What is Bitcoin?
Bitcoin is a decentralized peer-to-peer digital currency system designed to enable online users to process transactions through a digital exchange unit called bitcoin. In other words, it is a virtual currency.
The Bitcoin system was created in 2009 by an undisclosed programmer. Since then, Bitcoin has gained widespread attention and controversy as a substitute for commodity currencies such as the US dollar, the euro and gold, and silver.
Prior to 2009, Bitcoin did not attract much attention in the commercial and financial sectors. During the period 2011-2012, Bitcoin gained more than 300% attention and therefore stood out. Since August last year, the value of Bitcoin has increased by 400%. As a result, venture capital firms and investors around the world continue to value this cryptocurrency.
In the first half of 2014, venture capital firms invested $57 million in bitcoin in the first quarter, and then invested $73 million in the second quarter, totaling $130 million, a 50% increase over the $88 million in the same period last year. . This is in stark contrast to the situation in 2012, when Bitcoin accumulated a relatively negligible $2.2 million.
These statistics undoubtedly prove that Bitcoin is worth your investment, which raises the question of how do you buy and invest in Bitcoin?
Bitcoin Newcomer Investor Guide
The easiest and easiest way to invest in Bitcoin is to buy bitcoin. There are many mature companies, mainly in the United States and abroad, engaged in the business of buying and selling Bitcoin [abbreviated as BTC].
If you live in the United States, Coinbase is the place to be. Coinbase's price estimate for its customers is 1% higher than the current market price. US residents can choose to synchronize their Coinbase wallet with their bank account. As a result, future payment transfers become carefree. The company also offers you the option to automatically purchase Bitcoin from time to time. For example, if you are interested in buying $50 in bitcoin at the beginning of each month, Coinbase allows you to set up an automatic purchase for that amount.
Please be aware of the terms and conditions before you start using this service. If you have subscribed to the automated Bitcoin service, you will not be able to control the price of BTC purchased each month. Please note that Coinbase cannot be used as a bitcoin exchange, ie you buy and sell coins directly from the company. Because companies must buy coins from other buyers, you may face delays or interruptions when placing orders in fast market changes.
BitStamp is suitable for regular bitcoin exchange requirements. Bitcoin is an intermediary that allows you to trade with other users than with the company itself. The mobility here is high and you always have a good chance to find someone who is willing to deal with you. The initial fee is 0.5%, and if you trade $150,000 within 30 days, you can reduce it to 0.2%.
Alternative to buying bitcoin
Exchange is not the only way to invest in Bitcoin. Local Bitcoin is typically used to purchase BTC offline. The site is designed to link potential buyers and sellers. Bitcoin is a locker provided by the seller in the case of a third party custody and can only be issued to the buyer.
Buying bitcoins offline is not always reliable or secure. Therefore, it is best to meet with the seller during the day and ask friends to mark with you in case something develops to the south.
Bitcoin is not just a modern trend. In the long run, venture capital firms believe that Bitcoin can be a good substitute for traditional currencies. There are many ways to get into the Bitcoin investment area. As mentioned earlier, Coinbase, BitStamp and local Bitcoin are the most popular channels for investing in Bitcoin in the United States. Do your homework and find out which way to tick all your boxes.