What is Bitcoin?How to invest in Bitcoin?

Bitcoin: In just over ten years, Bitcoin has never been known to 10,000 people.Its cross-era trading model represents the arrival of another new era in the Internet era.

Bitcoin’s own value has been from the first few beauty to thousands of dollars today.More and more people have begun to contact and use Bitcoin.Why do Bitcoin rise so rapidly?Bitcoin and Blockchain What is the relationship?

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Bitcoin price + Bitcoin trend

The price of Bitcoin on January 1, 2013 was $ 13.3, reaching the highest $ 63,000 on April 15, 2021, and the price in June 2021 was between 30,000 and 40,000.

time	Bitcoin price
January 1, 2013	$ 13.3
April 15, 2021	$ 63223.77
June 6, 2021	$ 35801.13

Below is the Bitcoin trend of Bitcoin since 2013 and historical data of Bitcoin price:

[amcharts id = “chart-bitcoin”]]

Price data from Coindesk

What is Bitcoin?

Bitcoin is the first type of based on Blockchain technology In order to realize the encrypted virtual currency of P2P transactions in the form of decentralization and trust.

Compared with traditional online transactions requires third-party supervision and transaction fees such as banks and trading platforms, Bitcoin uses individuals to personal direct transmission forms, and ensure the safety of transactions with its own mature and safe self-supervision technology, so as to avoid third partiesThe additional costs of intervention supervision, as well as the loss of capital when the third party was maliciously attacked.

At the same time, the holding of non-subjects holds a unified value standard globally.

Bitcoin has the following important features:

A.Blockchain technology

Blockchain The technology enables the transaction to store the transaction for a period of time in the record unit in a separate “block”, and continuously creates a continuous “block” over time to form a “blockchain”.

In the process, all transaction users can participate in the records and supervision of the transaction.Each “block” will select the final record and verification of the accounts through the answer of mathematical questions, and at the same time give a certain reward.One system to motivate users to jointly supervise the security of all transactions.

At the same time, each confirmed transaction has time to record and cannot be copied and revoked to avoid risks such as counterfeit transactions or counterfeit currency.

Popular understanding can be considered that all transaction records are used as a record node for a period of fixed period of time.For example, a record of every ten minutes is recorded in one “block”.”After joining the” Blockchain “, it will not be deleted and tampered with at will.

When a transaction is recorded in a “block”, it will be confirmed again by the 6 consecutive blocks.After being recognized, the transaction will be finally confirmed and recorded.And supervision process.

B.Decentralization

Bitcoin is not a currency issued by a certain political subject.For example, the US dollar is issued by the United States, and the pound is issued by Britain.Bitcoin has no political subject announced its holding of it.

In addition, the process of using Bitcoin for transactions is not supported by any third-party center or hardware equipment.

C.Go to a third party to verify

Traditional trading models often require third parties as proveners to exist, so that both parties to the transaction can gain enough trust.

For Bitcoin based on blockchain technology, each transaction will be confirmed under the supervision of the entire network.All members are transactions, records and supervisors, and no longer need to use third-party certification;There will be time stamps in transactions, which avoids the existence of false information such as counterfeit currency, which greatly reduces transaction costs and obtains higher security.

D.P2P transaction

P2P is the abbreviation of Peer to Peer, which means individuals to individuals.

In traditional transactions, the two parties in the transaction are concerned about the security of the transaction.The additional cost of the three parties.

At present, if you transfer the third-party platform such as PayPal, you need to pay about 0.3%of the fee.

E.Encryption virtual currency

Bitcoin is a type of encrypted virtual currency, and cryptocurrencies are a type of virtual currency, just like adding various anti-counterfeiting technologies to anti-counterfeiting money for anti-counterfeiting.

Anti-counterfeiting design for virtual currencies to ensure the true value of its value and non-replication.This process uses complex cryptography principles.The complex calculation process that only computers can complete at present to ensure that all encrypted virtual virtual virtuals can be completed.The effective value and uniqueness of currency in the transaction.

In summary, Bitcoin can be considered a virtual currency that can be used by all users to supervise and trades the security and account for accounting.It does not require currency exchanges to be universal in almost the world.

How to play bitcoin?

Bitcoin, as a virtual currency, is the same as physical currency, and is purchased for assets or real-objects, services, etc.At the same time, as Bitcoin value increases, it has also become an investment product.

A.Buy and sell Bitcoin

If you want to start using Bitcoin, you need to buy it first, just like you want to use the euro, you need to use the US dollar in your hand to redeem the euro.

After buying the euro, you will get the physical euro banknote or the euro deposit in the bank account.

But where is it stored after buying Bitcoin?Bitcoin provides two categories of storage methods:

Non-hosting wallet
Custody wallet

Bitcoin wallet

Just like you buy a physical wallet for yourself, establish a personal account on Bitcoin.com, the official website of Bitcoin, link your own bank card, and purchase Bitcoin according to the price ratio at that time.

