The Best Exchanges to buy and invest in Bitcoin (BTC)

Do you want to buy and sell Bitcoin (BTC)? Now you are looking for an exchange to invest in Bitcoin (BTC) tokens?

Check out the 3 best exchanges to invest in Bitcoin (BTC) today.

Best Exchanges to buy and invest in Bitcoin (BTC) Description
1. Bybit Bybit offers stablecoin-margined Options contracts to help you expand trading opportunities, and Portfolio Margin to help you maximize capital efficiency.
2. Binance The largest Cryptocurrency exchange in the world. Buy, trade, and hold 600+ cryptocurrencies on Binance
3. Huobi Huobi, a Leading Digital Asset Trading Platform. A wide array of digital asset trading and management services to satisfy diverse trading needs.
4. BitMEX Supporting more than 30 Cryptocurrencies. Get crypto’s most advanced trading platform on your device.

Cryptocurrencies continue to grow in accreditation and have reached numerous milestones, including reaching a market cap of $3 sec by the end of 2021. Due to the explosive interest in Bitcoin (BTC), Non-functible Token (NFT), meme coins ( Dogecoin and Shibainu ), and decentralized finance (Defi), cryptocurrencies have been at the forefront and center of the news. In this article, we will take a look at Bitcoin, the origin of cryptocurrency.

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What is Bitcoin?

Bitcoin (BTC) is a type of currency, such as commodities and fiat money (label currency). It allows you to store, measure and transmit wealth. However, instead of being a physical item, such as gold or a piece of paper voucher, Bitcoin is represented as a code that exists in a completely digital form inside a computer. A lot of people right now are confused about how it’s worth it to not exist physically. If you want to understand this concept easily, check back the first article on money.

Humans used money for goods or items that once had intrinsic value, but over time they settled on paper money and money notes. Banknotes have no value on their own, and must be supported by the premise that each banknote can be exchanged for a fixed amount of gold. However, over time, even the gold standard was abandoned and fiat money was introduced.

This means that without a commodity backed by fiat money, it would not have been so universally accepted as money today. What gives it that value is real trust. We trust the government’s ability to implement this use of paper money, and we trust each other to accept it as money. In other words, value arises when we agree that it is worth it. It doesn’t matter what form it is, whether it’s a coin, paper, or even computer code.

Now that we have built the notion that anything can represent its value based on our beliefs, let’s see why we can trust Bitcoin without a central authority to back it up like governments.

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Digitization of financial markets

Before delving into the techniques and features that make Bitcoin a reliable alternative to fiat money, let’s briefly review Digital Payments. Even the physical use and exchange of fiat currencies has dwindled in the never-ending quest to simplify the transaction process.

Instead, we now record transaction amounts digitally. As we deposit our money in the bank, the bank uses its network and mobile technology to record transactions instantly. Physical movement of banknotes is unnecessary as long as you can record meticulously and accurately who pays to whom.

Again, the reason why this digital transaction system can be utilized is because the element of trust has been established. We believe in the ability of banks to record transactions and believe that these records are faithfully followed and protected from malicious manipulation. Without an intermediary you can rely on, the only way to accept money sent or received would be to physically exchange it directly into our hands. Again, I have a question.

How can we trust a decentralized system like Bitcoin where every user in the world participates in the record-keeping task? People can change records or code to get more money, so what can you do to stop that? After all, human beings are selfish and tend to focus on self-interest. As you may have guessed by now, this is where blockchain technology plays a key role. Bitcoin was designed to solve all these issues and more.

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What is blockchain?

Let’s break down and explain in detail how Bitcoin seeks to stand out as a solid replacement for traditional currencies by leveraging each of the key elements of the blockchain.

Centralization vs Decentralization

Before answering the basic question mentioned above, it is important to understand that even centralized systems have their drawbacks. Whether it’s a government or a bank, trusting them is assuming they’ll do their job well. Unfortunately, this is not always the case. Historically, there have been countless examples of governments’ failure to fulfill their fiscal and economic responsibilities, leading to hyperinflation and, ultimately, monetary collapse.

Financial institutions and banks similarly fail to keep funds or transaction records secure. Worse, it turns out that many of these people actively and maliciously deceived customers and embezzled funds.

Importantly, these organizations have full control and authority over their records and funds. There is no reasonable way to monitor or direct what they are actually doing behind the scenes with our money. Bitcoin addresses these issues by recording all transactions on the blockchain.

