What is Bitcoin?
Bitcoin is a decentralized peer-to-peer digital currency system designed to enable Internet users to process transactions using a digital exchange unit known as bitcoin. In other words, it is a virtual currency.
The Bitcoin system was created in 2009 by undisclosed programmers. Since then, bitcoin has attracted a lot of attention as well as controversy as an alternative to the US dollar, the euro and commodity currencies such as gold and silver.
Growth to popularity
Until 2009, bitcoin did not attract much attention in the world of business and finance. He became famous in the period 2011-2012, when he scored more than 300%. Since August last year, the value of bitcoin has risen by 400%. As a result, venture capitalists and investors around the world continue to attach importance to cryptocurrency.
In the first half of 2014, venture capital companies invested $ 57 million in bitcoin in the first quarter, and another $ 73 million in the second quarter, for a total of $ 130 million, up 50% from $ 88 million last year. This is the complete opposite of the 2012 scenario, when bitcoin firms raised a relatively meager $ 2.2 million.
This statistic undoubtedly proves that bitcoin is worth your investment, and the question arises, how can you buy and invest in bitcoin?
A Guide for Beginner Bitcoin Investors
The easiest and least difficult way to invest in bitcoin is to buy bitcoin. There are many established firms, mostly in the US as well as abroad, engaged in buying and selling bitcoins, abbreviated BTC.
Coinbase
If you live in the US, then Coinbase is the place you are looking for. Coinbase provides its customers with BTC with an approximate markup of 1% of the current market price. Residents of the United States have the ability to sync their Coinbase wallets with their bank accounts. As a result, future payment transfers go smoothly. This company also gives you the ability to automatically buy bitcoins from time to time. For example, if you want to buy $ 50 in bitcoins at the beginning of each month, Coinbase allows you to set up an automatic purchase for that amount.
Please read the terms and conditions before using this service. If you have subscribed to an automated bitcoin service, then you will not be able to control the price at which BTC is bought every month. Note that Coinbase does not function as a Bitcoin exchange, meaning you buy and sell coins directly to firms. Because the firm has to supply coins to other buyers, you may face delays or failures when placing orders during rapid market movements.
BitStamp
BitStamp meets the requirements of a regular bitcoin exchange. Bitcoin acts as an intermediary that allows you to trade with other users rather than with the company itself. Here liquidity is higher and you always have a good chance of finding someone who is willing to trade with you. There is an initial commission of 0.5%, which can be reduced to 0.2% if you trade $ 150,000 in 30 days.
Alternative ways to purchase bitcoins
Local bitcoins
Exchange is not the only way to invest in bitcoin. Local bitcoins are often used to purchase BTC offline. The site is designed to connect potential buyers and sellers. Bitcoins are kept by the seller on deposit and can only be given to buyers.
Buying bitcoins offline is not always very reliable or secure. So it’s best to meet with sellers in the afternoon and let a friend tag you just in case.
Bitcoin is not just a modern trend. Venture capital firms consider bitcoin a worthy replacement for ordinary currency in the long run. For you, there are indisputable ways to enter the realm of investing in bitcoin. 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 find out which avenue supports all your frames.