INTRODUCTION TO BITCOIN

BITCOIN FOR DUMMIES

This page is for all beginners who have heard about Bitcoin and cryptocurrencies but don’t know where to start. We are here to take you by the hand, make sure you don’t make any beginner mistakes and don’t get robbed of your money by fraudulent sites.

 To save you time, we have compiled some of the most important questions for you.

A Beginner’s Guide To Bitcoin

This Bitcoin For Dummies guide will help you get started with Bitcoin and other cryptocurrencies.

We will go straight to the point. No BS. Let me make a few things clear:

• Bitcoin is not an earning program

• Anyone who claims to trade for you is a scammer. There is no such thing as an “Account manager” in cryptocurrency. They are scammers.

• Bitcoin mining is not for you if you are not a millionaire. All the online mining websites are scams or pyramid schemes

• Cryptocurrency is not a get-rich-quick scheme. If you are looking for shortcuts, you surely will get scammed

• If you want to be successful in Crypto, invest in yourself by educating yourself first, before you invest in any coin 

• Anyone who promises you easy money is lying to you

What Is Bitcoin?

Bitcoin is simply a digital currency. Also referred to as a cryptocurrency, bitcoin is the first of its kind. It is digital because it is not tangible, you can’t touch it. Normal currency is like notes, coins, and gold that you can touch and see. You cannot touch bitcoin.  

Fiat currency is married to a state. A certain country can claim to own a certain currency. USD is for the USA, GBP is for the UK, Rand for South Africa, and so on. No state can lay a claim on bitcoin. It is used as a world currency. 

• Bitcoin was developed in 2008 as the currency of the Internet (cryptocurrency).

• Unlike conventional currencies, such as the dollar, euro or Swiss franc, the Bitcoin currency cannot be printed at will by central banks.

• The number of all Bitcoin ever in existence is limited to a maximum of 21 million units.

• Since many more people wanted to buy Bitcoin than sell it and the number of Bitcoins is limited, the price of Bitcoins has risen very sharply in recent years.

Who Created Bitcoin?

This is a question that is still a mystery in the minds of many people. It is not known exactly who created the technology.
However, it is assumed that a person or group of people that go by the pseudonym Satoshi Nakamoto is responsible for the currency. Today, his own bitcoins are still untouched as he has remained anonymous.

The aim behind the creation of bitcoin was something totally different. Satoshi wanted to find a way to bring peer-to-peer network functionality into transactions. That goal became what is now the most impressive technology.

Bitcoin first came into the market in 2008 when Satoshi anonymously published a paper announcing his break-through. But that was not the first time such an attempt had been made. In the late 90s, many scientists had tried to find a way into a decentralized system to bring blockchain technology into financial functionality without success. When the paper was published, therefore, it was a breakthrough of the century. 

What Makes Bitcoin So Special?

Bitcoin is money for the people. Bitcoin cannot be printed out of thin air like the normal currencies. With Bitcoin, you become your own bank. Nobody has the power to freeze or confiscate your Bitcoin. Bitcoin does not see borders, it’s accepted everywhere. But that is not all. It has other special features that make it worthwhile.

How safe is Bitcoin?

• Bitcoin is worth so much because it cannot be hacked nor counterfeited.

• No one can seriously say whether Bitcoin is a way to get rich quickly; from time to time there will be hypes and bubbles.

• The price fluctuations are sometimes extreme, but in the long term, the cryptocurrency has developed very positively.

• Bitcoin itself acts as a security against the policies of central banks and government mismanagement.

Which cryptocurrency is the best?

• The answer depends on who you ask.

• The most popular cryptocurrencies are Bitcoin, Ethereum, Cardano, Binance Coin and Polkadot.

• It is important to know that there are different “types” of cryptocurrencies. Cryptocurrencies that function as store of value (Bitcoin).Cryptocurrencies that act as a means of payment on a decentralized network (Ethereum).

• Cryptocurrencies that are backed by government currencies (Tether)Cryptocurrencies that are similar to a stock owned by a company (Binance Coin)

• Cryptocurrencies that are intended as a means of payment (Nano).And many more.

