Investing in Crypto, The Ultimate (and Simple!) Beginner’s Guide: How and Why to Buy Bitcoin (BTC) in 2022?

Bitcoin has grown by leaps and bounds in recent years. In May 2016, you could buy a bitcoin for around $500. In April 2022, a single Bitcoin was worth over $46,000. This is a growth of more than 9,000%.

Some analysts believe that the price of Bitcoin could increase even more as cryptocurrency and blockchain technology become more prominent in people’s daily lives. But buying Bitcoin comes with big risks. Along with impressive gains, BTC has also seen devastating declines. After nearly hitting $20,000 in 2017, for example, Bitcoin’s value dropped to around $3,100 about a year later.

Bitcoin remains a highly volatile asset, and simple things like an untimely tweet from Elon Musk can decimate its value. If you want to buy Bitcoin, experts recommend investing no more than a small percentage of your net worth in the major cryptocurrency.

Bitcoin (BTC): the essentials to know

1 – What is Bitcoin crypto (BTC)?

  • Basic principle : With more than a decade of existence, Bitcoin is the reference digital currency throughout the world with the largest capitalization. It is a decentralized protocol which aims in particular to offer an ecosystem via its BTC currency, accessible to all and independent of States and traditional currencies. Bitcoin has the particularity of having a cap of 21 million bitcoins that will be put into circulation.
  • Use : The Bitcoin network is secured by miners who verify all transactions made on this network. To be confirmed, the transactions are included in a block which must correspond to very precise cryptographic rules which will be verified by the network itself. All Bitcoin network transactions being recorded, each individual, user or not, can access it at any time.

2 – The project and the blockchain behind Bitcoin

  • Project : Bitcoin is a particularly large and dynamic project, in which multiple teams of developers around the world are working on different aspects of this project. The source code being free, open to access and free of rights, any developer can contribute to the Bitcoin edifice. A few well-known teams are directly involved in the development of Bitcoin: Bitcoin StackExchange or Slack from Bitcoin Core.
    Besides the development of the Bitcoin ecosystem, there are also many free software projects that developers can work on, such as Bitcoin Wallet, BFGMiner or Armory.
  • blockchain : Bitcoin is based on the principle of Proof of Work (proof of work) and on the implementation of a blockchain, that is to say an open register which records all the operations and data related to its activity since its creation. Anyone can freely consult the operations at any time, this is the very essence of the independence and security of the system.

3 – Analysis and opinion on Bitcoin (BTC)

The +:

  • Due to its long history, Bitcoin has the most developed ecosystem, very high liquidity, and is the most established cryptocurrency with brands and merchants around the world.
  • Bitcoin also has interesting features for businesses, particularly in terms of security (with multiple signature authorization) and its accounting transparency.

The –

  • This ecosystem is considered very/too energy intensive because of the complexity of the calculations required for mining. The production of bitcoin is also mainly located in countries where electricity is cheaper, to increase the profitability of the mining activity. Due to the use of Proof of Work, the conversion of Bitcoins into Fiat currency and transactions in general entail significant costs. Finally, transaction speed and fees fluctuate a lot depending on mining efficiency and network congestion.

4- How to buy Bitcoin (BTC)?

Buy Bitcoin (BTC) for trading

To trade this cryptocurrency, the eToro broker is the most suitable. In addition to buying the tokens, this platform allows you to trade short-term crypto CFDs without having to hold the tokens.

  • Step 1 : use the search bar of the eToro platform to find the cryptocurrency.
  • 2nd step : then click on “Invest” to give the amount of cryptocurrency to buy and validate the transaction.

Read This article to find out how to buy cryptocurrency on eToro.

Buy Bitcoin to invest

To invest in this cryptocurrency by holding them in a wallet, go to the Binance platform.

  • Step 1 : go to the “Buy cryptos” tab then choose the payment method of your choice.
  • 2nd step : select the crypto to buy and proceed to secure payment. Then, the cryptocurrencies will be credited to the dedicated wallet.

Read This article to find out how to buy cryptocurrency on Binance.

Sebastien Gatel
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