What is Bitcoin?
If you are here, you have heard of Bitcoin. In the past year or so, it has been one of the biggest news headlines-as a get rich quick plan, the end of finance, the birth of a truly international currency, the end of the world or the technologically advanced world. But what is Bitcoin?
In short, you can say that Bitcoin was the first decentralized currency system for online transactions, but it might be useful to study it in more depth.
In general, we all know what “money” is and what its purpose is. Before the advent of Bitcoin, the most important issue witnessed in the use of currency was related to its centralization and control by an entity-a centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator, who was named after Satoshi Nakamoto (Satoshi Nakamoto), aiming to bring decentralization into currency on a global scale. The idea is that the currency can be traded on an international scale without any difficulties or fees, the checks and balances will spread all over the world (not just on the ledger of private companies or governments), and the currency will become more democratic and owned People get equal access.
How did Bitcoin start?
The concept of Bitcoin and cryptocurrency in general were proposed by an unknown researcher Satoshi Nakamoto in 2009. The purpose of its invention is to solve the problem of centralization of currency use that relies on banks and computers. Many computer scientists are not satisfied with this. Since the late 90s, attempts have been made to achieve decentralization, but have been unsuccessful, so when Satoshi published a paper providing solutions in 2008, it was greatly welcomed. Today, Bitcoin has become a familiar currency for Internet users, and thousands of “altcoins” (non-bitcoin cryptocurrencies) have been produced.
How is Bitcoin made?
Bitcoin is made through a process called mining. Just like making money through printing and mining gold from the ground, Bitcoin is also created through “mining”. Mining involves using a computer to solve complex mathematical problems about blocks and adding them to the public ledger. In the beginning, only a simple CPU (such as the CPU in a home computer) was needed to mine, but the difficulty has been greatly increased. Now you will need dedicated hardware (including high-end graphics processing units (GPU)) to mine. Withdraw bitcoins.
How should I invest?
First, you must open an account on the trading platform and create a wallet; you can find some examples by searching for “Bitcoin trading platform” on Google-their names usually refer to “coins” or “markets”. After joining one of these platforms, you click on assets and then click on encryption to select the desired currency. There are many very important indicators on each platform, and you should make sure to observe them before investing.
Just buy and hold
Although mining is the most reliable and easiest way to earn Bitcoin, the work involved is too cumbersome, and the cost of electricity and dedicated computer hardware prevents most of us from using Bitcoin. To avoid these troubles, please rest assured, enter the amount you want directly from the bank, then click “Buy”, and then sit down and observe whether your investment increases according to price changes. This is called an exchange, which takes place in many transactions. Today’s available trading platforms can be carried out between many different fiat currencies (USD, AUD, GBP, etc.) and different cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.) transaction.
If you are familiar with stocks, bonds or foreign exchange exchanges, then you will easily understand crypto trading. There are bitcoin brokers such as electronic social trading, FXTMmarkets.com, and many other brokers for you to choose from. The platform provides you with bitcoin fiat currency or fiat bitcoin currency pairs. For example, BTC-USD means trading bitcoin with U.S. dollars. Pay close attention to price changes to find the ideal currency pair based on price changes; the platform provides prices and other indicators to provide you with appropriate trading tips.
Bitcoin as a share
Organizations have also been established that allow you to buy shares in companies that invest in Bitcoin-these companies trade back and forth, you only invest in them, and then wait for monthly returns. These companies just bring together digital currencies from different investors and invest on their behalf.
Why invest in Bitcoin?
As you can see, investing in Bitcoin requires you to have a basic knowledge of a certain currency, as described above. Like all investments, it also involves risks! The question of whether to invest depends entirely on the individual. However, if I provide advice, I recommend investing in Bitcoin on the grounds that Bitcoin continues to grow-despite an important period of prosperity and depression, the entire cryptocurrency is likely to continue to grow in value over the next ten years. Bitcoin is the largest and most widely known of all current cryptocurrencies, so it is a good starting point and the safest choice at the moment. Despite the volatility in the short term, I doubt that you will find Bitcoin trading more profitable than most other venture capital investments.