- With bitcoins, you control the transactions instead of needing a broker.
- Bitcoins had a price peak in late 2017 that hit $19,086.64 per bitcoin unit.
- The price of bitcoin has fluctuated greatly over time, dropping almost 70 percent six months after its high.
Cryptocurrencies have been met with skepticism by powerhouses in the investment world like Warren Buffett and JPMorgan Chase’s Jamie Dimon, who have famously rebuked it.
The bitcoin investing frenzy might have cooled, but its future still shines brightly. So how exactly do you get a piece of the currency for the digital age?
GOBankingRates answers your most important questions to help you so you can also find out how to spend your bitcoins.
How do I buy bitcoin?
Naturally, the digital currency is purchased digitally. There’s no shortage of digital exchanges and marketplaces, like Gemini or Changelly, which are both dedicated to exchanging cryptocurrency.
Not Buying Bitcoin? 7 Alternatives to Consider Investing In
Where do I buy bitcoin?
Instead of paying a licensed broker to buy, sell or trade on your behalf, you control bitcoin transactions from your smartphone with free apps like Coinbase, LibertyX or Cash App, which all allow you to buy bitcoin. You can even blend 20th-century and 21st-century banking by visiting one of the over 3,400 bitcoin ATMs located around the U.S. and the world.
Once you’ve purchased your bitcoin, it will be stored in your virtual wallet.
Whether you decide to hang on to it or spend it on a spree, there’s a growing list of retailers that now accept bitcoin as tender.
How do I pay for bitcoin?
Buy with cash, credit, debit, wire transfer or other cryptocurrencies. You name it. As long as it’s legal tender, it’s probably accepted.
Tax Time: How Is Bitcoin Taxed?
How much does bitcoin cost?
There’s no simple answer to this one because it depends on who you ask.
If you ask an early bitcoin investor or anyone who purchased the currency pre-January 2017, they’ll tell you they paid less than $1,000 per bitcoin unit. Since its December 2017 price peak at $19,086.64, the highly volatile bitcoin has fluctuated and hovered at times around $10,000 per unit. At its lowest since that peak, bitcoin was $5,848.26 in June 2018. That’s almost a 70 percent price drop in just six months.
The price of bitcoin, like all cryptocurrencies, is market dependent — meaning the price is dictated by the economic principles of scarcity, utility, supply and demand.
Click through if you’re unsure about bitcoin and want to read more about less risky investments than bitcoin.
More on Investing
- It’s Time to Ditch Your Stock Broker and Invest Through a Credit Union
- 12 Essential Money Tips for Every Phase of Your Financial Life
- 9 Fastest Growing Industries to Invest In