How to Invest in Bitcoin in 2024

Are you sick and tired of dealing with rising rents, housing prices, student loans, higher gas prices, higher grocery bills, and a more expensive cost of living? There may be only 1 realistic solution to the ongoing inflation crisis: Bitcoin.

According to CNBC, the average American family of 4 needs to earn well over $100,000 annually to get by. This is the result of hyperinflation of the US dollar and out of control consumer prices.

For example, New York City is the most largest U.S. city in terms of population but the average rent in NYC costs $5,600 per month!

Many NYC residents are spending most of their monthly income just to put a roof over their heads.

When I was a kid, I visited my grandfather’s house in Virginia (USA) and couldn’t believe how he took care of his wife and 5 children on 1 salary as a lifelong factory worker.

Times have changed quite a bit since then and thus millions of hard-working people all over the world have watch their savings disappear due to inflation and rising cost of livings.

Investing in Bitcoin could be the only life raft available for the Average Joe to maintain purchasing power as a hedge against the decline of fiat money.

Understanding Bitcoin as an Investment

In order to invest wisely in Bitcoin, it’s crucial to have a solid understanding of what this cryptocurrency is, how it works, and its associated advantages and disadvantages. Let’s delve into the basics:

What is Bitcoin?

Brief History

Bitcoin, often referred to as digital gold, has a fascinating history. It was conceptualized in 2008 when an individual or group under the pseudonym Satoshi Nakamoto published the Bitcoin whitepaper. In January 2009, Nakamoto mined the first block of the Bitcoin blockchain, known as the “genesis block.” This marked the birth of Bitcoin as a decentralized digital currency.

How it Works (Blockchain Technology)

At its core, Bitcoin operates on a revolutionary technology called blockchain. A blockchain is a decentralized ledger that records all Bitcoin transactions across a network of computers.

Transactions are grouped into blocks, cryptographically linked to form a chain, and added sequentially to the blockchain. This system ensures transparency, security, and immutability of transaction data.

Advantages and Disadvantages of Bitcoin


  1. Decentralization: Bitcoin operates independently of central banks and governments. This decentralized nature means it’s not subject to control or manipulation by any single entity, making it resistant to censorship and interference.
  2. Security: Bitcoin transactions are secured through cryptographic techniques, making them highly secure. The transparency of the blockchain allows users to verify transactions easily.
  3. Accessibility: Bitcoin is accessible to anyone with an internet connection. This inclusivity empowers individuals who are excluded from traditional financial systems.
  4. Limited Supply: Bitcoin has a capped supply of 21 million coins. This scarcity can potentially drive up its value over time, similar to precious metals like gold.


  • Volatility: Bitcoin’s price is known for its extreme volatility. It can experience rapid price fluctuations, leading to both significant gains and losses. Investors should be prepared for this volatility.
  • Lack of Regulation: The cryptocurrency market is relatively unregulated compared to traditional financial markets. This lack of oversight can result in fraudulent schemes and scams, so investors must exercise caution.
  • Technical Complexity: Using and storing Bitcoin can be technically challenging, especially for newcomers. Understanding how to set up a digital wallet and handle private keys is crucial for security.
  • Market Speculation: Many investors are attracted to Bitcoin for its potential for quick and substantial gains. This speculative nature can lead to bubbles and crashes, requiring prudent risk management.

Understanding these advantages and disadvantages of Bitcoin is essential before you start investing. It will help you make informed decisions, assess your risk tolerance, and develop a strategy that aligns with your financial goals.

Making Your First Bitcoin Investment

Now that you have a foundational understanding of Bitcoin, it’s time to take the first steps towards investing. This section will guide you through the essential preparatory steps before you actually acquire Bitcoin.

Setting Financial Goals

Begin by defining your financial objectives for investing in Bitcoin. Are you looking for long-term wealth accumulation, short-term gains, or portfolio diversification? Understanding your goals will help shape your investment strategy.

