What is Bitcoin?
If you are here, you have heard of Bitcoin. It’s been one of the most frequent news headlines for the last year or so: as a get-rich-quick scheme, the end of finance, the birth of a truly international currency, as the end of the world, or as a technology that it has improved. the world. But what is Bitcoin?
In short, Bitcoin is arguably the first decentralized money system used for online transactions, but it’s probably useful to dig a little deeper.
We all know, in general, what ‘money’ is and what it is used for. The most important problem that was observed in the use of money before Bitcoin is related to its being centralized and controlled by a single entity: the central banking system. Bitcoin was invented in 2008/2009 by an unknown creator using the pseudonym ‘Satoshi Nakamoto’ to bring decentralization of money on a global scale. The idea is that currency could be traded across international lines without difficulty 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 it would become more democratic and equally accessible to all.
How did bitcoin start?
The concept of Bitcoin, and cryptocurrencies 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 depended on banks and computers, a problem with which many computer scientists were not happy. Achieving decentralization has been attempted without success since the late 1990s, so when Satoshi published an article in 2008 providing a solution, he was overwhelmingly welcome. Today, Bitcoin has become a familiar currency for Internet users and has given rise to thousands of ‘altcoins’ (cryptocurrencies that are not Bitcoin).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just like paper money is made by printing and gold is mined from the ground, Bitcoin is created by “mining.” Mining involves solving complex mathematical problems involving blocks using computers and adding them to a public ledger. When you started, all that was needed to mine was a simple CPU (like the one in your home computer), however, the level of difficulty has increased significantly and you will now need specialized hardware, including a Graphics Processing Unit (GPU). ) high-end, to mine bitcoins.
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 googling ‘Bitcoin trading platform’; they usually have names involving ‘currency’ or ‘market’. After joining one of these platforms, you click on assets and then crypto to choose your desired coins. There are many indicators on each platform that are quite important and you should make sure that you look at them before investing.
Just buy and hold
While mining is the safest and in some ways the easiest way to earn Bitcoin, it is too busy and the cost of electricity and specialized computer hardware makes it inaccessible to most of us. To avoid all this, make it easy, directly enter the amount you want from your bank and click “buy”, then sit back and watch your investment increase according to the price change. This is called trading and it 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 currencies (Bitcoin, Ethereum, Litecoin, etc.).
bitcoin trading
If you are familiar with stocks, bonds, or currency exchanges, you will easily understand cryptocurrency trading. There are Bitcoin brokers like e-social trading, 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 exchanging Bitcoins for US dollars. Keep an eye on price changes to find the perfect pair according to price changes; the platforms provide the price among other indicators to give you proper trading advice.
bitcoin as stocks
There are also organizations created to allow you to buy shares in companies that invest in Bitcoin: these companies do the trading back and forth, and you simply invest in them and expect 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 completely up to the individual. However, if I had to give advice, I would recommend investing in Bitcoin for the reason that Bitcoin continues to grow; Although there has been a significant boom and bust period, it is very likely that cryptocurrencies as a whole will continue to rise in value over the next 10 years. Bitcoin is the largest and most well-known of all the current cryptocurrencies, making it a good place to start and the safest bet today. Although volatile in the short term, I suspect you will find Bitcoin trading more profitable than most other businesses.