How to Invest in Bitcoin: A Complete Step-by-Step Guide

How to Invest in Bitcoin: A Complete Step-by-Step Guide

Nowadays, many people wonder how to invest in Bitcoin, the most secure cryptocurrency. Investors see it as a fundamentally new and promising type of asset.

At the same time, the volatility of the BTC exchange rate carries great risks. However, by spending some time and effort to learn more about the subject, you can recoup your investments. How to invest in Bitcoin? Let's try to find out!

How to Invest in Bitcoin Stocks: Top Strategies to Know

When talking about investing in Bitcoin stocks, cryptocurrency enthusiasts often refer to one of the following strategies. Let's consider them in detail!

HODL

A buy and maintain Bitcoin investment strategy. An investor buys coins and keeps them in his account for a long period of time, expecting the gradual increase in the value of the BTC.

The method is based on the opinion that any long-term financial instrument can bring good results. Furthermore, it is an ideal strategy for those who do not have enough experience in speculative trading.

It's easier for them to buy and maintain. The investment strategy is passive. In addition, its main feature is the large investments. It is not worth investing $100, as the resulting profit is not worth such a long wait.

Trading (Exchange Rate Speculation)

Bitcoin speculation is a situation where the investor feels that the current rate is incorrectly estimated, so they buy or sell BTC with the expectation of making a profit.

So how to invest in Bitcoin stocks? For example, if investors think that the BTC is overvalued, they sell their shares and therefore have a negative impact on the price.

Trading is closely related to trying to predict short-term price movements by studying the industry in general and price charts in particular. Successful bitcoin trading requires a lot of time, money and effort to bring good results.

How Much to Invest in Bitcoin: The Best BTC Cryptocurrency Exchanges

How much to invest in Bitcoin? Which cryptocurrency exchange to choose? Once you have a wallet, you can start investing in Bitcoin.

Buying BTC on a cryptocurrency exchange is perhaps the fastest, most convenient and most cost-effective way. That's why beginners and experienced users often turn to it. Let's consider examples of worthwhile cryptographic exchanges.

Changelly: is a non-custodial cryptocurrency exchange that offers nearly 200 different virtual currencies. Its easy-to-use service is secure and allows you to exchange crypto currencies at low rates.

Changelly

Quick registration

Trade, buy and sell. It is very easy to use and offers over 200 Cryptocurrencies.

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Changelly is among the best exchanges, it is a cryptocurrency exchange platform that allows users to exchange, buy and sell over 200 cryptocurrencies.

With an intuitive and straightforward platform, tools that let you quickly find the best exchange rate, and multiple currency forms and accepted payment methods, Changelly offers a wide range of advantages over its competitors.

While (we'd love to) see Changelly expand their educational offerings and consider adding phone support to their customer service repertoire, the platform is a solid choice for both new and experienced traders.

LocationBitcoins: it is a P2P platform, where one user places an ad to buy / sell a cryptocurrency, the other responds. Thus, the exchange guarantees the integrity of transactions between users.

Quick registration

Local Bitcoins also offers options for purchasing cryptocurrencies via PayPal.

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Essentially, LocalBitcoins is a marketplace for people to post their offers to buy or sell Bitcoin.

As a user, you create a post in which you specify the exchange rate, location, and preferred payment method for a trade.

You can also boost your post as an ad, which will increase your visibility (this is basically how LocalBitcoin makes money).

If someone is interested in your post, they will respond to you and you can both agree to make a trade using a bank transaction, payment service, or any other available method.

How does localbitcoin work?

Unlike centralized exchanges like Coinbase, LocalBitcoins allows you to trade directly with others.

However, the platform is also not fully decentralized as it records and oversees all your transactions made via LocalBitcoins.

When you initiate a trade, the bitcoins traded are held in the LocalBitcoins escrow service. The transaction is completed only when the seller confirms that the deal has been made.

Another crucial aspect of the LocalBitcoins platform is its native reputation system. Chargeback fraud is a common thing in e-commerce, and while Bitcoin transactions are irreversible, traditional payment providers still allow it.

As a result, some people can be tricked into selling their bitcoins and then lose their money. LocalBitcoins' reputation management system allows users to leave feedback for buyers and sellers, which can help you determine if the buyer or seller is legitimate.

As a general rule, it's safer to deal with older accounts with better feedback than it is to settle new, obscure accounts.

Do not choose offers based on price alone — any offer with an unusually low price should be regarded with suspicion unless the trader has fully verified and received a lot of positive feedback.

Also, you can search the LocalBitcoin forum to see if there are any issues related to the seller's username.

In case of conflict between users, LocalBitcoins has a dedicated support team that assists in resolving conflicts.

The LocalBitcoins website is not a masterpiece of design, but it does its job — it lets you discover and post local Bitcoin ads easily.

If you want to buy bitcoins, all you have to do is enter relevant search criteria like location, sum and payment method into the search.

Avatrade: Founded in 2006, AvaTrade has offices in 11 countries and provides a variety of web, desktop and mobile trading platforms, offering forex and forex spot options and CFDs across multiple asset classes including cryptocurrencies.

Quick registration

With regulatory licenses on 5 continents and extensive presence of global offices. Free Demo Account!

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AvaTrade earns a spot on our list of best online brokers. This brokerage provides online trading services to over 200.000 clients worldwide. They process a monthly trading volume of around $60 billion, making them one of the largest online brokers.

AvaTrade is an award-winning online brokerage that has offices located in multiple countries and offers 24/5 support in 14 languages. They have some of the best online trading conditions available, with reliable execution speeds, tight spreads and no commission fees.

They have one of the largest selections of trading instruments available on any online broker, providing traders with over 250 instruments in different markets to trade online, including forex, CFDs and cryptocurrencies. There are a variety of free trading platforms to choose from, suitable for all different levels of experience and trading style.

In addition to a wide range of investment products, AvaTrade also provides traders with a wide range of sophisticated trading tools to aid in trading and educational materials to help improve trading knowledge and skills.

AvaTrade is authorized and regulated on 5 continents by 6 regulatory authorities. This is an impressive number of regulators that help show that they are safe and trustworthy online brokers who must comply with established rules and regulations to protect investors.

How to Invest Money in Bitcoin: 5 Common Investment Mistakes

After figuring out how to invest money in Bitcoin, let's consider the most common investment mistakes made by beginners.

  1. Lack of discretion. Even if you're not an expert or analyst, that doesn't mean you should act blindly. Be sure to study background information, talk to experts, and make smart investments.
  2. ignoring the Technical Analysis. Just learn the basics and market trends. In this case, the process of investment it will be easier and safer. This is a basic minimum pack of knowledge that every novice should have before dealing with cryptocurrency trading.
  3. Excessive trust or greed. It is possible to find many false promises of big gains in Bitcoin in a short period of time. Never invest in these companies or platforms and better be aware.
  4. Do Not Use Stop-Limit Order. This order is an excellent way to reduce risk when trading, you should not neglect it. Otherwise, you could lose your entire deposit on the first day.
  5. Start Trading Small Transactions. Make small transactions to get started. Make sure you are doing everything correctly and that the BTC is being transferred to the correct address.

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