There is perhaps no place in the world that would not be affected by the wave of popularity of cryptocurrencies. Some earn, others lose. Surprisingly, many people still consider bitcoin to be something otherworldly. But they should not think so, because bitcoin is gaining ground in our everyday lives as an investment, a means of payment and as a concept. How to buy bitcoin?
Bitcoin is the most famous cryptocurrency in the world. This term was originally used by a narrow circle of people, but since the popularization of blockchain technology and the rapid growth in the value of digital money, it has come to the attention of many people. The Internet is full of news about the movement of the price of Bitcoin, stories about huge profits and prospects of this currency. Before investing in bitcoin, however, it is necessary to understand its features, advantages and disadvantages, how it differs from other currencies and how to make money on it. In our today’s article we will learn more about what bitcoin is, where to buy bitcoin and the bitcoin rate.
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But what is Bitcoin in general and how does it work in the world system?
Bitcoin (BTC) is an electronic system similar to digital wallets and bank accounts. The basic payment unit online is bitcoin. Digital coins, unlike traditional money, are not tied to the economy of any country or to the central bank. All activities related to issuing money, processing payments and creating accounts are carried out be users.
The system was first developed in 2008 by creator Satoshi Nakat and developer Hel Finney, and was officially launched on 3. January 2009. Bitcoin was a protest against traditional money and the tie-in of finances to one country. The idea of independent money was supported by a small community, but with the growing number of users and the value of BTC USD, the system began to gain popularity.
When the Bitcoin blockchain was launched in 2009, the first cryptocurrency was worth zero. Din May 2010, the value increased to 10 cents. By the way, every year 22. May the cryptocurrency community celebrates Bitcoin Pizza Day: on this day in 2010, the famous purchase of pizza for 10,000 BTC took place.
In April 2011, 1 BTC was worth $1, but a few months later, 7. June, its price reached almost $ 30. After that, the value of Bitcoin began to decline, dropping to $2 in mid-November 2011. 2012 was a bleak year, but in 2013 the first “bull rally” occurred: if at the beginning of the year bitcoin cost just over $13, in December its price soared to a record $1237 and then fell back to less than $700. During 2014, Bitcoin gradually declined and reached a value of $315 at the beginning of 2015. However, the decline did not last too long and bitcoin began to rise in price again. In December 2017, its value was already 19650 USD. The highest value of Bitcoin dates back to 12/11/2021, specifically it was 64400 USD.
Global economic and political instability hit the financial market and negatively affected the price of the first cryptocurrency, which fell back to around $20,000 by autumn 2022.
To fully understand Bitcoin, it is necessary to understand how the system works, how Bitcoin wallets are created, and how online transactions are processed.
This is a brief look at the system:
- A Bitcoin wallet is similar to a bank or electronic account where money is stored. They register using special software or websites. When creating a wallet, the user receives a public key (account number) and a private key (password for managing funds).
- Transactions are required to transfer bitcoins between users’ wallets. All transactions are stored in a shared pool that is processed by other members of the system. However, a fee must be paid to confirm the transaction.
- Miners – those who “mine” bitcoins – miners represent the basis of the security and performance of the system. In exchange for a reward, they use computing power to keep the network running. Miners are responsible for mining new units and processing transactions.
- Blockchain is a sequential chain of blocks in which transaction information is recorded. The essence of this technology is that the data is stored on several independent servers, and in case of problems or outages, the network remains operational.
How to buy Bitcoin? – Interesting fact
At present, quite effective tools for transaction analysis have already been developed. Their feature allows cryptocurrency companies to instantly see how reliable their counterparty is and whether it is working with funds that were previously used in illegal financial transactions.
Now that we know the key terms of cryptocurrencies, let’s see where to buy Bitcoin.
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How to join the world of cryptocurrencies and how to buy Bitcoin
Today’s digital money users can get cryptocurrencies in several ways. Some of them are more profitable and profitable, so they are more popular. Others are just getting started with users and in some respects are losing to their competitors.
Let’s take a look at the most common services that offer bitcoin exchange transactions. Here are 5 simple ways a newbie can buy bitcoin, even if it is his first transaction in the crypto market.
How to buy Bitcoin? – P2P Trading on the Exchange
The easiest and best option where to buy bitcoin is so-called “P2P trading”.
The main condition for buying or selling cryptocurrencies in this way is registration on the exchange itself and subsequent verification of the account, which will allow you to make all the necessary transactions without problems.
How to buy Bitcoin? – Use of electronic heat exchangers
Another way to buy bitcoins online is to use electronic exchanges, through which you can buy or sell this or that cryptocurrency 24 hours a day, 7 days a week, by paying with Czech bank cards.
In this case, the exchange office sets its own BTC exchange rate.
How to buy Bitcoin? – Cryptocurrency Exchange Terminals
This is the easiest wayto buy Bitcoin or another cryptocurrency, but only if you have physical access to the terminal. Outwardly, it is almost the same as most ordinary bank terminals. The mechanism of operation is similar: you choose the desired cryptocurrency, deposit cash, confirm the transactionand you’re done.
How to buy Bitcoin? – Stone exchange offices
There are also networks of wholesale exchange offices. They are often used when large amounts of cash (from the equivalent of $5,000) need to be exchanged.
How does it work? The customer visits the bureau de change and specifies all the details and fees. He then hands over the cash and his wallet address and receives the necessary cryptocurrency.
How to buy Bitcoin? – Crypto storm
A cryptocurrency exchange is similar to a stock exchange or a regular exchange. It’s a place where many people sell digital money for one price and others buy it. It isalso a place where cryptocurrencies can be safely stored, exchanged and withdrawn to personal wallets.
Every known cryptocurrency exchange requests the user’s personal data (passport, photo, etc.). Without providing this information, trading in cryptocurrencies is not permitted. Alltransactions on these platforms are maximally protected from fraudsters, but users cannot remain anonymous.
Main advantages of Bitcoin
Among the main advantages of Bitcoin, the following should be mentioned:
- Bitcoin is a decentralized system based on asoftware protocol and on the principle of direct exchange between users.
- All transactions in the bitcoin network are recorded in a distributed data ledger, the so-called blockchain, a copy of which is stored in a complete node connected to the global bitcoin network. Data in the blockchainis regularly verified using the Proof-of-Work consensus algorithm.
- The bitcoin network uses the eponymous unit bitcoin (BTC ticker symbol), the first and most well-known cryptocurrency, for settlement. Since its inception, Bitcoin has remained the largest cryptocurrency bymarket capitalization.
- Bitcoin works without the participation of any regulatory authority or central bank; The issuance of coins and the processing of transactions shall be carried out collectively by network participants. Thus, no one can control, block or cancel transactions with bitcoin. However, anyone can join the network and use it to make transfers or develop a Bitcoin Code.
A few words in conclusion
Cryptocurrencies have recently been touted as a full-fledged alternative to fiat money. With this volatility of virtual coins, many countries are still taking risks and bettingon state-of-the-art technology. El Salvador is the only country in the world that has declared bitcoin to be legal tender. However, dozens of other states are loyal to cryptocurrency and do not consider its use illegal. These include the USA, Canada, Australia, Denmark, Francee, Germany and others.
The value of Bitcoin is also based on its network effect: the more participants, the higher the price. Bitcoin is still an experimental technology and its price fluctuates significantly, which is used by traders and ordinary holders.
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