Introduction to Bitcoin: What Is Bitcoins?
If you want a safe way to buy goods and invest, you should start investing in bitcoin. If you need an introduction to bitcoin, follow this guide.
You’ve heard all about bitcoin, and several of your friends may have already invested in it.
With the astoundingly fast rise of bitcoin dominating financial headlines, perhaps you’re even thinking of investing in it yourself. The only thing standing in your way? You’re not exactly sure what bitcoin truly is.
In order to help you to better decide if this is a smart investment for you, or even just to sate your curiosity about bitcoin, we invite you to read this post. Think of it as a basic and straightforward introduction to bitcoin.
Ready to impress your friends with your knowledge the next time bitcoin comes up in conversation — and perhaps even make a great investment in the process?
If so, then read on.
What Is Bitcoin?
The first part of our introduction to bitcoin is all about helping you to understand what it’s all about.
So, what is bitcoin?
It’s a type of cryptocurrency — a digital currency — that was created in 2009 by someone using the alias Satoshi Nakamoto. It’s different than dollars or euros because it’s not actually “traded” or distributed through a bank. There’s no “middle man” here, and this lack of a central authority is one of the most famous things about it.
Instead, users can pay one another for goods or services directly and electronically. Transactions become completely peer-to-peer, avoiding fees and restrictions associated with third parties.
What does bitcoin look like?
While you might have seen illustrations of cold coins online, the truth is that it doesn’t really have a physical image, as it’s completely digital.
You can also store your bitcoin online in a digital “wallet.”
And instead of trading on the stock exchange, like traditional securities? Bitcoin works on what’s known as the “blockchain.” The blockchain is the sort of accounting ledger for this digital currency, and its completely decentralized, too. It keeps track of all the trades and purchases made using bitcoin.
Another way that bitcoin is different that Fiat currency?
There’s a finite amount of it — about 21 million bitcoins, to be exact. This means that bitcoin is valuable, in addition to being a cheap way to send money anywhere in the world with just a click of a button.
Plus, bitcoin can’t be manipulated by a third party or authority who will attempt to drive up prices for their own profit.
The Benefits of Bitcoin
Now that we’ve covered some of the bitcoin basics, let’s take a closer look at why so many people choose to buy and trade with it.
First of all, the privacy and control offered by bitcoin is a huge part of what makes it so popular. People like knowing that the banks don’t control their money.
They also love being able to keep most of their purchases private and anonymous. In fact, you don’t actually have to include any of your personal information in a transaction.
There are no bank holidays, and no fees (or at least, very minimal ones) to store your coins or spend them. You can also send your bitcoin anywhere in the world, and use it to buy anything you want (as long as bitcoin is on a vendor’s list of accepted payments.)
Of course, bitcoin is, for many, also an excellent investment. Not only will you be able to see a profit quickly, but you’ll also get interest on your investment.
With Bitcoin prices expected to continue to climb in the coming year, there’s no time like the present to start seriously thinking about investing in it.
How to Buy Bitcoin
Of course, one of the most important pieces of bitcoin information relates to how exactly you buy it in the first place!
The first step is to choose the right bitcoin wallet for your needs. Do some research on the best wallet for what you’re looking for — and make sure the focus is always on proper security.
You’ll fill out some basic information, and soon, you’ll have a safe place to digitally store your bitcoin. Although bitcoin isn’t standard Fiat currency, you can still use “regular” money to buy it.
You can use a bank transfer, or even a credit or debit card to purchase your coins. You’ll do so on what’s called a bitcoin exchange, like Coinbase, Luno, or Coinmama. Remember that, in addition to lots of bitcoin exchanges, there are also many different bitcoin currencies.
Take a look at your options and decide what works for you. If you’re just getting started, however, the classic bitcoin is probably your best bet. Then, link up your chosen payment method and buy as many bitcoins as you’d like to.
Now that you have some bitcoins to play with, start looking into different ways to monitor the exchange and make a profit. You might even decide to get into things like bot trading, so that you can get the best possible price.
An Introduction to Bitcoin: Wrapping Up
We hope that this introduction to Bitcoin has helped you to better understand how the famous cryptocurrency works.
While it’s certainly not right for everyone, those that do choose to jump on the bitcoin bandwagon have seen seriously competitive profits.
Looking for additional advice about how to make good investments and improve your finances in general? Want to understand more about the latest trends and topics everyone you know is talking about?
If so, then rely on our expertise and advice to make sure you always choose the best option for you. No matter what you want to learn about, you can certainly do it here.