How to get started with bitcoin and cryptocurrency in 5 easy steps – Business Insider Africa
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5 easy steps to get started with bitcoin and cryptocurrency
Cryptocurrency is a digital currency where encryption techniques are used to regulate the generation of units of currency and verify transactions. Bitcoin, created by developer Satoshi Nakamoto, was the first of these cryptocurrencies. It’s now popular among those who believe that hard cash is on its way out. Transactions are irreversible and anonymous (though each transaction has a private code). It is quite easy to get a hold of them too, you can purchase bitcoins or other forms of cryptocurrency from online exchanges or directly from individuals at online trading boards.
Bitcoin is one of many cryptocurrencies, yet it is definitely the most well established, as well as the most popular. There are many other currencies in the system, some which have been a good investment, others which have been ridiculed. In addition to its use as a payment system, investors love using it because they can profit from buying and selling bitcoins on exchanges that are linked to real-world currency fluctuations. As such, bitcoin has attracted more investment dollars than nearly every other cryptocurrency combined—in some cases millions or billions per month. It is also easier to trade bitcoins than learn about Forex, which is why so many investors choose it as a starting point in their career.
If you’re interested in buying bitcoin for yourself, there are two ways you can do so. First, visit a digital currency exchange that sells bitcoins for cash—most exchanges accept bank transfers or credit card payments—and then convert your local currency into bitcoins. Second, if you have an ATM or debit card attached to your bank account and want to buy a small amount of bitcoin without going through an exchange, some banks now offer direct service. For example, Bank of America customers can use their online banking platform to link their accounts directly to Coinbase or other digital currency services. They can then fund their accounts using a transfer of funds from another bank account or by using a wire transfer.
Quite like real money, you can spend Bitcoin on just about anything that’s sold online. However, the platforms must accept Bitcoin as a currency, which unfortunately, even today, not many do. So it’s not the best option for day-to-day shopping. However, those who own Bitcoin can easily change it into their normal currency. There are also ATMs that allow you to withdraw fiat currency which is then converted into Bitcoin. The only caveat is that your purchase might cost a little more due to transaction fees because of all of these extra steps involved. In other words, it’s pretty similar to using PayPal if you’re paying with a credit card – there’s a nominal fee for each transaction. Be sure to ask about any potential fees before making any purchases or exchanging Bitcoin for fiat currency.
5) Tips for keeping your digital currency safe
The first rule of keeping your digital currency safe is never, ever give anyone your private key or password. You can create as many public addresses as you want, but each address only has one corresponding private key that works. If someone else gets that key or password, they could spend all of your money at once or just take it out slowly over time. So when you create a new account, make sure to follow that simple rule—no exceptions. Also, always remember that if you lose your private key or password, there’s no way to recover it. This means if you have any funds on an exchange (like Coinbase), then those are gone forever too. Always make sure to move any funds off an exchange into a wallet where you control your own keys before spending them. And remember that it’s up to you to keep track of your own assets and manage them appropriately; nobody else will do it for you.
Overall, cryptocurrencies are easy to understand with a little extra research and can be a great asset for any and all investors. As long as you have some money to spare and the ability to maintain security, you will benefit greatly of getting Bitcoins or any other cryptocurrencies.
