Back in 2013, the world was taken by storm when Bitcoin soared from practically nothing to a whopping €1,200, making millionaires out of its unsuspecting holders. From then on, many have followed its story from uncovering the identity of its creator, the rise and fall of its value, to debates about its future. However, how much do you know about Bitcoin?
Satoshi Nakamoto created Bitcoin in 2009 but the creator vanished before the cryptocurrency took off. As of now, 1 BTC has a value in excess of €7,000. In the most basic sense, it is the Internet’s version of money that allows peer-to-peer transactions. This means that one person can directly send money to another without a third party.
Unlike fiat money that is distributed by a state, BTC is formed by mining. It is a process of recording and verifying data on the digital record known as the blockchain. This involves computers in solving complex math problems. This computer power then lets miners get paid out in the resulting transactional fees.
A deal made with Bitcoin has both a public key known to everyone and a private key that only the user knows. This makes BTC secure and easy to use in any condition. Moreover, because there’s no need for third parties, BTC purchases are not taxed and it’s transaction fees are low.
Remember that you can get your share of Bitcoin paid out to you as a pure cash reward with no strings attached, just by logging onto your Bitcasino account.
You can now make transactions in a variety of places, both online and offline. A few of the major retailers that are now accepting Bitcoin are Microsoft, Overstock, and Namecheap (to name a few). Now, you can even travel using Bitcoin with Expedia.
Storage is vital to having Bitcoin. Owners are responsible for their own BTC because there’s nobody to call to get it back once it is lost. BTC storage can be split into the following goals:
The most common way of keeping BTC is through digital wallets. There are different kinds of digital wallets to cater to specific needs. The most recommended platform is Coinbase because of how easy it is to buy, sell, and hold cryptocurrencies.
Cold storage is also a means to stash BTC. Bitaddress.org is a popular tool that can securely generate one or more Bitcoin addresses for offline use or for secure offline storage.
Owners are urged to have their wallet generate a seed phrase that is a list of words containing all the data needed to recover Bitcoin funds on-chain. This seed phrase should then be saved on paper and stored in one or multiple secure places. Moreover, the wallet should be backed by the owner’s full node.
Being that a single Bitcoin has high value nowadays, it can be rather daunting to buy a coin. However, you can have Bitcoin by simply buying a fraction of the coin. There are a couple of ways to get BTC.
If it’s your first time buying BTC, you will need a Bitcoin wallet before you can use a traditional payment method such as debit and credit cards or bank transfer. You can buy Bitcoin from online marketplaces called exchanges that connect you directly to the BTC marketplace. Besides Coinbase, other popular exchanges are Coinmama and Gemini.
There are also Bitcoin ATMs popping up all across the world. Coin ATM Radar can help you find the closest machines in your area. Some peer-to-peer (P2P) exchange services like Local Bitcoins provide a more direct connection between users.
Have BTC in your wallet? Great! Now, it’s now time to raise its portfolio value. You can do this by making your first investment. Take your time and find the right exchange with the best fees. Online communities centered in BTC will help you in doing so.
Keep in mind that BTC is not a stock. You have no control over its fluctuations and get no dividends. Your cryptocurrency investment strategy must have diversification and be updated with developments and price actions. Best of luck with the crypto journey ahead.