What is bitcoin, how much does it cost and what is it for?

What is bitcoin – this question is asking more and more people. Although there are warnings about cryptocurrencies in the media, there are more interested in this topic. What is bitcoin and what is behind it?

Bitcoin Logo

Bitcoin is – in the simplest terms – a virtual currency or cryptocurrency that was created in 2009. It is not known exactly who its creator was, although this person (or group of people) is called Satoshi Nakamoto. So, from the name of the creator, the bitcoin particles are called satoshi. 1 satoshi is 0.000000001 BTC.
The huge interest in Bitcoin is now mainly due to the speculative value of this cryptocurrency: the possibility of buying in the fall and selling “on the hill”. It is a chance for earnings, but also a risk of loss.

Bitcoin – what is it?

What makes bitcoin so popular? First of all due to the technology on which it is based: blockchain – i.e. “block chain”. Blockchain is used to store and send information about transactions concluded on the internet and there is no possibility that any information in it disappears. It has been said years ago that this technology will revolutionize the conclusion, settlement and recording of transactions made in various industries, such as banking or trade. In fact, it is blochchain that is what governments of many countries and big banks are interested in today.

How can an ordinary man use bitcoin? There are many possibilities today. First and foremost, it is about making payments (wherever BTC is accepted as a means of payment). We can order a pizza without a problem (and, interestingly, pizza was a good, paid for in the first, historical bitcoin payment), and more and more often we will even buy a car or a real estate. Someone who buys goods at the other end of the world can quickly make a payment and wait for the goods to be shipped, when traditionally it would be waiting for the transfer to be paid.

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How to buy Bitcoin?

There are many exchanges – on which bitcoin can be bought for USD. To make a purchase, you must register on the cryptoexchange (often an account verification is required), transfer funds to the crypto exchange account in the manner indicated therein, and then exchange USD for BTC at the indicated exchange rate.

When deciding to trade bitcoin, one should remember about several important rules – both the purchase and storage of the purchased BTC. First of all, it is worth to first observe the crypto exchange, act on the basis of reason, not give in to emotions and do not make hasty decisions.

On the other hand, if you plan to buy and “hodl“, as the traders say (hold), for a long time, bitcoins purchased (as well as other cryptocurrencies, called altcoins) are best stored in appropriate wallets in the network or on hardware portfolios.