How to Get Bitcoins

With a firm understanding of what Bitcoin is and how bitcoin wallets work, chances are that you’re interested in getting some of the digital currency for yourself. The question is: How can you get bitcoins?

Based on an understanding that bitcoins originally come from mining processes, you might think this is the best way to get some for yourself. Sadly this has become increasingly difficult as Bitcoin has grown in popularity. As more powerful, mining-specific devices have been introduced and the number of bitcoins out there to be mined has fallen, it is becoming increasingly unrealistic for average individuals to participate.

Another way to get bitcoins is to earn them like you would any other currency: by providing goods or services in exchange for the digital currency. There are websites that list offers for jobs that pay in bitcoins, rather than traditional currency. You can also ask your current employer to pay you in bitcoins, which can be a good option for international freelancers in particular.

However, there is no shortage of options for buying bitcoins. Purchasing options include cash, the use of credit and debit cards through online services, bank wire transfers, the use of PayPal or other digital payment services, or the exchange of other digital currencies for bitcoin. In some urban centers, it is possible to buy bitcoins from a bitcoin ATM, or you can even opt for a face-to-face exchange to reduce your monetary footprint. Those interested in buying bitcoins should do some research for the best options available in their locale, as these services tend to differ from country to country.

Additionally, though not yet approved, the idea of investment trusts specifically designed to allow people to purchase shares in the digital currency without having to buy or store bitcoins themselves is emerging. While the Bitcoin Investment Trust is an option that’s already up and running, Bitcoin Superfund and Winklevoss Bitcoin ETF are proposed alternatives awaiting approval as well.

Of course, the same best practices for safety and trust when sending money in exchange for anything also apply in the pursuit of bitcoins. Because Bitcoin services are not regulated in the same way as traditional currencies, it is vital to find trustworthy vendors and recommended that you obtain their real-world identities and confirm sufficient trust is in place before providing any funds in exchange for bitcoins.

While there are plenty of avenues available for procuring bitcoins, walking down them can be treacherous and more complicated than it might seem, and it will depend greatly on where in the world you live. However, as the digital currency gains mainstream popularity and more purchasing options are added to the current roster, the process will only become easier.

Is Bitcoin a Good Investment?

Questions about the value of bitcoins as an investment will likely differ depending on who you ask.

Those with a vision of a fully-distributed future in which the lack of a centralized overseer becomes key to an asset’s value will tell you that, yes, bitcoins are poised to become only more valuable in the future. Others who put more value in the traditional trust afforded by banks and government institutions would likely steer you away from bitcoins as an investment.

While determining how “good” any investment will be is ultimately a guessing game, there are some tried and true ways to determine an asset’s worth. One of the simplest ways to think about bitcoin as an investment is to consider its rise against the U.S. dollar. Recently, bitcoin prices eclipsed $1,000 and have reached beyond $1,500. If you had invested in the digital currency when its worth was still hovering around $150 just a few years ago, or when it was first introduced in 2009 and worth nothing against the dollar, you would probably be convinced that it made for a good investment.

Furthermore, an underpinning concept behind Bitcoin is that there will only ever be 21,000,000 tokens, meaning that it may stay consistently valuable or increase in value relative to other types of currency which can be printed endlessly. Other reasons that the asset seems like a good investment include its growing popularity, network effects, security, immutability and status as the first ever in a growing world of digital currencies.

That being said, there is at least one significant argument for limiting bitcoins to a small portion of your portfolio at the most. Bitcoin is known for stark jumps in price, high peaks and deep valleys that would make it difficult to have confidence in the asset as a long-term money maker that can be depended on. Tying every dime you have to such a volatile asset would be imprudent. A good rule to follow is never to invest more than what you would be willing to lose