The digital currency "Bitcoin" is one of many different cryptocurrencies. Due to speculation and changed demand, the price of Bitcoins fluctuates again and again - big profits, but also heavy losses are possible in transactions. As a cryptocurrency, Bitcoin is also a money investment - but like any currency speculation, it can also be risky here.
What exactly are bitcoins and what is the blockchain all about?
Bitcoins are a cryptocurrency, i.e. virtual money, so to speak. It all started in 2008. An organization called Satoshi Nakamato invented Bitcoin - BTC for short. Anyone with a powerful computer should create bitcoins. The principle called "Bitcoin Mining" ensures that the computer executes and solves various algorithms in order to generate bitcoins. A Bitcoin address with 27 to 34 characters was created according to the principle of blockchains. This is unique for every Bitcoin. Anyone who created a Bitcoin was allowed to keep a portion of it. In the meantime there is still the possibility of Bitcoin mining, but the effort is no longer really worth it in relation to the equivalent..
By the way: There are a number of other digital currencies on the Internet. The best-known cryptocurrencies include, for example, Ether, Tether and Ripple. And most of these means of payment will experience a new boom in early 2021.
How do I trade bitcoins and how can I manage my wallet?
There are several places on the internet where you can buy and sell bitcoin currency. One of the largest German websites for transactions is bitcoin.de . You have to register there and can then start trading straight away. Purchased bitcoins are stored there in the so-called "wallet". You can find more information on this topic in our article Buy Bitcoins - Here's How..
This is what bitcoin.de looks like - one of the largest German Bitcoin transaction websites. Some online shops accept bitcoins as a means of payment. Many of these businesses do this less because Bitcoin is really an accepted currency, but more for fun. Nevertheless, you can then use Bitcoins as a means of payment there. But be careful: Since Bitcoin is a crypto currency, speculation cannot be ruled out. Before paying with Bitcoins, you should definitely take a look at the current rate and possible forecasts.