What Are Bitcoins and Cryptocurrencies?
Everyones talking about it and everyone has an opinion, yet few people indeed understand it and even fewer are involved.
Do I need a cryptocurrency wallet and what is the best cryptocurrency wallet ?
Bitcoin! The crazy online currency that is predominant the financial news and making people rich.
Is it a scam? Is it the money for illegal crime to run on the deep web? Or is it just a speculative bubble that will burst and make all the investors poor?
To be fair, no one can give you a definite reaction but I can tell you, it’s not indeed any of the above.
Here’s my explanation of what Bitcoins are…
I very first heard about this infamous coin around 2013/2014 from a friend who asked mij if I wished to mine thesis coins.
He told mij that it’s a virtual currency to use for online purchases and that wij could generate them ourselves through our laptops.
Since I only vaguely heard the term before I couldn’t be bothered to get involved spil I just opened a business, wasgoed learning how to trade and got interested te affiliate marketing .
Adding another thing to my already busy life, working at J.P. Morgan at the time, would be overkill and mental spil well spil physical suicide.
I told my friend to go ahead without mij because I just couldn’t get involved with that at the time.
Before I go on, spil many other people do, and tell you what a fortune I could have made by now if I did mine bitcoins back then, let mij just explain the mining a bit further…
This is what a typical mining equipment looks like
Bitcoins are basically a virtual/digital currency, also known spil Cryptocurrency, which is created by a group of people that were essentially sick and tired of how fiat money (or the money spil wij know it) is being managed.
The founder is said to be an unknown person that goes by the name of Satoshi Nakamoto.
No one truly knows if this is his real name, a pseudo name, a man, woman, a group of people or an alien!
For all wij know the name behind it is the founder and creator of the Bitcoin.
Te order for Bitcoins to exist, they need to be mined. This mining process is basically a pc going through mathematical equations to create and process a coin.
So each time you send one Bitcoin from your wallet to another, or making a transaction to buy something with it, somewhere around the world some rekentuig of a miner will process that.
Ter prize he gets paid a petite commission for his efforts. Fairly ordinary right?
Another prize thesis miners get is that every time they mine a block of bitcoins, they basically get a block of lets say 25 Bitcoins for having processed this powerful mathematical equation.
I don’t know how big a block is and what the actual prize is but I know there’s a bitcoin clock that gives you that information.
They can determine to sell thesis for money or hold them. The more coins are mined, the tighter it will get to mine the next block.
What’s more interesting, is that this is not an infinite process. There will and only can be 21 million Bitcoins on this world. This is a immobilized rule set by Mr. Nakamoto and cannot be switched.
Ter order to keep it plain, picture the entire Bitcoin process like gold or diamonds.
Te order to get gold or diamonds, you have to go into a gold mine, use physical labor to hack into this mine and look for gold.
Some days you don’t find anything, but you’ll be paid for your hours of digging and looking for it.
The day you do find something, you can sell this gold and get a nice amount of money for it.
Now translate it to Bitcoin and it’s essentially the same thing. You mine thesis coins and if you’re fortunate enough to mine a block, you can sell thesis coins for a massive prize. If not just proceed mining and get paid for transactions.
If you’re thinking of getting involved with mining, don’t bother… That’s my individual opinion. Before you even get involved and understand how to set it all up, you need to live te a superb location where electro-stimulation is almost free, buy a bunch of hardware and make sure to run your computers efficiently, te order to make a ge income.
Overall I don’t think it’s profitable anymore unless you truly know what you’re doing and have enough contant upfront.
Here’s a movie of one massive mining grid ter Iceland, using almost free energy. They still have an electrical play cost of overheen a million dollars vanaf month.
What’s So Superb About Bitcoin?
So now you kleuter of get where Bitcoins come from, what they are and how they’re created I hope. But what’s so excellent about them?
Recall when I said that essentially thesis group of people created to coin to fight against giant banks and corporations that create fiat money? Here’s how Bitcoin aims to do this!
When you want to buy anything thesis days, usually you’ll either withdraw money from a specie machine or you pay directly with your credit/debit card right?
Te both cases you will lose some money through banks. If you withdraw metselspecie, usually you’ll be charged a petite toverfee through that withdrawal, even ter ‘free metselspecie withdrawal machines’ spil you pay a yearly or monthly toverfee to own a canap account.
If you pay by credit/debit card, you also pay a puny transaction toverfee to the card company (for example Visa) and tax fees. There’s always some sort of middle guys corporation you have to go through.
Ter worse cases, imagine you live te a petite village ter Brazil somewhere and you have a puny coffee farm that you created all by yourself.
You then determine to grow and sell coffee beans to Europe somewhere and send the petite amount of money you earn to your family somewhere else te Brazil.
