How does Bitcoin Work?
Bitcoin is brought into circulation through a process known as Bitcoin mining. Bitcoin mining involves the use of specialized hardware and software in order to solve mathematical equations. Once miners have solved the equations by spending computing power, they’re rewarded with Bitcoins.
Every time a Bitcoin is mined, it is added to the blockchain. The more Bitcoins are mined and added to the blockchain, the securer the network becomes as the blockchain is centralized throughout the Bitcoin network. In short, mining uses computing power to bring Bitcoins into circulation, secure the Bitcoin network, and keep everyone in the system synchronized.
Speaking of mining, the total number of Bitcoins that can be mined is 21 Million, and they’re expected to be mined by 2041. Why is there a limit to Bitcoins supply? Well, simply because a currency cannot be sustainable if it’s unlimited. Once the Bitcoin is mined, it can be secured in crypto wallets or traded through a crypto exchange.
Here at CryptoParrot, we strive to make it easier for beginners to understand how Bitcoin and other cryptocurrencies work. In case you’re wondering ‘how can I buy bitcoin?, we allow crypto traders to hop on to our platform and purchase, store and sell cryptocurrencies in a safe environment with ease and convenience.
Is it a good idea to buy Bitcoin online in 2021?
Ever since its inauguration back in 2009, Bitcoin has been the fastest growing cryptocurrency up to date. The value of Bitcoin has seen its highest spikes before and after crypto halving events took place. In case you’re confused, crypto halving refers to the 50% cut down on the supply of Bitcoin that takes place roughly every four years.
Effects of crypto halving on Bitcoins value
The first halving event took place back on 28th November 2012. A year after the halving event, Bitcoin’s price rose from $12 USD to $964 USD. Seeing the spike in value followed by the halving event caught the interest of investors, and the second halving event that took place on 19th July 2016 was much anticipated. Eventually, the value of Bitcoin that started from $663 USD when the second halving took place, reached $2550 USD a year later.
The same pattern occurred during the third halving event. One cannot deny the volatility of Bitcoin, and it’s no secret that its price fluctuates constantly. However, after analyzing the history of Bitcoin, its price appears to be reaching new heights during and after its halving takes place.
Recent most Bitcoin halving event
The last halving event took place on 11th May 2020. There haven’t been any immediate changes in Bitcoins value, but we can expect to see a spike in its price soon. However, it’s essential to understand that one cannot be sure of what Bitcoin’s value might be in the future. Analysts suggest that the future seems bright, so investors probably have a good chance of making profits by investing in cryptocurrency.
So, should I buy a Bitcoin?
At the end of the day, whether or not investing in Bitcoin is a good choice depends on how much risk you’re willing to take. The high potential of return comes with a high level of risk, but Bitcoin investors are in for huge profits if history repeats itself.
Here at CryptoParrot, we aim to provide our traders with the support, guidance, tools, and insights on how to buy Bitcoin. What makes us unique is that our focus is entirely user-oriented, and we pride ourselves on being one of the most straightforward crypto exchanges to use for beginners & experts alike.
The best way to buy Bitcoin 2021 – How to buy Bitcoins
There are three ways a person can get hold of Bitcoins; through the mining process, by accepting Bitcoin as a payment in return for a service or good, and through a crypto exchange. However, the truth is purchasing Bitcoin through a high-quality crypto exchange happens to be the easiest and most convenient way to invest in Bitcoins. Why? Well, here’s a list of reasons;
- High-quality crypto exchanges can be used through a phone or laptop.
- They’re designed in a user-friendly manner.
- They allow you to instantly buy and sell Bitcoin with ease.
- They provide guidance and support for beginners such as “a beginner’s guide to cryptocurrencies” or “an informative crypto guide” for each cryptocurrency they trade.
- They offer several tools that make it easy for traders to keep track of cryptocurrency values paired with crypto tips.
- They offer Bitcoin help to make sure users know about the cryptocurrency.
- They’re inexpensive and sometimes free of cost crypto transactions.
- They have a quick and easy account opening procedure.
We at CryptoParrot strive to provide our users with every feature and quality an exceptional crypto exchange platform could have. We offer easy usage, numerous tools, endless support and guidance, and on top of it all, a fast and seamless account opening process.
Why purchase Bitcoin when you can mine it?
Mining Bitcoin is a time-consuming and expensive process. You can’t efficiently mine Bitcoin without the specialized hardware and software designed for it, and even if you do, you’ll probably end up with nothing but a huge electricity bill.
Mining is a rewarding activity, but only when done the proper way or on a large scale. Many individuals join mining pools in order to benefit from mining Bitcoins successfully, while others invest huge sums of money into building mining warehouses, where they mine on a large scale to make profits.
For someone who’s just entering into the world of cryptocurrencies, the primary concern is ‘where can I buy Bitcoin from?’. Well, the easier option would be registering an account and trading Bitcoin with us. We at CryptoParrot aim to help beginners learn and grow as they invest in cryptocurrencies while providing a safe environment where they can store, purchase, and sell crypto coins conveniently.
