Interesting

What is bitcoin in simple words - is it possible to become a millionaire using cryptocurrencies?

Good day!

Now, only the lazy is not talking about Bitcoin. Even on the first channel no, no, and they will show some material ...

To be honest, I am also often asked about him, and, surprisingly, often people aged ☺. Those. interest in this topic is quite extensive, and therefore it was decided to publish several articles on this topic.

This post will be about what cryptocurrencies in general and BITCOIN in particular are (also called: bitcoin, btc, cue ball, cue ball and other derivatives) ... I will try to present all the material in a simple and accessible language in the form of the most popular questions that are asked by absolutely everyone who begins to understand this topic.

So...

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5 most important questions about Bitcoin

❶ What is Bitcoin? If this is money, then why can't you pay with it in the store?

Cryptocurrency (in English - "cryptocurrency") is a digital virtual currency that is protected by cryptography (that is, roughly speaking, it is securely encrypted by modern technologies. For cryptography, see Wikipedia).

Its most important difference from all other currencies that came before it (rubles, dollars, etc.) - it is very reliable, fast, not controlled by anyone (not a single country in the world). In addition, it is decentralized: i.e. there is no center that is responsible for it and prints it (such as rubles). This is its pros and cons ...

Many consider Bitcoins to be digital gold ...

BITCOIN it is one of the most popular and well-known cryptocurrencies, it can only be used on the Internet. Of course, you can't buy something for it in a regular store (at least in Russia today) - tk. according to our laws, you can only pay in rubles.

In addition, in our country, this currency has not yet gained the necessary popularity, but, for example, in Japan, Bitcoin was legalized and you can make purchases in many stores (in large cities).

In general, I would like to immediately note, despite the abundance of new words - working with Bitcoin is no different from working with rubles in the same QIWI wallet. You can also see how many Bitcoins you have on your wallet, you can also send them to the desired addresses, use exchangers for input / output / exchange for other currencies: rubles, dollars, etc. (by the way, rubles, euros, dollars are called fiat money).

Where do Bitcoins come from, who prints them?

Nobody prints them, and there is no one center (or a computer on the network) that produces them. Those. the base of all Bitcoins and their movements is located on many computers in the network (and is constantly synchronized between different PCs). Those. to fake them is almost impossible!

Bitcoins are mined by means of complex mathematical calculations on powerful computers. (now on a home PC it makes no sense even to try to get bitcoins, because you need very powerful hardware with a good video card, and not one (which is why, now gaming video cards have grown significantly in price)) ... By the way, the operation for carrying out these mathematical calculations on a PC for mining cryptocurrency is called mining (more on Wikipedia).

Today, the easiest way to get hold of Bitcoins is to buy them (more precisely, a certain part of them, since 1 bitcoin now costs about $ 17,000, not everyone can afford it ☺). You can buy even a very small part of one Bitcoin, for example, 0.00000001 BTC (this is 1 Satoshi (as the ruble has a penny, so bitcoin has Satoshi, i.e. its minimum part, less it is not divided)).

Why buy Bitki at all if you can't buy anything in the store with them?

Maybe I’ll answer stupidly, but nevertheless: people also don’t go for matches or for potatoes with gold, silver, or any shares. Nevertheless, many people buy them. It's the same with Bitcoin:

  • firstly, by transferring part of the money into cryptocurrency, you diversify your funds (ie, you reduce your risks - it has long been known that "do not keep all your eggs in one basket");
  • secondly, Bitcoin has only been growing in price over the past few years, which means it can be profitable (why not replace a tab in a bank?);
  • thirdly, you can buy something in another country or make a transfer anywhere in the world in a matter of seconds (and no sanctions will block the transfer)!

However, if you look at the value of Bitcoin not by years, but, for example, by days, then it is very volatile (i.e. changeable). In one day, Bitcoin rose or fell in price, sometimes by tens of percent! Therefore, it is not a fact that by buying a cryptocurrency, you will increase your capital - you may lose ...

Therefore, there is one and very important rule (especially for beginners): do not invest all your savings in Bitcoin (at least until you more or less figure out how and what works there).

If you are already so fired up by buying a cryptocurrency, take a small amount for yourself (which you don't mind losing) and buy Bitcoin for it: then try to transfer it from wallet to wallet, see how and what works, figure it out! ..

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❷ Where can I find out the Bitcoin rate, how much does it cost?

As I said above, the Bitcoin rate is constantly "jumping" (after all, its stability is not supported by any state), and therefore, before any operations with it, it would be nice to know its rate (the average cost for most exchanges where you can buy it). Below are some of the best sites on this topic (in my opinion).

