A collective insanity has sprouted around bitcoin over the last decade. It’s hard to predict whether this cryptocurrency will eventually prove to be a great investment or just a passing storm. That thrill of riches or ruin leaves some investors wary, but others want to chase the chance for profits from a bitcoin investment.

Is bitcoin a good investment? Start with our guide to learn more and make your own judgment.

Simply Put: Is Investing in Bitcoin Risky?

Similar to any speculative investment, buying bitcoin carries some well-known risks: The price could drop precipitously and a single online hacking or crashed hard drive incident can wipe out your stash of bitcoin with no recourse.  

Bitcoin has seen dramatic run-ups in price followed by some painful crashes but has consistently retained a significant portion of its previous gains every time it plummets. Since its inception, Bitcoin was the 1st digital asset to beget the current ecosystem of cryptos. For quite a while, it grew an underground following of investors who saw its future as a possible replacement to the physical monetary system.

The decision to invest in bitcoin comes down to your appetite for risk.

Where to Invest in Bitcoin

You can use an online broker to invest in bitcoin. Investing in bitcoin is similar to investing in stocks, but it is far more volatile due to the daily swings in bitcoin. Here are the steps to invest in bitcoin:

1. Open a brokerage account with a company that allows crypto investments.
2. Deposit funds into your brokerage account.
3. Buy BTC.
4. Later sell the crypto for a gain or loss.

These steps, however, depend on the exchange or trading platform you’re using.

Here are some top brokerages to invest in bitcoin.

1. eToro

Trade popular cryptocurrencies, explore professionally managed portfolios and connect with traders. eToro currently supports the purchase and sale of 15 unique coins, including:

• Bitcoin (BTC)
• Ethereum (ETH)
• Bitcoin Cash (BCH)
• Ripple (XRP)
• Dash (DASH)
• Litecoin (LTC)
• Ethereum Classic (ETC)
• Cardano (ADA)
• MIOTA (IOTA)
• Stellar Lumens (XLM)
• EOS (EOS)
• NEO (NEO)
• TRON coin (TRX)
• Zcash (ZEC)
• Tezos (XTZ)