Bitcoin or BTC is a cryptocurrency payment system that was created by Satoshi Nakamoto. It is a software based currency, it was originally unknown then later released to general public in 2009, and over the last few years it has attracted lots of attention in the financial world. Ever since, Bitcoin has undergone upgrades and improvements by a network of developers.
Investing in Bitcoin has never been easier due to the wide spread interests, one has to understand that investing in Bitcoin is different from ordinary investment like stocks, and bonds. It is essential to know the risks before buying.
Creating a Wallet and Buying Bitcoin
The first step you take to BTC investment is creating a Bitcoin wallet. This a digital account that make buying, selling, and storing your BTC fairly easier. It is like a checking account, could take less than a minute to set up, it can be done online and very easy.
Once you have created your wallet, you would need to link it to your real-world bank account (like PayPal), so as to be able to buy Bitcoin. It is not any more of a personal security risk than it is to shop online. After bank account verification it should be easy, and straightforward to start buying BTC and storing it in your wallet. Coinbase.com, blockchain.info, and hivewallet.com are a few reputable sites to get a wallet for beginners.
Buying with Bitcoin
You can use your BTC and purchase goods or services from retailers who accept it. in recent years, more businesses have begun to accept Bitcoin as an alternative form of payment, this shows the acceptance and commitment to crypto currency in the world.
Profiting From Your Investments
Making gains with BTC is not that different from making gains with real world commodities like stocks. You would have to buy at low exchange rate and sell at a higher exchange rate. One would have to be up to date with BTC market trends, it is one of the best ways of make money from a Bitcoin investment is to monitor the market trends, because the market fluctuates very rapidly, spike opportunities could appear and disappear in a matter of days, or even hours. It is therefore advisable to keep a close eye on the market.
To sell the BTC you would have to sign up with an online BTC marketplace. It is very easy, here on the market place you will see people around the world who are ready to offer services, buy, or sell BTC. Alternatively one can decide to sell BTC on an exchange site. These sites work as an escrow service or a sort of intermediary, withholding money and BTC until the parties involved are verified, then the transaction is completed. This method is relatively slower, and there is a small fee for transactions made.
Bitcoins are created from a very complex and complicated computer process called mining. It is a process where your computer has to compete with other miner PCs, to solve complex problems. If your computer solves the problem first you are awarded with a predetermined number of BTC. This is a form of getting Bitcoin without paying real cash for it, though a substantial investment would need to be made in purchasing the specialized hardware (computer) used for mining.