What is Cryptocurrency

 

Crypto currency

Cryptocurrency has been touted as the future of money, and for good reason. It offers unprecedented security, privacy, and convenience to users who are looking for a better way to send money across borders or shop online. But what is cryptocurrency, exactly? And how can you use it? In this blog post, we’ll explore the ins and outs of cryptocurrency and discuss some of its key benefits. We’ll also look at some practical applications of cryptocurrency and the potential implications it may have on our economy in the years to come. Ready to dive in and learn more? Let’s get started! below are some examples of crypto currencies

BITCOIN

When it comes to digital currencies, Bitcoin is the clear leader. It was the first decentralized cryptocurrency and remains the most popular and widely-used coins today. Bitcoin is often used as a investment vehicle, as well as a way to send or receive payments.

While Bitcoin is the most well-known digital currency, there are many other altcoins that have been gaining in popularity lately. Ethereum, Litecoin, and Ripple are just a few of the other crypto coins that have been making waves in the world of finance.

ethereum

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

Ether, the native currency of the Ethereum blockchain is used to pay for transaction fees and computational services on the Ethereum network.

With Ethereum, developers can build decentralized applications that run on a blockchain with no risk of fraud or third party interference.

The Ethereum network is kept running by nodes all around the world, each of which stores a copy of the Ethereum blockchain. When a user requests a transaction, their request is broadcast to all of the nodes in the network. The nodes then verify the transaction and if it is valid, they add it to the blockchain. Once a transaction is added to the blockchain, it cannot be changed or deleted.

litcoin

When it comes to cryptocurrency, Bitcoin is usually the first thing that comes to mind. But there are actually many different types of cryptocurrency out there. One of them is Litecoin.

Litecoin is a cryptocurrency that was created in 2011 as an alternative to Bitcoin. It has since become one of the most popular cryptocurrencies in the world.

Like Bitcoin, Litecoin is a decentralized digital currency that can be used to buy and sell goods and services. However, there are some key differences between the two currencies.

For one, Litecoin is faster than Bitcoin. Transactions on the Litecoin network are confirmed faster, which makes it ideal for certain types of transactions (such as online shopping).

Another difference is that Litecoin has a higher maximum supply than Bitcoin. There will only ever be 84 million Litecoins in existence, compared to 21 million Bitcoins.

Finally, Litecoin uses a different algorithm than Bitcoin (Scrypt instead of SHA-256). This makes it more resistant to ASIC miners, which means that anyone can mine Litecoins with a regular computer.

If you're interested in buying or using Litecoin, check out our guide to buying Litecoin for more information.

WHAT TO KNOW ABOUT SHIBA INU COIN

 

1. What is Shiba Inu?

Shiba Inu coins are cryptocurrency meme tokens and allow users to hold trillions of them, according to its website.These tokens are listed and incentivized on ShibaSwap, its own decentralized exchange.

Its website claims to have locked 50% of its total supply to Uniswap, while the remaining has been burned to Ethereum founder Vitalik Buterin. The tokens feature the same Shiba Inu dog as Dogecoin, which has rocketed in popularity recently.

2. Why is Shiba Inu's price rising?

The value of Shiba Inu is currently sitting at $0.00003974, compared to a lower $0.0000006 in mid-April, according to CoinMarketCap.

At the time of writing, it’s down 5.32% in 24 hours.

However, the value of Shiba has skyrocketed by more than 430% in the past month. The rally was started by billionaire Elon Musk, who has a Shibu Inu puppy and posted a picture of it on Twitter.

But keep in mind that Shiba is trading fractional numbers - meaning rises might seem bigger.

In comparison, Dogecoin is currently worth $0.265938 - up from $0.005 at the beginning of the year.

A number of Dogecoin look-alikes have thrived thanks to the recent surging value of the Shiba Inu-themed coin.

3. Will Shiba Inu's rise and what will the price be in 2022?

It's tough to say where things will end up in a year from now because of the volatility cryptocurrencies are subject to.

The token hit its previous highest ever level at $0.00003641 on May 11, meaning it's up since then.

More recently, the trend has been favorable for Shiba.

Furthermore, some are bullish on Musk-touted cryptocurrency.

For example, crypto website Wallet Investor expects the value to reach $0.000053 in a year's time.

Meanwhile, Coin Price Forecast sees Shiba reaching $0.00008819 by mid-2022.

4. It aims to replicate the success of Dogecoin

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, previously told The Sun the token "appears to have been created" to give Dogecoin a run for its money.