So, there are different cryptocurrencies depending on the category.

How Do You Get Rich Off Bitcoin?

Will Bitcoin prevail as a currency?

• It cannot be ruled out, but it is very unlikely that Bitcoin will become the sole future world currency.

• It is very likely that Bitcoin will remain an alternative to state-issued currencies, as it has been in the past.

• Bitcoin currently acts more like a store of value and is not necessarily optimized for daily use as a means of payment (similar to gold).

• There are now many alternative cryptocurrencies that, at least on paper, would be better suited to become a global currency.

This is what attracts a lot of people into Bitcoin, I know you’ve heard of people making lots of money through Bitcoin and now whenever you hear “Bitcoin or Cryptocurrency”, you think about getting rich overnight. The truth is, almost 99% of people who got rich off Bitcoin were early investors in the coin. They bought it when it was low and over time, the price of BTC has gone up tremendously. In 2012, the price of 1 Bitcoin was $22 and as of this writing in 2022, 1 Bitcoin is traded at $43000. Meaning that if you had bought 10 Bitcoins which would have cost you $220, you would sell them for $430000 today.

In the investment world, that kind of ROI is unimaginable and Bitcoin has been the best performing asset for the last 10 years. This narrative attracts a lot of people into the world of cryptocurrencies looking for the same gain except they want to “get rich quick” which is impossible and unreasonable. Cryptocurrency still offers a great opportunity for everyone around the world and it’s best days are yet to come, what’s more important is to take action and get started.

Strategies For Really Getting Rich With Crypto

Here is a list of what works:

• Buy and Hold – This means that you buy Bitcoin, store it safely in your wallet and wait for its dollar value to grow over time. This is proven to be the best, hassle-free and safest way to make money from cryptocurrencies. 

• Trade Cryptocurrency – This is by far the most profitable but most risky. Cryptocurrencies are volatile in nature when compared to other asset classes. This makes them very attractive for trading. 

• Earn Cryptocurrency – Bitcoin is money just like any other currency out there. For example; if you want to earn US Dollars, you either have to work for a company that pays you in Bitcoin or if you have a business, you can start accepting Bitcoin as a form of payment. But also, you can participate in bounties, competitions or micro tasks and earn crypto without having to buy them. 

• Bitcoin Mining– This is the most expensive way to do it. Don’t bother if you’re not a millionaire except if you are doing it for experimental purposes. Mining is expensive, it is not something you do online, it requires computer hardware, electricity and an internet connection. Ignore any website that promises to mine for you. They are usually pyramid schemes.

Why should I invest in Bitcoin?

• Bitcoin is the first digital currency that is free from government interference.

• Bitcoin works independently from the traditional banking system and is therefore inflation-proof, counterfeit-proof and uncensorable.

• Bitcoin is a fundamental new technology to store and send monetary values, you could also call Bitcoin “digital gold”.

Is Bitcoin mainly used by criminals?

• A very clear “no.” Bitcoin is used, bought and sold by millions of people every day.

• In many media, Bitcoin is repeatedly associated with illegal drug deals and portrayed as an anonymous drug currency. This attracts many clicks, but has little to do with reality.

• Bitcoin is not anonymous and it is often very easy for law enforcement agencies to trace illegal money transfers.

• Almost all Bitcoin investors want to buy Bitcoin to invest a part of their wealth beyond government control, rather than buying drugs with it.

• Bitcoin has arrived in the middle of society by now. Large and well-known companies like Tesla invest part of their cash reserves in the cryptocurrency.

What’s The Minimum Amount Required To Get Started

There’s no set minimum amount for investing in Cryptocurrency, you can buy Bitcoin for as little as £10.

Will Bitcoin be banned by authorities?

• Due to its decentralized nature, Bitcoin cannot be banned at all.

• Many governments now understand this fact and are creating legal frameworks instead of bans.

The GOLDEN RULE is that, you DON'T invest more than you are willing to LOSE.