Here’s a quick guide for new Bitcoin investors:

  • Long Term Wealth Accumulation: Owning 1 Bitcoin is enough for long term wealth accumulation and could build generational wealth over the next 10 to 20 years. Once you own 1 BTC, you can continue setting a goal to reach 2 BTC, 3 BTC, and so on to increase your net worth.
  • Short Term Gains: Bitcoin investors can profit by investing during crypto bear markets to maximize returns once the crypto bull market starts.
  • Portfolio Diversification: Most portfolio managers recommend an asset allocation of 1 to 5% into Bitcoin. I personally aim for 50% Bitcoin portfolio allocation.

Assessing Risk Tolerance

Understand your risk tolerance, which refers to your willingness and ability to endure the potential ups and downs of Bitcoin’s volatile market. Consider factors such as your investment horizon, financial stability, and personal comfort with risk.

Creating a Budget for Bitcoin Investment

Determine how much you can afford to invest in Bitcoin without compromising your financial stability. Avoid investing more than you can afford to lose, given the high volatility of the cryptocurrency market.

I personally recommend investing at least 10% of your income into Bitcoin using the “Pay Yourself Strategy” coined by the book, The Richest Man in Babylon.

Choosing a Reliable Cryptocurrency Exchange

Research and select a reputable cryptocurrency exchange where you’ll buy and trade Bitcoin. Look for factors like security measures, fees, user-friendliness, and customer support. Some popular exchanges include Coinbase, Binance, and Kraken.

For United States Residents

I recommend Coinbase because it’s the largest and most trusted cryptocurrency exchange in the USA with over 100 million verified users.


Coinbase is my recommended crypto exchange for United States citizens. I’ve used them personally since 2014 and highly recommend using them to invest in Bitcoin.

Setting Up a Digital Wallet

To securely store your Bitcoin, you’ll need a digital wallet. There are different types of wallets, including:

  • Hot Wallets: These are connected to the internet and are suitable for frequent transactions but may be less secure.
  • Cold Wallets: These are offline storage devices or paper wallets, which are more secure for long-term storage.

Research the options and choose the one that aligns with your usage and security preferences.

Security Precautions

Security is paramount in the world of cryptocurrency. Implement these security measures:

  • Enable two-factor authentication (2FA) for your exchange and wallet accounts.
  • Use strong, unique passwords for all accounts.
  • Be cautious of phishing attempts and suspicious links or emails.
  • Keep your private keys (for cold wallets) and recovery phrases (for hot wallets) offline and secure.
  • Consider using a hardware wallet for enhanced security if you plan to hold significant amounts of Bitcoin.

Taking these steps before you dive into Bitcoin investment will lay a solid foundation for a safer and more informed journey. Remember that while Bitcoin offers potential rewards, it also comes with risks, and responsible preparation is key to a successful investment experience.

7 Best Bitcoin Investment Strategies

With a firm understanding of Bitcoin and the necessary preparations, it’s time to explore various investment strategies. Choosing the right strategy will depend on your financial goals, risk tolerance, and the level of involvement you desire in managing your Bitcoin investment.

Here are some strategies to consider:

1. Buy and Hold

The Bitcoin buy and hold strategy, often referred to as “HODLing” in the cryptocurrency community, is a long-term investment approach. Investors acquire Bitcoin with the intention of holding onto it for an extended period, typically years, regardless of short-term price fluctuations.

The key idea behind this strategy is the belief that Bitcoin’s value will appreciate significantly over time, driven by factors such as increasing adoption, scarcity (with a capped supply of 21 million coins), and its potential to become a store of value similar to gold. By holding onto their Bitcoin through market ups and downs, investors aim to capitalize on the long-term growth potential of this digital asset.

