With so
much news recently about the cryptocurrency Bitcoin and its underlying
technology, blockchain, there are many people, who are wondering just how,
exactly, to buy Bitcoins.
Bitcoins
are available for purchase from exchanges or from other people selling them
through various marketplaces, both online and in person. In some countries,
local banks also carry them. The process can however be cumbersome and less
than convenient because many sellers of Bitcoin are hesitant to accept payments
by credit card or Paypal, due to worries that purchasers can easily just reverse
the charges.
This puts
the seller at risk because with Bitcoin being an often volatile, new and
unfamiliar commodity, it can be hard to prove to credit card companies or
Paypal that something of value actually changed hands.
One
simple way to invest in or buy
Bitcoins is via CFDs,
or contracts for a difference, which are derivatives based on the market-value
of Bitcoins or any other financial products, such as stocks or currencies.
Many of
the online retail trading and social trading platforms focused on forex and
stocks that have been launched in recent years are based on CFDs.
CFDs can
be purchased from a number of regulated trading platforms, and can be paid for
easily via credit card, Paypal or many other familiar methods.
Another
advantage of CFDs based on Bitcoins is that they can be traded. This is
especially valuable because of the always-changing value of this new
cryptocurrency. With CFDs, depending on
the platform, a buyer can often also invest as little as $50 in Bitcoins. This
allows newcomers to enter the world of Bitcoin and cryptocurrencies without
putting out a lot of money upfront.
Although
Bitcoin is often talked about in a futuristic way, and
the blockchain technology underlying it is based on a secure open ledger than
can be easily accessed, it can still be inconvenient for a new player to
actually acquire Bitcoins due to the limitations placed on purchasing them with
credit cards and services like Paypal.
That is
why CFDs are an increasingly
popular way for
investors to access Bitcoins, and growth in this direction is likely to
continue.
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