What is Bitcoin?
If you’re here, you’ve heard about Bitcoin. It’s been one of the most frequent news headlines in the last year or so – as a get -rich -quick scheme, the end of finance, the birth of real international money, as the end of the world, or as a technology. that the world is healed. But what is Bitcoin?
In short, you could say that Bitcoin was the first decentralized monetary system used for online transactions, but it might be worthwhile to dig deeper.
We all know, in general, what ‘money’ is and how it is used. The most important issue witnessed in the use of money before Bitcoin relates to it being centralized and controlled by one entity – the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator who went through the wounded ‘Satoshi Nakamoto’ to bring the decentralization of money to a global scale. The idea is that money can be sold on international lines with no hassle or fees, checks and balances will be issued worldwide (rather than just ledgers by private corporations or governments), and the money will be much more. democratic and equally accessible to all.
How did Bitcoin get started?
The concept of Bitcoin, and cryptocurrency in general, was started in 2009 by Satoshi, an anonymous researcher. The reason for this invention was to solve the issue of centralization of the use of money relied on by banks and computers, an issue that many computer scientists were not happy about. Achieving decentralization has been tried since the late 90s without success, so when Satoshi published a paper in 2008 that provided a solution, it was even more enthusiastically welcomed. Today, Bitcoin has become a familiar currency for internet users and has grown into thousands of ‘altcoins’ (not cryptocurrency Bitcoin).
How to make Bitcoin?
Bitcoin is made through a process called mining. Just like paper money is made through printing, and gold is mined from the ground, Bitcoin is made through ‘mining’. Mining involves solving complex math problems about blocks that computers use and adding them to a public ledger To get started with, a simple CPU (like that on your home computer) is needed to mine, however, the level of difficulty has increased significantly and now you need specialist hardware, including high end Graphics Processing Units (GPUs), to extract Bitcoin.
How do I invest?
First, you need to open an account with a trading platform and create a wallet; you can find some examples by searching Google for ‘Bitcoin trading platform’ – they generally have names associated with ‘coin’, or ‘market’. After joining one of the platforms, you click on assets, and click on crypto to select your desired currency. There are many indicators on each platform that are even more important, and you should make sure you observe them before investing.
Simple purchase and control
While mining is the safest and, in a way, the simplest way to acquire Bitcoin, there is a lot of hustle involved, and the cost of electricity and specialized computer hardware beyond the reach of 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 as your investment increases according to the change. This is called an exchange and occurs on many exchange platforms available today, with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc.) and different crypto coins (Bitcoin , Ethereum, Litecoin, etc.).
If you are familiar with stocks, bonds, or Forex exchange, then you can easily understand crypto-trading. There are Bitcoin brokers like e-social trading, FXTM market.com, and many more that you can choose from. Platforms give you a Bitcoin-fiat or fiat-Bitcoin currency pair, for example BTC-USD means selling Bitcoins for the US Dollar. Keep your eyes on the price changes to find the perfect pair according to the price change; the platforms provide pricing other indicators to give you accurate marketing tips.
Bitcoin as Shared
There are also organizations set up to allow you to buy shares of companies that invest in Bitcoin – these companies do recurring trades, and they just invest in them, and wait for your monthly benefits. These companies simply collect digital money from various investors and invest for their name.
Why should you invest in Bitcoin?
As you can see, investing in Bitcoin requires having a fundamental knowledge of the currency, as explained above. As with all investments, risk is involved! The question of whether to invest or not depends entirely on the individual. However, if I were to give advice, I would advise in favor of investing in Bitcoin with a reason that, Bitcoin continues to grow – even if there is a significant period of burst and bust, there is a high probability that Cryptocurrencies in general- the price will continue to rise over the next 10 years. Bitcoin is the largest, and best known, of all today’s cryptocurrencies, so it’s also a good place to start, and the safest bet, right now. Even if it’s quick in the short term, I doubt you’ll find that Bitcoin trading is more profitable than most other activities.