Bitcoin investing is all the rage, but how does a novice get started?
What Exactly Is A Bitcoin Investment Site?
A Bitcoin investment site is a website that enables users to buy and hold bitcoins for an extended period with the sole purpose of accumulating wealth. On these platforms, investors can purchase BTC with either fiat currency or another cryptocurrency, such as Ether (ETH) for BTC, Bitcoin Cash (BCH) for BTC, or BTC for Litecoin (LTC), among others. These investment sites may also take the form of a lending platform, where customers can profit from lending their BTC to other users.
Is It Necessary To Own Bitcoin To Invest Already?
Alternatively, do you transfer funds from your bank account to a third party and convert them to Bitcoin? How does that appear?
We’ll address each of these points and recommend 5 of the best cryptocurrency exchanges and platforms for purchasing Bitcoin and other cryptocurrencies.
We’ll refer to Bitcoin as BTC, which is the symbol for the cryptocurrency on exchanges and trading platforms.
If your primary goal with crypto is to earn a high rate of return, you may want to consider a crypto savings account. These accounts pay up to 12%, but risks are involved (just like regular crypto investing).
The Best Exchanges and Investing Platforms for Cryptocurrencies
The following is our ranking of the top five cryptocurrency exchanges and investment or trading platforms. The College Investor receives compensation from the companies that advertise on this site. This compensation may affect how and where products appear on this site. The College Investor does not include all cryptocurrency exchanges or all cryptocurrency investment opportunities available in the market.
Coinbase is by far the most popular and one of the best cryptocurrency exchanges because it allows for direct USD investment. You can currently purchase Bitcoin, Ethereum, Litecoin, and over 30 other coins and tokens on the platform. Additionally, you can earn interest on your USDT and token rewards by participating in various activities.
2. BitTrust Individual Retirement Account
BitTrust IRA is a little different than the other platforms on this list in that it connects consumers with qualified custodians, digital wallets, and cryptocurrency exchanges.
This provides investors with the benefit of tax-free and tax-deferred gains in their accounts.
BitTrust IRA is one rious cryptocurrencies as part of a diversified retirof the first companies to allow clients to invest in vaement portfolio.
Binance, one of the most popular cryptocurrency exchange platforms, has approximately 313,000 daily users, making it the second most popular exchange after Coinbase.
Binance operates on a centralized model, but it recently launched Binance Decentralized Exchange, or DEX, which combines the best features of both types of exchange platforms.
Binance caters to both beginners and professionals, offering over 400 coins for exchange. Binance is one of the first exchanges to receive new coins.
Voyager is a well-known platform for investing in cryptocurrencies because it was one of the first public exchanges. Voyager accepts most major cryptocurrencies, has a strong community, and offers competitive interest rates on assets. They are app-based and provide a commission-free trading environment.
5. The Kraken
Kraken is one of the largest cryptocurrency exchange platforms in terms of volume and liquidity; it is a US-based exchange that offers a sophisticated trading platform in addition to margin trading and over-the-counter (OTC) options.