Top Ten Questions About Bitcoin
Celebrating 13 Years of Bitcoin
The Bitcoin blockchain has been active for 13 years. In that time, it has gone from fractions of a cent and being used to buy pizza, to a store of wealth compared to gold. Though it has been around for more than a decade there are still many basic questions we get all the time regarding Bitcoin. Let’s answer some of them here.
Buying Bitcoin
There are many ways to buy Bitcoin, and it is certainly not too late to do so. Even with only 21 million Bitcoin ever to enter circulation, you can easily buy fractions, called Satoshis. One BTC is made up of 100 million Satoshis. There are many avenues to purchase Bitcoin, such as an exchange. If you are in Canada, there are easy ways such as Shakepay and Newton, and outside of Canada there are many options including Crypto.com, Binance, and Kraken. Once you fund your account, or link a credit card, you can begin to buy Bitcoin on any of the above exchanges.
Converting and Spending Bitcoin
If you want to convert your Bitcoin into USD or any other fiat currency, then you will have to use an exchange like any of the ones noted above for purchasing. You can also get a Visa debit card through Binance or Crypto.com and convert and spend your Bitcoin (or other crypto assets) that way. While there are easy ways to convert and spend Bitcoin, our position is that you should hold onto your Bitcoin unless you have to spend or sell it.
Managing Personal Information and Bitcoin Wallets
When registering for Bitcoin exchanges you have to enter a fair amount of personal information, so it is important to use a trusted site. All of the ones we have listed are safe platforms but there are plenty more to choose from so feel free to do your own due diligence.
Once you have purchased your Bitcoin it is our recommendation that you transfer it off the exchange to a wallet where you hold the keys. This can be a software wallet such as MetaMask or a hardware wallet such as a Ledger. Check out the full podcast below for more detailed information on all of the topics here and more.
Top 10 Bitcoin Questions Answered
How do I buy Bitcoin?
You can buy Bitcoin by registering for an exchange that sells Bitcoin or by using other platforms mentioned above such as Shakepay.
Why 21 Million?
Satoshi Nakamoto wanted BTC to eventually align with fiat currencies. “I wanted to pick something that would make prices similar to existing currencies, but without knowing the future, that’s very hard. I ended up picking something in the middle,” Nakamoto said.
Is it too late to buy Bitcoin?
No! You can buy Bitcoin very easily still and you are still early in terms of mass adoption.
How does mining work?
Mining is a competition to solve a cryptographic puzzle, with the reward of Bitcoin given to whichever miner solves it first. Miners use specialized computing chips in order to solve the puzzle as fast as possible. In order to begin mining Bitcoin there is a substantial upfront investment required. Mining verifies transactions on the blockchain and adds them to the next block so that the record is kept permanently on the ledger.
Can I take Bitcoin and convert it into USD?
Yes, you can take Bitcoin and convert it into USD or other fiat currencies depending on the service you use.
Can I actually spend my Bitcoin?
Yes, it is quite easy to spend Bitcoin, however we recommend holding as much as you can.
Can I just give you money to invest in Bitcoin for me?
That would defeat the purpose of our company’s mission. Our goal is to empower people like you to take control of your own finances rather than leaving them in the hands of banks.
Won’t the governments ban Bitcoin eventually?
Some governments have banned Bitcoin already. However, it is unlikely that every government will ban Bitcoin, especially seeing as some are already adopting it as legal tender.
Is it safe to enter my banking and personal information into Bitcoin exchanges?
Yes, as long as it is a reputable exchange. Do due diligence before registering for a service
How do I manage multiple Bitcoin wallets at a time?
Make sure you have backed up the keys of all your wallets and stored them in a safe place, and use a portfolio manager to keep track of the balances in your wallets.