What exactly is Bitcoin?

Bitcoin is a decentralized peer-to-peer digital currency system designed to offer online users the ability to conduct transactions using a digital units of exchange referred to as Bitcoins. It is a digital currency.

Bitcoin is a system of digital currency that was Bitcoin system was developed in 2009 by an unidentified programmer(s). Since the time, Bitcoin has garnered huge interest and controversy as a possible alternative to US dollar, Euros , and commodities currencies like silver and gold.

The Rise of Popularity

Bitcoin was not receiving much attention in the realms of finance and business prior to the year 2009. It was a major topic in the period between 2011 and 2012 when it increased by over 300 percent. Bitcoin has experienced increased by 400% in value since August of this year. In the end, venture capitalists and investors from all over the world continue to attach attention to Crypto.

In the first quarter of 2014, venture capitalists put up $57 million for Bitcoin during the first quarter. This was and then 73% in the 2nd quarter, bringing it to $130 million. This is 50% more than the previous year’s total of $88 million. This is in stark contrast to 2012, when Bitcoin firms accumulated a tiny sum that was $2.2 million.

These numbers prove without doubt it is true that Bitcoin is worth the investment This raises the question what can you do to buy or invest in Bitcoin?

A set of guidelines for new investors in Bitcoin

The most simple and straightforward method of investing in Bitcoin is to buy bitcoins. There are many established companies, mostly in the US and overseas, that are engaged with purchasing and selling bitcoins. Bitcoin is abbreviated as BTC.

Coinbase

If you reside within the U.S. then Coinbase is the best option for you. Coinbase offers its clients BTC with an estimated mark at 1% more than the current market price. People living in those in the United States have the option to connect their Coinbase wallets to the bank account they have. In the end, future payments are easy. Coinbase also offers the option of automated bitcoin purchases from time to the time. For example, if you’re keen to buy $50 of bitcoins at the start of every month Coinbase lets you create an auto purchase for the amount you want to purchase.

Be aware about the conditions and terms prior to you start using this service. If you’ve signed up to an auto-bit coin subscription then you won’t be in a position to control the amount at which BTC is purchased every month. It is important to note that Coinbase isn’t functioning as an actual Bitcoin exchange i.e. you buy and sell coins directly from the company. Because the company has to obtain the coins from other buyers, you could face delays or interruptions when you place orders during market fluctuations that are swift.

BitStamp

BitStamp is a good fit for an ordinary bitcoin exchange. Bitcoin is an intermediary, allowing users to trade with other users, and not with an organization itself. The liquidity here is greater and there is the chance of finding an individual who will deal with you. There is a minimum fee of 0.5 percent that can be reduced to 0.2 percent if you make a trade of $150,000 within 30 days.

Alternative methods to purchase Bitcoins

Local Bitcoins

Exchange isn’t the only way to invest in bitcoins. Local Bitcoins are often used to purchase BTC offline. The site was created to connect purchasers and sellers. Bitcoins are locked from the seller’s escrow , and are only transferred to buyers.

The process of buying bitcoins on the internet isn’t always safe or reliable. Therefore, it’s best to talk with the sellers in the day and have a companion accompany you in case something goes wrong.