Check out these five ways to invest and five other ways to pay in bitcoin in 2022.
The ongoing bear run in crypto is making many people reconsider their Bitcoin-buying decisions. But as any seasoned investor will tell you, the utility of Bitcoin trumps these short-term ebbs and flows. The price of Bitcoin at the moment is just above $16000, making it the best time to buy cheap and hold.
Investing in Bitcoin is only one side of the coin – what about paying in BTC? In 2023, you can spend your Bitcoin in many places to buy products and services or to make donations.
Let’s learn more about the ten ways you can invest and pay in Bitcoin in 2023.
10 ways to invest and pay in Bitcoin in 2023
Given the present crypto market conditions, it’s natural to feel apprehensive about investing in Bitcoin in 2023. The situation has become worse in the wake of the massive FTX scandal.
However, cryptocurrencies and the underlying blockchain technology have only seen wider adoption in 2023. Global spending on blockchain technology is projected to increase to USD 19 billion in 2024 from USD 6.6 billion in 2021. Investing in Bitcoin should continue to be one of your financial priorities in 2023.
We have divided the guide into two sections. In the first section, you’ll learn about 5 ways to invest in Bitcoin in 2023. The second section will talk about 5 places where you can pay in Bitcoin.
5 ways to invest in Bitcoin in 2023
Here are the five best ways to invest in BTC in 2023:
1. Crypto exchanges
Cryptocurrency exchanges are the most common way of buying Bitcoin. Most of us are already familiar with the leading cryptocurrency exchanges – Binance, Crypto.com, Coinbase, and so on.
Crypto exchanges are essentially large marketplaces for cryptocurrencies. When you want to buy say 0.5 BTC, the cryptocurrency exchanges provide it without needing you to find someone to sell. The ease of buying cryptocurrencies through exchanges makes them the most convenient solution for retail crypto investors.
There are multiple reasons to choose cryptocurrency exchanges for buying Bitcoin. At the same time, you should be aware of how much commission they are charging. Keep reading to know about other ways to buy Bitcoin.
2. Fintech apps
Fintech apps are different from cryptocurrency exchanges in the sense that they don’t deal exclusively with cryptocurrencies. For example, you can buy Bitcoin with a credit card on MoonPay instead of signing up for major crypto exchanges like Binance. You can also buy Bitcoin from popular apps like PayPal and Venmo.
There are different types of fintech apps dealing with crypto, and we can’t neatly categorize them into one segment. Some platforms facilitate payment through cryptocurrencies, while some would let you buy and hold Bitcoin within the platform. It’s easy to get confused with so many fintech and finance companies providing the option to buy Bitcoin to retail users.
If you feel fintech apps suit you better than crypto exchanges, go for them.
Some traditional stockbrokers like Robinhood and eToro also allow their users to buy Bitcoin straight from their platforms. Crypto marketplaces like Binance are different from stockbrokers like Robinhood.
Stockbrokers are more traditional financial institutions, while crypto marketplaces are platforms that only deal with cryptocurrencies.
To buy Bitcoin from a traditional stockbroker, you need to open an account with them and deposit money into your account. Once the money is in your account, you will be able to buy Bitcoin directly from the stockbroker.
The process is similar to buying any other asset from a traditional stockbroker. Some crypto investors prefer stockbrokers to crypto exchanges for security reasons, but stockbrokers may sometimes charge more than leading crypto exchanges.
4. Invest in companies with high Bitcoin exposure
When you invest in companies like MicroStrategy Inc, Marathon Digital Holdings, or even Tesla, you indirectly invest in Bitcoin. The concept is similar to investing in gold mining companies instead of physical gold.
How does it work? When the price of Bitcoin goes up, we expect the share prices of these companies to go up as well. On the contrary, you are somewhat protected from any rapid fall in Bitcoin price. This risk-mitigation factor makes investing in companies with Bitcoin holding a lucrative option for some people, especially if investing in crypto is a source of passive income for them.
Here are the top ten public companies with the highest BTC holdings:
- MicroStrategy Inc.
- Marathon Digital Holdings
- Square Inc.