You may remember that the blockchain is actually a public ledger, not a system controlled by a single institution. The public ledger nature eliminates the need to blindly trust a central authority, as all transactions are easily tracked and verified. Furthermore, since there is no single point of failure, it becomes much more difficult (nearly impossible) for an attacker to tamper with the record.

Bitcoin’s virtual ledger is copied and distributed countless times around the world, and to manipulate the system, you’ll need to modify each one of them. To dive deeper into how we can keep records publicly without fear of fake or invalid transactions:

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Security and Mining

As explained in the block chain section, the name block chain was derived from the idea that it is a technology that connects blocks of transaction data to each other according to the verification result. Let’s illustrate this process with an example. I send 1 bitcoin I have to a friend.

Anyone can verify that my account (wallet) has funds and that transactions contain my own signature. Validation uses the public key base discussed in the previous section. Fake transactions are rejected, and hundreds of verified transactions are grouped into blocks. In order for a block to be officially added to the blockchain and become a permanent part of the public record, certain requirements must be met. The most important requirement is to solve the math puzzle.

These puzzles are very difficult and complex, requiring a significant amount of computational power to solve. Minor individuals or groups known as To explain this process very simply, the computer produces a correct answer by repeatedly trying a number of variables known as nonces. The first miner with the correct answer adds his block to the chain. To prove that this miner has done the work and added blocks without lending his computing power, other miners test whether they arrive at the correct answer with the same nonce.

This shows that it is practically impossible to automatically justify a miner’s correct answer nonce without consuming significant resources. If everything proves right, a new block is added to every copy of the blockchain. Not only that, as mentioned in the previous section, this answer is also a sequence of characters (hash values), which also function as names or codes to distinguish blocks from each other.

Steps to arrive at the correct code will use the hash value of the previous block. Through its effect, the hash value of all valid blocks is necessarily linked to the previous and next blocks. In other words, the blocks are chained together. If you try to modify one of these blocks, you will mess up the mathematical logic of the entire chain. Going back to the math puzzle, this mechanism also functions to deter the bad guys. The cost of solving the puzzle is so high that it is ultimately concluded that it makes sense to simply follow the rules.

Why? Because successfully solving puzzles will generate rewards. Each time a miner adds a legitimate block to the chain, they receive a certain amount of BTC in return. Not only that, users also pay a different value as a transaction fee each time they move a coin.

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Other Advantages of Bitcoin

Deflationary currency
The system is designed to produce up to a total of 21 million Bitcoins. This makes Bitcoin a deflationary currency. In other words, Bitcoin is not a currency whose value goes down by printing more money like a central bank. There will come a day when miners will not be rewarded with the system, but we will continue to work in a way that still receives user transaction fees.
Low cost and low latency
The decentralization characteristics described above also mean low cost and low latency. In the traditional financial world, we blindly trust our brokers to handle our funds in good faith, but at a cost. These fees are much higher than the fees paid to miners. In addition, waiting times are longer as money has to go through various agencies and procedures to move around the world. In the case of Bitcoin, the money I send is sent directly to the recipient.
Anonymity
Another advantage, which may seem counter-intuitive, is anonymity. As you can see, even if the blockchain or transaction record is fully public and anyone can easily access and view it, the identity of the person is not disclosed. As mentioned, the unique signature associated with a transaction acts as a username, but not the actual legal name. Because of this, I can protect my privacy. Especially in a world where government oversight is increasingly tightened.

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Things to remember before investing in Bitcoin

In summary, Bitcoin is a new type of currency that guarantees me anonymity, speed, thrift, and anti-inflation mechanisms. Represented by only a few lines of code on a computer, systems are inherently designed to be trusted by more and more people, adding significant value.

Because the blockchain technology that powers Bitcoin creates a self-sustaining environment, participants are rewarded for maintaining and solidifying the system. The more secure it is, the more people join, and in the end, the more benefits everyone gets.

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Is Bitcoin a good investment right now?

Bitcoin is being used more and more by the masses. With these concerns, more people are looking for the best way to enter the market and profit.

But is it too late to start now? This is a worry many newbies face, and we’re here to tell you: it’s not too late to start getting your hands on Bitcoin. If you are considering investing in BTC right now, here are the qualities of a “good investment”.

