What is Bitcoin?
Bitcoin is a decentralized, peer to peer digital currency system, designed to give online users the ability to process transactions using a digital exchange unit known as Bitcoins. In other words, it is a virtual currency.
The Bitcoin system was created in 2009 by one or more undisclosed programmers. Since then, Bitcoin has attracted huge attention and also controversy as an alternative to the US dollar, the euro and commodity currencies such as gold and silver.
It rises in popularity
Bitcoin had not gotten much attention in the business and finance world before 2009. It rose to fame during the period 2011-2012, when it gained more than 300%. Bitcoin has had its value growth of 400% since August last year. As a result, venture capital firms and investors around the world continue to give importance to cryptocurrency.
In the first half of 2014, venture capital firms invested $ 57 million in Bitcoin in the first quarter, followed by another $ 73 million in the second quarter for a total of $ 130 million, 50% more than totaling $ 88 million last year. This is a stark contrast to the 2012 scenario in which Bitcoin companies amassed a relatively meager $ 2.2 million.
These statistics show, without any doubt, that Bitcoin is worth your investment, which begs the question of how you can buy and invest in Bitcoin?
A guideline for novice Bitcoin investors
The easiest and least complicated method to invest in Bitcoin is to buy bitcoins. There are many established companies, primarily in the United States and abroad, that are involved in the business of buying and selling bitcoins, abbreviated as BTC.
If you live in the United States, Coinbase is the place you are looking for. Coinbase provides its BTC customers with an estimated 1% increase over the existing market price. Residents in the United States have the option to synchronize their Coinbase portfolios with their bank accounts. As a result, future payment transfers will run smoothly. This company also offers you the option to buy bitcoins automatically from time to time. For example, if you are interested in buying $ 50 in bitcoins at the beginning of each month, Coinbase allows you to set up an automatic purchase for that amount.
Please note the terms and conditions before you start using this service. If you have subscribed to an automatic bit currency service, you will not be able to control the price at which the BTC is purchased each month. Please note that Coinbase does not work as a Bitcoin exchange, meaning that you buy and sell currencies directly from the company. Because the company must obtain currencies from other buyers, you may experience delays or interruptions when placing orders during rapid market movements.
BitStamp adapts to the requirements of a conventional bitcoin exchange. Bitcoin acts as an intermediary that allows you to trade with other users and not with the company itself. Here the liquidity is greater and you always have good chances to find someone who is willing to negotiate with you. There is an initial rate of 0.5% that can be reduced to 0.2% if you exchange $ 150,000 over a 30-day period.
Alternative ways to buy bitcoins
Exchange is not the only method of investing in bitcoins. Local bitcoins are often used to buy BTC offline. The website is designed to link potential buyers and sellers. Bitcoins are a seller’s locker in a security deposit and can only be delivered to buyers.
Buying bitcoins offline is not always very reliable or secure. So it’s best to get to know the vendors during the day and let a friend tag you in case things go south.
Bitcoin is not just a modern trend. Venture capital companies consider Bitcoin to be a decent substitute for conventional currency in the long run. There are amazing ways to get into the realm of bitcoin investing. As mentioned above, Coinbase, BitStamp, and Local Bitcoins are the most popular channels for investing in bitcoins in the United States. Do your homework and find out which avenue marks all your boxes.