The easiest way to buy bitcoin is from an online exchange.
Coinbase is the leading and most popular US bitcoin brokerage with more than 30 million wallets.
Not all countries are supported. You can buy bitcoins, ethereum and litecoin from Coinbase and also get a wallet.
When you sign up with Coinbase, you go through a 4 step account set up to confirm your email, add a phone number to enable 2-factor authentication, upload your ID (photoID or passport) and add a payment method. You are ready to go!!
Other exchanges include Gemini (owned by the Winklevoss twins), Bitfinex, Bitstamp, BTCC, itBit, Kraken and OKcoin.
You can sell your bitcoin through any exchange.
The CoinDesk bitcoin price index tracks prices from digital currency exchanges Bitstamp, Coinbase, itBit and Bitfinex.
You can also buy bitcoin through a crypto hedge fund like Blockchain Capital and BitSpread.
Some FX brokers offer trading in the digital currency with both spread betting and CFDs. Traders do not need a Bitcoin wallet to trade Bitcoin markets as they are simply speculating on the price movement of Bitcoin and so don’t need to own any.
Popular online brokers include Etoro and Avatrade.
Bitcoin futures started trading on the Chicago Cboe on 11th December to be followed by the Chicago Mercantile Exchange. Some believe this gives legitimacy to bitcoin.
You can invest indirectly through funds that track the value of bitcoin.
In future you will be able to make money when the price falls by “short selling.” It would also be possible to invest in cryptocurrencies through index funds and ETFs.