Bitcoin is a form of cryptocurrency that is completely decentralized, meaning that it is not linked to any central bank. It was originally developed by Satoshi Nakamoto, although it is believed that this is not a single individual but rather a group of people. In 2009, the currency was officially released and the Bitcoin Foundation has regularly made improvements and updates to it. You may have seen that’s a lot of people are now interested in making a bitcoin investment as the currency has become increasingly valuable period so how can an average individual do this?
The Basics of Making a Bitcoin Investment
The easiest way in which an everyday individual is able to invest in Bitcoin is by simply buying some. Today, this is easier than ever before as there are numerous organizations involved in buying and selling cryptocurrency. If this is your decision, it is important that you do your research in terms of their prices as a markup should never be more than 1% higher than the actual market price.
In some cases, it is even possible to link your traditional bank account to your bitcoin wallet. This makes it a lot easier to make payments in the future. Sometimes, companies also allow you to purchase new bitcoin at set intervals, thereby ensuring that your investment grows. However, taking advantage of this means that you cannot control the price at which you purchase your bitcoins, which means that you may end up paying more than if you had waited a few more days.
You may also want to consider a number of Bitcoin exchanges. This means that you have a middleman in place who brings together different traders. In other words, you will be trading with individuals rather than with an organization, which is more decentralized. You will find that liquidity is much higher and you can get your fees down to as little as 0.2%.
Besides bitcoin companies and official exchanges, you can also purchase bitcoin offline by linking to your localbitcoins. This is an organization that brings buyers and sellers together, placing fiat currency into escrow. You will actually have to meet individuals in order for this so do make sure that you take precautions such as telling someone where you are and only meeting in a public place.
Right now, bitcoin is a hot commodity and venture capitalist and investors alike have stated that it is likely to continue to grow over the next few weeks and months. If you want to get a piece of the action, you need to start by deciding how you will buy your Bitcoin. Make sure you weigh up the pros and cons of each of your options, thereby finding the one that is most suitable to your particular needs. You may also want to consider using multiple options at the same time, thereby diversifying your actions. Overall, if you have a chance to buy bitcoin right now, you should go for it. It makes for an excellent investment.