$BTC What is Bitcoin? The simplest explanation about Bitcoin (BTC)
What if these terms explain bitcoin? Or how to make money from bitcoin? If you find it difficult to understand, please continue reading the article below, I will explain this issue in the simplest and most thorough way.
1. What is Bitcoin?
Bitcoin (BTC) is a cryptocurrency, which means it does not exist in the form of cash as we often see it. Instead, it exists on the Internet in the form of digital code stored on a network called Blockchain. This means that Bitcoin is not controlled by any financial institution, and Bitcoin transactions do not require the intermediation of any participating banks.
Users can send and receive BTC directly, from person to person, without having to go through anyone else. This creates great flexibility and convenience for users. At the same time, Bitcoin is also strongly secured by encryption, helping users feel secure about protecting their information and money.
2. Who created bitcoin
Bitcoin was first introduced in 2008 through an article on a technology forum, under the alias Satoshi Nakamoto. In the article, Satoshi Nakamoto introduced the idea of a completely decentralized cryptocurrency system, based on blockchain technology.
Then, in January 2009, the first version of Bitcoin was released, marking the official birth of Bitcoin. On January 3, 2009, Satoshi Nakamoto gave birth to the first block of the Bitcoin blockchain, called the “Genesis Block”
However, at the end of 2010, the father of bitcoin withdrew from the project without leaving any information about his identity or position. The community's efforts to find the true identity of Satoshi Nakamoto have lasted for many years, but have not yet achieved definitive results. This has created one of the biggest mysteries in blockchain history
And after “founder” Satoshi left the project, Gavin Andresen was one of the key figures in turning Bitcoin into one of the most important, valuable digital currency symbols in the world today
3. Is investing in bitcoin safe?
Bill Gates said in an interview with Bloomberg. “If you have less money than Elon Musk, you should be careful” when asked about the safety of investing in bitcoin. In fact, many people are "crazy" into Bitcoin, especially those who are not financially well off or those who do not have much experience with Bitcoin investment.
And as I just defined above, Bitcoin is a cryptocurrency, like every other asset, it can increase or decrease in price. Up to now, the price of Bitcoin has increased sharply, which may make many people want to invest in it to make profits.
However, Bitcoin is also a very volatile market. Its price can change rapidly and unpredictably. This means you can make a lot of money from this market, but you can also lose it all.
Additionally, Bitcoin is not managed or protected by any organization or individual. This means that there is no one to protect your wallet if something goes wrong, such as being hacked or, most simply, forgetting your wallet password.
In short, investing in Bitcoin can provide extremely profitable opportunities, but it also comes with risks. To ensure the safety of your investment, only invest the amount you can "afford to lose" and research thoroughly before deciding to invest. Don't forget to sign up to receive 5money's investment knowledge emails right on the homepage to stay updated on the latest market fluctuations.
4. Where to buy bitcoin?
After carefully considering the opportunities and risks of investing in bitcoin, "where to buy bitcoin" is also an issue that new investors are interested in.
Centralized cryptocurrency exchanges (CEX) are safe and easy options for beginners. The most popular is Binance with a user traffic of up to 210 million registered users (According to Binance's latest 2024 report).
Besides, Binance also has diverse payment methods and stable transaction fees, providing an easy and safe online Bitcoin buying experience for users.
5. Where to store bitcoins?
Finally, once you own Bitcoin, how to store it safely and easily. There are two main ways to do this: hot wallets and cold wallets
Hot Wallets: Hot wallets are like cryptocurrency wallets on your phone or computer. This is where you can store some Bitcoin for easy access and use for everyday transactions. However, this hot wallet must connect to the Internet, so it can be vulnerable to attacks from hackers.
Some popular types of hot wallets: Coinbase.com wallet, blockchain wallet, exchange wallet
Cold Wallets: Cold wallets are where you store Bitcoin without needing to connect to the Internet. It works like a USB. Your job is to transfer coins and preserve them yourself. This makes it safer because hackers cannot attack remotely.
There are 2 popular types of cold wallets today: Trezor Wallet and Ledger Wallet. The price of these two types of wallets is about 2,000,000 VND/wallet
Each type of wallet has its own pros and cons, so no matter which one you choose, it's important to protect your information. Remember to back up your information regularly and do not share your wallet information with others. And master the principles of crypto security to ensure that your Bitcoins stay safe and won't be lost.
6. Summary
Above is basic, simple information to help explain "What is bitcoin?" and surrounding issues. Hopefully, it will help you in your process of learning about bitcoin investment. Wishing you make the right decisions before spending money and have a peaceful financial life!
Disclaimer: Readers are advised to have in-depth knowledge of the Crypto market before investing. The information in the article is not considered financial advice, 5Money is not responsible for any of your investment decisions.
