26.05.2022 Intermediate Topics

How to invest in Bitcoin

How to invest in Bitcoin

Bitcoin has been around for more than ten years, and during this time has attracted the attention of many investors, including traders with significant financial capabilities. Investing in bitcoin (usually long-term) is an opportunity to invest in a fairly reliable and popular currency. Investors who have the grit and do not divest themselves of their holdings during periods of short-term decline in demand for bitcoin receive good dividends.

Direct purchase of cryptocurrency

The first way to get bitcoins is to buy them on a cryptocurrency exchange. However, the platform for transactions must be chosen responsibly, taking into account authority, fame, and stability. If your goal is to trade cryptocurrency and often use it for various transactions, then it is better to store the purchased tokens on the exchange, this will greatly facilitate access to them.

Among the advantages of this method of investing is the ability to use purchased bitcoins for trading, investor protection, since most of the largest crypto exchanges have long entered the legal field, as well as the ability to transfer bitcoins to stablecoins at any time if quotes start to decline. If bitcoins are bought for the purpose of long-term investment and will not be used in the near future, then it is better to withdraw digital coins to a cold wallet.


You can get cryptocurrency in another way — by extracting it by providing your own computing power to maintain the network. Buying one ASIC miner and connecting it at home will not bring a normal income. However, this can be done in order to get acquainted with the mining industry and gain relevant experience, he added.

To count on a serious profit, you need a lot of machines, because then the service in terms of each device will be cheaper. Also, people who are not familiar with mining will have technical difficulties when trying to get cryptocurrency.

Indirect investment

If an investor does not want to contact crypto exchanges and take responsibility for storing cryptocurrency in cold wallets, then he has the opportunity to invest in digital coin-related instruments. The advantages of this method include less risk of asset depreciation and lower volatility, but it also reduces potential income.


It takes time to learn how to invest or trade cryptocurrencies. Improving your knowledge is a good way to reduce your overall investment risk, which in turn will lead to more informed decisions. It’s easy to panic-sell an asset on emotion, but you’re much less likely to do so if you learn about investing and trading.

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