Introduction To Bitcoin And How To Buy It Legally
Cryptocurrencies are increasingly appearing on the television, the papers as well as online forums and social media. The interest is warranted as Bitcoin, the largest cryptocurrency currently has a sizable market capitalization and even though it tends to be rather volatile, it has attracted investors from around the world.
When bitcoin was introduced in 2009 one coin cost $0.003 and can you believe that its highest price ever has been $19,783 in 2017! So many millionaires and so many regrets were made because of bitcoin!
So what exactly is Bitcoin?
Bitcoin is the world’s first cryptocurrency. A cryptocurrency is a digital currency that anyone can use regardless of borders and other geographical barriers. It is not issued by any central bank and its records are maintained in a decentralized manner by millions of dedicated computers referred to as the blockchain. Since the information regarding the ownership of Bitcoin is spread widely and not in one place, attacking the cryptocurrency’s security is difficult, much harder than it is to breach the security of fiat money like the Pound, US Dollar, Euro and others issued by the central banks. Bitcoin’s ownership ledger is considered the single most foolproof record ever in existence so no one can conjure fake bitcoins out of thin air and enter it into circulation, unlike fiat currency.
Due to these useful features, Bitcoin is being adopted around the world at a swift pace. While many argue on the future possible use cases for the cryptocurrency, it is true that the crypto industry overall has matured as it is now recognized as a legitimate sector with rules different than the ones in place for fiat monies.
Just like other assets like Gold, Oil, Silver as well as stocks on the stock exchanges, Bitcoin is traded with the top fiat currencies around the world including the GBP, USD, EUR and the rest. Some traders hope to make profits by buying low and selling high while still others buy Bitcoin and hold it long-term (also known as HODLing in crypto linguistics). Bitcoin is also traded with other cryptocurrencies like Ethereum (ETH), Litecoin (LTC) and many others. All of this activity is called cryptocurrency trading and every day billions of pounds worth of cryptocurrencies are traded around the world, mainly through cryptocurrency exchanges.
What is a Cryptocurrency Exchange?
To trade cryptocurrency, you would need to install a cryptocurrency exchange app on your mobile phone or login through a browser on a computer. Coinbase is one of the top cryptocurrency exchanges operating in the United Kingdom and tens of thousands of users use it every day to make trades.
After signing up and providing some form of identification, you will be able to buy Bitcoin through the exchange using any regular debit/credit card. Once you have bought Bitcoin, you can start trading or if you prefer to hold on to it in the hope that it grows.
Coinbase is considered to be one of the most secure platforms to purchase and trade Cryptocurrency as it has excellent security features to bolster the logins to your exchange account with the different security options available including pattern logins, fingerprint login, email confirmations, 2 FA logins and much more.
Storing your cryptocurrency is easy, as Coinbase provides you with secure wallets for each currency, which has its own unique code. Sending and receiving cryptocurrency is simple through Coinbase and most other good exchanges.
Due to the consistent development and demand for cryptocurrencies, there are now even visa cards which you can use to buy goods and services using bitcoins and other cryptocurrencies. Some governments have even lifted the ban on cryptocurrencies and large businesses such as Facebook are considering creating their own coin.
Now is the time to get your head around it and start purchasing small amounts of cryptocurrencies, bitcoin has been around since 2008 so the critics have already been proven wrong.
You can join Coinbase here and get $10 of free Bitcoin