What is Bitcoin?
If you’ve been here, you’ve heard of Bitcoin. It has been one of the most frequent headlines in the last year or so, as a scheme to get rich quick, the end of finances, 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 system of money used for online transactions, but it will probably be useful to go a little deeper.
We all know what “money” is, what it is used for. The most important problem that money witnessed before Bitcoin was its centralized, controlled entity, the centralized banking system. Bitcoin was invented in 2008/2009 by an unknown creator, under the pseudonym “Satoshi Nakamoto”, to bring about the decentralization of money worldwide. The idea is that the currency can be sold internationally without hassle or payment, checks and balances will be distributed worldwide (not just in the books of private corporations or governments), և money will become more democratic և more democratic. equally accessible to all.
How did Bitcoin get started?
The concept of Bitcoin և cryptocurrency in general was started in 2009 by an unknown researcher Satoshi. The reason for his discovery was to solve the problem of centralizing the use of money, which was based on banks and computers, a problem that many computer scientists were dissatisfied with. Attempts to achieve decentralization have been unsuccessful since the late 1990s, so when Satoshi published a document that provided a solution in 2008, it was welcomed by an overwhelming majority. Today, bitcoin has become a popular currency for Internet users, generating thousands of “altcoins” (non-bitcoin cryptocurrencies).
How is bitcoin made?
Bitcoin is produced through a process called mining. Just as paper money is made by printing and gold is mined, bitcoin is created by mining. Mining involves solving complex mathematical problems involving blocks that use computers and adding them to the public register. When it started, a simple processor (like your home PC) was only needed for extraction, but the difficulty level has increased significantly և you will now need specialized equipment, including a high-quality graphics processing unit (GPU). to remove Bitcoin?
How can I invest?
First, you need to open an account on the trading platform և create a wallet; You can find some examples by searching on Google for “Bitcoin trading platform” – they are usually called “coin” or “market”. After joining one of these platforms, you click on the assets, then click on crypto to select the currencies you want. There are many indicators on each platform that are quite important, և you should definitely consider them before investing.
Just buy and keep
Although mining is by far the simplest and most reliable way to earn bitcoin, there is still a great deal of hassle involved in it, and the cost of electricity and specialized computer equipment makes it unaffordable for many of us. To avoid all this, make it easy for yourself, enter the amount you want directly from your bank, click “buy”, then sit down and watch how your investment grows with the change in price. This is called exchange և it happens to many. Exchange platforms available today with the ability to trade between many different fiat currencies (USD, AUD, GBP, etc.) and various cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.).
If you are familiar with stocks, bonds or Forex exchanges, you will easily understand crypto-trading. There are Bitcoin brokers like e-commerce, FXTM markets.com and many more to choose from. Platforms provide you with Bitcoin-fiat or fiat-Bitcoin currency pairs, for example, BTC-USD means trading bitcoins in US dollars. Watch for price changes to find the perfect pair according to the price change. The platforms provide pricing, among other indicators, to give you proper trading advice.
Bitcoin as shares
There are companies that have been set up to allow you to buy shares in companies that invest in bitcoin. These companies trade back and forth, you just invest in them, you wait for your monthly benefits. These companies simply pool digital money from different investors and invest on their behalf.
Why invest in Bitcoin?
As you can see, investing in Bitcoin requires that you have some basic currency knowledge, 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 advise, I would recommend investing in Bitcoin, because as Bitcoin continues to grow or there has been a significant boom, there is a good chance that cryptocurrencies as a whole will continue to grow. value growth over the next 10 years. Bitcoin is the largest and most popular of the current cryptocurrencies, so it’s a good place to start և the safest bet right now. While it is volatile in the short run, I doubt you will find that trading Bitcoin is more profitable than most other businesses.