Is it time to invest in bitcoin

 invest in bitcoin: Every time bitcoin moves rise or falls, it makes headlines in the newspaper. This has been repeated in a cyclical way for years. Every time the currency appreciates mainly, the price goes up and people start talking about bitcoin and this time is no different. Once again we have a great appreciation of bitcoin and it has become the fashion issue.

WHAT IS BITCOIN

I say that bitcoin is a store of value or trade operation, for speculation where only currency appreciation is expected. Yes, it is a currency, a digital currency , it is a cryptocurrency , a crypto as they say. It was presented in 2007 on an internet forum by a forum programmer who used the alias of Satoshi Nakamoto and is an idea of ​​a person-to-person payment system directly without banking intermediaries , where a free banking system is created and you do not depend on of a financial institution.

This system is based on the idea of blockchain , which is a giant and shared ledger , where the members themselves will authenticate this operation. This is done jointly by thousands of users worldwide, and it is this group of people authenticating and confirming the operations that really makes things valid.

What is Bitcoin
What is Bitcoin

The people who do these authentications earn small fractions as remuneration and this process is called ” mining “. And then what we have are multiple people confirming the transactions of millions of people, it is the system itself being responsible for the system itself , it does not have a central financial institution, a Central Bank that controls, organizes and is responsible for all of this.

Bitcoin is a free currency and came up with this idea of ​​giving freedom to its users, but this is good and bad, it has its pros and cons.

It is always important to point out that there is not only bitcoin, it is just one of the more than 1,500 digital currencies that exist and it is difficult to say which is the best and especially the currency that will last and exist in a long time. Today more and more people talk about bitcoin, as it is the oldest and the main currency of this crypto market , but there are several others and each one is linked to a different project. It is important to know the project to see if it makes sense to you, so you can purchase bitcoin or any other cryptocurrency , believing in its appreciation.

RISK AND REGULATION

The criptomoedas are a market unregulated in Brazil , namely the CVM ( the body responsible for the control and supervision of the equity) has no relationship with bitcoin. Because it is not regulated, official financial institutions, such as banks and brokers, cannot operate in this market and therefore you cannot buy or sell cryptocurrencies at these institutions.

HOW TO BUY

So how do you buy and sell bitcoin ? You will need an Exchange , which is a company that works like a broker , where customers buy and sell among themselves. You can even buy directly from someone else, but it is extremely risky, because you can pay and the person disappears.

To be able to trade cryptocurrencies , you have to open an account on Exchange , you have to register your bank account and send the money to Exchange and then you can buy the cryptocurrency.

Unlike what happens on the Stock Exchange where there is a centralizing agent and you can buy between brokers, Exchange acts as if it were the Stock Exchange and the broker itself, because you can only trade the assets of those who are there within the same Exchange. For this aspect, it is worthwhile to use the biggest exchanges, in Brazil and in the world.

Also different from what happens on the Stock Exchange, where you buy the asset and it is registered in your custody, in the case of Exchange, there is a risk that Exchange will be hacked and your cryptocurrencies will be stolen. To avoid this possibility the best way is to get your cryptocurrencies out of the Exchange and put them in a digital wallet called Wallet . This Wallet can be in the form of an app, website, flash drive etc.

In order to facilitate this access to the cryptocurrency market, investment funds were recently created to invest in cryptocurrencies. As they are open funds, you can invest in them through your bank or broker and without having to worry about trading the cryptocurrency and keeping it in a Wallet. The disadvantage of these funds is the existence of minimum amounts and the administration fee.

Speaking of risk it is important to remember that bitcoin may rise or fall, it has this risk of volatility inherent in the equity market.

IS IT TIME TO BUY?

Bitcoin has been popularizing for a long time, but in the years 2020/2021 there were some movements that contributed to this, for example, some banks with a more optimistic view on the currency, specific cryptocurrency funds being created and recently the great influence in the market exercised by Elon Musk , founder of SpaceX and Tesla, who addressed the topic of bitcoin on their social networks, started accepting bitcoin as a form of payment for Tesla’s electric cars and claims that the company bought $ 1.5 billion in bitcoins, leading the currency to appreciate and renew its records.

All these facts make the currency more and more known and accepted, this makes the expectation for a greater adoption of the currency to happen and the future of a cryptocurrency comes precisely from its acceptance. A widely accepted currency tends to appreciate, but a currency that is not accepted falls into disrepute.

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