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Invest in Bitcoin

In this guide, you will learn everything about how to invest in Bitcoin. We will start by telling you where to buy Bitcoin. And reasons to consider buying the most valuable digital asset.

The guide will address how much to invest in the pioneer crypto asset. We will also introduce you to practical Bitcoin investing strategies. You will also find a step-by-step tutorial for buying Bitcoin on the best Bitcoin exchange.

How to Invest in Bitcoin (BTC) in 4 Quick Steps

This guide will show you how to invest in Bitcoin in the US right now. It summarizes the crypto buying process on eToro. eToro is an SEC-regulated brokerage. It lets you buy BTC in less than 10 minutes with as little as $10.

  • Step 1: Register a crypto account: Start by opening a free crypto trader account on eToro.com. The process is straightforward and brokerage will only ask for basic personal information.
  • Step 2: Deposit funds: Fund this account fee-free with at least $10. Some of the supported deposit options include credit cards, debit cards, and eWallets. Their deposits are processed instantly.
  • Step 3: Search for Bitcoin: In the search box, enter ‘Bitcoin.’ Click on “Trade” button to start the Bitcoin buying process.
  • Step 4: Invest in Bitcoin: Customize investment by indicating how much you intend to invest in BTC. Then, hit “Open Trade” to confirm the buy order. eToro will deposit the just purchased crypto in your portfolio.

Crypto asset investments are highly volatile and speculative

You will find a detailed tutorial on how to invest in cryptos later in this guide. For now, we look at the best places to buy and invest in Bitcoin. Later, we discuss everything else you need to know about Bitcoin investing.

Where to Invest in Bitcoin (BTC)

CoinMarketCap indicates there are more than 600 crypto trading platforms today. Most of these support Bitcoin investing. Our analysts have vetted lots of popular platforms. They settled on the following as best places to invest in Bitcoin today.

Here is an overview of these top Bitcoin exchanges:

1. eToro – Overall Best Place to Invest in Bitcoin

eToro stands out among the best crypto exchanges to buy and invest in Bitcoin. Why? Because of user-friendliness and copy trading. It maintains a straightforward account opening process and has a user-friendly trading interface.

buy Bitcoin

The eToro exchange is particularly popular for copy trading. This enables users to make money without spending time on analyzing markets. They only have to automate the copy trade feature.

This mirrors the trade settings of highly successful traders onto their accounts. You can even copy smart portfolios for a more diversified investment. You need $200 to start copy trading.

In addition to Bitcoin, you can buy 70+ top trending cryptocurrencies on eToro. Remember, you only need $10 to start investing in these digital assets. The deposit can be made via several popular deposit methods. These include ACH transfers, debit cards, credit cards, bank transfers, and e-wallets like PayPal etc.

eToro CopyTrader

The broker doesn’t charge a deposit-processing fee. For US residents, it does not charge a withdrawal fee either. The crypto trading platform also maintains highly competitive fees when you buy bitcoin. Today, you will only pay a spread of 0.75% of the trade amount.

Several other factors help eToro rank this high among the best Bitcoin exchanges. First is integration of a demo trader. It also has an educational section that appeals to beginner investors.

In addition to this, eToro integrates a range of advanced trading tools. One of these is the customizable chart, which appeals to pro investors.

Crypto asset investments are highly volatile and speculative

2. Coinbase – Best Place to Invest in Bitcoin for Beginner Friendliness

Coinbase is the most successful crypto exchanges in the world. It is also one of the oldest. Established in 2012, Coinbase is one of the most popular, reputable, and deeply liquid exchanges.

It is worth noting that Coinbase has some of the deepest Bitcoin reserves. Coinbase is also highly regulated. Plus, it was the first and only publicly traded crypto exchange in the world.

Invest in Bitcoin Via Coinbase

Coinbase is on the list of best places to buy Bitcoin because its user-friendly. The intuitive interface makes onboarding smooth and simple. Minimum trade limit is just $2.0. Crypto education resources make it even more attractive.

Also, the exchange rewards users with free coins when they learn about different cryptos.

