5 Things Beginners Should Know About Bitcoin

Rohan Mathew

Updated on:

Bitcoin is one of the most talked-about topics right now. Since it was created in 2009, it created space for the launch of many other cryptocurrencies like Litecoin, Monero, Tether, and many others. Furthermore, it has disrupted many sectors thanks to its blockchain technology.

So, it’s safe to say that this is innovation like no other, and there are many reasons why people find investing in bitcoin appealing. If you aren’t familiar with bitcoin here, you will find useful things you should know about bitcoin and the world of crypto in general.

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Bitcoin is defined as a cryptocurrency that exists only in a digital format and was created as a response to the housing market crash. What distinguishes Bitcoin from other currencies is that the inventor wanted to create a payment system that is fully decentralized ( also known as blockchain network) and thus functions without the control of other third entities, like a bank or other financial institutions.

What’s more, the transactions in the network are anonyms; your pubic key is recorded on the network instead of any personal, sensitive data. In addition, other data about the transactions are transparent to everyone in the network, meaning you can’t change anything without that being visible to the other users in the network.

Another advantage is that the transactions are processed in less than ten minutes, which is great for international transactions. The blockchain network is one of the crucial factors of why bitcoin was a successful innovation.

Bitcoin Halving

The miners need to confirm the transactions in the network, and for their work of adding new blocks of transactions, they get a reward. Also, with the bitcoin mining process, new BTC are released into circulation. Miners have an essential position, while they need to solve difficult math problems to be able to add new blocks of transactions to the blockchain and to obtain the block reward. On the other hand, mining is also time-consuming and requires top computer hardware.

But, Satoshi Nakamoto has designed the system that cuts the reward miners get in half every four years. The goal was also to cut inflation in half. For this purpose, he/she also fixed the number of BTC to 21 million.

This event has happened three times since bitcoin was launched in 2009. Each halving has boosted the price of bitcoin. This year was no different, and as the reward miners receive dropped to 6.25 BTC, the price increased to$9,999.93. The price was on a bull run for the rest of the year and in November soared to $17,000.

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Online Exchange Platforms

This leads us to online exchange platforms, which are a go-to place for people that want to invest in BTC.  Bitcoin Lifestyle is an advanced trading robot that simplifies online trading for people that have no experience with trading cryptocurrencies. Hence, it is an excellent choice for beginners.

The state-of-the-art technology allows you to potentially earn a return on investment of up to 600% every day. Actually, you just need to make a deposit of at least $250, and that is enough to potentially gain $1,500 on a daily basis. It should be noted that they have won over 12 awards for their trading system and also for their amazing customer support team that continues to provide a high level of customer service.

Bitcoin Wallet

Whether you want to trade online, send BTC, receive BTC, you need to own a bitcoin wallet. Bitcoin wallets are available in many different versions from different brands. Because they act as a storage solution for your BTC and also allow you to make BTC transactions, you need to invest in a safe option.

You can find desktop, web wallet, mobile wallet, and hardware wallet. The most expensive are hardware wallets, while you can also additionally look for cold storage solutions if you pick web, desktop, or mobile wallet.

What You Can Do With Your BTC

Today there are many options for people that want to use their BTC to make purchases or make investments. As we mentioned before, you can trade BTC on online trading platforms for other digital currencies and fiat currencies. On the other hand, you can also purchase products and services, both in digital format and physical goods.

As a matter of fact, there are over 15,000 companies all over the world that support BTC, and you can purchase items from them using your coins. You can choose from reputable brands like Microsoft, Steam, Burger King, Etsy, Shopify, AT&T, Twitch, AMC Theaters, Saving Pearls, and many others. Moreover, there is a great number of charitable organizations that accept bitcoin donations. Some of them are Wikipedia, Red Cross, Save the Children, Seans Outpost, Chicago Wish Foundation, among many others.