Have you invested in bitcoin? If not yet then, go for it sooner as it is now or never. Bitcoin is a suburbanized cybercash with a peer-peer bitcoin network. Today, in this blog we will discuss in detail about how y0u can start investing in Bitcoin? What is Bitcoin? Why cryptocurrency is taking its own place in India and much more.
Let’s get started with invest in bitcoin:
What is Bitcoin?
Bitcoin is a decentralized digital currency(electronic currency) known as cryptocurrency. In simple words, this system follows online transactions and cuts out the intermediaries like banks. It bogs off the middleman and hence creates lower transaction fees. It can be said as one of the first cryptocurrency which had brought a revolution. As mentioned, it is a decentralised currency, hence it is not owned by a single person or by any authority. The part that is quite astonishing is that this currency can’t be altered by anyone. So without any delay let’s have a look at the evolution process of this currency.
Days of old(the past) When it started:
The founders of bitcoin are still unknown however it was created 2008 using the name of Satoshi Nakamoto. It came into the field with proper usage in 2009. Bitcoin is a composition of word bits and coins. It was properly explained in white paper on 31st October 2008. It was launched as an open source code. Some of its earlier applicants were:
Hal Finney: She created history by using bitcoin and giving reusable-proof-of-work in 2004.
We Dai: He turned out to be the creator of the forerunner of bitcoin b-money.
Nick Szabo: Bit gold, the predecessor of bitcoin was developed by him.
However a full scale commercial transaction using bitcoin was made by Laszlo Hanyecz by using bitcoin to Papa John’s Pizza. This is a very popular pizza story about bitcoin.
Later on Gavin Andersen became the key developer of bitcoin foundation.
Know about the features of Bitcoin:
- It is one of the greatest cryptocurrency by now launched in 2008 creating market institutionalization.
- One of its key features is the decentralized system it that, blockchain technology which allows it to be transported, stored and traded.
- It doesn’t have a centralized authority and transactions are enabled through a network of nodes.
- In such a short period of time bitcoin has gone through a lot of ups and downs, though it has not failed to create history.
- This cryptocurrency has been widely acclaimed and has created ways for other cryptocurrencies to grow and Excel.
How Bitcoin system works?
This is a quite deep process and involves a lot of technical processes. The main element of the system is nodes that run bitcoin code which are later stockpiled in blockchain.
Nodes: They have copies of blockchain and are collections of computers.
Blockchain: A database that is shared among nodes of computers through decentralization.
The information in blockchain is gathered in the form of blocks. The factor that makes it secure is that the transaction occurred in real time. As end to end encryption is used which means blockchain enables the same list of blocks and transactions and the process is transparent when new bitcoins are traded.
It is said to be a public ledger of cryptocurrencies transactions. It can be said to be a society’s network as anyone can work and update it with the link. Statistical codes are always needed during a bitcoin transaction.
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How to start investing in Bitcoin?
Bitcoin is the first original cryptocurrency and till date they acquire half of the cryptocurrency market. A lot of people are looking to invest in it and there is no limit in investment. If you’re keen to invest in Bitcoin these steps will help you for sure. Anyone can buy bitcoin if one is interested.
The best and pocket friendly way is to buy bitcoin which can be exchanged for international currencies and is not backed by any government authorities. Not many things are required in it one only need a, Bank account, Identification proof, Reliable bandwidth.
Step #1 : Install Cryptocurrency Exchange:
You need to be a part of the Bitcoin exchange market. But you might be confused as there is no official bitcoin website for this process but there are a lot of options like Coinbase, WazirX, Binance, kraken,Gemini etc. There are a lot more, do proper research and use the best exchange for you.
Step #2: Buy a more secure wallet
One needs to hold a bitcoin wallet, a wallet holds all your cryptocurrencies. Wallets are basically of two kinds:
Hot wallet: These kinds of wallets are created during a cryptocurrency exchange or by an institution, some of them are Electrum and Mycelium etc.
Cold Wallet: A portable device like hardware where all your coins can be stored easily like in Trezor, Ledger Nano etc.
