11 Reasons Why You Should Invest in Bitcoin (2023 Updated)

Interest in Bitcoin has surged over the last few years – everyone from governments to grandmothers are talking about it, however, there is still much uncertainty on how to actually invest in it and the reasons why people are doing so.

This article aims to help you understand why Bitcoin’s popularity has increased so much and how to do so using different investment strategies via trusted cryptocurrency platforms. It may seem intimidating to start getting involved with Bitcoin but it has become incredibly easy to gets started investing in cryptocurrency and you can get started very quickly.

This guide is going to discuss reasons why you should invest in Bitcoin, how to do it and what you need to watch out for to limit risk.

How to Invest in Bitcoin on our Recommended Platforms in our Step-by-Step Guide:

Investing in Bitcoin can seem like an intimidating task at first, but our recommended platform eToro has made investing in Bitcoin and other cryptocurrencies easier than ever! There is a great selection of cryptocurrencies to choose from and you can enjoy low fees.

How to Invest in Bitcoin on eToro (Step by Step)

Step 1: Sign up to eToro

Signing up to eToro is incredibly easy, click this link to create your account and fill in your details. You will just need to put in your name, username, e-mail, password and phone number. Accept the terms & conditions and click on start trading!

After signing upyou will be free to explore the platform’s various features. There is a watchlist to add all your favourite cryptocurrencies, a newsfeed to see different trader’s opinions and open trades and you’ll be free to explore all the different markets that eToro has to offer.

Before you start trading you’ll be asked some simple questions and required to upload some ID verification. The verification process with eToro is very quick and you should be fully verified within a couple hours. This will give you full access to the platform, enabling you to deposit, withdraw and trade your desired funds.

Step 2: Fund your account

Once your account is fully verified it’s time to fund your account. A huge advantage here is that you can deposit with various methods, including debit card, credit card and even PayPal! The minimum deposit, however, is $200.

Step 3: Buying Bitcoin

The third and final step can be completed within seconds! Click ‘Trade Markets’ on the side bar, choose ‘Crypto’ from the top of the search filter then you will see Bitcoin right at the top.

Click ‘Buy’ and this box will pop up. Set the amount you want to invest and then confirm. You will have now invested in the most exciting asset of our time, Bitcoin!

How to invest in Bitcoin on Crypto.com (Step by Step)

Step 1: Register for an Online Account

To buy Bitcoin through Crypto.com firstly you should visit Crypto.com exchange and click on the “Sign Up” button which you will find in the upper right corner of the website. After you click the button, a registration window will spring up where you must provide the required details. The personal details you must fill in include your name, birth, and nationality.

Plus, you should create a password, provide an email and confirm your registration by clicking on the “Create Account” button. A confirmation link will be sent to your email containing a One-Time password which you must use to verify your registration.

One more verification process is required through a mobile phone number. Fill in your mobile number in the appropriate window and wait for the SMS. When you get the verification code, fill in and click on the “Submit” button to verify your account. That’s all: you have successfully registered on the Crypto.com exchange. Still, if you want to use the platform to the advanced level, you will also be required to verify your ID and provide a photo of yourself.

Step 2: Download the DeFi Wallet and Connect it to Your Account

Connecting your exchange account to the DeFi wallet is an optional step but it’s recommended if you want to provide more secure storage for your coins. The Crypto.com DeFi Wallet app is available for both iOS and Android users, so you can download it in the Play Store or App Store. After downloading and installing it on your mobile phone, you must link it to your Crypto.com exchange account. For this, you must provide the email address of your exchange account.

Now when your DeFi Wallet app and your exchange account are connected you can create a wallet inside the app or deposit an existing one. In terms of security, the wallet will require creating a passcode. Plus, you are free to turn on extra security features, including the fingertip option, 2FA, and a 12-word recovery phrase which you can use to recover your account in case you forget your passcode.

Step 3: Fund Your Account

Of course, creating and verifying your account is not enough to start buying Bitcoin and you must also charge your account. The Crypto.com exchange supports multiple ways of depositing funds on your account, including credit and debit cards, bank transfers, ACH transfers, etc. While buying Bitcoin on Crypto.com you must consider that different trading and transaction fees are applied depending on the payment method and your credit card type.

You can buy Bitcoin with zero trading and transaction fees using an ACH transfer option, but you must pay a 2.99%-3.99% fee when making a transaction through a credit card. Also, the platform charges taker and maker fees and withdrawal fees which vary depending on the coin you want to withdraw. However, we should notice that Crypto.com charges relatively competitive fees compared to several other exchanges.

