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What is Bitcoin and how can you collect it? Cryptocurrency


 What is Bitcoin and how can you collect it? Cryptocurrency

What is the currency (Bitcoin - Bitcoin) and how you can collect it - and how to get started with it - and what are digital currencies A full explanation of cryptocurrencies

?What is Bitcoin


Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank.

It is difficult to fake. This is by design and superpowers: Bitcoins are not backed by the government or any issuing institution, and there is nothing guaranteeing their value other than the evidence at the heart of the system.

The reason they are worth the money is simply because, as people, we have decided they have value - like gold.

Since its public launch in 2009, the value of Bitcoin has increased exponentially. Although it once sold for less than $150 per coin, as of March 1, 2021, one bitcoin is now selling for around $50,000. With its supply limited to 21 million coins, many expect its price to only continue to rise over time, especially when larger institutional investors start treating it as a form of digital gold to hedge against market 
volatility and inflation.

?How does bitcoin work

Bitcoin is built on a distributed digital ledger called
(Blockchain), a digital technology based on a huge cloud database. As the name suggests, a blockchain is a set of linked data, made up of units called blocks that contain information about each transaction, including the date, time, total value, buyer, seller and a unique identifier code for each exchange. The values ​​are extended in chronological order and form a numeric block chain.

Once a block is added to the blockchain, it becomes accessible to anyone who wants to view it,

Blockchain is decentralized, which means that it is not under the control of a single organization. It's like a Google organization that anyone can work on. Nobody owns it, but anyone with a link can contribute to it. And just as different people update it, your copy also updates it.

Although the idea that anyone can modify the blockchain may seem risky, this is actually what makes Bitcoin reliable and secure. In order to add transaction blocking to the Bitcoin blockchain, it must be verified by the majority of Bitcoin holders, and the unique tokens used to identify user wallets and transactions must match the correct cryptographic pattern.

These codes are long random numbers, which makes it very difficult to generate fraudulently. This greatly reduces the risk of someone making a fraudulent Bitcoin transaction.

How to use bitcoin


In general, Americans usually use bitcoin as an alternative investment, which helps to diversify the portfolio apart from stocks and bonds. You can also use Bitcoin to make purchases, but few providers accept cryptocurrency .

Major companies that accept Bitcoin include Overstock, AT&T, and Twitch. You may find that some small business owners, convenience stores, or some websites also take Bitcoin, but you will have to do some research.

However, PayPal announced that it will enable cryptocurrency as a source of funding for purchases this year, and fund purchases by automatically converting crypto holdings into digital currencies for users.

They have 346 million users and are connected to 26 million merchants.

You can also use a service that allows you to connect your debit card to your crypto account, which means you can use Bitcoin the same way you would a credit card. This usually also includes a financial provider that instantly converts your bitcoins into dollars.

In other countries - especially those with less stable currencies - people sometimes use cryptocurrencies instead of their own currency.

Bitcoin provides an opportunity for people to store value without relying on a government-backed currency, it gives people the ability to hedge against the worst case scenario. You already see people in countries like Venezuela, Argentina, and Zimbabwe - in countries that are heavily indebted, Bitcoin is gaining massive traction .

How to invest in Bitcoin

Like stocks, you can buy Bitcoin and hold it as an investment.
No matter where you choose to hold your bitcoin, people's philosophies differ on how to invest it: some buy and hold for the long-term, some buy and aim to sell after the price goes up, and some are betting that its price will fall. Significant price swings, reaching $5,165 and $28,990 in 2020 alone.

In some places, people may use Bitcoin to pay for things, but the truth is that it is an asset that looks like it will appreciate relatively quickly for some time. So why sell something that next year will be worth a lot more than it is today? Most of the people who own it are long-term investors.

Consumers can also invest in a Bitcoin mutual fund by purchasing shares in a Bitcoin Gray Fund (GBTC), although it is currently only open to established investors who earn at least $200,000 or a net worth of at least $1 million. This means that most Americans cannot afford it. However, in Canada, various Bitcoin investments are becoming more accessible. In February 2021.


Bitcoin inheritance Even if you store your bitcoin securely, your heirs may not be able to access the bitcoin accumulated in your account in the event of your death or disability. It is necessary that you create a plan to make it easier for your children, wife or relatives to benefit from your Bitcoin in your account.

The best Bitcoin plan is someone with whom you can share your fixed wallet locations, hot wallet lists, and your exchange wallet addresses. Alternatively, you can contact the services of a family attorney and write a will .

?Should you buy bitcoin


In general, many financial experts support the desire of their customers to buy cryptocurrencies, but they do not recommend that customers know about their interest. And the biggest concern for us is if someone wants to invest in cryptocurrency and the investment of their choice doesn't do well, then suddenly they can't send their kids to college or school. So it wasn't worth the risk.



