What is Bitcoin?
Bitcoin is a decentralized, peer-to-peer, digital currency system designed to allow online users to make transactions through a digital exchange unit known as Bitcoins. In other words, it is a virtual currency.
The Bitcoin system was created in 2009 by an undisclosed programmer. Since then, Bitcoin has caused a great deal of attention and controversy as an alternative to commodity currencies such as the US dollar, the euro and gold and silver.
Rise in popularity
Bitcoin did not attract much attention in the business and financial world before 2009. It became popular in 2011-2012 when it earned more than 300%. Bitcoin has grown in value by 400% since August last year. As a result, risk companies and investors around the world continue to pay attention to cryptocurrency.
In the first half of 2014, risk capital firms invested $ 57 million in Bitcoin in the first quarter, and $ 130 million in the second quarter, valued at $ 73 million, up 50 percent from $ 88 million last year. This is in stark contrast to the 2012 scenario in which Bitcoin firms raised a relatively small amount of $ 2.2 million.
These statistics definitely prove that Bitcoin is worth your investment, which begs the question, how can you buy and invest in Bitcoin?
A guide for inexperienced investors in Bitcoin
The easiest and least complicated way to invest in Bitcoin is to buy bitcoins. There are many established firms engaged in the purchase and sale of bitcoin, abbreviated as BTC, mainly in the US and abroad.
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If you live in the United States, Coinbase is the place you are looking for. Coinbase offers its customers an estimated BTC of up to 1% of the current market price. Residents of the United States have the option to synchronize Coinbase wallets with bank accounts. As a result, future payment transfers are made without problems. This company also allows you to buy bitcoin automatically from time to time. For example, if you want to buy $ 50 in bitcoins at the beginning of each month, Coinbase allows you to make automatic purchases for that amount.
Please note the terms and conditions before using this service. If you subscribe to the automatic bit coin service, you will not be able to control the price at which BTC is received each month. Note that Coinbase does not act as a Bitcoin exchange, ie you buy and sell coins directly from the company. Because the firm must obtain coins from other buyers, you may experience delays or disruptions when ordering during rapid market movements.
BitStamp meets the requirements of an ordinary bitcoin exchange. Bitcoin acts as an intermediary that allows you to trade with other users, not with the company itself. Liquidity is higher here and you always have a good chance to find someone who wants to trade with you. The down payment is 0.5%, which can be reduced to 0.2% if you trade $ 150,000 over 30 days.
Alternative ways to buy bitcoins
Exchange is not the only way to invest in bitcoins. Local Bitcoins are often used to buy BTC offline. The website is designed to connect potential buyers and sellers. Bitcoins are a locker deposited by the seller and can only be issued to buyers.
Buying bitcoins offline is not always very reliable or secure. Thus, it is preferable to meet with vendors during the day and be allowed a friendly label with you if things are going south.
Bitcoin is not just a modern trend. Enterprise capital companies see Bitcoin as a replacement for the traditional currency in the long run. There are secret ways for you to enter the Bitcoin investment field. As mentioned earlier, Coinbase, BitStamp and Local Bitcoins are the most popular channels for investing in bitcoin in the United States. Do your homework and find out which avenue all your boxes are on.