In the crypto-currency revolution, Bitcoin has been a key player from the beginning. Its decentralized algorithm allows people all over the world to mine Bitcoin without needing a bank account or any third party payment service. In this way it’s both private and secure, making Bitcoin Revolution an ideal currency for those concerned about their online privacy and security.
This article will provide you with all you need to know to buy Bitcoin online, but first we’ll start by discussing what Bitcoin actually is and why it’s become such a hot commodity in recent years:
What is Bitcoin?
Bitcoin isn’t owned by anyone or controlled by any one entity; instead Bitcoins are “mined” using complex algorithms that require powerful computers which solve hashes (a string of numbers and letters) to unlock the next Bitcoin. This means Bitcoin, like other cryptocurrencies, is decentralized and not subject to regulation or manipulation by any one governing body.
While Bitcoin was initially used primarily for online purchases, it’s now become more of an investment vehicle than a currency; its value has skyrocketed in recent years which has led many people to buy Bitcoin just so they can hold onto it and hope its price increases significantly.
The struggle with Bitcoin at this point is that while mining Bitcoin isn’t profitable using just your computer, you still need your computer to “mine” for Bitcoins because there’s no way of purchasing them directly. So although many people have entered the Bitcoin market simply as investors rather than miners, that doesn’t mean they’re free from Bitcoin’s formerly steep learning curve. Bitcoin has gone from being a difficult, complicated currency to buy Bitcoin online to the hot ticket item of the decade in no time at all and people want in on Bitcoin mining and Bitcoin investing (and Bitcoin holding).
How do I buy Bitcoin and other cryptocurrencies?
There are two ways to purchase Bitcoin: you can use an exchange like Coinbase or Kraken or you can “mine” Bitcoin, which we discussed earlier. While Bitcoin is still popular for online purchases, it’s generally much easier (and more profitable) to simply invest in Bitcoin rather than spend your time mining for it when there are already exchanges that sell Bitcoin. This is especially true since Bitcoin mining requires many resources that regular computers likely don’t have. Bitcoin mining requires GPUs and other specialized Bitcoin mining hardware that you can’t just go out and buy.
That said, Bitcoin and other cryptocurrencies like Ethereum and Ripple are still popular for online purchases and there’s no reason not to take advantage of Bitcoin while it’s still in its prime. Bitcoin’s value is only expected to increase over the next few years so people who invest now will likely see big returns on their investment in short order. Now if only there was a way to buy Bitcoin with PayPal…
Pros of investing in bitcoin
There are a few reasons Bitcoin is a good investment:
- Bitcoin is decentralized, meaning it’s not subject to the whims of any governing body or financial institution.
- Bitcoin has a finite supply, meaning there will only ever be a certain number of Bitcoin in circulation. This makes Bitcoin more scarce and valuable as time goes on.
- Bitcoin is global, meaning it can be used anywhere in the world without incurring currency conversion fees.
All of these factors make Bitcoin an attractive investment, especially when you consider that its value has been increasing at a steady rate for the past few years. So if you’re looking for a way to invest your money and see some healthy returns, Bitcoin is a good way to do it.
Cons of Bitcoin/Cryptocurrency investments
- Bitcoin and other cryptocurrencies are extremely volatile, meaning their value can fluctuate a lot in a short amount of time. This makes Bitcoin a risky investment, especially since the Bitcoin market is still new and not everyone understands how Bitcoin works.
- Bitcoin mining requires powerful computers that use up a lot of energy, making Bitcoin an environmentally questionable choice for your money.
- Bitcoin transactions require confirmation by Bitcoin nodes across the world which means there’s no guarantee your transaction will be completed fast enough before the price changes again, this means you might have to pay more or less than you expected per Bitcoin.
This volatility has led many people who don’t understand Bitcoin simply to write Bitcoin off as a passing fad, but Bitcoin’s value has been increasing steadily for several years. It seems the only way Bitcoin could go up is up, which is why it shouldn’t be surprising that Bitcoin mining and Bitcoin investing are taking off in popularity. If you’re interested, you should do some research on Bitcoin to see if it’s right for your portfolio.
Do I have to buy an entire Bitcoin?
No, unlike conventional currency exchanges where you have to buy USD/Euros etc in bulk by selling Ripple or other cryptocurrencies, when buying Bitcoins only 20% of transaction needs to be converted into fiat currency whereas 80% can remain in cryptocurrencies like Ethereum or XRP.
