Bitcoin was launched in 2009 by its anonymous developer, Satoshi Nakamoto. The basic principles of Bitcoin (BTC) use cryptography, which is the encryption and decryption of data. Since its inception, its value moved from cents to over $45,000 per coin in August 2021. This surge is seen cause Many investors are using it as a wealth storage mechanism. In this article we will discuss the fundamentals you should know about Bitcoin.
1. What is Bitcoin
It is essentially a decentralized digital form of currency that used an open-source code. Anyone can use the coin and access the coins transactions but cannot change anything on the code. A finite number of Bitcoin can exist, and they cannot be duplicated or destroyed.
2. How to Store Your Bitcoin
Anyone can purchase bitcoin today because of ease of access. When you decide to buy some, you will need a wallet to store them. A wallet isn’t a “bank” but a storage mechanism for the private keys that allow you to access your Bitcoin address. But unlike banks, stored Bitcoins isn’t insured by the Federal Deposit Insurance Corporation(FDIC).
You can choose to use one of the five types of Bitcoin wallets available. They include desktop, online, hardware, mobile, and paper. The type you decide to choose should be one that best suit your needs and ease of use.
3. How Can I Buy Bitcoin
To purchase Bitcoin, you can either go through an investment trust or trusted cryptocurrency exchanges. Other possible ways to get it are through cryptocurrency ATMs, trading gift cards, and buying with PayPal or Credit card. Once again, pick a purchase method that best suits you.
4. How to Sell Bitcoin
If you are getting into Bitcoin as an investor, this is a solid question to ask. You can sell Bitcoin through the same way you bought them. First, you have to have Bitcoin in your wallet. You can get them through cryptocurrency exchanges or Bitcoin ATMs.
Banking systems in some countries allow cash withdrawals from your bank account after selling Bitcoin on a cryptocurrency exchange. You can also trade with people online on dedicated platforms or in person. Do your due diligence before doing any transactions.
4. Why Use Bitcoin
There are many benefits to using Bitcoin as a form of currency. People across the globe consider Bitcoin a global currency because they can access it online at any time without restrictions. Its value is the same for everyone despite your local currency.
Compared to many local banking systems; there are no mandatory processing fees when performing Bitcoin transactions. The only charges are transaction fees, which are optional to those who want their transactions approved faster by miners.
Also, it’s not susceptible to fraud and corruption as its transactions are public and contain no personal information.
Conclusion
Some people are still skeptical about the introduction of Bitcoin as a mainstream currency. However, it’s still growing and gaining traction in the finance community.
Many people hope that one day it might be considered a viable means of exchange in all countries. For now, its meteoric rise and constant innovation is a sight to behold.