Apr 10, · Bitcoin has progressed enough as an industry that in a matter of minutes, you can own bitcoins that can be used as currency or an investment. Before you acquire bitcoins, though, you'll need Author: Steve Fiorillo. Dec 20, · For as volatile as the stock market has been in , you wouldn't know it by looking at bitcoin, which is up by % on a year-to-date basis through the late evening of Dec. Jun 06, · The most convenient way to gain exposure to bitcoins is through the Bitcoin Investment Trust (OTC:GBTC). This fund was created so that buying bitcoins could be as easy as buying any stock Author: Matthew Cochrane.
Can you buy bitcoin on the stock marketHow to Buy Bitcoin | The Motley Fool
With this question in mind, let's look at some different ways investors can buy bitcoins or otherwise gain exposure to this unique asset class.
If you're still a little confused about what exactly a bitcoin is, here is an excellent primer on the unregulated virtual currency by fellow Fool Matthew Frankel. The most popular way to buy bitcoins is through bitcoin wallets, digital wallets for the exclusive use of bitcoins. There are many different types of bitcoin-based wallets and you need to be very careful to choose something that will best meet your needs.
Some bitcoin wallets are device-specific, while others are web-based. Coinbase is one of the most popular digital wallets used to purchase bitcoins.
As with almost any of these wallets, customers must sign up for an account online and then link a bank account. If they just want to buy, a valid credit card number will do. Before any bitcoin transaction, Coinbase shows users the current value of the digital currency in U. Since third-party cryptocurrency wallets have been famously known to be hacked resulting in a permanent loss of funds, investors must be careful to properly secure their bitcoin wallets.
Remember, bitcoins are not stored in FDIC-insured accounts and most third parties do not offer insurance in case of theft or fraud. How bad is this problem? Last August, Reuters reported that a full third of bitcoin exchanges had been breached.
Security is vitally important in keeping bitcoin accounts safe. Back-ups are critical in cases of computer crashes or stolen wallets. Wallets must be encrypted so anyone withdrawing bitcoins from your account must know a password. Whatever you do, don't forget your password! Many wallets offer two-factor authentication, where a unique code is texted or emailed to you before withdrawals can be made.
Bitcoin passwords are also critical as, unlike bank accounts, there is no customer service line to reset your password. Although bitcoin is a popular financial instrument and is useful for stock trading purposes, there are also real cryptocurrency exchanges that give you private keys so you can withdraw your bitcoin.
This can be useful for many reasons including being able to move and spend your bitcoin at will. Pro Tip: Experienced crypto-to-crypto traders might find Binance to be the most useful exchange on this list as it has high volumes and low fees when compared to most other exchanges. The platform has options for both beginners and advanced traders. For traders who specifically want to conduct crypto-to-crypto trading, the best available exchange is Binance. The platform is extremely popular mainly due to its low trading fees.
Although it is relatively new, it is growing rapidly and has a wide selection of altcoins. Coinbase is one of the most well-known Bitcoin exchanges in the marketplace. For beginners and investors alike, Coinbase is a great platform to get your foot into the door with bitcoin stock trading. The user interface is both colorful and accessible and there is even a mobile app available for Android and iOS.
You will need to upload a government-issued ID in order to prove your identity before being able to trade bitcoin.
The platform incorporates real-time order books and charting tools within a simple interface. Orders are placed directly from the Coinbase Markets. The exchange is simple to get started on and boasts an easy to navigate user interface.
There is also a mobile trading app for the CEX. IO exchange platform which is available on both iOS and Android. Kraken is the world's largest Bitcoin exchange in terms of both total volume and liquidity and accepts almost every type of bank or wire transfer as a funding method.
Kraken Pro provides individual investors with real-time trading and charting tools. Kraken was founded in and is the largest Bitcoin exchange regarding total volume and liquidity; it is also an associate of the first-ever cryptocurrency bank.
Kraken is the best choice for professionals since it offers margin trading and other pro trading options. Gemini is a simple, elegant, and secure way to build your bitcoin and crypto portfolio. The dashboard makes it easy for investors to view a snapshot of their holdings upon login.
The platform allows you to purchase and sell Bitcoin, Ethereum, Litecoin, Zcash, and soon Bitcoin Cash with real-time market limit buy and sell orders. With Gemini, you have the computing power of Forex trading software with a simple, easy to use interface.
Transferring funds into Gemini is as simple as linking your bank account. Bank transfers and bank wires are completely free , although your bank may charge you a fee to wire money into your Gemini account. Bittrex is one of the largest cryptocurrency trading platforms in existence and serves customers all over the world.
Bittrex is ideal for those seeking a cryptocurrency trading platform with a large array of technical analysis tools. They offer a secure trading environment that provides advanced charts and data analysis tools for its customers. With large cryptocurrency support, those familiar with Forex and stock trading will feel at home with the tools Bittrex offers.
You can set limit orders to execute each order at the price you want to set. Find a trading pair you would like to buy or sell i. Place a market limit or stop order. When the price of bitcoin moves past or away from the price you set, the order will execute, and you will have bought or sold bitcoin. You can repeat the process as many times as you like.
With well over 30 million customers, Coinbase is a trustworthy exchange that is backed by a number of institutional investors and venture capital firms.
We recommend Coinbase Pro as the top bitcoin exchange for large volume cryptocurrency traders. Plus, institutional interest from hedge funds and corporations has increased to its highest level yet. However, whether bitcoin has a bright future -- either as a digital currency or as a store of value -- remains to be seen. This makes bitcoin a highly speculative asset to own. If you're a believer in the long-term use cases for bitcoin, another way to play it would be to buy a stock that could make billions if bitcoin does well, but that will be just fine if it doesn't.
There's no denying that Square's bitcoin operation has been very successful. It could stand to benefit dramatically if bitcoin's price keeps rising, or if the digital currency achieves widespread merchant acceptance. The point is that Square doesn't need those things to happen. At its core, Square is still a payment processing business.
It has grown dramatically over its decade-long history. In addition, Square has built a nice business lending operation in the form of Square Capital, which has originated billions of dollars in small business loans. It does this at a much lower credit risk than its peers, since its loans are based on merchants' sales.
Square received approval for a banking charter of its own in , and the company plans to launch its own industrial bank next year. Finally, there's the Cash App, which offers so much more than bitcoin. The app provides person-to-person payments, the ability to buy and sell stocks, and debit cards. Cash App's user base has quadrupled over the past three years.