How to Invest in Bitcoin

Interested in investing in Bitcoin? Read on and find out how.

17:11 10 February 2022

Bitcoin is a digital currency that isn't produced by any government. Bitcoin first emerged in 2009 and it wasn't until 2013 that Bitcoin began to receive mainstream media exposure. Bitcoin has risen astronomically in value since then. Bitcoin's greatest feature, and also its greatest drawback, is the fact that Bitcoin provides anonymity to its users. If you want to get deep information about investing in bitcoin then you really need to visit Bitcoin Revolution, where you will find anything you want regarding bitcoin investment. 

 

Bitcoin's anonymous nature has made Bitcoin popular with people who wish to purchase illegal goods or services anonymously on the internet. Bitcoin has become so popular as an anonymous payment method that every single Bitcoin wallet online will now automatically create charts of how Bitcoin is doing relative to other currencies worldwide.

 

Bitcoin Investment Strategies 

There are several ways you can invest in Bitcoin:

 

You can use an investing calculator to figure out your potential profits from mining Bitcoin. Bitcoin Mining Bitcoin mining is the process by which Bitcoin transactions are verified and added to Bitcoin's public ledger, known as The Bitcoin Blockchain. 

 

Bitcoin mining serves to both add transactions to Bitcoin's public ledger in order to ensure that all Bitcoins are accounted for. Bitcoin miners are paid a small fee with each transaction they process for their work in solving crypto puzzles through the SHA256 algorithm. 

 

You can start your own Bitcoin miner by purchasing some computing power on Amazon or eBay. This will cost you quite a bit of money but if you have free electricity then it will be profitable until the ASIC chips reach their full potential.

 

Bitcoin Investment Trusts 

There are also two publicly traded trusts currently available on Wall Street: GBTC & XBT Provider. Bitcoin Investment Trust is traded OTC (over-the-counter) on the Bitcoin Investment Trusts website. Bitcoin Investment Trust's stock symbol is GBTC. Bitcoin Investment Trust allows people to invest in Bitcoin without dealing with buying, storing, and safekeeping bitcoins. Bitcoin Investment Trust has filed with the SEC for approval of an IPO (initial public offering). GBTC began trading on May 4th, 2015 & opened at $25 per share. On June 19th, 2016, GBTC closed out the trading day at $116 a share. Early investors have been reaping large profits as the price of Bitcoin continues to rise.

 

XBT Provider from CoinShares Holdings offers two Bitcoin Exchange Traded Notes which are denominated in Swedish Krona & Euro respectively: Bitcoin Tracker One Bitcoin Tracker Euro Bitcoin Investment Trust is not available in Canada so Canadian Bitcoin investors can use XBT Provider which is better than having no Bitcoin exposure at all. Bitcoin has become very popular with traders & investors because it provides global exposure to cryptocurrency, unlike commodities that are only traded on national exchanges. 

 

Bitcoin has much more liquidity than any other crypto-currency. Bitcoin's liquidity allows for large daily fluctuations rather than Bitcoin's peer currencies which experience much smaller fluctuations on a daily basis. This makes Bitcoin the ideal candidate for trading since there are rarely large movements of capital required to make substantial gains in Bitcoin investment strategy.

 

Bitcoin Mining Strategy 

Once you have purchased some bitcoin mining hardware, your next step will be to decide where you should mine bitcoin. You can choose to mine Bitcoin on your own or as part of a Bitcoin mining pool. A Bitcoin mining pool is where Bitcoin miners combine their computing power over the internet to help confirm Bitcoin transactions and earn bitcoins. 

 

The advantage of joining a Bitcoin mining pool is that you receive regular payments from the Bitcoin mining group for any Bitcoin mining, even if you don't have enough computing power to supply 100% of the Bitcoin network hashing power yourself. This means you can still make profits when other people are using more powerful hardware than yours because your percentage share in the Bitcoin network will increase. 

 

There are many different pools around today but it's best to select one with low fees & a good reputation for transparency.

 

Bitcoin Arbitrage Strategy You can also invest in Bitcoin arbitrage, Bitcoin trading strategies. Bitcoin arbitrage is buying Bitcoin on an exchange where the price is relatively low & simultaneously selling Bitcoin at an exchange where the price is relatively high. 

 

Bitcoin arbitrage traders can make money even if Bitcoin's price does not change much over time, as long as Bitcoin continues to exist! It sounds easy but there are risks involved with Bitcoin arbitrage so be sure you understand them before you start. Some of these risks include:

 

• Operational Risk (currency exchanges getting hacked, shutting down)
• Political Risk (countries banning certain types of investments like cryptocurrencies)
• Payment Risk (will you get paid?)