5 Easy, Bitesized Steps on How To Invest in Bitcoin

Most people had never heard of Bitcoin in 2010, and even fewer would have considered it an investment-worthy asset. But a decade later, investing in Bitcoin is growing in popularity with advances in cryptocurrency, blockchain technology, and the metaverse.

According to Michael Denny, a cryptocurrency investor and CIO of The Investment Nerd, “Investing in Bitcoin is the equivalent of investing in the internet in the mid-90s. There is so much potential it’s hard to overstate what is possible, but like with the internet, it will take many years for its full potential to be realized.”

How To Invest in Bitcoin

Investing in Bitcoin has been compared to investing in “digital gold.” Setting aside the inflation-hedge claims of Bitcoin enthusiasts, comparing it to gold is a good analogy when considering the myriad ways to invest in Bitcoin.

Invest in Companies That Utilize Blockchain Technology

One way to get Bitcoin exposure in your stock portfolio is to invest in companies that use Bitcoin and the blockchain technology on which it’s based. This type of investment will not give you direct ownership of Bitcoin, but it will let you invest in innovative companies advancing the use of blockchain technologies.

Invest in a Bitcoin ETF

An ETF is a specialized investment vehicle that tracks the performance of a particular asset without the investor having to own the actual asset itself. It takes away the hassle and security risks of owning Bitcoin directly and opens the doors for anyone with a brokerage account to invest in Bitcoin.

Participate in Bitcoin Mining

Bitcoin mining is a way to receive actual Bitcoin in exchange for lending your computing power to solve complex math problems and completing blocks of verified Bitcoin transactions on the blockchain. As more coins are mined, the reward for solving the subsequent successive block decreases, and the difficulty increases.

Purchase Bitcoin Directly

Last but certainly not least on the list is purchasing Bitcoin directly. If you are looking for a pure-play on the price movements of Bitcoin, there is no better way than to own the asset itself.

How To Buy Bitcoin

1. Decide Where To Buy Bitcoin 2. Choose a Bitcoin Wallet 3. Connect Your Bank Account 4. Place Your Order 5. Manage Your Investments

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