5 Most Popular Ways of Investing in Bitcoin

The most popular of the horde of cryptocurrencies available these days, Bitcoin is taking over the news nowadays. There were people who bought the cryptocurrency for a meager amount and became millionaires a few years later. Launched in 2009, Bitcoin has spawned a huge market in itself because it is a way for people to send money over huge distances without the risk of third party intervention or fraud and transactions can also stay anonymous. Furthermore, there is also a limit to the number of Bitcoins that will be created and this limited supply has led to a huge demand. Therefore, it is not surprising to know that more and more people are interested in investing in this cryptocurrency. But, how can you do that? Here are 5 popular ways this can be done:

1-Mine Bitcoins

rnThis is not a very common method of investing in Bitcoin, but it is one. When you mine Bitcoins, you have to solve complicated mathematical problems and also provide proof of work. When a problem is solved correctly, a new Bitcoin node appears in the software running the currency. Typically, a computer can be used for doing the mining and you just have to connect it to the Bitcoin network and direct it to solve a cryptographic puzzle. When it is solved, the public record of Bitcoin transactions called the Blockchain will get a new digital block and you will receive a set amount of Bitcoins.

2-Online Trading

rnOne of the most popular ways of investing in Bitcoin is through the online exchanges. There are websites such as Coinbase where you can exchange the currency of your choice for Bitcoin. The only downside you may find with this option is that it will take a bit of time. You have to make an account, which involves providing photo ID and proof of residency and then your bank account needs to be verified. During this time, there can be a dramatic fluctuation in the value of Bitcoin and you don’t know how much you will end up.

3-Buy Face-to-Face

rnYes, this is exactly what it sounds like. You can purchase Bitcoin from someone in person in exchange for cash. This is the best option for people who wish to purchase Bitcoins more quickly, but this method is not without its risks. It is important to note that face-to-face transactions involve considerable cash due to which it can be dangerous. It is best to choose a public location and take someone along with you.

4-Face-to-Face Bitcoin Exchange

rnIf you are a serious investor, you can opt for this method as it is simply a more complicated version of a face-to-face Bitcoin transaction. Also called Buttonwood meetups, Bitcoin exchanges bear a resemblance to the oldest version of the New York Stock Exchange; a group of people came together for exchanging goods such as gold and silver or currencies for cryptocurrencies. However, these transactions are not very large and are only conducted to get people interested in Bitcoin and other cryptocurrencies.

5-Use an ATM

rnYes, you can also use an ATM for investing in Bitcoin, but this doesn’t mean just any ATM. Robocoin created the world’s first ATM for Bitcoin and it is placed in Waves Coffee in Vancouver, British Columbia. A transaction fee is charged by the machine, which is about 3 to 5 percent, but it can do a huge number of transactions in a single day. You can insert cash into the machine and get a share of Bitcoins. If you have made up your mind about investing in Bitcoin, you can use any of these unique methods for doing so.