Since 2009, Bitcoin has managed to be in the headlines. Whether it is an investment target or a payment method, it will become an increasingly important entity in the future. While many compared it with the Tulip crisis, it managed to surpass all the challenges and emerge victoriously. With the rising value of Bitcoin, it has been a matter of huge interest for investors and those looking to make good money. So if you are an investor and start investing in it in the right way, you never know; Bitcoin investment might just make you a millionaire. But before that, a smart trader should always know the basics and how things work at the core. This blog highlights the details of the same.
Background of the birth of Bitcoin
Bitcoin software was announced in 2009, and Bitcoin was born. The reason for the appearance of Bitcoin was a paper published on the internet by a person named “Satoshi Nakamoto” in 2008. The identity of “Satoshi Nakamoto” is still unknown, and there are various speculations about whether it is an organization or an individual.
Blockchain: The underlying technology of Bitcoin
The distributed ledger technology is what makes all the difference. By utilizing a blockchain mechanism called “distributed ledger”, all transaction history can be encrypted and stored in a distributed manner. Due to such a mechanism, it is said that blockchain technology cannot be tampered with. So, to speak, it can be said that users are jointly managing currencies.
There have been large-scale outflows of crypto assets (virtual currency) in the past, but there was no problem with blockchain technology. As of 2021, the blockchain mechanism itself has never been broken in the past.
Since the birth of Bitcoin (BTC), many other crypto assets (virtual currencies) such as Ethereum (ETH) and Ripple (XRP) have appeared. Blockchain technology is also used in many crypto assets (virtual money) other than Bitcoin.
Although it has a strong image as an investment target, Bitcoin can be used as a payment method or remittance in the same way as ordinary currencies.
From this point of view, cryptographic assets (virtual currencies) are attracting attention as their existence will support future financial services.
Can Bitcoin Investment Make You a “Millionaire”?
EsEspeciallywhen we are talking from the perspective of Bitcoin, and then we have to consider its volatility. The investment outcome depends on the source, timing and market conditions. As a smart stock trader, you must focus on the following aspects:
- See how the market is performing- Your analysis will play a crucial role in ensuring profitability with investment. The right time to invest makes a huge difference. Let’s look at the actual price movement. In April 2016, 1 Bitcoin was about 454.38 US dollars. Five years later, as of April 2021, 1 bitcoin is about 53,263.3 US Dollars. It has increased nearly 120 times in just five years. If we had purchased about 7200 $ worth of Bitcoin five years ago, our current assets would have exceeded 860000$.
- Invest for the long run- You always have the option of day trading, but if you want to expand your earnings, and grow it, then investing, in the long run, would be a good deal.
- Choose the right platform for trading- you must always emphasize choosing the best platform for crypto trading. A good trade platform will give you access to a multitude of tokens and will also keep the transactions safe. One such example is the bitcoin mining, which allows you to accumulate crypto assets (virtual currency) every month is also popular.
The growth of Bitcoin
Cryptocurrencies (virtual money) may gradually penetrate as a payment method in the future. As of 2021, there are many Bitcoin-compatible stores in many countries. In addition, PayPal, a prominent online payment company, has launched a service in the United States that allows payment with crypto assets (virtual currency). If you can settle with PayPal, you will have more opportunities to pay with crypto assets (virtual currency).
Concluding thoughts
This informative article highlights the basics of Bitcoin trading and how you can be a smart investor. Make sure that you are critical and take decisions based on thorough analysis rather than just running after the trend.