What is Bitcoin?

Bitcoin (BTC) is known in the world as the first and the most popular of the more than 21,000 cryptocurrencies in existence today. Financial media covers all the events that are connected with this asset.

As Bitcoin has become a powerful part of the financial system it is important to know more about this form of money — the history, how it works, how to get it, and what it can be used for.

When and Where Did Bitcoin Appear?

October 31st, 2008, was the day when the BTC whitepaper was published on the Internet. It was titled, Bitcoin: A Peer-to-Peer Electronic Cash System. The author's name was Satoshi Nakamoto.

On Jan. 3, 2009, the first Bitcoin block was mined — "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps proof that the block was mined on or after that date, and maybe also as relevant political commentary.

Since then it has become the most well-known cryptocurrency in the world. Its popularity has inspired the development of many other cryptocurrencies.

What Is Bitcoin?

Bitcoin is a cryptocurrency, a decentralized digital form of money. Its goal was originally described as “an electronic payment system based on cryptographic proof instead of trust.”

Unlike fiat currency, it is created, distributed, traded, and stored using a distributed digital record called a blockchain.

Bitcoin's Blockchain Technology

What is blockchain technology? Simply put, Blockchain is a new decentralized (which means it's not controlled by any organization) way to store and manage data. Being a part of Distributed Ledger Technology, it enables storing information (in the case of cryptocurrencies — transaction data) on many servers across the globe rather than keeping it all in one place.

As the name suggests, a blockchain is formed of a connection of blocks storing transaction information.

When a transaction takes place on the blockchain, information from the previous block is copied to a new block with the new data, encrypted, and then the new transaction is placed into a queue to be validated by miners within the network. All the miners in the blockchain attempt to verify the same transaction in parallel.

The first who does it gets a Bitcoin (or its part) as a reward.

Source: Arctic Wallet

While the idea that anyone can edit the blockchain might sound risky, it's actually what makes Bitcoin trustworthy and secure.

Before adding a new block, the transaction must be verified by the majority of all BTC holders, and the unique codes used to recognize users' wallets and transactions must conform to the right encryption pattern. These codes are long, random numbers, making them incredibly difficult to produce fraudulently.

BTC's Features

Decentralized

That means that BTC is not controlled by any third-party organization.

Source: Arctic Wallet

Opportunity to Send Money All Over the World

With your BTC wallet, you can send or receive to another wallet from any place in the world. This can occur 24/7 without any third-party organization. All that is needed is for the transaction to be confirmed by miners.

Source: Arctic Wallet

Store Of Value

A limited number of Bitcoins make them one of the best stores of the value of any asset on the planet. Why? Because its rarity will make it difficult for them to drop in value.

Source: Arctic Wallet

A Bank In Your Pocket

When you store Bitcoin in any cold wallet, you hold your money without any counterparty risk. This means you have a bank account in your pocket. The power of this feature is revolutionary.

Source: Arctic Wallet

Large Developer Network

The BTC developer network is the largest cryptocurrency group of developers. Thousands of people are working on improving the Bitcoin software. This brain power ensures Bitcoin's future.

Source: Arctic Wallet

Secure, Reliable, Immutable

Bitcoin has never been hacked and likely won't. What makes it secure and reliable is cryptography.

The next thing is that the blockchain cannot be modified. Once a block is created, that block is immutable. This is one of the reasons for BTC's reliability.

Source: Arctic Wallet

Why Do People Invest in Bitcoin?

It's scarce. The market cap of BTC being limited to 21 million tokens makes it a highly desirable asset and gives it the potential for high returns.

For generating long-term wealth. It's even predicted to compete with gold here.

Bitcoin is one of the most established cryptocurrencies (along with Ethereum). Tons of crypto projects pop up every day, trying to hype up, sell out, and then who knows? Bitcoin has been out there for more than ten years and seems like it's here to stay.

Global Adoption. There are already hundreds of brands accepting BTC as a payment method and numbers keep growing.

To overcome hurdles of accessing financial tools. Bitcoin is powered by blockchain — a borderless technology allowing to send it anywhere in the world. It's permissionless, independent, and decentralized money, offering a complete ownership factor.

Yet, here is a reminder that the benefits that come with it accompany risks involved in crypto or any kind of investment.

How to Buy Bitcoin Using a Credit or Debit Card?

• Buy Bitcoin via a Reputable Exchange

Various crypto exchanges such as Coinbase, Kraken, Binance, and OKX are offering to buy BTC with a bank card.

:warning: It should be mentioned that the largest exchanges are often centralized and may restrict trading activities and lock your funds anytime. So exchanges definitely are not a go-to for your long-term holdings.

• Buy Bitcoin right from your Wallet

Many digital wallets today offer great functionality and have an in-built purchase option.

It allows you to avoid fees for transferring funds into your wallet from exchanges and any additional friction in the buy-store journey.

Also in many wallets you can find such features:

• Buy and sell option
• Asset statistics in Portfolio
• Full transaction history tabs
• Customizable commissions for sending coins

See the example from Arctic Wallet down below.

Source: Arctic Wallet App

Alternate ways to buy Bitcoin

1. Some platforms, including eToro, accept e-wallets PayPal and Neteller in exchange for your BTC
2. Bitcoin ATMs are also an option. Yet, beware of additional fees.

How to Store your BTC?

Essentially, you do not own your crypto until you hold it in your digital wallet. So always store it in a reliable hardware or software wallet. As opposed to exchange wallets, non-custodial ones (as Arctic Wallet) give you full ownership over your funds and private keys. Considering this, buying cryptocurrency right from the wallet may be a great option.

Conclusion

Lately, Bitcoin has significantly dropped in price. That fact turns it into a good opportunity to invest while it's low. BTC is the most developed and adopted crypto in the world, which makes it a perfect asset to start your investing journey.

Become Bitcoin Investor in three steps:

1. Choose the service and the payment method
2. Place an order
3. Make sure the purchased BTC is stored safely

On a final note, Bitcoin and crypto in general is a highly volatile asset class. Always research and understand the asset that you're investing in and the risks that you're taking.