In the last years cryptocurrencies have become very complete assets for users since they are presented as financial instruments that usually report a large number of benefits. In this matter, we have to say that currently there are many digital currencies in which we can invest, however, one of the most important is Bitcoin.
We say this because this cryptocurrency was the first that was launched on the market and also it is the one that has a greater value within it. Each time more transactions are carried out with it and step by step it has positioned itself as a reference asset within the financial market.
Taking into account the importance of this cryptocurrency, today we are going to know it in depth, so you will know what it is exactly and all the advantages that we have if we work with it. So get comfortable and read carefully the bitcoin guide that we have prepared for you.
- 1 What is Bitcoin?
- 2 How to buy Bitcoin?
- 3 How to invest in Bitcoin?
- 4 How to get Bitcoins?
- 5 Bitcoin Wallets
- 6 Bitcoin Exchanges
- 7 What can you buy with Bitcoin?
- 8 Bitcoin mining
- 9 Conclusions
What is Bitcoin?
The first thing we are going to do in our guide is to put yourself in the matter and tell you what Bitcoin is. In this sense, we have to say that it is the first cryptocurrency we could know since it was presented as a good alternative for investors.
When has bitcoin born?
Bitcoin was launched in 2009 and the inventor of the system on which it was based was the expert Satoshi Nakamoto. In those years, the financial crisis had hit very hard and for this reason an attempt was made to create a different asset that would allow users not to have to deal with the serious consequences that this period of recession brought.
Totally secure with Blockchain
The blockchain system is essential, which means that within it, transactions are created, each with an individual cryptographic code and the set of these movements is forming the blocks.
What is really curious is that these blocks are connected to each other, hence it is said that this system is one of the safest in the world, since all transactions will always be registered and we will know at all times where they come from or where they are going without a doubt.
The privacy and confidentiality of the blockchain are more than evident, for this reason, users increasingly trust in this cryptocurrency.
Within this new scenario, we have to comment that Bitcoin is a digital currency that moves in a decentralized market, which means that there is no established regulation that ensures the proper use of these financial services.
However, it must be borne in mind that the popularity of Bitcoin is increasing, which is why several countries in the world have already taken measures to regulate the situation of the famous cryptocurrency.
Without going any further, in 2013 Germany equated the investment of Bitcoin with gold, while the United States legalized this cryptocurrency so that its citizens could buy goods and services with it. Also, the National Bank of Belgium has done the same and even the European Union is considering creating a specific authority to take care of all this.
As you see, the bitcoin regulation is getting closer, in fact, in some countries like Mexico, they have already created a bill, the Financial Technology Law or Fintech, to avoid the risks that this digital currency can cause.
Compatibility with a lot of tools
In addition to all these things, we can not forget to comment that nowadays, there are many tools and supports that offer us good services so that we can carry out our operations.
Although the bitcoin blockchain is a reference in this matter, it must be said that this innovative technology has such important elements as is the case of virtual wallets, since without them, we would not be able to carry out our movements.
The blockchain is the own system of the cryptocurrency and the one that allows us to make a greater number of movements with it.
How to buy Bitcoin?
Whenever we want to carry out operations with Bitcoins, it is essential that we already have this type of cryptocurrency in our hands, for this reason, before making any movement, it is necessary that we buy the corresponding Bitcoins.
To be able to carry out this action, we have several ways that are very simple and that will allow us, in a short time, to obtain all the Bitcoins that are necessary to operate.
How do we do it? Let’s see all the possibilities that we have available.
As its name suggests, exchanges are places of exchange where we can exchange some coins for others. But in addition, most of them offer us the appropriate services, so that we can buy Bitcoins without problems.
In this matter, we have to say that some allow us to acquire these cryptocurrencies using fiduciary currencies such as the dollar or the euro and in other cases, we will have to have previously Bitcoins or other digital currencies, in order to acquire the amount we want.
They are usually online platforms that have good tools for us to carry out this type of operations. They are widely used by users and hardly expose us to great risks.
The only thing we will have to do is go to the platform, register and pay the amount of Bitcoins we want to obtain. Although there are many supports of this type, the most popular are Bitstamp, Kraken or Coinbase.
Through a salary
Another option that we have available to acquire Bitcoins, is to collect a salary in this cryptocurrency. More and more professionals are selling their services to be able to acquire Bitcoins, after having done their corresponding work.
This is not a practice that is still very normalized, but it is true that there are already companies that have introduced this option for the payments of their employees. Among others, we can talk again about Coinbase or even the startup Buffer.
Currently, those workers who perform technical or development tasks, are those who most often make use of this option, but taking into account the popularity that Bitcoin is acquiring, it is not ruled out that very soon, it will be extended to other markets or services.
As with fiduciary currencies, cryptocurrencies can also be obtained through an ATM. It is true that not everyone allows us to carry out this operation, but every time we find more ATMs, in different parts of the world, that offer the possibility of obtaining our Bitcoins quickly.
