What is Bitcoin?
Bitcoin is a decentralized, peer-to-peer digital currency system designed to provide online users with the ability to process transactions through the digital exchange unit known as Bitcoins. In other words, it is a virtual currency.
The Bitcoin system was created in the year 2009 by an undisclosed programmer. Since then, Bitcoin has attracted a great deal of attention and controversy as an alternative to the US dollar, the euro, and commodity currencies such as gold and silver.
Increase in popularity
Bitcoin had not received much attention in the world of business and finance before the year 2009. It stood out in the period 2011-2012 when it gained more than 300%. Bitcoin has had a 400% growth in value since August of last year. As a result, venture capital firms and investors around the world continue to attach 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, up 50%. than last year’s total of $ 88 million. This is a stark contrast to the 2012 scenario, where Bitcoin companies amassed a relatively meager $ 2.2 million.
These statistics prove without a doubt that Bitcoin is worth your investment, which begs the question: how can you buy and invest in Bitcoin?
A Guide for Novice Bitcoin Investors
The easiest and least complicated method of investing in Bitcoin is by buying bitcoins. There are many established companies, primarily in the US as well as abroad, that are involved in the business of buying and selling bitcoins, abbreviated as BTC.
Coinbase
If you live in the US, Coinbase is the place you are looking for. Coinbase provides its clients with BTC at an estimated margin of 1% over the existing market price. Residents of the United States have the option of syncing their Coinbase wallets with their bank accounts. As a result, future payment transfers go 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 worth of 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 automated bitcoin service, you will not be able to control the price at which BTC is purchased each month. Please note that Coinbase does not function as a Bitcoin exchange, that is, you buy and sell the coins directly from the company. Since the business has to source the coins from other buyers, it may face delays or interruptions when placing orders during rapid market movements.
BitStamp
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 higher and you always have a good chance of finding someone who is willing to negotiate with you. There is an initial fee of 0.5% that can be reduced to 0.2% if you trade $ 150,000 in a 30-day period.
Alternative ways to buy Bitcoins
Local Bitcoins
The 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 an escrow and can only be delivered to buyers.
Buying bitcoins offline is not always very reliable or safe. Therefore, it is preferable to meet with the vendors during the day and let a friend accompany you in case things go wrong.
Bitcoin is not just a modern trend. Venture capital firms consider Bitcoin to be a decent substitute for conventional currency in the long run. There are simple ways to enter the realm of investing in bitcoins. 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 meets all your requirements.
