The Best Ways to Buy Cryptocurrency

In recent years, cryptocurrency has become a more popular investment. More and more companies are accepting crypto for purchases. Recently Dogecoin was cited by Elon Musk as an accepted form of payment. However, usually, when firms cite they are accepting crypto, it’s Bitcoin that they refer to.

Given the interest in cryptocurrency in general and Bitcoin in particular, does it make sense for you to invest in Bitcoin? And if you decide to buy, how would you go about doing it?

Should you invest in Bitcoin?

While Bitcoin is less risky than alt-coins, it is still very volatile. While those who invested in Bitcoin over a decade ago have made huge profits, anyone who follows the digital currency can tell you that 85% drops in price have happened. Investing in Bitcoin is very much a long-term strategy. If you can’t afford to hold on when it dips, then it’s not a good investment for you.

One important factor to consider before you buy Bitcoin – what is your overall investment strategy? Can you put a percentage of your money into a high-risk but potentially high-reward asset?

Also, if you decide to invest in cryptocurrency, think carefully if you’d rather invest solely in Bitcoin or a more diverse group of cryptocurrencies. While alt-coins may be more volatile, they may better optimize your rate of return.

How to buy cryptocurrency

One question some potential new customers of crypto may ask – can you buy crypto with a credit card.

According to SoFi, “It is possible to buy bitcoin and other cryptocurrencies with a credit card. Depending on the exchange used and the rules upheld by your credit card issuer, several factors can come into play. One key distinction investors should know when buying crypto with a credit card is that most financial institutions treat these transactions as cash advances rather than regular credit purchases.”

If you’ve decided that it makes sense for you to have part of your portfolio in Bitcoin or other cryptocurrencies, you may be wondering how to make this happen. You have several options.

• Traditional investment options: Almost every investor is familiar with companies that allow clients to buy and sell stocks, bonds, and other traditional investments. Some of these are now allowing people also to buy and sell Bitcoin. There are also companies that, while not allowing direct exposure, will allow clients to purchase ETFs and other vehicles that give indirect access to cryptocurrency.
• Cryptocurrency exchanges: There are online exchanges that allow you to buy and sell cryptocurrencies. Some of these exchanges allow you to trade up to 100 different cryptocurrencies.
• ATMs: There are ATMs available that allow you to buy and sell Bitcoin. There are over 27,000 of these in the United States alone.
• Direct purchase: Within the crypto community, people sometimes trade directly with each other. While this used to be more common prior to the evolution of exchanges, it is still an option that some people use. If you are involved in direct transactions, it’s a good idea to have a secure hardware wallet.
• Grayscale Investments: This offers two trusts, one for Bitcoin and one for Ethereum, which allows clients to trade these assets for a premium.

News Infowars is a Professional Blog that provides the latest business strategies, modern tech, gaming, reviews, and interesting news.