How To Invest In Bitcoin Without LOSING Money (Less Risk, More Profit)

Experts say that buying Bitcoin is one of the best strategies to invest in this year. Although cryptocurrencies will likely help you double your money in a short time, you should know that they are also among the most risky investments. Therefore, we will show you a good way to invest in Bitcoin, controlling your risk and improving your profits.

What is Bitcoin?

If you want to invest in Bitcoin, you need to start by understanding what it is and why its value is expected to rise in the coming years. After all, this will be the foundation for your investment.

Bitcoin is the first decentralized digital currency. It is digital money, with the symbol BTC. Instead of being made of paper, it is made of a “hash” or a random string of numbers and characters.

It has no physical backup and can be sent electronically from one user to another, anywhere in the world. Because there are a limited number of coins, there is a shortage, so the value is constantly fluctuating.

Bitcoin is not controlled by a single person or a single government. It is managed by a decentralized network of computers around the world that verify all transactions.

How to invest in Bitcoin WITHOUT LOSING money

Every investment involves risk, and Bitcoin is no exception. It is an unprecedented digital currency, so before investing in Bitcoin you must understand that your investment will have much more volatility than other more common investments, such as stocks, bonds, and mutual funds.

If you want to be successful investing in Bitcoin, you need to be comfortable seeing your investment go up 5% or more in a single day, only to drop the next day.

The key to investing in Bitcoin without losing money: have a long-term strategy and not invest more than 15% of your investment portfolio in this currency.

Consult our investment portfolio model to find out where to invest the other 85% of your capital.

Bitcoin indeed has the potential to make you a millionaire, but you won’t make it if you don’t control your risk. If you are new to the world of investing, we recommend taking the Bitcoin investing course before investing your money.

Now that we have a balanced investment strategy, let’s see how to start investing in Bitcoin.

What do you need to invest in Bitcoin?

The recommended companies below make investing in Bitcoin very easy. You just open your account, transfer the funds and they take care of converting your local currency into Bitcoin.

To buy Bitcoin you will need:

1. a personal identification
2. Your bank account number or debit/credit card
3. Register a digital Bitcoin wallet or a physical wallet

When investing in Bitcoin remember that your money will depend on your Internet security. We recommend using a secure virtual connection with a VPN like NordVPN when investing in Bitcoin.

You should also not check your Bitcoin wallet on public Wi-Fi networks, such as in a coffee shop, in a hotel room, or using other public Internet connections.

How much money do you need to invest in Bitcoin?

One advantage of investing in this cryptocurrency is that you can buy fractions of Bitcoin.

This means that you do not need to have a minimum amount to buy BTC and you can start investing with any amount.

In addition, by using the recommended companies to buy Bitcoin you will not have to pay buying or selling commissions, which improves your returns and allows you to invest as many times as you want.

We recommend starting to invest in Bitcoin with $100 (or the equivalent in your local currency). In this way you can qualify for a welcome bonus when buying Bitcoin, using the exchange houses that we will recommend later.

How much money can you earn with Bitcoin?

You can earn a good amount of money by investing in Bitcoin (BTC), but a lot will depend on the capital you have to invest and the conditions of the cryptocurrency market.

The return on investments in cryptocurrencies such as Bitcoin or Ethereum can be between 10% to 200% per day. Everything will depend on your investment strategy.

However, while BTC is an attractive investment option, the market is highly volatile. If you are not careful, you could end up losing all your money.

This is why it is important to NEVER invest more than you could afford to lose.

How to buy Bitcoin for the first time

To start investing in Bitcoin, follow these steps:

1. Decide where to buy Bitcoin. Exchange houses like Coinbase, Robinhood, or Square Cash make investing in Bitcoin easy. Some of these companies PAY YOU to start investing.
2. Where will you keep your Bitcoins? You can keep them in a digital wallet or a physical wallet.
3. Buy your Bitcoins. We show you where and how to do it.
4. Manage your investment. Determine your long-term plan and keep control of your earnings.
5. Reliable sites where you can buy Bitcoin

There are different ways to buy Bitcoin: through exchange houses, investment brokers, and other less common ways.

