Bitcoin – The Ultimate Beginner’s Guide to Learning and Investing in Bitcoin
We present in this guide for beginners, the basics to start and invest in Bitcoin by addressing, in particular, the specifics of this digital currency, its investment options, mining, Blockchain technology.
In the introduction, we shall give you an overview of the various subjects raised throughout This article. These are intended to provide you with the bases to know about the digital currency that is Bitcoin to be able to invest in this network.
We are going to see; The specifics of Bitcoin compared to traditional currencies;
√The steps to open your own Bitcoin account ;
√The different investment options to obtain results;
√The blasting (or mining)
√The “ buy and hold ” strategy
√The investment in technology Blockchain
Chapter 1 – What is Bitcoin and why is it so popular?
A digital currency, safe and easy to use
Bitcoin is a digital currency on the rise. In the same way as a traditional currency, it can be used to make purchases as well as exchanges. The difference between this digital currency and another traditional currency is at the level of its transactions: these are all carried out online.
Bitcoin offers the security and transparency that users generally seek. Besides, it is a currency available all over the world and very easy to use. It is, in particular, very easy to exchange your traditional currency for Bitcoin digital currency.
The Benefits of Bitcoin
Digital currencies, like Bitcoin, have many advantages:
√Transactions are carried out securely and free of charge;
√The currency is not controlled by any central authority: it is managed by a community, not by a government;
√Currency can be traded and used to pay for goods and services anywhere in the world: no matter where we live in the world, we can join the digital money network;
There are different ways to earn coins: either by mining them or by using this virtual currency as a form of payment.
However, according to the author, the main reason that can lead us to digital currencies is decentralization. Indeed, thanks to this decentralization, Bitcoin is a completely safe currency, capable of keeping our personal information safe.
The value of Bitcoin
The concept of Bitcoin is based on mathematics. It is based on an online code which itself represents its value.
The value of Bitcoin changes every day. Many fluctuations occur in its market. However, since its creation, this value has only increased overall. According to the author, Bitcoin is, therefore, a good investment opportunity.
Blocking chain technology
Several digital currencies were tested before Bitcoin, but none of them seemed to last. The appearance of Bitcoin has changed this reality.
The author explains to us that the major reason which led to the success of Bitcoin is the use of Blockchain technology by the network. Indeed, this technology has kept the network safe, secure and transparent.
Other digital currencies are available in the market today. However, to date, none of them has experienced the success of Bitcoin.
The simplicity of the Bitcoin network
Getting started on the network is really easy. Before deciding to invest or trade Bitcoin, it is enough, according to the author, to research its exchange rate to know its exact value, then to create an account on the network.
Part 2 – Bitcoin vs. Traditional currency
Using Bitcoin is, according to the author, a great experience. The system in place makes the process as simple and smooth as possible.
The positive points of using Bitcoin
In this part, we will reveal four reasons to choose to work with Bitcoin rather than a traditional currency:
Out of government control
First of all, with this cryptocurrency, we will never have to worry about the government taking control of our money. Currency is available all over the world and there will never be a central authority that will take charge of it.
Bitcoin is an autonomous monetary system, designed on the basis of code. Also, thanks to the Blockchain technology present on each computer in the community, anyone who has signed up for the network participates in controlling this currency.
No transaction fees
Thanks to Blockchain technology, all transactions are processed in one place, no matter where we are in the world. This avoids any problem of transaction fees in the process.
Users are able to carry out all of their transactions online while remaining anonymous. The Bitcoin network is configured so that all of our information remains confidential and secure.
Fast and secure transactions
During a regular transaction with our bank, the process is very slow and tedious. Transactions made on the Bitcoin platform are fast. Indeed, transactions by traditional institutions will take several days, while Blockchain technology is capable of carrying out these transactions in just a few minutes.
In addition, there are few systems as secure as Blockchain technology. Due to the configuration of the registry and the work done by miners on the network, Bitcoin is very secure.
As long as we have access to the Internet, no matter where we are in the world, we can transfer money and exchange it for Bitcoin.
There is no limitation for any country. In addition, many companies now accept Bitcoin as a form of payment.
how to invest in bitcoin
The negatives view of using Bitcoin
There are, however, people who prefer to continue using their traditional currencies and who refuse to use this cryptocurrency.