//coinmarketcap.com/all/views/all/

This site is notable for the fact that you can find almost all cryptocurrencies on it, and not just Bitcoin (well, maybe there are only little-known and recently appeared ones). Because it is in English, I will decipher some of the columns (see the screen below):

  1. Name (Bitcoin) - the name of the cryptocurrency in Latin in the original;
  2. Symbol (BTC) - how it is shortened (only abbreviations are often used on exchanges where Bitcoins are sold);
  3. Market Cap ($ 289,055,896,004) - market capitalization (how much money is invested in this cryptocurrency);
  4. Price ($ 17,221.2) - the current value of 1 coin (1st Bitcoin);
  5. Circulating Supply (16 784 887) - how many coins are in circulation in total. The higher this number, the generally cheaper one coin is;
  6. Volume (24h) - what is the volume of trades in 24 hours;
  7. % 1h,% 24h,% 7d - percent of the change in the value of the cryptocurrency for 1 hour, for 1 day (24 hours), and for 7 days. Naturally, the higher the green percentages, the better you are (if, of course, you bought a specific cryptocurrency ☺).

All Cryptocurrencies - all cryptocurrencies

Also, by opening any of the currencies on this site, you can find out more detailed information about the dynamics of changes in its value, see the chart, find out the exchanges where you can buy it. In general, a lot of useful information, I recommend it!

//bitinfocharts.com/ru/markets/

This site is in Russian, it is easier to navigate here. Here, in my opinion, the information is presented more clearly: you can immediately see the cost of the cryptocurrency in Bitcoins and dollars, there is a mini-chart of the rate, when you hover, a list of exchanges and the price are shown. Also, in the top menu, you can choose in which currency to show the price of cryptocurrencies (for example, dollars can be replaced with rubles, or euros).

Cryptocurrency rates for today

By the way, this site also has grouped lists: the newest cryptocurrencies, the most popular, etc. Convenient!

//ru.cryptotops.com/

This site allows you to view all the most popular cryptocurrencies, depending on their capitalization (moreover, prices for coins are shown in rubles, dollars, and bitcoins, which is very convenient!). Also, the price change as a percentage for the last 24 hours and 7 days is very clearly displayed here. I also recommend bookmarking.

CryptoTops - list of the most popular cryptocurrencies 2018

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❸ Where to buy Bitcoins and where to store them?

On the one hand, there are many options, on the other, there are certain difficulties ... I will give below several relevant exchanges and exchangers that will help solve this problem (along the way, analyzing them, I will point out the difficulties and their solution).

👉 Remark!

How to buy bitcoin for rubles with a bank card (cheap, with a small commission from 1% ☺) - step by step instructions

//yobit.io/

A very convenient exchange for beginners. First of all, after registering on it, you can immediately deposit rubles or dollars using QIWI (or Payeer, AdvCash, Perfect Money, Capitalist) and buy Bitcoin. In addition, while you have a small amount, it is not necessary to store Bitcoin in a separate wallet, you can leave it on the exchange.

I also note that there are quite a few different cryptocurrencies on the YoBit.Net exchange, there is a tube chat on the right (where you can be nudged what to buy and what to sell). In general, the atmosphere is conducive to trade!

Important!

Nevertheless, over time, when the amount becomes significant for you, I still recommend storing Bitcoins on special. wallets. You can find out about this:

- on the official Bitcoin website - //bitcoin.org/ru/;

- on Wikipedia on Bitcoin - //ru.bitcoinwiki.org/wiki/.

Below I will consider how to buy Bitcoin using an example:

  1. after registering on YoBit.Net, open the "Balance" section;
  2. then enter RUR or USD in the search box;
  3. opposite the desired wallet, click the "Plus" button (ie, replenish);
  4. select the desired payment system and enter the amount (see screen below).

YoBit.Net - USD balance top-up

After replenishing the balance, for trading, you need:

  1. open in the left menu of the "Market" section the "USD" tab (or "RUR" - depending on what you used to fund your account);
  2. a list of cryptocurrencies that can be bought for USD or RUR will appear in the "Market" - select, for example, BTC (ie Bitcoin);
  3. then you will see the stock chart, below it there are two small windows: buy and sell. Enter the amount for which you want to buy, the amount of currency you are buying, and press the "Buy" button (in general, there are some subtleties here, since the price is not constant - this is not a store, but an exchange В. In general, practice .. .).

YoBit.Net - buying Bitcoin (BTC) for dollars

Important!

You may find the YoBit.Net exchange rather complicated, but this is at first glance. To trade cryptocurrency - you cannot do without some kind of exchange (or rather a couple). On many exchangers, the price of Bitcoins is several times higher than when buying on the exchange.

In addition, I want to add that if you disassemble in one exchange, you can easily navigate in all the others.

//exmo.me/

This is another cryptocurrency exchange. It is in many ways similar to the previous one. True, there are not many other cryptocurrencies here, except for Bitcoin, but in some cases it is cheaper to withdraw / deposit funds (rubles, dollars).

In addition, the quality of an exchange is not always judged by the number of coins alone. In general, I advise you to try both the one and this one, which one you like best - and choose one. Moreover, commissions for input / output are constantly changing everywhere ...

EXMO - 17201.04 ▼ BTC / USD

//www.bestchange.ru/

But this is no longer an exchange, but a monitoring of exchangers: on the site you can choose the direction of exchange (for example, QIWI to Bitcoin) - and you will see a list of the most profitable exchangers that carry out this operation. Everything is simple here: choose the exchanger you need - see the rate (there is a constant price), if you agree to it, then carry out the exchange. No stock trading ...