She added: "It features the same dog which became a meme, and aims to replicate Dogecoin’s success of turning a joke into a money making machine."

The value of Dogecoin has surged thanks to celebrity backing, while a bunch of Reddit threads also called for it to hit a value of $1 per coin.

The Shiba token website said: "Nicknamed the DOGECOIN KILLER, this ERC-20 ONLY token can remain well under a penny and still outpace Dogecoin in a small amount of time (relatively speaking)."

WHAT DO YOU THINK WILL HAPPEN TO THE WORLD 10 YEARS FROM NOW?

 

The world is going Digital, the camera man and the pilot lost their jobs in just 10 years, I guess you are seeing companies trying to work on advanced robots?

Sooner or later they will run literally everything such as the bank, cafeteria, e.t.c

I URGE YOU TO LEARN ANY OF THESE

Learn machine language, Machine Language

Machine language is the language understood by a computer. It is very difficult to understand, but it is the only thing that the computer can work with. All programs and programming languages eventually generate or run programs in machine language. Machine language is made up of instructions and data that are all binary numbers. Machine language is normally displayed in hexadecimal form so that it is a little bit easier to read. Assembly language is almost the same as machine language, except that the instructions, variables and addresses have names instead of just hex numbers, it will enable you work in a high tech company like Tesla

Learn Coding. Coding is a list of step-by-step instructions that get computers to do what you want them to do. Coding makes it possible for us to create computer software, games, apps and websites. Coders, or programmers, are people who write the programmes behind everything we see and do on a computer. Only then you can make applications and softwares and believe me you will make a lot from it.

Learn How To Earn From Cryptocurrency (Bitcoin, Ethereum, Dogecoin etc) exchange, Cryptocurrency trading is the act of speculating on cryptocurrency price movements via a CFD trading account, or buying and selling the underlying coins via an exchange. Here you can make cool money with short time frame if only you know how it works.

I can guide you with this third option, if only you are willing to learn and definitely you will earn alot from it, most of us don't want to learn before earning, how do you expect success?

KEY TIPS TO AVOID BEING BROKE

Do you know you can be financially stable if you do these things?

1. Track Your Spending.

Majority of us can't give detail account on how we spend our money, we receive our salary today, the next thing it's gone.

That happens to me alot when I was much younger but I started keeping records of my spending, I'd be like, do I really need this thing I want to buy?, sometimes it's hard to differentiate between what I need and what I want, the minute I figured it out, it becomes more easier for me manage my resources.

2. Saving.

It's easier said than done but if you practice and perfect it, the sky will be your limit. How about saving every 10% of every of your income? You will surprise how much you will be able to generate.

Too difficult? It's not if you track your spending.

3. Investing

Investing is a way of generating more money with your initial input and it comes with a risk, well life itself is a risk. There several things you can invest on, such as:

i. Growth stocks

ii Stock Funds

iii. Bond funds

iv. Dividend stocks

v. Value stocks

vi. Target-date funds

vii Real estate

viiiSmall-cap stocks

ix. Robo-advisor portfolio

x. Roth IRA. E.t.c

We will discuss this segment extensively afterwards.

Following the principles above will stabilize you financially and eventually make you a happy man.

#htpfoundation

#lifecoach #lifestyle #lifehacking

WHAT SHOULD I KNOW ABOUT BITCOIN?

What Is Bitcoin?

Bitcoin is a decentralized digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious and pseudonymous Satoshi Nakamoto.12 The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms do, and unlike government-issued currencies, it is operated by a decentralized authority.

Bitcoin is known as a type of cryptocurrency because it uses cryptography to keep it secure. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to (although each record is encrypted). All Bitcoin transactions are verified by a massive amount of computing power via a process known as "mining." Bitcoin is not issued or backed by any banks or governments, nor is an individual bitcoin valuable as a commodity. Despite it not being legal tender in most parts of the world, Bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as BTC when traded.

KEY TAKEAWAYS

1. Launched in 2009, Bitcoin is the world's largest cryptocurrency by market capitalization.

2. Unlike fiat currency, Bitcoin is created, distributed, traded, and stored with the use of a decentralized ledger system, known as a blockchain.

3. Bitcoin's history as a store of value has been turbulent; it has gone through several cycles of boom and bust over its relatively short lifespan.

4. As the earliest virtual currency to meet widespread popularity and success, Bitcoin has inspired a host of other cryptocurrencies in its wake.

