basics and practice

[CONTENU PARTENAIRE] Increasingly democratized, cryptocurrency tends to become a type of investment in the same way as a real estate purchase. Except that this virtual currency still has its gray areas, forcing many French people to be wary of it. The most important and expensive cryptocurrency on the market, Bitcoin deserves a spotlight on its own. How does it work ? How to invest and mine it? We take stock.

History of cryptocurrency and its bitcoin

To know the beginnings of cryptocurrency, you have to jump back to 2013. This intriguing term stems from an ambition, that of Satoshi Nakamoto to break the codes of traditional payment. The idea is then to create a digital currency, which does not involve the issue of banknotes or coins. Completely dematerialized, cryptocurrency is bought and sold between users present in the four corners of the planet. Secured by a cryptography protocol, this digital currency is intended to be a unique method of payment, free from government oversight, with no transaction fees or transfer delays.

Cryptocurrency is illustrated by a hundred different currencies. Among this extensive catalog, Bitcoin is undoubtedly the most famous crypto-currency, and by extension the most expensive. It is even the first to have been put into circulation. Like a stock price, Bitcoin sees its real price evolve according to the market and its fluctuations. Users can buy a whole bitcoin, around 42,500 euros, or a small fraction for one or one hundred euros. The investment is thus completely adapted to the capital of each one.

Bitcoin or the path to simplified transactions

But concretely, what is cryptocurrency used for? The primary interest of virtual currency, and in particular its Bitcoin, is to allow simplified peer-to-peer transactions. Wherever one is on the planet, two people can send money to each other quickly and by reducing the value of the commissions to its maximum. From a smartphone, tablet or computer, Bitcoin users can interact with each other without opening a bank account.

And this is precisely the whole point of Bitcoin: no bank or other third party controls the funds, only the owner manages his assets and is solely responsible for them. This management interface takes the form of a Bitcoin wallet, a centralized space in which it is possible to send, receive and store digital funds. Fully protected, this wallet opens after registration with a cryptocurrency platform. This new way of looking at finances abolishes the natural boundaries of transactions, making them accessible to everyone.

Where to buy Bitcoins?

As soon as one is interested in Bitcoin, the question of the purchase process naturally arises. As mentioned above, Bitcoin works like a stock product, with the resulting risk factor. The objective of a cryptocurrency is to find a balance between a high-performance means of payment and an attractive financial asset. Particularly appreciated by investors, Bitcoin can be a very profitable investment.

To obtain one, several or a fraction of Bitcoin, the easiest way is to go to a dedicated platform. Easy to use and reliable, a cryptocurrency site closely resembles a stock market interface, which here allows you to trade digital currencies. The cryptocurrency market has stopped believing since 2008 with more and more players and adapted platforms. The leading Dutch cryptocurrency exchange, Litebit makes it possible to buy, sell and store Bitcoins in a unique virtual wallet with very high security. For the sake of transparency, the site tracks the stock market and displays the real cost of 60 cryptocurrencies, including Bitcoin.

Cryptocurrency mining: safety first

If banks and states issue banknotes and coins, cryptocurrency is based on what is called mining. In 2008, at the same time that Satoshi Nakamoto launched his cryptocurrency, he had to define the outlines of the transaction validation system. The idea was to reserve this work for individuals able to operate a strict control of all monetary movements, and this, thanks to the computing power of their electronic device.

In this sense, a minor is defined as one who carries out all possible checks in order to receive financial compensation. These inspections take the form of clever calculations involving a private key, ie the identifier, and a public key relating to the transaction, ie a series of numbers from the private keys. Mining then consists of testing the plethora of possible combinations. As soon as a minor has put his finger on the solution to the problem, he collects a commission. A win-win principle that allows Bitcoin to maximize its level of security.

With Litebit, it is possible until December 31, to take advantage of a credit of €20 after registration and verification of the account.

This content was produced with AGENCE DELTA. The BFMBUSINESS editorial staff did not participate in the production of this content.

in partnership with AGENCY DELTA

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