How To Invest In Bitcoin In 2020?

BySudhir Khatwani Updates On Bitcoin

Investing in Bitcoin is not that complicated as you might think.

I got involved with Bitcoin in late 2016, and I must say it was just the right time.

But after 2016, Bitcoin has seen lots of ups and downs, ultimately making the current time as the next best time to invest in Bitcoin.

I know why you are here:

You have made up your mind to invest in Bitcoin, and that’s a great decision I must say, but just in case if you are one of those skeptics, I recommend you to read out this guide: Is Bitcoin A Good Investment?

For the non-skeptics, I am going to answer the following questions in this guide:

  • How To Invest In Bitcoin?
  • Where To Invest In Bitcoin?
  • Why To Invest In Bitcoin?
  • How Much To Invest In Bitcoin?
  • Should You (I) Invest In Bitcoin?

So let’s get started with:

How To Start Investing In Bitcoin Stock? [ A Beginner’s Bitcoin (BTC) Investment Guide]

Bitcoin is an amazing technology, and it is a no-brainer not to invest in it, primarily after you have understood what it is?

But still, many investors remain eluded from Bitcoin and are missing on the golden opportunity to 10x or 100x their money. Yes, these returns are still possible if you play smart.

So to help such eluded investors, I am writing today’s guide.

If you are one of these, you may take this guide as your blueprint for Bitcoin investing.

Of course, you can customize this guide according to your wish, but there are two fundamental aspects of Bitcoin investment that I want you should never alter or change, no matter what !!

Here are those aspects:

  1. Choosing a reliable Bitcoin exchange to buy Bitcoin
  2. Secure wallet to store your bitcoins

No matter what happens, you should not compromise on your Bitcoin exchange and Bitcoin wallet because if you do, you will surely lose your investment before savoring its joy.

You need to understand that Bitcoin is not like traditional assets. Instead, Bitcoin is wholly your responsibility which you should own with your Bitcoin private keys in your control.

Bottom line: Failing to control your private keys is synonymous to losing your bitcoins.

Now that you know the essential pre-requisite aspects of investing in Bitcoin, let’s talk about each of these aspects in detail so that you are well versed in Bitcoin investing.

Where To Invest In Bitcoin?

Investing in Bitcoin is easy nowadays.

Back in the day when there were no Bitcoin exchanges, it was tough to invest in bitcoins. At that time, people used to coordinate on forums and private groups to invest in Bitcoin.

But now you have dedicated Bitcoin exchanges for each type of Bitcoin investor.

It doesn’t matter if you want to invest in BTC via fiat cash or bank transfer or even credit/debit cards, all these options are available for you now across the globe.

Here is the country-wise list of services from where you can invest in Bitcoin:

Invest In Bitcoin (BTC) Quick Buy Links
CEX.io (All Countries) [Recommended] Try Now
Coinbase (UK, USA, Europe, Canada, etc) Try Now
Coinmama (All Countries) Try Now
Wirex (Europe & UK) Try Now
Bitit (US, UK, Europe, Australia, Canada, etc) Try Now
Binance.je (UK & Europe) Try Now
LocalBitcoins (All Countries) Try Now
BitBay Try Now
Exmo Try Now

Most of these exchanges allow you to buy bitcoin by depositing fiat currencies like USD, EUR, or GBP on it. Here you need to do a KYC check and transfer your fiat currencies on their fiat linked crypto wallets. After which you can exchange fiat for Bitcoin.

However, I understand that not all the countries are covered in this list, and it can be likely that you don’t have any means to exchange your fiat currency in Bitcoin. For those users, here is the list of services that allow you to invest in Bitcoin using a credit/debit card:

I have used all these above-listed services, and I find Coinmama very swift in delivering bitcoins, and their customer support is also very supportive to new users like you !! That’s why I think Coinmama is the best way to invest in Bitcoin.

Some of you might not be having credit/debit cards and would like to invest in Bitcoin using cash. So for such users, I recommend LocalBitcoins.

LocalBitcoins is a P2P Bitcoin only service that allows you to connected with on-ground buyers and sellers of Bitcoin in 15000+ cities across 200 countries.

I have used LocalBitcoins 3 times by now, and it has been smooth.

Moreover, LocalBitcoins is a dedicated service for Bitcoin investments, and it acts like escrow in between, so you need not worry about the counterparty risk.

