Bitcoin is a distributed, peer-to-peer digital currency system designed to provide online users with the ability to conduct transactions using a digital units of exchange referred to as Bitcoins. Also, it is a digital currency.
Bitcoin is a system of digital currency that was Bitcoin system was developed in 2009 by an unknown programmer(s). Since the time, Bitcoin has garnered huge interest and controversy as a possible alternative to US dollar, Euros , and commodity currencies like silver and gold.
Rise to Popularity
Bitcoin was not receiving significant attention in the world of finance and business prior to 2009, when it was first introduced to the world of finance and business. It was a major topic in the period between 2011 and 2012 when it increased by over 300 percent. Bitcoin has experienced an increase of 400% in value since August of this year. This is why venture capitalists as well as investors all over the globe continue to give attention to cryptocurrency. Get more info about bitcoin Futures Trading.
In the first quarter of 2014, venture capitalists have invested $57 million in Bitcoin during the first quarter. This was then another 73% in the 2nd quarter, bringing it to $130 million. This is 50% more than last year’s $88 million. This is in stark contrast to 2012 when Bitcoin companies racked up a tiny sum that was $2.2 million.
These numbers prove without doubt it is true that Bitcoin is worth the investment and raises the issue which Bitcoin can you purchase or invest in Bitcoin?
A simple guideline for investors who are new in Bitcoin
The simplest and least complex method of investing in Bitcoin is to purchase bitcoins. There are many established companies, mostly in the US and also abroad which are involved within the field of purchasing and selling bitcoins. Bitcoin is abbreviated as BTC.
Coinbase
If you’re within the U.S. then Coinbase is the perfect place to look. Coinbase offers its customers BTC with an estimated mark that is 1% higher than the market rate. The residents of America United States have the option to connect their Coinbase wallets to banks accounts. This means that the future transfer of funds is effortless. Coinbase also offers the option of automated bitcoin buying from time intervals. For example, if you’re looking to buy $50 worth of bitcoins at the start of every month Coinbase permits you to create an auto purchase for that amount.
Be aware about the conditions and terms prior to you sign up for this service. If you’ve subscribed for an automated bit coin program then you won’t be able to regulate the amount at which BTC is purchased every month. It is important to note that Coinbase isn’t functioning as an actual Bitcoin exchange i.e. you buy and sell coins directly through the company. Because the company has to procure the coins from different buyers, you might experience delays or problems when placing orders during market fluctuations that are swift.
BitStamp
BitStamp meets the requirements of traditional bitcoin exchange. Bitcoin serves as an intermediary, allowing users to trade with other users, not with just the business itself. The liquidity here is greater and there is the chance of finding an individual who will exchange with you. There is a minimum fee of 0.5 percent that can be reduced to 0.2 percent if you make a trade of $150,000 over 30 days.
Alternative methods to buy Bitcoins
Local Bitcoins
It’s not the only means to invest in bitcoins. Local Bitcoins are frequently utilized to purchase BTC offline. The site is designed to connect customers and buyers. Bitcoins are kept by the seller’s account in an Escrow account and only given to buyers. More info: www.btcc.com
The process of buying bitcoins on the internet isn’t always safe or reliable. Therefore, it’s best to talk with sellers in the morning and have a companion accompany you in case anything goes wrong.
Bitcoin isn’t only a trend in the modern age. Venture capital firms see Bitcoin as a viable alternative to traditional currency in the long term. There are many ways to enter the world of bitcoin investment. Like we said, Coinbase, BitStamp and Local Bitcoins are the most frequent channels for investing into bitcoin across the United States. Make sure you do your research and figure the best option that will meet your requirements.