I get emails and calls daily from individuals that would like to invest in bitcoin. Conversation or correspondence usually starts with I heard that people have made millions out of $100 invested. How can I be part of it?
The reality is that bitcoin has become an asset class together with other cryptocurrencies. And most of the players in the financial industry are starting to acknowledge it as something that is here to stay.
So the most important questions for retail investors are where to get info and how to start investing in bitcoin.
Where to get info?
In the overflow of all advertisements and PR articles identifying genuine content is challenging. However, Wikipedia and Investopedia seems to be good and enough credible source to begin with especially when you would like to know the technical part of a blockchain, cryptocurrencies and bitcoin
How to jump in?
There are numerous ways to get into bitcoin — I will present the 3 most simple and straightforward ways for beginners.
- Download bitcoin wallet — purchase BTC with credit card
2. Open an account on an exchange and purchase BTC
3. If you already work with a broker for stocks and bonds purchase BTC ETF with your existing broker or on your platform.
Cost average as a recommendation
Most retail investors do not get to invest one lump sum. So monthly purchase seems like the best way to get into bitcoin slowly.
Even if the price of Bitcoins fluctuates considerably. Judging on the past 12 years — long term your cost should be significantly lower than the market value of your Bitcoins.
Utilizing cost average strategy should improve your performance even more.
This article only covers investors that do not use drugs and are not looking at bitcoin as a substitute for gambling.
Keep all records of each and every purchase for tax purposes.
Wallet — keep your codes handy — don’t lose your codes
If you are not skilled in hardware and at keeping passwords and other records long-term avoid offline storage and opt for exchange with insured accounts and password recovery procedures in place.
Start small when you master the technology and logic behind bitcoin slowly increase your portfolio.