But be sure to check and engage only with reputed BTC traders by looking at their reputation score. Also, if you wish, you can read our Beginner’s guide on LocalBitcoins !!

So these are some of the best options using which you can invest in Bitcoin easily.

With time we will be updating this section as we find more reliable options for you to invest in Bitcoin. But for now, if you choose one of these services, then you should be good !!

Note: Unless you are from an alien country, you should be able to invest in Bitcoin using these services. But still if you are not able to understand how to invest in Bitcoin in your country then do let us know in the comments below, and we shall do everything to get you started with Bitcoin?

Now the next natural question that should arise in your mind after you have invested in Bitcoin is, how to keep it safe? And that’s what we are going to discuss in the next section.

Where To Store Your Bitcoin?

Storing your bitcoins safely is of paramount importance.

Bitcoin is self-sovereign money, which is unlike the USD or EUR currencies that you keep in your bank.

But many Bitcoin investors make this mistake of storing their Bitcoin & other cryptocurrencies with services from whom they bought these currencies.

And I must say this is hell wrong thing to do !!

Investors who do this ultimately become a victim of many Bitcoin exchanges hacks that keep happening every now and then. If you don’t believe me see this stats of crypto exchange hacks since 2011:

https://twitter.com/coinplanett/status/1088467072991092741

If you don’t want to be counted amongst these careless investors, then choose to hold your Bitcoin private keys or Bitcoin’s 12-word seed with you !!

How to do that?

Well, you can do that by choosing some of the best Bitcoin wallets for cold storage that we are using ourselves to keep our bitcoins and cryptocurrencies. Here are the two recommendations from us:

Using any of these wallets, you can secure your Bitcoin wallet’s 12-word seed, and this seed is capable of restoring all your funds even if you lose your wallet or if the wallet is damaged.

Of course, there are other Bitcoin wallets in the market, but I believe spending mere 100 bucks on a Bitcoin hardware wallet should not be a problem for a long term investor like you.

And especially that too when this hardware wallet is going to protect your Bitcoin investment which can someday be worth millions of dollars.

Some other software Bitcoin wallets that you can use for keeping pocket like change are as follows:

  • Mobile: Coinomi
  • Desktop: Exodus

I recommend you not to save a significant amount of funds in these software wallets because they are always connected to the internet and they can be hacked.

Lastly, stay away from Brain wallets and paper wallets because they are tedious to use, and their security depends upon the online security competence of the user. Also, we don’t need to use paper wallets or brain wallets in 2019 when we have more secure options like hardware and software wallets.

Why To Invest In Bitcoin?

If some of you are still confused about your Bitcoin investment, then I recommend you stick around till the end because I am going to share why I choose to invest in Bitcoin.

But for now, those of you who don’t know:

Bitcoin was made to give you an alternative to traditional banking.

That’s because the founder of Bitcoin, Satoshi Nakamoto knew that banks would not stop their predatory way of banking and in the end, common masses like you and me will keep suffering from their inflationary policies.

That’s why Satoshi created Bitcoin, and now it is acting as a hedge for ordinary people against the failing banking system.

Bitcoin is apolitical, and no single entity controls it, making it is nearly impossible to take down. On the other hand, it is very cheap to transact using Bitcoin because you can literally move millions of dollars across borders in minutes with a fee in a few cents.

This wasn’t possible before Bitcoin.

Lastly, Bitcoin’s total supply is finite, and there will never be more than 21 million bitcoins.

Only 21 million bitcoins will be generated out of which 3.5 million are however yet to be mined, and approx 4 million coins are already lost, leaving the 7 billion world population with an effective supply of 13 million bitcoins, at the time of writing.

Do you even realize how scarce it is?

Just think about that !!

I think now you know why you should invest in Bitcoin !!

Bitcoin (BTC) Investment Strategy 101: How Much To Invest In Bitcoin?

Now the next obvious question that lingers in the mind of investors is how much one should invest in Bitcoin?

Well, there is no one size fits all answer to this question, but the bottom line of your investment should be this:

  • How much is your risk appetite?

If you can answer this question comfortably to yourself, then you are in a good position.

