If you have not heard about cryptocurrency, you must be living under a rock, because cryptocurrency is the hottest investment asset in the modern financial markets. Crypto Trader is actually a virtual currency designed to act as a money or payment option that we use traditionally but is controlled by decentralized systems. Meaning it is not controlled or regulated by any one person, group, or entity.
This article will focus on one particular cryptocurrency of all 6000-7000 listed and that is Bitcoin. Introduced in the year 2009 by an anonymous developer or a group of them going by the name “Satoshi Nakamoto”.
However, Bitcoin can be tricky to invest in if you don’t understand the nitty-gritty of the Bitcoin industry. This blog will act as a detailed guide on the top factors you must know before investing in Bitcoins to make money.
What is Bitcoin?
Money has been changing forms all throughout the history of human civilization, from barter systems to gold, metals, and paper, and now digital currency has entered into the scene. Bitcoin has become the most well-known cryptocurrency in the world since its introduction in the year 2009 by Satoshi Nakamoto. We don’t know the real identity of its developer or the group of developers from the beginning.
However, we have seen the rise and fall of these currencies. At present time cryptocurrency is on the rise, and Bitcoin is the world’s largest cryptocurrency by market capitalization.
Mining and buying cryptocurrency
On Jan 3, 2009, block no. 0, or the genesis block- the first Bitcoin was mined. But what is Bitcoin mining? It is the process of creating new Bitcoins by solving extremely complicated mathematical problems. In the beginning, it was possible to mine Bitcoin on a personal computer by a single person. But today, the mining network is so huge that generally around 220 quintillion hashes are generated per second. It is now next to impossible to mine it by a single person on a personal computer.
However, mining is an extremely complicated process, so the Bitcoins that are already mined and circulated in the network can be purchased in the market by using a cryptocurrency exchange.
Things to keep in mind before buying Bitcoin
Everyone wants to own Bitcoins attracted by its high valuation. Everyone wants a piece of this pure treasure called Bitcoin. It’s trendy. But first-time Bitcoin buyers can face difficulties in understanding the nitty-gritty of this system. Therefore, you need this thoroughly researched guide on the things you must keep in mind before you invest in Bitcoin.
- You don’t necessarily need to buy an entire Bitcoin:
The first misconception that most newbies have while entering the Bitcoin world is that they have to buy an entire unit of Bitcoin. In reality, Bitcoin is very much divisible to eight decimal places. You will find one hundred millionth of a Bitcoin. These smaller units are called “Satoshi”, named after the creator of Bitcoin. So, a trader can buy fractions of it too which will cause them a minimum amount of investment.
- Protect and safely keep your password:
In general, cryptocurrency exchanges keep everything extremely secure when it comes to avoiding theft and breaches. Cryptocurrency exchanges keep purchased Bitcoins in cold storage, which is not connected to the internet in any way. Typically exchanges provide an insurance policy to guard your Bitcoins against large-scale theft.
However, you can’t do anything if your personal account gets breached. If someone uses your phone or your password to enter your account and authenticate a transaction, it will be gone for good. Once a Bitcoin is stolen from your account, there’s no way to get the Bitcoin or your fund back. So, use an extremely strong password and take the security of your account seriously.
- Ways to store Bitcoin:
You can have various options as to where you want to store your Bitcoin because it is necessary to make these valuable assets safe from online hacking. You can leave it in the account of the exchange you bought it from or you can use a cryptocurrency wallet instead. If you are worried about the security of your Bitcoin, you can choose to store it in a hardware wallet, like a specialized hard drive that isn’t connected to the internet.
- Research, verify, and validate:
Bitcoin is a huge investment, and like any sane person, you must research the heck out of it. Enter the Bitcoin world with adequate planning, research, and knowledge. For knowledge about cryptocurrency, you can take a look at its whitepaper, which tells everything you need to know about digital currency. You can get all those information on educational platforms, too, if the whitepaper sounds a little too complex to you, forex: supervise, the coin switch blog, etc.
Conclusion:
If you want to start trading Bitcoins to make money then you can check out platforms like Ethereum Trader where you will have several other currencies too like Ethereum to include in your diversified crypto investment.
