What is Bitcoin?
If you’ve been here, you’ve heard of Bitcoin. It’s been one of the biggest recurring headlines over the past year or so – as a blueprint for get-rich-quick, the end of financing, the birth of a true international currency, the end of the world, or as a technology the world has improved. But what is Bitcoin?
In short, you could argue that Bitcoin was the first decentralized money system to be used for online transactions, but it would potentially be worth delving deeper.
Generally speaking, we all know what “money” is and what it is used for. The most important problem the use of money has seen before Bitcoin is that it is centralized and controlled by a single entity – the central banking system. Bitcoin was invented in 2008/2009 by an unknown creator who used the pseudonym “Satoshi Nakamoto” to decentralize money on a global scale. The idea is that currency can be traded over international lines without difficulty or fees, checks and balances will be distributed around the world (rather than just corporate or government ledgers), and money will become more democratic and affordable for everyone on an equal footing.
How did Bitcoin start?
The concept of bitcoin and cryptocurrencies in general was started in 2009 by Satoshi, an unknown researcher. The reason for its invention was to solve the problem of centralization in the use of money dependent on banks and computers, a problem that many computer scientists were not happy with. Decentralization has been attempted since the late 1990s without success, so when Satoshi published a paper in 2008 presenting a solution, it was most welcome. Today, Bitcoin has become a familiar currency to Internet users and has led to the emergence of thousands of “ altcoins ” (cryptocurrencies other than Bitcoin).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just like paper money is made by printing, and gold is extracted from the ground, Bitcoin is created by ‘mining’. Mining involves solving complex mathematical problems related to blocks using computers and adding them to the general ledger. When it started, a simple CPU (like the one on a home computer) was all you needed to mine, however, the difficulty level has increased dramatically and you will now need specialized hardware, including high-end graphics processing units (GPUs) Bitcoin extraction.
How do I invest?
First, you have to open an account using a trading platform and create a portfolio; You can find some examples by searching Google for “Bitcoin Trading Platform” – it generally has names that include “currency” or “market”. After joining one of these platforms, you click on assets, then click on crypto to choose the currencies you want. There are a lot of indicators on each platform that are very important, and you should make sure to note them before investing.
Simply buy and hold
While mining is somehow the surest and simplest way to earn Bitcoin, there is a lot of hustle and bustle, the cost of electricity and specialized computers makes it unavailable to most of us. To avoid all of 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 price change. This is called an exchange and is done on the many exchange platforms available today, with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc.) and different cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.).
If you are familiar with stocks, bonds or Forex exchanges, you will easily understand trading cryptocurrencies. There are Bitcoin brokers such as Online Social Trading, FXTM market.com and many other brokers that you can choose from. The platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, for example BTC-USD means to trade Bitcoins against the US dollar. Monitor price changes to find the ideal pair according to price changes; The platforms provide the price among other indicators to provide you with suitable trading advice.
Bitcoin is their cup
There are also organizations created to allow you to buy shares in companies that invest in Bitcoin – these companies trade back and forth, and you just invest in them, and are waiting for the monthly benefits. These companies are simply collecting digital money from various investors and investing 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, they come with risks! Whether or not to invest depends entirely on the individual. However, if I were to advise, I’d recommend investing in Bitcoin for the reason that Bitcoin continues to grow – despite having a big boom and bust period, it is very likely that Cryptocurrencies as a whole will continue. An increase in value over the next ten years. Bitcoin is the largest and most popular of all current cryptocurrencies, so it’s a good place to start, and the most secure right now. Despite the short-term fluctuations, I suspect you will find trading bitcoin more profitable than most other ventures.