What is Bitcoin?
If you’re here, you’ve heard of Bitcoin. It’s been one of the most frequent news stories in the last year or so – as a quick enrichment scheme, at the end of finance, as the emergence of a truly international currency, as the end of the world, or as an improved technology. world. But what is Bitcoin?
In summary, it could be said 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 significant problem seen in the use of money before Bitcoin is that it is centralized and controlled by a single entity: the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator nicknamed ‘Satoshi Nakamoto’ to bring decentralization to money on a global scale. The idea is that currency can be traded on international lines without any difficulty or fees, that checks and balances would be distributed worldwide (only in the books of private corporations or governments), and that money would be more democratic and democratic. equally accessible to all.
How did Bitcoin start?
The concept of Bitcoin, and cryptocurrency in general, was started in 2009 by an unknown researcher Satoshi. The reason for the invention was to solve the problem of centralizing the use of money based on banks and computers, which many computer scientists were not happy with. It has tried to achieve decentralization without success since the late 1990s, so when Satoshi published a document that provided a solution in 2008, it was very welcome. Today, Bitcoin has become a popular currency for Internet users and has created thousands of ‘altcoin’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is done through a process called mining. Just as paper money is made through printing, and gold is extracted from the ground, Bitcoin is created through “mining”. Mining involves solving complex mathematical problems about blocks using computers and adding them to a public textbook. When it started, all you needed to make a simple CPU (like your home computer) was mine, however, the difficulty level increased significantly and now you will need specialized hardware, including a high-end Graphics Processing Unit (GPU). take out Bitcoin.
How do I invest?
First, you need to open an account with a trading platform and create a portfolio; You can find some examples by searching Google for “Bitcoin trading platform” – they generally have names that have “currency” or “market”. Once you enter one of these platforms, you click on the assets and then click on the cryptocurrency to select the currency you want. There are many very important indicators on every platform, and you need to observe them before investing.
Just buy and hold on
Although mining is the safest and somehow the easiest way to earn Bitcoin mining, there is too much fuss involved, and the cost of electricity and specialized computer hardware makes it inaccessible to most of us. To avoid all this, just do it yourself, type in the amount you want directly from your bank and click “buy”, then sit back and watch the price increase as your investment increases. This is called exchange and it often happens. it exchanges the platforms currently available, with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc.) and different cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.).
If you know stocks, bonds or Forex exchanges, then you can easily understand crypto trading. There are Bitcoin brokers that you can choose from, such as e-social trading, FXTM markets.com and many more. The platforms offer you Bitcoin-fiat or fiat-Bitcoin currency pairs, for example, BTC-USD means to exchange Bitcoins in US dollars. Look at price changes to find the perfect pair for price changes; platforms offer price among other indicators to provide appropriate trading advice.
Bitcoin as a share
There are also organizations that allow you to buy shares in companies that invest in Bitcoin – these companies trade back and forth, and you just have to invest in them and wait for your monthly benefits. These companies pool digital money from different investors and invest in their behalf.
Why should you invest in Bitcoin?
As you can see, investing in Bitcoin requires some basic knowledge of the currency, as explained above. As with any investment, it comes with risk! The question of whether to invest depends entirely on the individual. However, if I were to give advice, I would be in favor of investing in Bitcoin, for a reason that Bitcoin continues to grow – although there has been a significant rise and break, it is very likely that Cryptocurrency will continue in its entirety. increase in value over the next 10 years. Bitcoin is the largest and most popular of all cryptocurrencies today, so it’s a good place to start, and the safest bet today. Although volatile in the short term, I suspect that you will find that Bitcoin trading is more profitable than most other companies.