- From financial apps to publicly traded funds to crypto-exchanges, there are now a multitude of options for investing in bitcoin.
- Bitcoin remains risky and volatile, so individuals should invest small amounts, keep their accounts secure, and think long term.
- Bitcoin’s dramatic price rise since its 2009 debut is attracting both institutional and individual investors.
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Bitcoin is possibly the most fashionable investment of the past decade. It has appreciated in value by anything from 717,900% to just shy of one billion percent (depending on your starting figure) over the last 10 years or so. Either way, it’s one of the best-performing financial assets in recent history.
But while bitcoin is certainly the talk of the town, much of it remains shrouded in mystery. It’s not clear to newcomers how best to invest in the cryptocurrency, with banks and most mainstream brokerage platforms refusing to handle it. Plus, its price swings can be frighteningly volatile by the standards of traditional stock and bond markets.
Let’s demystify how to invest in bitcoin: the various places to buy it, the risks and rewards, and strategies for safely ensuring a higher return.
Why invest in bitcoin?
Bitcoin is a cryptocurrency, a form of private, electronic money whose transactions are validated using cryptography, the science of encrypting and decrypting information. Since its launch in January 2009, it has come to be traded amid Source…