Crypto MarketMarket

B for Beginners, B for Bitcoin

Let’s face it: with the increase in digitalization of every aspect of your life, how can investment stay behind! Cryptocurrency being the craze these days has captured the attention of investors worldwide. And for someone who wants to try their hand in their investing in bitcoin, it can be a bit frustrating not having enough knowledge! So here we are to guide you through the journey of investing in bitcoin.

Let me introduce you to Bitcoin. It was the very first established cryptocurrency, i.e., it is a digital asset that is secured with cryptography and can be exchanged like paper currency. In other words, Bitcoin is what paper currency is, but in the digital world: A digital currency. One important thing to know is that Bitcoin, unlike physical currency, isn’t controlled by a Centre. Like a gem, gets mined, and uses blockchain technology and encryption keys to connect buyers and sellers.

Now the other question that might strike you is how to mine these Bitcoins?

Is there really a place, where you will have to go digging? Well, metaphorically speaking, there is such a mine. Extremely powerful, energy-intense computers- mine Bitcoins to make more of them. With the limit total of 21 million, and 16 million Bitcoins already found, around 5 million Bitcoins are left to be taken out of the ground. The mining process of Bitcoiin involves computers solving challenging mathematical problems that get harder over time. Every time the computers find a solution to the problem, one block of Bitcoiin is processed and the miner successfully gets a new Bitcoin. This Bitcoin is delivered at a Bitcoins address put up by the user, an address or directory of your Bitcoiins with a string of 27-34 numbers and letters. However, the identity of the user will not be listed in this address. The option of dividing the Bitcoiin into smaller parts with the limit of division being at one hundred million is also available.

Now apart from mining a Bitcoiin, you can own it in different ways. First is accepting it in a form of payment. Setting up a Bitcoiin account is similar to setting up an account on an online payment app. Once you have an account you can accept payment in the form of Bitcoins in exchange of goods and services. There are also some websites that pay you in Bitcoiin for completing certain tasks. Once you own Bitcoiins, you can also lend them and earn interest and become a digital lender, and needless to say, I think that sounds cool. You can also trade your regular currency for Bitcoiin at Bitcoiin exchanges. In short, with Bitcoiin, you have the equivalent of a digital currency that you can use to make purchases, sell things, lend and earn interest on, something you would do normally with physical assets. Before investing in them, however, being aware of the risks is equally important. Bitcoin is a newer industry and with the anonymity that Bitcoiin users have, it can also harbor problems. Bitcoiin has always been appealing to criminals due to the very aspect of decentralization. Connecting the same dots, we have difficulties in tracking Bitcoins in case they get lost or stolen. This might be a necessary point to note, especially if you are having it in exchange of a good you are selling, or buying Bitcoiin in Bitcoiin exchanges. With the rapid and volatile fluctuations in its price value, Bitcoiin might be a risky choice for many, but if you decide to jump the gun and invest in Bitcoiin over a considerable amount of time, you might be the recipient of some great returns. Every decision however, is advised to be taken after being completely aware of the returns and risks.

Also Read: The amalgamation of Traditional Finance and Cryptocurrency

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