An extremely promising market with multiple and varied benefits, investment in cryptocurrency continues to appeal to the general public. But like investing in the stock market or in real estate, putting money in a cryptocurrency requires having reliable, valid and relevant information. And precisely, here is our guide to better understand the investment in cryptocurrency.
Bitcoin (BTC) is considered the queen of cryptocurrencies or decentralized virtual currencies. But it is also the name of the blockchain protocol in which peer-to-peer transactions, or “peer-to-peer” in English, are carried out. And they are not controlled by the banks or the government. The first Bitcoin encrypted currency appeared in 2009. Of course, its creator, known by the pseudonym Satoshi Nakamoto, has not yet been exposed. Note that the BTC is not palpable. In other words, it is impossible to touch it because it is a virtual currency. The good news is that Bitcoin can be converted to fiat money like the US dollar or the euro.
Platforms to buy Bitcoin
As already mentioned, the best cryptocurrency trading platforms are preferred. These are of course Coinbase, Binance and eToro and currency.com. Each of them has particularly interesting advantages. The crypto-investor will only have to choose according to his needs. Kraken and Deskoin are also possible options for buying Bitcoins on the internet. Even French investors can use them and get the most out of them. However, it should be remembered that transaction fees vary a lot from one platform to another.
Should we invest in Bitcoin?
Several reasons can motivate a person (natural or legal) to invest in Bitcoin. There is, for example, the absence of any banking or government control over the decentralized network. Only BTC users can access the history of all transactions they have made on the Bitcoin network since opening their account.
Understanding the blockchain operating system
The BTC encrypted currency has a large database which cannot be controlled by the Central Banks. And this is shared on a decentralized peer-to-peer network. Blockchain technology makes it possible to secure transactions and confidential information recorded in the distributed network of Bitcoin. The different transactions are stored in blocks which are linked together in chronological order. 1 block is generated every 10 minutes in the blockchain. The transfer of information is impossible without the nodes (computers connected to the network) of the block chain.
Mining, an activity essential for the proper functioning of the entire network
Just like gold miners, Bitcoin miners work hard to get their jobs done. Their main mission is to generate new BTCs. But they are also responsible for verifying the transactions made on the Bitcoin network and for their security. Miners use powerful computers to create new Bitcoin virtual coins. Note that they generated $ 5 billion in 2019. Clearly, they earned $ 4.89 billion in rewards. Bitcoin miners receive 12.5 BTC / block in exchange for their services. The power of computing to mine Bitcoins is expressed in number of hashes processed per second. The SHA 256 hash function is the only hash algorithm used by Bitcoin.
How to earn Bitcoins for free?
It is possible to earn Bitcoins thanks to “faucets”. No more mining or buying on trading platforms. Just visit a website to get free satoshi. It is the smallest unit of measurement in Bitcoin. 1 satoshi equals 0,000,000 01 BTC. Conversely, 1 BTC is equivalent to 100 million satoshi. Of course, it is essential to create a bitcoin wallet to recover the satoshi offered by faucets.