What is Bitcoin?
If you’ve been here, you’ve heard of Bitcoin. It has become one of the most popular headlines in the last year or so – a quick scheme to get rich, the end of finance, really like the birth of an extremely international currency, or as an advanced technology. the world. What is Bitcoin?
In short, Bitcoin is the first decentralized monetary system used for online transactions, but it may be useful to dig a little deeper.
We all know what ‘money’ is and what it is used for. The most important issue that has been witnessed in the use of money before Bitcoin is related to the centralized and managed by a single institution – the centralized banking system. Bitcoin was invented in 2008/2009 under the pseudonym ‘Satoshi Nakamoto’ by an unknown creator who went to ensure the decentralization of money on a global scale. The idea is that the currency can be sold over international lines without any hassle or payment, checks and balances will be distributed around the world (not just in the books of private companies or governments), and money will be more democratic and equally accessible to all.
How did Bitcoin get started?
The concept of Bitcoin, and cryptocurrency in general, was launched in 2009 by an unknown researcher, Satoshi. The reason for his discovery was to solve the problem of centralization in the use of money, which relies on banks and computers, a problem that many computer scientists are not satisfied with. Achieving decentralization has been unsuccessful since the late 1990s, so when Satoshi published an article in 2008 offering a solution, it was well received. Today, Bitcoin has become a familiar currency for internet users and has created thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is developed through a process called mining. Just as paper money is earned by pressing and extracting gold from the ground, Bitcoin is also created through “mining.” The mining industry involves solving complex mathematical problems related to blocks using computers and adding them to a mass notebook. When I started, a simple CPU (as in your home computer) was what I needed, but the level of difficulty increased significantly, and now you will need a special hardware, including a high-level Graphics Unit (GPU). Remove 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 for ‘Bitcoin trading platform’ on Google – they generally have ‘coin’ or ‘market’ names. After joining one of these platforms, you hit assets and then tap cryptocurrency to select the currency you want. Each platform has many indicators that are important enough, and you should make sure you observe them before investing.
Just buy and hold
Although mining is the safest and simplest way to earn Bitcoin, there is a lot of hype, and the cost of electricity and specialized computer equipment makes it inaccessible to most of us. To avoid all this, make it easy for yourself, enter the desired amount directly from your bank and click “buy”, then sit down and watch the investment increase due to the price change. This is called exchange and occurs in many. Exchange platforms with the ability to trade between many different currencies (USD, AUD, GBP, etc.) and different cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.) that exist today.
If you are familiar with stocks, bonds or Forex exchanges, you will easily understand crypto trading. There are e-social trading, FXTM market.com and many other Bitcoin brokers to choose from. Platforms offer you Bitcoin-fiat or fiat-Bitcoin currency pairs, for example BTC-USD means trading Bitcoins for US Dollars. Look for price changes to find the perfect pair for a price change; The platforms give you a price among other indicators to give you suitable trading tips.
Bitcoin as shares
There are also organizations set up to allow you to buy shares in companies that invest in Bitcoin – these companies trade back and forth, and you invest in them and expect a monthly return. These companies simply combine digital money from different investors and invest on their behalf.
Why invest in Bitcoin?
As you can see, investing in Bitcoin requires some basic knowledge of the currency, as described above. As with all investments, risk is included! The question of whether or not to invest depends entirely on the individual. But if I were to advise, I would advise you to invest in Bitcoin because Bitcoin will continue to grow – although there will be a significant boom and bust period, it is likely that cryptocurrencies as a whole will continue to grow in value over the next 10 years. Bitcoin is the largest and best of the available cryptocurrencies, so it’s a good place to start and is currently the most reliable bet. Although it is volatile in the short term, I doubt you will find that Bitcoin trading is more profitable than other businesses.