You can buy fractions of Bitcoin using cryptocurrency exchanges. Some give you a welcome bonus when you start investing in Bitcoin and usually charge a small percentage to process your purchase.

1. Square Cash 

Square Cash is the easiest way to start investing in Bitcoin. This is a money transfer app that includes a very fast feature to buy Bitcoin.

The only detail: it is only open to people who live in the United States. However, if you live in the USA, you can start buying Bitcoin in just minutes.

To start investing, all you have to do is register with Cash App and complete a short verification. After adding your bank information, you will be able to transfer the funds and they will deposit your Bitcoins into your own digital wallet.

Best of all: Cash will pay you to sign up and start investing in Bitcoins. Sign up using the referral code VMVTBJL and they will give you $5 on your first transfer.

2. Coinbase 

This is the most popular option for Bitcoin buyers. Coinbase makes investing in Bitcoin easy: just link your bank account, transfer the funds, and you can convert them to BTC.

They support a large number of banks and if your bank is not on the list you can always open an Internet bank account in the United States.

Apart from investing in Bitcoin, they also allow you to invest in other cryptocurrencies such as Ethereum and Litecoin.

For each transaction, they charge a percentage of around 0.5%, plus a commission. Typically you will not pay more than 1.5% to convert your money to Bitcoin.

3. Robinhood 

We like Robinhood because it is the only broker that allows you to invest in Bitcoin without paying commissions. Also, the company is part of Google so it has a great team of developers and enjoys an excellent reputation.

If you want to invest in Bitcoin, RobinHood offers an easier way to get started. It also allows you to invest in cryptocurrencies (such as Bitcoin and Ethereum).

Best of all: it’s completely FREE. You will not be charged transaction fees when selling or buying Bitcoin, company shares, and mutual funds with this application.

In addition, they will give you your first company share when you start investing with them.

The only downside to investing in Bitcoin with this broker is that the options to spend your Bitcoins are limited. You will have to convert your BTC to dollars if you want to withdraw them and collect your earnings.

4. Binance 

Binance is the world’s largest Bitcoin exchange. This exchange house charges a 0.1% commission on all cryptocurrency operations and a withdrawal commission.

Binance recently added the option to buy Bitcoin with a credit card for an additional fee. However, we do not recommend buying Bitcoins with a credit card due to the high risk involved.

5. Local Bitcoins 

LocalBitcoins allows you to buy and sell other people’s Bitcoins. This platform allows you to negotiate the price that you will pay directly. Although it is a good place to buy Bitcoins, the prices are generally higher on this platform.

It is a site with good security measures for the buyer, but remember that anyone can sell Bitcoins on this site, so there is much more room for scammers.

GeminiThis US-based crypto exchange trades bitcoin, ether, bitcoin cash, litecoin, and zcash.

Transaction fees range from $0.99 to 1.49% of your order, depending on the size of the purchase or sale, plus a fee of approximately 0.5%.

Other ways to buy or invest in bitcoin

There are other less recommended ways to get Bitcoin. Although these allow you to start selling in Bitcoin, they have some disadvantages:

• Bitcoin ATMs – These work like regular ATMs, but allow you to buy and sell bitcoin. They usually charge high commissions for buying and selling Bitcoin.
• Bitcoin Futures – Some companies offer the ability to invest in bitcoin futures, but this should only be done if you have a high level of experience in the investment industry. It is not for newbies.
• Bitcoin Mutual Funds – You can buy Bitcoin Mutual Funds, but most often charge high fees. By buying these funds you never get Bitcoin in your wallet, so you lose control over your investment.

Deciding how to store your Bitcoins

Bitcoins can be stored in two types of wallets: a digital wallet or a physical wallet.

