Bitcoin: what to start with?

0

Most of us have heard of Bitcoin whose value last year raised to impressive heights. Often there is a willingness to try and invest some money in this new generation currency in anticipation of a few hundred or even thousands of per cent of return on investment. Let’s look at possible ways to invest or otherwise acquire, and store this digital gold.

Create a wallet

You need the wallet to store your electronic money. This is partly like electronic banking but in this case you are supervising everything yourself. How to create the Bitcoin wallet that you will fully control yourself – see the article: Bitcoin: Creation of the wallet. Of course, there is also a simpler solution – the online wallet. Such a wallet is easy to create, for example, on the Coinbase platform (you can store your digital property on this platform, but you will not be able to trade it as long as this service is not provided in some European countries).

Get Bitcoin

You can acquire cryptocurrency usually buying or mining “it” (you can also get it as a gift but this article is not about it).

Buying

Basically there are two ways to acquire Bitcoin – from the sellers of the cryptocurrencies or “exchanges”. However, the exchanges will not necessarily be able to exchange euros into crypto currencies as in many cases exchanges only offer the possibility to change cryptocurrencies.

Quick buying

The most convenient place for this moment that may be used in North Europe, in our opinion, is the Bitit Cryptocurrency exchange. Everything in it is very simple – you pay for Bitcoin and the money is sent directly to the wallet.

Simple Bitcoin buying
Simple Bitcoin buying from the Bitit Cryptocurrency Store. You can choose the amount you want in euros from 25 EUR to 250 EUR

Please note that in order to buy from this store (like from many others) you will have to confirm your identity. In crypto world, it is a normal practice to confirm identity by sending photos (for example, a selfie, the passport  photo, a selfie picture of yourself holding your ID/Passport, a selfie picture of yourself holding the credit/debit card that is used to pay).

Cryptocurrency exchanges

Cryptocurrency exchange
Cryptocurrency exchange is more complex method to buy Bitcoin. The example presents exchange with Ethereum.

Trading in exchange offices/cryptocurrency stock markets often (but it is not a rule) takes place between cryptocurrencies, in other words it will not always be possible to directly exchange euros for the BTC. This method is more complex and therefore requires at least basic knowledge of trade.

Mining

You can acquire the cryptocurrency without having to pay money for it – by “mining”, which is approving of transactions. To do the mining you need a really powerful computer. In fact, due to the complexity of the algorithm, the computer will no longer suffice – you need special equipment). Otherwise, you should sign up for a server in order to do mining (cloud mining). For more information see the article Bitcoin mining.

Actually, today it is more worth to mine (this is the precise term used in the world to describe the process) the alternative currencies (altcoins), for example, Monero, and then change these currencies for Bitcoin on the exchanges. You can read how to do it in the article on Monero mining.

LEAVE A REPLY

Please enter your comment!
Please enter your name here