When you want to make an investment, you will, of course, need to do your own research to make sure that whatever you are investing in is worth your money and your time. One of the biggest investment windows in the world today is shares and related fields like real estate. The internet, however, has provided a new way of investment giving vast opportunities never imagined before. Blockchain technology has become like the internet of the modern world providing security for crypto currency investment. Cryptocurrency can be seen simply as digital currency. The blockchain is secured using cryptography with each block containing its own hash connecting it the previous block. There is no way of altering anything on the blockchain, a feature that makes it the most secure internet technology.
The concept of blockchain technology was not actualized for a long time until Satoshi Nakamoto, not much is known about him, realized it in 2009. Bitcoin was born then giving providing to all transactions a public platform. This invention was revolutionary one in solving the double spending problem by eliminating centralization. More and more people and application developers have been motivated since to try it though many still don’t fully understand it. Banks and financial institutions, in particular, have discovered the greater importance of this technology. In this article, we put our focus on bitcoin and answer the most important questions. What is bitcoin? How does it work? What are the risks involved? How can one invest in Bitcoin cryptocurrency? This article gives a head start to a new investor to be able to make a decision. One thing to understand is that you do not need to be an investment. We give you the basic background information that will help you make a great decision.
What is Bitcoin?
Imagine a place where transactions are made without a middleman; example reserving hotel booking or buying something online. You get paid directly to your account using a digital currency. Banks have been for long acting as middlemen for online transactions. Today a new currency that was created in 2009 makes it possible to make transactions without the need of such. That currency is Bitcoin. The feature that has made Bitcoin even more famous is that it has given people an opportunity to invest in it through trading, creating riches for many.
How does it work?
Bitcoin exchanges allow people online to buy bitcoin ICO using currencies that differ. They can also sell the coins using same currencies. There is a completion for people to “mine” bitcoins in a process termed as mining. They use computers to solve puzzles and get rewards. Every ten minutes a winner is awarded. In 2017, the value of bitcoin was at its pick.
How to get bitcoins
Think of it as having a wallet that exists on your computer. This is like a virtual account, it allows you to buy or sell goods without physical contact with the currency, or the other party. It is like having your own bank that is anonymous. There is a lot of privacy in bitcoin. It uses the DPOS blockchain that secures all online networks. Meaning there is no way a transaction can be traced back to you. No real names are used here, only aliases. This makes it the best choice for many. Drug dealers have taken advantage of this feature, which is among the downsides of this digital currency.
The blockchain invests are making headlines globally. It is quite easy to invest bitcoin cryptocurrency. The first step involves simply opening an account. This is easy since the platform has provided a very elaborate procedure on how to open an account. When opening an account, you need to note that personal information is not required. All you need is your email address where you will have to confirm ownership of the account. This is where you will be getting important notifications regarding your account. After that you select the assets. Example you may choose Bitcoin. After that, you need to choose the preferred currency and in this case the cryptocurrency. You have to take your time when analyzing different indicators available on the charts as displayed on your computer. You also practice using the demo account to make sure you are making the best choice before clicking Deposit. You should however be aware that you may end up losing. After depositing, you can then put in your desired amount and “buy”. You just sit back and wait for people to like the currency and your price expands. It is easy to put into liquid form your currency by simply closing. This can be done anytime, anywhere. Bitcoin has become so much volatile over the years. Make sure staking; process that involves storing your coins in your wallet, is done before you start your bidding. Transactions are confirmed when you mine with your computer; PoW (proof of work). Confirmation is done by considering the coins one already has. A process called proof of stake, PoS. If for any reason you have a digital currency that you have no intention of using, sometimes it is good to consider lending; putting up your cryptocurrency for loan at a specific exchange rate to make sure your stakes are active always and gives you even higher returns.
Advantages and disadvantages
Bitcoin cryptocurrency can be used with full anonymity to buy or sell anything online. The currency is international, no country can claim it. This makes it easy to use plus there are no transaction fees charged and no particular government can put any rules on it. In addition to these, investing in bitcoin can yield very high results since the chance of it going escalating are very high. Despite this numerous advantages and the fact that bitcoin has been taking over headlines, it is important to note the risks involved. To begin with, there is a high chance of losing your investment so you are always encouraged to put in an amount that you are willing to lose. Virtual currency is known for huge fluctuations which can spell doom for your business. Sometimes it takes time to get your order paid. If you make an order today for example when the stakes are high, there is a possibility that you will be paid when the stakes have gone low, affecting your portfolio.
Cryptocurrency is still developing. For the case of bitcoin, the technology behind it will have a long-lasting effect on the internet for businesses as an exchange medium. It is good to consider referrals too; recommending new advertisers. Bitmedia, for instance, offers 10% commission.