3 Easy Ways to Start Investing in Bitcoin

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3 Easy Ways to Start Investing in Bitcoin

In addition to the direct purchase of cryptocurrency on various platforms, there are several more ways to make money on digital assets. Experts explained how they differ and what are the advantages of each

At the end of April, according to Google Trends , there was a surge of interest in investing in cryptocurrency. Search query statistics show that more and more people are showing interest in earning money with the help of cryptoassets. Experts interviewed by RBC-Crypto named the main ways to invest in bitcoin and explained their advantages.

Direct purchase of cryptocurrency

The easiest to get cryptocurrency (bitcoin) is buying them on exchange platform. However, the platform for conducting transactions must be chosen responsibly, taking into account authority, fame and stability, advises Grigory Klumov, founder of the STASIS platform for stable cryptocurrencies. According to him, it is worth deciding in advance with the aim of buying digital coins. If your goal is to trade cryptocurrency and often use it for various transactions, then it is better to store the purchased tokens on the exchange, this will greatly facilitate access to them, the expert says.

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Among the advantages of this method of investing, Klumov called the ability to use purchased bitcoins for trading, investor protection, since most of the largest crypto exchanges have long entered the legal field, as well as the ability to transfer bitcoins to stablecoins at any time if quotes start to decline. If bitcoins are bought for the purpose of long-term investment and will not be used in the near future, then it is better to withdraw digital coins to a cold wallet, recommends Grigory Klumov.

Mining

You can get cryptocurrency in another way - by extracting it by providing your own computing power to maintain the network. Buying one ASIC miner and connecting it at home will not bring a normal income, says Roman Nekrasov, co-founder of LAZM. However, this can be done in order to get acquainted with the mining industry and gain relevant experience, he added.

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To count on a serious profit, according to Roman Nekrasov, you need at least 10,000 cars, because then service maintenance in terms of each device will be cheaper. The expert also noted that people who are not familiar with the field of mining will have technical difficulties when trying to get cryptocurrency.

If you approach mining professionally, then in the event of a sharp increase in the cryptocurrency rate, the miner has more chances to earn than a simple investor, the co-founder of LAZM noted. However, the risks of miners increase when quotes begin to fall rapidly, because then mining may become unprofitable, Roman Nekrasov added.

Indirect investment

If an investor does not want to contact crypto exchanges and take responsibility for storing cryptocurrencies in cold wallets, then he has the opportunity to invest in instruments related to digital coins, explained Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. He attributed the lower risk of asset depreciation and lower volatility to the advantages of this method, but this also reduces potential income.