What is Bitcoin?
If you’re here, you’ve heard of Bitcoin. It has been one of the biggest frequent news headlines over the last year – like a get-rich-quick scheme, the end of finance, the birth of a truly international currency, like the end of the world, or as a technology that has improved. the world But what is Bitcoin?
In short, you can say 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 that he saw in the use of money before Bitcoin refers to 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 currency can be exchanged across international lines without difficulty or fees, checks and balances will be distributed across the globe (rather than just on the records 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 of cryptography 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 was based on banks and computers, a problem that many computer scientists were not happy with. Decentralization has been tried since the late 90s without success, so when Satoshi published a paper in 2008 that provided a solution, it was met in a big way. Today, Bitcoin has become a familiar currency for internet users and has given rise to thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just as paper money is made by printing, and gold is mined from the earth, Bitcoin is created by “mining”. Mining involves solving complex mathematical problems related to blocks using computers and adding them to a public ledger. When it started, a simple CPU (like the one in your home computer) was all that was needed for mining, however, the level of difficulty has increased significantly and now you need specialized hardware, including the Unit of state-of-the-art Graphics Processing Unit (GPU), to mine Bitcoin.
How to invest?
First, you must open an account with a trading platform and create a wallet; you can find some examples by searching on Google for “Bitcoin trading platform” – generally they have names that imply “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 in each platform that are quite important, and you should be sure to observe them before investing.
Simply buy and hold
While mining is the safest and, in some ways, the simplest way to earn Bitcoin, there is too much hard work involved, and the cost of electricity and specialized computer hardware makes it out of reach for most. us To avoid all this, make it easy for yourself, directly enter the amount you want from your bank and click “buy”, then sit back and watch as your investment increases according to the price change. This is called exchange and it is done on many. exchange platforms available today, with the ability to trade between several fiat currencies (USD, AUD, GBP, etc.) and various crypto currencies (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 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 your eyes on the price changes to find the perfect pair according to the price changes; platforms provide price among other indicators to give proper trading advice.
Bitcoin as Shares
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 invest in them, and wait for your monthly benefits. These companies simply collect digital money from various investors and invest in their name.
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 to invest or not depends entirely on the individual. In any case, if I had to give advice, I would advise in favor of investing in Bitcoin with the reason that, Bitcoin continues to grow – even if there has been a period of significant boom and bust, it is very likely that Cryptocurrencies in general continue to continue. increase in value over the next 10 years. Bitcoin is the largest, and best known, of all current cryptocurrencies, so it’s a good place to start, and the safest bet, currently. Although it is volatile in the short term, I suspect you will find that trading Bitcoin is more profitable than most other businesses.