Investing in the stock market has been the traditional way for individuals to seek wealth for the future, but times have changed. In 2009, Bitcoin (BTC) was introduced, and the financial world entered into a new age where people can use digital currencies alongside other investment vehicles to seek monetary gains. Investing in cryptocurrency and learning how to buy Bitcoin may provide another form of income that can be used for retirement, paying bills or saving for a home. Finding and using a platform where Bitcoin is available is one of the first steps required to get started.
When deciding to purchase cryptocurrency, the most popular choice is Bitcoin, which isn’t surprising. It was the first digital currency to be developed, and all other cryptocurrencies are based on it. Adding it to a portfolio can be completed by learning how to buy Bitcoin and deciding on the type of platform to use. Some popular choices include:
– SoFi Invest
If a person is used to buying and trading stocks or ETFs, they may want to use a platform where this opportunity is also available. Webull and SoFi Invest offer this choice. Having funds in one of these accounts allows a person to diversify their investment or trading portfolio and take advantage of movements in crypto and the stock market at the same time.
Coinbase is a good choice to use for people who want to become active crypto traders once they’ve bought BTC or other cryptos. It includes several different cryptocurrencies, such as ETH, ETC LINK, that can be exchanged for Bitcoin. It’s highly trusted, beginner-friendly and can be linked to a bank account. Once a bank account is connected, a person can buy BTC or several other cryptocurrencies and trade them on the exchange or move them to a digital wallet.
For investors interested in utilizing a platform allowing stock, ETF, options and cryptocurrency trading, they may want to use Webull. After funding their account, they can trade cryptos with $0 commissions or fees. Both cash and margin individual accounts can be opened with this platform, and they also support IRAs.
Kraken is similar to Coinbase as it is strictly for trading cryptocurrencies. Funding an account to purchase crypto can be done by using FedWire, SEPA or SWIFT. Once a person’s funds are in their Kraken account, they can start trading BTC, ETH, LTC or about 40 other digital currencies.
Like Webull, SoFi Invest is a platform where stocks, ETFs and cryptocurrencies, such as Bitcoin, can be traded. After opening an account and funding it, a person can start accumulating BTC and hold it or exchange it for other cryptocurrencies. According to the experts at SoFi Invest, “Risk is a natural part of investing. And due to its volatility, crypto carries a higher degree of risk than traditional investments.” It’s usually advisable to have a trading plan if a person is going to purchase any investment vehicle, whether it’s crypto, stocks or ETFs. Investing no more than a person wants to lose is always a wise choice.
An investor may want to take another action when buying cryptocurrency, which is to hold their crypto on a digital wallet. Crypto wallets are available in different types, including the following:
– Desktop Wallets: Atomic Wallet, Electrum, Ledger Live
– Android Wallets: Atomic Wallet, Coinomi, Jaxx Liberty
– IOS Wallets: Coinomi, Jaxx Liberty, ZenGo
– Hardware Wallets: Ledger, Trezor
One or more of these wallets can be used to hold Bitcoin. Hardware wallets are the most secure and give a person control of their private keys. Desktop wallets and smartphone wallets are ideal for storing smaller amounts and trading crypto. Purchasing BTC from a platform, such as Coinbase or Kraken, allows a person to send their crypto to another digital wallet. Using SoFi invest or Webull is ideal for individuals who prefer funding an account to trade their favorite cryptocurrencies and traditional assets.
Getting started with cryptocurrencies may offer another excellent way to create gains in a long-term investment or trading portfolio. They can be used to offset ETFs and stocks or purchased to speculate on price movement.