A lot of people today are either doing or planning to invest in cryptocurrencies, particularly bitcoin. But still, the majority are hesitant to do so because they don’t know how to invest in bitcoin and how much should we actually invest in it.
To give you an idea, there are multiple ways on how to invest in bitcoin. The most common one is buying it directly on your preferred cryptocurrency exchange.
For example, you can open a crypto exchange account and link your bank account or credit card. Then, you can proceed to transfer funds from your bank account to purchase BTC or purchase using your credit card. Take note that credit card purchases of BTC are the fastest ones to be processed but the most expensive ones also.
On the other hand, if you have more money to invest in, you can opt for the big players such as bitcoin trusts and ETFs comprised of bitcoin-related companies. In this case, you are knowledgeable enough to track your profits and losses wisely and you are ready to take bigger risks.
If you are curious about how to invest in bitcoin and how profitable it is, if you had invested at the start of 2020, you would be sitting on approximately 160% profit as of early December. So if you are planning to invest in BTC, you can surely do so.
There is no proven single strategy that will tell you how much should you invest in bitcoin for guaranteed wins. The best advice is to start with an amount you are comfortable with, observe how the market is moving, figure out a strategy that works for you, and always practice good risk management. In this way, you do not rely on others for your decisions but you will develop the confidence to make it yourself.
Many believe that if you are serious to learn how to invest in bitcoin, somewhere around 5% to 30% of your investment capital should be allocated to the asset. This is considering 5% to be very safe and 30% to be pretty risky.
Additionally, some of the most popular and secure bitcoin and crypto investing platforms include Coinbase, Gemini, eToro, HitBTC, and Binance. Also you can transfer bitcoin in your waveslitewallet account.