The next bitcoin halving took place a few months ago. As expected, after the halving, the value of bitcoin increased from about $60k to $67k. We expect this event to increase the value of the largest digital currency. However, its final impact will only be seen after some time. Halving is a significant phenomenon because it affects the supply of bitcoin, halving it. A reduction in supply often leads to an increase in value, making this event crucial for investors monitoring the cryptocurrency market.
How to buy Bitcoin?
Now that you know a few ways to invest in Bitcoin, let’s focus on the simplest of them, which is the direct acquisition of this asset.
- Step 1: Open an account on the exchange
Open an account on a cryptocurrency exchange: first of all, make sure that the exchange you choose is properly regulated, complies with European regulations, and offers security to its users. All this information can be easily checked online.
Once you have chosen one, you will be required to provide your details and email address and answer some basic questions about financial literacy. You will then be able to open your account on the exchange.
- Step 2: Make the minimum deposit
Once you have opened an account, add the amount of money you want to invest. Generally, this can be done by bank transfer or credit/debit card. Other platforms offer alternatives, such as PayPal.
- Step 3: Buy Bitcoin
Once you have funds in your exchange account, simply search for the digital currency on the platform. Then indicate the amount you want to invest and send the order.
- Step 4: Store your Bitcoins in a safe place
After purchase, store your Bitcoins in a personal wallet: this is the most important step in terms of security.
Some exchanges have their own wallet, but you should learn how it works. Otherwise, you can opt for a hot wallet or cold wallet, which we will explain later.
- Step 5: Monitor your investments
If you intend to invest for the long term, you don’t need to check your Bitcoin position every day. For more complete monitoring, it is best to keep yourself informed about the general situation in the markets.
Where to buy Bitcoin?
You have already seen that direct purchase is not the only way to invest in Bitcoin. Another popular option is CFDs.
They have the advantage of not having direct access to the asset (thus eliminating the risk of theft and everything related to storage), as well as being leveraged products, meaning you don’t need money for the operation.
CFDs can be purchased through various brokers, among which we can highlight several options.
Why Invest in Bitcoin in 2024?
It may seem trivial, but the truth is that there are good reasons to buy bitcoin in 2024. As we have already noted, its value has increased immensely this year.
Let’s take a look at the most fundamental reasons:
- It is in deficit.
- It is durable.
- It is resistant to inflation.
- It is difficult to counterfeit.
- It is not subject to any government policy.
- It can be stored.
- It is accepted as a means of payment.
In fact, it has several similarities to gold. Bitcoin is called digital gold or gold 2.0.
Opinions on Bitcoin
As with any other asset, opinions about Bitcoin are mixed, generally associated with those who are in favor of cryptocurrencies and those who do not believe in their long-term development.
Those who are against investing in this digital currency cite arguments such as fraud in the crypto world, the insecurity of its storage, or simply that they do not trust it to become a safe asset like gold.
On the other hand, those who defend Bitcoin admit that the cryptocurrency market has had many excesses, but they believe in its potential as the first digital currency, and given the institutional interest, they are confident that its price will continue to rise. However, its real value lies in the fact that it can be a return to real money, without manipulation by central banks and other government bodies.