Unless you have spent the better half of the last decade hidden behind a rock, you have heard of Bitcoin at one point or another. Though Bitcoin has been around for some time now, it didn’t reach mainstream popularity until the mid-2010s, and since then it has only continued to grow in popularity.
Bitcoin was actually created straight after one of the biggest recessions that we have seen in our lifetimes, in the year 2009. Its original purpose was to be nothing more than a currency that could be used among peers, during a time where financial security was practically non-existent. However, it was quickly picked up by crypto investors who realised that the value of Bitcoin often fluctuated, which meant that there was an opportunity for money to be made.
Now Bitcoin is used over the world and has some serious value to it and more and more people want to see if they can get in on this money-making opportunity. Though it is likely that you have heard of Bitcoin, it is probable that you don’t understand how it works, which is completely understandable. To someone unfamiliar with cryptocurrency, Bitcoin can be a confusing concept, but that does not mean that it is impossible to get to grips with it. Whether you want to learn more so you can eventually invest, or you are just interested in knowing more about it, there are always resources that will provide some sort of education on the matter.
We know just how confusing crypto can be and so to help you understand it better, here is our beginners guide to Bitcoin in 2021.
What Is Bitcoin
As previously stated, you definitely recognise the name Bitcoin, but that does not mean you understand exactly what it is. Looking it up or asking someone with expertise in that area will often get you an ambiguous answer that you don’t understand and within this article, we want to avoid that completely. The most simple way that Bitcoin can be described is as a form of currency that is completely online. Bitcoin has no physical form, nor does it have a consistent set value. The best way to think of Bitcoin is as a currency much like the one you use every day, but in a virtual country that is not very economically stable.
Bitcoin can be used much like any normal money, to buy goods and services, but it has not got the consistency of your standard day to day currency. You can also send Bitcoin, or a percentage of your Bitcoin, to other people through the use of a virtual wallet. So just picture Bitcoin in the same light as you do money.
No Government Control
One of the biggest aspects of Bitcoin that sets it apart from other forms of currency is the fact that it is not controlled by the government. The government prints and distributes all of the physical money that you can own, which means that they have full control of it. This means that if there was any type of shortage of some sort and the government were unable to distribute their money, they could simply decide to freeze it. The best example of this was Greece during its 2015 crisis when all of the banks were frozen and there were limitations on how much money people could withdraw within a day.
Bitcoin is not government-controlled and so can not fall victim to the same fate as your standard currency, which is one of the main reasons that so many people have chosen to invest so much in it. However, though it is not exposed to the same risks as your usual money, it is important that it is possible for Bitcoin to crash, so don’t get carried away and invest all of your money into it.
Now that you are a lot more familiar with what Bitcoin is, you may be wondering hur köper man Bitcoin, and you’ll be surprised to know that the process is quite straightforward.
You can purchase Bitcoin by using several different cryptocurrency sites, such as Etoro and other similar websites. Now, don’t just buy Bitcoin at the next available opportunity, wait around a bit. It is important to remember that the price of Bitcoin continuously fluctuates and if you want to get a good deal, wait until there has been a big price drop in its worth. The price will inevitably go up again, so do not be too worried about investing your money, as you will likely see a return of some type.
You do not want to jump the gun and invest too early, as there are many factors that can occur that can impact the price of Bitcoin, so be sure to check in with people who understand the process. If you look online, you will be able to find a lot of groups full of people with a talent for predicting crashes or even value increases, they will be able to teach you some handy tricks of the trade that may make your Bitcoin experience much easier.
Something that we can recommend is not cashing out entirely when you want to make an exchange, as you will only have to buy that amount back, so keeping some bitcoins stored safely in your Bitcoin wallet is a sure way to ensure security.