What is Bitcoin?

Bitcoin is a digital payment system. The Bitcoin cryptocurrency is the most popular virtual currency in the world and the largest in terms of market capitalization and volume. An increasing amount of companies, shops and stores are accepting Bitcoin as a method of payment around the world, proving that it is more than just an asset to trade.

Bitcoin was created in 2009 by a software developer or group of people named “Satoshi Nakamoto”. Its price skyrocketed in 2017 from about $1.000 to more than $5,000.

Bitcoins are based on Blockchain technology, which is used for storing and transmitting information. This technology is transparent, secure and is not controlled by any central organization.

How does Blockchain technology work?

Let’s say “A” wants to send 10 Bitcoins to “B”. A block is created alongside other transactions. This is then validated by nodes in the network (also called miners) with a cryptography technique using both private and public keys. Each block of transactions is confirmed by miners while storing records of them in a general ledger. After validation, the block is added to the chain (hence the name of the Blockchain technology) and all users are given access to the transactions. “B” will then receive the 10 Bitcoins from “A”.

How to Acquire Bitcoins ?

There are several approaches that you can use to get bitcoins, that we are going to explain below. You can either start mining, join a mining pool or learn how to trade the markets (which AlphabetBTC will show you) and start making your first steps towards financial freedom.

Mine Them

The first option that you can use is the easiest but also the slowest – start mining the Bitcoins yourself. The only requirement is that you set up a dedicated computer that does nothing else but only decrypts Bitcoin blocks. To do that you will need to install a Bitcoin mining software. If you start doing this on a mid-sized desktop, the process could take up to a year just to decrypt a single block. Of course, you can speed that process up but it’s going to take a lot of money because you will have to invest in a more advanced technology.

Overall, mining bitcoins by yourself has been defined to require a lot of time and money and most of the time the investment is not worth it.

Join a Pool

The other option that you can go for is joining a so-called “Mining Pool”. Those “pools” represent a group of people who have joined forces with their computers to mine bitcoins. The principle is that there is a bunch of internet-connected computer clusters that break each block into small pieces which are shared among the group of people. Once the block has been decrypted, the resulting Bitcoin is being spread across different members of the pool and the biggest piece get those whose rig has produced the greatest amount of work.

The level of security among pools varies greatly, from simply requiring a BTC username to requiring a 2-Step Google Authenticator code before paying out. Luckily, given the anonymous nature of Bitcoin, you generally won't have to include any personable, stealable, information. Still, money and complete strangers can be a particularly combustible situation.

Get Involved with the Financial Markets

Perhaps the fastest method to invest in Bitcoin is to go straight to the markets. This option is risky but can be very profitable if you know what you are doing. That is why, if you choose our platform – AlphabetBTC, you will never feel alone when you are investing. Our experts will guide you to the best possible outcome of your investment and will make sure that you stay profitable.

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