How to Invest in Bitcoin in 2017: A Beginner’s Guide

I understand investing in bitcoins and other cryptocurrencies in two main ways:

– Bitcoin holders: these are people who buy bitcoins and hold that investment over time, waiting for the price to rise. They usually hold for several years and are not concerned with short-term market fluctuations.

They tend to be less focused on speculation and often have limited experience in stock or forex markets. They believe in the currency’s long-term use and expect demand — and therefore price — to increase, especially given Bitcoin’s capped supply of 21 million coins.

For long-term investors who plan to hold, platforms like Coinbase provide everything needed. Purchase and sale fees around 1.5% are applied instantly and are not a major drawback for long-term positions.

– Bitcoin traders: these traders buy the dips to get coins cheaply and sell when prices rise. This approach requires extensive knowledge and more dedication to profit in the short term.

These investors treat trading like a job. They often make multiple trades per day, deploy significant capital, use technical analysis and stay up to date with news.

They use trading platforms such as Poloniex or Bitfinex, which provide necessary tools and relatively low fees — an important factor when buying and selling multiple times a day.

One of the most important lessons, and one that took me time to learn, is patience. Do not buy impulsively when the price rises out of fear of missing out, and do not panic-sell when the price falls believing you will lose everything. Regardless of your chosen approach to investing in bitcoin, it is essential to be informed and make well-founded decisions.

Analysis and patience will help you make money. Otherwise, you risk losing it.

Our step-by-step guide to investing in bitcoin

Quick steps to invest in bitcoins

Decide whether you want to buy bitcoins on an exchange or trade via a broker (CFDs).
Register on eToro if you plan to trade Bitcoin CFDs.
Register on Coinbase if you want to buy Bitcoin on an exchange.
Choose your preferred payment method.
Deposit funds following the platform’s instructions.
Monitor news and market trends to find a suitable entry point.
Place an order to buy Bitcoin.
Continue reading this guide for more strategies and details.

Where to invest in bitcoins

There are different platforms and exchanges where you can buy bitcoins for investment. Each has notable differences, so below is a concise overview to help you choose the best option for your needs:

Investing in bitcoin with eToro

eToro’s buying model is different because it uses CFDs, but beyond that, it offers advantages for users who lack experience determining buy or sell prices.

eToro allows you to copy portfolios of successful users so you can follow an investor with a strong track record while the platform mirrors their trades automatically. Remember, every investment carries risk, so follow recommendations carefully.

Another advantage of this platform is that you can profit both when Bitcoin rises and when it falls.

– Invitation to eToro

Investing in bitcoin using Changelly

Changelly is a relatively new service that launched in 2018 and enables quick, simple swaps between Bitcoin and altcoins. Changelly is not a traditional exchange; it aggregates liquidity via APIs from other sites to perform exchanges. It is a fast service that requires you to have a wallet outside Changelly to receive funds. You can pay Changelly with cryptocurrency or by using a credit or debit card.

It is an easy alternative for users uncomfortable with full-featured trading platforms.
Registration is straightforward and often does not require submitting personal information.
It opens access for those who want to acquire newer cryptocurrencies using a debit or credit card.
Changelly should be used alongside a personal wallet or other exchanges where you control your crypto funds.

Investing in bitcoin with CEX.io

CEX.io is a cryptocurrency exchange founded in 2013. Initially a cloud mining provider, it later evolved into a full exchange. Today, more than one million users rely on CEX.io to buy and trade BTC and altcoins. Although less prominent than some competitors, it remains a solid option.

Global availability: CEX.io offers services in about 99% of countries worldwide.
Leverage: the platform provides leverage options such as 1:2 and 1:3 for crypto trading and includes negative balance protection for those trades.
Security: CEX.io is among exchanges that implement anti-fraud protections and refund policies, and it is registered with FinCEN.

How to invest in bitcoins using Coinbase

Coinbase is a secure platform I’ve used for months. It’s visual and intuitive and makes buying bitcoins very easy, along with other popular cryptocurrencies like Ethereum and Litecoin.

To buy coins you first deposit funds via credit/debit card (instant purchases) or bank transfer (1–2 business days). It is not ideal for high-frequency trading due to a 1.5% fee, but it is well-suited for medium- to long-term holding.