Understanding Bitcoin

The Bitcoin system is a collection of computers (also referred to as "nodes" or "miners") that all run Bitcoin's code and store its blockchain. Figuratively speaking, a blockchain can be thought of as a collection of blocks. In each block is a collection of transactions. Because all of the computers running the blockchain have the same list of blocks and transactions and can transparently see these new blocks as they're filled with new Bitcoin transactions, no one can cheat the system.

Anyone—whether they run a Bitcoin "node" or not—can see these transactions occurring in real time. To achieve a nefarious act, a bad actor would need to operate 51% of the computing power that makes up Bitcoin. Bitcoin has around 13,768 full nodes, as of mid-November 2021, and this number is growing, making such an attack quite unlikely.3

But if an attack were to happen, Bitcoin miners—the people who take part in the Bitcoin network with their computers—would likely split off to a new blockchain, making the effort the bad actor put forth to achieve the attack a waste.

Balances of Bitcoin tokens are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that creates them. The public key (comparable to a bank account number) serves as the address published to the world and to which others may send Bitcoin.

The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Bitcoin keys should not be confused with a Bitcoin wallet, which is a physical or digital device that facilitates the trading of Bitcoin and allows users to track ownership of coins. The term "wallet" is a bit misleading because Bitcoin's decentralized nature means it is never stored "in" a wallet, but rather distributed on a blockchain.

Peer-to-Peer Technology

Bitcoin is one of the first digital currencies to use peer-to-peer (P2P) technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network—Bitcoin "miners"—are in charge of processing the transactions on the blockchain and are motivated by rewards (the release of new Bitcoin) and transaction fees paid in Bitcoin.

These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoins are released to miners at a fixed but periodically declining rate. There are only 21 million bitcoins that can be mined in total. As of November 2021, there are over 18.875 million Bitcoin in existence and less than 2.125 million Bitcoin left to mine.4

In this way, Bitcoin and other cryptocurrencies operate differently from fiat currency; in centralized banking systems, the currency is created at a rate matching the growth of the economy; this system is intended to maintain price stability. A decentralized system, like Bitcoin, sets the release rate ahead of time and according to an algorithm.

Bitcoin Mining

Bitcoin mining is the process by which Bitcoin is released into circulation. Generally, mining requires solving computationally difficult puzzles to discover a new block, which is added to the blockchain.

Bitcoin mining adds and verifies transaction records across the network. Miners are rewarded with some Bitcoin; the reward is halved every 210,000 blocks. The block reward was 50 new bitcoins in 2009. On May 11, 2020, the third halving occurred, bringing the reward for each block discovery down to 6.25 bitcoins.5

A variety of hardware can be used to mine Bitcoin. However, some yield higher rewards than others. Certain computer chips, called application-specific integrated circuits (ASICs), and more advanced processing units, such as graphic processing units (GPUs), can achieve more rewards. These elaborate mining processors are known as "mining rigs."

One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi.6 If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places.

Early Timeline of Bitcoin

Aug. 18, 2008

The domain name Bitcoin.org is registered.7 Today, at least, this domain is WhoisGuard Protected, meaning the identity of the person who registered it is not public information.

Oct. 31, 2008

A person or group using the name Satoshi Nakamoto makes an announcement to the Cryptography Mailing List at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party." This now-famous white paper published on Bitcoin.org, entitled "Bitcoin: A Peer-to-Peer Electronic Cash System," would become the Magna Carta for how Bitcoin operates today.1

Jan. 3, 2009

The first Bitcoin block is mined—Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.8

Jan. 8, 2009

The first version of the Bitcoin software is announced to the Cryptography Mailing List.

Jan. 9, 2009

Block 1 is mined, and Bitcoin mining commences in earnest.

Who Is Satoshi Nakamoto?

No one knows who invented Bitcoin, or at least not conclusively. Satoshi Nakamoto is the name associated with the person or group of people who released the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009.1 In the years since then, many individuals have either claimed to be or been rumored to be the real-life people behind the pseudonym, but as of November 2021, the true identity (or identities) of Satoshi Nakamoto remains obscured.

Although it is tempting to believe the media's spin that Satoshi Nakamoto is a solitary, quixotic genius who created Bitcoin out of thin air, such innovations do not typically happen in a vacuum. All major scientific discoveries, no matter how seemingly original, were built on previously existing research.

