Bitcoin has been around for more than a decade. It is a digital currency that can be used to send payments from one person to another, without the need of an intermediary financial institution.
When it first emerged, Bitcoin was seen as a niche payment method for technology enthusiasts. However, Bitcoin has since become a legitimate alternative to traditional payment methods. Some countries now have laws in place to govern the use of this currency.
In recent years, Bitcoin has also become increasingly popular as an investment asset. In particular, it appeals to investors seeking an alternative to traditional stocks and bonds.
Investing in Bitcoin infrastructure for the future
You might have heard about people who invested in bitcoins at an early stage and made significant profits. However, you should be aware that bitcoins are a highly volatile investment asset, and there is always a chance that you could lose your money if you don’t know what you are doing.
Since the launch of bitcoin in 2009, various startups have been experimenting with different ways to make it usable in more ways and places. These startups have come a long way, but there’s still a lot of work to be done.
The development of bitcoin has been fast-paced and exciting. There have been so many innovations in space over the past few years that some people wonder: Have we seen everything yet? Or are there more surprises in store?
The truth is, it’s too early to tell. We may have seen all the major innovations for a while now, but there is still so much room for further development.
Why invest in Bitcoin?
Bitcoin’s price has skyrocketed by more than 1,000% over the past 12 months. Its value has surged more than ten times in less than two years. It is increasingly gaining prominence as a means of payment for online shopping transactions and as an investment asset that offers great returns for long-term investors. So, if you’re wondering looking for a guide on how to invest in bitcoin UK, follow the tips below:
How to invest in bitcoin: Steps to follow
Choose a Wallet
Before you can start investing in Bitcoin, you need a place to store your Bitcoins. This could be a digital wallet that exists in the cloud or a physical hardware device that you plug into your computer. It acts like a bank account where you can store your Bitcoins or have them transferred from one person to another without having to use real cash.
There are several options for your Bitcoin wallet. A hot wallet is one that you install on your computer or mobile device. You are in complete control over the security of your coins, but they can sometimes be tricky to install and maintain. A web wallet, or hosted wallet, is hosted by a third party. These are often much easier to use, but you have to trust the provider (host) to maintain high levels of security to protect your coins.
Make sure to do your research before choosing what wallet or exchange to use for your bitcoin purchases. I recommend finding a wallet that offers multi-sig security and 2FA when available.
Sign Up with an exchange
After selecting your wallet, you need somewhere to purchase bitcoin from. There are many bitcoin exchanges available, but I prefer Coinbase because they offer fiat currency purchases directly through your bank account or credit card. This makes buying and selling bitcoin very easy (and convenient). Plus, they have excellent security features in place to protect against theft or loss of funds on their exchange platform. Before signing up with an exchange, it’s important to make sure it supports deposits from your country.
Complete your ID verification and bank account link
To begin, you need to verify your identity by uploading a copy of your photo ID. This is an important step for all reputable platforms and you should not skip this step.
Fund your account
Now it’s time to deposit GBP into your account. You can do this via bank transfer or use a debit or credit card. Credit cards are instant but have higher processing fees, while bank transfers are slower but have lower fees.
Buy Bitcoin and other cryptocurrencies
Once you have money in your account, you can start buying crypto. This is usually a simple process that only takes a few minutes, but will vary depending on the platform you use.
Bitcoin is volatile. The value of Bitcoin can go up or down a lot in a short period, so it’s important to understand the risks before investing.