What is Bitcoin?
If you’re here, you’ve heard of Bitcoin. This has been one of the most common headlines in the last year – as a get-rich-quick scheme, the end of finance, the birth of a truly international currency, the end of the world, or an advanced technology. the world. So what is Bitcoin?
In short, you can say that Bitcoin was the first decentralized monetary system used for online transactions, but it will probably be useful to dig a little deeper.
In general, we all know what “money” is and what it is used for. The most significant issue witnessed in the use of money prior to Bitcoin is that it was managed by a centralized and unified entity – the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator known by the pseudonym “Satoshi Nakamoto” to bring decentralization to money on a global scale. The idea is that currency can be bought across international lines without hassle or commission, checks and balances will be distributed around the world (not just on the books of private corporations or governments), and money will become more and more democratic. equally accessible to all.
How Bitcoin Started?
The concept of Bitcoin and cryptocurrencies in general was created in 2009 by an unknown researcher, Satoshi. The reason for his invention was to solve the problem of centralization in the use of money based on banks and computers, an issue that many computer scientists were not happy with. Achieving decentralization has been unsuccessful since the late 90s, so when Satoshi published a paper in 2008 proposing a solution, it was widely welcomed. Today, Bitcoin has become a familiar currency for internet users and has spawned thousands of “altcoins” (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just as paper money is created by printing and gold is mined, Bitcoin is created by “mining”. Mining involves solving complex mathematical problems involving blocks using computers and adding them to the public ledger. When it 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 need specialized hardware, including a high-end Graphics Processing Unit (GPU). Withdraw Bitcoin.
How can 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 the names “coin” or “market”. After joining one of these platforms, you click on assets, then click on crypto to select the currencies you want. Each platform has many indicators that are quite important and you should make sure you observe them before investing.
Just buy and keep
Although mining is the most secure and in some ways the simplest way to earn Bitcoin, there is too much fuss involved and the cost of electricity and dedicated computer hardware makes it out of reach for 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 back and watch your investment grow according to the price change. This is called an exchange and occurs in many transactions. exchange platforms available today with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc.) and various crypto coins (Bitcoin, Ethereum, Litecoin, etc.).
Bitcoin trading
If you are familiar with stocks, bonds or Forex exchanges, you will easily understand crypto trading. There are e-social trading, FXTM markets.com and many other Bitcoin brokers you can choose from. Platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, for example BTC-USD means trading Bitcoin for USD. Pay attention to price changes to find the perfect pair according to price changes; platforms provide price among other indicators to give you proper trading advice.
Bitcoin like stocks
There are also organizations that allow you to buy shares of companies that invest in Bitcoin – these companies trade back and forth, and you simply invest in them and wait for your monthly benefits. These companies simply pool the digital money of various investors and invest on their behalf.
Why should you invest in Bitcoin?
As you can see, investing in Bitcoin requires having some basic knowledge about the currency as explained above. As with all investments, it involves risk! Whether to invest or not is entirely up to the individual. However, if I were to give advice, I would advise investing in Bitcoin because Bitcoin continues to grow – although there has been one major boom and bust period, it is highly likely that cryptocurrencies as a whole will continue to grow. value growth over the next 10 years. Bitcoin is the biggest and most popular of all the cryptocurrencies out there, so it’s a good place to start and the safest bet right now. Although volatile in the short term, I doubt you will find Bitcoin trading more profitable than most other ventures.