Bitcoin is great, whether you’re a fan or not, accept it. If you still don’t know what Bitcoin is, let’s help you out that cave you’ve been living in all this time. Yes, that’s fresh air you’re finally smelling, and yes that vintage pong is coming from you.
So why is Bitcoin so great, you ask, well firstly you can use it universally, no matter where you are; it’s not limited by nation or any organization (we’re looking at you, EU). However, it is a very new concept when compared to the currencies we already know, which makes a lot of people uneasy when deciding whether or not to invest in it.
We’ll jump straight in and answer the most common questions about Bitcoin.
Do I need to be in Bitcoin?
Short answer: Yes, you should.
Long answer: Bitcoin’s necessity varies depending on different factors like your country’s inflation rate and currency stability, your hate for taxes, your necessity of privacy whenever performing monetary transactions, and generally your wish to be on the vanguard of economic evolution.
Bitcoin is used to offer a way to invest your money and protect it from inflation since odds are you can sell it for more than what you initially spent.
Also, it works no matter where you are as long as you find someone who’s willing to trade with it, which can get a lot easier than it looks, seeing as how people these days want Bitcoin as much as Arsenal fans want Wenger out.
So, if you live in a country where inflation rates are rampant or where your currency is falling short compared to others, then you should start investing in Bitcoin, my friend.
How much do I really need to make it worth it?
Right now, BTC sits at around $4,500 USD. So it will prove to be a fairly big budget for investment.
But we’ll be honest, it’s hard to predict. Back in 2010, it was priced at around $12, and $1,500 starting this year so there’s a chance that it could go either up or down in the following years. Who knows…what will you have for breakfast in two month’s time? Well there you go, we don’t know what the future holds. Terrible example but you get our drift…
So, our suggestion would be to invest little by little, even as low as 0.01 BTC (and lower) can be profitable in the long run.
Which apps should I use?
There are several apps you can use to make it easier to work with Bitcoin: price-checking apps (like Bitcoin Checker), finance tips-giving apps (like Blockfolio), analytics apps (like Cryptonator which allows to convert prices of several cryptocurrencies as well as giving information on how each did every month) and of course your wallet (Mycelium being one of the best ones today) where you actually store and interact with your bitcoins. Go Ape with those Apps.
How do I actually use my Bitcoins?
This can get tricky as it’s pretty much the same as asking “How do I use dollars?” But nevertheless, this Bitcoin for Dummies guide wouldn’t be complete without this segment so let’s go through each step from getting your bitcoints to spending those bad boys:
- Acquire a bitcoin wallet. This can be done by downloading the app through any reputable app-store.
- Have your Bitcoin Address, which works like your e-mail address or bank account info: you give it to someone who’s going to send you bitcoins, easy.
- Acquire Bitcoins. You can do so through mining; however, this can be too expensive and long-term oriented. So, the best way to do so for the average person is to buy them in Bitcoin exchange pages (such as Bitstamp).
- Select a payment method after you have reached someone willing to sell you bitcoin. Here you have two options: reversible payments (Paypal, credit card, etc) will be much expensive due to higher fees, and irreversible methods like wire transfer. You can use Coinbase, which allows you to link your bank account to your Coinbase account, and make it much easier to purchase Bitcoin.
- Spend them. Use your Bitcoin in stores that accept Bitcoin as payment, or you can wait until Bitcoin prices go up again and sell them the same way you had your bitcoins sold to you.