For this, we will have to have a wallet where we can store the cryptocurrencies and pay for them the corresponding amount. It is a very useful, quick and easy way to buy Bitcoins anywhere.
Lastly, we will talk about specialized stores because, as with ATMs, there are also many establishments in the world that allow us to perform this type of operation from a physical location. In this case, we will go to the premises in question and present all the necessary documentation to verify our identity and confirm that we have a Bitcoin wallet.
Once we have carried out these steps, we must only pay for the amount we want to obtain from this cryptocurrency.
How to invest in Bitcoin?
After buying the Bitcoins we wanted, it’s time to know what we should do to invest in this type of cryptocurrency. Logically, here is going to have a big role the bitcoin price, since, depending on the price that presents this digital currency in the market, it will be convenient to invest in one way or another or the most appropriate time to do so.
In any case, we are going to explain to you which are the three ways we have available to carry out our investment.
1. Bitcoin mining
The mining process is fundamental to be able to work with Bitcoin, since the miners are in charge of validating the transactions and creating the corresponding blocks. In this case, we have to say that through mining, we will have the possibility of investing in Bitcoins.
We say this because, at the moment we decided to be part of this process, the system offers the miners a reward for having adequately carried out all these movements, therefore, our investment in Bitcoins will be more than satisfactory.
2. Other digital currency
This second investment technique is closely related to the use of other cryptocurrencies. In this case, what is done is to obtain a large number of alternative digital currencies, such as Ethereum, Litecoin or Ripple, among others.
When we have them in our possession, we will have the opportunity to exchange with Bitcoins and thus obtain the amount of this type of virtual currency that we want. In this matter, we also have to say that the system allows us to speculate with this cryptocurrency, as it is done on other occasions with assets as popular as oil or gold.
3. Contracts for difference (CFDs)
As we already know, Contracts for Difference (CFD) are very beneficial, because they allow us to invest in any asset without having to acquire them physically. The truth is that CFDs are also going to be able to use them with cryptocurrencies, since the supports that offer this type of services have included digital currencies in their list of available assets to operate.
With which, it is a very fast and simple way to invest in Bitcoin and also, we will have the opportunity to obtain a large number of benefits.
How to get Bitcoins?
Both to buy Bitcoins and to invest in these cryptocurrencies we have a large number of channels. But we can also talk about several options if we want to obtain Bitcoins in other ways.
In this sense, we must return to remember that mining is a process through which we can acquire Bitcoins after solving the problems that arise in the system using specialized software and therefore, we will obtain the amount of Bitcoins that corresponds.
But in addition to this option that we have already named in the previous section, we also have to say that there are other available ways that will be very useful to obtain those Bitcoins that we need so much.
As a means of payment
Due to the popularity that Bitcoins are getting, there are more and more establishments that include these cryptocurrencies as payment methods. Therefore, it is a fast and simple way to obtain Bitcoins, since all we have to do is copy the QR code that we have assigned or give the address of the wallets to which we want to make the transaction.
Introduce us on specific websites
As we have already mentioned on another occasion, there are many exclusive pages where we can work with Bitcoins, but we must also say that other portals allow us to obtain these cryptocurrencies just by seeing advertisements in them or, if we dedicate ourselves to resolve captchas.
It is a very popular method among users, since it is very simple to carry out and we also have a large number of facilities. However, we can not forget to comment, which is also one of the ways that gives us less benefits, since most of the pages that allow us to perform these actions do not usually report large amounts of Bitcoins.
Invest in the market
As with any asset, cryptocurrencies are also presented as financial instruments in which we can invest and thus obtain a good number of Bitcoins. It has its own market, so it is very easy to carry out our operations.
In this sense, what we do is buy Bitcoins at a very economic price, taking advantage of market volatility and the position of Bitcoin in each moment and then, we will have to have a little patience and choose the right time to sell those Bitcoins to a higher cost.
We are referring to the revaluation of the cryptocurrency. If you opt for this method, in the market we have a large number of supports that offer good services for it, however, it is convenient that we do all this when we have enough experience performing these movements.
The virtual wallets are essential elements to work with Bitcoins, since it will be in these portfolios where we store all the cryptocurrencies that we accumulate. Taking into account that Bitcoin was the first digital currency, today, we have a large number of bitcoin wallets that we can use to perform these operations, for this reason, then we will detail some of the most complete and popular.
Electrum: it is one of the best Bitcoin wallets for desktop, since it has excellent security measures. One of its great advantages is that it not only allows us to work with Bitcoin, it also offers us all kinds of tools and services so that we can carry out our operations with other cryptocurrencies.
In addition, the storage we have available is cold, so we will have the opportunity to save all our digital currency offline, outside the network, so we will be exposed to fewer risks.
Exodus: Another of the wallets that are being used today is Exodus. It is a digital portfolio that is quite new, but that has not been any problem to position itself among the best in the market.
In this case, we will also be able to work with a variety of digital currencies and it is another desktop wallet. To work with this wallet, we must have a PC that has an operating system such as Mac, Linux or Windows.
