A Complete Beginners Guide to Bitcoin in 2020

When you want to put your money into cryptocurrencies, choosing Bitcoin makes most sense because it has been around for more than a decade now. It is considered to be a stable, robust, decentralized digital currency that is based upon the blockchain technology. You can transfer the Bitcoin easily as long as you have an internet connection.

Bitcoin is open-source and this makes it possible for developers to work on developing its code constantly. It is considered to be “digital gold” and is said to have an edge over fiat currencies since its issuance is checked by a decentralized network and mining difficulty adjustments. You can be certain your investments will not get diluted because of arbitrary inflation.

When you are a beginner in Bitcoin investments, hodling strategy may work to your advantage as you can hold onto the assets for a longer period to experience a price surge. To store the Bitcoin you are going to need wallets; these can be hardware or offline cold storage wallets or online hot wallets. The best-known brands of cold storage wallets are Ledger and Trezor which help you to store both Bitcoins and other crypto coins. Short-term investors can use the hot wallets when they wish to experiment with smaller Bitcoin amounts or just want to try out sending and receiving Bitcoins for a start.

Earlier, people could mine Bitcoins using their own desktops and laptops and earn large amounts. However, things have changed today and mining difficulty has heightened. Now, you will need to invest in special computers or ASIC miners to solve the complex cryptographic puzzles. As a result, the demands for power and electricity have gone up. Hosting and maintaining mining rigs on your own may not be the best idea any longer. Instead, you can opt for cloud mining services that let you buy contracts for the mining rigs with big mining warehouses run by third party providers. Moreover, the invention of automated trading software applications has increased the speed of bitcoin trading helping the traders to yield good profit. Visit https://www.bitcoinrevolution.org/ to learn how the automated bitcoin trading software applications work.

The best places to buy and sell Bitcoins if you wish to become a trader are the crypto exchanges. There are many operational exchanges all over the world and you should check for online reviews to make sure they are credible and reliable before you sign up. Exchanges are prone to hacking attempts and it is better to check their track records and security provisions before you create an account. You can choose from decentralized exchanges, crypto-to-crypto exchanges, and fiat-to-crypto exchanges P2P marketplaces, etc.

The blockchain is a public ledger keeping records of all Bitcoin transactions so that everyone can view these. It takes almost 10 minutes for a block to be verified and a transaction to get confirmed. The costs of Bitcoin transactions, regardless of the distance involved, is referred to as the transaction fees. This fee is not fixed and the higher it is the quicker will be the transfer. Today, more and more businesses have started to accept the Bitcoin as payments. While the daily use of Bitcoins like regular fiat currency is still not prevalent, it is possible to use it for buying goods and services online.

Back to top