Bitcoin is the first cryptocurrency many people wonder till today how come this bitcoin and how it is made in general what is it all about. here is a brief history of bitcoin.
what is bitcoin
Bitcoin was launched in 2009 which is regarded as the first cryptocurrency. It’s a decentralized form of digital cash that eliminates the need for traditional intermediaries like banks and governments to make financial transactions. Still feeling a little confused? Don’t worry, that’s normal.
Fiat money (like the U.k. ponds in your bank account) is backed and regulated by the government that issues it.
Bitcoin, on the other hand, is powered through a combination of peer-to-peer technology — a network of individuals, much like the volunteer editors who create Wikipedia — and software-driven cryptography, the science of passing secret information that can only be read by the sender and receiver.
This creates a currency backed by code rather than items of physical value, like gold or silver, or by trust in central authorities like the U.S. dollar or Japanese yen.
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party,” wrote Satoshi Nakamoto — the pseudonym of the mysterious Bitcoin creator, who remains unknown — in a white paper introducing the open-source technology.
It’s come a long way since then, now accepted as payment by AT&T, the Dallas Mavericks and Wikipedia, among others.
How To Invest In Bitcoin
Investing in BTC is synonyms to investing in stocks, except far more volatile because of the daily swings in BTC. Here are the steps to invest in bitcoin from the beginning:
- Open an account with an exchange of any trusted website which will be listed below
- Deposit funds from your bank into the exchange account.
- Buy BTC using deposited funds (cash balance).
- Later sell the BTC for a gain or loss when the price goes up or down. This is known as crypto trading.
- You can still buy and hold BTC for a period of time depending on when you want to sell.