At present, investment in Bitcoin can result in a huge payoff. Every smart citizen, or netizen, is investing in this blockchain technology and making the path in this hyper-growth investment.
Bitcoin is a peer-to-peer payment network in which two users can do the transactions securely.
Bitcoin is digital money, and the only difference is that it is decentralized, no central authority is involved in this payment method, and users can manage their transactions themselves.
Guide to Buy, Invest & Store Bitcoin
In addition, you can also invest in Bitcoin exchange or take benefit from IRAs and 401 (k)s tax-advantaged accounts.
So, to make you informed about how to buy, invest, and store Bitcoin, here is a brief guide. Read on!
Opt for User-Controlled Wallet
Created by a pseudonym Satoshi Nakamoto in 2008, Bitcoin is a cryptocurrency that frees up the users to transact without any involvement of the third party, be it the bank, government, or any other central authority.
Who launched the core of Bitcoin in 2009. Each owner or miner was given a ‘private key’ address that enables the bitcoins sending.
So, the software or user-controlled wallets permitted users to manage their private keys. So if you are tech-savvy, then using a user-controlled wallet is an ideal option.
The wallet is similar to digital money and does not need the permission of any third party.
However, with that being said, there are also certain disadvantages as no central authority is involved in this network. Your PC or computer might get hacked, or you can lose private keys provided to you.
The user-controlled wallets are desktop or web-friendly. Categorized as Simplified Payment Verification (SPV) and full node, the wallets of Bitcoin load the complete blockchain.
Each transaction that is ever made on the Bitcoin network is secured in the computer. Generally, the file takes around a couple of days to download. But if you use hardware for a full node, then it will take less time.
Users can also opt for a phone wallet. It is good and much easier to use. Miners or users can use Bitcoin to make payments for items. You can choose from various Android user-controlled mobile wallets as per your choice.
Therefore, it is better to make a backup of your wallet and secure it in case you lose your phone to make that wallet on the new device.
Go for a Hosted Wallet
A third party manages these wallets. They take care of private keys and provides the user with a great experience via mobile app and the web.
It is somewhat similar to online banking. All you need to choose is the reliable Bitcoin wallet that securely handles your funds and prevents them from getting hacked.
When you choose a trustworthy mining wallet, you can send a particular amount of money to another wallet, and your identity remains anonymous.
For the security of your wallet, you can select two-factor authentication from Google. For instance, Yubikey (Do not use the phone number as there are chances of account hacking).
Apart from wallets, there are services like cold storage or vaults. In these Bitcoin, keys are secured in the computer even without an internet connection.
Choose Hardware or Vault Wallet
If security is your main concern, then you can opt for a vault or hardware wallet. If you do not rely on third-party mining providers, you can trust yourself and go with this wallet.
There is no need to hold the keys on your own in this wallet, and even you cannot completely rely on the company.
It works both ways. In place of one key, several keys are associated with the Bitcoin address.
Suppose two, three or five that must be signed. The process is similar to company checks in which to pass a certain amount, multiple executives’ signatures are required.
Using a vault wallet is highly secure, and there is no need for the involvement of a third party. However, in this wallet, you cannot access the funds immediately.
If you are much concerned with security and fear of malware hacking, you can select a hardware wallet. It is a very small device that holds the private and public keys of Bitcoin.
Generally, the USB size is smaller, and they cannot be connected to the Internet. However, they secure private keys and prevent malware hacking.
How to Get Bitcoin?
If you use a user-controlled wallet, you can easily buy Bitcoin from various Bitcoin exchanges, namely Coinbase, Gemini, and more.
Secondly, you can go to Bitcoin ATM or some local exchange and change the fiat currency like Dollar, Euro, Rupees, Yen to Bitcoin.
In addition, hosted wallets make Bitcoin mining easy by connecting us to the banking system, and you can purchase Bitcoin from ACH or wire transfer.
Choose Bitcoin Investment Trust (GBTC)
If you are the one who does not want to spend the actual bitcoins and process them in an investment vehicle, then opt for Bitcoin Investment Trust.
It is a tax-advantaged account with beneficiaries. GBTC is a trust that provides Bitcoin securely. GBTC is a publicly traded security that represents 1/10th of Bitcoin.
It comes under IRA, 401(k), and other accounts. Investors can purchase GBTC shares from the issuer and trade them freely on OTCQX by brokerage/ investment accounts and IRA.
The above-listed are some of the methods to invest, get and buy Bitcoins. Bitcoin price is getting higher day by day, and every smart city is investing in this blockchain technology.
So, you should also invest in Bitcoin mining and be a part of the growing Bitcoin community.
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