Over the last few years, Bitcoin has established itself as a popular investment option. Presently, Bitcoin is not as mainstream as say, stocks or bonds, but it’s quickly entering the conventional financial sector, being recently adopted by Futures exchanges.
With the surge in value of Bitcoin, investing has been more lucrative than other options listed here. Buying and holding Bitcoin until the prices go up and then selling them can be extremely profitable, though it also holds a lot of risk.
Bitcoin has paid off incredibly for investors who invested in the cryptocurrency early on. If you had invested $500 in Bitcoin when its value was only $1 in 2011, your investment would have multiplied by several thousand times. This is an extreme example, but it highlights the profitability of Bitcoin for traders who held their investments for a long time.
A prominent Bitcoin exchange is Coinbase, which has become a go-to exchange for many new investors because it’s more secure and user-friendly than other exchanges. See our extensive listing of crypto exchange reviews.
A relatively lesser known method of investing Bitcoin is through trading it as a CFD. A CFD is basically a derivative instrument based on the price of an asset, in this case, Bitcoin. Derivative trading does not require the actual purchase of the asset.
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