Simply put, what is Bitcoin?
The Bitcoin network is a decentralized, peer-to-peer digital currency system that enables its users to send and receive Bitcoins as a means of payment. It’s a form of digital money, to put it another way.
An anonymous engineer released the Bitcoin system in 2009. (s). Since then, Bitcoin’s potential as a competitor to the U.S. dollar, the euro, and commodity currencies like gold and silver has attracted widespread interest and criticism.
Acquire a Larger Audience
Prior to 2009, Bitcoin did not receive much notice from the business and financial communities. Its meteoric rise to fame may be traced back to 2011-2012 when its value increased by more than 300 percent.
Since last year, Bitcoin’s value has increased by a staggering 400%. Therefore, Bitcoin maintains the interest of venture capital businesses and investors all around the globe.
The first quarter of 2014 saw venture capital companies spend $57 million on Bitcoin, followed by another $73 million in the second quarter, for a total of $130 million, which is 50% more than the total of $88 million spent in Bitcoin in the first half of 2013.
Compared to the situation in 2012, when Bitcoin companies accumulated a paltry $2.2 million, the current situation is dramatically different.
These numbers demonstrate without a reasonable doubt that Bitcoin is a worthwhile investment; nevertheless, the next logical issue is how one would go about doing just that.
A primer for Bitcoin noobs
The purchase of bitcoins is the simplest and least time-consuming way to invest in Bitcoin since you can use the Bitcoin era. Established businesses in the United States and elsewhere buy and sell bitcoins (abbreviated BTC).
Coinbase is the best location to buy bitcoin in the United States. In order to cover their costs, Coinbase is projected to add a 1% premium to the current market price when selling Bitcoin to their customers.
Coinbase allows US citizens and permanent residents to link their wallets to their bank accounts for easier cryptocurrency transactions. That way, transferring funds in the future won’t be a problem. You may also set the firm to acquire bitcoin at set intervals automatically. For instance, Coinbase lets you automate purchases, so you may buy $50 worth of bitcoins on the first of every month if that’s what you’re interested in doing.
Before using this service, please read the following terms and conditions. If you have signed up for a monthly automated bitcoin service, you will not be able to alter the purchase price of your BTC.
Remember that Coinbase does not act as an exchange for Bitcoins; rather, you deal with the company directly when buying and selling Bitcoins. Due to the company having to track down the coins from other purchasers, your orders may be delayed or disrupted during volatile market swings.
For a standard bitcoin exchange, BitStamp satisfies all standards. By using Bitcoin as a middleman, you may engage in transactions with other users rather than the firm itself. Here, the market is more active, so there’s always a strong possibility you may make a deal with another trader. The 0.5% charge drops to 0.2% if your monthly trading volume exceeds $150,000.
Despite popular belief, Bitcoin was not merely a passing fad. In venture capitalists’ opinion, Bitcoin is a viable alternative to fiat currency in the long term. There are fee-free entry points for the bitcoin investment market.
Buying bitcoin is mostly done through Coinbase, BitStamp, and Local Bitcoins, as was noted earlier. Get informed about your options and determine which one best suits your needs.