What is bitcoin?
If you’re here, you’ve heard of bitcoin. It was one of the most common headlines in the last year or so – as a quick scheme to get rich, an end to finances, the birth of a truly international currency, as the end of the world, or as a technology that has improved the world. But what is bitcoin?
In short, you could say that Bitcoin is the first decentralized system of money 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 important problem that has witnessed the use of money before bitcoin is that it is centralized and controlled by one whole – the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator, nicknamed “Satoshi Nakamoto”, to bring decentralization of money worldwide. The idea is that the currency can be traded internationally without difficulty and fees, checks and balances will be distributed around the world (and not just in the diaries of private corporations or governments), and money will become more democratic and equally accessible to all.
How did bitcoin start?
The concept of bitcoin and cryptocurrency in general was launched in 2009 by Satoshi, an unknown researcher. The reason for his invention was to solve the problem of centralization in the use of money, which relied on banks and computers, a problem that many computer scientists were not happy with. Achieving decentralization has been unsuccessful since the late 1990s, so when Satoshi published a report in 2008 proposing a solution, it was greatly welcomed. Today, bitcoin has become a familiar currency for Internet users and has spawned thousands of “altcoins” (non-bitcoin cryptocurrencies).
How to make bitcoin?
Bitcoin is made through a process called mining. Just as paper money is made by printing and gold is mined from the ground, Bitcoin is made by “mining.” Digging involves solving complex mathematical problems with blocks using computers and adding them to a public book. When I started, a simple processor (like the one on your home computer) was all it needed, but the level of difficulty has increased significantly and you will now need specialized hardware, including a high-end graphics processor (GPU), to extract bitcoin.
How to invest?
First, you need to open an account on a trading platform and create a portfolio; You can find some examples by searching Google for “Bitcoin Trading Platform” – they usually have names that include “coin” or “market”. After joining one of these platforms, click on the assets and then click on crypto to select the desired currencies. There are many metrics on every platform that are quite important and you need to make sure you follow them before investing.
Just buy and hold
While digging is the safest and in some ways the simplest way to earn bitcoin, there is too much noise, and the cost of electricity and specialized computer hardware makes it inaccessible to most of us. To avoid all this, make it easy for yourself, enter the amount you want from your bank directly, and click “buy”, then sit back and watch your investment increase as the price changes. This is called an exchange and 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 coins (Bitcoin, Ethereum, Litecoin, etc.). .
If you are familiar with stocks, bonds or Forex exchanges, then you will easily understand crypto-trading. There are bitcoin brokers such as e-social commerce, FX ™ market.com and many more to choose from. The platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, for example BTC-USD means bitcoin trading for US dollars. Follow the price changes to find the perfect pair according to the price changes; platforms provide price among other indicators to give you relevant trading tips.
Bitcoin as stocks
There are also organizations set up to allow you to buy shares in companies that invest in bitcoin – these companies trade reciprocally and back, and you just invest in them and wait for your monthly benefits. 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, this involves risk! The question of whether to invest or not depends entirely on the individual. However, if I were to give advice, I would advise investing in bitcoin for a reason that Bitcoin continues to grow – although there has been a significant period of boom and bust, it is very likely that cryptocurrencies as a whole will continue to increase in value in the coming years. 10 years. Bitcoin is the largest and most famous of all current cryptocurrencies, so it is a good place to start and the safest bet at the moment. Although volatile in the short term, I suspect you will find that bitcoin trading is more profitable than most other ventures.