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, 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 biggest problem seen in the use of money before Bitcoin is related to its being centralized and controlled by a single entity: the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator using the pseudonym ‘Satoshi Nakamoto’ to bring decentralized money to 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 in the ledgers of private corporations or governments), and money would be would make it 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 that many computer scientists were not happy with. Achieving decentralization has been unsuccessfully attempted since the late 1990s, so when Satoshi published an article in 2008 providing a solution, he was overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for Internet users and has spawned thousands of ‘altcoins’ (cryptocurrencies that are not Bitcoin).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just as paper money is made by printing and gold is dug out of 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 out, all you 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 generally have names involving ‘currency’ or ‘market’. After joining one of these platforms, you click on assets and then on crypto to choose the desired coins. There are many indicators on each platform that are quite important and you should make sure to watch them before investing.
Simply buy and hold
While mining is the safest and in some ways the easiest way to earn Bitcoin, it involves too much hustle and bustle and the cost of electricity and specialized computing 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.). etc.).
bitcoin trading
If you are familiar with stocks, bonds or currency trading, 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 round-trip trading, and you simply invest in them and wait for your monthly profits. These companies simply pool digital money from different investors and invest on your behalf.
Why should you invest in Bitcoin?
As you can see, investing in Bitcoin requires you to have some basic understanding of the currency, as explained above. As with all investments, it involves risk! The question of whether or not to invest is entirely 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 period of boom and bust, it is very likely that cryptocurrencies as a whole will continue to increase in value in the next 10 years. Bitcoin is the largest and most well-known of all cryptocurrencies today, 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 ventures.