You can buy and invest in Bitcoin with credit/debit cards, PayPal, and bank deposits on Coinbase. You may also buy 200+ best future cryptos and trade 500+ pairs. The trading fees incurred depends on payment method and volume.

Crypto trades below $200 are charged between $0.99 and $1.99. Trades above $200 are charged a fixed fee of 1.49% of the trade volume. If you are buying Bitcoin instantly with cards, you will be charged 3.99%.

The multi-platform crypto exchange also makes it to this list because it is secure. It provides all users with a free crypto wallet that holds 98% of their digital assets offline. Client deposits are also insured with the FDIC (up to $250,000).

You also get a free non-custodial mobile wallet app for iOS and Android. The Coinbase wallet is secured with a strong password and protected with additional security measures.  These range from white-listed crypto addresses to 48-hour lock on withdrawals.

3. Webull – Invest in Bitcoin with $1

Webull is not your typical crypto exchange. Rather, it is a multi-asset trading platform. Here, you can invest in cryptocurrencies as well as stocks, ETFs, and options.

This makes it ideal for individuals looking for a diversified investment portfolio. Note that Webull is a commission-free brokerage. So, when buying Bitcoin, you only have to pay network fees.

Buy Bitcoin on Webull platform

Webull also ranks high among the most beginner-friendly crypto exchanges. That’s because it has no minimum deposit balance. Plus, you can buy Bitcoin with as little as $1. You can also get exposure to 20+ most beginner-friendly cryptocurrencies.

Webull offers intuitive trading platforms for the web and mobile. They feature highly advanced trading and risk management tools.

Several other factors help Webull stand out among the best Bitcoin exchanges. For example, it is regulated by SEC and FINRA. The exchange insures client deposits of up to $500,000 ($250,000 limit on cash) with the SIPC.

Webull has an accessible and responsive customer support teams. These are available online and on the phone 24/7. Webull also exposes you to different types of investment accounts. These include three tax-advantaged retirement accounts as well.

You can open the Traditional IRA, Roll-over IRA, and Roth IRA accounts on Webull.

4. Binance – Best Bitcoin Exchange for Zero Fees

Binance is the most popular exchange in the world. It has more than 150 million registered users across 200+ countries. It is by far the most liquid crypto exchange in the world.

In 2022, Binance processed spot crypto trades worth $5.29 Trillion. That exceeded volume of spot crypto trades on all other centralised exchanges combined. It is also among the crypto exchanges with the deepest Bitcoin reserves.

Binance Best Place to Buy Bitcoin

One of Binance’s most attractive features is its low transaction fees. At writing, you pay zero fees when buying BTC with TUSD. All other crypto trades attract a competitive and volume-based maker/taker fee of between 0.1% and 0.012%. You also qualify for a 25% discount if you settle the fee with the Binance coin (BNB).

Investor can trade 350+ best cryptos to buy on Binance. You can buy these cryptos instantly with credit or debit cards. You may also open a limit order on the 500+ supported crypto pairs. Alternatively, buy crypto on the Binance peer-to-peer trading platform.

For starters, note that buying cryptos in Binance P2P is free. The platform supports 700+ payment methods, including PayPal, Google Pay, Apple Pay, Skrill, and Neteller. You can even buy crypto with gift vouchers on the P2P platform.

Binance is on this list also for convenience and security it promises its users. On top of web trader, it also operates one of the best crypto trading apps. The exchange then presents its users with a free and ultra-secure wallet. The digital wallet holds more than 90% of client assets offline.

The rest is insured by an in-house insurance scheme. Binance calls it SAFU whose value recently surpassed $1.0 billion.

5. KuCoin – Best Place to Invest in Bitcoin for Dep Liquidity

KuCoin is another one of the most popular crypto exchanges in the world. It was established in 2017. The exchange has onboarded 29+ million crypto investors from 200+ countries. It has also consistently featured among the 10 most liquid crypto exchanges.

Its daily spot crypto trade volume averages at more than $1.0 Billion. KuCoin is known for its deep Bitcoin reserves. That’s why it features on the list of best Bitcoin exchanges.

