Topic: What are the procedures to follow when I want to invest? - page 3. (Read 402 times)

First, you need to visit sites like coinbase to purchase bitcoin. Different exchanges have unique transaction fees. After purchasing bitcoin don't keep funds on the exchange, if you do, it means they have control of the coin. Transfer your bitcoin to a wallet that issues private keys, which authorizes you ownership of the coin.

Mining security is maintained in different ways, such as digital signatures that uses ECDSA for validating transactions, chain work the difficulty or hashes required to mine a block, consensus rules that guides what rule miners should follow to mine a block etc. These factors help to keep the mining process secure from attacks.

A good reason why using bitcoin over other conventional currencies is that, maintaining the bitcoin network doesn't require any external help, every update happens within the bitcoin developers, miners and users. No other charges aside transaction fees. 

> Basically the procedure for buying bitcoin on a crypto exchange, OP only needs to create an account on one of the crypto exchanges such as Binance and after that top up the Binance account that OP has created with money. Then after that, OP can immediately buy bitcoins on the spot wallet. Maybe in short like that. And for the rules, every exchange always has different rules, of course, so the Op only needs to read the rules first so he can understand better.

> At the moment I also don't understand about bitcoin mining, because I only focus on trading and investing. But for security matters, if the OP leads to asset security, the OP only needs to save the bitcoin assets that the OP has purchased from the exchange, into a non-custodial wallet. Because if the OP stores his assets in a Custodian wallet like on an exchange, it is very risky.

> For a comparison of bitcoin and fiat currency. I think both currencies have their respective advantages. And the advantages of bitcoin lie in its limited supply, and having a decentralized system.

Proceedings in buying
First, you need to get the money you want to use to purchase the bitcoin, either in your bank account, in cash, or by whatever means you prefer.

Secondly, you need to have a secured wallet that you can use to store those bits. Electerum and BlueWallet, among many others, are recommended to us as they are open source and self-custodial wallets (meaning you have full control over whatever you send in your wallet).

Thirdly, you have to make a choice of how you will want to acquire the bitcoin: DEX P2P, as they are highly recommended; DEX like Bisq, HodlHodl, and Agoradex. On this exchange, you will now discuss how you want to make payment to the seller and reach an agreement.
 
Fourthly, you need to learn how to secure your wallet, keep your wallet key safe, don't share it, and don't lose it, because if they are misplaced, you lose your coins.

You can buy Bitcoin through centralized or decentralized platforms. You have to study how these platforms operate to check the one that suits you. If you don't care much about your privacy and you can risk keeping your funds in the custody of a third party, you can choose exchanges. But it is risky since they are unreliable. But if you are not comfortable with KYCs and you want to have total control of your funds, the best option will be decentralized platforms that promote P2P such as bisq.


Bitcoin is better because it is
Decentralized: It is not issued or controlled by the government or organization. So it cannot be easily manipulated by any government.

Promotes privacy: It can hide the identity of an individual because it is pseudonymous. Transactions can only be traced to wallets or addresses but your identity cannot be known if you use a non-custodian wallet or use exchanges that don't require KYC. Using Mixers can also promote your privacy.

Serves as a hedge against inflation: Bitcoin has proved that it can help individuals protect their finances from the loss of value of local currency during inflation.

Grants unlimited access to funds: Money kept in banks can be seized by banks or government. However, using Bitcoin through a non-custodian wallet will give you unlimited access to your money.

Competitive transaction fees: Bitcoin transaction fees can be cheaper and more reliable than fiat transactions.

Cannot be counterfeited: Although we have some altcoins that want to duplicate bitcoin such effort ended in futility. Fiat can be faked easily but it is not easy to counterfeit bitcoin.

You need to do your research before engaging in trading for the reason that there are other important things you need to learn. You need to learn how to secure your wallet against hacks or scams. Just make sure you do your research.

1. Not really that hard, depends on the exchange you're want to use. I think the crucial element is privacy because if you've share your privacy in online, you will not able to become 100% anonymous since either the database or someone have save it.

2. In short mining is a process to verifying and solving Bitcoin blocks, mining can maintain Bitcoin security because the higher the difficulty and the more people mine it, this will make people who want to perform 51% getting slim.

3. Because it's decentralized.

If you don't know the answer to those questions, then it isn't a good time to invest yet lol. Who even invest in something you don't understand yet?

Research.

* If you like reading articles: https://coindesk.com/learn
* If you like reading books: https://theinternetofmoney.info/
* If you like watching videos: https://www.youtube.com/playlist?list=PLPQwGV1aLnTuN6kdNWlElfr2tzigB9Nnj

Security related:
* https://chainsec.io
* https://www.lopp.net/bitcoin-information/security.html

If you want to get more technical
* https://github.com/bitcoinbook/bitcoinbook#chapters

I have came across some questions today while I’m reading some areas of bitcoin, these are the list of my questions.

1. What is the procedure for purchasing and selling Bitcoin, and are there any crucial elements to take into account before beginning?

2. I'd appreciate an explanation of how Bitcoin mining functions and how it maintains the security and reliability of the Bitcoin network.

3. Why is using Bitcoin better than using conventional currencies?

Many thanks to all of you for your explanation.