5 Things to Know Before Investing in Bitcoin ( Updated)

More specifically, you are probably excited about cryptocurrencies, like Bitcoin or Litecoin, or Ether. What Are You Investing In? The blockchain is, most simply, a digital, decentralized and inalterable ledger.

What does this mean, exactly? A ledger is a database technology used to record transaction histories and ownership; it is a definitive account of who has given what to who, and who owns what.

What does it mean to invest in Bitcoin?

This means that they are subject to the discretion and power of individuals, and are alterable and impermanent. A digital ledger addresses most of these concerns, and pretty effectively. The codes for the blocks are broken by miners. This adds the block to the blockchain, thereby rendering that data permanent and inalterable.

They are rewarded, in the cryptocurrency produced by the particular blockchain they are working on. This is where you come in — potential buyer and investor. These cryptocurrencies can be very valuable, and are valued at increasing heights, the more successful a particular blockchain and cryptocurrency is.

How Can You Invest in Bitcoin Crypto So, this is a step-by-step guide for how to buy and invest in cryptocurrency, and Blockchain ventures more broadly.

Ethereum – ETH

Coinbase If you are just getting acquainted with cryptocurrencies and the Blockchain, I would suggest starting with a site like Coinbase. Most of us lack the technological inclination or means to mine Bitcoin directly, or communicate and trade with miners directly, or store our digital currencies and assets. Coinbase is a global digital asset exchange company GDAXproviding a marketplace for digital currencies, and then sending information about the transactions that happen in its marketplace to the appropriate blockchain network, so that those transactions can be recorded in the blockchain.

Coinbase serves as a digital wallet, too, where you can store the digital currencies you purchase on the platform.