Bitcoin is the largest cryptocurrency, and it has been through tremendous ups and downs over the last 14 years. At the time of writing, Bitcoin’s value is beginning to rise again, making it a valuable asset to add to your portfolio. If you’ve never invested in Bitcoin before or you’re searching for an alternative method, especially after the FTX catastrophe, continue reading.
Countless financial apps will let you buy Bitcoin without needing to sign up for additional services. For example, Venmo and PayPal both allow their users to add crypto to their digital wallets. However, if you’d rather interact with a more secure app and have more custody over your coins, you can easily learn how to buy bitcoin with checking account by following the link.
Despite Sam Bankman-Fried’s efforts with FTX, there is still plenty of merit to be found in crypto exchanges. For example, Coinbase, Kraken, and Binance are all hugely popular and used within the mainstream. Each exchange will sell you Bitcoin with different rates attached, so take time to explore each one before committing.
Regardless of which exchange you use, we highly recommend moving your new Bitcoin assets into a decentralized wallet. That way, if the exchange was to be attacked or go bankrupt, your assets will be 100% secure.
Many traditional brokerage platforms have recognized the growth of cryptocurrency and added it to their available markets. For example, Interactive Brokers lets you trade Bitcoin directly and buy futures. However, you should note that the fees for investing through a broker can be fairly high, so ensure you’ve explored different platforms beforehand.
Trading apps are another viable means of investing in Bitcoin, but they’ll all come at different costs. For example, Robinhood will allow you to trade any crypto with zero commissions, but it will make up the costs through a spread markup. Alternatively, Webull allows you to trade between 25 different cryptocurrencies, but each transaction is charged at 1%. If you’re only adding Bitcoin to a portfolio of other tradeable assets, this may be your best choice.
Given the increase in demand for crypto, you’ll find dedicated Bitcoin ATMs, which allow users to purchase Bitcoin with a traditional debit or credit card. Instead of interacting with your bank, a Bitcoin ATM will connect to your wallet, which helps to keep your assets secure. Although these ATMs are secure, you should note that the commission will be extremely high. After all, the machine needs to be maintained by someone.
Thoughts on Bitcoin Storage
Before you invest in Bitcoin, you’ll need to have a digital wallet. If you’re only interacting with Bitcoin, any wallet will facilitate your needs. However, you should learn the difference between hot and cold storage. Additionally, you will need to know how to keep your private codes safe and secure.
There are many different ways to buy Bitcoin, and they all have pros and cons. Choosing a method will be down to personal requirements and opinions – the most important part is keeping your assets secure.
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