
Bitcoin is the most influential and well-known currency out there, but there are always newcomers who found out about its existence not that long ago. If you’re the one looking for some information on the topic, you are more than welcome to skim the guide quickly and study something that can probably change your lifestyle and make you a bitcoin amateur (or who knows, hater).
A Brief Introduction to Bitcoin
Bitcoin is a peer-to-peer (P2P) e-payment system launched in 2019 by an anonymous developer called Satoshi Nakamoto. Nobody knows who’s hiding behind that pseudonym, so people still wonder who that mysterious guy is.
If you have an internet connection, you can access the Bitcoin network by downloading a cryptocurrency wallet and purchasing some bitcoin on a crypto exchange. Store, send, and receive money over the internet without a financial intermediary, such as a bank or online payment provider. The technology behind the currency makes it possible to enjoy decentralized finance. The only issue is that bitcoin is not that cheap, to put it mildly.
Why Is Bitcoin Popular?
Bitcoin was a real breakthrough for many people promising to get rid of authorities and centralized financial institutions.
It made a way from being a kind of an internet fad to a serious alternative investment asset popular among large companies, institutional investors, and individuals.
Such giants as Square, MicroStrategy, and Tesla have bought a lot of bitcoin in the last few years as a shield against inflation and to potentially generate a higher ROI (Return on Investment) than traditional assets.
Main Reason for $BTC popularity:
1. Low fees
Traditional payment methods such as banks have higher transaction fees. So Bitcoin attracts people with minimal costs. That especially comes when you pay to buy items or pay for services online.
2. Decentralized
Many people became Bitcoin fans because it doesn’t have official authority. Thanks to it, this cryptocurrency remains stable even if a country goes through tough economic times. For some investors, Bitcoin is a good tool for protecting their capital. That’s possible because a person can convert fiat money into Bitcoin and then hold on to it until the traditional currency stabilizes.
3. Easy to use
Using Bitcoin is getting easier thanks to its wide adoption by many online and offline businesses. Today, many websites accept this cryptocurrency as a payment method. Such prominent companies as Microsoft, Wikipedia, and day-to-day services like KFC, Subway, Norwegian Air, and others.
There are also crypto debit cards launched by Coinbase, BlockFi, Crypo.com, etc. You can check the best ones here.
Bitcoin is still in the adoption stage, but it’s getting much more common as time passes by and people are get used to the e-money concept. There is a really convenient option to store your $btc in a simple wallet that gives you access to all your crypto funds in an easy way.
Find out more on where to spend your crypto in this article.
4. Security
Paying with Bitcoin allows you not to share your personal data with anyone. To make a transfer, you only share your digital wallet address. On top of that, your wallet is strongly protected with a private key. Nobody can use your wallet unless they know that key.
5. Looks like it’s our future
People who are into innovations are into bitcoin, as well. Some people truly believe that cryptocurrencies will replace fiat or regulated currencies. They use bitcoin as a way of adapting to technological innovation.
6. Ease of Getting Bitcoin
It’s rather easy to buy bitcoin nowadays, as you just need to find a crypto exchange and get it from there. But you can also mine $BTC, although the process is rather complicated, as it involves a lot of computing power and solving difficult math problems. For this, you must have powerful hardware and be ready to get high electricity bills.
How to Start Bitcoin Trading?
To trade Bitcoins, you need to take the following steps:
- Create an account on a Bitcoin exchange (e.g. Coinbase, Binance, Kraken, Gemini, etc.);
- Confirm your identity;
- Top up your account with money;
- Open your first position on the chosen exchange.
How to Start Bitcoin Investing?
As for investing, you need to have:
- Personal identification documents;
- Bank account information;
- A steady internet connection.
How to Invest in Bitcoin in 5 Steps
- Pick a Bitcoin Exchange;
- Get a Bitcoin Wallet;
- Connect Your Wallet to a Bank Account
- Place Your Bitcoin Order
- Manage Your Bitcoin Investments
Where to Store $BTC?
The most simple and on-the-go option to use cryptocurrency is to have a crypto wallet, which can be a hot (e.g. simplehold.io) or cold one (Ledger, Trezor). Hot wallets are connected to the Net, and they are online wallets. The cold ones are factual gadgets that remind a USB drive and are considered to be the safest.