Bitcoin investments are the talk of the town and people are getting drawn towards cryptocurrency investments in a big way. Whether it is the Bitcoin ATMs that are mushrooming everywhere or individuals looking to mine Bitcoins through a mining pool, the popularity of Bitcoins cannot be ignored.
Ways to Invest in Bitcoins:
Bitcoin is nothing but an online decentralized peer-to-peer digital currency that is not under control of banks or governmental financial institutions. The idea behind introducing Bitcoins was to allow people to transfer money online securely, without fear of frauds and third party interventions. There are different ways to invest in the Bitcoin:
- Mining: Mining is a less-popular option when it comes to Bitcoin investment methods, but it has been around the longest. Mining involves solving complex cryptographic puzzles with the help of powerful computers. When you can solve problems correctly you will be given rewards as Bitcoins. In order to do mining, you need to connect your computer to Bitcoin’s network, and once the mathematical problem is solved, a new block gets added to the blockchain network, and the miner is given Bitcoins in exchange.
- Trading: It is possible to sign up with online cryptocurrency exchanges to trade Bitcoins. Sites like Coinbase let you exchange the fiat currencies with Bitcoins or any other crypto coins of your choice. Unlike online transactions which take a while to get approved and verified, Bitcoin verifications and transactions are much faster. The invention of automated trading applications has made the bitcoin trading even faster and effective. This automated software bitcoin revolution review will help you understand how the trading is automated for you to easily transact.
- Direct Buying: You can even buy Bitcoins face-to-face as these transactions can be the quickest. But these are the most risk-prone too because there are chances of scams and thefts. So, for a face-to-face investment it is important to check for the seller’s background. It is best to meet the person in question at a public place for your own protection. It is advisable to check for Bitcoin sellers and buyers on platforms like LocalBitcoins where you can find ratings for each trader depending on his reputation and credibility. The transactions done directly are the speediest way to invest in Bitcoins. Sellers can send the money right away from their digital wallet to yours.
- Bitcoin Exchanges: Serious investors will try Bitcoin exchanges where you can meet other Bitcoin enthusiasts and trade in Bitcoins. When you reside in a country with an official Bitcoin exchange there is no problem in buying Bitcoins against fiat currency. You may sign up in these exchanges like Coinbase or Kraken, and transfer funds from your account to buy Bitcoins directly.
- ATMs: It is possible to invest in Bitcoins through Bitcoin ATMs which are machines that will accept cash to offer you Bitcoins. Some individuals use these ATMs even for selling their Bitcoins in exchange for fiat currencies.
- Marketplace Exchanges: There are some decentralized options for buying Bitcoins and altcoins like peer-to-peer marketplaces, such as, Paxful, Open Bazaar, Bisq, etc. For instance, Open Bazaar allows users to establish ecommerce stores and sell digital services and goods with payments between parties directly in crypto coins.
