How To

How To Buy Bitcoins Cheap?

When Bitcoin hit a record high of ~ $1,162 in February 2017, quite a few people were aghast.

The question on the minds of most people was, “Is it worth buying now?”

You cannot fault people for thinking in this manner. Bitcoin was traded in the zone $600-$630 during July –September 2016.

Its price was an unfathomable $0.003 in March 2010. It never topped $ 1 in that year.

This kind of spike is certainly indecipherable.

What is it that has driven interest in Bitcoins?

To start with, Bitcoin was the answer to technical and economic problems. The general public started showing interest primarily because of banking blockades and fiat currency crises.

To recollect, In December 2010, three of the largest payment providers, Visa, MasterCard, and PayPal cut off funding to Wiki leaks.  

The Bitcoin phenomenon is one of the most captivating things to have happened in the cyberspace. It is an invention made by a programmer named Satoshi Nakamoto. He launched it in 2009 but strangely vanished altogether in 2011.

So what is Bitcoin after all?

It is a form of digital asset or cryptocurrency, whichever way you call it.  It is created through a crafty amalgamation of encryption and peer-to-peer networking.

If you are the owner of Bitcoin, you, in fact, control a confidential digital key, which you can make use to prove to anyone on the network that a specified number of Bitcoins are yours.

Whenever you spend Bitcoin, you tell the network that you have transferred ownership of it. Moreover, you use the same confidential key to prove your identity.

What are the advantages of Bitcoins over the regular bank currency?

Here are a few things we can think of:

• It is fundamentally different from conventional banking – For example, unlike in banking, accounts cannot be frozen or a payment is stopped. Neither can any regulations can be put in place. This feature, of course, has given a boost to cybercrime and drug peddling.

• Transactions can be finalized without personal information being exchanged. This prevents identity theft

• Bitcoins can be encrypted to ensure the safety of your money

Is it possible to buy Bitcoins cheap?

Bitcoin mining is one option provided you are able to get cheap mining hardware

There are two other options.

Arbitrage: It is all about buying it at a cheaper source and selling it at locations where it is expensive

Trading: You can be a trader on several websites. Some of the sites are exchanged websites just like stock markets. Smart traders cleverly use the trading technique because they are able to get the best deals from people who are desperate to sell.

A few days back that is in the first week of December 2017 Bitcoin crossed $16, 000.  Should you be buying Bitcoin too?

It is up to you.

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