What is bitcoin?
Bitcoin is a decentralized, peer-to-peer, digital currency system, designed to offer online users the ability to process transactions through a digital exchange unit known as Bitcoins. In other words, it is a virtual currency.
The Bitcoin system was created in 2009 by a non-disclosed programmer (s). Since then, Bitcoin has received enormous attention and controversy as an alternative to US dollars, euros & commodities currencies such as gold and silver.
Increasing in popularity
Bitcoin had not received much attention in the world of business and finance before the year 2009. It became known in the 2011-2012 period when it won more than 300%. Bitcoin has increased in value by 400% since August last year. As a result, venture capital companies and investors around the world continue to attach importance to the cryptocurrency.
trivago car rental
In the first half of 2014, venture capital companies invested $ 57 million in Bitcoin in the first quarter, followed by another $ 73 million in the second quarter for a total of $ 130 million, which is 50% larger than last year’s total of $ 88 million. This is a complete contrast to the 2012 scenario where Bitcoin companies raised a relatively meager sum of $ 2.2 million.
These statistics prove beyond doubt that Bitcoin is worth your investment, which raises the question, how can you buy and invest in Bitcoin?
A guideline for starting investors in Bitcoin
Buying bitcoins is the simplest and least complicated method to invest in Bitcoin. There are many established companies, mainly in the US and abroad, that are involved in buying and selling bitcoins, abbreviated as BTC.
If you live in the US, Coinbase is the place you are looking for. Coinbase offers its customers BTC with an estimated surcharge of 1% above the existing market price.
Residents of the United States have the option to synchronize their Coinbase wallets with their bank accounts. As a result, future transfers are made without any problems.
This company also gives you the option to purchase bitcoin automatically from time to time. For example, if you want to buy $ 50 in bitcoins at the start of every month, you can set up an automatic purchase for that amount with Coinbase.
Please consider the terms and conditions before you start using this service. If you are subscribed to an automatic bit-coin service, you cannot determine the price at which the BTC is purchased every month. Note that Coinbase does not work as a Bitcoin exchange, i.e. you buy and sell the coins directly from the company.
Because the company needs to get the coins from other buyers, you may experience delays or disruptions during rapid market movements.
BitStamp meets the requirements of a conventional bitcoin exchange. Bitcoin acts as an intermediary with whom you can 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 trade with you. There is an initial fee of 0.5% that can be reduced to 0.2% if you trade $ 150,000 within a 30-day period.
Alternative ways to buy bitcoins
Exchange is not the only way to invest in bitcoins. Local Bitcoins is often used to purchase BTC offline. The website is designed to connect potential buyers and sellers. The bitcoins are the seller’s locker in an escrow and can only be released to buyers.
sw airlines reservations
Buying offline bitcoins is not always very reliable or safe. That is why it is preferable to meet the sellers during the day and to have a friend tag along in case it goes south.
Bitcoin is not just a modern trend. Venture capital companies regard Bitcoin in the long term as a decent substitute for conventional currencies. There are endless ways to enter the bitcoin investments. As mentioned earlier, Coinbase, BitStamp and local bitcoins are the most popular channels for investing in bitcoin in the United States. Do your homework and discover which street ticks all your boxes.