How to invest in Bitcoin?

 The answer to the question of how to invest in Bitcoin may seem complicated, but it is much easier if the process is set out in steps. 

You do not have to understand computer programming to invest in Bitcoin, but it is much easier than that, especially after reading this guide further that will help you get started, but always remember that investing in Bitcoin involves a high risk of volatility. 

Before we get to the heart of the matter, we must first know what we want to invest and invest in. 

Show content What is Bitcoin? It may seem hard to believe that a digital currency can be worth thousands of dollars. 

Although the code with each Bitcoin is nothing in itself, the markets value each Bitcoin in thousands of dollars. 

Bitcoin has partial value because it has much lower transaction costs than credit cards, in addition to a number of other features, including scarcity, as Bitcoin is scarce and becomes more difficult to obtain over time, as there is a Bitcoin production rate that is halved every four years . Over. 

This third section is no longer 6 days from the date of writing this article as Bitcoin mining is expected to drop from 12. 5 Bitcoin to 6. 25 Bitcoin. 

The total number of Bitcoin in circulation is gradually approaching the limit of 21 million set in 2009 by Bitcoin creator Satoshi Nakamoto. 

If the demand for bitcoin exceeds the speed at which it can be produced, the price will rise. 

As of January 2020, 18. 15 million Bitcoin units have already been generated, or 86. 42% of all Bitcoins. 

This situation does not guarantee a price increase, because cryptocurrencies are not widely predictable, even popular like Bitcoin. 

The value of Bitcoin on December 17, 2017 was $ 19,116. 98, but the price has dropped significantly and has not recovered since, from the beginning of 2020, the value of Bitcoin is very much dependent on the faith of investors, its integration in financial markets and the public interest in the use of money. 

Bitcoin transactions are stored using a common digital recording technology called blockchain. When consumers buy in dollars, banks and credit card companies check the accuracy of these transactions. Bitcoin performs the same function at a lower cost because it uses a system called hashing. 

If one person pays for another person with Bitcoin, the Bitcoin blockchain computers accelerate to verify the correctness of the transaction. 

To add new transactions to a blockchain, a computer has to solve a complex mathematical problem called hash. If the computer is the first to resolve the hash, it permanently stores transactions on the blockchain. 

If computers successfully add a block to a blockchain, those who helped with the verification process will be rewarded with Bitcoin. This process is known as Bitcoin mining. Similar to winning the lottery, the hash solution is mostly a matter of luck. 

However, there are ways to increase your chances of winning the competition. You can find the correct answer before another miner has anything to do with the production speed of your computer. In the early years, Bitcoin mining could be done efficiently using open source software on ordinary computers. Today, only special-purpose machines, known as hardware miners, can profitably exploit Bitcoin. Pools and mining companies now control most bitcoin mining activities. 

Before Investing in Bitcoin: There are several things that any prospective Bitcoin investor needs. 

The usual requirements are a digital wallet, personal identification documents, a secure internet connection, a payment method and an account in a cryptocurrency exchange. 

Valid payment methods that use this method include bank accounts, debit cards and credit cards. It is also possible to get bitcoins on special machines and via P2P platforms. 

Note, however, that Bitcoin ATMs are increasingly being issued by the government in early 2020. 

Privacy and security are a big issue for Bitcoin investors. Although there are no real bitcoins, it is generally a bad idea to show great interest. 

Anyone who gets the private key for a public address on a Bitcoin blockchain can authorize transactions, and if it is clear that the private key needs to be kept secret, criminals can try to steal the private keys if they discover great benefits . 

Be aware that anyone you enter into an agreement with can see the balance of the public address you use, so it's a good idea to make large investments in public addresses that are not directly related to the transactions. 

Anyone can see the history of transactions done on the blockchain. But while transactions are publicly recorded on the blockchain, it is not the identification of user information. 

In the Bitcoin blockchain, only the user's public key appears next to the transaction, which makes transactions confidential, but not anonymous. 

This is an important distinction that FBI investigators claim can follow transactions made on the Bitcoin blockchain to other online user accounts, including the digital wallet, and is a direct result of the policy of fighting money laundering. 

This should not worry most investors, as Bitcoin is legal in the United States and most other developed countries. 

Steps to Investing in Bitcoin: The First Step: Getting a Bitcoin Wallet If you have to choose a Bitcoin wallet, you have several options, some of which are titled in a topic:

5 best bitcoin storage wallets

Software and hardware wallets are the most popular wallets