After this you can manage your investment like trading your coins, buying other assets etc.
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Step 3: Connect Exchange to Your Bank Account:
After selecting an exchange the next step you need to take is to linking your bank account and update KYC. Keep all your essential documents with you and fill the required details to verify. This process may vary one exchange to other.
Once your identity verification, you have to connect your bank account and for this you can use both credit or debit card. Also, check is your bank supported by the selected exchange, in case of not supporting you may try any wallet they are supporting like mobiwik.
Step #4: Place your first order
As everything is verified now, all you are set to buy your first bitcoin. You don’t need to invest in lakhs to start, you can invest in bitcoin with small amount and can buy bitcoin in “Satoshi”. means a small part of bitcoin.
What are the use cases of bitcoin?
Most people are in a dilemma when it comes to bitcoin usage or its use cases. First of all, the Bitcoin you have earned is stored in a blockchain wallet or in any other crypto wallet supported by the coins. They can be used in a lot of places as the world is accepting bitcoin now. It’s not a stable currency, its price keeps fluctuating and money is only cut down from your bank account only when you buy a bitcoin not in all transactions.
Now if you had forgotten your credit card, debit card, cash there no worries as bitcoin was created to break all these barriers. The transaction takes place between two people cutting the loop of a third party.
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Know Little Detail About Bitcoin Mining:
Many people raise question about how to mine a bitcoin? Is is profitable, what is mining.
Bitcoins are created and circulated through the process called mining. Miners are involved in this process which creates new blocks and blockchain is created .
A highly developed hardware is required in this process and extreme maths problems are involved in this.
- Mining allows one to have a cryptocurrency by giving money for it.
- Bitcoins are created by bitcoin miners when blocks of specified transactions are added into the blockchain.
- To create a mining rig GPU(graphics processing unit) or ASIC are needed.
This process can be future promising as one can be a Miner if interested as miners are gifted with some bitcoin.
- 2009– Block reward was 50 coins.
- 2012 -A dropdown which reduced it to 25 coins.
- 2016– it was halved to 12.5 coins.
- 2020– It was down to 6.25 coins.
If one is to learn mining one needs to learn POW(proof of work). Everyone here rushes to create a 64 hexadecimal number( hash).
Types of Bitcoin Cryptocurrency Wallets:
It is a device simply held responsible for holding and sending bitcoins. The wallet contains private key respondent to the bitcoin holder address, anyone who has access to private key can have that Bitcoin.There are some exceptions where wallet can hold multiple cryptocurrency.
Wallets are of various kind some of them are:
Desktop Wallet: This kind of wallets are installed in your system, system comprises computers or laptop. It’s examples are bitcoin core, armoury etc.
Mobile Wallets: They are kind of similar to desktop wallets only exception is that they can be installed in phones and can be used by scanning QR code.
Hardware wallets: They are the most secure ones as they use physical devices with encryption to private keys.
Web wallets: It is a complete online service , hence it is prone to hacking. They can be checked by anyone via email.
It’s just the start of digital currency creating a buzz. Crypto currency has started bringing change. Bitcoin has been widely acclaimed though they have some repercussions but with time those negative things can be turned into positive things. And they are going to make a huge shout out in the coming days
Ques 1. Is bitcoin safe?
Ans. It’s called bitcoin is a double edged sword it has various advantages which comes with some disadvantages.
Ques2. What is the maximum number of Bitcoins?
Ans. The maximum number of bitcoin that can be created are upto 21 million.
Ques 3. Can I start investing in bitcoin in $1?
Ans. Yes, bitcoin comes in the form of satoshi, so you can start investing even with a small amount.
Ques 4. Can I Buy bitcoin with 1000 rupees?
Ans. Why not! There is no any limit of adding money before buying bitcoin. You can buy as per your capability.
Ques5. Is it worth investing in Bitcoin?
Ans. Bitcoin value is increasing year to year, and still many people are thinking whether its good to invest in bitcoin or not. It is still worthy to start investing as in long term it will give you good returns.