Thinking about Investing? Think the Bitcoin Way
May 29, 2021
If you’re here, you’ve heard about Bitcoin. It has been one of the primary frequent news headlines during the last 12 months – as a get rich quickly scheme, the finish of finance, the birth of truly international currency, because the end of the world, or as a technology that has improved the world. But what is Bitcoin?
In short, you could say Bitcoin is the first decentralised system of money useful for online transactions, but it will probably be useful to dig a bit deeper.
We all know, in general, what ‘money’ is and what it is used for. The most important issue that witnessed in money use before Bitcoin pertains to it being centralised and controlled by a single entity – the centralised bank operating system. Bitcoin was invented in 2008/2009 by an unknown creator who goes by the pseudonym ‘Satoshi Nakamoto’ to bring decentralisation to money on a worldwide scale. The idea is that the currency could be traded across international lines without difficulty or fees, the checks and balances will be distributed across the entire globe (rather than just on the ledgers of private corporations or governments), and money would become more democratic and equally accessible to all.
How did Bitcoin start?
The concept of Bitcoin, and cryptocurrency generally, was were only available in 2009 by Satoshi, an unknown researcher. The reason behind its invention was to resolve the problem of centralisation in the usage of money which relied on banks and computers, a concern that many computer scientists weren’t pleased with. Achieving decentralisation has been attempted because the late 90s without success, so when Satoshi published a paper in 2008 providing a solution, it had been overwhelmingly welcomed. Today, Bitcoin has become a familiar currency for internet surfers and has given rise to thousands of ‘altcoins’ (non-Bitcoin cryptocurrencies).
How is Bitcoin made?
Bitcoin is made through a process called mining. Just like paper money is made through printing, and gold is mined from the bottom, Bitcoin is established by ‘mining’. Mining involves solving of complex mathematical problems regarding blocks using computers and adding them to a public ledger. When it began, a straightforward CPU (like that at home computer) was all one needed to mine, however, the level of difficulty has increased significantly and now you will need specialised hardware, including high end Graphics Processing Unit (GPUs), to extract Bitcoin.
How do I invest?
First, you have to open an account with a trading platform and develop a wallet; you can find a few examples by searching Google for ‘Bitcoin trading platform’ – they generally have names involving ‘coin’, or ‘market’. After joining one of these platforms, you click on the assets, and then click on crypto to choose your desired currencies. There are a lot of indicators on every platform which are quite important, and you should be sure you observe them before investing.
Simply buy and hold
While mining is the surest and, in ways, simplest solution to earn Bitcoin, there is an excessive amount of hustle involved, and the expense of electricity and specialised computer hardware makes it inaccessible to many of us. To avoid all of this, make it possible for yourself, directly input the total amount you want from your own bank and click “buy’, then relax and watch as your investment increases based on the price change. That is called exchanging and takes place on many exchanges platforms available today, having the ability to trade between a variety of fiat currencies (USD, AUD, GBP, etc) and various crypto coins (Bitcoin, Ethereum, Litecoin, etc).
If you are acquainted with stocks, bonds, or Forex exchanges, you then will understand crypto-trading easily. You can find Bitcoin brokers like e-social trading, FXTM markets.com, and many others that you can choose from. The platforms give you Bitcoin-fiat or fiat-Bitcoin currency pairs, example BTC-USD means trading Bitcoins for U.S. Dollars. Keep your eyes on the price changes to find the perfect pair according to price changes; the platforms provide price among other indicators to provide you with proper trading tips.
Bitcoin as Shares
There are also organisations setup to help you to buy shares in companies that spend money on Bitcoin – these businesses do the trunk and forth trading, and you simply invest in them, and await 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 demands that you have some basic knowledge of the currency, as explained above. Much like all investments, it involves risk! The question of whether or not to get depends entirely on the individual. However, if I were to give advice, I would advise in favor of investing in Bitcoin with grounds that, Bitcoin keeps growing – although there has been one significant boom and bust period, it really is highly likely that Cryptocurrencies as a whole will continue to upsurge in value over the next a decade. Bitcoin is the biggest, & most well known, of all the current cryptocurrencies, so is a good place to start, and the safest bet, currently. Although volatile in the short term, I suspect you will find that Bitcoin trading is more profitable than almost every other ventures.