An investment opportunity that is garnering traction among average individuals that are not necessarily in the financial sector is cryptocurrency. In simple terms, cryptocurrency is a digital currency that is utilized for transacting online but you would need to acquire it with real cash. While there are different types of crypto available, the most popular digital asset available is bitcoin.
Nonetheless, despite being around for several years now, not many people understand bitcoin and how to go about investing in it. And this unsurprising considering that it is still considered by many as a trial and error venture but this does not have to be the case if you know how best to go about it. If you are deliberating on buying bitcoin for your investment portfolio, check out the following guide on how to go about this process.
Step 1: Determine the best platform to source your bitcoin
The first thing you should know when looking to buy BTC cryptocurrency is that it is traded via different online platforms. The key is discerning which platform will offer you the best price for your investment. Some platforms, for example, will not only specialize in bitcoin but will offer other types of cryptocurrencies so you have the opportunity to invest in varying digital assets and this will help you discern what will be most profitable for your portfolio in the long term.
Alternatively, other platforms will allow you to link your bitcoin account to your regular bank account, which makes it is easy for you to utilize the crypto whenever you need to. Whatever the case, it is vital that you have the expertise of a financial advisor on your side, as they can enlighten you on which platforms will be best suited to your short and long-term investment goals.
Step 2: Determine the best way to stockpile your bitcoin
Once you have determined which platform will work best for you to source your cryptocurrency from, you need to establish how best to store your shares. Regardless of whether you want to invest in bitcoin for the short or long term, the crypto needs to be stored securely when it is not in use and this is in wallets. A cryptocurrency wallet is comparable to your day-to-day wallet since it has the function of keeping the data associated with your bitcoin, for example, private keys that are fundamental for transacting your cryptocurrency.
However, there are two main types of wallets to choose from. The first is hot wallets, which are online-based. Although they are ideal for investors that will trade their cryptocurrency regularly, you should know they are vulnerable to data breaches. The second option is cold wallets, which are offline-based. This solution is suited to investors who are stockpiling their bitcoin for the long haul and it offers the benefit of enhanced encryption, decreasing its vulnerability to data theft.
For more information on how to buy bitcoin, contact a firm in Canada.