What is Bitcoin – Beginner’s guide

Last updated on August 14, 2019

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What is Bitcoin?

Bitcoin is a peer to peer electronic cash system. All the transaction records on decentralized blockchain ledger help of cryptography(secure coding method). These transactions validate by network miners( solve complex cryptography) where miners rewarded according to the hash power( CPU and GPU ) provided to the network. In the bitcoin network, two parties do transaction trusty and securely help of cryptography and blockchain technology without any intermediaries like a bank.

Who invented the bitcoin?

Bitcoin was founded by a mysterious person called Satoshi Nakamoto in October 2008 as open-source software. This mysterious person can be a group of developers, government or FBI until now person not reveal. On 3rd of January 2009 bitcoin network created by Satoshi Nakamoto and genesis block was mined in the bitcoin blockchain where genesis block is a fist created or mined a block of any blockchain network.

When did bitcoin start to trade on exchanges?

In the 2010 first quarter, First exchanges were founded and which is Bitcoinmarket.com. Bitcoin price is 0.005$ at that time and 0.5$ the end of 2010. Finally, it was reached nearly 20000$ in December of 2017. If you want to look more about bitcoin price history check out Coinmarketcap

Major milestones in the history

  • In October 2008, Satoshi Nakamoto published Bitcoins white paper.
  • In January 2009, Genesis block mined( Genesis block is first creating a block of any blockchain)
  • In the 2010 first quarter, First Bitcoin Exchange launched.
  • In 2011, First exchange hacked which is called Mt.Gox
  • In February 2014, Popular Mt.gox again hacked and 850000 BTC stolen
  • In December 2017, Bitcoin price hit 20000$

Key Metrics of Bitcoin Network

TickerBTC
Max supply21,000,000 BTC
Circulation supply 17,794,787 BTC
Market rank#1
All-time high 20,089.00 USD
White PaperLink
Official websiteBitcoin.org
Block Reward12.5 BTC
Reward TimeAverage 10 Minutes
Block ExplorerBTC.com

Bitcoin Blockchain

The bitcoin blockchain is distributed public ledger records network transaction formation by the chain of blocks. These blocks link together using block hash where the connection goes up to genesis block. There network nodes( computers) spread all over the world and these nodes maintain the network. These blocks contain multiple transactions after mined that block eventually added the ledger and copy of the new ledger published on every nodes because of this double spending can be avoided.

Bitcoin mining

bitcoin miner or mining rig

Bitcoin mining is a validating the process of the blockchain transactions. Nowadays a lot of hash power want to validate the blocks because it is difficult to mine block individually and It will take a long time to reward. In this case, pool mining comes into a reality where a group of people will give their hash power together to network and reward will be according to their hash power.

BTC wallet

This is the storage function of bitcoins and facilitate to connect to the blockchain without downloading whole transaction ledger. When generating a wallet there are two keys which are a public and private key. A public key is used to send and receive bitcoin and a private key is used to access the wallet and to the blockchain. If private key losses and the loss of all funds available on the wallet, no way to access it.

If you want to know, how to create bitcoin wallet refer How to create a Bitcoin wallet step by step guide

3 Methods to invest in BTC

Bitcoin price movements
Bitcoin price movement

BTC is a digital asset and eventually is got eyed on an investor in the past. There is a lot of risks involved with cryptocurrency investing because these digital asset’s price was more volatile than traditional assets like stock and real estates. There several methods to invest in bitcoin and bitcoin network, which are,

  • General trading
  • Hodle ( buy lower price and sell higher price)
  • Mining bitcoin( Profitable business model if energy access is cheap)

01. General trading

There are 3 methods to get profit from BTC trading the short term which are,

01. Buy/Sell BTC for USD or Stable coin for taking 1% – 50% on a daily basis

 ExchnageSupported countriesInitial KYCWebsite
binanceBinanceGlobalNoTrade Now
BittrexBittrexGlobalYesTrade Now
bitstampBitstampGlobalYesTrade Now
coinbaseCoinbaseUS,Canada,EuropeYesTrade Now
cex.ioCexGlobalYesTrade Now
etoroeToroGlobalYesTrade Now

02. Margin trading

This is a method to get profit from both markets go higher or go lower situations. There are a lot of margin trading platforms exists.

 ExchangesSupported countriesInitial KYCWebsite
BitfinexGlobalYesTrade Now
Huobi globalHuobi GlobalGlobal without USNoTrade Now
poloniexPoloniexGlobalNoTrade Now
krakenKrakenGlobalNoTrade Now
binanceBinanceGlobalGlobal without USNoTrade Now
cex.ioCexGlobalYesTrade Now

03.Leverage trading

Leverage trading is a method to increase the capital through borrowing amount of asset from the broker, Exchange where high leverage, high return and high risk involving and low leverage, low return and low risk. It is available 1x to 100x leverage for both platforms.

 ExchangeSupported CountriesInitial KYCLeveragesWebsite
bitmexBitmexGlobalNoupto 25xTrade Now

PrimeXBT
GlobalNoupto 100xTrade Now

02.Hodle

Hodle means the term for holding a digital asset for a long period of time to get profit which follows the most investors and cryptocurrency enthusiasts,

As an example, In January of 2017 BTC price was 950$ and At the end of year price hit 20000$ and Total gain was nearly 21x. To take this amount of return, you need to take the right decision at the right time.

A place to buy BTC right and trusted way using Credit/debit card easily.

 ExchangeSupported CountriesFeePayment optionWebsite
coinbaseCoinbaseUS,Europe,Canada1.5%Credit/debit card,
Wire transfer
Visit
CexGlobal3.5%Credit/debit card,
Wire transfer
Visit
coinmamaCoinmamaGlobal5%Credit/debit card, Wire transferVisit
changellyChangellyGlobalN/ACredit/debit cardVisit
bitpandaBitpandaEurope5%Credit/debit card, Bank transferVisit
LocalbitcoinLocalBitcoinGlobalN/APaypal, Skrill, Wire transferVisit

Some of the people are looking to buy Bitcoins with PayPal but buying Bitcoins for PayPal is not easy and there are few ways to buy Bitcoins for Paypal trusted and secure way. Let’s look at this article to find out possible methods to buy Bitcoin for PayPal.

03.Mining

There are few options available for BTC mining which are Mining your own, Contribute to the mining pool and invest in cloud mining.

Starting own mining is a very expensive method because network difficulty goes higher every day. Then you need to provide a lot of hash power to the network in order get a block reward. You need to invest a lot of capital to buy mining equipment.

Contribute to the mining pool: mining pool is a kind of network where individual miners can provide their hash power to the pool and Get a share of block reward according to the provided hash power. This method is so popular and any can contribute with beginner level. Cheap electricity access is a key factor in getting profit. Check out popular pools Btc.com and Antpool.

Cloud Mining: which is buying hash power from the hash provider but investment returns low. Good things are, you don’t need to buy, maintenance the equipment, updating the software, cooling mining environment, etc. The genesis mining company is the best and reputable cloud mining platform

Conclusion: In this article included a little what is Bitcoin, Bitcoins network, Buying BTC and 3 methods investing Bitcoins. Bitcoin is a revolutionary concept and It will be money on the internet. Bitcoin is the best example of use cases for blockchain.


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