Learn about Bitcoin and how to buy

Bitcoin, also known by its acronyms BTC, in recent years has enjoyed rapid growth. Before, in mid-2016, 1 BTC could be bought for approximately US$ 500. Now in 2022, even with the numerous price drops, just one Bitcoin is worth about $23,000.

That is, this growth comes close to 4,500%. Some analysts imagine that Bitcoin’s value could rise even further as the cryptocurrency becomes more common in people’s daily lives. It is a fact that when acquiring Bitcoins, they come along with high risks. For even with their incredible gains, overwhelming declines have also been experienced by BTC.

Bitcoin, learn what it is

First of all, you need to know what Bitcoin actually means. That is, it is a decoupled digital currency, where its operation happens without supervisions from either government or banks. It became known for being the pioneering cryptocurrency, which had its launch in 2009.

According to the creator of Bitcoin, known as Satoshi Nakamoto, its creation happened to facilitate online payments, so that they pass from one party directly to another, without the intermediation of financial institutions.

With Bitcoin representing 41% of the market today, the value of this cryptocurrency market is close to $1.1 trillion. It began as a form of payment, but today it has evolved further, becoming an investment asset. It is considered by most holders as a store of value and is also known as “digital gold”.

How Bitcoin works and how to buy

Bitcoin has its transactions verified through cryptocurrency miners, who use a validation framework. In other words, it is spoken proof of work. It is accepted by certain merchants and retailers as a means of payment. Some of these are Starbucks, Overstock, Microsoft, and Whole Foods.

In order to buy Bitcoin or any other cryptocurrency, you need to go to a cryptocurrency exchange. In other words, sellers are brought together with buyers in order to exchange dollars for coins.

Once you have chosen your cryptocurrency exchange, you must first fund your account to begin investing in Bitcoin. As soon as your account is funded, you can place your first order. Depending on the platform used, some of them allow you to buy by selecting a single button, or by simply entering the BTC symbol.

Further information about Bitcoin

Know that there are a few ways to purchase Bitcoin. That is, your BTC can be purchased using a credit card or even PayPal. However, when purchasing using a credit card, we have already mentioned that it may not be as rewarding, due to the high fees charged.

It is also interesting to assess whether it is worth buying through PayPal, because there are also reasons that are not so advantageous. Finally, if you are interested in buying BTC, pay attention to the recommendations of the experts. They advise you to invest only a smaller portion of your net worth.

Even though it is a very profitable investment, the ideal is to buy with caution, because it is a very fickle purchase. For this reason the recommendation is not to allocate a high percentage in this class with great asset risk.