Bitcoin - how to start? A Beginners Guide.

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bitcoin guide

How to start dealing with Bitcoin? - More and more often novices ask this question. In this guide, we have gathered basic information about Bitcoin and about ways in which it can make you rich.

Bitcoin - how to start investing?

Bitcoin - what is it?

Bitcoin - which wallet should you choose?

Bitcoin - types of cryptocurrency exchanges

Bitcoin - how to check its quotations?

Bitcoin - how to start investing?

A great number of beginners in the world of cryptocurrency ask themselves "how to start investing in Bitcoin?". You can invest in Bitcoin in many ways: hold it, trade it or dig it (using devices called cryptocurrency excavators). Do not forget that the cryptocurrency market is volatile. Every investment is risky, so you can both profit and lose very quickly. The cryptocurrency market itself is compared to the Wild West, because of the fact that rates of virtual coins change very quickly. It is important to remember, then, that as far as investments with such a high risk are concerned, you should enter the market with capital that you can lose. And don't invest all your life savings. If you want to earn on Bitcoin, give small amounts a shot. It's good to know that BTC is divided into eight decimal digits, called Satoshi. It means that you don't have to buy the whole Bitcoin, you can begin by investing in just a part of it. 1 Bitcoin (BTC) = 100,000,000 Satoshi 1 Satoshi = 0.00000001 Bitcoin (BTC)

When it comes to BTC mining, a cryptocurrency miner (i.e. a BTC mining person) must be in the possession of special equipment called a cryptocurrency excavator. Moreover, they need a huge amount of electricity so as to be able to dig a block of Bitcoin, which is associated with high electricity charges. Mining is not profitable in every country. Bitcoin mining equipment's task is to solve complicated mathematical puzzles (their difficulty increases during this process). If you want to learn more about this topic, go to this tab - Bitcoin excavator. At this stage, a technical description of block extraction would probably be incomprehensible and confusing to you. It would be the best if you retured to this issue only after you have mastered the basic knowledge of what exactly this Bitcoin really is.

Bitcoin - what is it?

Bitcoin is becoming more and more popular nowadays. A great number of new people entering the cryptocurrency market are wondering how to start making money on BTC. If you are one of them, this article is just for you. Here are some valuable tips that will definitely come in handy. Let's start our journey through the world of virtual coins, then! The first step you should take is to acquire basic knowledge about Bitcoin. We are abou to briefly present the idea that guides BTC. Bitcoin was created in 2009. The figure of its creator is shrouded in mystery. They hide under the nickname Satoshi Nakamoto and they never revealed their true identity to the world. It comes as no surprise, then, that many people tried to impersonate him. They never had enough evidence to confirm that they were the ones that created this phenomenal money, though. Nakamoto described Bitcoin as an electronic cash register system, operating fully peer-to-peer, that is in the architecture of distributed applications.

 BTC differs from traditional currencies because of the fact that no one actually controls it. All transactions taking place in the Bitcoin network are verified by the users themselves. If you would like to find out more, look into your preferred sources such as books or video materials on blockchain technology and cryptocurrencies. It is stronly recommended as it is good to know in what one is investing. Absorb this information for some time. Some of the information may seem complicated to you at this point, but after a while, after slowly entering the world of virtual coins, everything will become more understandable.


Bitcoin - which wallet should you choose?

Prior to your investment in Bitcoin, you need to know that a special wallet to manage BTC is required. Actually, your coins will not be physically in the wallet. Bitcoins are placed in a distributed network, which means that anyone can track the transactions. The Bitcoin wallet consists of two keys: private and public. Before you start investing in BTC, it is crucial that you understand how such a wallet function. Therefore, the priority is to become familiar with the definitions presented above. Why is this so important? In case you lose your private key - you will not have access to BTC, because of the fact that a private key controls them. No one will be able to help you recover your funds. 

The private key can be compared to a pin code to the phone card, because it allows you to access your funds. Remember not to share your private key with third parties. Every person knowing your private key have an access to your wallet and can withdraw money from it at any time. It should be noted that apart from guarding the wallet, the private key plays another essential role. It is used to sign (approve) every transaction carried out. As for the public key - its name implies that you can share it with others. It is the public key address where BTC are sent (don't forget that they are not physically in your wallet).