Coinbase provides an online wallet accessible from your browser and a mobile app. You can always transfer your cryptocurrencies to a wallet that you control exclusively.

Invest in bitcoin with XCoins

XCoins is a California-based platform that allows obtaining bitcoin via “secured loans.” It is not a traditional exchange but a P2P lending marketplace that connects lenders and borrowers of bitcoin. The loan model aims to ensure instant transactions and broaden accepted payment methods.

Instant access to bitcoins.
Easy to use: register, make a payment to buy bitcoins, and receive them immediately.
Secured loan model: this speeds purchases and supports more payment methods (e.g., PayPal, credit/debit cards). Borrowers can convert bitcoins back to fiat when needed.

Investors to follow

You should never buy or sell solely because someone recommends it. It’s better to analyze the market and perform your own technical analysis. However, if you’re new, following experienced traders can provide useful insights and ideas.

#bitcoin pretty much bottom area here pic.twitter.com/spMChB8JkG

— Saj le Great (@sajmathieu) 25 July 2017

El rango es 1900-2300 de nuevo . Aprovechen q puede ser el último a este rango

— UASF BIP 148 Gonzo (@gonzoucab) 25 July 2017

Investing in bitcoin in your country

Each country has its own rules and options for buying and investing in bitcoin. Below is a brief overview of major countries in the Spanish-speaking world.

Investing in bitcoin from Spain

Spain is one of the most receptive countries for bitcoin investment. Buying and selling is straightforward through exchanges, brokers or a large network of bitcoin ATMs. Mining is generally less profitable due to taxes and electricity costs, so buying and trading tends to be more practical.

Investing in bitcoin in Colombia

In Colombia, acquiring bitcoin is also feasible. The main difference is a lack of exchanges offering direct COP trading pairs; therefore, CFDs are a practical route for many. To own actual bitcoins, platforms like LocalBitcoins enable transactions in local currency. Using foreign exchanges may involve currency conversion costs (COP/USD).

How to invest in bitcoin in Chile

Chile is one of Latin America’s larger crypto markets and supports the methods described above. For CFDs, regulated brokers like eToro and 24Option are recommended. If you want to buy with Chilean pesos, local platforms such as Chilebit and Chilebitcoin, as well as LocalBitcoins, are available.

Investing in bitcoin in Mexico

Mexico has been an early adopter. You can get bitcoins via exchanges or brokers. Local options include Bitso, Volabit and LocalBitcoins; brokers like eToro and 24Option support CFD trading. International platforms may charge in USD, so expect currency conversion fees.

Investing in bitcoins in Argentina

Argentina has an active crypto scene, including local futures markets. You can trade via CFDs or buy on exchanges such as Ripio, SatoshiTango and LocalBitcoins. Using foreign platforms may incur ARS/USD conversion charges.

Investing in bitcoin from Peru

In Peru the process mirrors other countries: CFDs through recommended brokers are straightforward, with the main extra cost being currency conversion (PEN/USD). Local exchanges are limited, so LocalBitcoins is often used.

Investing in Bitcoin in Venezuela

Venezuela faces many limitations for international platforms. Citizens often cannot use local currency for foreign transactions, so unless you have a foreign payment method you cannot easily use CFDs on recommended brokers. LocalBitcoins provides a practical bridge for those who only have bolívares and need protection from hyperinflation; you can store bitcoins or transfer them to another exchange for trading.

Bitcoin news

Bitcoin has been regulated in many countries, and regulatory processes continue to evolve.
On August 1, a software update led to a blockchain hard fork and the creation of the new cryptocurrency Bitcoin Cash. It’s important to understand that coins created by hard forks are distinct from the original Bitcoin and should not be confused with it.
Events such as futures market listings have driven significant price rallies at times, with large percentage gains during certain periods.
More investment channels for bitcoin continue to appear. The introduction of bitcoin futures on major exchanges has the potential to expand demand and influence price dynamics.

Terms

“hodling” is a term used to describe people who hold their bitcoin investments.
noob: a label often applied to new investors who lack experience.
FOMO: the fear of missing out when a coin rises and you feel compelled to enter the market.