Here are the reasons,
Many hackers attack the Bitcoin network. To deal with this, it requires being proactive and ensuring that we stock our parts correctly.
- The novelty of digital currencies
It is difficult to make an exact estimate of how digital currencies will develop in the future.
On the other hand, there is no consumer protection on this network. Without a government or a bank managing it, we cannot be protected in the event of a problem. If we choose a bad seller to work with, if a hacker obtains and uses our information, or even if a computer problem erases everything in our portfolio, there will be no one to contact to try to fix the problem.
Part 3 – The importance of Blockchain in the Bitcoin network
Very powerful technology
Blockchain technology is a very powerful technology: it guarantees transparency and security for the entire network.
Generally speaking, Blockchain technology is a kind of register which contains information on all transactions carried out on the Bitcoin network. However, the Blockchain is not just a simple database: it is, in fact, responsible for storing information, but it also fulfils many other functions.
How Blockchain Technology Works
When we work on the Blockchain (or chain of blocks), each transaction, once completed, is placed on a block. Transactions are recorded in chronological order. Once a block is finished, it is added to the permanent record and forms a chain with the other blocks.
We receive our first work package when we register for the network. After making enough transactions to fill the block, it is sent to the main blockchain of the network to be part of the permanent record. The system then sends us a new block which we can start filling.
Miners, meanwhile, come into play when the blocks are added to the main blockchain of the network. These are responsible for assigning unique codes to the blockchain to keep our transaction information secure.
Part 4 – How to open your own Bitcoin account
To start using the network, we first need to set up a Bitcoin account, i.e. get a Bitcoin address and then exchange some of our traditional currency for Bitcoin.
Here are the different steps, as explained in this guide, to open your own account:
- Step One: Get a Bitcoin Address
For this, it is possible to go through the Bitcoin network. However, most users decide to get their address on an exchange site.
The most popular exchange site in the United States is the Coinbase site. It’s extremely simple: just add the requested information.
- Second step: Configure your payment method
Once we have an address, we need to exchange our traditional currency. It works the same way as if we wanted to exchange Euro, for example, with Dollar.
There are two options for doing this:
First option: Transfer the money directly to your bank account; this method is the safest, but it usually takes three to five days.
Second option: Use your PayPal account or credit card; this method is much faster but more limited than the first option.
- Step Three: Find a Good Portfolio
The point here is to determine where we will keep our coins until we use them.
If we want to invest currencies, or adopt the ” buy and hold ” strategy which requires keeping our currencies for a long time without using them, working with an online portfolio is not the best choice. Indeed, these wallets can be attacked, and it is impossible to recover their money if a hacker obtains access or in the event of a computer error.
It is therefore advisable to store your currencies offline, via hardware storage ( cold storage ) or cold storage. This system allows us to store our coins on our computer or print the key to keeping it in a safe place.
Once the storage wallet has been chosen, we are ready to trade Bitcoin!
Part 5 – The Benefits of Investing in Bitcoin
We can join the network simply to make purchases and transfer money to other people. However, the best reason to join the network is that it represents a great investment opportunity.
Three advantages of investing in this cryptocurrency:
With Bitcoin, it is possible to do:
√Digital monetary transactions;
√The digital trading for land titles, securities and other properties;
√Settlements between banks and other financial institutions;
√From crowdfunding ;
√Customer reward programs.
All these uses available on the network makes it an ideal system for investing.
Even higher future earnings
Many analysts have said that Bitcoin could become a global currency, a currency that can be used by everyone on the planet. If this analysis proves to be correct in the future, the stimulation of international markets in all regions of the world would raise the price of Bitcoin even higher. The latter could then have a value of $ 20,000 per unit, an excellent option for investing!
Interest on investment
Bitcoin is considered to be a commodity currency. This means that when we have bitcoins, we can invest them as if we were investing in a business with traditional money. We can then generate interest in this investment.
Part 6 – Mining Bitcoin, Helping the Network and Earning Money
There are many ways to make money when we work on the Bitcoin network. The first method is known as ” mining “.
The role of the miner is to put new bitcoins into circulation. Mining also helps to keep the network safe and secure. It guarantees the transparency of the register.
