Since the start of the global pandemic in 2020, people worldwide have seen a drastic reduction in job availability and security. Amidst the chaos of quarantines, many of us have found ourselves hard up for work, bored at home and looking to technology to keep us entertained. It’s not all doom and gloom, though. For some, the dim light emanating from computer screens, laptops, and handheld devices has turned into a light at the end of the tunnel. Many people have been able to turn this time at home into a full-time income-earning opportunity by trading in Bitcoin.Before we take a look at the how-to trade, let’s take a look at what Bitcoin is.
What Is Bitcoin?
Bitcoin is seen by many as the grandfather of cryptocurrencies, the first of its kind. Created by a developer, or possibly a group of developers, working under the name Satoshi Nakamoto in 2009, Bitcoin was the beginning of a new era of decentralised virtual currency and blockchain technology. Bitcoin was created to lower fees on transactions and operate in an unregulated space. Unlike FIAT currencies, Bitcoin is not a physical form of money that governments or banks back. Bitcoin is more like a digital file, and there is a transparent, public record kept of all transactions made using it. When transacting using Bitcoin, the transaction is verified using a large amount of computing power. You can think of Bitcoin as digital cash.
How to Buy Bitcoin in the UK
Next, let’s take a look at how to buy Bitcoin in the UK.
The first step in the process of buying Bitcoin is to choose a reputable service provider or exchange. Our top three picks for purchasing Bitcoin in the UK are:Coinbase: A safe and simple way to buy Bitcoin in the UK. The company is FCA-approved and holds an e-money license. This approval gives investors peace of mind in knowing that they are investing with a legitimate enterprise. Their transaction fees are set at a low fixed rate of 0.5%, and deposits are easily made using fast payments.CEX.IO:Launched in 2013, making it one of the more established Bitcoin buying platforms. They conveniently offer multiple payment options to fund an account and are a reputable platform in the UK. Their fees are reasonable, and they allow Bitcoin to be sold to debit and credit cards.Binance: Launched in 2017, the company has gone from strength to strength ever since. They are regarded as the largest crypto trading platform with the highest trading volume over 24 hours. Users can easily fund their accounts using a debit or credit card. The platform charges a spot trading fee of 0.1% and an instant trading fee of 0.5%, withdrawal fees are charged according to Bitcoin network charges. Binance is one of the most transparent trading platforms available.
Step two is registering with the platform. This process differs slightly from platform to platform but is mostly self-explanatory. After choosing the best place to buy bitcoin UK users will need to provide all the necessary details to sign up. Some platforms have an extensive process of identity verification which can feel time-consuming. However, it’s important to note that this means more security for the user. Once this is done, it’s vital to set up security protocols like two-factor authentication. Users will then need to fund their accounts using the available methods and wait for the funds to clear.
Before initiating a purchase of Bitcoin, it’s crucial to do some research. Reading a few of the many daily articles predicting performance and looking at the daily charts can be very helpful. Buying in when Bitcoin is at its peak and due for a drop will result in a loss on the first day. Far better to be prepared, wait for an opportune entry point, and then buy some Bitcoin.
How Does Bitcoin Work?
At the most basic level, Bitcoin is a digital information file. When purchasing Bitcoin, this information gets stored in a virtual wallet. Bitcoin owners can access their wallets using their phones or computers. They can also transact with other Bitcoin owners and institutions that accept Bitcoin as a method of payment using these wallets. These peer-to-peer transactions are instant.When transactions are made between these wallets, the digital currency is sent from one to the other using blockchain technology to verify the transactions. Every transaction receives a 64 character TXID for security and tracing. This is very useful to prevent people from fraudulently spending coins they don’t have, making imitations or undoing other people’s transactions.
Can Anyone Buy Bitcoin?
Bitcoin has become a valuable commodity, currently valued at around £33 438,00 per coin, more than most people can afford. Fortunately, there is no need to buy a whole Bitcoin at once. The smallest portion of a Bitcoin that people can buy is called a satoshi or 0.00000001BTC, which costs just £0.00033, making investing in the cryptocurrency accessible to everyone.
Is Bitcoin Safe and Secure?
Because every transaction is recorded in a public ‘ledger’, producing fakes or copies is very difficult. However, there are a few concerns around cryptocurrency that everyone should be aware of.
When buying Bitcoin, it needs to be kept safe. Online Bitcoin wallet providers need to be very secure as they are at risk of hacking attacks, so choosing the right one is imperative. There should be extremely high-security measures in place for access like eight-character mixed passwords and two-factor authentication.
People can store their Bitcoin on a separate drive, but these can be lost, damaged or, in some cases, accidentally thrown away. Remembering the passwords here is also very important.
The value of Bitcoin can fluctuate wildly, and it has been known to lose half its value in an instant. Investors need to be prepared to ride these lows out and learn how to capitalise on these fluctuations. The learning curve here can be very steep.
Bitcoin offers an opportunity for those of us willing to learn how buying and selling cryptocurrencies work. Bitcoin offers exciting market movement and growth, which investors can tap into. The fact that we can do this remotely from anywhere in the world sweetens the pot even more!