Another crucial thing to know about is that there are wallets dedicated to storing selected cryptocurrencies. It basically means that there will be no possibility to send different coins to one wallet, because each cryptocurrency must be read in the appropriate standard. There are many types of cryptocurrency wallets created to store digital coin data. When choosing your wallet, therefore, you need to pay attention to what virtual coins you will be able to store on it. BEWARE: Keeping cryptocurrencies on exchanges is associated with an increased risk because many exchanges fall victim to hacker attacks or simply collapse. If you have an intention to trade, a solution like that is inevitable, of course. Remember, however, that it is the exchange that has your private key and has access to your coins. For a long-term investment, the cryptocurrency wallet is a much safer solution.

Bitcoin (BTC) Wallets

Cryptocurrency wallets can be divided into two basic categories: hot wallets and cold wallets. In order to choose the right wallet for your coins, you need to familiarize yourself with their specifics. Cold wallets are characterized by the fact that they operate offline, so they do not have to be connected to the internet. Hot wallets are quite the opposite, as they will not function without access to the network. These two types of cryptocurrency wallets are divided into further subcategories. We divide cold wallets into: hardware wallets, paper wallets and steel wallets. Hot wallets include: desktop wallets, browser wallets and mobile wallets.

Trivia! Both public and private keys can be in the form of a QR code. This is quite a convenience, because, in case you wanted to send your BTC to a public address, you would not have to rewrite it. It would be enough to scan the address from the code. As far as the private key is concerned you can import it in this form to a given website or application (if it is possible, of course) to gain access to your cryptocurrencies. This method is used mainly for paper wallets, however. Remember! In fact, you will not be in a possession of bitcoins, but in the possession of the keys you need to manage the coins! Do not share your private key! Wallets in an offline mode are safer than those connected to the network

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Bitcoin - types of cryptocurrency exchanges

Have you already got a secure Bitcoin wallet? Great! Now, there is another important choice that you have to make. You are probably wondering where to buy your first virtual coin. You have a lot of options, because Bitcoin is at the biggest of all cryptocurrencies and it is available on every cryptocurrency exchange. You can buy BTC in a bitomat or cryptocurrency exchange office, or simply buy it from another person, obviously. We would like to show you how cryptocurrency exchanges operate and how they differ, though, because this knowledge may be useful to you in the future (you may want to trade BTC). Buying Bitcoins on the exchange is also the most commonly known way to get them.

 You must know, however, that each of them has its own specifics. Some are adapted to the initial players (they have a simple interface), while others require advanced knowledge and experience from their users. Cryptocurrency exchanges can be divided into two categories: fiat-crypto exchanges and crypto-crypto exchanges. We will focus more closely on the first type, i.e. cryptocurrency exchanges, where you can buy coins for fiat money (traditional, physical currency). In order to buy Bitcoin on the crypto-crypto exchange you would need to already have cryptocurrencies to pay with them.

It is worth knowing that every cryptocurrency exchange is different: they have different interfaces, a limited number of available cryptocurrencies, or exchange markets. As a consequence, some players use several platforms. To start using the cryptocurrency exchange, you need to register on it. Some of the exchanges will require a verification of you identity. There are times whe it goes smoothly, but often it is quite a tedious process. After finishing the registration process, you will be able to log in to the cryptocurrency exchange and start trading. Important: Cryptocurrency exchanges can also be divided into centralized (controlled by companies and institutions) and decentralized (based on blockchain) - these have a smaller volume and liquidity, because there is no possibility to use a bot on them.

Bitcoin - how to check its quotations?

You can read the price of Bitcoin directly from the chart. Regardless of which page you use, the range should be presented horizontally (you can set it to daily, monthly, weekly or annual). The vertical line represents the BTC price. If you use a professional chart, there should be bars at the bottom, reflecting the transaction volume.

CoinMarketCap can be also used in order to read information about Bitcoin rates - it has a cryptocurrency ranking by market capitalization. Remember that the price alone does not reflect the value of a given coin.

As you have probably noticed, Bitcoin (BTC) comes first here. On the left there is the name of the coin. Next is market capitalization, i.e. the value that all coins available on the market have. Then, we see the price, which at this time is about $8500 for one Bitcoin (as of January 2020. . Right after the price is the volume, and then we see the amount of coins in circulation. It is worth adding that there will be no more than 21 million of all Bitcoins. The penultimate column shows the percentage change of this cryptocurrency during the last 24 hours, while the last one is a weekly price chart.

We finally managed to get through a number of basic things that you need to know before you start your Bitcoin adventure. It is only an outline of what this virtual coin really is, though, which is why it is worth to gradually supplement your knowledge with additional, more complex elements. We hope thst you found our guide useful and that you were able to get some valuable tips out of it.

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