Invest in Bitcoin Via Kucoin

KuCoin is also home to one of the largest selections of crypto assets. At writing, you can buy 700+ cryptos on the platform. These include the best altcoins and some of the most popular DeFi coins.

It also presents you with multiple options to buy. You can buy cryptos instantly with credit/debit cards, or fiat balances by leveraging its Fast-Trade feature. You can also buy crypto on KuCoin through third-party fiat-to-crypto on-ramps like Banxa and Simplex.

These let you pay with a more diversified range of payment options, including eWallets like Skrill. You may also buy Bitcoin with PayPal and 20+ other payment options via the KuCoin Peer-to-Peer trading platform.

We like KuCoin also because it offers multiple passive income-generating opportunities. These include crypto staking, savings, dual investing, shark fin yields, protective earn, crypto lending, and KCS bonuses.

You may also leverage the smart trading bots integrated into the platform. You stand to 100X your money if you invest in new crypto from KuCoin incubation labs that eventually explodes.

KuCoin is highly secure. It provides users with a custodial exchange-based wallet as well as a free mobile wallet app. The exchange-based wallet holds most of the client assets offline. Commonly known as the Halo Wallet, the mobile app is secured with a strong password and multi-factor authentication.

Should I Invest in Bitcoin (BTC)?

Yes. There are two primary reasons to consider investing in Bitcoin. One, it has been the best-performing financial instrument of the last decade. Therefore, it is expected to sustain this lead in the foreseeable future.

Two, Bitcoin keeps your investments safe. For starters, its decentralized nature makes your investment immune to censorship by authorities. And the overall uptrend in terms of price keeps your money safe from inflation.

This is why many finance experts recommend having cryptos like Bitcoin in the portfolio. Experts like Layah Heilpern and Anthony Pompliano have said everyone should have some exposure to cryptos.

Here are five more reasons why you, too, should consider investing in Bitcoin today:

Bitcoin will continue outperforming conventional assets

Buy Bitcoin today because it is expected to maintain an uptrend in the foreseeable future. It is expected to continue outperforming conventional assets. For example, Cathie Woods – CEO of Ark Invest – is confident that Bitcoin will continue gaining value. By 2030, she is confident BTC will have rallied by 4000% to break above $1 Million.

You can earn passively from Bitcoin investing

Buy Bitcoin because you can earn regular passive income from this investment. Several crypto platforms now pay higher-than-average interest on their passive investing programs. These include staking, crypto lending, liquidity mining, and savings. For example, Crypto.com pays an interest of up to 1.5% p.a when you stake Bitcoin.

It has growing use cases

You may also consider buying BTC because its use cases are rapidly expanding. Bitcoin can be now used to settle payments with your peers. You may also use it to pay for goods and services online and in physical stores. Understand that paying with Bitcoin is not only easier but also less bureaucratic.

Diversify your portfolio profitably

Consider investing in Bitcoin to diversify your portfolio. You can use Bitcoin to hedge against losses from conventional assets.

It is easy to invest in Bitcoin

The process of buying Bitcoin is easier than most traditional assets. Crypto exchanges have narrowed it to just a few clicks and a few minutes. Also, they embrace fractional investing and let you buy BTC with as little as $1. Remember that Bitcoin is highly liquid and easy to dispose of.

What is the Best Way to Invest in Bitcoin (BTC)

You now know the reasons to buy Bitcoin. Next, we look at the different forms that Bitcoin investing may take. You may choose to invest in the pioneer crypto asset directly or indirectly.

Best Time to Invest in Bitcoin

Here are the four primary ways of investing in BTC:

Buying Bitcoin

Also known as spot crypto investing, it starts with registering a trader account with a crypto exchange. Next, buy BTC and take hold of its underlying private keys. This is the most common form of Bitcoin investing.

Investing in Bitcoin stocks

Investing in Bitcoin stocks is a popular way of investing in the crypto indirectly. It involves buying shares of Bitcoin-related companies. These include Bitcoin mining hardware manufacturers like Bitmain. Great examples of Bitcoin stocks to consider also include Riot Blockchain, Marathon Digital, and Hut 8 Mining Corp.

