Investing in Bitcoin can seem a somewhat daunting task, and it could have a fairly steep learning curve for the uninitiated. But with the apex cryptocurrency grabbing eyeballs, everyone wants a piece of the action. Skyrocketing prices may seem tempting, but investing in Bitcoin comes with risks. But if you have made up your mind, studied the basics, and want to buy some, how do you go about it?
Luckily, there are more than a few ways in which you can purchase your Bitcoin. Want to jump straight in? You can buy Bitcoin from an exchange. If you don’t want to purchase Bitcoin through an unregulated exchange, you can invest in Bitcoin ETFs or companies investing in Bitcoin. You can even purchase Bitcoin through Decentralized Finance (DeFi) protocols. In this article, we will discuss each option and help you understand which one could work best for you.
Exchange-Traded Funds (ETFs) sound complex and may put you off, but they are quite simple to wrap your head around. A Bitcoin ETF is simply an investment vehicle that trades on the stock market. The shares in the ETF are proportional to the price of Bitcoin, which the ETF managers buy or sell. However, Bitcoin ETFs are offered only in a handful of countries such as Canada and Brazil. The Securities and Exchange Commission, while denying applications for Spot ETFs in the US, has given the green light to several Bitcoin Futures ETFs tracking the value of short term bets on the price of Bitcoin in the future. Prominent Bitcoin ETFs include the ProShares Bitcoin Strategy ETF, and Simplify U.S. Equity PLUS GBTC ETF.
Another option that allows investors to gain exposure to Bitcoin is to invest in companies that invest in Bitcoin, tying their performance to the price of BTC. MicroStrategy and Grayscale Investments are the most well-known companies that keep Bitcoin on their books. MicroStrategy (MSTR) has billions of dollars worth of Bitcoin on its books, with some analysts calling the company a quasi-Bitcoin ETF. Investors can also invest in the Grayscale Bitcoin Trust (GBTC), the largest publicly traded Bitcoin fund in the world. You can also invest in companies that support Bitcoin infrastructure.
The Bitcoin blockchain is not interoperable with other blockchains, which means you can’t trade Bitcoin directly on other blockchains such as Ethereum. However, you can now trade synthetic Bitcoin on these blockchains. wBTC is the most popular of these synthetic assets, and is an ERC-20 token tied to BTC. This unique asset allows traders and institutions a bridge to the Ethereum network while maintaining their exposure to Bitcoin. Investors can purchase wBTC from protocols such as Uniswap or Sushiswap and then stake their wBTC into DeFi lending protocols and earn yield.
Buying through a cryptocurrency exchange is probably the easiest way to purchase Bitcoin. As the name suggests, a cryptocurrency exchange is a platform through which you can buy, sell, or trade cryptocurrencies using traditional fiat currency or other digital currencies. All you require is an account on the exchange. Once you open your account and complete your KYC and AML formalities, you’re ready to begin trading. Cryptocurrency exchanges are an excellent option for those investors that would prefer to maintain a degree of anonymity.
Choosing an exchange is easy, with several options out there. One of the most reputable crypto exchanges that you could choose is Rain. Rain is available in all the major financial hubs in the middle east, and supports multiple fiat currencies, including the US Dollar. It allows users to purchase Bitcoin easily and also has high liquidity levels.
Why should Rain be your first and only option, especially if you are from the MIddle East?
Rain is regulated by the Central Bank of Bahrain (CBB) and, as a result, is subject to strict cyber security and banking standards.
Rain uses bank-grade security and a proprietary offline cold storage system to store its assets.
Rain also provides users 24/7 support, ensuring users of live human support whenever needed.
The exchange features 0% trading fees on buys, sells, and swaps.
Rain also offers users a large selection of coins, with new currencies constantly added.
Rain offers quick verification, ensuring you can purchase Bitcoin within 3 hours of registration.
If you are interested in buying Bitcoin through a cryptocurrency exchange, you can register with Rain and start trading.
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