What is Bitcoin?
Bitcoin is a decentralized, equal-to-equal digital currency system designed to enable online users to process transactions through a digital exchange unit known as Bitcoins. That is, it is a virtual currency.
The Bitcoin system was created in 2009 by an undisclosed developer. Since then, Bitcoin has attracted a great deal of attention, with controversy as an alternative to the US dollar, the euro, and commodity currencies such as gold and silver.
To rise in popularity
Bitcoin did not receive much attention in the business and financial world until 2009. It rose in 2011-2012, when it gained more than 300%. Bitcoin has registered a 400% increase in its value since August last year. As a result, venture capital companies and investors continue to use cryptocurrencies around the world.
In the first half of 2014, venture capital firms invested $ 57 million in bitcoin in the first quarter, followed by $ 73 million in the second quarter, totaling $ 130 million, which is 50% more than the $ 88 million total of the previous year. This is in stark contrast to the 2012 scenario, where bitcoin firms accumulated a relatively small amount of money – $ 2.2 million.
This statistic definitely proves that Bitcoin is worth your investment, which raises the question of how you can buy and invest in Bitcoin.
A guide for beginner bitcoin investors
The easiest աք least complicated way to invest in Bitcoin is to buy bitcoins. There are many established companies, mainly in the US, as well as abroad, which are engaged in buying and selling bitcoins, abbreviated as BTC.
Coinbase:
If you live in the US, Coinbase is the place to look. Coinbase provides its customers with 1% BTC more than the current market price. Residents of the United States have the ability to synchronize their Coinbase wallets with their bank accounts. As a result, transfers of future payments are made without difficulty. This company also allows you to make automatic purchases of bitcoins from time to time. For example, if you are interested in buying $ 50 worth of bitcoins at the beginning of each month, Coinbase allows you to create an automatic purchase for that amount.
Please note the terms and conditions before using this service. If you subscribe to an automatic bit coin service, you will not be able to control the price at which BTC is purchased each month. Note that Coinbase does not act as a bitcoin exchange, ie you buy or sell coins directly from the company. Because the company has to supply coins from other buyers, you may encounter delays or disruptions when ordering in the fast-paced market.
BitStamp:
BitStamp meets the requirements of a regular bitcoin exchange. Bitcoin acts as an intermediary that allows you to trade with other users, not the company. Liquidity is higher here և you always have a good chance of finding someone who is willing to trade with you. There is a down payment of 0.5%, which can be reduced to 0.2% if you trade $ 150,000 within 30 days.
Alternative Ways to Buy Bitcoins
Local bitcoins
Exchange is not the only method of investing in bitcoins. Local bitcoins are often used to buy BTC online. The site is designed to connect potential buyers and sellers. Bitcoins are held by the seller և can only be issued to buyers.
Buying bitcoins offline is not always very reliable or secure. Therefore, it is preferable to meet with vendors during the day և to let a friend mark you if everything falls south.
Bitcoin is not just a modern trend. Venture capital companies consider bitcoin a worthy replacement for ordinary currency in the long run. There are meaningless ways to enter the Bitcoin investment arena. As previously mentioned, Coinbase, BitStamp և Local Bitcoins are the most popular channels for investing in bitcoin in the US. Do your homework և Find out which avenue marks all your boxes.