We all have heard the buzz about Cryptocurrency, and it has definitely made us all eager to know more. Anything new in the industry, and we all want to know the WHY, HOW, and WHERE. Cryptocurrency has been one of the most popular topics of discussion across the globe since its launch and Bitcoin tops the list.
From financial nerds to the commoner, everyone is eager to know what the buzz around Bitcoin is about. For the readers scrolling through this article, we have it sorted for you!
Before we answer the complex question about if you should invest in Bitcoin or not, let us first understand Bitcoin a little better.
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Bitcoin is currently the most popular crypto in the market. It is so much talked about that some people use it as a synonym for crypto. The reason it has gained so much momentum is that it was the first-ever digital token that was launched in 2009. It has gained so much trust in the past few years that the government of Salvador has declared it a legal tender in their state.
How Does Bitcoin Work?
Bitcoin uses blockchain technology which is a type of digital ledger. It is decentralized in the sense that no one authority or bank supervises its trade. Issuing of bitcoins and their trade is carried out collectively by the network. There is no one person who can claim to be the owner of Bitcoin. Its design is public, so anyone interested may buy, hold, and sell the crypto.
Since it is a digital currency, you cannot physically possess it. Therefore, you get the ownership of a private key that ensures that your crypto is safe. Each bitcoin purchase generates a private key that you should store with due care.
The technical term for a bitcoin transaction is bitcoin mining. The term mining is assigned because the process is very much like the real-life mining process. In this extraction method, computational algorithms become a part of a challenging mathematical puzzle. So when one puzzle gets solved, one mining block is mined, and the user or programmer receives a reward which is Bitcoin.
Where to Buy Bitcoin?
You can easily buy Bitcoin through the various cryptocurrency exchanges. I personally recommend the Best Crypto Exchange Australia for transparency and safety. Besides the crypto exchanges, you can also get them from brokerages, peers, and payment services like Paypal. In order to buy Bitcoin, you will have to produce some identification documents.
After you have purchased the Bitcoin crypto, the next important step is to store it safely. A crucial thing to mind when creating a cryptocurrency exchange account is to use safe internet practices. It would include using two-factor authentication and creating a strong password that is unique and long, including a variety of lowercase letters, capitalized letters, special characters, and numbers.
Should You Invest in Bitcoin?
The digital world is not free of scams or phishing. It took all of us time to get used to digital payments and online transactions. However, due to the Covid-19 virus, the word Online Payment doesn’t scare us anymore.
Your decision to invest in a digital currency would depend upon a lot of things. However, we have tried to list down the important facts about the crypto investment that will help you choose better.
First of all, Bitcoin is quite a safe investment option as it is encrypted using a technology called cryptography that makes it almost impossible for anyone to duplicate it or misuse it in any way. We recommended Bitcoin SV if you really care about your money.
This currency is considered the future of money and hence is a very valuable asset. To ensure safety to the traders, Bitcoin uses blockchain technology which is one of the most foolproof technologies to secure payments.
Now the question arises are these currencies a good investment?
Let us unfold that mystery too.
An eminent figure in the financial world – Warren Buffett compared bitcoin to paper checks: “It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?”
While it has received criticism and speculations, the currency has been praised for transparency, security, portability, and resistance to inflation. So far the currency has been gaining value and investors but it is at the same time difficult to predict the future of the currency.
To begin with, you will need to have a wallet on an online app, you create an account and then you can transfer real money to buy Bitcoin. Here it is important to remember that cryptocurrency is a volatile investment and if needed the currency can be converted back into money at exchange centres.
However, as an investor, you must understand that Bitcoin is a long-term investment portfolio. It took the crypto several years to gain stability and rise up, yet it is still a very volatile investment, however profitable if you can trade well and understand the rules.
So like any other investment plan, Bitcoin has its own set of pros and cons. Investors need to choose wisely and understand clearly before taking any decision and investing their hard-earned money digitally.
Hence, play safe and decide cautiously.