When it comes to currency investment, there’s no asset quite as mysterious and alluring as Bitcoin. The cryptocurrency, which exists in its own, never-before-seen form, has attracted millions of investors worldwide and has shown faster gains than any other asset in history. In its first 4 years of existence, it went from being worth less than $0.01 to a whopping $20,000. As of today, it is hovering around $13,000-$20,000 and is one of the most volatile and unpredictable assets in the market. If you want to get in on the Bitcoin craze, here are a few things you need to know first:
From Zero to Hero
Firstly, it is important to know the principles on which the Bitcoin system was founded. Bitcoin is decentralized, meaning there’s no central bank or government regulating it. It has no physical form and exists solely as encrypted digital code. Bitcoin is regulated by its creators, who are steadily adding more of the currency to the market at a decreasing rate. Their plan is to have 21 million Bitcoin in the world by 2109. Currently, there are about 15.5 million bitcoin.
Investing in Bitcoin
So, what should you do if you want to invest in Bitcoin? Firstly, while a single Bitcoin is pricey, currently valued at around $15,000, it is possible to use online trading platforms, such as eToro, to engage in a fractional transaction, investing less than the price of a single coin using a contract for difference (CFD). Secondly, it is important to choose a strategy and stick to it. Since Bitcoin is highly volatile, it is wise to study its patterns before deciding how to invest in it. Alternatively, and much easier, you can copy an experienced Bitcoin trader on eToro.
You can use eToro‘s advanced risk management tools to protect your positions and enjoy hassle-free deposits and withdrawals (unlike on the Bitcoin exchanges), instant execution of trades and a free $100,000 demo account to practice your strategy.
Here’s a Step by Step guide on how to open an account with eToro and start trading Bitcoins
1) Get an Account
- Go to eToro. On the right hand side of the page, fill in the fields with your first name, last name, username, email, password and phone number. Tick the ‘Terms & Conditions’ box and click ‘Start Trading’ to create your account.
- You will then be taken to the trading platform. This is where you will be able to buy Bitcoin.
2) Deposit Funds
- Next you must deposit funds into your account. Click the ‘Deposit Funds’ button in the bottom left corner.
- Next you will be asked to enter how much you intend to deposit. Once you have decided, enter your payment method of choice. Your options are; Credit / debit card, Paypal, Wire Transfer, UnionPay, Sofortuberweisung, Skrill, Neteller and many more. If you choose credit card, enter your card number, expiry date and CVV.
- Scroll down the page and enter your billing details, this will include your name, address and phone number. Once complete, click ‘Submit’.
- You now have a funded eToro account. You will receive an email to confirm this and you can tell because your equity will be shown at the bottom. To buy Bitcoin, go to the next section ‘Buy Bitcoin’.
- If you want to deposit over €2000, for security reasons you must verify your identity. This is done by clicking the ‘Complete Profile’ and following the steps required. You will be asked to verify your identity using a passport or other accepted ID and also to verify your address, this can be done by sending in a copy of a utility bill or bank statement. Once verified, you can deposit over €2000.
3) Buy Bitcoin
- Click ‘Trade Markets’ on the side bar. Then at the top you will find the different markets you can buy. Click the ‘Crypto’ section.
- You will then see all the cryptocurrencies you can buy. Choose Bitcoin and click the price with a ‘B’ next to it.
- Next you can decide how much you want to buy. Click ‘Open Trade’ and congratulations, you have just bought Bitcoin!
The next option is to directly buy and own Bitcoin. To do this you must own a wallet. eToro will soon be offering you the opportunity to open a wallet with them but until that happens you can sign up and start trading any amount with ease with eToro using your credit card.