Investing in Bitcoin ordinals

Blockchain ordinals or Bitcoin NFTs, are also a popular way of investing in Bitcoin indirectly. They became popular in 2023. So, these are relatively new. Their popularity and value are expected to explode during the next bull market.

Trade Bitcoin derivatives

An equally popular way of investing in Bitcoin is trading Bitcoin derivatives. These include futures and options. These refer to contracts/agreements to buy or sell Bitcoin at a predetermined price on a predetermined date. They are offered by virtually all the biggest Bitcoin exchanges.

Crypto asset investments are highly volatile and speculative

Investing in Bitcoin (BTC) vs. Trading Bitcoin (BTC)

The terms Bitcoin investing and Bitcoin trading are often used interchangeably. Note, however, that the two are fundamentally different. They refer to two totally different approaches to getting involved in Bitcoin.

Investing in Bitcoin is the more beginner-friendly approach. It involves buying BTC and HODLing. This means holding on to them for an extended period of time. This often means for years while watching their value grow.

Bitcoin trading involves buying BTC and holding it for a short period of time only. There are two types of BTC trading. You can either long it or short it. Long means you buy BTC when its price is low and sell it as soon as its price peaks. Short means you borrow BTC at a high price and return it when its price crashes.

Note that crypto trading, especially shorting digital assets, is riskier than investing. It is, therefore, only recommended to highly experienced and risk-tolerant traders.

How Much to Invest in Bitcoin (BTC)?

The answer to the how much to invest in Bitcoin question is rather subjective. There is no standard on how much one should invest in Bitcoin or any other cryptocurrency. In most cases, minimum investment will be determined by your preferred crypto trading platform. On eToro, for example, the minimum Bitcoin trading amount is $10.

how Much to Invest in Bitcoin

You get to decide the maximum you can invest in Bitcoin. Finance experts encourage you to consider a number of factors when deciding how much to invest in cryptocurrencies. These include your disposable income and investing strategy. These then extend to investing goals, crypto trading experience, understanding of the crypto markets, and timing.

What is the Best Bitcoin (BTC) Wallet?

The crypto verse is rife with highly secure crypto wallets – free and premium. These can, nevertheless, be grouped into three categories – custodial wallets, non-custodial hot wallets, and non-custodial cold wallets.

Custodial wallets

These refer to the digital storage services offered by most crypto exchanges and brokerages. Virtually all the best crypto exchanges will provide you with a free custodial wallet. This claims to hold 90%+ of your keys offline. Some – like Coinbase – even claim to store as much as 98% of your assets offline.

Non-custodial hot wallets

These refer to self-custody wallets that store your assets on internet-enabled devices. Examples of these are the free crypto wallet apps for iOS and Android provided by crypto exchanges. eToro, for instance, has the eToro’s Money Wallet while KuCoin operates the Halo wallet. These encrypt the private keys for your Bitcoin and store them in the root storage of your phone.

Non-custodial cold wallets

These are the best crypto wallets because they give you absolute control of your assets. More importantly, they hold your keys offline. By holding your assets in an offline environment, it keeps them safe from hackers and malware. Note, however, that the most reliable hardware wallets like Ledger and Trezor aren’t free.

Popular Bitcoin (BTC) Investing Strategies

You now understand that Bitcoin are worth investing in and how much to invest in the crypto. This section introduces you to the best Bitcoin investing strategy.

A pre-defined Bitcoin investing strategy comes in handy in helping you make informed investment decisions. It also helps you stay on track to achieving your goals.

Here are two of the practical Bitcoin investing goals worth embracing:

Buying the dip

Buying the dip is an age-old investing strategy practiced by both crypto and traditional financial instrument investors. It involves waiting for the price of Bitcoin to crash before buying the crypto at a discounted price. You will then need to hold until its price peaks to sell these assets at a profit. Then wait for the next dip and repeat the process.