Step 4: Buy Bitcoin

The Crypto.com exchange has an attractively designed and easy-to-use platform where you can trade almost 180 cryptocurrencies through 20 fiat currencies. It’s an excellent platform for your portfolio diversification, as along with Bitcoin you can invest in several popular and not-so-popular crypto assets.

Plus, you will be able to stake several coins, access a marketplace of NFTs and several DeFi products. The only disadvantage is that you can’t swap between crypto pairs, but this function is available on the DeFi Wallet app.

To buy Bitcoin on Crypto.com, sign in to your account and click on the “Markets” section where you will find the cryptocurrencies available on the platform and some price and volume tracking charts. You will find the BTC/USDT pair on the top of the chart, so click on the “Trade” button next to it and more graphs will be available to analyze the market.

After making the final decision, on the right part of the platform fill in the amount of BTC you want to purchase (the minimum limit is $1), choose the way you want to trade (a market order or a limit order), and click on the “Buy BTC” button to finalize the order.

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Top 11 Reasons Why You Should Invest in Bitcoin?

We believe Bitcoin’s price will rise from its current value for a number of reasons. Markets work in cycles and the hype of 2021 has cooled off with the price correcting accordingly. When hype has reduced and the price has stabilised – that is when you need to start accumulating and investing, and that time happens to be now. That is just one reason why you should invest in Bitcoin, take a look below to see more solid arguments for getting yourself involved in the cryptocurrency market.

1. Buy Low Sell High – Ability to Profit from Low Prices in a Bear Market

Bitcoin has been the most exciting asset to invest in for decades, the profitable gains that are possible trading Bitcoin are second to none. There have been huge rises in the past and when we saw the highs of December 2017 many people would have rushed to buy anything below $10000.

Now Bitcoin is trading around $46000, and the price is low compared to its all-time-high so it makes sense to accumulate at a low price and sell at the highs (and above). The market works in cycles, and you can see from the above chart we have had a healthy correction – the new cycle is ready to start that could spark another parabolic movement.

2. Young Market and Tech – Plenty of Ways for Demand to Increase

Bitcoin’s potential huge gains are not the only thing making it such an exciting asset. The fact that both the technology and market are so young means there is so much room for improvement and therefore price growth. In the grand scheme of things, people investing now could still be seen as early investors, especially if the predictions of Bitcoin reaching $100,000 and above would come true.

Bitcoin is around 13 years old and the amount of work being done on blockchain is increasingly massively each year. Bitcoin developers are always at work and the code is being worked on non-stop to increase scalability, privacy and other impressive features. The potential growth for Bitcoin is unimaginable. The higher the market cap grows, the higher the prices rise due to more money circulating.

3. Increasingly High Adoption Rate – Only 1% of the World own Bitcoin

The adoption rate for Bitcoin is growing at an extremely impressive rate. In 2013 there were 1,789 merchants accepting Bitcoin. In December 2018 there were 14,346 venues globally accepting BTC, which is a massive 700% rise – indicating that adoption is growing constantly and will continue to do so throughout the years.

Basically, more and more people want to use digital currencies for their everyday purchases. Looking at the above infographic, we can see that countries experiencing issues with corruption, difficult monetary policies and hyperinflation (Venezuela) are adopting Bitcoin the fastest and rightly so. People are losing faith in their own country’s currencies and are warming up to cryptocurrencies. This would positively impact because more people using and buying Bitcoin increases demand, which will increase the price as the supply is capped.

4. The Launch of a Bitcoin ETF and Institutional Investors will Drive the Price Up

The potential of publicly trade bitcoin ETFs should not be ignored. An exchange-traded fund is an investment fund that follows the price of an underlying asset (such as gold) and is traded on exchanges. Since regulated bitcoin futures contracts are now on the CME and CBOE, the chances of an approved ETF are improving. ETFs would legitimise BTC further and would attract all kinds of investors, especially institutional investors. It would also remove barriers for the masses to invest. In the early 2000s, the ETF market opened for gold and the price rallied for years, the same could happen for Bitcoin. As an approved ETF would remove barriers to entry, a huge spike increase would be likely.

