Investing in Bitcoin today is considered a good choice for long term investments and also as a reserve asset. One of the reasons is that the value of Bitcoin has appreciated by 717,900% to slightly less than one billion per cent over the last decade. Hence, people want to get Bitcoin because they see the possibility of a higher return on investment. In this article, we review some of the notable aspects of investing in BTC that will be useful for beginners.
Blockchain technology is the central aspect of any cryptocurrency, including Bitcoin. Bitcoin is powered by decentralised blockchain technology, which is defined as a distributed digital ledger that is used to record transactions and process them over a cluster of computer systems all over the world.
Because the transactions are duplicated and distributed over numerous computer systems, this type of technology is deemed very safe, and it’s impossible to cheat the blockchain network. What’s more, there are actually a lot of advantages for any users when it comes to investing in BTC or making BTC payments to purchase goods and services. Your identity is concealed on the network. The processing time is about 10 minutes, and transaction fees are very low compared to traditional currencies.
The first important component of the blockchain network is the Bitcoin miners. They work on the network to validate the transactions and to ensure everything moves smoothly. Their role is rewarded with Bitcoin tokens or a block reward. However, due to the decentralised nature of the blockchain network, the inventor, Satoshi Nakamoto, has created a finite number of BTC – 21 million.
In addition, to regulate the current number of BTC, he designed Bitcoin halving to occur after 210,000 BTC are mined, and the event cuts in half the block reward of the miners. Moreover, the miners are the users who get to vote on proposals by other users in the networks. There is the purely democratic process of voting based on the majority of the votes in the network.
In terms of getting BTC, there are numerous options available including, Bitcoin mining, online trading, and investing through Bitcoin trusts and funds. On an online exchange site, you should know that it’s fairly easy to register and deposit your funds. Furthermore, there is an abundance of sites available that implement different technologies in order to provide the best performance for its users.
For example, BitQT has a higher win rate, thanks to its impeccable technology, and you can gain up to 60% return on investment on a daily basis.
Crypto Trust Funds
Crypto transforms on another option when it comes to investing in Bitcoin, but it is a great choice for anyone that doesn’t want to spend time on exchange sites or learning about Bitcoin and blockchain technology. There are actually today a lot of public Bitcoin trust funds where you can buy shares. Some examples include Grayscale Bitcoin Trust (GBTC), Pantera Capital, ARK Next Generation Internet ETF, and many others.
Thanks to the continued institutional interest, demand for Bitcoin is increasing at a faster rate than the supply. As we mentioned earlier, that the supply is restricted, and it’s diminishing because Bitcoin is designed as a deflationary cryptocurrency. Therefore, Bitcoin is experiencing a bull market phase, and the price is skyrocketing; however, before you make any investment, make sure to have a good financial plan, clear financial goals and choose a reliable platform.