How do beginners invest in Bitcoins?

 It can be hard to know where to start investing, especially when it comes to cryptocurrencies like Bitcoin. But Bitcoin has been making headlines in the recent years, and it’s quickly becoming a big deal in world economy, tech and finance markets. But what makes this currency so special? Why is so much attention given to the cryptocurrency? Read on for a guide on how beginners can invest their money into Bitcoins with ease.

What is Bitcoin?

Bitcoin is a digital currency that can be used to make payments over the internet. It works like software, traded on a peer-to-peer basis and allows users to register, send and receive money. The concept of Bitcoin was created in 2009 by an unknown programmer or someone who goes by the alias Satoshi Nakamoto – Nakamoto is Japanimation for “central”, “main” or “first” in Japanese. The currency is not owned by a central bank or government, and exists only online. The supply of the currency is limited, which means the value of each Bitcoin will be harder to copy than traditional currencies.

Bitcoin vs. traditional currencies

The Bitcoin has been trading at around $300 per coin at the moment. Unlike conventional currencies such as Dollars (USD), Euros (EUR), Yen (JPY), and Rupees (INR), there are no physical bitcoins in circulation.

Also, unlike fiat currencies, Bitcoin is decentralized and does not have any major backing. That means no government, central bank or institution can stop Bitcoin from circulating. This may lead to fears that the currency is a bubble and that it might burst one day. The rate of Bitcoins being created is fixed at 21 million coins, and the numbers will never increase.

Why are cryptocurrencies so important?

The advantages of cryptocurrencies are many:

- There is not one trader that can potentially control the currency supplies to manipulate its value.

- Transactions are faster because there is no overhead that slows down the transactions.

- Cryptocurrencies are transacted in an electronic format, which means it can’t be counterfeited.

The above advantages combined make cryptocurrencies a cool investment option today and it’s expected to grow in the coming years.

What financial products can you invest in Bitcoin?

There are a few ways you can invest your money into Bitcoins:

1- Buying Bitcoins on exchanges.

- Purchasing Bitcoins with cash via P2P marketplaces.

- Purchasing Bitcoins with credit cards using sites that offer high interest rates.

- Invest in Bitcoin mining hardware for profits.

- Invest in companies that accept Bitcoins as payment for goods and services.

2) Peer to Peer Lending of Bitcoins (P2PLB): This is the selling of loaned Bitcoin to other investors who want the currency.