After purchasing, Bitcoin is stored in its own “Bitcoin Wallet” account.All rights of use are in their own hands, including when to buy or sell, etc.“Non-hosted wallet” Essence

It should be noted that although Bitcoin is not monitored by any third-party institution, when purchasing, the existing currency you use is regulated, which means that you may need to provide certain asset proofs to prevent money laundering and other behaviorsoccur.

Use other trading platforms to buy

These platforms include dense cryptocurrency trading platforms (such as Micro-cow,, Robinhood Wait) and P2P trading platform (such as PayPal) and so on.

On these platforms, you can establish a personal account, link personal bank card information, and buy or sell Bitcoin in the platform.People call it “Host Wallet” Essence

When using such platforms for Bitcoin, it is necessary to be supervised by the monetary issuer and the supervision of the trading platform.Usually when buying or selling, the third-party regulatory platform will also charge a certain fee.At the same timeSlow.

Another thing that is worth noting is that large exchanges are often the target of hackers, so after buying Bitcoin through the exchange, it is still recommended to transfer it to its own Bitcoin.com digital wallet.

Related Reading The Weimiu Securities Account Opening Reward and Step

B.Bitcoin transfer

During the transfer, the operation of the “non-hosting wallet” and “hosted wallet” are basically the same, providing or requested or requested the wallet address to transfer the transfer.

The difference is that the timeliness of “hosting wallet” is often limited by the timeliness of the third-party platform, and the “non-hosting wallet” does not have this problem.

In addition, is the openness of Bitcoin, is it safe to provide others with their own wallet address?For security, Bitcoin provides a Bitcoin wallet address that can modify its own Bitcoin at any time, and requires a private key during transactions, so as to ensure your asset security.

C.Use Bitcoin to buy physical or service

Find an online store that accepts Bitcoin, or offline stores that can provide Bitcoin receipts, you can use Bitcoin to purchase physical or services.

Many businesses on the ETSY and Shopify websites accept Bitcoin payment to buy goods.
Many merchants on the GYFT website accept Bitcoin to buy gift cards.Gift cards can be used for many physical retailers, such as Starbucks and Amazon.
Some network service platforms accept Bitcoin payment to order VPN services, domain name registration, etc., or subscribe to online newspapers such as the Chicago Sun.

D.Investment Bitcoin

With the continuous appreciation of Bitcoin, holding Bitcoin has become the choice of some investors.It is a basic investment method based on the price of Bitcoin against other currencies.

The other is to incorporate Bitcoin into the traditional investment field, such as stocks, funds, futures, etc., do not actively hold Bitcoin, but trades through market analysis and judgment.

Because the stocks that are directly involved in coins have never been certified by the US Securities and Exchange Commission, investors put their investment targets in public trading stocks related to cryptocurrencies.

Some letter-in funds holding Bitcoin are also the targets that Bitcoin investors often pay attention to.High-capital players will use the value fluctuations in the value of Bitcoin to make investment profit through trading methods such as hedge funds, futures contracts or shortcoin.

Common encrypted virtual currency

Bitcoin is the opening work of encrypted virtual currencies, and more and more virtual currency varieties have subsequently appeared.

Currently more popular encryption virtual currencies are:

1.Ethereum

Ethereum was launched in 2015.Its operation is similar to Bitcoin, allowing people to send and receive tokens that represent a certain value through an open network, which is called Ethereum.Ethereum is a decentralized software platform that can build smart contracts and decentralized applications without any fraud, control or third-party interference.

The goal of Ethereum is to create a decentralized financial product to facilitate free access to anyone in the world and have nothing to do with nationality, race or belief.This concept allows those who do not have national infrastructure and national identity certificates can also obtain bank accounts, loans, insurance or various other financial products.Ethereum is currently the second largest digital currency that is second only to Bitcoin.

2.Le ones Litecoin

Litecoin is a point-to -point digital cryptocurrency founded by former Google employee Charlie Lee in 2011, which was originally produced to make smaller transactions than Bitcoin.

Technically, Litecoin is almost the same as Bitcoin, but has some significant improvements.For example, the speed of Litecoin processing blocks is 4 times as fast as Bitcoin.

The technical requirements for Litecoin mining are higher and the total amount is larger.At present, it is set to 84 million, which is 4 times the number of Bitcoin, which has made it more guarantee in terms of network security.

3.Stellar Lumen

Stellar is an open blockchain network, which aims to provide enterprises with low-cost and efficient capital solutions through connecting financial institutions for large-scale transactions.

But at the same time as an open blockchain, any individual can also use it, which allows any currency to cross-border transactions.Crypto virtual currency Stellar Lume is a local currency of the network.Users hold Stellar Lumens to trade on the Internet.

4.Ripple Ripple

Ripple is a network that can trade any currencies globally, including legal currencies and digital cryptocurrencies, and Ripple is a digital cryptocurrency of the network.

