Finally, you’ve decided to learn how to buy Bitcoin and dive deeper into the cryptocurrency rabbit hole. This post is going to tell you how to do just that. If you’re considering investing in Bitcoin or other cryptocurrencies, a good starting place is to do a little bit of research. The Bitcoin whitepaper1 is a great place to start.
What is Bitcoin?
The first page of the Bitcoin whitepaper features an abstract, which reads: “A purely peer-to-peer version of electronic cash will allow payments to be sent from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network.”
There you have it. Without even getting into the technicalities, you know what Bitcoin is: It’s a peer-to-peer payment network that can verify the validity of electronic money without the need for oversight from a third party, like a government or a bank. The peer-to-peer payment network is secured by nodes (i.e. computers) that solve complex cryptographic puzzles using computing power. This process validates transactions, ensuring coins are not being counterfeited or spent more than once. The process of validating transactions by solving such puzzles is known as mining. Miners get paid in Bitcoin in exchange for doing the work necessary to keep the network secure. Transactions are confirmed on a public ledger known as a blockchain.
Intended Purpose Behind Bitcoin
Governments and traditional financial institutions that subscribe to the fractional reserve banking2 system hold a lot of power when it comes to determining fiscal policies, printing money, and lending it out to central banks, retail banks, and you, the everyday banking customer. While there are checks and balances in place, there is nothing stopping these institutions from printing more money and potentially devaluing traditional currencies.
Contrast that with Bitcoin, a currency that hosts all its transactions on a secure, public ledger for everyone to see. At all times, this ledger maintains a maximum supply of 21 million Bitcoins. That’s right: Only 21 million Bitcoins will ever exist. It’s programmed into the peer-to-peer system and thus, the maximum supply can never be changed.
How to Buy Bitcoin Using TradeStation Crypto
Figuring out how to buy Bitcoin using TradeStation Crypto [i] is easy. Simply open an account by clicking here.
Here are the basics: TradeStation Crypto puts the power to buy, sell, trade, and invest cryptocurrency on an easy-to-use crypto trading platform. Now that you know a little bit more about how to buy Bitcoin, you’re ready to join the crypto conversation.
SOURCES:
[1] The Bitcoin Whitepaper: A Peer-to-Peer Electronic Cash System https://bitcoin.org/bitcoin.pdf
[2] Fractional Reserve Banking: An Economist’s Perspective https://www.atlantafed.org/education/classroom-economist/fractional-reserve-banking/economists-perspective-transcript
DISCLOSURES:
[i] Equities, equity options, and commodity futures products and services are offered by TradeStation Securities, Inc. (Member NYSE, FINRA, CME and SIPC). Cryptocurrency and digital asset products and services are offered by TradeStation Crypto, Inc. The assets in your TradeStation IRA account are assets of a custodial IRA account established with a third-party IRA custodian selected by you.
Any potential tax advantages or benefits will depend on your circumstances. The information provided here is for information purposes only. It is not intended to constitute tax advice that may be relied upon to avoid penalties under any federal, state, local, or other tax statutes or regulations and does not resolve any tax issues in your favor. Refer to IRS Publication 590, Individual Retirement Accounts, for additional information on IRAs in general and consult your tax professional about your individual tax situation.
[ii] TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly-owned subsidiaries of TradeStation Group, Inc., all operating and providing products and services under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly-owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for or purchasing accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
[iii] Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
[iv] Investing in securities also involves risks. Past performance is no guarantee of future results. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: TradeStation.com/Important Information.
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