Thinking about investing? Think the Bitcoin way

What is Bitcoin?

If you’re here, you’ve heard of Bitcoin. It has been one of the most frequent news headlines in the last year or so, as a get-rich-quick scheme, the end of finance, the birth of a truly international currency, the end of the world, or an improved technology. the world But what is Bitcoin?

In short, Bitcoin is the first decentralized money system used for online transactions, but it might be helpful to dig a little deeper.

All of us, in general, know what “money” is and what it is used for. The most important problem witnessed in the use of money prior to Bitcoin is that it was 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 of money on a global scale. The idea is that currency can be traded across international lines without hassle or fee, checks and balances will be distributed around the world (not just on the ledgers of private corporations or governments), and money will become more and more democratic. equally accessible to all.

How did Bitcoin start?

The concept of Bitcoin and cryptocurrency in general was started in 2009 by an unknown researcher, Satoshi. The reason for his invention was to solve the centralization of the use of money based on banks and computers, a problem that many computer scientists were not happy with. Achieving decentralization has been attempted since the late 90s without success, so when Satoshi published a paper in 2008 that offered a solution, it was overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for Internet users and has spawned thousands of “altcoins” (non-Bitcoin cryptocurrencies).

How is bitcoin made?

Bitcoin is produced through a process called mining. Just as paper money is produced by printing and gold is mined from the ground, Bitcoin is created by “mining”. Mining involves solving complex mathematical problems involving blocks using computers and adding them to a public ledger. When it started, a simple processor (like in your home computer) was only needed for mining, but the level of difficulty has increased significantly and now you will need specialized equipment, including a high-end graphics processing unit (GPU) to mine Bitcoin.

How can I invest?

First, you need to open an account with the trading platform and create a wallet; you can find some examples by searching Google for “Bitcoin trading platform” – they usually have names like “coin” or “market”. After joining one of these platforms, you click on assets and then click on crypto to select your desired currencies. Each platform has many indicators that are quite important and you should definitely consider them before investing.

Just buy and hold

Although mining is the most reliable and, in some ways, the simplest way to earn Bitcoin, there is too much hustle and bustle involved, and the cost of electricity and specialized computer equipment puts it out of reach for most of us. To avoid all this, make it easy on yourself, enter the amount you want directly from your bank and click buy, then sit back and watch your investment grow as the price changes. This is called exchange and happens on many. exchange platforms available today with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc.) and various crypto coins (Bitcoin, Ethereum, Litecoin, etc.).

Bitcoin trading

If you are familiar with stocks, bonds or Forex exchanges, you will easily understand crypto-trading. There are Bitcoin brokers like e-social trading, FXTM and many others to choose from. Platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, for example BTC-USD means trading Bitcoins for USD. Keep an eye on price changes to find the perfect pair according to price changes; platforms provide price among other indicators to give you proper trading advice.

Bitcoin as shares

There are also organizations that have been created to allow you to buy shares in companies that invest in Bitcoin. these companies do trading 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, it involves risk. Whether or not to invest is entirely up to the individual. However, if I were to give advice, I would recommend investing in Bitcoin because Bitcoin continues to rise, although there has been one significant boom and bust, there is a good chance that cryptocurrencies as a whole will continue to rise. : increase in value over the next 10 years. Bitcoin is the biggest and most popular of the current cryptocurrencies, so it’s a good place to start and the safest bet right now. Although volatile in the short term, I doubt you will find Bitcoin trading more profitable than most other ventures.