Step by step guide on how to buy Bitcoin
Choose a crypto exchange
It’s common for investors to assume that a crypto exchange doesn’t make a difference in their trading journey and its success, but that’s not true. Buying, selling, and storing Bitcoin with an innovative, secure, and user-oriented platform is always beneficial. It’s important that you look up crypto exchanges and figure out where and how to buy btc before beginning your crypto trading journey.
Here at CryptoParrot, we strive to promote learning and offer our users proper guidance and support throughout their crypto trading journey. We understand the importance of specialized tools, easy usage, and valuable insight in cryptocurrency trading, which is why it is our priority to ensure our users have it all.
Register an Account
Once you’re confident of the crypto exchange you want to work with, it’s time to sign up. Most crypto exchange platforms have a quick and easy sign-up process, making it ideal for someone who’s just exploring their options or even someone ready to make their first investment.
Signing up with CryptoParrot is extremely easy and shouldn’t take more than a few seconds. You can hop on to our website and select ‘Sign up’. You’ll have to fill in your name, email address, and password and you’re good to go. We’ll send you a confirmation email to verify your name and email ID, and all done. Then you can explore our platform and get to know more about buying Bitcoin and ‘how do I buy Bitcoin’, to begin with.
Begin learning and experimenting without risking capital
It’s always better to understand how crypto exchange platforms work and the risks that tag along before diving into investments. Here at CryptoParrot, we offer users demo trades on real-time markets so they know what they’re getting into.
Users can visit our site to experience crypto trading through our stimulated exchange feature without risking any of their capital. This enables one to understand where they stand in terms of crypto exchange knowledge and gives them a good idea of how a crypto exchange works.
Fund your account and begin your crypto trading journey
Once you’re done with the signing up process and have explored the crypto exchange, it’s time to fund your account for investments. You can see the value of Bitcoin on our platform and fund your account accordingly.
We highly encourage continuous learning as we believe education is the pillar to growth and successful investments. Experience certainly plays a huge role in understanding cryptocurrencies, but the more you devote to learning alongside, the better your chances are of making low-risk investments.
Here at CryptoParrot, we provide our users with educational tips, knowledge, and insights to ensure they’re on top of the game. However, reading books and articles on Google alongside could prove highly beneficial as well.
Understanding how Bitcoin works and how do you buy Bitcoin to begin with, can be a massive challenge for a beginner, especially because cryptocurrencies are still a relatively new concept. As one of the best crypto exchanges to buy bitcoins from, we aim to make Bitcoin buying easier, simpler, and more profitable for our users.
We cannot stress enough the importance of a high-quality crypto exchange when it comes to buying, storing, or selling Bitcoin. Using a secure, easy-to-use, and informative crypto exchange could do wonders for you.
What makes CryptoParrot the best place to buy Bitcoin is that it takes only a few seconds to sign up, and we allow our users to test their skills and knowledge without risking any capital with the help of our stimulator. This is also effective in helping users understand how a crypto exchange works and what risks are involved when trading Bitcoin or other cryptocurrencies.
How To Buy Bitcoin FAQ
Is it worth it to invest in Bitcoin?
Ever since Satoshi Nakamoto first mined Bitcoin, it has seen an exponential rise in value. Out of several cryptocurrencies that emerged over time, none were as successful as Bitcoin. However, it is no secret that Bitcoin is a highly volatile asset, and hence an investor should be willing to face risk before purchasing the cryptocurrency. The bright side is that analysts predict that Bitcoin has a bright future and will continue to grow in value and acceptance.
💵Can I invest 100$ in Bitcoin?
When it comes to purchasing Bitcoin as a beginner, it’s always good to start small and build a portfolio. Many platforms have a minimum investment amount to purchase cryptocurrencies. However, the margin is usually pretty low. Some crypto exchanges even allow users to invest as low as 2$, while some have slightly higher margins. Albeit, investing such little amounts won’t offer profit returns.
💥 How much would I have if I invested 100$ in Bitcoin in 2009
Bitcoins price has multiplied rapidly over the years, allowing many early investors to gain a fortune out of it. If you were to purchase 100$ worth of bitcoin in 2009, that would be 1000 Bitcoins. Today, the worth of those 1000 bitcoins would be 48 Million USD. However, that would mean purchasing and holding the asset over the years up till now.
❓ How do you purchase Bitcoin as a beginner?
Purchasing bitcoin is the easiest way of acquiring the revolutionary cryptocurrency. Mining is another option, but it requires extensive time and computational power. In order to purchase bitcoin, a beginner would have to register with a crypto exchange. After signing up, you have to fund your account, and then you can invest your funds to purchase Bitcoin.
🤖Who owns the highest amount of Bitcoins
The founder of Bitcoin, an anonymous individual that goes by the name Satoshi Nakamoto is the first to mine bitcoin. He is currently known to be the owner of $34.9 Billion worth of Bitcoins. That is the highest amount of Bitcoin owned by anyone at present time.