Start Bitcoin And Virtual Currency | An Easy-To-Understand Way For Beginners

By James Robert- Nov 21, 2022 15

The price of Bitcoin has risen in 2021, and while the number of people interested in investing in cryptocurrency is increasing, there are some people who want to start cryptocurrency and bitcoin but do not know how to get started. Lots here.

 

Thus, this time we will explain how to start a virtual currency (bitcoin), how to buy it, and recommend the necessary exchanges to buy a virtual currency.

 

How to start virtual currency transactions | Thorough explanation of purchasing procedure

 

Open an account on a cryptocurrency exchange

 

First, let's open an exchange account. There are some differences depending on the exchange, but the steps to open an account are basically as follows.

 

Cryptocurrency exchange account opening procedure

 

      Register your email address on the new registration screen

      A registration email will be sent to your email address

      Enter personal information and submit identity verification documents on the running screen

      A postcard will arrive at your home, so enter the required code

 

This way you will open an account. The e-mail address you created is a free address, such as Gmail, and has no problem.

 

Besides, the following documents can generally be used as identity verification documents.

 

      Driver's license

      Individual number card

      Passport

      Residence card

 

All you have to do is submit one of these verification documents, however, the exchange of available identity verification documents varies from exchange to exchange. Visit each exchange to check the correct information.

 

After entering your personal information and submitting your identity verification documents, an account opening test will be conducted. After passing the test, you will receive the documents delivered to your home. Enter the confirmation number in the document to complete the account opening.

 

Deposit to your account

After opening the account, we will make the next deposit. In general, the following methods can be used as a deposit method.

 

The most recommended is an online banking deposit. Depending on the exchange, "instant deposit" and "quick deposit" have different names, but in many cases, it is possible to deposit 24 hours a day in real-time.

 

Buy virtual currency

 

After depositing, buy virtual currency. Two types of formats can be purchased.

 

      Tradeable format

      Sales office

      Exchange

 

The sales office buys and sells a virtual currency with sellers, but also transacts between users.

 

The sales office has the advantage of being easy to operate and easy to use. On the other hand, there are the disadvantages of high transaction costs due to spreads.

 

On the other hand, exchanges do not have spreads, so they have the advantage of reducing transaction costs. On the downside, the transaction screen is a bit complicated and can be difficult for beginners to use.

 

How much cryptocurrency and bitcoin can you start with?

When you hear about investing, many people hesitate to start because they think they need a lot of money. In fact, you can start investing in $1 to $100 and more cryptocurrencies.

 

When investing in virtual currencies, deposit and transaction fees will be charged separately, but you can further reduce costs if you use the exchange without any fees.

 

If you are interested but scared and can't afford it, you should invest around $10 and see what it looks like.

 

What is Bitcoin, the representative of virtual currency? Explain the features!

 

Bitcoin is a brand representing virtual currencies, and its market capitalization is at the top of all brands. In this chapter, we will explain the characteristics of Bitcoin, a representative of such virtual currencies.

 

The world's first virtual currency

 

Currently, there are more than 7,000 types of virtual currencies in the world, but Bitcoin was the first to be created.

 

In 2008, Satoshi Nakamoto published a research paper. It describes "blockchain payment systems without a central administrator". The paper, produced by Satoshi Nakamoto, caught the eye of other developers. This marks the beginning of the birth of Bitcoin in this world.

 

Then, in 2009, Bitcoin was officially announced to operate in the world and the world's first virtual currency was born.

 

There is a maximum number of issues

 

Bitcoin has a clear maximum issue limit. The upper limit is 21 million, and the number will not increase.

 

As a result, Bitcoin is less prone to inflation and maintains its deficit values.

 

But, as of 2021, all 21 million copies have not yet been issued. It is published little by little every year and is expected to reach 21 million copies by 2040.

 

No administrator

 

The lack of a central administrator is also a major feature of Bitcoin. Currencies are usually issued by the central bank and the government. Thus, it may be affected by the issuer and the price may go up or down.

 

In that case, Bitcoin has no central administrator, so it is not affected by the issuing agency. The price chart moves and the price is determined only by the relationship between supply and demand.

 

Proposed study method for beginners of virtual currency and bitcoin

 

When you start investing in cryptocurrencies, you need to have some knowledge. However, many may be wondering how to study.

 

In this chapter, we will explain the proposed study methods for cryptocurrency novices. Try the following learning methods.

 

Learn while actually trading

This is a very effective way to learn what a cryptocurrency transaction actually looks like when trading. By actually making a transaction, you can get a feeling for what is written in the book and on the site.

 

Especially for those who have difficulty reading books and feel uncomfortable, taking an immersion and trying it for the first time may be a good idea.

 

Learn from books

 

Books are a great way for beginners to learn about cryptocurrency. In recent years, the publication of commentary books on cryptocurrency has increased in proportion to the growing attention to cryptocurrency.

 

Learning from books can be frustrating if it is too difficult, so buying a book is a good idea that is easy for you to understand.

 

Learn on YouTube

The easiest way for beginners to understand cryptocurrency is to learn from YouTube videos.

 

Many explanatory videos related to virtual currency have been uploaded to YouTube, and some of them explain the basics for beginners.

 

Yet, please note that many videos uploaded to YouTube lack credibility.

 

Are newcomers interested in using virtual currency?

 

Many newcomers may be wondering, "What can cryptocurrency be used for?" In this chapter, we will explain how to use virtual currency that newcomers are interested in. The use of virtual currency is as follows.

 

Settlement by shopping

Cryptocurrencies can be used to make real money purchases. You can easily make payments through the Wallet app.

 

Some famous stores can pay with virtual currency. There are still some stores in the United Kingdom and the United States that support virtual currency payments, but it will continue to grow.

 

Remittance means

Cryptocurrency is also very good as a medium of remittance. Before the birth of virtual currency, it was common to use a bank when sending money abroad. But, there are many difficulties in sending money from banks abroad, such as very high fees and a long time to deposit.

 

If you send money in virtual currency, it will be credited immediately and the fee will be significantly reduced, which is very convenient.

 

Donation

Cryptocurrency also has an aspect as an effective way to donate. There are several issues with donating to Fiat currency that is less well known.

 

Problems with donations in legal tender

      I don't know how to use donations.

      I don't know if it's safe in the hands of those who need it.

      High fees

 

In that case, if you donate using virtual currency, you can solve all these problems at once. In fact, it is expected to be fully operational. In some cases, NPOs and the Red Cross have already accepted grants using Bitcoin.

 

Financing

Cryptocurrency is also a very convenient way to raise funds. It was common practice for corporations to sell stocks and raise funds.

 

But, with the advent of cryptocurrency, companies issue their own tokens and investors use cryptocurrency to buy tokens.

 

If you own such a token, you can use the services and products of the issuing company, or you can make a profit by selling it.

 

Platforms for app development, etc.

 

Cryptocurrencies can be used not only as a transaction but also as a platform for application development. Since virtual currency is created using new technology, it is possible to create apps and systems using that technology.

 

There are other virtual currencies that can be used as a platform and they are expected to be used for business and government.