There are precursors to Bitcoin: Adam Back’s Hashcash, invented in 1997, and subsequently Wei Dai’s b-money, Nick Szabo’s bit gold, and Hal Finney’s Reusable Proof of Work. The Bitcoin white paper itself makes reference to Hashcash and b-money as well as various other works spanning several research fields. Perhaps unsurprisingly, many of the individuals behind the other projects named above have been speculated to have also had a hand in creating Bitcoin.

There are a few possible motivations for Bitcoin's inventor to keep their identity secret. One is privacy: As Bitcoin has gained in popularity—becoming something of a worldwide phenomenon—Satoshi Nakamoto would likely garner a lot of attention from the media and from governments. Another reason could be the potential for Bitcoin to cause a major disruption in the current banking and monetary systems. If Bitcoin were to gain mass adoption, the system could surpass nations' sovereign fiat currencies. This threat to existing currency could motivate governments to want to take legal action against Bitcoin's creator.

The other reason is safety. Looking at 2009 alone, 32,490 blocks were mined; at the reward rate of 50 Bitcoin per block, the total payout in 2009 was 1,624,500 Bitcoin.9 One may conclude that only Satoshi and perhaps a few other people were mining through 2009 and that they possess a majority of that stash of Bitcoin.

Someone in possession of that much Bitcoin could become a target of criminals, especially considering that Bitcoin is less like stocks and more like cash, wherein the private keys needed to authorize spending could be printed out and literally kept under a mattress.

Special Considerations

Bitcoin as a form of payment

Bitcoin can be accepted as a means of payment for products sold or services provided. Brick-and-mortar stores can display a sign saying “Bitcoin Accepted Here”; the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touchscreen apps. An online business can easily accept Bitcoin by adding this payment option to its other online payment options: credit cards, PayPal, etc.

Bitcoin employment opportunities

Those who are self-employed can get paid for a job related to Bitcoin. There are several ways to achieve this, such as creating any internet service and adding your Bitcoin wallet address to the site as a form of payment. There are also several websites and job boards that are dedicated to digital currencies:

1.Jobs4Bitcoins is part of Reddit.com.

2. BitGigs describes itself as "a Bitcoin job board."

3. Bitwage offers a way to choose a percentage of your work paycheck to be converted into Bitcoin and sent to your Bitcoin address.

How to Buy Bitcoin

Many Bitcoin supporters believe that digital currency is the future. Many individuals who endorse Bitcoin believe it facilitates a much faster, low-fee payment system for transactions across the globe. Although it is not backed by any government or central bank, Bitcoin can be exchanged for traditional currencies; in fact, its exchange rate against the dollar attracts potential investors and traders interested in currency plays. Indeed, one of the primary reasons for the growth of digital currencies like Bitcoin is that they can act as an alternative to national fiat money and traditional commodities like gold.

In March 2014, the IRS stated that all virtual currencies, including Bitcoin, would be taxed as property rather than currency. Gains or losses from Bitcoin held as capital will be realized as capital gains or losses, while Bitcoin held as inventory will incur ordinary gains or losses. The sale of Bitcoin you mined or purchased from another party, or the use of Bitcoin to pay for goods or services, are examples of transactions that can be taxed.11

Like any other asset, the principle of buying low and selling high applies to Bitcoin. The most popular way of amassing the currency is through buying on a Bitcoin exchange, but there are many other ways to earn and own Bitcoin.

Market risk

As with any investment, Bitcoin values can fluctuate. Indeed, the value of the currency has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to any newsworthy events. According to the CFPB, the price of Bitcoin fell by 61% in a single day in 2013, while the one-day price drop record in 2014 was as big as 80%.17

If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless. Indeed, there was speculation that the "Bitcoin bubble" had burst when the price declined from its all-time high during the cryptocurrency rush in late 2017 and early 2018.

There is already plenty of competition, and although Bitcoin has a huge lead over the hundreds of other digital currencies that have sprung up because of its brand recognition and venture capital money, a technological breakthrough in the form of a better virtual coin is always a threat.

Why Is Bitcoin Valuable?

Bitcoin's price has risen exponentially in just over a decade, from less than $1 in 2011 to more than $68,000 as of November 2021. Its value is derived from several sources, including its relative scarcity, market demand, and marginal cost of production. Thus, even though it is intangible, Bitcoin commands a high valuation, with a total market cap of $1.11 trillion as of November 2021

Is Bitcoin a Scam?

