What is Bitcoin?
If you are here, you have heard of Bitcoin. It has been one of the most frequent news headlines over the last year, such as a get-rich-quick scheme, the end of finance, the birth of a truly international currency, such as the end of the world, or as a technology that has improved. the world. But what is Bitcoin?
In short, it could be said that Bitcoin is the first decentralized money system used for online transactions, but it is 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 relates to its being centralized and controlled by a single entity: the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator who goes by the pseudonym ‘Satoshi Nakamoto’ to bring decentralization to money on a global scale. The idea is that the currency could be traded across international lines without difficulty or fees, the checks and balances would be distributed worldwide (rather than just on the ledgers of private corporations or governments), and the money would be it would make it more democratic and equally accessible to all.
How did Bitcoin start?
The concept of Bitcoin, and cryptocurrency 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 that depended on banks and computers, a subject 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 that provided a solution, it was an overwhelming welcome. Today, Bitcoin has become a familiar currency for Internet users and has given rise to thousands of ‘altcoins’ (cryptocurrencies other than Bitcoin).
How is Bitcoin made?
Bitcoin is created 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 related to blocks using computers and adding them to a public ledger. When you started, all that was needed to remove 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 the Graphics Processing Unit (GPU). ) high-end, for Bitcoin Extract.
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 generally have names that involve ‘currency’ or ‘market’. After joining one of these platforms, click on assets and then click on crypto to choose your desired currencies. There are many indicators on each platform that are quite important, and you should make sure to observe them before investing.
Just buy and hold
While mining is the safest and in a way the easiest way to earn Bitcoin, there is too much hustle involved, and the cost of electricity and specialized computer hardware makes it unaffordable for 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 an exchange 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. ).
If you are familiar with stocks, bonds, or currency exchanges, you will easily understand crypto trading. There are Bitcoin brokers like e-social trading, FXTM market.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 prices, among other indicators, to provide you with proper trading advice.
Bitcoin as shares
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 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 demands that you have some basic knowledge of the currency, as explained above. As with all investments, it carries risk! The question of whether to invest or not is entirely up to the person. However, if I were to give some advice, I would recommend investing in Bitcoin with a reason that Bitcoin continues to grow, although there has been a significant period of boom and bust, cryptocurrencies as a whole are very likely to continue to grow. increase in value over the next 10 years. Bitcoin is the largest and best known of all current cryptocurrencies, making it a good place to start and the safest bet today. Although volatile in the short term, I suspect that you will find that trading Bitcoin is more profitable than most other companies.