?How to buy bitcoins


Most people do not know how to buy bitcoins from exchanges, such as Coinbase. Exchanges allow you to buy, sell and hold cryptocurrency, and creating an account is like opening one in the Maldives - you'll need to verify your identity and provide some funding source, such as a bank account or debit card.

So you can buy bitcoin These are the main companies where you can buy cryptocurrency and Coinbase - Kraken - Gemini.

No matter where you buy your bitcoins from, you will need a digital wallet to store them. It could be 
the so-called hot wallet or cold wallet

Learn about the uses of both hot and  cold wallets


Even though cryptocurrency exists digitally, you can still store it both online and offline - using hot wallets and cold wallets. If you are a beginner, the easy access to offline hot wallets will prove to be more useful and versatile. However, cold wallets provide more protection from hackers and other actors. As part of your asset diversification journey, learn how to use both types of portfolios and how toCreate a bitcoin wallet

hot wallet


A hot wallet (also called an online wallet) is stored by an exchange or provider in the cloud. These secure companies offer you to buy hot wallet online Exodus, Electrum and Mycelium.

cold wallet


(or mobile wallet) is an offline device that is used to store bitcoins and is offline. Some of the mobile wallet options and these are the safe online companies from which you can buy cold wallet Trezor and Ledger.


Some important notes about buying Bitcoin:  While Bitcoin is expensive, you can buy partial Bitcoin from certain sellers. You'll also need to look up the fees, which are usually small percentages of your crypto transaction amount, but can really add up to your small dollar purchases. It may take at least 10-
20 minutes for you to see the Bitcoin purchase in your account.

What are the best cryptocurrencies and what is their market value?

Top 10 most updated cryptocurrencies in 2022
From Bitcoin and Ethereum to Dogecoin and Link, there are thousands of different cryptocurrencies that can make it confusing when you first get started in the crypto world.

These are the top 10 cryptocurrencies based on their market cap, or the total value of all coins currently in circulation:

  • Bitcoin (BTC)
  • Ethereum currency (ETH)
  • Binance Coin (BNB)
  • Cardano Currency (ADA)
  • Tether coin (USDT)
  • XRP Coin (XRP)
  • Dogecoin (DOGE)
  • USD currency (USDC)
  • Polkadot Coin (DOT)
  • Solana currency (SOL)


1. Bitcoin (BTC) Market Cap



More than 856 billion dollars

Bitcoin (BTC), created in 2009 by someone with the alias Satoshi Nakamoto, is the original currency. Like most cryptocurrencies, BTC runs on a blockchain, distributed across a network of thousands of computers. And it is hard to solve the crypto puzzle, a process called proof of work, Bitcoin is kept safe and secure from fraudsters.

The price of Bitcoin soared after it became a household name. Five years ago, you could buy bitcoin for about $500. As of August 2021, the price of one bitcoin was over $45,000. This represents a growth of about 8900%.

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Bitcoin is going up at a crazy price

2. Ethereum (ETH) Market Cap


: more than 357 billion dollars

Ethereum has also experienced massive growth. In just five years, its price has gone from about $11 to more than $3,000, which is more than 27,000%.

3. Binance Coin (BNB) Market Cap

: more than 70 billion dollars

Binance coin is a type of cryptocurrency where you can trade and pay fees on Binance, one of the largest crypto platforms in the world.

Since its launch in 2017, Binance Coin has expanded beyond the sole purpose of facilitating transactions on the Binance exchange platform. Now, it can be used for trading, processing payments or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

Its price in 2017 was only $0.10; In August 2021, it rose to over $419, an increase of nearly 419,000%.

4. Cardano (ADA)
Market value: more than $69 billion

Cardano's ADA token has seen relatively modest growth compared to other major cryptocurrencies. In 2017, the price of ADA was $0.02. As of August 2021, its price is $2.11. This is an increase of over 10,000%.

5. Tether Market Cap (USDT .)
: More than 64 billion dollars

Unlike some other forms of cryptocurrency, tether is a stablecoin, which means that it is backed by fiat currencies like the US dollar and the euro and by default keeps a value equal to one token. In theory, this means that the value of Tether should be more consistent than that of other cryptocurrencies, favored by investors who fear the high volatility of other currencies.

6. XRP Market Cap (XRP)
: more than 52 billion dollars

Created by some of the founders of Ripple, a digital technology and payments processing company, XRP can be used on the same network to facilitate the exchange of different types of currencies, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was $0.006. As of August 2021, it is priced at $1.14, which is an increase of nearly 19,000%.

