Meta descroption: This guide explains what Bitcoin is, how to buy Bitcoin (BTC), the reasons to invest in crypto, and the schematics behind the blockchain and cryptocurrency
Bitcoin (BTC) is a peer-to-peer digital currency launched in 2009 by Satoshi Nakamoto. Its goal, as explained in the whitepaper, is to allow online payments between two parties without the need for intermediaries like banks, giving people control over their money. Satoshi Nakamoto is a pseudonym used by the creator or creators of Bitcoin. “He” left the project in late 2010, leaving the community to work on the cryptocurrency.
Bitcoin is the first successful implementation of the cryptocurrency concept initially described by Wei Dai in 1998 on the cypherpunks mailing list. Dai outlined cryptocurrency as a new type of money that would use “cryptography to control its creation and transactions.” B-Money and BitGold are examples of pre-bitcoin cryptocurrencies that were ultimately unsuccessful.
Since Bitcoin’s launch, alternative coins (altcoins) have emerged attempting to improve on issues such as scalability. BTC is the top cryptocurrency by market capitalization, and there can only ever be 21 million Bitcoins. Furthermore, 1 Bitcoin is divisible by 8 decimal places. The smallest unit, 0.00000001, is called a satoshi.
Bitcoin is essentially a computer file held in a digital wallet. So, when you buy BTC, your coins are stored in a wallet that allows you to send and receive Bitcoin. Private keys give you control over your wallet. You can’t access your coins without these keys, especially if you’re accessing your wallet on a new device. Private keys come in the form of a secret passphrase.
Every confirmed BTC transaction you make is recorded on a shared public ledger called the blockchain. Rather than having a central authority controlling Bitcoin transactions, many full nodes (computers) located across the world hold a copy of the Bitcoin blockchain, creating a decentralized network. The Bitcoin network confirms transactions within 10 to 20 minutes through a process known as mining.
Mining is a consensus system where mining nodes (miners) confirm pending BTC transactions by adding them to the blockchain. Bitcoin’s consensus mechanism, proof-of-work, requires miners to compete to add new transactions to the blockchain. The mining node that solves the puzzle the fastest gets to add the newest transactions to the blockchain. Next, other network participants confirm that the transactions being added are valid and accurate. The winning mining node can only receive its reward once the other nodes have reached a consensus, agreeing that the transactions are valid.
The mining reward system adds more BTC to the market. However, the reward is reduced every 4 years through an event called halving. The reward will be halved from 6.25 BTC to 3.125 BTC, further controlling the supply. As of January 2022, more than 18.9 million Bitcoins have been released to the market. Experts expect the remaining Bitcoins to be mined by 2140.
Bitcoin is an alternative investment to traditional assets like gold. Its limited supply makes it a deflationary asset, meaning its price will rise as supply decreases over time and demand remains consistent. Since Bitcoin offers more value beyond investment, demand could increase over time. The fact that Bitcoin is going mainstream indicates that demand will continue to grow.
Bitcoin is censorship-resistant. No government can change Bitcoin’s code without the cooperation of almost all the nodes. As Bitcoin.org explains: “Any rich organization could choose to invest in mining hardware to control half of the computing power of the network and become able to block or reverse recent transactions. However, there is no guarantee that they could retain this power since this requires [investing more] than all other miners in the world.”
The crypto market is a 24/7 economy, meaning you can buy or sell Bitcoin anytime from anywhere in the world because crypto exchanges don’t observe “banking hours.”
Bitcoin makes cross-border money transfers cheaper because it cuts out middlemen and the associated costs.
You can hold Bitcoin to store value in your quest for financial freedom.
Bitcoin’s return on investment (ROI) since the time of launch is over 15,000%. Also, this 10-year ROI chart shows that Bitcoin has overall outperformed traditional assets like gold and S&P 500.
Bitcoin investors choose this cryptocurrency because of privacy and security. For instance, your Bitcoin wallet address isn’t connected to your name, physical address, and phone number, giving you a certain level of privacy. On the other hand, Bitcoin is secure thanks to its distributed blockchain and irreversible transactions. Moreover, the use of cryptography makes it impossible for someone to retrieve your private keys from a public key (the address you share to receive Bitcoin).