By the time you receive your money, send it to your family, you will have paid so many fees spil well spil your family, simply for sending and receiving money, they get slightly anything of the original amount.
The money goes from a European account, from Euros into your canap accounts currency (puny loss ter conversion fees and costs for having received and processed this money), through a transaction to your families account (another toverfee for sending and receiving money).
With Bitcoin you could get paid te Bitcoins, send it straight to your families wallet ter Bitcoin, end of story! Yes you would have paid a petite transaction toverfee but still nothing major and no banker controls your money.
With Bitcoin your money is transferred without middlemen
Imagine a depressie like the one that happened te Cyprus and Greece not too long ago! People who worked all their lives to save up and store their money “safely” ter banks, were refused to take out the money, that belongs to them, by the banks.
Why? Because if they would take out their money and store it physically ter their homes, banks would become worthless and couldn’t gamble with their money anymore for massive profits.
Now many bankers will always bash on cryptocurrencies, simply because they can’t control it and make money from it, ter their manipulative way.
If one thing is for sure, Bitcoin is ter many ways a lotsbestemming more secure than traditional money. After there wasgoed a hyperinflation te Germany, because they believed that by printing more money they could solve their money problems.
Bitcoin can not exceed 21 million! The government can’t control it, spil it’s managed by the people and you have total access to it, if you store them wisely.
One more thing, spil to why I love this currency and any banker who talks negatively about it, can be found ter this example: One of the most powerful boys ter the world and especially ter the banking world, Jamie Dimon, continuously attempted to bash the currency.
Ter one of my income reports , I demonstrated examples of his statements on how Bitcoin is used for money laundry and that he would fire anyone te his company that attempted to invest or trade Bitocoins.
I also demonstrated that at the same time he wasgoed one of the fattest investors once the coin dropped te value due to his words, so that he could get te for a nice discount.
Here’s what happened a few weeks zometeen … te brief, Mr. Dimon who so patriotically desired all criminals to be coughed and shut down the hideous world of cryptocurrencies, wasgoed fined for money laundering.
Am I astonished? No not at all.
Will he go to jail and face consequences? No of course not because he’s a rich banker!
What does toebijten, is that J.P. Morgan will have to pay a fine of $Four Billion, which is pocket switch considering they made $6.7 Billion profit te 2018 and that their lovely CEO made a X-Mas toeslag of $28million that year.
And do you know who does pay the consequences? All the employees that will get fired because they need to make cuts te order to pay thesis fines ter the most profitable way.
That is exactly why I hate the world wij live te, where the real criminals get to write a nice fat check at the end of the year, buy a fresh mansion or yacht and the puny fish are substituted like numbers!
Cryptocurrencies are the solution to thesis crimes.
Is It Too Late To Get Involved?
If you’re looking for the elementary response: No!
Bitcoin and many other cryptocurrencies are still te it’s infancy. Yes, the price has surged up to $Ten,000 vanaf bitcoin today spil I’m writing this postbode (29th November 2018) but this doesn’t mean it’s too late.
What many people fail to realize, is that you don’t need to have $Ten,000 to buy Bitcoins. You can buy a fraction of a coin just like you can have a few cents ter most currencies.
For example if you have $Five,000 to invest into bitcoin you’ll get 0.Five BTC.
Fair enough the more you have the better but you can still increase your value by wielding just a few.
Besides there are more currencies than just Bitcoin, such spil Litecoin (LTC), Ethereum (ETH) and Ripple (XRP) just to name a few.
Each coin has a different purpose, value, strategy and more. Read up about them and consider thesis spil well spil they’re still very low ter price compared to BTC.
If you’ve never invested financially, I fully understand that it’s all super confusing and scary. The major question is most likely, “what if I lose all my money?” but there’s a elementary solution to this.
Very first of all, I very advise not to waterput all your money into anything to start with. It would just be stupid and irresponsible. Unless you can overeenkomst with the consequences, just be brainy and don’t.
( click here if you want to read about a dutch father who sold everything he wielded to invest te bitcoin. He’s most likely a multimillionaire by now by the way!)
Secondly, once you see the price falling and you truly truly believe bitcoin will be worth 0$ you can always sell your coins before it hits rock bottom.
You can download apps to set certain alarms, that warn you once the price falls below a certain price. You can even set certain filters on your exchanges to sell the coins if it reaches that price.
But if you want to keep it effortless and stress free, just do what I do. Invest a portion you’re convenient investing with and you wouldn’t be devastated if you entirely lost it and just simply let it sit.
This is the buy and hold (hodl) method and it can’t get lighter.
A lotsbestemming of “gurus” attempt to tell you how to trade cryptocurrencies and think they know when the currency will reach certain highs and lows.
