What is Bitcoin?
Bitcoin is a decentralized peer-to-peer digital currency system, designed to give online users the ability to process transactions via a digital exchange unit known as Bitcoins. In other words, it's a virtual currency.
Bitcoin system was created in 2009 by an undisclosed programmer (software). Since then, Bitcoin has received considerable attention in addition to the controversy as an alternative to the US dollar, euro and commodity currencies such as gold and silver.
Ascension to popularity
Bitcoin did not receive much attention in the business and finance world before 2009. It emerged in 2011-2012 when it earned more than 300%. Bitcoin has grown by 400% since August last year. As a result, venture capital companies and investors around the world continue to attach importance to cryptocurrency.
In the first half of 2014, venture capital firms invested $ 57 million in Bitcoin in the first quarter, followed by another $ 73 million in the second quarter of $ 130 million, a 50% increase over last year's total of $ 88 million. This is a complete contrast to the scenario in 2012 where Bitcoin companies raised a relatively small amount of $ 2.2 million.
These statistics undoubtedly prove that Bitcoin is worth your investment, which raises the question, how can you buy and invest in Bitcoin?
Guidelines for novice Bitcoin investors
The easiest and least complicated way to invest in Bitcoin is by buying Bitcoin coins. There are a lot of existing companies, especially in the United States as well as abroad, who are involved in the business of buying and selling bitcoin currencies, which are abbreviated as BTC.
If you live in the United States, Coinbase is the place to look for. Coinbase offers its BTC customers an estimated rate of up to 1% over the current market price. US residents have the option to synchronize their Coinbase wallets with their bank accounts. As a result, future payment transfers are made free of charge. This company also gives you the option of automatic purchase from Bitcoin from time to time. For example, if you are interested in buying $ 50 bitcoins at the beginning of each month, Coinbase allows you to set up an automatic purchase for that amount.
Keep in mind the terms and conditions before you start using this service. If you subscribe to Bitcoins service, you will not be able to control the price at which BTC is purchased each month. Note that Coinbase does not act as a bitcoin exchange, that is, you buy and sell currencies directly from the company. Since the company must issue coins from other buyers, you may experience delays or disturbances when placing orders during rapid market movements.
BitStamp fits traditional Bitcoin exchange requirements. Bitcoin acts as an intermediary that allows you to trade with other users and not the company itself. Here the liquidity is higher and you always have a good chance to find someone who is willing to trade with you. There is an initial fee of 0.5% that can be reduced to 0.2% if you trade $ 150,000 in a 30-day period.
Alternative ways to buy Bitcoin coins
Exchange is not the only way to invest in Bitcoin currencies. Local Bitcoins are often used to purchase BTC offline. The website is designed to connect potential buyers and sellers. Bitcoin is a locker from the seller in warranty and can only be released to buyers.
Buying bitcoins offline is not always reliable or safe. So it's best to meet sellers during the day and let a friend mark with you if things go south.
Bitcoin is not just a modern trend. Venture capital companies consider Bitcoin a decent alternative to the traditional currency in the long run. There are limitless ways to invest in Bitcoin currencies. 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 see which route marks all your boxes.