At the beginning of 2018 in particular, there was increasing talk of bitcoins in the media. It is a cryptocurrency. This means that this currency only exists digitally. We'll show you how you can buy and sell bitcoins yourself. However, you should note that investing in Bitcoins is just as insecure as investing in the stock market. Both are based on exchange rates, which can fluctuate or even lead to a total loss.
What are bitcoins?
In 2008, invented an organization under the pseudonym Satoshi Nakamato works, the Bitcoin - short BTC . This group called for the first bitcoins to be created with a powerful computer through what is known as " mining ". The computer solves various algorithms to generate bitcoins. As a reward, the miner himself receives a share of bitcoins . In the meantime, however, it is only worthwhile for people with exceptionally powerful computers to generate bitcoins, since the cost of electricity exceeds the value of the actual bitcoins yield.
Bitcoins are a cryptocurrency . This means that you can use this currency on the Internet like a regular currency . However, a crypto currency exists completely digitally , i.e. without physical coins. Such a currency is also not administered by a single financial institution and is not bound by the government .
Each individual Bitcoin transaction has a so-called Bitcoin address with a fixed length of 27 to 34 characters. Each individual Bitcoin transaction can be precisely identified using this long combination of characters . Incidentally, the total number of Bitcoins is limited to around 21 million pieces .
Bitcoins are based on the blockchain principle. Blockchains are databases designed for transactions. A detailed explanation of blockchains can be found here.
Where can I buy bitcoins?
Bitcoins are sold in various places on the Internet . So there is no single Bitcoin exchange . The largest German platform for buying bitcoins is bitcoin.de . You can create an account there . This is then linked to a Bitcoin wallet . This is a kind of digital wallet where your bitcoins are kept. This is how you can access your digital money quickly and easily. Bitcoin transactions are initiated via online platforms, but then run via online banks such as Fidor Bank .
By the way, there are different ways to store your Bitcoins in a wallet. From the desktop wallet to the online wallet to the paper wallet, everything is available. With the desktop wallet , your bitcoins are managed via a desktop client. With the online wallet , your wallet is on a server. With the paper wallet , you have a QR code that reflects the Bitcoin address.
For sites like bitcoin.de or Anycoin Direct , you must first create a user account . Here it is necessary that you have your e-mail address and personal data verified . The verification of the personal data takes place by video or Post-Ident procedure . So this can take a few days.
Then enter a payment method , such as a direct debit via SEPA transfer or PayPal . A very small amount will then be transferred to your real bank account in order to verify this. Some websites also offer coupon codes that you can use to receive or give away bitcoins.
After your account is verified, you can buy and sell bitcoins however you want - from the comfort of your wallet..
What can I pay with bitcoins?
Of course, not all online shops accept Bitcoins or other crypto currencies. However, there are some providers who allow this payment option. So you can already pay for some online offers with Bitcoins. In addition, many delivery services offer payment with Bitcoins. Many online game providers have also implemented this payment option. In the meantime, however, the number of providers is decreasing again.
In some countries there are now Bitcoin machines that work in a similar way to regular ATMs. Even in Germany some restaurants offer this to pay with Bitcoins there. How many Bitcoins you pay for an actual equivalent in euros depends, of course, on the current Bitcoin exchange rate .
The current Bitcoin rate can be followed, for example, on the bitcoin.de homepage. How safe is it to own bitcoins?
Investing in bitcoins is no safer than buying stocks . Both are dependent on exchange rates and are therefore subject to fluctuations . When buying bitcoins, you are also in no way protected against total loss. A good example of this is the Bitcoin bubble in late 2017 / early 2018 : In a very short time, the price of a single Bitcoin rose from around € 5,000 to almost € 16,000 . A short time later, the Bitcoin price fell back to around € 8,000 . The Bitcoin price had halved in less than a month . In February 2018, EU supervisory authorities warned against buying virtual currency for the first time. Many countries are now considering a ban . The problem would be that there is too little transparency - and no security at all.
Some types of wallet are also associated with risks: For example, the online wallet is stored on a server and managed by third parties . In February 2018, for example, a group of hackers stole millions of Bitcoins from online wallets.
So, before buying Bitcoin, you should be sure that you are taking such a risk actually want to enter. Because of the possible consequences, you should also consider how much money you want to invest. So you can operate a loss reduction. In addition, every transaction is associated with a fee ..