If you’ve ever invested in the stock market, you will be fairly comfortable with Bitcoin because it works almost exactly like the stock market does. The same goes for similar cryptocurrencies. Essentially, the more people that buy Bitcoin, the higher the price rises, the fewer people that buy it, the lower the price.
However, where it varies from investing in the shares of a company is when it comes to buying and the surrounds and its value. Over the past several years, people’s fascination and interest in cryptocurrencies has continued to fluctuate quite dramatically, and the main focus has been on Bitcoin for some significant time now. Since 2009, Bitcoin has been a significant name in cryptocurrency, however, hundreds of others are making their way up the ranks.
What is Bitcoin?
Bitcoin is an entire form of digital currency that is available for use in plenty of different ways. It allows you to conduct business and exchange resources in a secure and safe way without having to deal with the hassle of heading to the bank or using a payment entity, especially if you are a busy person. You can use Bitcoin for many different things such as trading it for a product, selling it, or even buying into it much like a stock which we will go over in this article.
You should basically think of Bitcoin as more of a bartering token, though the significant difference is the fact that they are rare and very few of these digital tokens actually exist in the world. Though it is a form of currency, national economies and banks don’t deal with Bitcoin. Instead, software mines it using blockchain, a technology.
One thing to remember about Bitcoin is the fact that it is extremely volatile, which you wouldn’t think at first glance. Because it is a limited source, you would think that its value would always be fairly significant, but that couldn’t be further from the truth when you consider its volatility. It is always evolving and changing, and with plenty being said about it, people are always wanting to buy into it.
Now, the important part. Let’s talk about how to buy Bitcoin stock.
How to buy Bitcoin stock
Whatever you are wanting to do with your Bitcoin investment, there is a process that you will have to go through to be able to buy stock in it. You may want to buy now to prepare for a big sell later, or perhaps you want to spend it on various assets and items. Like I said, whatever it may be, you still need to follow some specific guidelines.
Here are some steps you should take.
- Download a wallet
Before confusion arises, I’m not talking about the leather wallet that sits in your back pocket or even the apple wallet. In fact, it isn’t even similar. Your Bitcoin wallet is a place online for storage and it stores your precious digital currency.
Though it doesn’t just hold your Bitcoin, it also stores your personal key which is a very unique identifier that is personally assigned to every single Bitcoin owner. It is essentially a long string of numbers and letters that secures your Bitcoin and keeps it secure. It is basically a password.
So, in essence, your first step to buying Bitcoin stock is to download a wallet and connect your credit or debit card. There are plenty of wallets available but do your research before settling on one.
- Bitcoin exchange
The next official step is to register with a Bitcoin exchange. Bitcoin relies on trading on a plethora of online exchanged worldwide. To start buying, you will have to look at registering with one of them.
When you are looking at registering, make sure that your debit/credit card information and email address on hand for a seamless transaction. All of the options will recognize the same trading price of Bitcoin. There are also of plenty Bitcoin exchanges you can register with.
- Buy-in amount
When you have successfully downloaded a wallet, selected your exchange, and done your research, you are ready to select your buy-in amount. You may be nervous or think that your amount must be big, but the reality is that your amount can be as large or as small as you want, in moderation.
- Browse a crypto marketplace
Now, with two options in front of you, you must do research and select the best one for you. With your Bitcoin in your wallet and every other step complete, you are now faced with two options. With your purchase, you can choose one of two things:
- Buy and wait- As with any form of investing type variants, sometimes buying and leaving it alone is the best thing you can do. In fact, one of the keys to making money on Bitcoin is to simply leave it alone. Because of its volatility, obsessively watching the value peak and dip every single day can be frustrating.
- Spend it in a marketplace- Bitcoin has specific marketplaces that you can trade Bitcoin for products. There are so many great things you can buy such as jewellery which is delivered straight to your door, or even things that are downloadable on your computer, such as Microsoft Office. However, one thing you must remember is that banks are not involved in any way with these transactions.
If you’re interested in anything to do with Bitcoin, open an account today for exclusive access to plenty of benefits when you register!