Did you know that many crypto experts have predicted that bitcoin will
overtake the us dollar by 2050 well bitcoin is currently the most popular
and recognizable cryptocurrency to date and by 2022 who knows how far it can go
but what's it really like to invest in bitcoin in this video i'll be explaining
how to invest in bitcoin for beginners in 2022 and if you're new to the channel
then hit the subscribe button below for more life-changing content first what is
bitcoin bitcoin is a cryptocurrency and worldwide payment system it is the first
decentralized digital currency as the system works within a central bank or
single administrator the network is peer-to-peer and transactions take place
between users directly without an intermediary these transactions are
verified by network nodes to the use of cryptography and recorded in a publicly
distributed ledger called the blockchain now when it comes to the history of
bitcoin there is some mystery involved bitcoin is generally understood to
having been invented by an undisclosed individual
or group of people under the name satoshi nakamoto and was released as
open source software in 2009 whether a man or a group the founder published a
white paper called bitcoin a peer-to-peer electronic cash system
regarding a new system of electronic money that could be sent anywhere with
no middlemen or centralized agencies but why would a new system and payment need
to be created well to understand why this person or group of people created
this new way of sending money across the globe we have to go back in time it was
2008 and the major financial crisis occurred in the united states the lehman
brothers went bankrupt and other banks and institutions were collapsing
unfortunately there were a ton of people who over trusted the major banks and
financial institutions with their money and lost their life savings when they
saw these major institutions going bankrupt one after another after another
there were many people who were affected by this financial crisis and while most
people were there licking their wounds satoshi nakamoto came up with an idea of
a new system of electronic money which could be transacted over the internet
without any interference from a third party or authority to this day bitcoin
remains an entity that no one person controls nakamoto set up a system that
would be owned by everyone and governed by no one bitcoin is the first
decentralized currency and is arguably the most revolutionary technology ever
when it comes to sending and receiving money across borders today there are
countries where a single transaction can cost more than 200 percent of the local
monthly income transferring money through traditional means is undoubtedly
slow but happens in a matter of minutes with bitcoin now at this point i think
it's necessary to discuss some of the legal political and environmental issues
surrounding bitcoin first bitcoin is not legal in all countries for example in
china bitcoin is strictly prohibited all banks and other financial institutions
are forbade from transacting in bitcoin mining is illegal and exchanges and
initial coin offerings can no longer take place keep in mind that this is
just one country and bitcoin is still legal or at least generally acceptable
in most other countries such as the united states canada australia united
kingdom germany and japan next there are political issues around the world's most
popular cryptocurrency most governments struggle with the lack of control they
have over bitcoin with respect to how they can monitor transactions tax income
and avoid bitcoin and other cryptocurrencies being involved in crime
related activities this is why we're seeing so many governments considering
setting up their own digital currencies that will fall under their own purview
giving them more control and power for tax purposes moving on there are some
environmental concerns around bitcoin and its energy usage right now the use
of energy in bitcoin mining and transactions is equivalent to the total
energy usage of established countries like sweden in fact the energy it takes
to make a single bitcoin transaction is equivalent to the energy it takes to
watch over 90 000 hours of youtube what makes bitcoin attractive for a lot of
people though is that can help them save a lot of money by cutting out the
middlemen such as banks and authorities to transact with their money now in
order to fully understand how this technology works we need to discuss
bitcoin mining so what is actually bitcoin mining unlike traditional
currencies such as us dollars bitcoins are never printed rather bitcoins are
created digitally by a community of people that anyone in the world can
belong to these people are called miners so the next obvious question is what's
involved in mining bitcoins well you need special software and hardware
installed on your computer to participate in mining the software is
free it can be downloaded from the official bitcoin website the hardware
you need to run the software is a specialized asic machine that costs
thousands of dollars people who mine bitcoins get rewarded with the crypto
and the process is automated by a network of thousands of miners spread
all over the world individuals pay for electricity usage but in return they get
new bitcoins every time someone mines them the network is secured by the
miners and once you become part of the bitcoin network your computer
automatically becomes part of it as a result you no longer need banks to send
or receive money in any form from anyone in the world also when mining your
computer runs a cryptographic hash function that produces a 64-digit
hexadecimal number this number is known as a block and when it's produced
through mining it gets added to a chain with all the previous blocks which are
