A beginner's guide on why and how to invest in bitcoin

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A Beginner's Guide on Why and How to
Invest in Bitcoin?

2People all around the
world still fancy whether it
is a good time to invest in
Bitcoin or any other
cryptocurrency. Bitcoin is
the most significant
cryptocurrency in the
market, and it has gained
attention from several
nations and people across
the globe. These
cryptocurrencies are
virtual assets that do not
exist like traditional
currencies.

3
● They facilitate the way we can do a transaction without any involvement
from the third party. At present, we, as a sender or receiver, have to deal
with a third party which facilitates a transaction.
● The main goal of Bitcoin is to free transactions from any form of the
mediator, and due to this particular feature, this cryptocurrency has gained
the largest market capitalization. However, not, many people know how to
invest in Bitcoin, which is why this blog is meant to help you.
● Nowadays, the internet is loaded with a number of websites that offer
crypto news and articles. In this article, I will discuss whether it is too late to
buy Bitcoin or any other cryptocurrency.

4
● Bitcoin was launched in 2009 by a group which described itself as Satoshi
Nakamoto. A whitepaper was issued by this group, which gave some insight
about this peer-to-peer digital cash system.
● The idea behind its launch was to introduce something which would
eliminate the mediator who takes part in the transaction or a regulator who
controls our money.
● At that time, about 10000 Bitcoins were used by someone to order just two
pizzas. This transaction can now be regarded as the most expensive one, as
the price of each Bitcoin has now reached more than $8000.
A Brief Look At The History Of Bitcoin

5
● Blockchain is an underlying technology behind Bitcoin. It is a decentralized
network which facilitates peer-to-peer transactions between the senders and
receivers. In simple words, blockchain is a never-ending chain of blocks.
● These blocks could have any piece of information such as date, time, amount
or any other thing that could be related to the transaction. Each block stores
a unique code referred to as 'hash', which uniquely identifies a block within a
blockchain system.
● Earlier, the size of a single block in the Bitcoin blockchain was 1 MB, but after
some year, some people demanded to increase the size of the block so that
larger transactions could be supported by the network.
Blockchain, The Technology Behind Bitcoin

● This resulted in a 'fork' which gave birth to a new cryptocurrency
known as Bitcoin Cash(BCH). Although the size of each block
increased, Bitcoin retained the top position due to its previous
popularity.
● The blockchain system contained millions of computers to verify
transactions, and each transaction could not be reversed within this
system. Thus, a system was introduced, which eliminated the third
party and which was completely decentralized.
6

● In a single year, this cryptocurrency saw a 28 times growth in its price
before a drop of 60%, and this event became a main event in the
crypto world which came to be known as 'Bitcoin Bubble'. Here, I
have provided a price chart which can tell you why Bitcoin gained the
status of a bubble.
6
Reasons Why Bitcoin Became a Bubble

● In 2011, Bitcoin started its journey with a price tag of 30 cents or
$0.30, and within some months, the price reached $30. However, in
the end, it again reached $5, which made Bitcoin the biggest bubble.
● In 2013, Bitcoin started with $15, and by the middle of March the price
reached $50, by next month one Bitcoin was valued $100, and within
two weeks its value doubled making a Bitcoin worth approximately
$230.
● In 2017, the value of Bitcoin reached $900, and at the year's end, it
was at $20000(this was the second-largest bubble).
6

● Basically, the best place to sell and buy Bitcoin is LocalBitcoins,
which is the most significant Bitcoin exchange platform that helps
match Bitcoin buyers and sellers reside at a very close distance and
could enable online transactions. Also, this exchange service offers
an escrow service, which was introduced to bring fairness for the
platform's users. Besides this, there are also other crypto exchange
platforms such as Binance, BitMEX, Coinbase and many more.
6
Which Is The Best Place To Buy Bitcoin

● Almost every potential investor whom I've met has asked at some point
the question- What is the future of cryptocurrency or Bitcoin? Digital
currencies possibly will proceed to settle into stable products, niches,
and uses, becoming a viable alternative to many fiat currencies.
● Unregulated crypto space is both undesirable and strange, as
governments are willing to maintain their monetary policies and
decrease the impacts of untamed crypto. Bitcoin, together with other
cryptocurrencies, could see increased stability and general use, as less
popular cryptos would gain adoption for specific purposes and
industries.
6
Why Is Cryptocurrency The Future?

● The answer to how much to invest in Bitcoin depends on three factors
which are as follows.
● 1. Risk Tolerance- It is the biggest factor. Wealthy people could spend
a significant amount of money and take risks. However, people with
small income could put a fraction of their savings to get some profits
from Bitcoin.
● 2. Timing-Timing is a factor which plays an important role. Earlier,
Bitcoin gained lots of attention within a short period of time, but now,
this cryptocurrency has become expensive. Still, we can invest in its
fraction, which is about $.
6
How Much To Invest In Bitcoin

● 3. Diversification- It is a system where an investor could reduce the
value of luck. It indicates the investor will not only spend in cryptos but
also allocate their resources to various investment vehicles which could
be real estate, stocks or even gold.
● The investor can also leave some of their investment at their bank to
make a little interest. Although it is a worse decision in terms of making
a profit, it will somehow secure your investments.
6

● The potential massive gains from Bitcoin aren't the single thing making
it such an interesting asset. The point that both the market and
technology are so young indicates there is a lot of space for
improvement and hence the growth in price.
● Bitcoin has spent a decade, and the quantity of work that is to be done
blockchain is more massively every year. The developers of Bitcoin are
always on duty, and the code is being worked on non-stop to improve
privacy, scalability and other impressive features.
6
Why Invest In Bitcoin

15
Conclusion
In this article, we have discussed some important things, such as the best
place to buy Bitcoin and how much to invest in Bitcoin. Besides this, we
have also discussed on how to invest in Bitcoin. As mentioned above, this
cryptocurrency has a huge potential to grow and could become the best
investment in the coming years. There are several platforms that provide
news on Bitcoin and other cryptocurrencies. From the above discussion,
we can say that it is a very good time to spend money on
cryptocurrencies.
Sources
https://www.cryptoknowmics.com/news/how-to-invest-in-bitcoin

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A beginner's guide on why and how to invest in bitcoin

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