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How To Get Some Bitcoin Before The Price Skyrockets.
"People are underestimating bitcoin....it has great potential left"— Peter Thiel on Bitcoin
Why You Should Care About Bitcoin.
An investment of just $100 a year ago you would have generated a profit of about $1,500 at the end of the year. That is a growth rate of %1,400 which officially makes bitcoin a better investment than any blue chip company in the world. Strange as it may sound this astronomical growth is mere peanuts for people who invested in bitcoin five year ago when it was still in its infancy. If you had been as smart as these guys and invested that same one hundred dollars then today it would be worth over one million dollars.
There is no reason to feel bad for missing the wave because despite its immense price volatility the price of bitcoin is projected by some analysts to rise as high as a million dollars within the next decade or so. The key is to properly position yourself so you don't miss the wave this time around, and that's what this article is all about.
How To Buy Bitcoin Easily.
Step 1. Get a Bitcoin Wallet.
As the name suggests a bitcoin wallet is a way to store your bitcoin safely. Getting one is relatively straight forward, just sign up for a wallet on sites such as blockchain and provide a few personal details about yourself.
Step 2. Get On a Bitcoin Exchange.
Exchanges are like a market place where different buyers and sellers meet to conduct business. Binance is the fastest growing exchange because they have a great mobile App that allows you to trade from pretty much anywhere in the world. Bittrex is awesome for people who are very conscious about the law. It is compliant with all regulations and tries to keep criminals and frauds from their exchange.
Step 3. The Devil is in The Details.
Different exchanges have different costs of doing business and it is critical that you work to keep the costs of transaction as low as possible. This is especially true for people who day-trade bitcoin.
How to Mine Bitcoin.
The source of all bitcoin in the world comes from what some people call `mining`. The mysterious anonymous creator of Bitcoin, Satoshi Nakamoto designed an algorithm that allows for bitcoin to come into existence through the solving of complex mathematical problems that requires computational power. Don`t let this fancy talk intimidate you, all this means is that if you buy a powerful computer and connect it to the internet then you too can start mining for bitcoin yourself. The only drawback to this is that it requires significant starting capital and technical know how.
step 1. Get The Right Hardware.
The rate at which you mine bitcoin is measured in hash rates which is just a fancy way of estimating the number of calculation your hardware can crunch per second. Unfortunately most personal computers today lack the computing power necessary to develop a high enough hash rate to make bitcoin mining worthwhile. The only possible way to use an ordinary PC to mine bitcoin is to upgrade it with powerful graphics card such as those made by Invidia for gaming purposes.
A better alternative to this would be to buy a Field Programmable Gate Array(FPGA) circuit fitted with several chips specifically designed for bitcoin mining. This is capable of enhancing your computing power to several hundred mega-hash rates per second.
The best option for serious miners is to get ASIC miners because they are specially designed for bitcoin mining only. ASIC miners are in very high demand and are often sold out which means you need to pre-order a miner weeks or even months in advance.
Step 2. Get a Cheap Source of Power.
A simple law of economics states that if the cost of production exceeds revenues then your business automatically make a loss. This law applies harshly to bitcoin mining cause if the cost of electricity is so high that it exceeds the value of bitcoin mined then everything you are doing is a waste of time. One way to lower costs is move to places where power costs are lower or alternatively you can find naturally cool environment so that your cooling fans don`t have to consume as much power.
Step 3. Constantly monitor your mining equipment.
If your equipment overheats it could easily get destroyed or even worse start a fire in your home or business premises it is therefore prudent to have a fire extinguisher lying around and to keep a keen eye on your equipment cause it`s pretty expensive to replace.
Learn How To Mine Bitcoin.
Buying Bitcoin if You Don`t Live in The USA.
For people who live in Africa or the Middle East it can be a little more difficult to buy bitcoin than for Americans. Luckily there is a solution to this problem in the form of a site known as local Bitcoin which allows buyers and sellers to use payment systems more easily suited to their local region for example mobile payment.