Getting started with Bitcoin and other cryptocurrencies has become accessible for everyone—not just massive traders and those who are extremely tech literate. We thought we'd step in to make it even easier to understand what the Bitcoin movement entails by providing straightforward answers to some of the most common questions that we see among both new users and experienced traders.
What is Bitcoin? Is it safe to use?
Bitcoin is the most popular cryptocurrency in the world. It serves as a decentralized virtual asset. Rather than function through the use of a central authority or middleman like a bank, Bitcoin runs on a peer-to-peer network built on an open ledger known as a blockchain.
Above all else, Bitcoin is widely transparent when it comes to how the network is operating. People can easily view information about transactions and independently verify that no one is in control of the network.
What is the point of Bitcoin?
Bitcoin, like several other cryptocurrencies, is a decentralized project that is not under the guidance of any sole entity. Some people see Bitcoin as a way of diversifying their investments outside of traditional avenues like the stock market. Since Bitcoin was created with a limited supply that it will never exceed, some proponents view it as a store of value that is not dissimilar to a digital form of gold.
Another popular sentiment is that Bitcoin is a way to reclaim power from the financial intermediaries—such as banks—that are heavily involved in many aspects of our contemporary lives.
Is Bitcoin legal?
As regulators around the world race to keep up with the rising popularity of cryptocurrencies, it is worth noting that very few countries have made holding or spending Bitcoin outright illegal. The specific legal requirements placed on your Bitcoin activities will depend on the country in which you live and your local laws.
Will I need to pay taxes on my Bitcoin trades?
With Bitcoin's increasing legitimacy and adoption, countries are developing tax frameworks that define the obligations that apply to Bitcoin traders. In some parts of the world, these tax requirements are still being formalized and/or simplified.
How can I buy Bitcoin?
It is easier than ever to buy BTC, thanks to the emergence of user-friendly cryptocurrency exchanges and services across the world. For users in the European Union, Iceland, Norway, and Switzerland, the Invity mobile app is a safe & simple option to buy some Bitcoin.
When you purchase Bitcoin, you'll mostly either do so through a custodial or non-custodial cryptocurrency exchange. Custodial exchanges hold your bitcoin on your behalf when you purchase it. Non-custodial exchanges allow you to use your own cryptocurrency wallet to store your coins; as long as you take the proper precautions, your digital assets will be safe from external risk.
How can I keep my Bitcoin safe?
You can keep your bitcoin safe by storing your digital currencies appropriately. Research the best kind of wallet to use to store your crypto. The other thing you need to do to stay secure is keep your wits about you online. Look out for anything that seems too good to be true and never share your private key with anyone under any circumstance.
How do I withdraw my Bitcoin from an exchange?
If you've purchased Bitcoin from a custodial exchange, one of the best things to do is withdraw your crypto and move it to a correctly set up hardware wallet. Navigate to the section of the exchange's website that gives you the option to withdraw your coins, pay any applicable transaction fees, and double check that you entered your wallet address correctly.
How can I learn more about Bitcoin?
As part of an ongoing effort to create a landscape where everyone has access to the free resources they need to learn about the cryptocurrency movement, Invity is frequently publishing beginner guides, FAQs, and in-depth explanations on our blog.
