Cryptocurrency has the world by a surprise, but many experts who study cryptocurrency saw it coming. And the biggest star of this particular surprise has been Bitcoins. Bitcoins is a part of the blockchain technology,which is at its all-time high right now. Blockchain is basically a decentralized and in alterable digital ledger. This means that it has the records of who has what and who owns what on a digital platform, and records transactions and ownership on a database.
The biggest star that emerged from this is bitcoin, which has come far ahead from its contemporaries Litecoin and Ether. bitcoin is a digital currency, that is open for all and opens a new asset for anyone and everyone to invest in. (Bitcoin with a capital B refers to the payment system. Bitcoin with a small ‘b’ refers to the currency). Once you understand how bitcoins work, you’ll understand that they are here to stay and can be an amazing investment if you get into it right now.
How bitcoins work
One of the major reasons why the value of bitcoins is going up in the market is because they’re scarce. They’re not an unlimited opportunity, and there are just 21 million bitcoins overall available to buy. And their value doesn’t depend on the market. bitcoin price is something that depends on what the people are willing to pay for it.
One of the major advantages of investing in bitcoins is that you can be sure that the state of the economies of various countries or the stock markets have no impact on its value. In fact, since its an apolitical commodity, during an economic downfall or a fall in stock market, the price of bitcoins usually goes up.
How to Invest in bitcoins and where to store them
Now that you’ve got the gist of how bitcoin works, we can move on to how you can invest in them. The investment part depends on what country you live in. There are some countries that don’t let the banks mingle with the Bitcoin, which takes away their citizen’s ability to invest in them.
For the countries its available in, the process is quite easy. Coin base is the largest broker of bitcoins, and is available in almost all of Europe, along with the US, Canada and Singapore too. You can find which bitcoin broker is available in your country via exchange finder.
Once you’ve found your preferable website to buy bitcoins from, the next step is finding a safe bitcoin wallet for yourself. Make sure to choose the most secure wallet for yourself in the country you live in and do extensive research before choosing one. Since the demand and the market for bitcoins is increasing day by day, it has become susceptible to scams and frauds. Also, a mistake that many experienced people make too is that they keep their bitcoins in exchange in their wallets. Avoid doing it, as there are no general laws for bitcoins and these exchanges can be shut down anytime and you may not get them back. Exchanges are also open to hacking and scams. So, instead of keeping them in exchange, buy the bitcoins properly and keep them in your secure wallet.
Now that you know the basic functioning of bitcoins, you can go out there and invest in them without any problems. Just make sure to keep the points mentioned above in mind for a safe and secure experience in the world of blockchain.