- Hut 8 Mining Corp
- Hive Blockchain
- NEXON Co Ltd
- Voyager Digital LTD
- Aker ASA (Seetee AS)
5. Peer-to-peer transactions
Peer-to-peer BTC purchases are the most straightforward way of buying Bitcoin in 2023. When you want to buy Bitcoin and know someone who wants to sell it, you can directly buy it from them. The purchased BTC will come to your wallet, and you have to pay the seller manually.
While peer-to-peer transactions are fast and straightforward, they’re typically unsafe. Imagine paying for BTC to an online stranger, and that person disappears with your money. Unfortunately, fraud in peer-to-peer Bitcoin transactions is widespread, and you should stay away from this method unless you personally know the seller.
Engaging in peer-to-peer BTC buying and selling is risky, and you should always proceed with caution.
5 ways to pay in Bitcoin in 2023
Here are five different ways to spend your BTC in 2023:
1. Online casinos
If you’re a regular user of online casinos, you will find endless ways to spend your Bitcoin in 2023. Online casinos have become very popular over the last several years, and many leading platforms allow their users to participate in online gambling with cryptocurrencies. Payouts are also generally faster when you use Bitcoin or other cryptocurrencies in online casinos.
While online casinos aren’t for everyone, they are a good avenue to spend your Bitcoin. Depending on the platform you choose, there can be exciting rewards and cashback for using Bitcoin or any other cryptocurrency.
2. Buy gift cards
You can buy electronic gift cards with Bitcoin as well. Once you buy a gift card and give it to someone else, they can use the gift card amount to buy whatever they want (from partner eCommerce stores and websites). Here’s a list of platforms from where you can buy gift cards with Bitcoin:
- Gift Off
You can buy anything from Amazon to Zalando gift cards with Bitcoin. It’s a great way to spend your Bitcoin considering the fact that the recipient of the gift card can buy anything with it, not just crypto-related products. So if you’re running out of gift ideas this holiday season, you know where your Bitcoin can be put to good use.
3. Donate to Wikipedia
Wikipedia recently stated that donors can now use Bitcoin to donate to the Wikimedia Foundation. According to the official note, these donations will help the foundation continue to provide free knowledge to everyone.
Established in 2003, the Wikimedia Foundation is a nonprofit organization that supports Wikipedia and its sister projects. The organization relies on donations to operate. Bitcoin donations will help the foundation continue its work to provide free knowledge to everyone.
The Wikimedia Foundation has partnered with Coinbase to process Bitcoin donations. Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, Ethereum, and Litecoin. If donations are your thing, you’ll have no trouble spending your Bitcoin for a cause.
4, Buy from Overstock
Overstock is a retail website offering a wide variety of high-quality merchandise, including furniture, rugs, bedding, electronics, clothing, and more. It has a reputation for offering incredible value for the money, primarily because they sell products that are considered dead stock.
Overstock is also known as one of the earliest adopters of Bitcoin. It allowed users to transact in Bitcoin even in 2014. In 2023, it continues to be one of the most popular platforms to spend Bitcoin.
Currently, Overstock accepts BTC payments through Coinbase. It’s one of the best platforms to buy everyday products using Bitcoin. The next time someone tells you that you can’t buy anything real with Bitcoin, tell them about Overstock.
5. Peer-to-peer payments
Peer-to-peer Bitcoin payments refer to one individual directly selling their Bitcoin to another individual. It works just like peer-to-peer Bitcoin purchases. You find someone who wants to buy Bitcoin and send your BTC directly to their wallet.
The best peer-to-peer Bitcoin payment platforms include LocalBitcoins, Paxful, and Bisq. Each of these platforms provides unique elements and services that make them ideal for certain types of buyers, sellers, and traders.
Peer-to-peer transactions always have an element of risk. If you are engaging in peer-to-peer BTC payment, make sure the person you are selling it to is legitimate and won’t disappear with your Bitcoin. Once the risk is mitigated, this is one of the simplest ways of spending Bitcoin in 2023.
The future of Bitcoin is still bright
There’s a lot to look out for if you’re planning to invest in Bitcoin in 2023.
We hope this guide helps you get started in your 2023 Bitcoin journey.