Bitcoin might be the worlds most talked about cryptocurrency, but the concept still sounds surreal to a number of people. This post is to change that. Here is all you need to know before buying bitcoin.
Bitcoin is an intriguing, complex yet profitable currency that was built online and has its power confined within the internet. If you are new to Bitcoin or cryptocurrency in general, it may seem like a tricky, yet intriguing venture. It is, quite alright. However, some of your fears can be dispelled.
The teaching of bitcoin is much more complicated for all you need to know before buying bitcoin than we’ll get into today, but let’s head into the basics.
Bitcoin is a currency that is created to pay for goods and services, just like naira, dollars, etc. However, differences exist. Unlike these currencies, Bitcoin is:
Decentralized: There is no government or bank that handles this currency supply. In fact, the owner of Bitcoin remains an unsolved mystery.
Online: Bitcoins is not an actual coin. It cannot be physically seen or felt. The currency is strictly online and all transactions are carried out on the blockchains. Here, records and all history of each bitcoin are kept.
Pseudo-Anonymous: Bitcoins are tied to a wallet ID rather than your personal information. However, this does not mean it is completely anonymous.
Bitcoin came to be by someone who is referred to as ‘Satoshi Nakamato’, whose existence is completely unknown. This person published a paper discussing how bitcoins could work. A year after the publishing of this paper, it started being traded and mined.
A factor contributing to the popularity of bitcoin is the lack of middlemen and all transactions bereft of bank charges or fees. As it is a digital currency, your wallet ID is what is used in transactions. No extra details are needed.
You Can Buy Bitcoin with Money
Yes, you can use your currency e.g. naira to buy bitcoin. First of all, you need a bitcoin wallet, which is where your wallet ID is gotten from. Here, you store your bitcoins. It works exactly like an actual wallet.
No Agency Regulates Bitcoin
When considering investing in bitcoin, be aware it is not the same as investing in the stock market. Also, having Bitcoin in your wallet is not the same as having money in your bank account.
The volatility of bitcoin also occurs as a result of its unregulated nature. If you are not prone to taking major risks, investing in bitcoin may not be for you.
Demand Is High
Bitcoin’s supply is very finite. After the year 2040, there will be no production of Bitcoin. This makes it very scarce and at the same time has a lot of people needing it.
Buying and Holding Bitcoin
Investing in bitcoin means buying and holding it for as long as possible. As with other forms of investment, it is advised you never invest more than you can lose. This is true about bitcoin as it is a very risky investment.
A thing that should be noted is buying bitcoin should only be done with exchanges that are reputable like Cardtonic. On this platform, you can buy bitcoin then sell to them for a very high rate. This is another tip to invest in bitcoin.