click away.
An ETF (exchange-traded fund), is a grouping of securities that trade on an exchange the same way a stock does. More ETFs are including Bitcoin in their fund alongside commodities, bonds, currencies, and stocks. Diversification helps to keep volatility low.
Crypto stocks offer a way to invest in the idea of Bitcoin or the technology behind cryptocurrencies without actually holding any of the cryptos yourself. This may include companies that work on blockchain solutions, data centers, or companies that allow payment with Bitcoin.
Is now a good time to invest in Bitcoin?
As with any investment, determining when a good time to buy is, involves some research and planning. While sometimes investors buy with the hopes of luck and potential to become profitable, this may not always be the case. Similar to the stock market, Bitcoin prices can fluctuate. When they are down, it may present a good time to invest. Ultimately, investment decisions will be your responsibility. What we can say is that cryptocurrency investments are far more turbulent than the average stock. If you plan strategically and invest with intention, you may set yourself up for potential success with your Bitcoin investments.
What are the risks of investing in Bitcoin?
There are numerous risks associated with investing in Bitcoin. Some of these risks include:
- Loss, destruction, or theft of the private key.
- Hacks and thefts of exchanges.
- Risks associated with peer-to-peer transactions.
- Increasing restrictions on the trading of digital currencies.
- Risks associated with currency conversion.
- Uncertainty of evolving tax law with respect to cryptocurrencies.
What are the benefits of investing in Bitcoin?
Investing in Bitcoin can be rewarding. Bitcoin was created to be immune to inflation and its liquidity is unmatched. You can trade Bitcoin for cash, gold, and property instantly, without an intermediary like a broker or a bank, and with incredibly low fees.
Also, Bitcoin trading is minimalistic. Anyone can buy and sell Bitcoin and you won’t need a stock trading license or to go through a brokerage firm to make investments. Also, the transactions are instant, where stocks can take days or even weeks to buy or sell.
Diversify your portfolio
Diversification is key for an investment portfolio. Diversification can provide protection for the investor and their assets in the event of a market crash and other events. .
Start planning for your retirement – Invest in Bitcoin with Bitcoin IRA
Our platform can allow you to start trading crypto in 3 simple steps. Successful crypto investments can help you plan for retirement.
Advantages of Investing in a Bitcoin IRA may include:
- Tax deferred
- Without capital gainstax
- Only taxed when you withdraw
Our platform is the world’s first, largest, and most secure cryptocurrency IRA platform that is used by thousands of clients. Bitcoin IRA users can take advantage of the numerous tax benefits that an IRA has while investing in the long-term potential that cryptocurrency offers. In addition, users can buy and sell online any time with our platform that contains built-in live price tracking, portfolio performance metrics, and educational articles and videos. Bitcoin IRA offers world-class security1 with up to $7002 million custody insurance.
If you have been considering entering the crypto market but are unsure of how to begin, signing up for a Bitcoin IRA may be a great way to plan for your future and your long-term financial goals.
1Security may vary based on asset chosen and custody solution available.
2Insurance may vary based on asset chosen and custody solution available.
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