With a digital wallet, transactions are generally faster, while a physical wallet offers additional security measures that help keep your Bitcoins safe, but also take longer.

Bitcoin digital wallet

With a digital wallet, your Bitcoin will be stored on the Internet. Although the recommended companies have implemented many security measures, it is important to always access these wallets through a secure Internet connection.

A digital wallet makes receiving Bitcoin much easier.

Companies that include a free digital wallet:

1. Square Cash
2. Coinbase 
3. Binance 

Physical Bitcoin Wallet

A physical Bitcoin wallet is a small encrypted device that allows you to download and carry all your bitcoins. They are not free and their cost is very reasonable. Physical wallets are considered much more secure than digital wallets.

Some recommended physical wallets:

1. Trezor Model T – Offers small wallets with a high level of security.
2. Ledger Nano: It looks like a USB memory and is considered one of the most secure Bitcoin wallets on the market.

By having a physical wallet for your Bitcoins, you will protect your cryptocurrencies by not storing them on the Internet.

Make your purchase

After deciding on the best Bitcoin wallet for you, the last step is the easiest: deciding how much Bitcoin you want to buy.

Start investing! Choose one of the trusted companies to buy Bitcoin and make your first cryptocurrency purchase.

The Bitcoin price fluctuates throughout the day, but the easiest way to track the current Bitcoin price is by visiting Coinbase.

Remember that Bitcoin can be bought and sold for fractional shares, so you can start investing with the amount you want.

If you have specific questions about how to buy Bitcoin or have not been able to buy them, leave us a comment and we will do our best to help you.

You can also use our country-specific guides when buying Bitcoin at:

• Any country
• Spain
• Argentina
• Colombia
• Peru

 Manage your investment

Now that you own Bitcoin, how can you make sure that your investment grows? Several strategies work to invest in Bitcoin :

Buy and hold

Our favorite method and the easiest way to invest in Bitcoin. You simply buy and keep your coins in a safe place with the expectation that their value will continue to grow.

If you believe in the long-term prosperity of Bitcoin, this is the investment method for you.

Remember that the volatility in cryptocurrencies is very high, so it is likely that you will take advantage of the fall in the price of Bitcoin as an investment opportunity to buy more coins at a reduced price.

Historically, long-term investments offer the best return, as no one can accurately predict what the price of Bitcoin will be in the short term. However, a look at Bitcoin’s price history shows that the returns over the years have been astronomical.

Day Trading

Bitcoin Day Trading consists of taking advantage of the rises and falls in the price of this cryptocurrency to obtain large profits. Experts use technical analysis to predict movements in the price of Bitcoin.

Although you can indeed make money this way, day trading generally requires an advanced level of experience, so we do not recommend this method of investing in Bitcoin for beginners.

Bet against Bitcoin

Don’t you see a future in Bitcoin? You can still make money by betting against this cryptocurrency.

This is considered the riskiest way to invest in Bitcoin, as the potential for LOSS is virtually infinite as a spike in the price of Bitcoin can cause huge losses.

Bitcoin short selling ( also known as a short sale ) involves borrowing Bitcoin at a certain price (say $100), and then selling it to someone else at the same price.

So if the price of Bitcoin goes down (say to $50), you can buy it back at the lower price and then pay it back to your lender. The price difference represents your profit.

You can bet against Bitcoin on a platform like Bitfinex, but you must understand that this way of investing is extremely risky and in our opinion, we do NOT consider it a reliable method.

Conclusion

Investing in Bitcoin can result in very good profits and cryptocurrencies should be part of every investment portfolio. Although investing in BTC is an attractive investment option, the market is also very volatile.

We recommend that you not invest more than 15% of your capital in Bitcoin. It is important to have a clear strategy. If you don’t have it, you could lose all your money. And remember: never invest more than you can lose.

If you have questions about how to start investing in Bitcoin, leave us a comment with your questions and we will do our best to help you.