What is Bitcoin?
If you’ve been here, you’ve heard about Bitcoin. It’s 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 evolves. . the world. But what is Bitcoin?
In short, you could say that Bitcoin was the first decentralized currency system used for online transactions, but it might be worthwhile to dig a little deeper.
We all know, in general, what ‘money’ is and for what it is used. The most important issue witnessed in the use of money before Bitcoin has to do with it being centralized and controlled by one entity – the centralized banking system. Bitcoin was invented in 2008/2009 by an anonymous creator who used the pseudonym ‘Satoshi Nakamoto’ to bring the decentralization of money on a global scale. The idea is that money can be sold on international lines with no hassle or charge, checks and balances will be distributed around the world (rather than the ledgers of private corporations or governments), and the money become 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 its invention was to solve the issue of centralization of the use of money that relies on banks and computers, an issue that many computer scientists are unhappy with. 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 well received. Today, Bitcoin has become a familiar currency for internet users and has provided thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
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 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 the one on your home computer) was all mine needed, however, the difficulty level increased significantly and now you need special hardware, including high end Graphics Processing Units (GPUs), to capture 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 usually have names that relate to ‘coin’, or ‘market’. After joining one of these platforms, you click on properties, and then click on crypto to select your desired currencies. There are many indicators on each platform that are very important, and you should be sure to observe them before investing.
Just buy and hold
While mining is the safest and, in a way, the simplest way to make money with Bitcoin, there is too much speed involved, and the cost of electricity and special computer hardware makes it inaccessible to most of us. . To avoid all this, make it easy for yourself, directly input the amount you want from your bank and click “buy”, then sit back and watch as you invest will increase according to the change in price. This is called exchange and takes place 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).
Bitcoin trading
If you are familiar with stocks, bonds, or Forex exchanges, you can easily understand crypto-trading. There are Bitcoin brokers like e-social trading, FXTM markets.com, and many more that you can choose from. The platforms offer you Bitcoin-fiat or fiat-Bitcoin currency pairs, for example BTC-USD means selling Bitcoins for US Dollars. Keep your eyes on the price changes to find the perfect pair according to the price changes; the platforms provide pricing among other indicators to provide you with accurate trading tips.
Bitcoin as Shares
There are also organizations set up to allow you to buy shares of companies that invest in Bitcoin – these companies repeatedly trade, and you just invest in it, and wait for your monthly benefits. These companies simply collect digital money from different investors and invest for them.
Why should you invest in Bitcoin?
As you can see, investing in Bitcoin requires that you have some basic knowledge of money, as explained above. Like all investments, it involves risk! The question of whether to invest or not depends 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 – despite having a significant boom and bust period, it is likely that Cryptocurrencies in general- will continue to rise in value over the next 10 years. Bitcoin is the largest, and most popular, of all current cryptocurrencies, so it’s 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 Bitcoin trading more profitable than most other businesses.