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Thinking of Investing? Think the Bitcoin Way

What's Bitcoin?

If you're here, you've probably heard of Bitcoin. It has been one of the biggest frequent news headlines throughout the last year or so - like a get rich quick scheme, the end of finance, the birth of truly international currency, because the end on the planet, or being a technology which has improved the entire world. But what is Bitcoin?



In a nutshell, you could say Bitcoin will be the first decentralised system of money used for online transactions, but it'll probably be helpful to dig a little deeper.

Everyone knows, in general, what 'money' is and just what it is used for. The most significant issue that witnessed in money use before Bitcoin pertains to it being centralised and controlled with a single entity - the centralised banking system. Bitcoin was invented in 2008/2009 by a mysterious creator who goes on the pseudonym 'Satoshi Nakamoto' to take decentralisation to funds on a global scale. The thought is that the currency can be traded across international lines without difficulty or fees, the checks and balances would be distributed over the entire globe (rather than just on the ledgers of non-public corporations or governments), and cash would are more democratic and equally available to all.

How did Bitcoin start?

The thought of Bitcoin, and cryptocurrency generally speaking, was were only available in 2009 by Satoshi, an unknown researcher. The explanation for its invention would have been to solve the issue of centralisation inside the use of money which relied on banks and computers, an issue that many computer scientists weren't happy with. Achieving decentralisation continues to be attempted since the late 90s without results, so when Satoshi published a paper in 2008 providing a remedy, it was overwhelmingly welcomed. Today, Bitcoin has turned into a familiar currency for internet users and has given rise to thousands of 'altcoins' (non-Bitcoin cryptocurrencies).

How is Bitcoin made?

Bitcoin is manufactured through a process called mining. Much like paper funds are made through printing, and gold is mined from the ground, Bitcoin is made by 'mining'. Mining involves solving of complex mathematical problems regarding blocks using computers and adding them to a public ledger. If this began, a simple CPU (like that in your home computer) was all one necessary to mine, however, the level of difficulty has grown significantly and then you will need specialised hardware, including top end Graphics Processing Unit (GPUs), to extract Bitcoin.

How do you invest?

First, you must open an account with a trading platform and make a Monedero Ledger wallet; you will find some examples by searching Google for 'Bitcoin trading platform' - they often have names involving 'coin', or 'market'. After joining one of these simple platforms, clicking on the assets, and then click on crypto to select your desired currencies. There are plenty of indicators on every platform that are quite important, and you should be sure to observe them before investing.

Simply buy and hold

While mining will be the surest and, in ways, simplest way to earn Bitcoin, there is certainly too much hustle involved, and the cost of electricity and specialised computer hardware makes it inaccessible to most of us. In order to avoid all this, permit yourself, directly input the total amount you want from your bank and click on "buy', then sit back and watch as your investment increases based on the price change. This is called exchanging and happens on many exchanges platforms on the market, with the ability to trade between numerous fiat currencies (USD, AUD, GBP, etc) and various crypto coins (Bitcoin, Ethereum, Litecoin, etc).

Trading Bitcoin

If you're familiar with stocks, bonds, or Forex exchanges, then you'll understand crypto-trading easily. You will find Bitcoin brokers like e-social trading, FXTM markets.com, and many more that you can select from. The platforms provide you with 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 get the perfect pair in accordance with price changes; the platforms provide price among other indicators to give you proper trading tips.

Bitcoin as Shares

There are also organisations set up to allow you to buy shares in firms that invest in Bitcoin - these companies do the forwards and backwards trading, and you invest in them, and wait for your monthly benefits. These companies simply pool digital money from different investors and invest for the kids.

Why should you spend money on Bitcoin?

As you can see, investing in Bitcoin demands that you have some basic understanding of the currency, as explained above. Like all investments, it calls for risk! The question of if you should invest depends entirely on the individual. However, basically were to give advice, I'd advise in favor of investing in Bitcoin using a reason that, Bitcoin grows - although there has been one significant boom and bust period, it really is highly likely that Cryptocurrencies in general will continue to rise in value within the next 10 years. Bitcoin is the biggest, and a lot well known, of all the current cryptocurrencies, same with a good place to begin, and the safest bet, currently. Although volatile for a while, I suspect you will find that Bitcoin trading is a lot more profitable than almost every other ventures.



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Ladefoged WilliamsLadefoged Williams
Joined: February 22nd, 2021
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