How do I invest in bitcoin? The problem with most explanations of bitcoin is they quickly get bogged down in the technical details. Our goal is to make bitcoin accessible to all investors, so you can make great investing decisions and become healthy, wealthy, and wise. None of these analogies are perfect, but they will be useful in explaining this new world of investing.
Bitcoin is like gold. Gold is a store of value: Unlike gold, however, bitcoin is digital. If you put your savings into gold, it would be difficult to smuggle gold bars in your pants. Bitcoin is far more volatile than gold, however. This is due to the wild speculation on the future of bitcoin, and New Finance in general. In time, these assets will stabilize. Bitcoin is like a stock. Investors buy bitcoin in the hopes that it will increase in value, like a traditional security.
Like stock, bitcoin is traded 24 hours a day, and you can see its value in real time using sites like CoinMarketCap. Bitcoin does not entitle you to ownership in a company. You do not receive dividends. Well, you own bitcoin.