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7 things you need to know to buy Bitcoins and cryptocurrencies

Cryptocurrencies are a hot topic all around the world. Bitcoin, Litecoin, and Ethereum have been all the rage, but they’re nothing compared to the other cryptocurrencies like Ripple and Cardano and many others. ICOs and cryptocurrencies are hot topics right now, but they’re not the only exciting things happening in the world of tech and finance right now.

If you are close to finishing university or have already got your first job as a professional, it is reasonable that you are thinking of a convenient way to use and invest your money to get closer in the fastest and simplest way possible to the fulfillment of your personal goals, since be traveling, buying your first car or apartment or creating your own business.

If you are considering entering the world of cryptocurrencies motivated by the popularity that this market has reached in the last decade, it is important that you know and understand a series of elements that will help you in the process of buying them and will improve your experience at the beginning of this new financial adventure.

Here are 7 relevant things you need to know to buy Bitcoins and cryptocurrencies:

1. What are cryptocurrencies? What is Bitcoin?

Before buying cryptocurrencies, you should have a general understanding of what these two frequently mentioned concepts refer to and how they relate to each other.

Cryptocurrencies are digital currencies, that is, they do not exist physically and are characterized by being decentralized as they do not need a financial institution or government to control and regulate their use. On the other hand, Bitcoin is one of the many cryptocurrencies that exist today, standing out for being the most recognized and valuable in the cryptocurrency market and that has given fame and served as a boost for the growth and development of this revolutionary financial asset.

2. What is blockchain?

The  blockchain is a technology that represents an accounting book where all operations related to the creation or transaction of cryptocurrencies that take place in the world are recorded and stored safely and reliably and it works through a computer network. Distributed, that is, it does not require a central server that only stores the information.

This feature prevents any attempt at fraud, since in order to alter the information linked to a transaction, it is not enough to modify the information of a single server, but it is required to instantly change the data of multiple computers that make up the network and store the information of an operation, making it difficult for any hacker who wants to alter the system, providing great protection and confidence to the user.

3. How can I buy Bitcoins in Mexico?

To buy Bitcoins in Mexico in a safe and simple way, it is best to use one of the various online platforms and pages that operate with bitcoins and other cryptocurrencies, popularly known as exchanges. Thus, an exchange or virtual exchange house will provide you with the experience of operating with these assets in exchange for a commission for its service.

4. much is a Bitcoin worth?

Answering the question of how much a bitcoin is worth is complex, since its price is define by the law of supply and demand in the market, that is, its value is variable and responds to the interest that people have in acquiring this financial instrument. In this way, the price of bitcoin will be value to a greater or lesser extent depending on the acceptance and trust it achieves in people over time.

5. How can I protect my cryptocurrencies?

As with physical money, protecting your digital money is very important and you must take it into consideration if you want to be part of this market. In this case, it will be useful for you to acquire a digital wallet or wallet, where you can safely store and manage the cryptocurrencies that you decide to acquire and protect them from fraud attempts or cyber-attacks.

6. Is it profitable to invest in cryptocurrencies?

Investing in cryptocurrencies is one of the most popular forms of investment today and its fame seems to be justified. For example, in 2010, a man made the first real bitcoin transaction by exchanging units of this renowned digital currency in exchange for two pizzas, equivalent at that time to an amount of real money close to 40 dollars. Since then its value has varied exponentially.

However, you must not forget that the price of bitcoin or any other type of cryptocurrency has a highly volatile value, so this instrument does not guarantee that the results of the past will be repeat in the immediate future.

7. El Salvador, the first country in the world to legalize bitcoin

One of the most relevant news in relation to the world of cryptocurrencies took place in 2021, with the announcement by the president of El Salvador, Nayib Bukele, of recognizing bitcoin as legal tender with the so-called Bitcoin Law. This news only confirms the progress of cryptocurrencies as a valid means of exchanging value between people and it would not be surprising if other countries join this initiative in the future.

As you can see, this alternative is add to the various investment instruments available, but you must know the essential points, inform yourself, and be willing to take the risk that investing money in cryptocurrencies means.

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