Another perspective to answer this question is given by Andreas Antonopoulos- the famous Bitcoin evangelist:

He says that the percentage of your wealth that you should put in Bitcoin should be equal to the percentage of your understanding of Bitcoin as a subject.

And I too feel this is an excellent barometer to have because it will ultimately prevent you from becoming over-committed to an investment. So this is a good way to begin.

Lastly, many people ask, what is the minimum Bitcoin investment that they should make?

You can start as low as $50 or $100 to invest in Bitcoin every month or week and this way you will not try to catch the price of Bitcoin.

But per se, there is no minimum investment requirement set by the Bitcoin network itself, but there may be Bitcoin services that have a minimum Bitcoin investment criteria to be able to buy Bitcoin through them.

When To Invest In Bitcoin?

 

You can buy Bitcoin any time you feel confident that you have understood what it is !! Nothing is stopping you from buying Bitcoin, especially when it is traded 24 X 7 across the globe.

But I know some of you might be looking to get a perfect price point before entering into a Bitcoin investment. And let me be honest, no one knows that entry point, and everyone is just guessing !!

So the best time is now, and the best way to buy Bitcoin is, incrementally, every week or every month.

But still, if you want to bet a lump sum amount of money on Bitcoin and are looking for a price point, then Bitcoin Mayer Multiple and Bitcoin NVT Ratio can give you some idea or hint.

How to invest in bitcoin in India?

Investing in Bitcoin in India has become a little bit tedious, especially after RBI severed the relationship between banks and cryptocurrency exchanges in India.

But Bitcoin is not illegal in India, and that’s why many services allow you to invest in Bitcoin in India in a peer to peer fashion. Some of these services are:

How to invest in bitcoin in South Africa?

South African has been especially interested in Bitcoin, and there are numerous ways to invest in Bitcoin in South Africa. Some of the Bitcoin services that allow you to invest in BTC using South African Rand (ZAR) are:

Investing In Bitcoin Mining

It’s 2019, and I wouldn’t recommend you to invest in Bitcoin mining unless you are willing to spend 100s and 1000s of US dollars upfront.

Bitcoin mining became out of reach of individual investors long back in 2014-2015. In 2014-2015, cloud mining contracts used to work for individuals investors but no longer anymore.

Bitcoin mining is very energy and cost-intensive process that requires dedicated data centers and mining farms. That’s why now there is no point in investing in Bitcoin mining.

Instead, I would suggest you to either buy Bitcoin or earn Bitcoin by working for it !!

Conclusion: How to get started with Bitcoin?

I think by now you have got answers to your following questions:

  • How to invest money in Bitcoin?
  • How to invest in bitcoin and make money?
  • How to Bitcoin? or How to get started with Bitcoin?

So now I want to tell you why I invested in Bitcoin?

I invested in BTC because I was blown away by the fact that money could exist outside the realm and control of governments. Bitcoin helped me question my understanding of money.

Eventually, I could find what money is? And what it should be & shouldn’t be?

Finally leading me to this conclusion that:

Bitcoin kills the incentive for which politicians politicize and bankers do banking !!

That’s why I HODL BTC and continue to encourage people to do the same !!

If you have any more questions on BTC investing, then feel free to shoot in the comments section below. And If you find that this guide is helpful, then do spread the love by sharing it on Twitter, Telegram, & Facebook !!

Sudhir Khatwani
Latest posts by Sudhir Khatwani (see all)

Contents

Hey there! I am Sudhir Khatwani, an IT bank professional turned into a cryptocurrency and blockchain proponent from Pune, India. Cryptocurrencies and blockchain will change human life in inconceivable ways and I am here to empower people to understand this new ecosystem so that they can use it for their benefit. You will find me reading about cryptonomics and eating if I am not doing anything else.

5 Comments

  1. It is indeed a good time to be alive! Bitcoin one of the hottest new investment assets is on the rise again. It is extremely difficult to mine on your own. Good luck!

    Reply

  2. I’m a pilipino man I want to invest this kind of business but the truth is I don’t know how to make this kind of business I’m here now in saudi Arabia,but my question is can i aveil this bitcoin here in saudi Arabia even I’m not a saudi national,and how to work on it,

    Reply

    1. Hi Pilipino

      First, it is not a business. Second, you can buy Bitcoin in Saudi. Third, reach out to [email protected] someone from the team might help you with questions and buying process.

      Reply

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