The buy and hold strategy is favored by those who prefer a passive approach to investing and who believe in the transformative potential of Bitcoin as a decentralized, digital form of money. However, it’s important to note that Bitcoin’s price can be highly volatile, so investors using this strategy should have a strong conviction in Bitcoin’s future and be prepared for price fluctuations along the way.


  • Set it and Forget it strategy
  • Build wealth on autopilot
  • Save time and energy


  • BTC stack doesn’t grow
  • Missing out on buying dips
  • Cannot invest in altcoins

2. Dollar-Cost Averaging (DCA)

The Bitcoin Dollar-Cost Averaging (DCA) strategy is a systematic approach to investing in Bitcoin over time. With this strategy, investors commit to purchasing a fixed amount of Bitcoin at regular intervals, regardless of its price at that moment. This approach spreads out the investment over time and reduces the impact of price volatility.

The DCA strategy is based on the principle of buying more Bitcoin when prices are lower and less when prices are higher. By doing so consistently, investors can benefit from the average cost of their Bitcoin purchases, hence the term “averaging.” This method helps mitigate the risk of making emotional, impulsive decisions based on short-term price fluctuations.

DCA is popular among investors who want to participate in the potential long-term growth of Bitcoin but prefer a disciplined and less speculative approach. It encourages a long-term perspective and can be an effective way to accumulate Bitcoin over time while minimizing the risks associated with trying to time the market.


  • Invest with a small amount
  • Build your BTC stack over time
  • Remove emotions from investing


  • Requires consistent investment
  • May buy BTC at higher prices
  • Costs more in transaction fees

3. Day Trading

Bitcoin Day Trading Strategies

Bitcoin day trading involves the frequent buying and selling of Bitcoin within the same trading day, with the goal of profiting from short-term price fluctuations. Day traders rely on technical analysis, chart patterns, and market indicators to make rapid trading decisions.

Day traders are not interested in holding Bitcoin for the long term. They aim to profit from price movements that occur within minutes, hours, or a single trading day. Some use leverage to control larger positions with a relatively small amount of capital, amplifying gains but also increasing the risk of significant losses.


  • Invest with a small amount
  • Build your BTC stack over time
  • Remove emotions from investing


  • Requires consistent investment
  • May buy BTC at higher prices
  • Costs more in transaction fees

Effective risk management is crucial in day trading. This includes setting stop-loss orders to limit potential losses and having a clear exit strategy. Day traders must constantly monitor the Bitcoin market during trading hours, reacting quickly to changes in market conditions and executing numerous trades in a single day.

Bitcoin’s inherent volatility is both an opportunity and a risk for day traders. They seek out price volatility as it creates trading opportunities but must also be prepared for sudden and sharp price swings. Successful day traders maintain discipline and stick to their trading strategies without letting emotions cloud their judgment.

It’s important to note that day trading is a high-risk, high-reward strategy that requires significant time, skill, and experience. Many day traders experience losses, and it’s not a suitable strategy for everyone. Those interested in day trading should thoroughly educate themselves, start with a small amount of capital, and be prepared for the potential challenges and risks associated with this approach.

Long-term vs. Short-term Strategies

  • Long-term: This approach involves buying Bitcoin with the intention of holding it for an extended period, often years. It’s based on the belief that Bitcoin’s value will appreciate significantly over time.
  • Short-term: Short-term strategies involve actively trading Bitcoin to profit from its price volatility. Traders may engage in day trading, swing trading, or other short-term tactics to take advantage of price movements.

Risk Management and Diversification

  • Risk Management: Regardless of your chosen strategy, it’s crucial to manage risk. Set stop-loss orders to limit potential losses, and never invest more than you can afford to lose.
  • Diversification: Consider diversifying your portfolio beyond Bitcoin. Investing in other cryptocurrencies or traditional assets can help spread risk and reduce your exposure to Bitcoin’s volatility.

D. Staying Updated with Market Trends

  • Regularly monitor the cryptocurrency market and stay informed about news, developments, and trends. Market sentiment can influence Bitcoin’s price, and being aware of these factors can inform your investment decisions.

