Given the state of the cryptocurrency market right now, it makes sense to be wary of making an investment in Bitcoin in 2023. The enormous FTX scandal’s aftermath has made the issue worse.
But widespread use of cryptocurrencies and the underlying blockchain technology didn’t occur until 2023. According to projections, global spending on blockchain technology would rise from USD 6.6 billion in 2021 to USD 19 billion in 2024. You should keep investing in Bitcoin as one of your top financial objectives in 2023.
The manual is broken into two parts. You’ll discover 5 strategies to invest in bitcoin in 2023 in the first section. Five locations where you can use Bitcoin as payment will be covered in the second part.
Here are the top five BTC investment strategies for 2023:
1. Cryptocurrency exchanges
The most popular way to purchase Bitcoin is through cryptocurrency exchanges. The most of us are already familiar with the top cryptocurrency exchanges, such as Coinbase, Binance, and Crypto.com.
In essence, cryptocurrency exchanges are sizable marketplaces for cryptocurrencies. The cryptocurrency exchanges offer 0.5 BTC, for example, without requiring you to find a seller. The most practical choice for retail cryptocurrency investors is exchanges because of how simple it is to purchase cryptocurrencies through them.
Some conventional stockbrokers, including Robinhood and eToro, let their customers purchase Bitcoin directly from their websites. Comparing cryptocurrency exchanges like Binance to stockbrokers like Robinhood is not appropriate.
While cryptocurrency markets are platforms that only deal with cryptocurrencies, stockbrokers are more traditional financial organizations.
You must open an account with the traditional stockbroker and make a deposit before you can buy bitcoin from them. You will be able to buy Bitcoin directly from the stockbroker once the funds are in your account.
Purchasing any other asset from a conventional stockbroker follows a similar procedure. For security concerns, some cryptocurrency investors prefer stockbrokers to crypto exchanges, yet stockbrokers can charge more than top crypto exchanges.
3. Fintech Apps
The fact that fintech apps don’t deal only in cryptocurrencies sets them apart from bitcoin exchanges. Instead of signing up for significant crypto exchanges like Binance, you might use MoonPay to purchase Bitcoin using a credit card. Popular programs like PayPal and Venmo also let you purchase Bitcoin.
We can’t easily group the various sorts of fintech apps that deal with cryptocurrency into a single category because they are so diverse. Some platforms enable cryptocurrency payments, while others let you purchase and store Bitcoin directly on the platform. With so many fintech and financial organizations offering the possibility for retail users to purchase Bitcoin, it’s simple to become confused.
Choose fintech apps if you believe they will better fit your needs than cryptocurrency exchanges.
4. Peer-to-peer exchanges
The most basic method of purchasing Bitcoin in 2023 is peer-to-peer. You can buy Bitcoin directly from someone you know who wants to sell it if you want to buy it. You will receive the acquired BTC in your wallet, but you must manually transfer funds to the seller.
Peer-to-peer transactions are simple and quick, but they are frequently hazardous. Think about buying Bitcoin from a stranger online, and then that individual vanishes with your cash. Peer-to-peer Bitcoin transactions are unfortunately frequently fraudulent, therefore you should avoid using this method unless you know the vendor personally.
Peer-to-peer BTC trading and buying involves risk, thus you should exercise caution at all times.
5. Invest in businesses with a lot of exposure to bitcoin
You indirectly invest in Bitcoin when you purchase stock in businesses like MicroStrategy Inc., Marathon Digital Holdings, or even Tesla. The idea is comparable to buying stock in gold mining firms as opposed to actual gold.
How does it function? We anticipate that if the price of Bitcoin rises, so will the share values of these businesses. On the other hand, you are somewhat protected against any significant decline in the price of Bitcoin. For some people, especially if investing in cryptocurrencies is a source of passive income for them, this risk-mitigation feature makes investing in companies with Bitcoin holdings a viable option.