5. Own Your Money – Decentralisation

Start owning your money! Bitcoin is decentralised, meaning you own the coins and transactions. Banks and other third parties are not involved and you have access to deposit and withdraw money 24 hours a day, 7 days a week. A great example of where decentralised money would be extremely effective was during the Greek financial crisis, where citizens were not even able to withdraw their own cash due to a government lock down to pay off debts. Bitcoin is available to withdraw whenever you want, no matter the situation of the government. We are in a time where people are becoming increasingly worried about their money, and decentralised forms of payment are becoming more desirable which would drive the price up.

6. Bitcoin Supply is Limited – The Price can only increase with Demand

If every millionaire in the world wanted one Bitcoin, it would not be possible! There are only 21million Bitcoins available in total, and 17.6million have already been mined. New research also claims there could be up to 4million Bitcoins already lost, decreasing the supply even further than it already is. It is similar with gold, gold must be mined out the ground and Bitcoin must be mined via complex algorithms. Demand will increase with the years to come, and with that value increases also.

7. Sending Money Overseas Made Easy

International bank transfers are still very difficult to do, they take much longer than national transactions and the fees are much more expensive. Bitcoin removes the middle man and allows you to send payments anywhere in the world instantly for low fees. It allows you more freedom and privacy when handling your money, which is crucial these days. Using standard bank accounts are somewhat old fashioned, so it’s worth investing in this new piece of technology, removing barriers and allowing people to send money to each other no matter where they live.

8. Metcalfe’s Law and Bitcoin – High adoption with Push the Price up Exponentially

Metcalfe’s Law is a term coined by Robert Metcalfe that states that the value of a network grows by the square of the size of the network. The idea behind this law is that a network’s value is increased as the size of the network increases. For example, approximately 0.7% of the population use Bitcoin so (0.7² =0.49), but if we saw an increase to 2% of the population using Bitcoin, then the value of the network would quadruple (2² =4), if 4% of the population used Bitcoin then the value would of the network x16 (4² =16) and so on. The value of the network quadrupling would also push the price exponentially – there is no limit to what price Bitcoin can hit!

9. Privacy and Anonymity

Lack of privacy and anonymity is becoming an increasing issue in 2019. Bitcoin operates differently to your usual banking network. Opening a bank account requires lots of effort, identification and sometimes cost. You could use Bitcoin to keep your funds anonymous, an interesting example is a domestic abuse victim could use Bitcoin to safely and securely save funds to prepare for an independent life. Privacy and anonymity is something people are beginning to value more nowadays due to increased hacks, malware and viruses. If people are valuing privacy and anonymity more, they will with Bitcoin too.

10. Flexibility in the Market

Investing and trading Bitcoin can be done on any day at any time. Giving you flexibility to work with your investments and no barriers. Unlike stocks you do not need to wait for the market to open to handle trades and your investments. This gives investors and traders more freedom with their money. Flexibility is valued and traders do not want to be told when they can and can’t trade with their own capital. Thus, this will be positive and drive the price as the flexibility is attractive to traders.

11. Increasing Regulation

There is increasing regulation when it comes to Bitcoin and cryptocurrencies but this is not necessarily a bad thing. With more regulation, the asset will gain trust and adoption will increase. As stated in one of the previous points, increased adoption is one of the quickest ways Bitcoin can rise in price. Investing in Bitcoin will be safer and information about the asset will be much more clear, bringing in many more investors. Governments are constantly discussing Bitcoin and other cryptos, showing that it is here to stay.

The History of Bitcoin Prices – How has it Grown since 2008?

In October 2008, a paper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’ was written and published by Satoshi Nakamoto. This paper explained the idea behind Bitcoin, outlining exactly how it would operate and describing the details of a completely functional cryptocurrency. Bitcoin works in a fully decentralised system, operating in a trustless manner making it possible to send and receive financial transactions without the need for a third-party. Over 10 years later, this network has grown rapidly and evolved to connect with the needs of its ever-burgeoning user-base.

See How the Bitcoin Price Has Increased Over Time

Bitcoin has had a crazy history of up and downs. In March 2010, 10,000 BTC was auctioned for $50 but no buyer was found. A couple months later, L.Haynecz completed the first real-world transaction by buying two pizzas in Florida for 10,000 BTC (an amount that would be over $50m today).

Fast forward 11 years and we experienced the parabolic Bitcoin rise in April 2021. Bitcoin hit its all-time-high of around $65000, making many early investors a great amount of profit. Since then, this has still been the top and the price had experienced a rocky year, crashing all the way to around $46K – where the price seems to have bottomed.