Requires a certain level of technical knowledge: While no advanced computer or programming skills are needed, you will need to use a computer and the Internet to buy, sell, and trade Bitcoin and other cryptocurrencies another death.

Once you have chosen your broker or trading platform, start by opening your account. For most cryptocurrency exchanges, the process of opening an online account only takes a few minutes if your information is available. You need a cryptocurrency wallet, found in most cryptocurrency exchange accounts, to store your digital assets.

Plan to enter your name, address, phone number, email, and social security number to activate your cryptocurrency account. Some require additional information, such as a photo of your driver’s license or passport, to access full account features. The experience is similar to opening any regular brokerage or bank account.

Decide which cryptocurrency to buy
Bitcoin is the largest and most popular cryptocurrency in terms of market capitalization. While Bitcoin is arguably the most important digital currency, most exchanges also give you access to currencies like Ethereum, Cardano, Stellar Lumens, or Dogecoin.

Each currency has its own use cases, potential benefits, and market risks. Most cryptocurrencies are considered riskier than Bitcoin, so invest with caution.

To buy Bitcoin, enter the amount of Bitcoin (“BTC”) into the trading tool on your exchange. You will need enough local currency for the transaction to go through once you click the submit button.

Bitcoin transactions happen instantly on some exchanges, while others may take some time to process transactions on the Bitcoin blockchain. According to an exchange called Kraken, standard Bitcoin transactions require four confirmations and take about 40 minutes.3 However, you can choose to pay higher transaction fees for faster processing times with some exchanges.

If you want to buy cryptocurrency through a third party, you can take advantage of the growing number of alternative investment options. For example, Grayscale Bitcoin Trust allows investors to invest in Bitcoin through a traditional investment fund that is, in some ways, like an ETF. Shares of this fund trade under the symbol GBTC on the OTC exchange OTCQX and can be purchased through your brokerage account.

Another way to gain indirect exposure to Bitcoin and the cryptocurrency industry is to use other ETFs focused on the cryptocurrency and blockchain industry, such as Siren NASDAQ NexGen Economic (BCLN), Bitwise Crypto Industry Innovators (BITQ) and Capital Link NextGen Protocol ETF (KOIN) . Consider the fees and risks of investing in an ETF, especially if it focuses on a relatively new sector.

Bitcoin is risky and volatile. Prices go up and down very quickly and sometimes without warning. One Twitter message from Elon Musk or one negative message from a government official could be enough to cause Bitcoin’s value to plummet.

While Bitcoin and other cryptocurrencies may be reasonable assets to hold in your portfolio, don’t invest more than you can afford to lose and consider holding cryptocurrencies as a relatively small portion of your total investment.