Bitcoin effectively hits the stock market – cryptocurrency basics in progress.

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Bitcoin, the world’s most popular cryptocurrency, has been exciting investors and those interested in capital markets for years. It’s no wonder, given that from March 2020 to its latest peak in April 2021, its value has skyrocketed 20-fold. But is it still worth investing in bitcoin? If so, what do you need to know about the factors that alter its growth rate and temperament to venture into crypto? Read on to find out, as we’ve done our research on the subject.

Investing in Bitcoin – index:
Bitcoin – What You Should Know
What is the status of bitcoin in reality?
How to invest in bitcoin?
Why is Bitcoin so volatile?
Bitcoin Exchange Rate – What Else Can You Expect?
What is Bitcoin
Many cryptocurrencies, with Bitcoin at the forefront, have pushed the boundaries of business into uncharted territory. At first, crypto was considered to be devoid of real value, ephemeral and prone to manipulation. A bosnia and herzegovina whatsapp number database token of an illegal nature. It was just a silhouette behind which would-be tycoons hid, launching themselves into a business that was undoubtedly a success.

By now, everyone knows that crypto’s value comes from its ability to provide processing power that enables various calculations , called “mining” in the jargon. Its prices fluctuate, but some factors such as the cost of electricity, stock market speculation (like Elon Musk’s) or Chinese market resolutions have made it predictable enough to learn and join the party.

For some businesses, it is a way to expand their customer base and win the good graces of BTC (bitcoin) holders, for example, by supporting their development and accepting it as a means of payment for their products .

What is the status of bitcoin in reality?
The market value achieved by bitcoin is largely due to its limited circulation – no more than 21 million units will ever be “mined”. Mined because each new BTC appears as a reward for solving increasingly difficult mathematical problems – this is done by specially prepared computers called miners , most of which until recently were located in China (not least because of the lower cost of electricity, which they consume quite a lot).

Of course, it is not just its uniqueness that makes BTC have such a price, after all, there is no shortage of cryptocurrencies with even smaller circulation, but whose capitalization is far from that of Bitcoin.

It enjoys the trust that comes from being the first cryptocurrency on the market , which is also supported by a very high level of security , achieved thanks to the Proof of Work mining system , among other things, as well as a high Hash Rate , which makes attacks on the network virtually impossible (not financially viable).

Bitcoin has gathered hordes of acolytes, further driving demand for this cryptocurrency in the market and driving its insane price up. The recognition of BTC as the official currency of the Central American nation of El Salvador was also a big surprise, also ennobling it to some extent.

How to invest in bitcoin?
Investing in Bitcoin is a little different from investing in traditional financial markets. Part of the difference comes from the way you buy and store this cryptocurrency. Instead of traditional brokers, you deal with exchanges, the vast majority of which are not regulated by financial agencies.

This creates additional investment opportunities, but also exposes you to certain dangers – because if the exchange collapses, the deposited funds are irretrievably lost. This is why bitcoin holders should always remember to store their funds in a wallet – preferably a hardware wallet, locked with super-secure keys to protect against cyberattacks targeting values ​​stored on the blockchain.

Before depositing funds, always check that the exchange you choose to invest in bitcoin has good reviews, credibility and, preferably, is supervised by a regulator.

Before investing in cryptocurrencies, keep in mind that the exchange rate of Bitcoin fluctuates quite a bit . For more experienced users, drops of 50 or 80 percent are not surprising, but for people who are just starting their crypto adventure, this can be very stressful and lead, for example, to ending the investment prematurely – leading to a loss.