When it comes to Bitcoin, there are two ways to invest; buying the cryptocurrency itself or investing in companies that work with Bitcoin. For the latter, this typically means investing in blockchain technology.
Blockchain is the digital, distributed ledger that underlies Bitcoin and other cryptocurrencies. By investing in companies that are developing blockchain technology, you’re betting on the future of Bitcoin.
The most common way to invest in Bitcoin is to buy the currency itself. There are a few ways to do this, but the most common is to use an exchange like Coinbase.
Once you have set up an account with Coinbase, you can link your bank account and begin buying Bitcoin. You can also use Coinbase to buy other cryptocurrencies like Ethereum and Litecoin.
If you’re looking for more traditional investments, there are a few listed companies that work with Bitcoin. For example, Square Inc. (SQ) offers a service called Cash App that allows users to buy and sell Bitcoin. Overstock.
com (OSTK) accepts Bitcoin as payment for purchases on its website. And Microsoft Corporation (MSFT) allows users to add money to their Microsoft accounts using Bitcoin.
Before investing any money in Bitcoin, it’s important to understand the risks. The value of Bitcoin can be volatile, and investments in the currency can carry a high degree of risk.
In addition, scams involving Bitcoin are common, so it’s important to be aware of these before you invest anything.
Now that you know how to invest in Bitcoin, you can decide if this cryptocurrency is right for you. As with any investment, it’s important to do your research and understand the risks before you invest any money.