Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is a cryptocurrency used for online transactions. Bitcoin is also used in marketplace exchanges for altcoins and other currencies. Eventually, over time companies would add Bitcoin as another form of currency. Bitcoin can be used to buy physical goods or be converted into fiat currency.
Why Bitcoin Is So Popular?
The purpose of Bitcoin is to eliminate the middle man. Bitcoin is decentralized and is a means of true peer-to-peer transactions. This means you don’t need to ask a bank for permission to send and receive money. When Bitcoin first emerged on the scene, it was worth only a few dollars. Fast forward to today, Bitcoin is worth over $10,000.
Bitcoin is broken down in Satoshis which are small units that create 1 whole Bitcoin. For example, today if you were to purchase $100 worth of Bitcoin (at the value of $10,000), you would only receive 0.01 BTC. Whereas $1000 worth of Bitcoin is 0.1 BTC and $10,000 worth of Bitcoin is 1.0 BTC.
Bitcoin can also be looked at as digital gold. Some people purchase and HODL (hold) Bitcoin for a chance of the coin going to $100K or 1 Million dollars. Others use Bitcoin as their primary means of buying and selling. Because Bitcoin offers anonymity, you can send and receive money to anyone around the world and don’t have to worry about regulations that are tied to certain governments.
How To Store Bitcoin
Before you can actually get involved with Bitcoin, you need a means of storing it. With physical cash, you need something called a wallet. For Bitcoin, you need a Bitcoin Wallet. This digital wallet will allow you to store Bitcoin. This wallet comes with a unique Bitcoin Address that gets used for receiving funds. The person you send money to will also have their own unique Bitcoin Wallet address as well.
There are a few ways of acquiring Bitcoin. After carefully reviewing each method listed on this page, you may decide which one is more comfortable using or may consider all methods which can be used in their own unique way.
Buy Bitcoin Using Apps and Services
You have the option of purchasing Bitcoin using Apps like CashApp, Coinbase, and Gemini. The pros of this method are speed and convenience. Instantly purchase Bitcoin which will be available in your account to HODL or spend. Because you are using a companies app or platform, there is KYC (know-your-customer) involved where you will have to supply personal information to identify yourself.
Buy Bitcoin on an Exchange
This option of acquiring Bitcoin is more popular because you can use other forms of cryptocurrencies to exchange with. There are quick exchanging platforms like Changelly where you can either buy Bitcoin with your local fiat currency or you can exchange to Bitcoin with altcoins such as Ethereum, Litecoin, Dash, Zcash, Monero, and more. Other platforms like Binance & Coinbase Pro allows you to exchange by Trading from one currency into another.
Platforms like Binance and Coinbase Pro allow you to earn profit by trading your Bitcoin for another coin that has the potential for growth. You can also trade altcoins back to Bitcoin and earn a profit that way as well. It’s best to understand marketing conditions and have trading experience before proceeding.
Another way to earn Bitcoin is by mining it. You can mine Bitcoin using ASIC mining machines that overtime generates you a profit. ASIC machines are loud and cost a decent price to own. Other alternatives are mining with your computer. Though this method is free, profit generation is a lot slower. You will have to depend on computer speed and GPU power.
Another option that is popular for many is cloud mining. You are basically renting machines or hash power from a company, in return, you get a profit. Depending on the company, you are offered a contract that includes how much hash power is lent to you for a duration of time. When that contract expires, you may reinvest or purchase a new contract.