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Why Bitcoin is a Good Investment

What is a good investment? The fundamental goal of any investment is to ensure that you get more out of your initial investment. The quality of an investment is usually measured by the risk of loss relative to potential gains. A good investment, then, is to minimise your risk while ensuring that the money you put in is worthwhile.

So, what makes Bitcoin the perfect investment?

1. Bitcoin is an excellent store of value

A good store of value means keeping all the value of your investment. Any good stored value method needs to be able to adapt to changes and even achieve a net profit.

Let’s take the United States as an example. The country’s inflation rate in March 2022 was 8.5%. Unless you invest your cash against inflation, you’re basically losing money.

If you invested in BTC, by March 2022, the ROI would be 3.27%. By contrast, the Dow and Nasdaq fell 5% and 10%, respectively.

2. Earning potential

It’s no surprise that traditional investment techniques can also be used to trade bitcoin, helping users earn money from their investments.

From HODLing (holding for the long term) to cost-average methods, Bitcoin investors have the potential to make money using any method. It all depends on how the trader conducts his research and how he handles this information. Every trader has his own way of operating, and there are many, many more ways to make money with Bitcoin.

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How to start investing in Bitcoin

Getting started with Bitcoin is much easier today than it used to be, especially on the Bybit platform. With Bitcoin traders from all over the world, you’re sure to find the deal you want and get your first BTC.

Before you actually start, though, the most important piece of advice you should take is to do your own research. It is the surest way to make decisions with confidence, and the best way to avoid breaking trades due to FUD (Fear, Hesitation and Doubt) and FOMO (Fear of Missing an Opportunity).

Of course, the trading platform you choose is also an important factor. As a peer-to-peer platform, Bybit aims to provide users with more choice and ensure users find the bids they need. This platform is also great for beginners, and new users get a free bitcoin wallet when they sign up.

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A Guide to the Basics of Buying Bitcoin on Bybit

To get started with Bybit, go to the homepage and make sure you are logged in. For new users, please sign up and get a free bitcoin wallet. Don’t forget to verify your account to unlock more benefits!

When you are ready, set Bitcoin (BTC) as the cryptocurrency you want to buy. Choose your preferred payment method – the platform provides more than 350 payment methods for you to choose from. You can further refine your search by setting a budget on the bottom row.

On the Bidding page you will see all relevant bids from BTC sellers, please read them carefully. Click Buy to view the bid in more detail. If your search results are too large, you can use the filter tools on the sidebar to narrow the results even further.

Once you find a bid you like, click Buy Now. The page will open an online chat window. Please discuss payment details with the seller, making sure to obtain all important information. Transfer the required funds through the appropriate channel and mark your transaction as paid.

Sellers first need to verify that payment has been received. Upon confirmation, the BTC held in Bybit escrow will be transferred to your wallet immediately. Leave a review for your trading partner to help them trade in the future.

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What can you do with bitcoin

Now that you have Bitcoin, what can you use it for? Some people may think that we can only hold bitcoin and sell it when we make a profit. This may have been true in the past, but current technologies and products could allow anyone to use Bitcoin in their daily lives.

One of the common uses is sending money in Bitcoin. With the lower fees of DeFi (Decentralized Finance), users can transfer money securely and instantly. This makes Bitcoin ideal for those who don’t like slow, expensive traditional money transfers.

Another recent development is the launch of the Lightning Network. The network is a brand new layer on top of the Bitcoin network that helps users send money faster and cheaper using Bitcoin. This allows people to pay for transportation, groceries, pizza and even coffee with bitcoin.

Alternatively, you can also participate in the market by actively trading. To do this, you need to stay informed about news and market changes, but if you play your cards right, the effort is worth it.

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Should I invest in Bitcoin in 2022?

Is Bitcoin a Good Investment? Dare we say, the answer is yes. While it’s still a bear market, you can think about it from another angle. Looking back at Bitcoin’s growth over the years, its average value has actually grown gradually. As blockchain technology becomes widely accepted, the value of Bitcoin will continue to grow.

Anyone can easily get into Bitcoin. Unlike traditional investments, people don’t need to put in a lot of money, and Bitcoin itself is as easy to get as ever. You don’t even need a bank account to get started.

This all means that Bitcoin is ready for investors. Of course, fear always causes some hesitation. The answer is to learn as much as possible about Bitcoin, the Bitcoin market and the community. This helps remove uncertainty and gives you a clearer picture of where you’re going.

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