5 Things to Know Before Getting Your First Bitcoin – 2024 Guide

Years ago, people in cryptocurrencies saw a chance to make money. When we hear the word cryptocurrency, the first association most people have is bitcoin. With reason, of course. Although there are several thousand different currencies, bitcoin has stood out from the very beginning as the most valuable currency, worthy of attention.

What is bitcoin?

Img source: unsplash.com

This currency was devised in 2008 by a group of people known under the pseudonym Satoshi Nakamoto. Bitcoin is a digital currency that exists only virtually, but that does not diminish its value in any way. It is decentralized, which means there is no central authority. If we go back to the time when it was created, we will see that its value was very small and amounted to $ 0.03.

Today, bitcoin is without a doubt the strongest and most popular currency whose value is constantly growing and amounts to $ 19,196.70! What this fact tells us is that bitcoin is definitely worth paying attention to and investing in. It is based on blockchain technology, which makes trading secure because the buyer remains anonymous and there is no need for a third party. However, to buy your first bitcoin, you need to know a few basic things. On  techround.co.uk you can find more about bitcoin.

Where and how can I buy it?

Img source: unsplash.com

Today, it is very easy to buy cryptocurrencies. There are exchange offices, but many consider it the most complicated way to buy, and the reason for this is that the exchange offices are controlled by the Government, which means that they have to take detailed information from each customer to prevent money laundering. So, in addition to the fact that a bureaucratic procedure that will take a lot of time must be followed, the exchange office deprives the buyer of anonymity.

ATMs have proven to be much more practical because you can access your cryptocurrencies in a very simple way. All you have to do is swipe your credit card and type in as much bitcoin as you want. Of course, before that, you will have to provide something that follows in the next step.

Crypto wallet

Img source: unsplash.com

Just as we keep money in our wallets, we also need one to keep cryptocurrencies. But since cryptocurrencies are digital money, the wallet must be like that. There are two types of digital wallets, and these are hot and cold. Hot wallets are more practical and simpler, but also put at risk of hacker attacks. Why? The reason why investors do not consider them reliable is that it demands access via a browser, which makes them an easy target.

There are mobile and desktop versions of the hot wallet, which may be a little more secure than the previous one, but keep in mind that they also require internet access. On the other hand, we have a hardware cold wallet that provides great security but is more expensive. Since it is about your money, you can consider this investment more than useful and necessary.

What can I do with cryptocurrencies?

Img source: unsplash.com

There are many options on how you can enter “new” gold, but the most famous are trading and mining. Cryptocurrency trading is recommended for everyone, especially beginners. What is good is to invest in several different currencies, so you reduce the possibility of a complete loss. Trading is very simple, you need to monitor the value on the market that changes from day to day, and sometimes several times a day.

Today, there are software applications that make it easier for investors, because they do all the work for them, thanks to artificial intelligence that recognizes changes in the market and reacts a few milliseconds before the fastest customer, which is more than enough to bring you profit. These applications are most often chosen by those for whom this is an additional source of income and who do not want to sacrifice their free time.

On the other hand, we have mining that takes more time to get to your destination, but it pays off. There are three types of mining, and these are CPU, GPU, and ASIC. They are based on a similar principle of operation, but the difference is in the speed and consumption of electricity. GPU mining is the most popular because it can be used for other currencies, not just bitcoin. It is also important to know that you need to join one of the mining pools to increase your chances of earning.

Beware of scams

Img source: unsplash.com

There is a high possibility that you will encounter some scams when it comes to cryptocurrencies and trading them. While the offer may seem tempting and probably too good to be true, then it probably is. Often scammers hide behind the names of successful companies. Don’t fall for the story of depositing without getting a bonus in return.

Counterfeit wallets are hard to spot, and once you install them on your phone, you’ve served up your personal account information.

You will often come across fake apps in the Google Play and Apple App Store. Although they are very often discovered and removed, there is always a chance that some will “slip through”. Therefore, it is important to refer to the logo of the application and whether it is written correctly because that is exactly what indicates validity.

If you don’t keep enough accounts and download malware, which is much easier and more common than you think, you’ve served all your data and access to the account.

Also, identity theft is possible. You should always pay attention to our emails that come to you from a bank, cryptocurrency exchange, or some other party related to cryptocurrencies because these emails look almost identical, but when you open them, they take you to another page where you become exposed to identity theft. data and identity.

To avoid fraud, it is best to stick to reliable exchange offices, and as already mentioned, to provide a safe, cool wallet. Now that you’ve learned the basics and protected as much as you could, start investing.