Bitcoin is nearly 12 years old now, and slowly, we’re starting to see it crawl its way out of the niche market. Despite it being over a decade old, there are still many people out there who don’t know what it is—so what is Bitcoin?
Bitcoin (BTC) is a “peer-to-peer electronic cash system” created by Satoshi Nakamoto in 2009. It’s a purely digital asset that has no physical footprint; only balances kept on the blockchain. The blockchain is the revolutionary technology that came alongside BTC. It’s a decentralized, consensus-driven, and distributed public ledger that keeps track of all BTC transactions.
It may sound a little intimidating, but you can think of it as Internet money that belongs to no specific country. All you need is a smartphone and you’re ready to go.
Why you should consider investing
Now that you have an idea of what Bitcoin is, you’re probably thinking: why should I buy Bitcoin? What’s in it for me?
The first reason is that it’s easier than you think. We understand that it can be a little daunting at the start with all the jargon and numbers being thrown your way, but it’s really not that complicated. With the amount of time that BTC has had to mature, the communities have grown and the platforms have become easier to use. Just find a platform that you’re comfortable with and stick with it.
The next reason is that it’s an excellent way to earn passive income. Bitcoin gives you the opportunity to sit back and watch your money grow. We’ll go into more detail about how you can make passive income with Bitcoin later, but you should know that it’s a great reason to explore BTC investments.
Lastly, with Bitcoin hitting its all-time high towards the end of the year, it’s safe to say that its adoption is on the rise. More merchants and business owners are starting to accept BTC as a payment method for their goods or services, creating more real-use opportunities for the digital asset. It’s no longer just an investment tool, but it can be a means of payment now as well. The more you can use your BTC in your daily life, the better.
How to start investing
Before you pick up your wallet and get ready to buy some BTC, make sure you do your homework.
First, look for a platform that suits your trading needs and style. There are two main types of exchange to be on the lookout for: traditional Bitcoin exchanges and peer-to-peer (P2P) Bitcoin marketplaces. Traditional Bitcoin exchanges are more straightforward. You link your bank account, look for offers that intrigue you, and then conduct the trade via an intermediary. P2P marketplaces, on the other hand, have a bit of a learning curve as there is no middleman to help the traders out. The trade-off is that in P2P marketplaces, fees are often lower and there are hundreds of payment options at your disposal.
The next step is to create an account on your preferred platform. Each kind of platform will have some sort of verification requirements. For example, traditional Bitcoin exchanges will require you to link a bank account and some P2P marketplaces only require email verification. For most higher-tier Bitcoin platforms, you’ll even get a free Bitcoin wallet when you sign up.
Once you’ve got your platform and wallet, you’re ready to start trading! If you’re afraid to put a lot of money in, some platforms allow you to begin trading with as little as 10 USD. You can test the waters first and then cannonball in once you’re more comfortable.
Earning passive income with BTC
We’ve mentioned earlier that you can earn a passive income with Bitcoin, but how does one do that? Here are a few ways to do so:
- Mining – Although it isn’t as profitable as it used to be, Bitcoin mining is one of the oldest ways to earn a passive income with the coin. It’s worth noting that it may take a lot of capital to get started because of how competitive it is nowadays.
- Lending – Many P2P lending platforms will allow you to lock up your funds and collect interest payments later. It’s an excellent alternative for holders who don’t want their money sitting stagnant in their wallets.
- Affiliate programs – Many exchanges will reward you for bringing new users onto the platform via affiliate or referral links. Suppose you have a lot of followers on social media. In that case, affiliate programs can be an excellent way to earn a passive side income.
It’s not too late!
With the ever-growing popularity of Bitcoin, we understand that it can get a little intimidating but don’t be afraid. BTC is for everyone of all ages. It has many real-use opportunities that can make your life much easier, and anything like that shouldn’t have an age restriction.
As Bitcoin continues to evolve and adoption continues to rise, we’re probably going to start seeing more real-use opportunities pop up. Get started today and experience all the benefits of BTC in the palm of your hands!