linked together another key element in bitcoin technology is the blockchain a
blockchain is a digital transaction database distributed to all nodes
participating in a network based on the bitcoin protocol in short it's an
electronic ledger that keeps track of everyone's transactions within the
network now that you know the basics of bitcoin technology and its potential to
be a good investment and foreign payment that is you probably want to know how to
buy it safely well fear not i've got you covered in this video first things first
you will want to research bitcoin pricing in its future if you're
considering it as an investment for instance understand the historical
change in the price of the asset regulations around it and how the
technology is set to develop over time another important aspect to research is
where to buy the coins bitcoins can be purchased from people or services known
as exchanges the number one exchange for bitcoin remains coinbase however other
legit exchanges include etoro coin mama blockfi and bisque it's also worth
noting that different exchanges offer certain advantages over others bisque
for example offers more privacy for buyers while coinmama is considered to
be the fastest exchange at this point you now know where to buy bitcoin so
let's talk about the transaction process itself there are two ways to purchase it
the first is by using a credit card and the second is through more exotic
methods such as peer-to-peer exchanges or even from someone who wants to sell
their bitcoins privately people can also buy bitcoin with paypal however the
chargeback fees are extremely high as i said earlier coinbase is generally the
best option for buying bitcoins its interface is simple to use and is fast
if you're buying in bulk i'd say it's worth the investment however there is a
fee involved this can range from fifteen dollars up to five percent of the total
amount as a matter of fact coinbase takes a 3.99 fee on the transactions
executed through its platform there's also a monthly subscription fee for
those who want access to premium features such as buying and selling
bitcoin futures and other financial derivatives you can also use
peer-to-peer exchanges to buy bitcoin and the three most popular are local
bitcoins paxful and cexio local bitcoins as an example of how this method works
matches buyers and sellers who want to buy or sell bitcoins in their country
for cash the platform also allows users to make requests and post ads for
selling bitcoin or paying out bitcoin into local currency there's a zero
percent fee charge for local bitcoins for all the transactions executed
through its platform once you buy bitcoins you'll be eager to move them
onto your wallet for this operation you have to generate a wallet that can be
done for free from the official website another option is to buy a pre-made
wallet from any trusted brand such as coinbase or trezor from the wallets you
can either purchase a pre-loaded wallet or generate a seed and load it with
bitcoins from any of the exchanges the seed allows you to create multiple
wallets from one device which is very useful this method is by far the most
secure and easiest to use the trezor wallet uses two major hardware security
features in order to protect against physical theft and hacking it is a small
screen that shows all transactions happening with your bitcoins as well as
two buttons for confirmation now that you've acquired your bitcoin and have it
safely stored your work is done right not quite once you own bitcoin or any
cryptocurrency for that matter you need to regularly monitor its price
especially if you're going to be a long-term holder as you probably know
bitcoin has a volatile history and every time its price moves up or down people's
excitement or fear may influence their willingness to continue to hold i'm sure
you'll be able to make some good decisions based on research and
perceptiveness in the looming future but just understand that you're not the only
one in the cryptocurrency market fortunately there are a lot of tools
that can help you monitor the value your bitcoin holdings many specialized
websites have been created in order to offer you all the information you need
about bitcoin for example coinbase has an api that allows third parties to
build data applications for users and you can also track bitcoin prices on
bloomberg and yahoo finance now the biggest question we need to answer is
what do you do when the price your bitcoin changes both in the upward and
downward direction well both cases borrow wisdom from traditional stock
investing generally when you invest in stocks when their values decline the
major mistake people make is to panic sell to try and recover as much of their
money as they can this is highly inadvisable when investing in stocks and
the same goes for when you're investing in bitcoin anytime you sell at a loss
you're losing money so your best bet is to take a more long-term approach
because like stocks bitcoin has a history of seeing down periods followed
by up periods of new record highs i think it's prudent to repeat the fact
that you should not invest in bitcoin if you don't know what's going on or you're
in a rush to get rich quick you should be aware that bitcoin is not backed by
any entity and it has no status as an official currency and it's still
experiencing high volatility all this means is that your investments may
disappear overnight and these are the main reasons why some people consider it
a scam and specific countries do not approve of its use if you feel like
you're ready to invest in bitcoin though then go ahead and do it but always
proceed with the general wisdom that you should never invest with money you can't
afford to lose thanks for watching if you want to go
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