You’ve probably heard some people say that Bitcoin and other digital currencies will shape the world in the coming years. But how do you invest in Bitcoin without losing your hard-earned money? Mainstream investors have undoubtedly changed their perception of Bitcoin and other digital currencies. Initially, some investors ridiculed this digital currency, associating it with the dark-web world. Apart from computer programmers, most people didn’t understand Bitcoin.
However, the narrative has changed dramatically over the last decade. Even traditional investors want to add this digital currency to their investment portfolio. Many people see Bitcoin as a digital currency and an asset that could bring significant returns to entities that buy and hold it in their investment portfolios.
Bitcoin employs a decentralized computer network to facilitate and manage transactions. The distributed public ledger for this cryptocurrency comprises the details of every transaction that users have ever completed on its blockchain network. Also, the register provides information that helps the users to verify transactions. So, how do you add this popular crypto asset to your investment portfolio? Here are effective ways to do that.
Use a Reputable Crypto Exchange
Crypto exchanges provide a popular way to purchase and add Bitcoin to your investment portfolio. Becuase crypto is volatile, certain platforms allow you to create an account and buy Bitcoin with fiat money. Using such a platform has several advantages. For instance, you can buy this crypto asset safely because the platform has verified users through the KYC policy. Also, you don’t incur spread markups or hidden fees for trading prices. Additionally, a crypto exchange could provide a digital wallet, meaning you can store your coins securely.
However, Bitcoin exchanges charge varying fees. Therefore, investigate the costs the platform will require you to pay when buying Bitcoin. Also, consider the security measures that the platform implements to ensure the safety of your Bitcoins and fiat money.
Bitcoin Trading Apps
Some crypto trading apps allow users to purchase Bitcoins without paying any direct commission. However, you will make up for this with the spread markup. Also, some applications do not reveal the cost of the markup fees.
Nevertheless, trading applications allow users direct access to the crypto asset. Some of these tools also facilitate purchasing ETFs and stocks via an easy-to-use platform.
You can also purchase Bitcoin via a Bitcoin ATM. However, you might pay more commissions with this option. Some Bitcoin ATMs allow users to buy and sell coins. Also, you can use a debit card or cash to pay for the coins. However, you will require a crypto wallet to transact.
The only drawback of this option is the high commissions, with some machines charging about 7% per transaction. Some ATMs can even charge higher commissions.
Financial applications and services like Venmo and PayPal allow users to trade Bitcoin. For instance, PayPal allows you to purchase and sell Bitcoins on their app. If you have been using PayPal to transact online, you may use this method to add Bitcoin to your investment portfolio.
Trades not exceeding $5 involve a fee of $0.5, and it increases from that point. If you trade between $200 and $1,000, you will pay a fee of 1.8% and 1.5% for trades above $1,000. Also, you will incur spread markup fees, but holding the cryptocurrency on the platform doesn’t attract any fee. PayPal allows users to trade as low as $1. Also, you can exchange Litecoin, Bitcoin Cash, and Ethereum on the platform. Since PayPal owns Venmo, similar charges apply.
These options make adding Bitcoin to your investment portfolio straightforward. Therefore, research each of these methods further to choose the option that suits you better.