Purchasing Bitcoin online is pretty straightforward. Here’s what you’ll need:
A personal wallet to store BTC.
A crypto exchange account on Dex-Trade crypto exchange.
Personal identification documents to complete the know-your-customer (KYC) process. Dex-Trade doesn’t require customers to go through KYC. That means you can start buying BTC directly, and you don’t have to worry about the privacy of your data. You can also buy BTC from Bitcoin ATMs if they’re available in your country.
A secure internet connection. You need an internet connection to buy, sell or transfer Bitcoin
Funds to buy BTC. Prepare funds in advance to pay for the amount of Bitcoin you wish to acquire. Crypto exchanges offer various payment methods like debit cards, bank accounts, credit cards, PayPal, and mobile money transfers.
Dex-Trade is a cryptocurrency exchange that enables users to easily buy and sell crypto. The platform supports over 300 digital currencies and has more than 300,000 users.
Dex-Trade stands out from the competition because of the following features:
Very low fees. Case in point, BTC deposits are free, while BTC withdrawals attract a minimum commission of 0.0005 BTC.
Play-to-earn games. You can play games and earn money.
Access to over 500 trading pairs, meaning you can trade BTC with many other coins like AAVE, LINK, SUSHI, USDC, USDT, and BNB.
Unlimited liquidity, ensuring fast buys and sells.
Secure storage of funds. The exchange uses vault storage that is audited.
No KYC is required to trade on the exchange.
Unmatched support. We go to great lengths to make sure that you get the right support on your cryptocurrency purchasing journey. This is why we are always here for you if you have a question about trading on the Dex-Trade platform.
Dex-Trade is a user-friendly crypto exchange that makes buying and selling crypto convenient and affordable. If you are new to the BTC buying process, you can first practice with Dex-Trade’s Demo Trading account.
Visit the Dex-Trade website and click “Sign Up”
Enter the code sent to your email address and then log in.
Go to the profile icon and choose “Security.” Enable email and Google app authorization to add an extra security layer to your account.
Now that you’ve registered an account, you need Tether (USDT) to buy BTC via the trading pair BTC/USDT. To do this, go to MoonPay and buy USDT using a credit/debit card, Google Pay, Apple Pay, or bank transfer, among others.
Once you receive USDT-ERC20 in the personal ETH wallet you entered on MoonPay, go back to Dex-Trade and click the “Wallet” tab.
Search for USDT and click “Deposit.”
Copy the deposit address and ensure that ERC-20 is selected because you bought the ERC-20 version of Tether on MoonPay.
Open your personal ETH wallet and paste the deposit address to send a minimum of 100 USDT to Dex-Trade. The tokens will arrive in your Dex-Trade wallet after 3 blockchain confirmations.
With USDT in your wallet, proceed to trade USDT for BTC. To do this, go to the “Trade” tab and select “Spot Trading.”
Enter the amount of BTC you want to buy and click “Buy BTC.” You can also click the percentages listed to trade USDT for BTC. For example, click 50% to buy Bitcoin with half of the USDT you’ve deposited. Pay attention to the three options labeled limit, market, and stop-limit. A limit order means you’ll buy BTC at the specified price, while a market order means you’ll buy BTC at the current market price. On the contrary, selecting a stop-limit order means you’ll purchase BTC at a specified price when the stop price is reached. Dex-Trading also provides demo trading where users can practice trading with demo coins.
You’ll receive BTC in your Dex-Trade wallet, which you can withdraw to your personal Bitcoin wallet.
If you have any questions about Dex-Trade or need any other kind of help, click the chat icon at the bottom right corner of the website to start chatting with a customer support agent.
Now that you own some Bitcoin, you can opt to HODL it long-term to cash out for a profit in the future, use it to buy goods or services, donate it to charity, or lend it on a lending platform to earn interest.
Button: Buy Bitcoin on Dex-Trade!