It’s been over a decade since Bitcoin was introduced, and this asset doesn’t seem to be going anywhere. While it’s still controversial, the crypto market continues to evolve, and it receives the ongoing support of non-traditional investors who believe digital tokens are the future of finance.
Despite its volatility, many investors buy bitcoin online, hoping to get substantial returns. What makes this asset unique is its finite supply of 21 million coins, among which a couple million still need to be mined. This asset's seamless supply and demand dynamic is the primary reason it has experienced skyrocketing prices over the past year, while its current price is $74,808.31. If you’re interested in buying Bitcoin, keep reading, as we dive into the 5 different ways to do that and potentially yield substantial returns.
Look for a crypto exchange
Bitcoin is a digital currency that secures and validates transactions using cryptography. Most people buy Bitcoin on a crypto exchange, which is essentially an online platform resembling online brokerages designed to facilitate crypto trades. There are different crypto exchanges available, and if you want a seamless experience, it’s essential to conduct comprehensive research and choose the one with the best features. One of the most important considerations when picking a crypto platform is liquidity and trading volume.
Higher liquidity means faster execution of trades and tighter spreads, and if you want to execute large orders or participate in day trading, it will be easier for you to enter and exit positions. The crypto exchange you select should have an intuitive interface that enables smooth navigation and enables you to use mobile apps to trade while on the go. Also, you want to ensure that the crypto platform is equipped with advanced security measures to safeguard your fund.
Use an ATM
Bitcoin ATMs enable you to buy Bitcoin with a debit or credit card, and they differ from regular ATMs in the way they are linked to Bitcoin wallets instead of a bank account. Bitcoin ATMs sell and purchase BTC at the existing going rate, but it’s worth noting that if you want to purchase and sell digital tokens, you’ll have to look for select bidirectional Bitcoin ATMs.
Additionally, you may want to use them to send BTC to someone else who has a Bitcoin wallet. One thing to remember is that Bitcoin ATMs, compared to online exchanges, charge significant transaction fees, and it’s a good idea to familiarize yourself with them if you’re considering using this method of buying BTC.
Consider mining
Satoshi Nakamoto was the one to introduce Bitcoin in 2009, with the aim of offering people a trustworthy asset that can keep its purchasing power throughout time, just like gold has succeeded in doing. To mine Bitcoin, miners, which are essentially organizations or individuals,” rely on computing hardware to calculate a “hash” meant to encrypt transaction data, which is further collected into blocks.
There are three different mining options: solo mining, cloud mining and pooled mining, and they all have unique advantages and disadvantages. For instance, while solo mining offers the potential for higher rewards, it’s less beneficial than pooled mining because it doesn’t enable the pooling of resources and knowledge for new block creation.
Go freelance or work for Bitcoin
Freelancing is an excellent way to earn Bitcoin, and you can get started with it by seeking out platforms that reward this crypto. There are niche job listing sites, such as Bitcoiner Freelancer, where you can find different job opportunities. You can also consider requiring clients to pay a percentage of your compensation in BTC – after all, there’s nothing to lose if you ask, right?
Freelancing platforms cater to various professional services, ranging from programming and graphic design to digital marketing, so this is one of the best advantages of getting started with this method of earning Bitcoin. Freelancing also comes with flexibility, because it allows you to choose when and where you work. So, if you think this method works best for you, you can start by choosing the right platform that aligns with your skills, setting up your profile where you can highlight your experience and abilities, and then start looking for projects that you find most suitable for you.
Try a Bitcoin reward program
Many crypto exchanges link investors with bitcoin rewards programs through a crypto credit card or a learn-and-earn module designed for beginners. Just like cash-back credit cards offer you points or a percentage of cash back when you buy something, it’s possible to earn bitcoin rewards when buying items using your crypto credit card.
Different platforms provide bitcoin-earning credit cards, and it’s worth looking at the options available to make an informed decision and ensure a seamless experience.
How do you choose the right method of buying Bitcoin?
Investing in Bitcoin can seem daunting, and the truth is that not all methods are suitable for everyone. When you’re just starting, opting for a reputable exchange and creating an account can be a good idea. You're good to go once you verify your identity and deposit some money.
The method you pick when it comes to buying Bitcoin depends on your goals mainly. For example, if you want to diversify your investment portfolio by getting exposure to digital currencies, it’s a good idea to opt for a Bitcoin ETF or future rather than a direct investment. This protects you from the inherent volatility of cryptocurrencies. However, if you see Bitcoin as a promising long-term investment and are willing to take its risks, you may consider investing directly through a crypto exchange. Regardless of the option you choose, when you’re a crypto newbie, it’s important to remember that there’s always the likelihood of losing the money you invest. Also, if you decide to use an exchange, make sure to check the fees it charges, as they can vary depending on the platform.
The bottom line
It’s never too late to get Bitcoin, but deciding which method works best for you is essential because they have unique characteristics, as highlighted in this blog. While it’s possible to benefit from future Bitcoin growth, keep in mind that no one can guarantee that Bitcoin will appreciate, so it’s important to understand the risks before diving into the world of crypto assets.
