How to get bitcoins?

What makes bitcoins such an asset in the business world today, why you should consider investing in it, and more would be discussed in this article. Keep reading!

How did bitcoin originate?

Although the originator of the bitcoin cryptocurrency has been widely debated and severally disputed, the origin of bitcoin itself is known. The usage of blockchain-hosted currency started after the Great Recession of 2008 when it was obvious that traditional currency is falling below its expectation.

The inventor, Satoshi Nakamoto, created it in 2008 and by 2009, bitcoin miners have started to transact with it.

What makes bitcoin a currency or legal tender?

According to economists, the bitcoin is a legal tender because it satisfies three qualities of currencies. The three qualities are that it is in limited supply, hard to earn, and can be verified.

Bitcoins are mined through solving complex cryptographic puzzles that are being constantly uploaded on the peer-to-peer blockchain server. Once they are verified, it becomes a block added to the ones before it. This attribute qualifies bitcoin as not being easy to earn and verifiable.

Only about ₿19,116,356 are currently in circulation and this changes every 10 minutes when miners mine new ones. This qualifies it as being limited in supply.

How and where to get bitcoins?

If you are interested in owning or buying bitcoins, the good news is that you do not have to mine it. You can easily buy from crypto exchanges through your phone, tablet, or computer. Here are a few tips on how to invest in bitcoins.

• The best crypto exchanges in the UK are eToro, Uphold, Coinbase, Coinjar, Phemex, Revolut, Coinsmart, etc. These are platforms that offer you the opportunity to exchange your traditional or fiat currencies or cash to cryptocurrencies, a category in which bitcoin belongs. Fiat currencies are your everyday pounds, dollars, euros, etc. 
   
• These crypto exchanges will allow you to fund your bitcoin wallets using PayPal or other online payment platforms.
   
• After buying the bitcoin, you can either leave it on the crypto exchange platform to be exchanged for fiat currencies whenever you wish or you move it to the bitcoin wallet. You can also decide to leave some of it in the marketplace while the remaining is locked up in the crypto wallet. This way, the one left in the marketplace can be used for transactions and the one locked up is kept safe away from hackers. 
   
• Your bitcoin wallet can either be different or the same one provided by your crypto exchange. If you would like to use the wallet provided by the crypto exchange you are using, it’s all good. Otherwise, you can choose to use another private wallet away from your crypto exchange, for better security. We’ll talk more about this later.

When to invest in bitcoin?

You should invest in bitcoin if you perceive that the price may rise at any time. Just like any stock or shares, the price of bitcoin changes every time. So, there is no specific time when investing may pay off. However, if you are studious and studied the trend, you could predict a range of time when it’s best to buy bitcoin.

Why you should invest in bitcoin?

Buying bitcoin is the equivalent of making investments. While unlike real estate where real estate properties are more likely to appreciate, bitcoin is more like buying stock or shares. It can fall or rise depending on the market.

However, the high dependability of bitcoin is a good reason to invest in it. Unlike fiat currencies, bitcoin is hosted on a blockchain decentralized platform which means the central bank cannot just devalue it. The value of cryptocurrencies is determined by the users collectively. This makes it a very dependable investment to make.

Advantages of buying bitcoin

Like other forms of exchange, bitcoin can be used to do the following and more.

• Store large sums of money away from the bank.
• It is an easier and faster way of making purchases instead of cash and issuing a traditional or cashier’s check.
• Up until now, the government has not been really able to track purchases made through bitcoin which is why its use and acceptance are still being restricted.
• The bitcoin has more chances of appreciating when left for a period than your regular money. This makes it a more worthwhile investment than most stocks.
• The bitcoin cannot be devalued by a single entity, say the central bank for example.
• You can easily sell your bitcoin for cash when you need it for urgent mundane transactions.
• It is far more reliable and stable than other forms of currencies.

How to secure your bitcoin?

Bitcoin is an online investment and most often it is used and stored online. However, the best way to secure any crypto is to store it offline and make sure that the security keys to it are offline too. Let’s take a quick look at some of the ways by which you can keep your cryptocurrency safe from hackers.

1. Cold wallet – this is by far the most secure form of keeping your cryptocurrencies. The storage form is offline and comes in apps or USB drives through which you can keep your crypto. These apps give you a paper key that can be printed out and stored somewhere safe. Nobody can access your cryptocurrency except they can get a hold of your wallet as well as the key. Two providers of such offline crypto securities are Ledger and Trezor.
    
2. Hot wallets – these are the online wallets provided by crypto exchanges. While these are prone to hackers, there are ways you can still keep them safe. Some of those are that your wallet key should not be given away nor stored on the internet. You either write them down or print them and keep them somewhere safe. Also, always make sure to use a secure internet connection, never click on suspicious links or popups, make use of good antivirus software to secure your system, and use the 2-step authentication option of your crypto exchange platform.
    
3. Physical Bitcoin – for better security, some service providers are beginning to provide physical bitcoin for whoever wishes to buy, although you may need to pay an extra fee for them.

Conclusion

The blockchain technology has made it possible for buyers and sellers to buy and pay for goods easily, especially when large amounts of money are involved. Also, it has helped to remove international barriers and scrutiny that delays most payments.