The idea of a digital currency ecosystem that has no feel and touch attribute is not actually complicated at all. Most of us are familiar with using our banks’ online banking apps to transfer money to family, friends, and other beneficiaries.
Just think about that, but without the “bank” part. In the case of the cryptocurrencies, replace the bank with a Blockchain. Use of peer-to-peer transaction model, enabled by the blockchain, and no physical versions of the coins either. Tesler App will give you the much-needed in-depth knowledge of how the crypto world works.
To put the cryptocurrency concept more simply, and clearly, see the equivalents of your normal banking terms in crypto terms:
The Basics About Cryptocurrency
What is cryptocurrency? How is it formed? How do you spend it? How do you get it? What are the benefits? …and so on, are some of the frequent questions you may get from one who’s just getting introduced to the concept of cryptocurrency.
Cryptocurrency is a digital currency. Simple. They are created, not via printing by a Central Bank, but mined using a set of encryption algorithms. The currency, once created, must be stored in a wallet (like a bank account). The wallet can either be locally set in your computer/phone, or stored in a cloud-based platform. Your encryption keys are your access to the wallet which houses your cryptocurrency.
As with any new concept trying to unseat its incumbent, Bitcoin and the rest of the cryptocurrency digi-space can only slowly replace the existing currencies. Alongside its growth, cryptocurrencies have witnessed adoptions, bans, crackdowns, and even devaluations.
The first hint of the idea of cryptocurrency was in 1983, when American cryptographer David Chaum created “electronic money”. He named it “ecash”, and it was also shrouded in decentralization and anonymity. Fast-forward to 2009, after a major financial recession and a lot of research in the UK, Europe, and North America, the world’s first real crypto-currency – Bitcoin was born.
What Are Bitcoins? A Brief Overview
Bitcoin (BTC) was formed after a complete breakdown of the banks – stakeholders trust bond in 2008 during the major world financial recession. The model of the virtual currency, created by a scholar called “Satoshi Nakamoto”, was all about decentralization and transparency. 1 Bitcoin was $0.
Fast-forward to 2022, even after the periods of turmoil due to the heavy crash in November 2021, 1 Bitcoin is valued at around $19,000 as at the time of writing this article. There’s something real to learn from the growth of Bitcoin (BTC) which led to the growth of the digital ecosystem altogether.
How to Invest in Bitcoins in 2022
When you decide to invest in Bitcoin, one thing that should be made very important is how not to get caught up in the hype. The digital cryptocurrency world is extremely volatile. You must be wary of its risks even when you are enticed by its benefits – learn how here.
Here are the things you should do to set up a Bitcoin portfolio for yourself:
- Register an account on a trusted, and recommended cryptocurrency exchange platform. A good example is Binance.
- Submit your biometric, address, and identification information for necessary verification
- Make a deposit. How this is done varies from platform to platform – so, read up your chosen platform’s mode of deposits
Once you are done adding funds, you can then choose to purchase bitcoins seamlessly. Since transfer of Bitcoin is peer-to-peer, say bye to banks and all the other middle-men in-between. All your transactions can be settled right away within seconds.
It is recommended to start with a small amount of money at the beginning, and once you get used to it a little, it is recommended to invest funds. Price fluctuations are extreme and high profits can be obtained when you study the market before entering a trade.
How to know when to buy or sell or hold cryptocurrencies (Bitcoin)
This is very essential to your survival in the crypto ecosystem. Knowing when to get more stock, when to short, and also when to hold down your stance (HODL).
Here are a few indicators that need to be studied to know good time to buy Bitcoins, when to hold (as it may only return to its original value) or bad times to sell Bitcoins:
- Relative Strength Index
- Bollinger Bands
- Stochastic Oscillator
Do an in-depth study of the outlined indicators and you will find yourself doing better trading Bitcoin (or any other cryptocurrency) than before.
Information contained on this article are just that – a piece of information. You should not use this to make financial decisions and we highly recommended you seek professional advice from an authorized expert.