Investing in cryptocurrencies
can be a confusing experience – Where do I begin
and what options do I have? Hi I’m Nate Martin, and we’re going to cover how to invest
in Bitcoin and cryptocurrencies in our 2…minute….tutorial. Today we’ll cover three options
for investing in Bitcoin or any other cryptocurrency. The first is buying actual Bitcoins and storing them
inside your personal Bitcoin wallet. This method is probably the most complex, but also our most recommended way
to invest in Bitcoin of the three. With this option,
you’d need to find a Bitcoin exchange, deposit money into it
and convert that money into Bitcoin. Once that’s done, you’ll need to get a Bitcoin wallet so you can move your coins off the exchange
and into that wallet for safekeeping.
The second option for investing in Bitcoin
is derivatives trading. With derivatives,
you won’t be buying the actual coins. Instead, you’re buying a contract
that mimics the coin’s behaviour. If the coin goes up in price
you can sell the contract for a profit but if the coin’s price drops –
you’re at a loss. With derivatives, there’s no need for a Bitcoin wallet
since you don’t actually own Bitcoins. Just open an account,
deposit money and start trading. Derivatives also allow for leveraged trading which means you can borrow money to increase
the amount you want to trade. However, this option
is considerably more risky and is suitable only for experienced traders.
Finally, you can invest
in a Bitcoin exchange traded fund or Bitcoin ETF for short. Investing in an ETF also means you’re buying
a contract and not an actual coin. ETFs are traded on regulated stock exchanges
and try to mimic Bitcoin’s price moves although they might not reflect
Bitcoin’s price with complete accuracy. Today, there are still only a handful
of Bitcoin ETFs available. ETF investing is geared toward
the average investor who doesn’t want to deal with opening accounts
or downloading wallets. You can invest in an ETF the same way
you invest in stocks – through your bank, financial advisor,
or conventional trading platform. So there you have it: our top three picks for the best ways
you can invest in Bitcoin today. Once you decide which option is best for you, you can find our complete step by step guides by clicking the links in the description
below this video and I’ll see you…in a bit.
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