Bitcoin: Ways to Buy Bitcoin, its Benefits and Major Drawbacks!

Buy Bitcoin
Author : Marco Sgalbazzini
April 16, 2020

Bitcoin: Ways to Buy Bitcoin, its Benefits and Major Drawbacks!

The word cryptocurrency is a blend of two different words that are currency and cryptocurrency. The first cryptocurrency was Bitcoin that was created by a mysterious entity named Satoshi Nakamoto. He designed Bitcoin as a medium of exchange following the peer-to-peer network. The real identity of Bitcoin’s creator is still unknown as he suddenly disappeared in 2010. Satoshi introduced two main methods of acquiring Bitcoin that include mining or buying. Some people consider mining difficult while some consider buying process difficult, but buying Bitcoin is an easy process.

Buying Bitcoin requires users to find a genuine and reputable crypto exchange, open an account with an exchange, and then use fiat currencies to buy Bitcoin. Users also have to complete the KYC and AML norms to avoid any fraudulent activities. On the other hand, mining Bitcoin is also a way to acquire bitcoins, but it requires a lot of hard work. Bitcoin and other cryptocurrencies are mined by solving highly complicated mathematical problems. To understand it in simple terms, a miner has to get powerful computing power to do mathematical calculations to solve mathematical problems in order to acquire block reward. Also, you can Add Bitcoin into your digital wallet to mine and trade Bitcoin.

Bitcoin transactions are transparent and anonymous because they are recorded on a blockchain ledger that is public and makes transaction records public but anonymous. It doesn’t require users to use real identities while making transactions.

Benefits and drawbacks of Bitcoin

• Bitcoin is a global currency which means it is highly accessible. Users can buy and sell Bitcoin and other cryptocurrencies through Bitcoin exchanges.

• Bitcoin isn’t regulated, which is a major drawback. The use of Bitcoin in the market is unregulated as it is not regulated by the government, which makes it legally unsafe to be used to purchase anything.

• It is a highly liquid asset as users can easily sell their Bitcoin and can get their money by converting it into fiat currencies.

• There is only limited use of Bitcoin. Not all things can be purchased with Bitcoin, and to buy anything from it, it is required to be first converted into regular money.

• No other currency, shares, or bond has the potential to provide higher returns than Bitcoin provides. When the Bitcoin market is high, its price increases, and it is known to provide unexpected and unbelievable returns to its investors and traders.

• At the same time, Bitcoin’s market is very volatile, and there are wild fluctuations that take place in the prices of Bitcoin. If its price started to decrease, it would decrease to a great extent which will ruin all your savings or investments made in it.

• Security is the top priority of Bitcoin. Blockchain uses cryptographic algorithms to provide high security to the Bitcoin network and its transactions.

• Bitcoin transactions are irreversible, which means a transaction, once initiated, can never be canceled. It makes it difficult for people whose Bitcoin got stolen as there is no way to recover them. No authority or individual or even Satoshi can help in getting Bitcoin’s back.

Is Bitcoin mining a profitable process?

If you are a mastermind and tech-savvy as well, mining is a great alternative for you. It requires effort and dedication, and only people who are interested in the mining process and making money can mine Bitcoin and other cryptocurrencies.

If you have high computing power, the mining process can be lucrative for you. If you can join a mining pool, you can save your expenses and earn Bitcoin by mining them. The mining process is only lucrative if you live at a place where there are the right cool temperature and minimal electricity expenses.

Is it good to invest in Bitcoin?

One obvious and undeniable thing about Bitcoin is that its market is very volatile, and it does make a risky investment. The decision of investing in Bitcoin completely depends on your investment goal and your risk profile. Its value is subject to be changed even in few minutes, and various factors drive Bitcoin’s price. You must have an appropriate and great amount of knowledge about the Bitcoin market to start investing in it.

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