By the way, this monitoring will come in handy more than once or twice with different exchange options, I recommend adding to your bookmarks!

Exchange QIWI RUB to Bitcoin (BTC) - where is the best exchange rate

I will add that all exchangers on BestChange are thoroughly checked, and in case of negative user reviews on their work, they can be excluded. Therefore, as a rule, problems with the exchange do not happen (for 4-5 years of work, having made hundreds of exchanges, I encountered delays in transfers a couple of times (and then, they were warned about them in advance ...)).

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❹ And besides Bitcoins, are there other cryptocurrencies? Maybe buy them?

Yes, there is (I think this question has already been partially sanctified in the text above). Some of the most popular are: Bitcoin, Ripple, Etherium, Bitcoin Cash, Cardano, Litecoin, NEM, Stellar, TRON, IOTA, Dash, NEO, EOS, Monero, etc. (see screen below).

The current list of the most popular cryptocurrencies today can be found here: //ru.cryptotops.com/

CryptoTops - 14 Most Popular Cryptocurrencies of Early 2018

To describe each of them - I think it makes little sense (especially, a huge article will be required, and besides, I have a very vague idea of ​​many coins ☺). Better to talk about whether it is worth buying something other than Bitcoin or not ...

In general, the question is quite philosophical: to buy or not to buy? ..

Pay attention to the percentage of change in the value of the currency: many cryptocurrencies have grown over the past 7 days by 20%, by 50%, some by 438% (and some little-known ones - by 2000% or more in general). If we compare it with ordinary bank deposits at 5-10% per annum - then in general, it’s like space!

BUT! Please note that some cryptocurrencies, on the contrary, fell in their price by 50 ÷ 80% and more. Imagine that you can easily lose some of your hard-earned money ... Choosing the right cryptocurrencies that will grow in price is not the easiest thing (and downward price changes are very pressing on your nerves, I tell you ☺).

I would still proceed from the amount that is not a pity to lose, and which will not harm ordinary life and family. Moreover, do not invest all your savings, and God forbid, take loans or invest borrowed funds (at least until you figure it out)! Everyone will have their own amount - so try to take a chance on it, try to be a stock analyst.

By the way, some cryptocurrencies can increase in price by 20-30 times (and more) even in a month! If you correctly and successfully invest a relatively small amount of 3000 rubles. (for example), you can earn several average salaries in Russia in a month! And imagine, you will successfully invest the earned this amount again? It's hard to imagine the size of your profit ...

So, not always everything depends on the amount - much depends on the analytical mindset, endurance, out-of-the-box thinking and luck. So, go for it! To become a millionaire - today's situation gives everyone!

👉 Remark!

Another article of mine on whether it is worth buying Bitcoin at all (reflections and a philosophical approach).

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❺ If I buy cryptocurrency - will I earn, or is it all a fraud, a pyramid?

I partially answered this question above. Maybe you will earn and become a millionaire (maybe even a dollar one ☺), or maybe not, or maybe you won't get anything at all ...

Some, those who bought Bitcoins in 2009-2010-2011, became millionaires - after all, since that time, Bitcoin has grown hundreds of times in price! (how I regretted that I had not spent on it at that time ☺, although I read it then, I thought it was some kind of nonsense ...). So that it is quite possible to make money.

Now about the criticism that is being poured on cryptocurrency ...

Many experts say that Bitcoin will eventually cost $ 50,000, $ 100,000, and even a million dollars! Other experts have a different point of view, they say that this is another pyramid, created to make money from gullible people.

I am definitely not ready to answer this question, but I will give my thoughts below ...

  1. pyramids usually do not solve any problem. Bitcoins and other cryptocurrencies allow solving financial problems: if we develop this technology, then soon, perhaps, the number of banks, lawyers, economists, accountants required by the country can be divided by 10 of those available today (or maybe by 100 ☺) ;
  2. usually, many world-famous mathematicians, engineers, programmers do not work on pyramids (as they do with cryptocurrencies);
  3. many countries have already begun to legalize cryptocurrency (Japan, Belarus, in some places in the European Union, laws are being prepared in the USA, Russia and many other countries);
  4. many billionaires, international companies, corporations are starting to work with cryptocurrency.

Summing up, I personally believe that the future belongs to the cryptocurrency (I'm not talking specifically about Bitcoin, Ether, or other coins now, I'm talking about technology ...). This new technology makes life easier, better, frees some people from bureaucratic work, and directs them to creators. This means that the development of technology will undoubtedly go forward (and it will be Bitcoin, or something else - I don't know ...).

No wonder, many countries are thinking about issuing their own cryptocurrency (as you, for example, if it comes out cryptoruble ? Recently news flashed, maybe they will think of something ☺).

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By the way, I wish you all a Merry Christmas.

Additions on the topic are welcome ...

Good luck!

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First publication: 07.01.2018

Correction: 02/10/2020

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