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- What is Bitcoin and How to Invest in it
What is Bitcoin and How to Invest in it
Could you and should you invest in bitcoin? You can and it depends on your appetite for risk. First, let’s get the basics out of the way.
Bitcoin is a decentralised digital currency that uses cryptography for secure financial transactions. It was created in 2009 as a way to transfer value without the need for intermediaries like banks.
Since its inception, Bitcoin has become a highly sought-after investment opportunity due to its potential for high returns and its unique, decentralised nature.
What is 'Blockchain'?
Blockchain is the technology that enables the existence of cryptocurrency (among other things). Bitcoin is the name of the best-known cryptocurrency, the one for which blockchain technology was invented.
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If you're a seasoned investor who has just learned about Bitcoin and are interested in investing, here's what you need to know:
How to buy Bitcoin in 3-simple steps:
Step 1: Create your account on Binance
Sign up with your email address or mobile phone number, and choose a strong password.
Step 2: Buy Bitcoin using credit/debit card
You can directly purchase Bitcoin using debit card or credit card (Visa or Master Card).
Step 3: Check your digital wallet - portfolio
Click ‘Wallets’ in the menu.
Next to ‘Bitcoin’ you should now see your own Bitcoin amount.
How to send and receive Bitcoin:
Sending and receiving Bitcoin is all managed from your Binance account.
To receive Bitcoin from someone else, they just need your unique Bitcoin address. You can find yours by clicking the “Send/Receive” button and then “Receive”. It’s also in a QR format that’s more convenient for mobile phones.
To send Bitcoin, there are a couple more steps:
Click the “Send/Receive” button.
Enter the amount (to be sent from your digital wallet).
Enter the BTC address of the receiving person or wallet.
Click “Continue” to confirm the transaction.
Managing your risk:
It's important to note that investing in Bitcoin carries risk. The price of Bitcoin can be volatile, and there is always the possibility of losing money on your investment. It's important to do your own research and only invest what you can afford to lose.
If you're considering investing in Bitcoin, it's also a good idea to diversify your portfolio by investing in a mix of different cryptocurrencies and traditional assets. This can help spread out risk and potentially increase your chances of earning a return on your investment.
In summary, Bitcoin is a decentralised digital currency that has the potential for high returns but also carries risk. If you're interested in investing in Bitcoin, it's important to do your own research, diversify your portfolio, and only invest what you can afford to lose.
To buy Bitcoin, you'll need to open an account on a cryptocurrency exchange, verify your identity and deposit funds using a bank transfer or credit card.