Even though Bitcoin is virtual and can't be touched, it is certainly real. Bitcoin has been around for more than a decade and the system has proved itself to be robust. The computer code that runs the system, moreover, is open source and can be downloaded and analyzed by anybody for bugs or evidence of nefarious intent. Of course, fraudsters may attempt to swindle people out of their Bitcoin or hack sites such as crypto exchanges, but these are flaws in human behavior or third-party applications and not in Bitcoin itself.

How Many Bitcoins Are There?

The maximum number of bitcoins that will ever be produced is 21 million, and the last bitcoin will be mined at some point around the year 2140. As of November 2021, more than 18.85 million (almost 90%) of those bitcoins have been mined.18 Moreover, researchers estimate that up to 20% of those bitcoins have been "lost" due to people forgetting their private key, dying without leaving any access instructions, or sending bitcoins to unusable addresses.19

Should I Capitalize the B in Bitcoin?

By convention, use a capital B when discussing the Bitcoin network, protocol, or system. Use a small b when talking about individual bitcoins as a unit of value (for example, I sent two bitcoins).

Where Can I Buy Bitcoin?

There are several online exchanges that allow you to purchase Bitcoin. In addition, Bitcoin ATMs —internet-connected kiosks that can be used to buy bitcoins with credit cards or cash—have been popping up around the world. Or, if you know a friend who owns some bitcoins, they may be willing to sell them to you directly without any exchange at all.

TOP COMPANIES THAT ARE PAYING ITS EMPLOYEES IN BITCOIN

 

These are the Top companies that are paying their employees in Bitcoin.

The cryptocurrency market has continued to boom despite the global pandemic causing adverse conditions in the global economic market. Several startups have emerged in the crypto market space to cater to the ever-increasing demand for Bitcoin and other cryptocurrencies.

Over the years, the value of Bitcoin has increased up to a considerable extent. It has led several companies to accept this crypto as a legitimate means of payment and transactions. Recently, many companies have also started paying their employees in Bitcoin. Usually, crypto companies making their coins pay their employees in their local coin; hence, it is not unexpected.

Let us look at some of the top companies paying their employees in Bitcoin.

 

• GMO Group

GMO Internet Group focuses on developing internet infrastructure, online advertising, media, internet finance, and cryptocurrencies. GMO partners with sophisticated institutions, financial intermediaries, and families to provide innovative solutions to meet customer demands.

Last year, GMO declared that its employees would start receiving payments in Bitcoin. This initiative was taken to develop and promote cryptocurrencies. The offer was available for 4000 employees in the Japan headquarters of GMO.

 

• IM

Currently known as OpenWeb, Spot.IM aims to democratize and improve conversations online. The platform uses AI and machine learning to promote healthy dialogue, decrease toxicity, and improve engagement among different communities.

The company has opened its own cryptocurrency exchange where the monthly salaries of all employees will be converted to BTC and sent to the employees’ digital accounts. It considers the average of the highest and the lowest Bitcoin values on the day of the transfer so that market volatility does not affect the payments.

 

• SC5

SC5 is a Finnish internet technology company that develops applications, software, and offers other related services. The company performs technical evaluations and migration assessments. It also creates and implements concepts and solutions from ideation to post-analysis. SC5 has started paying its employees in Bitcoin long back in 2013.

• Fairlay

Fairlay is a Bitcoin prediction/betting market and a cryptocurrency exchange. Founded in 2013, the company aims at providing reliable information to everyone. Earlier, most of its predictions revolved around sports. But with the development and progress of the company, it proceeded towards crypto predictions and provides one of the most popular crypto betting platforms.

Since Fairlay is a crypto exchange, it has been paying its employees in Bitcoin for a long time.

 

• io

Founded in 2014, Purse.io is a website that provides its users with unused Amazon gift cards and also allows its users to buy products from Amazon on crypto. Purse.io pays its employees in Bitcoin Cash. This service aims to make crypto more useful. The wallet allows its users to name their discounts while shopping for any product on Amazon. It connects shoppers who wish to exchange their Amazon gift cards for Bitcoin.

 

• Bitwage

Bitwage aims at creating solutions for companies and their workers by providing services like payroll, invoicing, and digital assets. Since its launch in 2013, over 5000 qualified employees have applied for the service that pays in Bitcoin on Coinality. Bitwage allows converting fiat currency salaries into cryptocurrencies and, this service is currently available for all employees in the UK, US, and Europe.

 

HOW TO INVEST IN BITCOIN: A BEGINNER'S GUIDE

 

Over the last several years, Bitcoin has become increasingly popular amongst today’s investors. During that same time, there’s been a lot of debate about Bitcoin and other cryptocurrencies—Its proponents argue that it’s the future of currency and investing, while its detractors argue that it’s a risky investment option that may not generate big returns.

