What is Bitcoin?
If you’re here, you’ve heard of Bitcoin. It has been one of the most frequent headlines in the past 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 the technology that has get well. the world. But what is Bitcoin?
In short, you could say that Bitcoin is the first decentralized money 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 important problem observed in the use of money before Bitcoin relates to its centralization and control by a single entity: the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator who goes by the pseudonym ‘Satoshi Nakamoto’ to bring decentralization of money on a global scale. The idea is that the currency could be traded across international lines without hassle or fees, checks and balances would be distributed around the world (rather than just on the ledgers of private corporations or governments), and money would be returned more democratic and equally accessible to everyone.
How did Bitcoin start?
The concept of Bitcoin, and cryptocurrency in general, was started in 2009 by Satoshi, an unknown researcher. The reason for his invention was to solve the problem of centralization in the use of money that was based on banks and computers, an issue with which many computer scientists were not happy. Achieving decentralization has been attempted since the late 1990s without success, so when Satoshi published a paper in 2008 offering a solution, it was overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for Internet users and has spawned thousands of ‘altcoins’ (cryptocurrencies that are not Bitcoin).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just as paper money is made by printing and gold is mined from the ground, Bitcoin is created by “mining”. Mining involves solving complex mathematical problems related to blocks using computers and adding them to a public ledger. When it first started, a simple CPU (like your home computer) was all you needed to mine, but the level of difficulty has increased significantly and now you’ll need specialized hardware, including a high-end graphics processing unit (GPU) . mine Bitcoin.
How to invest?
First, you need to open an account with a trading platform and create a portfolio; You can find some examples by Googling “Bitcoin trading platform” – they usually have names involving “currency” or “market”. After joining one of these platforms, click on assets and then click on crypto to choose your desired coins. There are many indicators on each platform that are quite important, and you should make sure to observe them before investing.
Just buy and hold
Although mining is the safest and in some ways the easiest way to earn Bitcoin, there is too much rush and the cost of electricity and specialized computer hardware makes it out of reach for most of us. To avoid all of this, keep it simple, enter the amount you want directly into your bank and click ‘buy’, then sit back and watch your investment grow as the price changes. This is called an exchange and is done on many exchange platforms available today, with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc.) and different crypto currencies (Bitcoin, Ethereum, Litecoin, etc. .).
If you are familiar with stocks, bonds or currency exchanges, you will easily understand cryptocurrency trading. There are Bitcoin brokers like e-commerce, FXTM markets.com and many others that you can choose from. The platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, for example, BTC-USD means trading Bitcoins for US dollars. Keep an eye out for price changes to find the perfect match based on price changes; platforms provide prices among other indicators to give you proper trading advice.
Bitcoin as shares
There are also organizations set up to allow you to buy shares of companies that invest in Bitcoin – these companies trade back and forth, and you just invest in them and wait for your monthly profits. These companies simply pool digital money from different investors and invest on their behalf.
Why should you invest in Bitcoin?
As you can see, investing in Bitcoin requires you to have some basic knowledge of the currency as explained above. As with all investments, it involves risk! The question of whether or not to invest is entirely up to the individual. However, if I had to give advice, I would advise in favor of investing in Bitcoin with a reason why, Bitcoin continues to grow; although there has been a significant period of boom and bust, it is very likely that cryptocurrencies as a whole will continue to grow. increase in value in the next 10 years. Bitcoin is the biggest and most well-known of all cryptocurrencies today, so it’s a good place to start and the safest bet right now. Although it is volatile in the short term, I suspect you will find Bitcoin trading more profitable than most other businesses.