E. Tax Implications of Bitcoin Investments

  • Understand the tax regulations in your jurisdiction regarding cryptocurrency investments. Keep accurate records of your transactions, including purchases, sales, and capital gains, to facilitate tax reporting.

Investment strategies should align with your financial goals and risk tolerance. Whether you opt for a passive, long-term approach or a more active trading strategy, consistent research and disciplined execution are key to success in the dynamic world of Bitcoin investment. Remember that no strategy is foolproof, and the cryptocurrency market can be highly unpredictable.

Bitcoin carries more risk but also has the potential for bigger gains.

Right now, it’s legal to buy and own Bitcoin just like any other asset.

Perhaps in the future, the government may crack down on cryptocurrencies or increase its regulation to protect their corrupt monetary system.

Bitcoin is decentralized by nature so it will be difficult for governments to seize your Bitcoins.

How to Invest in Bitcoin Step by Step

Bitcoin is easy to buy online thanks to Coinbase. I created a Coinbase account, verified my information, and purchased BTC once my account was confirmed.

The whole process is simple and easy.

1. Create a Cryptotrading Account

The first thing you need to do is create a cryptotrading account to invest in BTC. Coinbase is my favorite choice and it supports over 100 countries.

2. Buy BTC on Coinbase

Once you setup your Coinbase account, you can buy BTC easily.

Go to the BTC buy/sell page, enter your dollar amount, and select your payment method.

You can buy BTC with your bank account or credit/debit card.

3. Determine Your Entry/Exit Strategy

BTC is just like any other investment so you’ll need a solid investment strategy.

If you’re bullish long term then buy a lump sum of BTC and hold for the long run.

Another good strategy is to set automatic investments every paycheck or month to acquire BTC over time.

Bitcoin could be worth a lot more in the future as people seek out an alternative to stashing money in bank & checking accounts that earn zero interest.

It won’t hurt you to invest a portion of your assets in Bitcoin just in case the price takes off.

If you don’t want to buy Bitcoin from a cryptocurrency exchange then try these crypto stocks as an alternative.

My Long Term Bitcoin Price Prediction

Additional Bitcoin Resources

Recommended Books, Websites, and Forums

  • Books: Consider reading books like “Mastering Bitcoin” by Andreas M. Antonopoulos or “The Bitcoin Standard” by Saifedean Ammous to deepen your understanding of Bitcoin and blockchain technology.
  • Websites: Explore reputable cryptocurrency news websites like CoinDesk, CoinTelegraph, and CryptoSlate for the latest news, analysis, and market trends.
  • Forums: Join online forums such as Reddit’s r/Bitcoin or Bitcointalk to engage with the Bitcoin community, ask questions, and learn from experienced investors.

B. Tools for Tracking Bitcoin Prices and Trends

  • Utilize cryptocurrency market tracking websites and apps like CoinMarketCap, CoinGecko, or TradingView to monitor real-time Bitcoin prices, historical data, and technical analysis.
  • Consider using portfolio management apps like Delta or Blockfolio to keep track of your Bitcoin holdings and overall crypto portfolio performance.

C. Glossary of Common Cryptocurrency Terms

  • Familiarize yourself with the terminology commonly used in the cryptocurrency space. You can find comprehensive glossaries online that explain terms like “wallet,” “blockchain,” “hash,” and many more.

Having access to these additional resources will empower you to make informed decisions, stay updated with market trends, and connect with the broader cryptocurrency community. As the cryptocurrency landscape continues to evolve, ongoing education and the use of reliable tools are invaluable for your Bitcoin investment journey.

Frequently Asked Questions

I personally invest between 10 to 25% of my monthly income into Bitcoin. Whenever I receive money, I buy Bitcoin on Coinbase before I do anything else. This small action helps my stack grow over time and prevents me from living paycheck to paycheck.