To better understand its true value in the marketplace, we must look to its latest movements. Most recently, Bitcoin’s valuation has increased more than 763% in just one year, easily outpacing traditional gains in the stock market. More people are buying into Bitcoin becoming a decentralized, global currency. One tailwind, in particular, is the acceptance of Bitcoin by several high-profile individuals and businesses.

Elon Musk, the mind behind both Tesla and SpaceX, recently announced his automotive empire would not only purchase $1.5 billion in Bitcoin, but it also intends to accept the cryptocurrency as payment in the future. Several popular FinTech (financial technology) companies like Square and PayPal also announced their intentions to support cryptocurrencies moving forward. Despite all of that, however, the most important development for Bitcoin may be the recent IPO (initial public offering) of Coinbase Global, Inc. (NASDAQ: COIN), today’s leading cryptocurrency exchange platform.

There’s no doubt about it: momentum in Bitcoin is certainly building. Recent developments have contributed to Bitcoin’s meteoric rise in value, and proponents of the asset are convinced this is just the beginning.

So, what exactly is Bitcoin, and how can you determine whether it’s the right investment for you? Read our beginner’s guide on how to invest in Bitcoin.

What is Bitcoin?

Bitcoin was created by a programmer or group of programmers using the name “Satoshi Nakamoto.” But the real creator(s) of Bitcoin is still unknown to the public.

Bitcoin is one of the most widely used types of cryptocurrency. Virtual “coins” or “tokens” are used in a cryptocurrency system instead of physical cash. Coins have no intrinsic value, and they aren’t backed up by gold or silver.

Bitcoin was created to solve a couple of big cryptocurrency flaws. First, it was designed to prevent crypto coins from being fraudulently duplicated. Think about how easy it is to make copies of your computer’s data—documents, photos, files, etc. Cryptocurrency wouldn’t be possible if anybody could duplicate a coin and create an unlimited amount of currency for oneself. You can’t just make copies of a $20 bill, right? Likewise, there’s a need to prevent people from reproducing crypto coins.

Understanding Blockchain Technology

Bitcoin uses a digital technology called “blockchain,” an advanced coding mechanism that disperses a single code over thousands of different computers. For example, let’s say that your coin is built from the code “XDA146DDS.” Blockchain segments the code into smaller pieces and stores the pieces of code across many computers. If a hacker wanted to access the code, they’d have to hack various computers to access the entire code.

Blockchain also employs a “public ledger,” which uses thousands of computers (referred to as “nodes”) to keep track of coins and their owners. If a coin’s data is changed, the nodes will cross-reference their records to verify whether the change is accurate and that the coin’s owner initiated it.

What is Bitcoin used for?

Once you purchase coins, you can use them in online transactions wherever they’re accepted. Remember, when you make a transaction with a coin, there’s no actual money being pulled from your bank account. Money only leaves your bank account when you purchase the coin itself—not when you make purchases with a coin.

Like cash currency, the value of a coin may fluctuate. That’s why some investors are getting excited about Bitcoin and other types of cryptocurrency. Investors speculate that Bitcoin’s value may rise significantly if there’s a surge in the market. I’ll explain the arguments for and against cryptocurrency investment later on.

For now, investors should pay special considerations to the rate by which Bitcoin and other relevant cryptocurrencies are being adopted. Not unlike traditional equities, Bitcoin increases in value when more people are interested, and more people are interested in buying Bitcoin today than ever before. Whether it is pure conviction or an inherent fear of missing out on what many predict to be the greatest transfer of wealth in American history, trading volume continues to increase exponentially. For the better part of a year, in fact, Bitcoin trading volume has steadily increased. As a result, Bitcoin is regularly testing new highs.

What Do You Need to Invest in Bitcoin?

You don’t need very much to invest in Bitcoin! You only need the following:

• Personal identification documents

• Bank account information

• A secure internet connection

Keep in mind—if you’re going to be purchasing coins through a stockbroker, you may not need to supply your personal information or financial information because your stockbroker will likely have all that on record.

