Bitcoin trading: A layman’s guide

April 9, 2020 50

There are differing opinions as to whether investing in cryptocurrencies like Bitcoin is helpful or not. The responses and viewpoints regarding Bitcoin purchasing and trading vary from person to person.

Three main ways to get Bitcoin

There are three primary ways you can get or earn Bitcoin.

Firstly, you can earn it by investing in a mining rig to mine the blockchain for rewards. Depending on your required specifications, it could cost you upwards of $10,000. Alternatively, you can opt to utilize cloud mining, where the provider has all the equipment, and reap the benefits. One of the best cloud mining sites is Genesis Mining (promo code: O6lVMA).

Secondly, you can purchase it via an exchange. One of the most popular exchanges is Coinbase, which allows you to purchase other cryptocurrencies on the platform. (You can even earn an additional $10 in Bitcoin with a $100 purchase or sale.)

Finally, you can sell a product or service online and allow the customer to buy it using Bitcoin or other cryptocurrencies. This includes the use of newer generation web browsers like Brave, which pays out in a cryptocurrency called Basic Attention Token. You can also earn some extra crypto by utilizing cash-back apps like Lolli.

For the sake of this article, we are focusing on the second method.

Is Bitcoin too expensive? Not exactly

Bitcoin is divisible into nine decimal places, with the increments being called “satoshi.” The unit is named after Satoshi Nakamoto, the presumed Japanese white paper author and chief developer.

As a result, it can be purchased, sold or exchanged in these fragmented portions instead of paying for a whole unit.

Mining – the past, the present and the future

Early in the history of Bitcoin, the only way it could be acquired was through mining. The first generation of mining involved ASIC mining hardware operating on a USB stick. In the beginning, costs were inexpensive and the network difficulty was incredibly easy

However, ASIC mining has evolved, but the costs of a highly competitive ASIC miner can run upwards of $10,000 or more. This has resulted in some people utilizing the most their CPU and GPU cards have to offer for mining power. As a result, both often require regular replacements. In comparison, you can get the most of your mining buck by spending less for more mining power.

In the early days, Bitcoin started from nearly worthless. Two years ago, it peaked in the markets just shortly above $20,000. Currently, Bitcoin has a value of $7,122.68 (as of 11:09 PM CDT on April 9, 2020).

In 2020, the Bitcoin trade — and cryptocurrency altogether — is now worth billions.

Trading Bitcoin

Users of cryptocurrencies can purchase Bitcoin or other cryptos through various exchanges. Two of the highest-trafficked exchanges are Coinbase and Uphold. These exchanges allow you to purchase it with your bank account or debit/credit card. Additionally, there may be restrictions as to how long you must keep your holdings before you can sell it.

A ledger protected by the blockchain records all transactions, which sets buying and selling parameters. These are otherwise known as bids and asks.

The bids and asks consistently changes based on market conditions. Additionally, a major purchase or sell-off could impact the prices as well.

Conclusion

The method in which you acquire Bitcoin is just a matter of technique and ideas. Whether it’s mining, purchasing, retail sale or payment for a provided service, there is no limit to what you can do.

Disclosure: The editorial team of Heartland Newsfeed has included some affiliate links in this article. If you utilize the services with an affiliate link, it does not cost you anything extra, but we will receive a small commission to help keep the lights on. Thank you for understanding.