Though one of the most lucrative crypto investing strategies, buying the dip isn’t the most effective strategy. This is evidenced by the fact that it takes months or years in between market dips. Further, discerning when Bitcoin has bottomed or peaked also requires a deep understanding of the crypto markets.

Dollar Cost Averaging (DCA)

Dollar-cost averaging involves buying a specific amount of crypto at predetermined intervals, regardless of the prevailing crypto price. It is a long-term risk mitigation investing strategy. Over time, it has the overall impact of lowering the average cost of the Bitcoin purchased.

How to Make Money Investing in Bitcoin (BTC) – Examples

In this section, we study how different individuals made money investing in Bitcoin using the two common investing strategies.

1. Long Term Buy Strategy (HODLing)

Here, we look at what you may have earned if you purchased Bitcoin before the last market dip. We will also discuss the question of whether Bitcoin can make you a millionaire. For this illustration, we base its future price on the predictions of expert analysts.

Example 1: How much would you have earned in the last bull market if you had purchased two years earlier (2019):

In November 2019, BTC was trading at around $8000

At its peak in November 2021, BTC was trading at $68900

This represents an 860% value gain.

This implies that if you had bought BTC worth $1000 in 2019, your assets would have been worth $8600 i24 months later.

Example 2: Will I make a million investing in Bitcoin before 2030?

To answer this, we will assume Cathie Wood is right and that Bitcoin price will reach $1 Million in 2030

Let us also assume that the buying price of BTC is $25,000

This represents a 4000% value gain for the digital asset

To earn a million investing in Bitcoin in 2030, you will need to buy BTC worth $25,000 today.

2. Short Term investing strategy

Now let us look at how different people make money investing in Bitcoin over the short term:

Example: We will look at a hypothetical scenario of a short-term trade that might have taken place in early 2023

Let us assume that one investor bought BTC at the height of the 2022 market dip – in mid-December. At the time, the digital asset it was trading around $16,000

Let’s also assume that they held on to this trade for 12 months – to December 2023. By then, BTC’s price had reached $43,000 – representing a 287% gain.

Assuming they had invested $1000 in BTC, this trade had earned them $870 extra in four months.

How to Invest in Bitcoin – Step-By-Step Beginners Guide

In this section, we will provide you with a detailed tutorial on how to buy Bitcoin on eToro. You will learn how to invest in cryptos on the crypto brokerage in less than 10 minutes. Plus, you only need $10 to start investing.

Step 1: Create a crypto trader account

On your browser, open the official eToro.com website. Alternatively, download the eToro mobile trading app. On either platform, hit the ‘Join Now’ button and complete the user registration form.

Sign up via etoro

It will ask for your information like your name, age, country of residence, and zip code. It will also ask for your phone number, email address, trading experience, and income sources. You will have to come up with a unique username and strong password for this account.

Crypto asset investments are highly volatile and speculative

Step 2: Verify your identity

The registration process is only considered complete after you have verified your identity. Simply submit a photo of your government identification document. These can include your passport or driver’s license. Note that, this document should bear the names used to create the trading account.

Step 3: Deposit funds

Deposit Funds on eToro

After receiving the account approval notification, hit the “Deposit Funds” button. A funding tab indicating all the fiat payment options available to you will pop up. Choose one payment method and follow the prompts to deposit at least $10 into this account.

Step 4: Search for Bitcoin

Search for BTC

Once the payment is reflected in this account, enter the word “Bitcoin” or “BTC” in the search box. Hit the “Trade” button appears to initiate the Bitcoin buying process.

Step 5: Invest in Bitcoin

Click on “BUY” option against Bitcoin and a trading tab will appear. Use it to customize this trade by indicating how much (USD) you intend to invest in Bitcoin. Hit the “Open Trade” to execute this investment. eToro will debit your cash account and immediately deposit private keys for BTC in the custodial wallet.

Step 6: Set up a crypto Wallet

Wish to move the just purchased Bitcoin to another crypto wallet or exchange? You will need to first download and set up the eToro mobile money wallet. Simply download the eToro money wallet app from the Play Store or App Store.