How to Invest in Bitcoin in 5 Steps

Are you ready to dive into cryptocurrency? You’re in luck, as buying Bitcoin is simpler than you might think. Here’s how to invest in Bitcoin, in 5 easy steps:

1. Join a Bitcoin Exchange

2. Get a Bitcoin Wallet

3. Connect Your Wallet to a Bank Account

4. Place Your Bitcoin Order

5. Manage Your Bitcoin Investments

1. Join a Bitcoin Exchange

First, you’ll need to determine where you want to make a Bitcoin purchase. Most Bitcoin investors use cryptocurrency exchanges. There’s no official “Bitcoin” company because it’s an open-source technology, but there are several different exchanges that facilitate Bitcoin transactions. These exchanges are the middlemen of cryptocurrency investing, like a stock brokerage.

If you decide to purchase from an exchange, you’ll have to decide which exchange you want to buy from.

2. Get a Bitcoin Wallet

When you purchase a coin, it’s stored in a “wallet,” which is where all your cryptocurrency is stored. There are two types of wallets you can get: a “hot wallet” or a “cold wallet.”

A hot wallet is a wallet that’s operated by either your cryptocurrency exchange or by a provider. Some exchanges will automatically provide you with a hot wallet when you open your account. In any case, hot wallets are convenient because you’ll be able to access your coins through the internet or a software program.

Some notable hot wallets are:

• Electrum: Software that enables you to store your coins on your computer

• Mycelium: A mobile-only app for Android and iPhone users

However, hot wallets are not the most secure form of coin storage. If the hot wallet provider is hacked, then your coin information may be at risk.

A cold wallet is the safest storage method for your coins. A cold wallet is an actual piece of hardware that stores your coins, usually, a portable device that’s similar to a flash drive. Most cold wallets cost between $60 to $100. Some popular cold wallets are:

• Trezor

• Ledger Nano

If you’re only going to purchase small amounts of coin, then you might be fine using a hot wallet with an insured crypto exchange. But if you’re going to be trading large amounts of coin, then a cold wallet would be well worth your investment.

Need help deciding which wallet is right for you? Take a look at our picks of the best bitcoin wallets.

3. Connect Your Wallet to a Bank Account

When you’ve obtained your wallet, you’ll need to link it to your bank account. This enables you to purchase coins and sell coins. Alternatively, your bank account may be linked to your cryptocurrency exchange account.

4. Place Your Bitcoin Order

Now you’re ready to purchase Bitcoin. Your cryptocurrency exchange will have everything you need to buy. The big question is, how much Bitcoin should you purchase?

Some coins cost thousands of dollars, but exchanges often allow you to buy fractions of a single coin—your initial investment could be as low as $25.

Investing in Bitcoin is very risky, and it’s important that you carefully determine your risk tolerance and review your investment strategy before you purchase any Bitcoin. We’ll go over this in the next section.

5. Manage Your Bitcoin Investments

After you’ve purchased bitcoin, you can:

• Use your coins to make online transactions

• Hold your coins for a long period in the hopes it’ll appreciate in value

• Perform day trading with your coins—that is, buying and selling coins with other Bitcoin owners, which can be facilitated on the cryptocurrency exchange

Your cryptocurrency exchange will provide you with everything you need to buy and sell coins.

Is Bitcoin a Good Investment?

Here’s one of the most commonly asked questions about Bitcoin: is Bitcoin a good investment?

Well, the real answer is no investment is inherently “good” or “bad.” It depends entirely on your risk tolerance, your investment strategy, and your financial goals. Before you consider Bitcoin as an investment, you should carefully consider your own goals and determine what you want to accomplish in your investment activities. Do you want to develop a passive income? Become a full-time investor? Save for retirement? Answering these questions will help you figure out whether Bitcoin is the right investment option for you.

Bitcoin is a very high-risk investment because it’s a volatile asset. That means that Bitcoin values may rise or fall dramatically in value over a very short period—even as quickly as a few hours or days.

Like all cryptocurrencies, Bitcoin has no intrinsic value. It’s not backed by any physical asset, like gold or silver, and there’s no central regulator to ensure that the value remains stable. Furthermore, Bitcoin value isn’t linked to the profits of any one corporation. The value of Bitcoin is dependent on market demand. When there are more people buying Bitcoin, the value will increase. When there are fewer people buying Bitcoin, the value will decrease.

To make a significant profit on Bitcoin, you may need to rely on “timing the market,” which is a difficult and generally ill-advised investment strategy. Nonetheless, there’s a potential for profit.

Bitcoin vs. Other Investments

Choosing which investments to jump on and which to avoid can be a very confusing decision. Your choice will decide whether you enjoy great returns for years to come or you lose it all. It is impossible to turn on the TV or read an investment blog without hearing about Bitcoin. It is one of the hottest topics in the world right now, but it’s not the only way to invest your money, which begs the question: How does Bitcoin stack up against other wealth-building vehicles?

