Bitcoins For Dummies- A Step By Step Guide On How To Use Bitcoins

Buying and trading cryptocurrency has become one of the most preferred options for investment worldwide. Various types of currencies are available for investors to choose from like digital Yuan

Among all the popular forms of cryptocurrencies, Bitcoin is known to be the most popular one. Bitcoin was first launched in 2009 by Satoshi Nakamoto. 

Read on to know more about what bitcoin is and how it works to have an overall understanding!

What is bitcoin?

In broad terms, Bitcoin is a cryptocurrency that uses the blockchain process of trading. The bitcoin software was presented to the market on 9th January 2008. While on 3rd January 2009, the fir block, Block 0 (aka genesis block), was mined. 

There are several ways one can use bitcoin, but first, let us see how one can buy Bitcoin. 

How to buy Bitcoin?

Bitcoin, if looked at just as a form of currency, is very easy. However, it does have a very complex mining system. If you do not wish to mine it, it can be easily bought using crypto exchange platforms. Below highlighted are some tips to help you buy Bitcoins with ease-

  • Find a reliable cryptocurrency exchange platforms and sign up for a new account. There are many platforms available. Click on to know more about how you can create an account and start trading easily. 
  • You will need to complete verification and buy a wallet to store and manage your cryptocurrency from. Then, you will need to link your bank account to your wallet.
  • Once you have linked your account and bought a wallet, you can start buying various types of currencies.
  • Some buy entire BTCs and then sell some parts of them. While some buy small parts and sell or hold them. 

How can I use Bitcoin?

Bitcoin was initially just a payment method. However, over time when the values started rising, other uses of bitcoin came to light. Here are the ways one can now use bitcoins:

  • Payment:

Many stores and businesses accept bitcoin as a payment mode now. Your wallets have specific keys that need to be entered while initiating a transaction, similar to your ATM pins. Stores that accept bitcoin usually have signs that state so clearly. 

However, it is important to know that no cash currency is deducted from your bank account, only the amount of bitcoin that you sent. The cash currency will only be deducted when you buy bitcoin, not when you use it for payments.

  • Speculating:

As the prices of bitcoin rise, people are also buying it to hold. This means storing the bitcoin or any other cryptocurrency and speculating market trends to see if the prices rise, bringing in a good return. This requires a proper understanding and being able to time the market for the right time to hold or release a currency.

Is Bitcoin a good investment?

Just like all other currencies, even bitcoin is very unstable, and its values continuously fluctuate. However, many believe that it is a great option for investment and can become a commonly used currency in the coming years. 

Here are some advantages of buying Bitcoin:

  • First and most important, huge returns can be generated through bitcoin investments. However, you need to be very smart with your timing, and for that, you will need experience. Although difficult to achieve, bitcoin profits are still one of the reasons so many people want to trade in it. 
  • Using and buying bitcoin is highly accessible. Transferring bitcoin to another user has now become easier, transactions have also become swifter. It is very useful if you need to pay for something in a foreign country since it is a globally accepted currency. 
  • If one buys a big amount of bitcoin, it is easier to invest or sell parts of it in different places and make a profit out of it. You can hold some of it, sell some of it and use some of it for transactions. 

Conclusion:

To answer the question if it is a good investment, Whether or not bitcoin is a good option for you depends on your risk tolerance, market experience, and your expertise. 

It is important to consider all risks and get professional guidance for initial transactions. Once you have enough experience and analytical skills, bitcoin can be the best option or investment. 

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