Guide to Bitcoin and how to buy it
What is Bitcoin or Cryptocurrency?
First, let’s understand what cryptocurrency is and why it is said to be a new form of digital asset
Cryptocurrency is a digital currency in which transactions are verified and records are maintained by a decentralized system using cryptography, rather than by a centralized authority
Who created Bitcoin?
There is no strong proof of who created Bitcoin but Satoshi Nakamoto is the name used by a person or group of people who developed Bitcoin in 2009.
But what is a centralized or decentralized network and what difference does it make?
Decentralization is or decentralized network that allows these cryptocurrencies to exist outside the control of the government or any third party like banks or credit card companies. There is no central storage since the bitcoin ledger is distributed. Due to the absence of single administration, the ledger is maintained by equally privileged miners.
Who are these miners?
Mining is the validation of transactions you make using blockchain. Anybody can become a miner. These miners validate all the transactions being made on the network. These miners are also responsible for the creation of new blocks for which they get rewarded as their transaction fees decreases.
If there is not a centralized authority to control transactions how can we say it is safe for transactions?
There is no centralized authority but cryptocurrency uses Blockchain technology which is a decentralized, distributed ledger that consists of records of transactions in the form of blocks. This system of blocks cannot be changed or altered without altering the following blocks back to the genesis block (origin or first block). Since the Blockchain database is managed anonymously using a peer-to-peer network and a distributed timestamping server it is nearly impossible to modify any data giving you the highest security possible. Now that we have seen what bitcoin is and how it works let’s get to how to invest in bitcoin.
How to start investing in cryptocurrency?
What to consider before buying cryptocurrency?
What is required before choosing a broker?
- AML (Anti Money Laundering Law) Since Digital wallets and cryptocurrency made out transactions cheaper and faster it also invites criminal activities. This is why regulatory bodies are getting firm on Anti Money Laundering Laws. These laws require foolproof KYC processes to identify and verify users.
- KYC (Know Your Customer) why do I have to give my information if the network is so secure? Since you are using a broker your information is needed for the safety of the broking company. Also, the more information you provide the less your limit to buy and sell bitcoin will be and vice versa. What information do I have to give for your account creation? a) Your Full Name b) Your Date of Birth c) Proof of your Address d) Your ID
Best Broker to use.
Things to consider while choosing broker a) Safety and Security b) Easy to understand c) Paying less fee and investing more in cryptocurrency
Best Cryptocurrency Brokers and Trading Platforms:
Etoro is one of the top brokerage companies which is regulated. Meaning these regulations protect investors. Etoro is also beginner-friendly meaning you don’t have to look at complex charts and complex numerical terms to get started with.
Why choose Etoro?
a) It is a multi-Asset platform. Meaning you can use this for other services like Equities, Debt, Commodities, Security tokens, and Digital Assets.
b) 0% Commission: — There is no need for you to pay commission. Meaning no hidden charges in the name of fees.
c) Free Insurance eToro provides an insurance policy from Lloyd’s of London for its client’s benefit. For an unlikely event like misconduct eToro’s insurance will cover the damage.
d) Ready-Made Investment Portfolio eToro offers thematic Copy Portfolios, focusing on innovative markets, such as 5G, Cloud, and much more.
Gemini is a licensed New York trust company that undergoes regular bank exams and is subject to the cybersecurity audits conducted by the New York Department of Financial Services. Gemini is a simple, elegant, and secure platform to build your crypto portfolio, Buying, Selling, and Storing your cryptocurrency.
Why choose Gemini?
a) SOC Certification: — Gemini is SOC 1 Type 1 and SOC 2 Type 2 compliant. We are the world’s first cryptocurrency exchange and custodian to complete these exams.
b) Hardware Security Keys — secure your account with a hardware security key via WebAuthn.
c) Insurance Coverage — all crypto held online in our exchange wallet is insured and we use best-in-industry cold storage coverage with leading insurance providers.
With more than 43 Million verified users, $455 Billion of total volume traded, more than $90Billion of assets available on the platform, and distributed across more than 100 countries coinbase is helping people buy, sell, store, use and earn cryptocurrency.
Why choose Coin Base:
- Secure Storage: Coin Base store the vast majority of digital assets in secure offline storage.
- Protected by insurance: Cryptocurrency stored on CoinBase’s server is covered by their insurance policy
- Industry best practice: CoinBase support a variety of the most popular digital currencies.
You can choose any of the above platforms and start buying and selling bitcoin with their guide.