Use the credentials created in step 1 above to log in. Link the wallet with the eToro trading account and transfer the crypto. Note that you will be charged a 0.5% crypto transfer fee – capped at $50.

What are the Best Bitcoin Alternatives

We started by saying that Bitcoin is one of the most lucrative cryptocurrencies of the last decade. We have also mentioned that it has one of the most promising future. It is expected to continue outperforming all conventional financial instruments.

But we must add that Bitcoin isn’t the only cryptocurrency with a promising future. Other equally promising altcoins expected to perform great in the near future include:

Bitcoin Cash (BCH)

Bitcoin Cash is the most successful Bitcoin hard fork. It has performed well in the past and its adoption and use cases are in an uptrend. Not forgetting that it has the backing of a highly sustainable blockchain network.

Bitcoin Cash Price prediction is expected to sustain its current uptrending price action. Analysts and investors are confident it will rally to a new all-time high during the next bull market.

Crypto asset investments are highly volatile and speculative

Ethereum (ETH)

Ethereum is the second most valuable and one of the most lucrative digital currencies of all time. It maintains one of the ten most useful blockchain networks and its adoption rate.

Both ETH tokens and the network are on an uptrend and are expected to continue driving up its price. In fact, some analysts are confident that Ethereum will eventually dethrone BTC as the most valuable cryptocurrency.

Crypto asset investments are highly volatile and speculative

Shiba Inu (SHIB)

Shiba Inu started as a meme with a mission of dethroning Dogecoin as most valuable joke currency. Over the past few months, the SHIB ecosystem has been expanding aggressively.

Shiba Inu has onboarded multiple crypto technologies aimed at helping SHIB escape the meme coin tag. It hopes to establish itself as a proper altcoin.

A lot of SHIB tokens have also been burnt. These developments are expected to help catapult SHIB token process to new heights. This makes one of the best altcoins to buy over the short term.

Crypto asset investments are highly volatile and speculative

Conclusion – How to Invest in Bitcoin (BTC) for Beginners

There goes everything you need to know about investing in Bitcoin. You now know where to invest in Bitcoin and are familiar with popular Bitcoin investing strategies. You have learned why Bitcoin is worth buying today and discovered how individuals make money off Bitcoin.

Want to invest in Bitcoin right now? Use the how to buy BTC tutorial that we have discussed above.

Author Checked Reviewed and Fact Checked by Kamal Masri, Crypto Writer and Investment Analyst.

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Cryptoassets are a highly volatile unregulated investment product.

FAQs on How to Invest in Bitcoin (BTC) for Beginners

Is Bitcoin worth buying today?

Yes, Bitcoin is worth buying today because it has performed exceptionally well in the past. It is also expected to continue rallying in the near future. It will likely break into a run and possibly set a record price after the 2024 halving.

The best time to invest in Bitcoin and any other currency is immediately after a price crash. At this point, it is selling at a hugely discounted price. If you missed the dip, consider dollar cost averaging strategy.

No, it is not too late to buy Bitcoin because it is selling at a hugely discounted price. It also isn’t late because its value is expected to continue rallying. Some analysts are even confident it will break above $100,000 during the next bull market. The more optimistic expect it to shoot past $1 Million by 2030.

Start by identifying a reliable crypto trading platform. One such platform is eToro. Create a trader account with them. Then verify your identity, deposit funds to this account, and start buying Bitcoin.

The best place to buy Bitcoin today has to be the eToro crypto brokerage. We like it because of its user-friendliness, low trading minimums, and competitive fees.

Yes, Bitcoin investing is legal in most countries and territories across the world. Most countries don't have express laws authorizing or regulating crypto investing. Only a handful, like China, have actually passed legislation banning crypto.

Yes, Bitcoin is a good investment because it has all the hallmarks of a reliable investment. It has performed well in the past and has a promising future. Importantly, it is backed by a viable technology. It is also liquid and easily accessible.

The two safest crypto exchanges are eToro and Kraken. Even after operating in crypto space for more than a decade, they have never been hacked. The rest have also made significant strides in keeping your digital assets safe. They not only maintain ultra-secure exchange-based wallets but have also insured deposits.