Fair enough many people might be good at it, but why stress about it when you can just buy and hold and come back a few years zometeen and contant out?
You’ll also find a lotsbestemming of financial advisors and speculators telling that the coin is a massive bubble about to burst any day.
But they’re bot telling that for years and it makes almost no sense ter my eyes. The more people get involved and begin accepting and investing into the Bitcoin and alts, the more power and request there will be.
For example China has banned the currency, which makes it truly hard for Chinese residents to invest ter the coin. But once the kerkban is lifted (which it almost surely will be very soon), another influx of millions of people will get involved and invest into the currency.
What do you think will toebijten to the price of it? Go up “to the moon” spil they say! Therefore I undoubtedly believe there is still slew of slagroom to get involved.
Where To Begin
Now if you’re truly interested te getting involved, you should undoubtedly only use money you don’t mind losing. I can’t stress that enough.
I repeat myself, because I’ve seen it overheen and overheen again with people…
For some reason, wij become very picky when wij buy groceries and attempt to budget the smallest items, like for examples with tomatoes and make a fuss when they increase ter price by a few cents.
But when it comes to going out, gambling or investing, wij all of a sudden have a different sense of the value of our money and spend it like it grew on trees.
Having said that, once you have a certain budget, inform yourself.
Fortunately you landed here very first because many people still don’t know about the voorwerp I will talk about below.
Most people that invest te cryptocurrencies, leave their cryptos on their wallets, which are very vulnerable.
Now albeit most places on which you can store your wallets online have a two factor identification process (basically asking you to login with two different methods) which may seem very secure.
But I encourage you to observe this presentation by John Mcafee (founder of Mcafee tegenstrijdig virus program) who explains why a hard wallet is the only secure way to store your coins.
A wallet is either on your rekentuig drive, a cloud or your smartphone/tablet. But many of thesis are so lightly hacked you can’t even imagine.
Basically the best way to store your cryptocurrencies, are through hardwallets . Unless someone physically steals that wallet, knows all your passwords and transfers out all your coins before you notice, they can’t be stolen or hacked.
The best cryptocurrency wallet ter my opinion is the Ledger Nano S .
Why do I say this? Not only do I own one myself, it’s also the most recommended one out there. There are a duo of others, which fairly frankly you are free to research yourself, but everzwijn since I wasgoed told about this device, I wasgoed overheen sold.
There are other models by the same company, you can find here but indeed you don’t need more than the one displayed above.
Once you’ve purchased this wallet, you can feel very safe wielding your cryptos.
Next you need to find an exchange on which you can upload your money, and buy cryptocurrencies.
There are tons of exchanges, but again please be wary and read up about them before hopping into them.
If you’re nosey to know which one I personally use, it’s bitstamp.com simply because I live ter Luxembourg any not many exchanges let you trade or invest from here.
However, they are also very neat, rapid and overall I can’t complain with the security measures they take and quick responses I’ve seen by them.
Here’s a petite list of other exchanges I know of:
You may want to sign up to several if you’re interested ter investing into ICO’s (initial coin offerings) and newer, lesser known cryptocurrencies.
But again, I’d say keep it ordinary ter the beginning and observe out with ICO’s spil there’s a bunch of pump and dumps happening ter that world.
Always do your research before leaping into anything.
What To Do Next?
What’s next is up to you!
Hopefully by now you’ve purchased the Ledger Nano S wallet, signed up to one of the above mentioned exchanges, transferred some money onto your account and purchased some Bitcoins.
Once you’ve gotten your very first coin, transfer them overheen to your wallet and see the price go up and down.
Other contraptions you might want to get spil well are certain apps for your smartphone.
I recommend Blockfolio and IQ Option.
Blockfolio let’s you type ter your trades and go after your current value, meaning you can see how much profit or loss you’re making.
That’s obviously a cool feature especially if you’re going to invest into several different coins and want to keep track on your entire portfolio.
IQ option I personally only use for graphs and looking at a detailed graph while I’m on the go.
Eventually, I would like to say that I am by no means a financial adviser and I don’t want you to take my word on how to trade or invest into the enormously volatile world of cryptocurrencies. I simply want to help those out that are interested.
My opinion is and always will be just MY opinion. You should read up on the currencies and strategies you want to implement and invest te and not take anyones word (not even mine) about the next big kasstuk!
However if you do feel like this guide wasgoed somewhat helpful, please feel free to share the postbode and comment below if anything wasn’t clear or need some advice. If you’re ter a providing mood, I’m always open to meteen donations onto my Bitcoin wallet spil well ??
I also want to leave you with this excellent article that actually explains the entire concept fairly lightly to understand and ads a pinch of humor to it.