Input your search keywords and press Enter.

Understanding the Bitcoin Investment Options

Bitcoin Investment Options

Introduction

In 2020, Bitcoin emerged as the most lucrative financial instrument for investors around the world. The rise of the cryptocurrency market defined the stellar growth in the value of Bitcoin. While fiat currencies tumbled in the COVID-19 pandemic, the economic slowdown benefitted Bitcoin investors around the world. Today, 1 BTC token is worth over $55,000 but was worth less than $10,000 in late 2019. In the past year, Bitcoin investments have registered more than 200% growth, a pipedream for investors. Bitcoin is gaining more popularity as the value of Bitcoin is continuing increasing & several users/investors are making a profit from it. Suppose you are planning to invest or trade in Bitcoin. In that case, the Bitcoin Code trading system is considered as the most reliable and innovative Bitcoin trading robot & it is also very effective in making money. You can check Bitcoin Code Reviews and learn more about its features and tools.

Different Types of Bitcoin Investments

To invest in Bitcoin, you can adopt multiple techniques. The following three techniques can help you make a better investment in Bitcoin.

  • Short Positions: Investors can bet on how Bitcoin’s value would decrease in the coming weeks. This can help them profit from the rapid fall of prices soon after a rapid price increase.
  • Long Positions: Investors can get quick returns by purchasing Bitcoin at low prices and selling them when they reach their desired mark. With this investment type, Bitcoin’s volatility works in your favor.
  • ‘Hodl’: The term is an intentional misspelling of “hold” and used as a Bitcoin investment type for holding BTC tokens. It helps investors in storing their BTC wealth for a long period to reap higher results.

How to Invest in Bitcoin – 5 Ways

The following five methods can enable you with effective Bitcoin investments in 2021. These methods are proven and are being practiced by millions of Bitcoin investors around the world.

#1 Mining

The basic way of investing in Bitcoin is mining. It is a DIY method, where you use your computer and perform crypto mining on the internet. To mine Bitcoin, you need to connect your computer with the Bitcoin network and solve the cryptographic puzzles. You can also use special mining hardware to find and solve the puzzles quickly. After the puzzle is solved, the blockchain presents a Bitcoin token to you along with its public key.

#2 Trading

Trading Bitcoin is also a sought-after investment strategy. Online Bitcoin exchanges provide trading services as a popular way to invest in Bitcoin. Platforms such as Coinbase help exchange your fiat currency for Bitcoin and other virtual currencies. Online transactions may take two weeks to get verified, but the trade gets executed effectively. When the value of Bitcoin swings, you profit from your trading investments.

#3 Direct Buying from Bitcoin Investors

Purchasing Bitcoins is downright the easiest way to invest in cryptocurrency. However, the process of buying Bitcoin is complicated. It involved multiple transactional barriers and processing fees. To do this more quickly, you can buy BTC directly from Bitcoin investors via face-to-face transactions. These face-to-face purchases involve cash transactions. Several Bitcoin investors are willing to bring in major Bitcoin investments at the right prices.

#4 Buying from Crypto Exchange

If you are serious about being a Bitcoin investor, you need to partner with a reputed Bitcoin exchange. Decentralized cryptocurrency exchanges offer Bitcoin at market prices. You can buy from these exchanges, provided that you have a crypto-friendly bank account. This process may take longer to complete, but Bitcoin exchanges protect your investments in the most robust way possible. Compared to face-to-face Bitcoin purchases, Bitcoin exchanges provide a group of BTC experts to help you with your investment.

With Bitcoin exchanges, you can buy unlimited BTC tokens. Most BTC exchanges offer low transactional fees on bulk purchases. Being a part of the community via these exchanges is also a great way of networking with other Bitcoin enthusiasts and trading your investments with them.

#5 Bitcoin ATM

Lastly, you can seek a local Bitcoin ATM to buy BTC currency. These ATMs are rare and available only in developed cryptocurrency markets. Currently, Bitcoin ATMs are available in the US, the UK, Canada, Australia, and similar developed economies. Bitcoin ATMs charge a small transaction fee of 5% on your purchase. You can buy Bitcoins worth up to $100,000 through these ATMs. For new investors, Bitcoin ATMs are the most convenient ways of buying and selling Bitcoins for cash.

Final Thoughts

Bitcoin continues to be one of the most attractive investment options in the world today. Investors must know how to buy Bitcoin safely. Due to the rising instances of cyberattacks on Bitcoin investors, they need to avoid losing their investment. For every average investor, Bitcoin is a very high-risk investment that should be a part of their investment portfolio.

Carl Newton

Carl Newton is a blockchain analyst and has 4 years of experience in bitcoin exchange. He makes people aware about the importance of cryptocurrency trading. He writes latest news contents for our team.