You may have heard about Bitcoin as a digital currency that skyrocketed in price in 2017. But what do you think Bitcoin is and how does it work?
Bitcoin first became available to the public in 2009 and is regarded as the first established cryptocurrency in the world. The creator of Bitcoin is anonymous and known as Satoshi Nakamoto. The idea behind creating it was to remove all the third-party intermediaries required to conduct digital cash transfers. At the time of creation, it was decided that there can only ever be 21 million Bitcoins.
It operates on a decentralised network and the transactions are recorded in a public log where users can remain anonymous in the network with encrypted keys. Transactions can be made with no middleman. Using bitcoin technology is safer than banks as they rely on passwords and crypto wallets that are susceptible to theft.
How are Bitcoins created?
Bitcoins are “mined” by solving complex maths puzzles. It is not as easy as it sounds, and it takes a lot of computing power and electricity. A new Bitcoin gets created every 10 minutes.
Why should you invest in bitcoin?
A glance at the bitcoin price graph can detail how it is both valuable and unprofitable. Therefore, bitcoin can be a great investment opportunity for those who are not afraid of a minor risk. But do not worry, as it generates a profit larger than any other asset.
If you are trading on a short-term basis, manage your risk. It takes only 5$ to 10$ to invest in bitcoin. Some cryptocurrency trading apps accept even less than that.
How to invest in bitcoin?
There are a variety of ways to invest in bitcoins. There are cryptocurrency brokers who take the complexity out of purchasing bitcoin. Cryptocurrency exchanges tend to give the best exchange offer and give competitors prices. There are financial applications that now allow trading bitcoin.
Deposit cash in any of your accounts and wait a few days before you can invest to buy bitcoin. Once there is money in your account, you are now ready to invest in your first bitcoin order, look for the BTC and figure out the risk and profit of investing in it and you are now ready to be a bitcoin holder.