A few years ago, the question “What is Bitcoin?” was on everyone’s lips. While digital assets may no longer be making headlines every day, Bitcoin remains one of the most talked-about and influential cryptocurrencies in the world.

Whether you’re a curious beginner or considering adding BTC to your portfolio, this guide walks you through what Bitcoin is, how it works, and what to consider before investing.

What is Bitcoin?

Bitcoin (BTC) is a digital currency created as an alternative to traditional money. Designed to be a medium of exchange, it can be used to pay for goods and services—without the need for central banks, intermediaries, or government oversight.

Bitcoin is decentralized, borderless, and widely recognized as the most established cryptocurrency in the market.

It was introduced in 2008 by an anonymous figure—or group—using the pseudonym Satoshi Nakamoto. To this day, Nakamoto’s identity remains unknown. The concept was first shared via email with a group of cryptographers and developers—marking the start of what would become a global financial shift.

Key Features of Bitcoin

Here’s what sets Bitcoin apart:

1. Decentralization
   Bitcoin runs on a decentralized blockchain network, where every transaction is verified by thousands of computers (or “nodes”) worldwide. No single entity controls it. This ensures that each transaction is transparent, secure, and tamper-proof.

1. Hedge Against Inflation
   Unlike fiat currencies, which can be printed indefinitely, Bitcoin’s total supply is capped at 21 million coins. This limited supply makes Bitcoin immune to inflationary pressures and positions it as a scarce digital commodity—one whose value could appreciate over time.

1. Universal Access
   Anyone, anywhere, can use Bitcoin. Its open-source blockchain protocol allows anyone to participate—whether as a user, developer, or miner. No gatekeepers, no restrictions.

1. Lower Transaction Fees
   Bitcoin transactions typically come with lower fees compared to traditional financial systems, usually around 1% or less. This makes it an attractive option for those looking to avoid hefty bank or remittance fees.

1. Transparency in Investment
   Because Bitcoin operates on a public blockchain, every transaction is recorded and visible to anyone. Once a transaction is verified, it’s locked into a block and can’t be altered, ensuring transparency and trust.
   
   
   

Blockchain Technology Behind Bitcoin

At the heart of Bitcoin is its blockchain—a public, decentralized ledger that stores transaction data across all connected computers. This eliminates the need for a central authority. Bitcoin’s blockchain uses the SHA-256 algorithm to encrypt and store its data securely, making it virtually tamper-proof.

What is a Bitcoin ETF?

A Bitcoin ETF (Exchange-Traded Fund) is a financial product that tracks Bitcoin’s price, allowing investors to gain exposure to BTC without actually owning the cryptocurrency itself. ETF fund managers typically purchase Bitcoin futures contracts, and these funds can be traded on traditional stock exchanges, making Bitcoin more accessible to conventional investors.

Bitcoin’s Use Today

Bitcoin isn’t just for investors—it’s being used more and more as a medium of exchange. Many businesses worldwide accept Bitcoin payments, whether through QR codes, digital wallets, or touch-screen apps. Online merchants are increasingly offering cryptocurrency payment options, too. And with Bitcoin’s value rising significantly over the years, it continues to attract both investors and speculators alike.

Pros and Cons of Bitcoin

Despite its popularity, Bitcoin has its advantages and disadvantages:

Pros:

• Digital Gold: Bitcoin’s fixed supply and scarcity have earned it the nickname “digital gold.”
• Risk Diversification: Adding Bitcoin to your investment portfolio can help balance risk, as its price movements often differ from traditional assets like stocks or bonds.
• High Profit Potential: Bitcoin has historically delivered substantial returns for early adopters and savvy investors.

Cons:

• Price Volatility: Bitcoin is notorious for its price swings. For instance, its value skyrocketed to $69,000 in November 2021, only to fall to around $15,000 by November 2022.
• Cybersecurity Risks: Cryptocurrency exchanges and wallets can be targeted by hackers, posing potential risks for investors.
• Regulatory Challenges: Many countries are still working on clear regulatory frameworks for digital assets, which can impact market stability and investor confidence.

How to Buy and Sell Bitcoin

Interested in adding Bitcoin to your investment strategy? Here’s how you can get started with Bitazza:

• Sign Up

Register for an account on Bitazza’s website.

• Log In

Log in with your credentials and activate two-factor authentication (2FA) for added security.

• Explore the Market

Head over to the “Market” section to view the current prices of Bitcoin and other digital assets.

• Choose a Trading Pair

Select the Bitcoin (BTC) trading pair you want, such as BTC/USD.

• Monitor Price Movements

Analyze price trends and charts to decide when to make your move.

• Place Your Order

Once ready, click “Buy” and enter your desired price and amount of Bitcoin.

• Confirm Transaction

Review your order details and confirm the transaction. Your Bitcoin will then appear in your Bitazza account.

Conclusion

Bitcoin remains one of the most talked-about and dynamic digital assets in the world. Whether you’re looking to use it as a payment method or a long-term investment, it’s crucial to do your research and understand both its potential rewards and inherent risks. Keep an eye on market trends and global crypto developments to make informed decisions about your Bitcoin journey.

Remark: The views, information, knowledge, and opinions expressed herein are those of the individuals involved and do not represent the views of Bitazza or its employees. Neither this email nor the content presented constitutes investment advice.