What is Bitcoin?
If you’re here, you’ve heard of Bitcoin. It’s been one of the most frequent news stories of the last year or so – as a get-rich-quick scheme, the end of finance, the birth of a truly international currency, the end of the world or improved technology. world. But what is Bitcoin?
In short, it could be said that Bitcoin is the first decentralized monetary system used for online transactions, but it will probably be useful to dig a little deeper.
We all know, in general, what ‘money’ is and what it is used for. The most significant problem seen in the use of money before Bitcoin is that it is centralized and controlled by a single entity: the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator nicknamed ‘Satoshi Nakamoto’ to bring decentralization to money on a global scale. The idea is that the currency can be traded on international lines without any difficulty or fees, checks and balances would be distributed around the world (only on the books of private corporations or governments), and money would become more and more democratic. equally accessible to all.
How did Bitcoin start?
The concept of Bitcoin, and cryptocurrency in general, was started in 2009 by an unknown researcher named Satoshi. The reason for the invention was to solve the problem of the centralization of the use of money, which was based on banks and computers, which many computer scientists were not happy about. Decentralization has been attempted since the late 90s without success, so when Satoshi published a paper in 2008 providing a solution, it was well received. Today, Bitcoin has become a popular currency for internet users and has spawned thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
This is done through a process called Bitcoin mining. Just as paper money is obtained through printing, and gold is extracted from the ground, Bitcoin is created through “mining”. Mining involves solving complex mathematical problems about blocks using computers and adding them to a public ledger. When it started, a simple CPU (like your home computer) was all that was needed to mine, however, the level of difficulty has increased significantly and now you’ll need specialized hardware, including a high-end Graphics Processing Unit (GPU). withdraw Bitcoin
How do I invest?
First, you need to open an account with a trading platform and create a portfolio; You can find some examples by searching Google for “Bitcoin trading platform” – they generally have names with “coin” or “market”. Once you enter one of these platforms, you click on assets, then click on crypto to choose your desired currency. There are many very important indicators in every platform, which you should observe before investing.
Just buy and hold
While mining is the safest and, in some ways, the easiest way to earn Bitcoin, there is too much fuss involved, and the cost of electricity and specialized computer hardware makes it out of reach for most of us. To avoid all this, make it easy for yourself, enter the amount you want directly from your bank and click “buy”, then sit back and watch your investment grow as the price changes. This is called a trade-off and it happens often. exchanges platforms available today, with the ability to trade between fiat currencies (USD, AUD, GBP, etc.) and different crypto coins (Bitcoin, Ethereum, Litecoin, etc.).
Bitcoin trading
If you are familiar with stocks, bonds or forex exchanges, then you will easily understand crypto trading. There are Bitcoin brokers such as e-social trading, FXTM markets.com and many others that you can choose from. Platforms offer you Bitcoin-fiat or fiat-Bitcoin currency pairs, for example BTC-USD means exchanging Bitcoins for US dollars. Keep an eye on price changes to find the perfect match based on price changes; The platforms offer price among other indicators to give you the right trading advice.
Bitcoin as a stock
There are also organizations that allow you to buy shares in companies that invest in Bitcoin – these companies trade back and forth, and you just invest in them and wait for your monthly benefits. These companies pool the digital money of different investors and invest on their behalf.
Why should you invest in Bitcoin?
As you can see, investing in Bitcoin requires some basic knowledge of the currency, as explained above. As with all investments, there is risk involved! The question of whether to invest or not depends entirely on the individual. However, if I were to give advice, I would favor investing in Bitcoin, with one reason why Bitcoin continues to grow; Although there has been a significant boom and bust, it is very likely that Cryptocurrencies as a whole will continue. increase in value over the next 10 years. Bitcoin is the largest and most popular of all cryptocurrencies today, so it’s a good place to start, and the safest bet, today. Although volatile in the short term, I suspect you will find Bitcoin trading more profitable than most other businesses.