While Bitcoin is its own investment vehicle, it’s important to note that it can actually transcend investing borders. In fact, Bitcoin can be used concurrently with some of today’s greatest assets. Real estate, in particular, could benefit immensely from what’s known as “tokenization.” According to Tom Winter, CRO & co-founder of DevSkiller, “tokenization is the process of creating a virtual token representing ownership of an interest in real estate that exists on a blockchain (The core technology behind Bitcoin).” Winter suggests “tokenization has the potential of revolutionizing the global real estate market. It offers investors many advantages over existing investment options.”

The unique convergence of real estate and Bitcoin may award investors with attractive profits, but how do the two investment vehicles compare to each other by themselves?

Bitcoin:

• Many experts believe that Bitcoin is a bubble, meaning it is overvalued and could crash at any moment.

• Bitcoin’s value is volatile; it is equally prone to massive spikes and drops in price.

• Bitcoin is entirely digital, meaning it is more vulnerable to security breaches than a tangible asset.

Real Estate:

• Real estate is an investment that is backed by a strong historical record and the security of a tangible asset.

• Rising home values and rents are an excellent hedge against inflation.

• Depreciation, utilities, insurance, and repairs all allow real estate investors to qualify for valuable tax benefits.

• Rental properties provide consistent monthly cash flow you can rely on.

The Pros of Bitcoin Investing

The main benefit to Bitcoin investing is that you may be able to generate a huge return on profit, perhaps as high as 200% or more. Of course, that’s a challenging thing to accomplish, but it’s possible.

If you purchase a large amount of Bitcoin, you may be able to capitalize on a market surge and sell your coins for a much higher value when there are lots of buyers. There’s also a slight possibility that Bitcoin will truly become the currency of the future or a more popularly traded asset, and you could hopefully generate returns from long-term holdings. It should be noted, however, that Bitcoin values are generally decreasing every year.

Your success may depend on properly “timing the market.” In other words, you’ll buy coins when they’re at a low price and sell them when they’re at the highest possible price. High-risk investors who pay close attention to the market may be able to generate massive returns when employing that strategy. They might even generate returns that are highly improbable in the world of corporate stocks or government bonds. To that end, Bitcoin is incredibly liquid. According to Shaun Heng, VP of growth and operations at CoinMarketCap, “Bitcoin is one of the most liquid investment assets you can have and is more liquid than any other cryptocurrency.” As a result, any realized can actually be realized almost immediately.

The Cons of Bitcoin Investing

Unfortunately, the high volatility of Bitcoin makes it a hazardous investment, and you could lose money if you’re not careful.

“Depending on how much you’ve seen in recent months about Bitcoin, it may seem like one of the best investments to make,” says Jim Pendergast, SVP of altLine, “but the crackdown of governmental policies is making Bitcoin decrease in value, especially now.”

Bitcoin and other types of cryptocurrency are also at high risk of “pump-and-dump” schemes. Predatory investors will reach out to amateur or unassuming investors and convince them to pour a lot of money into Bitcoin. The resulting surge causes Bitcoin prices to increase rapidly.

The predatory investors are smart, and they sell all of their holdings before the buying surge ends, making a huge profit. But when investors stop buying, the value of the coins falls to extremely low prices. A coin bought for $200 could wind up having a valuation of just $30. The unknowing investors would be throwing their money away.

You could always make a profit by selling your coins before the price collapses, but it’s impossible to predict when the buying surge is going to stop—prices could fall 50% in only a matter of hours. That’s why any volatile asset, like cryptocurrency and penny stocks, are considered high-risk investments unless you a professional.

How to Invest in Bitcoin: Different Methods

There are several different ways to invest in Bitcoin, both directly and indirectly.

First, you can invest in a company  like us "HTP Foundation" Which utilizes Bitcoin technology. 

Purchasing Standalone Bitcoin

The most obvious Bitcoin investment strategy is purchasing standalone Bitcoin. Buying Bitcoin directly from an app like Coinbase allows investors to take “physical” ownership of the asset. That’s an important distinction to make, as Coinbase allows investors to actually buy Bitcoin and store it in their own encrypted wallets. In doing so, investors will simultaneously gain access to the asset’s price performance and use it as a currency to make subsequent transactions. Owning standalone Bitcoin isn’t all that different from owning any other currency, less the incredibly volatile swings in value.