Bitcoin is one of the most popular cryptocurrencies that are also referred to as digital or virtual currencies. Unlike traditional currencies, these aren’t managed or governed by central authorities and work differently. Bitcoin is a digital currency that works in a decentralized way by not allowing any individual or authority to control or handle it. It is designed as a medium of exchange to allow people to transfer funds electronically following a peer-to-peer network without involving any third party. Bitcoin was designed and developed with the motive to become an international currency that is disconnected from banks, organizations, or government.
Its price started from $0 in 2009, and it reached $20,000 in 2017, which was a complete turning year for the growth of Bitcoin. Later the following year, it suffered a drop, and its value declined a lot. After 2017, 2020 was the year of Bitcoin, along with a great lockdown. In starting of 2020, bitcoin’s value was nearly $10,000, which reached $36,000 at the end of 2020, continuing the success in 2021 as well. Investors and crypto analysts were shocked to see the price movement of bitcoin, but everyone was impressed with bitcoin and wants to invest in bitcoin in today’s time. Also, people are encouraged to trade in bitcoin by following tips to protect your bitcoin.
Requirements or things to know when investing in Bitcoin
Unlike other currencies, stocks, or bonds, bitcoin investment cannot be made through banks or investment brokers. There are particular services that offer crypto trading that include investment applications and crypto exchanges. Investors need first to choose a reputable crypto exchange or specific investment application from where you can buy bitcoin to invest in Bitcoin.
Buying bitcoin is not enough as you need a wallet to store your crypto coins. Decide on a bitcoin wallet where you want to keep bitcoin and buy bitcoins through exchanges by giving your bank account details to start bitcoin trading. Every investor must be aware of the fact that you have to follow all the tax implications that the government sets.
Top-notch brokers list to buy bitcoin.
Some users choose to buy bitcoins from exchanges, while some choose to buy from investment brokers. There is a list of top-notch brokers from where investors can buy bitcoin that include:
It is one of the best and most advanced platforms to make investments in cryptocurrencies. This platform operates across the globe and offers to invest in stocks, funds, and cryptocurrencies. The only restriction that eToro has that it provides crypto trading only in America. It provides some amazing cryptocurrency investment options, and by using top-notch investment strategies, investors can make some good money and become successful cryptocurrency traders.
Robinhood is a great crypto investment platform, and currently, it is the only platform or broker that allows all cryptocurrencies trading along with ETFs, stocks, and many others. This platform allows trading and investing in Litecoin, Bitcoin, Dogecoin, Bitcoin Cash, and Ethereum. Investors can hold multiple investments in Robinhood, and the best thing about trading bitcoin on Robinhood is that it allows trade commission-free. No charges or extra fees are involved in trading bitcoin; however, trading is allowed 24/7 basis.
Webull is also a trading and investing app that allows investors to trade cryptocurrencies commission-free. The working of Webull is somewhat similar to Robinhood, and it allows investing in ETFs, stocks, and other investments. The main merit of Webull is that it offers both Roth IRA as well as traditional accounts. In contrast, other apps or platforms are only limited to investment accounts that are taxable.
What is a Bitcoin wallet?
Once you buy bitcoins from any investment platform, you need to store them in bitcoin wallets. Bitcoin wallets are the digital wallets that store, send and receive bitcoins easily. You can choose to store your crypto coins in any wallet that is available on the internet. There are mainly two types of wallets that are software and hardware wallets. These wallets are also known as cold and hot wallets. Cold wallets allow crypto holders to store cryptocurrencies offline in a portable hardware device. Hot wallets allow crypto holders to store different cryptocurrencies online.