7. Dogecoin (DOGE)
Market value: more than 40 billion dollars

Dogecoin was very well known thanks to celebrities and billionaires such as billionaire Elon Musk. Popularized as a joke in 2013, Dogecoin is quickly becoming a prominent crypto option, thanks to a dedicated community and creative memes. Unlike many other cryptocurrencies, such as Bitcoin , there is no limit to the number of tokens that can be created, which makes the coin vulnerable to a decline as supply increases.

The price of Dogecoin in 2017 was $0.0002. In August 2021, its price was $0.31 - an increase of 154.900%.

8. US Dollar (USDC)
Market value: more than $23 billion

The US dollar coin (USDC) is a stablecoin, which means that it is backed by the US dollar and has a target ratio of $1 to $1. USDC is powered by the Ethereum platform, and you can use the USD coin to complete global transactions.

9. Polkadot (DOT) Polkadot
Market value: more than 25 billion dollars

Cryptocurrencies may use any number of block chains; Polkadot coin (and its cryptocurrency) aims to integrate it by creating a cryptocurrency network that connects different networks so that they can work together. It has led to impressive growth since the launch of Polkadot coin in 2020. Between September 2020 and August 2021, its price increased by 774%, from $2.93 to $25.61.

10. Solana Solana (SOL)
Market value: more than 20 billion dollars

Developed to help use decentralized finance (DeFi), decentralized applications (DApps), smart contracts,

SOL was launched in 2020 and started at $0.77. By August 2021, it was priced at $73.19, a 9405% increase.

What are cryptocurrencies? What are its advantages
(and mistakes to avoid)

Cryptocurrency for beginners:
When people think of cryptocurrency, “complexity,” fear, anxiety, and difficulty come to mind. The idea has been around for more than a decade, but until now there are a lot of people who do not like the field or are not confident about it.

When Bitcoin debuted in 2009, it immediately caught the attention of governments and the tech industry. In a little while, people started asking about Bitcoin and what it is and how it is used - until the coin started rising at $19,783 a piece in 2017. Perhaps that was the reason why there was a huge buzz around the cryptocurrency, and suddenly people wanted to be in This field and to be fully informed about cryptocurrency and bitcoin.

Since the inception of cryptocurrency, other currencies have appeared in the digital sphere to serve as competition. Platforms like Ethereum, Ripple, Litecoin and more are also stable and worth investing in, as the technology brings the era of wallets and cashless payments.
What is cryptocurrency?
Before we go any further, we will explain in simple terms, a cryptocurrency is a type of money that exists only electronically or in other words only online - it is called digital money

First, it eliminates the need to create a government body, such as a bank, to print and issue it. Transfers are person-to-person, and do not have to go through an intermediary. It also allows instant transactions that do not have high fees. Let's review the various benefits of holding cryptocurrencies below.
What are the advantages of cryptocurrency?
It is the fastest and cheapest cryptocurrency
Instead of requiring  you to perform all the unnecessary rules and steps when sending money to someone else, transferring cryptocurrency is relatively simple and easy. There is no need for agents, brokerage fees, commissions and additional fees, which simply allows a quick, easy and cheap transaction.
Safe and confidential transactions
-  Every transaction made using cryptocurrency, which is secure and essentially anonymous. No one can get permission to spy on your financial activity or get your data from your account history, like banks. Only you have the ability to view your latest transactions.
Financial freedom for those who do not deal with banks
Worldwide, there are nearly 7 billion adults who are unbanked. This means that they do not have an account with any financial institution or mobile money service provider.
This happens due to the application process and the strict requirements that financial institutions demand of depositors, which can be a huge hurdle for many. Since this does not exist with cryptocurrency, an account can easily be created right away.

Express International Trade 

What could have taken days or weeks can be transferred in seconds with the help of a crypto transaction. Since these are online transactions that do not need to be transferred from one bank to another, the waiting time for money transfers is reduced, no matter where you are in the world.
Investment Opportunities Growing - It's been a while since the arrival of Bitcoin, and now there are about 5,000 different altcoins in circulation today, serving over 20,000 markets.
This sector will only grow in the future as the world adapts and takes on the needs of the postmodern population. A number of these currencies are already in use and in circulation today, and this will be an excellent investment opportunity for those who want to participate in their trading.
5 tips and tricks you should know about cryptocurrency
If you are planning to invest in cryptocurrency for the first time, it is important to get to know the new venture you are entering. Here are some things to keep in mind to help you navigate better in the field. Get to know the tips and they are as follows:
Look for reputable sources of information
Be prepared for ups and downs
Other alternative digital currencies help Bitcoin

stay awake

Conclusion
Look for reputable sources of information
There will always be many conflicting opinions about cryptocurrencies. Many believe that cryptocurrency is just a fad, and those who participate in it will only be disappointed.