Ripple can provide in-network security, fast and low-cost transactions, without risk of fraud or refund.Ripple’s transaction speed is faster than Bitcoin.It can be completed in just a few seconds, and the transaction cost is much lower, which makes it a choice of more and more bank settlement networks.

5.Bitcoin Cash Bitcoin Cash

Bitcoin cash was distributed in the market as a Bitcoin in 2017.At that time, the Bitcoin developer community could not reach an agreement on the change required by the Bitcoin code, which contributed to the birth of Bitcoin cash.

The purpose of its creation is to optimize some existing problems of Bitcoin, such as increasing scalability and block size.At present, it supports the maximum block of 8M size, while reducing transaction costs and increasing transaction speed.

The mining algorithm of Bitcoin cash is unchanged, which makes “miners” easily switch between two currencies.

Then Bitcoin split BSV, which is the abbreviation of Bitcoin Satoshi Vision, and Satoshi Vision means Nakamoto’s vision.

The reason why the original Bitcoin was divided into three categories is mainly to hold different claims in the formulation goals of code and algorithms.BTC focuses on allowing all customers to have a complete node to realize the ideal of decentralization; BCH pays more attention to the optimization of the customer’s payment experience as much as possible; while BSV hopes to return to the first vision of Bitcoin, and advocates the claimPayment stability.

What is Bitcoin mining?

The essence of Bitcoin mining is actually “miners” to win the process of “bookkeeping” by solving mathematical problems based on encrypted hash algorithms, while earning Bitcoin rewards.

Each block in the blockchain will propose a complex mathematical problem to all users when the bookkeeping.The “user” here is “miner”.They use their own computer equipment to solve the problem, add the calculated answers to the block, and first answer the “miner” who answered the math problemIt will get a certain Bitcoin reward and the transaction fee of all transactions in the block.

The fixed Bitcoin reward was the initial 50 Bitcoin, and the subsequent four years were reduced until it could no longer be subdivided.

Miners need high-energy computer capabilities, while high-transport computing computers and stable power supply.

For Bitcoin, this system can mobilize all members to participate in the records and supervision of accounts.At the same time, high-energy talents can also maintain the stable operation of the entire trading environment.

Bitcoin has been established for more than ten years since its establishment.In a decentralized and trustworthy environment, the security and stability of transactions is based on such a reward system.

How to get Bitcoin?

There are many ways to buy Bitcoin.For example, the previously mentioned purchased directly on the official website of Bitcoin, and established its own Bitcoin wallet, which is safe and fast.Or buy on an encrypted virtual currency exchange or P2P platform.Or earn through mining.There are also some ways to buy bitcoin.

i.Buy on some websites

For example, websites such as Indacoin or Spectrocoin have limited purchases.It is suitable for novices who want to contact Bitcoin for the first time and do not want to register tedious information.

II.Buy through the trading platform

Trading platforms such as Webull and Robinhood provide Bitcoin purchase.You can buy Bitcoin as long as you register for personal information and open your personal account on the platform and make different types of investment on the same platform, which is suitable for investors.

III.Bitcoin automatic withdrawal machine

As the application of Bitcoin is becoming more and more widely used, Bitcoin automatic withdrawal machines appear in more and more cities.Users can use cash to buy Bitcoin directly in cash.The machine will transfer Bitcoin to the user’s digital wallet, Or offer a certificate with a two-dimensional code, the user scan the code to extract the bitcoin to a digital wallet, which is relatively flexible.

IV.Earn Bitcoin by selling goods or services

Open your own digital wallet, print the payment code or copy the wallet key, and sell items or services through offline physical stores or online virtual stores.The collection method can be set to Bitcoin.

How to learn cryptocurrency technology?

Here are a few good books to study encrypted virtual currencies:

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common problem

Question 1: What is Bitcoin English?

Bitcoin English is Bitcoin, a virtual cryptocurrency.
See More

Question 1: What is Bitcoin?

Bitcoin is the first blockchain-based technology to achieve an encrypted virtual currency for P2P transactions in the form of decentralization and trust.Compared with traditional online transactions requires third-party supervision and transaction fees such as banks and trading platforms, Bitcoin uses individuals to personal direct transmission forms to ensure the safety of transactions with its own mature and safe self-supervision technology, so as to avoid third partiesThe additional costs of intervention supervision, as well as the loss of capital when the third party was maliciously attacked.
See More

Question 2: What are the encrypted virtual currencies?

Here are some common encrypted virtual currencies except Bitcoin:
1) Ethereum
2) Ethereum
3) Stellar Lumen
4) Ripple Ripple
5) Bitcoin Cash Bitcoin Cash
See More

Question 4: How to get Bitcoin?

You can buy Bitcoin through the following ways:
1) Buy through websites such as Indacoin and Spectrocoin
2) Buy through securities trading platforms such as Webull and Robinhood
3) Use Bitcoin automatic cash machine
4) Get Bitcoin by selling goods and services
See More

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