Based on historical data, it’s actually better to buy Bitcoin leading up to the next halving if you want to maximize your gains.

Selling during the bottom of the bear market means you will miss out on epic gains during the next crypto bull run. There are several leading indicators showing that Bitcoin could bottom soon and start moving higher in 2023.

Does it make sense to sell Bitcoin if BTC’s price will move higher in the near future? According to the Puell Multiple, Bitcoin has already bottomed in price and should continue moving higher.

This leading Bitcoin indicator shows when Bitcoin mining revenue is getting high (red zone) or when mining revenue is trending lower (green zone).

Whenever the Puell Multiple enters a green zone, Bitcoin has bottomed out in price and moved up much higher.

The Puell Multiple is calculated by dividing the daily issuance value of bitcoins (in USD) by the 365-day moving average of daily issuance value.

This is not financial advice but I suspect many Bitcoiner will regret selling their holdings before 2024. Crypto went through hell in 2022 yet the price never dipped below $17,000.

That’s an incredible feat considering the stock market crashed and sent many growth stocks down up to 99%.

Bitcoin will enter block #770,000 in January 2023 and could start soaring in price leading up to the next halving. If history repeats itself then selling Bitc

Small amounts can yield massive results if you stick to the course and let compound interest works its magic. Let’s get it!

A lot of people think you need to buy an entire Bitcoin to invest in cryptocurrency. Most crypto exchanges allow you to buy fractional Bitcoin with small dollar amounts.

For example, Coinbase has $2 minimum BTC purchases so you can dollar cost average your Bitcoin over time.

As a long term Bitcoin HODLer, I believe it’s a good idea to buy Bitcoin ASAP. Global Bitcoin adoption is getting bigger and every day is an opportunity to invest in Bitcoin before the price goes to the moon.

If you hold long enough then I believe it’s possible. The truth is it may take 15 to 20 years for a $100 BTC investment to turn you into a US dollar millionaire.

Bitcoin can be volatile like any other asset and you will see major swings in the price depending on outside factors including the economy, celebrity influence, the stock market, etc.

When you save fiat currency like the US dollar, you don’t take on any risk with your money.

However, your money loses purchasing power over time and cannot buy the same amount of goods/services in the future.

Bitcoin may reach $1,000,000 by the end of 2028.

Due to Bitcoin’s scarce nature, I always have an open mind about its long-term price potential.

Bitcoin doesn’t trade like a stock, bond, or REIT so it’s important to use a more volatile price prediction when thinking about future price targets.

I know that sounds crazy but there are currently A LOT of corporations thinking about adding Bitcoin to the balance sheet.

Why hold 100% cash that loses value every day? Bitcoin is scarce and provides a higher return on investment to shareholders.

Once corporations add Bitcoin to their balance sheets, consumers will follow and start saving & earning Bitcoin as a potential upgrade from just fiat currency.

Many people say Bitcoin is a scam or isn’t really worth anything because it doesn’t exist in the physical world.

The only problem with this argument is more people see the benefits of Bitcoin as a form of “digital gold” in a centralized government run world.

Bitcoin outperformed almost every other asset class since its inception in 2008 and greatly outperformed growth stocks like Tesla and Apple over the last 10 years.

There is even a movement to push for salaries to be paid in Bitcoin instead of US dollars (fiat currency).

People are waking up to the fiat currency money printing scam as they watch their buying power dwindle each year due to massive money printing.

Every currency will eventually go to its instrinsic value – zero.

However, Bitcoin has anti-dilution measures in place because the max supply of Bitcoins is 21 million.

That means you cannot mass produce or distribute Bitcoin, which gives it superior value over the US dollar or any government currency.

Bitcoin will outperform traditional interest paid on savings account and even some of the best growth stocks because it’s scarce and in limited supply.

Bitcoin therefore is an excellent long term investment with around 200% CAGR over the last 10 years.

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