In this digital age, it’s not surprising that cryptocurrencies like Bitcoin will develop. Like money in the real world, you can buy goods and services with cryptocurrency. Bitcoin is the most popular type of cryptocurrency all over the world. Keep reading for a quick guide on how to use or buy BTC.

What Is Bitcoin and How Does It Work?

Today, you can find and use over 4,000 types of cryptocurrencies. For this guide, we’ll focus on the first type of cryptocurrency that came into existence. That is Bitcoin.

Before we can understand what it is, we should learn about its history. Its creator is Satoshi Nakamoto, who "mined" the first Bitcoin on January 3, 2009. This was also when the BTC network came into existence.

As you can gather, Bitcoin must get mined first. In the mining process, you need a powerful computer to work out unbelievably difficult sums. As your computer does this, you’d eventually find a bitcoin.

However, mining for bitcoins is no walk in the park. Most people wait a long time before they find even a single bitcoin from their expeditions. You may even end up spending more on electricity and your computer than what you'll get from it. If you want to earn bitcoins without investing in a computer and time, you can buy bitcoins instead.

Now that you know where new bitcoins get created, let's find out how Bitcoin functions. As a type of cryptocurrency, it works a lot like real money placed in your bank account. This means you can use BTC to afford goods and services. You can also receive bitcoins as payment for goods and services that you sell.

How to Buy Bitcoin

Do you want to see what it’s like to use Bitcoin? Or do you want to start using it right away for your transactions? Below are the various steps you can use to get or collect bitcoins.

If you can convert your bitcoins into real-world cash, you can also do the opposite of that. The solution is to buy BTC. If you want to buy Bitcoin, consider going to exchanges like Coinbase, Kraken, and Gemini. These exchanges let you buy, sell, and hold cryptocurrency.

Opening a cryptocurrency account is a lot like opening a brokerage account. This means that you’d have to provide a funding source and verify your identity. You’ll also need a digital wallet to store your bitcoins in.

If you’re looking for a trustworthy platform where you can use, buy, and sell BTC, visit paydepot.com. The website offers crypto ATMs for convenient and quick cryptocurrency transactions.

Benefits of Using Bitcoin

Why should you invest, like many others are now doing? There are many reasons why Bitcoin has grown in popularity since its inception. See our list of these reasons below.

You Can Earn from Making Investments on Bitcoin

One big reason to buy into Bitcoin is that it has a potential for high returns. The price of Bitcoin over time can swing as high as $28,990. However, keep in mind that the price can also cause big losses because of its high volatility.

There are various ways to invest in Bitcoin. You can use the buy-and-hold strategy. This is when you buy bitcoins and keep them long-term. You wait until the BTC price is as high as can be. Then, you sell your bitcoins up to 5-10 times their initial prices.

Another strategy is to buy and sell bitcoin after a price rally. For this strategy, you don’t need to wait too long. You’ll only need to wait until its price rallies or increases past the initial price.

It Allows You to Make Discreet Transactions

Another advantage of buying or paying with BTC is that you can use it to make anonymous purchases online. You won’t leave a trace, like personal or banking information. It’s the online equivalent of making cash-only purchases.

You can choose to publish specific data during transactions if you need to be transparent. Also, this discretion doesn’t mean that Bitcoin transactions are truly anonymous. It just means that your transactions are far less likely to get traced back to you. Compared to other forms of payment, BTC transactions are practically traceless.

Low Transaction Fees for International Payments and No Banking Fees

Often, you should pay your banking fees whenever you withdraw from your account. And though they often come in small amounts, banking fees can accumulate and become significant sources of expense. The good news about using Bitcoin is that it doesn’t need to take any banking fees from you when you cash out.

There are a variety of other benefits that are also related to this point. With Bitcoin, you don’t need to maintain a balance in your cryptocurrency wallet. This also means that it won’t look for overdraft charges, returned deposit fees, and more.

The catch is that Bitcoin will still collect fees from international payments. It will still collect a transaction fee for each deal you make using BTC. However, these transaction fees are often kept low.

Enter the World of Cryptocurrencies

Getting into the world of cryptocurrencies may seem difficult and complicated at first. Keep learning what you can about it, and you’ll master using Bitcoin in time.