The world of Cryptocurrency can be confusing and there is a lot to try and wrap your head around. If you are interested in investing in Crypto but want to have a better understanding of it first, then have a read through the following guide we have put together. We will cover Bitcoin and some of the concepts involved with it. We will also cover how you can begin investing, and what the pros and cons are. Read on to find out more!
What is Bitcoin?
Without a doubt the most popular and well-known form of Cryptocurrency is Bitcoin. Bitcoin was invented around 2008 by cryptographers and has grown massively in popularity ever since. Bitcoins are a form of digital currency and can be traded globally with other investors, as well as for goods and services. Bitcoins (BTC) are created and tracked by Bitcoin miners (we will cover this later in the post) and as it’s a universal currency, can be traded globally peer-to-peer.
Blockchains are what helps to make Bitcoin more secure. Each block holds data representing a transaction made. It is publicly accessible, and therefore allows anyone to see the history of transactions made with Bitcoins. The technology is highly secure, and makes it near impossible to commit fraudulent use of Bitcoins.
New Bitcoins are created through a process called “mining”. Computers have to solve complex mathematical problems in order to be rewarded with a new bitcoin. Mining is highly competitive, but also time-consuming and costly for those that attempt to do it. Its appeal lies in the fact that those that choose to mine and become successful can earn Cryptocurrency without having invested any of their cash in exchange for it. However, they need to have the technological equipment capable of carrying out such complex math.
Investing In Bitcoin And Other Cryptocurrencies
In order to begin investing in Bitcoin, you will need to set up an online wallet to store it in. Bitcoin wallets are highly secure and can only be accessed by you using your code. You will also be given an address for your wallet that allows others to send you bitcoins. You will then need to link your wallet with your bank account or PayPal. You can then convert your money in PayPal to BTC almost instantly, or directly from your bank account to begin investing. You can invest for the long term, or short-term depending on your investment goals.
If you want to try and make sure your investments are safer, then opt for long term investing. If you want the opportunity to see bigger gains and don’t mind taking some risk, then opt for short term investing. There are pros and cons for both so it will depend on your personal preferences as to which route you decide to take. You can also exchange your chosen Cryptocurrency for other forms depending on how they are performing. Make sure you keep an eye on the market and do your research before choosing who to invest with.