Bitcoin is becoming increasingly popular as a great way to buy and sell items online with people in faraway countries. It’s also an investment option for those who can afford its volatile nature. Here are some important things to know about this cryptocurrency.
Facts About Bitcoin
1. It’s an International Currency
Bitcoin is an international digital currency that isn’t owned by banks, companies, or governments. Instead, it’s contributed to by people all over the world who constantly update it. You can get paid by someone across the globe and then convert the payment to your local currency through companies such as https://rubix.io/bch-usd. The transactions are posted onto public ledgers to prevent fraud. Nothing backs bitcoin, save for the system itself. Like gold, it has value because people want it.
2. It’s Bought Online
Instead of going to a bank or ATM for cash withdrawals, you purchase bitcoin online. You’ll need to download an app known as a bitcoin wallet, also known as an online wallet, to store your cryptocurrency. If the bitcoins are too pricey for you, you can also purchase fractional bitcoin. You will sometimes be charged a fee for purchasing it, and because the currency must be verified by miners, it could mean a wait of 10-20 minutes before the currency shows up in your wallet.
3. It Can Connect to a Debit Card
While some big companies now accept cryptocurrency, not all vendors do, so it might be in your interest to connect your bitcoin to a debit card. There are services that allow you to do this, and sometimes you’ll be charged a small fee. It’s the easiest way to use your cryptocurrency.
4. It’s Mined
The process of creating bitcoin is called mining. Such work doesn’t involve digging big holes with a pickax, but it’s still hard work. Cryptocurrency is made up of long numbers that are random and difficult to forge. People who choose to mine cryptocurrency must use computers to solve mathematical puzzles in order to verify the transactions. It requires investing in powerful computers going through a lot of electrical wattages.
5. It’s a Potential Investment
While some people look at bitcoin as a means to pay for things, others see cryptocurrency as an investment. If you go this route, be aware that the prices change in a big way, going high one moment and then plummeting the next. It’s not for the faint of heart and should be seen as a long-term investment.
If you earn a higher than middle-class wage and have a sizable net worth, you can also invest in a bitcoin mutual fund.
6. It Should Be a Side Investment
Investing in cryptocurrency is a bit like playing roulette. You could win big, but you could also lose everything, so only invest money you can afford to lose. Don’t let it be a major part of your investment portfolio. Put most of your money in more secure ventures, and treat bitcoin as a side investment.
You can either use bitcoin as a way to pay for items online or as an investment vehicle. No matter what you think of it, this cryptocurrency is here to stay.