MyCelium: The third wallet we are going to refer to is MyCelium, without doubt, one of the most complete wallets to work with Bitcoins, among other things, because it has some exclusive tools for it.
In addition to being able to store the accumulated cryptocurrencies, MyCelium offers us many other services, such as the purchase or sale of this type of digital currency.
Trezor: If we prefer a physical wallet to store our Bitcoins, then Trezor is the best option, since we can take this wallet anywhere, with the advantage that we will not be exposed to hacks or the risks that arise in network.
Everything we do will be offline. It is a very popular wallet among users and today, it is one of the most used by those who prefer a physical wallet.
In addition to the wallets, another of the important elements that we must take into account to make use of these cryptocurrencies are the bitcoin exchanges. As we already anticipated, exchanges are places of exchange where we can trade to exchange some coins for others.
In some cases, these supports only allow us to make these movements with Bitcoins or other digital currencies, but there are also some that offer us the possibility of doing the same using fiduciary currencies.
In any case, we have a large number of exchanges in the market through which we can carry out all these operations, that is why we are going to tell you which are the main ones that we have found in this market.
Coinbase: Undoubtedly, Coinbase is one of the best exchanges that we can use to work with Bitcoins. Due to its great popularity, we can use Coinbase tools in more than 32 countries around the world, taking into account that not only do we have Bitcoins available, we can also operate with other cryptocurrencies such as Ethereum or Litecoin.
Another thing that we must emphasize, is that Coinbase allows us to carry out transactions with fiduciary currencies, such as the euro, the dollar or the pound sterling and with the advantage that storage is cold.
Bittrex: Another of the most popular American exchanges is Bittrex, among other things, because it is one of the places of exchange that allows us to operate with a greater number of cryptocurrencies.
In particular, there are more than 190 digital currencies that we can use and, in addition, all the operations that we carry out have a fast execution and it is a support that presents excellent security measures.
Kraken: Kraken is the exchange par excellence of Bitcoins and was launched on the market in 2011. There is no doubt that it is a fantastic exchange if we want to operate with Bitcoins, Litecoin or Ethereum, since most of the tools and services it provides are based on this known cryptocurrency.
Anyway, if there is something that we should highlight Kraken is that it presents a great liquidity in euros, for this reason, for many, it is the best exchange that we can use to operate.
Bitstamp: The last exchange we are going to refer to is Bitstamp. It was also founded in 2011, but in this case, its main activity focuses on the countries of the European Union. Unlike the other exchanges, Bitstamp only works with Bitcoins, but it must be said that its services and tools are excellent.
Among many other advantages offered by this support, we must emphasize that it is one of the safest we can find on the market today.
What can you buy with Bitcoin?
Once we have our Bitcoins, it is important that we know what we can buy with these cryptocurrencies. The truth is that more and more companies are allowing us to acquire all kinds of items and services with these digital currencies, taking into account that one of the pioneers was Microsoft.
The US multinational included this payment method to offer greater facilities to its customers, although at the moment, this option is only available in the United States. Dell has been another of the companies that has added this route to the public.
For its part, the Amazon giant allows users to obtain most items from their catalog using Bitcoins. We refer for example to books, electronic devices or even food. And in this sense, in the food market, Domino’s Pizza has been one of the first restaurants, offering this type of service.
To name other companies that work with Bitcoin, we can highlight Expedia or Destinia and also, the airlines Air Lituánica and Air Baltica.
Finally, we must remember that we can pay with Bitcoins many other services and articles. This is the case of show tickets, as UK’s Theater offers us, all WordPress services and we can even participate in auctions with these cryptocurrencies.
In this last section, we will briefly review what is the mining process, also known as bitcoin mining. This process is very important to be able to carry out all the operations within this system, since, through mining, we will be able to create the blocks within the corresponding chain and verify the transactions.
In this sense, we have to say that the miners are those devices that are responsible for carrying out this process, which is why, in order to carry it out properly, we will need specific elements.
- Must have a computer that contains a high-power CPU
- It is necessary to have a large storage capacity RAM
- We also want operations to run faster, then we must provide our computer with an exclusive graphics card.
In this case, the card will allow us to decipher the codes quickly and if the process is done correctly, we will get a large number of Bitcoins in return.
Within mining, we must know that it can be done individually, but nowadays, groups of miners, also called Mining Pools, have become very popular, since they allow us to carry out a greater number of operations and obtain multiple benefits, not only for what we have mined but also for the movements that have made the other miners of the group.
Taking into account all that we have just said, without a doubt, Bitcoin is a perfect cryptocurrency to be able to operate and obtain a greater number of profits. It is the digital currency par excellence and the one with the most value in the market.
In addition, we have multiple services and tools that are based on your system so that we can perform all the operations that we need and of course, we can not forget that it offers us good security measures and that we have the best guarantees if we want to operate from an appropriate form.
So before starting to work with Bitcoin, don’t forget to check all the available services and compare the options to choose the best one between them.