In fact, when a transaction block is finished, the miner uses this block to create, by mathematical calculations, a new code. The miner will place this new code in a formula including the older block codes. Thanks to these mathematical manipulations, the miner then creates what is called a “hash”.
This operation, very difficult to perform, is rewarded with 25 bitcoins when it is successful. This reward represents a substantial sum of money, bitcoin worth more than 12,000 euros at the time of writing. This is what motivates and encourages most people to head for mining.
Part 7 – Bitcoin Network Investment Strategies
Few people choose to work as a miner. It’s hard work, and unless you have a good processor or a good knowledge of computer technology.
However, there are other ways to invest in the network. In this section, we describe these different investment options, which we will choose according to the risk that we are ready to take and our investment strategy.
The “ buy and hold ” strategy
The buy and hold strategy is one of the most common ways to invest in Bitcoin.
It is, in fact, about buying bitcoin and keeping its coins until its value is higher. As its price goes up almost every day, this method can be a source of considerable profit.
The Day trading
This other investment option requires more time. The Day trading is to wait until the value of Bitcoin is below market value to buy it cheaply. During the same day, we must observe the market to follow the evolution of its price.
When the latter goes up to the market value or above the market value, we can resell it and thus obtain a profit. Of course, this option requires us to keep ourselves informed of the value of Bitcoin from day today.
Invest in the Bitcoin business
The Bitcoin company is in the exchange option of Nasdaq. It is therefore entirely possible to invest money in the business and, if it continues to grow, to generate long-term income.
As with any other market action, research is essential to know the best time to enter and exit the market. Indeed, the Bitcoin network is still quite volatile and we do not know how this currency will behave in the future.
Invest in Blockchain Technology
More and more companies are using Blockchain technology. So there is a huge market opening up to invest money in this technology. The author explains that we must be careful, before placing our money, to choose a Blockchain platform that has good potential.
Long-term investment vs. short-term investment with Bitcoin
For the author, the two cryptocurrencies with which we can envisage a long-term investment are Bitcoin and Ether. These digital currencies are good long term investments as they have been around for several years. However, there is no way to predict which is the best type of investment, as each investment story is different.
Part 8 – Tips for a successful investment in Bitcoin
Investing in Bitcoin turns out to be a good option. However, the beginner usually has several questions. He may be worried about entering this market. In this part, we will give you some advice to follow in order to make a good investment.
Work with a broker
A broker understands how investments work. He can therefore greatly help you to make the right decisions in your investment project on the cryptocurrency network. However, the Bitcoin market is very different from other stock and investment options. The author then strongly advises us to seek a broker with solid experience and knowledge precisely in the world of Bitcoin.
There are many types of brokers we can work with. We will choose them according to your budget and the type of help we need (advice, canvassing, market observation, etc.).
Choose a good strategy
We recommend that you choose a strategy that you like, that makes sense to you. In addition, it is essential to know exactly how to set it up. Indeed, not proceeding in a thoughtful and adequate manner in the implementation of your strategy, or moving from one strategy to another, can only lead you to failure.
Keep your emotions out of the game
Emotions reach many beginner investors. It is essential not to let them take control when we invest. Indeed, emotions can only make you lose money: either by getting you out of the market too early or by keeping you in the market too long.
Knowing, in addition, that the Bitcoin market is volatile and can fluctuate very quickly, enter this market only if you are able to develop in advance and then follow, a plan that guarantees you informed decisions about your investment.
Conclusion of “Bitcoin- the Ultimate Beginner’s Guide to Learning and Investing in Bitcoin
As its title suggests ” Bitcoin – The Ultimate Beginner’s Guide ” addresses the basics of Bitcoin to the reader who has absolutely no knowledge about this digital currency. The novice will familiarize themselves, on reading this work, with the environment of the cryptocurrency, its technical terms, its functioning. He will also find food for thought on the different ways to get started with this digital currency.
However, although promising to address, in its table of contents, essential subjects to learn Bitcoin, the content remains, in the end, very succinct and lacks, in my opinion, density. The work also contains numerous repetitions and errors both in the turn of the sentences and in the translation. This makes it difficult to understand the ideas presented when they are intended to be quite simple and basic.