Can you really buy stock with bitcoin? Lets answer this question by understanding each instrument way of purchase and usage. There are ways to buy stock with bitcoin and other cryptocurrency and there are ways to buy bitcoin using stocks. It just takes time and money for fees.
What is Bitcoin and how to Buy and Sell your Bitcoins
The first cryptocurrency ever invented is Bitcoin. It was designed with the intention of becoming the international currency to replace government issued international currencies. Bitcoin started back in 2009 when it has turned into a highly volatile investing asset. Since then it can be used for transactions where it is accept as a payment method.
Can you you invest in Bitcoin?
The short answer is yes you can, but it depends on you and your potential for risk. Before investing in any cryptocurrency you should first observe and learn the various types of ways you can invest in Bitcoin. There are various strategies that professional investors use to minimize risk and increase their returns but that experience takes a lot of time and money in trial and error. Investing in Bitcoin can seem complicated, but in reality it is not. Buying Bitcoin has gotten easier and easier with passing of time since 2009 until today. The exchanges and wallets dealing with bitcoin have grown as well in their notoriety and even trust.
The simplest way you can invest in Bitcoin is by buying the bitcoin or a fraction of a bitcoin as it is so much more expensive today for a single piece. You can use various trading apps such as Binance or Coinbase to simply deposit cash in your account with them and then purchase the bitcoin value your cash can buy in a few simple clicks. In most cases, you’ll need to provide personal information to set up an account, then deposit money you’ll use to purchase bitcoins. At the purchase of bitcoin on those apps you will be setup with your very own cryptocurrency online wallet where all your cryptocurrency will reside.
Your Own Cryptocurrency Wallet or Bitcoin Wallet
It is recommended that you have your own personal cryptocurrency wallet outside of the exchange account to keep your gains even more safe. This wallet can also be used to pay for stuff and there are even ATM’s where you can buy bitcoin or exchange fiat money from. As of late, Bitcoin ATMs were requiring government issued ID’s so always keep your ID on your possession if you use this ATM’s.
Now that you have a Cryptocurrency wallet you can choose an exchange you know it’s best in your case
Signing up for a cryptocurrency exchange will allow you to buy, sell, and hold bitcoin as well as any other cryptocurrency they offer. Best way to do this is if the exchange allows you to also withdrawal their cryptocurrency to your own personal wallet for a safer keep.
Unfortunately there still are many exchanges and brokerage platforms that do not allow transferring your cryptocurrency to your own wallet and you have to rely on them to keep your coins safe. But if actually you just want to day trade or swing trade bitcoin or crypto in general you may not care about having your own crypto wallet.
Most respectable and secure exchanges require some documents from you before they allow any trading of Cryptocurrency from your part. These can be for example your driver’s license, social security number SSN, bank statements with source of funds and phone number verification. Normally you can just take photos or screenshots of these and send them using their app. This process is similar with the one you normally use when setting up a regular brokerage account.
Second thing is to connect your Cryptocurrency Exchange to your Fiat payment option available
Bitcoin is legal in the US but there are still some countries out there that banned cryptocurrency or just bitcoin or are in the process of blocking the use of crypto. It is a good idea to check before attempting to make deposits from your bank account to any cryptocurrency trading broker. There are regulation set by each government and in some cases buying crypto can even be illegal. Make sure that your bank allows deposits at your chosen exchange and that your country or union allows you to own cryptocurrency.
There are also quite a few fees charged fo deposits via a bank account, debit, or even credit cards. Always do your diligent research whenever you are planning a new investment and you will be able to choose the payment option that works best for your case.
Next thing to do now is to place your bitcoin order
There are various features available on crypto trading apps similar with what stock apps have to offer. The basic features are offered by almost all crypto exchanges. These offer both market and limit orders and some offer even stop-loss orders, stop-limit, and take-profit limit orders. There are many other types of orders exchanges offer and you will have to document yourself in each case at here is where things get much more complicated.
Last thing to do if you can is to Store your Bitcoin in your own personal cryptocurrency wallet
Digital assets like Bitcoin should be a lot more secure if you store them in your personal online wallets designed especially for this. Cryptocurrency wallets come with a saucerization feature linked to your own encrypted and private digital key. Keeping your bitcoin or any other cryptocurrency outside your trading exchange provider is the only way you can keep control over your cryptocurrency funds. You can avoid the risk of your exchange getting bankrupt or even hacked and losing your funds by storing safely into your personal crypto wallet all your cryptocurrency assets and even cash gained from trades.
Tired of the Cryptocurrency volatility and want to invest in stocks instead?
Well if you decide to try on stocks but most of your assets are bitcoin or cryptocurrency of any kind you are thinking how can you invest in stock with all that crypto buying power you have. It is not an usual offering for exchanges to let you directly buy stocks with bitcoin. As a matter of fact any cryptocurrency has to be exchanged to fiat money before you can use it in stock investing. Nevertheless some brokerages have the option to buy stock with bitcoin but they are rare. After a lot of searching online we have come across just a few brokerages that facilitate Bitcoin purchases of stocks. We will not name these so we don’t advertise them for free but a simple search online should get you where you want to be.
We have noticed that they also offer Bitcoin investment in commodities and forex. One brokerage we found was trying to give you the option to buy stock with bitcoin but not entirely. You could just use bitcoin as a collateral fund on your margin but they main investment fund you would have to have it in cash or fiat money. Buying stocks is a simple process across any trading platform. In the ones offering crypto to stock trading simply add or purchase bitcoin through your trading account and then choose the stock you wish to buy and the amount of bitcoin you want to invest. it works the same as with fiat money but it is bitcoin instead.
How to Buy Stock with bitcoin in the most simple way?
Actually what the broker is doing is converting your bitcoin in cash behind the scenes at the current valuation minus conversion fees and investing that cash in your desired stock. This is why i think the question is funny as you can invest your bitcoin in stock on any broker you wish if you have an account with them. You just need to convert your bitcoin or other cryptocurrency in fiat money first and that cash resulted invest it in any stock of your choosing. You don’t need to see exactly bitcoin for stocks on your trading receipt. And it would be double risky to have 2 volatile assets on the line in the same investment. First is the cryptocurrency asset that is very volatile and second is your stock you bought.
One may argue that fiat money is also volatile but cryptocurrency like bitcoin outshines that volatility from up far.
What else can do with Bitcoin today?
You can use Bitcoin in at least 4 ways right now:
- To buy goods and services with your bitcoin. There are many vendors online and offline around the world that already accept bitcoin payment as payment method.
- You can buy Bitcoin from any Bitcoin exchange and hold it for a better price in the future.
- After you buy them and hold for a long time until you see the price has increased considerably you can sell it for a nice profit.
- Mining bitcoin – You can earn bitcoins through a mining process. There are a lot of mining opportunities for bitcoin and they take time and an initial investment to get going. Some people that started bitcoin mining as a hobby a few years back are now holding so much bitcoin that they can be considered rich and even better. Some can be considered retired as they mined so much bitcoin that they can gain a fortune just by selling their cryptocurrency wallet assets.