Bitcoin: A Beginner’s Guide to Understanding and Investing in the World’s Most Popular Cryptocurrency

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Bitcoin Cryptocurrency has been around since 2009 and is the world’s most popular form of digital currency

that operates without the oversight of any one single authority or bank. But what exactly is it? And why should

you care? This beginner’s guide to Bitcoin will help answer those questions and more.

What Is Bitcoin Cryptocurrency?

Despite being invented less than a decade ago, Bitcoin has

quickly become one of the most talked-about technologies

in recent history. Even if you’ve never used or invested in

cryptocurrencies before, you’ve likely heard of it, thanks

to its ever-increasing value. For example, did you know that

$100 worth of Bitcoin purchased eight years ago would be

worth $75 million today? The price alone makes it hard not

to pay attention. In an effort to make more people aware of

what exactly Bitcoin is—and whether they should consider

investing—we’ve written a comprehensive guide. We’ll explain

everything from how bitcoins are mined to how transactions

work. Keep reading for all of your questions on what Bitcoin

is answered!

What Is Blockchain Technology?

If you’re anything like most people, you probably have heard

of blockchain technology but have no idea what it is or how it

works. In short, a blockchain is a decentralized database of

information that can be accessed by anybody with an internet

connection. Blockchain databases are distributed across a network

and all connected to one another. Each block has two parts,

containing information on both sender and receiver as well as

any additional data relevant to making a transaction work

(i.e., amount, currency). Records are permanent, unchangeable,

transparent, and available to everybody involved.

How Can I Buy Bitcoins?

The first step to buying Bitcoins is finding a place to buy them.

Many marketplaces are called bitcoin exchanges to allow people to

buy or sell Bitcoins using different currencies. Coinbase is a

leading exchange, along with Bitstamp and Bitfinex. But security

can be a concern: bitcoins worth tens of millions of dollars were

stolen from Bitfinex when it was hacked in 2016.

Does Bitcoin Have an Effect on Traditional Investing?

With a seemingly endless amount of options to choose from, there

are some red flags you can look out for before throwing your money

at an Initial Coin Offering (ICO). Many ICOs have been conducted

by companies that are little more than a website. Here’s how you can

spot an ICO scam. If it seems too good to be true, then it probably is

. When evaluating an investment opportunity, investors often find

themselves asking questions like How much will my return be? or

What does my rate of return need to be for me to make back my money?

The problem with these kinds of questions is that they don’t take into

account how long one might need to hold onto security in order for

their money-making goals (or exit strategy) to come true.

What Are Some Things That Attract Investors to Cryptocurrencies?

Is an Initial Coin Offering (ICO) right for your startup? The quick

answer is maybe. While not required, we recommend that startups

conduct thorough research on ICOs before they take part in one.

Here are five reasons why it’s a good idea to learn more about ICOs.

1. They Are Not Always Good Investments; 2. You Could Spend

More Time Preparing than Raising Funds; 3. There is Little or No

Regulation of ICOs; 4. Fraudulent Activity is Rampant; 5. Only

Serious Projects Should Participate in an ICO

How to Spot an ICO Scam (Initial Coin Offering)

Are you considering investing in an ICO? Before parting with your

hard-earned cash, take a moment to think through these key factors.

An investment into any start-up company is very risky; however,

there are steps that can be taken that will help protect you from falling

victim to a scam. Here are some questions you should ask yourself

before making an investment of any kind: Is it registered? – Is it listed

on any reputable cryptocurrency website like Coinmarketcap or

LocalBitcoins? Does it have a white paper? – A white paper is essentially

a sales pitch, so if one doesn’t exist then I would run away as fast as

possible. Does it appear legitimate?

Should I Consider Buying Into an ICO?

Initial coin offerings are starting to gain popularity, with startups

receiving billions of dollars worth of investor money. But as we

approach peak ICO, an increasing number of people are starting

to ask themselves a worrying question: is it too late to get involved?

For new investors looking at buying into an ICO, questions

naturally arise. How much risk should I take on? What exactly am

I investing in? And how can I avoid falling prey to one of those

pump-and-dump scams that seem all too common in cryptocurrency

circles? In order for you not only to find success with your investments

but also to enjoy your experience doing so, here are some essential tips

for making smart investment decisions.

The Final Word on ICOs

You’ve probably heard about initial coin offerings (ICOs) by

now, but you might be wondering what they are. In short, an

ICO is a fundraising strategy that uses cryptocurrencies.

However, it’s often more complicated than that—and far riskier.

Learn all about ICOs below before investing any time or

money into one of these offerings.

Click here

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