If you are already convinced that it can benefit you, then just stick to sources you can trust and avoid hearing about bitcoin unbelievers. If you want to be a successful investor or the owner of an alternative currency, check the facts.
Be prepared for ups and downs
It's no secret that cryptocurrency is still not as stable as standard currencies - you need to be quick in your decisions and think about what will be best for your financial situation.

Even the most experienced cryptocurrency traders and owners still do not have complete control over the trends of these virtual currencies, so there is no need to fear if you find yourself in the same boat.
Other alternative digital currencies help Bitcoin
Only one part of the story when it comes to cryptocurrencies. Be careful not to put all of your eggs in one basket. Do your research and see which currencies have a stable performance, and choose your assets wisely.

stay awake
While cryptocurrencies have a higher security rating than traditional money, they have remained volatile to be vigilant. If you want to trade or hold large amounts of cryptocurrency in your mobile wallet, you must be prepared for the risks and vulnerabilities that you expose yourself.

Try to learn different ways of handling your new assets and see how you can manage your money in a responsible and comfortable way for you.
Conclusion
Mastering the world of cryptocurrency will take time, and like any skill, it takes experience, practice and continuous learning to discover how you can maximize the potential of your virtual currency - whether you want to use it for trading or everyday transactions.

A tip to remember when buying a popular currency
While some exchanges or brokers allow you to deposit money from a credit card, doing so is very risky - and expensive. Credit card companies process cryptocurrency purchases on credit cards as cash advances. This means that they are subject to higher interest rates than regular purchases, and you will also have to pay an additional cash advance fee. For example, you may have to pay 5% of the transaction amount when making a cash advance. This is in addition to any fees that a crypto exchange or brokerage may charge; It can be as high as 5% by itself, which means you could lose 10% of your cryptocurrency purchases for the fee.

Alternative ways to buy cryptocurrency
While buying cryptocurrencies is the most popular method today, it has remained a volatile and risky investment option. If investing in cryptocurrencies on an exchange or through a broker does not seem to be the right choice for you, here are some options for investing indirectly in Bitcoin and other cryptocurrencies:

1. Exchange Traded Funds (ETFs) Exchange Traded Funds (ETFs)
They are very popular investment tools that allow you to buy exposure to hundreds of individual investments simultaneously. This means that it provides immediate investment diversification and is less risky than investing in individual investments.

Crypto ETFs are in great demand, allowing you to invest in several cryptocurrencies at once. However, there are no crypto ETFs available for everyday investors yet, but there may be soon. As of June 2023, the US Securities and Exchange Commission (SEC) is reviewing three crypto ETF applications from Kryptcoin, VanEck and WisdomTree.
2. Investing in crypto-related companies
You can buy shares of companies that use or own the cryptocurrency and the blockchain that they operate. A trading account is required to buy shares of public companies such as:

Nvidia (NVDA) - This technology company designs and sells graphics processing units, which are at the heart of the systems used to mine cryptocurrency.

PayPal (PYPL) - Already a popular option for people who buy items online or transfer money to family and friends, this payment platform has recently expanded to allow customers to buy and sell select cryptocurrencies through their PayPal and Venmo accounts.
Square (SQ) - The payment service provider for small businesses has purchased more than $220 million in bitcoin since October 2020. In February 2021, the company revealed that bitcoin made up about 5% of cash on its balance sheet. In addition, Square's Cash app allows people to buy, sell and store cryptocurrency .

Beware of price fluctuations
As with any investment, be sure to consider your investment objectives and current financial situation before investing in cryptocurrencies or individual companies that have a significant stake in this space. Cryptocurrencies can be very volatile - one tweet can cause the price to drop - and this is a very speculative investment. This means that you have to invest with care and control.

Is it worth investing in Bitcoin?
When the price of Bitcoin is rising, it can be tempting to invest in the popular cryptocurrency. But while it could potentially be a profitable investment, you should be careful: It's an incredibly volatile buy, with experts recommending a large proportion of this risky asset class.

If you are not sure if investing in Bitcoin or other cryptocurrencies is a good idea for your needs, consider meeting with a financial advisor or an expert lawyer who can help you navigate and understand where cryptocurrencies fit into your investment strategy .

Should you buy Ethereum?
Ethereum is very popular, with more than 116 billion coins currently in the hands of investors. But just because it is one of the most popular cryptocurrencies does not mean that it is available to everyone.

Before buying a volatile investment such as Ethereum, it is a good idea to make sure that you do your research and that your funds are in good shape. Ideally, you should have an adequate provident fund, have minimal debt and ensure that your retirement arrangements are in good shape. Even if you have made all the preparations, it is important to diversify your investment portfolio, so that some investments are only in Ethereum or other cryptocurrencies .


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Comparison of Bitcoin and Sheba .

The team between Ethereum and Bitcoin .

Bitcoin price drop to its lowest level for 2022 .
Watch this video to learn more about Bitcoin

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