BITCOIN: 10 questions and answers about bitcoin investments

So far, we have tested many types of investments such as: investments in the Romanian capital market, international bonds, government securities, mutual funds, plus the business where more time invests.

Every year I want to test new ideas, and this year I tempt the bitcoin side. The virtual currency that is the most popular and most popular and is already used in many places as a payment system.

Below I will answer 10 questions I had when I started to be more interested in bitcoin. Hope to help you understand the phenomenon.

10 questions and answers about bitcoin investments

1. What is bitcoin?
   We have all heard about bitcoin (BTC) in recent years and how fast it has grown. We know it is an electronic coin / virtual monk that does not print and you can not have it in physical form.

It is a currency developed by people, but also business, all over the world, on computers using programs that solve mathematical problems.

Basically, here comes the mining side if you read the answers to the questions below.

It is the first and most known cryptomonas in the world.

The Bitcoin network is not controlled by anyone and nothing. (It is also heard that there are techniques of changing the fun, but nothing serious until now).

The network is controlled by all users who buy or sell.

1. What are the benefits and benefits of bitcoin investments?
   It can be a way to invest and earn from the sale - you can earn money, but there are big chances and you lose it - it's all about your ability to understand the system;
   You can buy products / services with them;
   They began to appear all over the world, including in Romania.
   Small Payments Fees. Payment processors do not have very high commissions;
   Traders are safer because personal data is not available at the time of payment via bitcoin. Due to this process, payments are safer.
   Cryptographically speaking, the system is transparent and neutral. No one can intervene to change it.
   The payments you make can be made 24/7 - without the care of the banks and their program.
2. Are bitcoin investments a way of enriching in the short term without losing money?
   Surely this answer is NO. You can lose a lot of money in the short term if you are not careful. And in the chart of the game statistics, if you notice, there are very high growth periods, but also periods of sudden fall.

Unfortunately, the bitcoin had a chaotic promotion. Many said you would win a lot of money over the night. As a rule, these notions are encountered in the pyramid schemes.

In case of bitcoin, the system works differently. It's not pyramidal. It's all about your ability to analyze, understand and invest.

The faster you get, the more you risk losing money. The rules are the same as in the case of stock investments.

1. How has the price of a bitcoin fluctuated in recent years?
   Investing in bitcoin is risky if you follow fast and unprepared winnings. Just a little news about two companies in China that have stopped using bitcoin as a payment coin affected the market by 15-20%.

The market is volatile. In 2013 one dollar cost a few dollars, and immediately rose to $ 900-1000, and after one year it dropped to $ 250-300 as these days to again amount to $ 1,000.

You have to look very good when you want to go into the "mountain". I recommend longer term investments, but with a start in a minimum period.

But if you are a more active type of investor, you can make monthly purchases and sales of coins on good returns.

Bitcoin real time analyzes can be found HERE or HERE.

1. What is the total number of bitcoins in the turbulence?
   It grows year by year also in the interest of investors.

From 2009 to 2017 it reached approx. 17million of bitcoins and, as you can see, the trend is growing quite well. That would be a pretty good reason why the bikin could be a long-term and secure investment.

Details of the number of coins on the market can be found HERE.

1. If they make profit from the sale, they pay taxes and taxes?
   Investments are taxable, just like all other investments. Any earnings are taxed according to your state of affiliation.

It depends on the income statement and the profit is calculated.

1. How do bithoins divide and what do they call bitcoin denominations?
   A bitcoin can be divided up to 8 decimal digits. The good part is that you can buy or sell small amounts (ie less than 1 bictoin) up to 0.00000001 BTC.
2. How can you use it?
   In 4 ways you can use them at this time:

a. To buy with them goods and services. 3 lists of stores in Romania that accept such payment are: List 1, List 2 and List 3.

b. You can buy them from a Bitcoin exchange. Example platform: btexchange.ro.

c. After you buy them, you analyze the market and the charts, and then you can sell them for a profit. Everywhere you bought it.

d. You can earn bitons through a mining process.

About mining you can find more here, but I will write more on the blog.

1. Where do I buy bitcoins in Romania?
   It was a question I solved quite easily. After a few analyzes of the platforms that also have translation and guides in Romanian, I came across btcxchange.ro - the first Bitcoin exchange in Romania.

It is very intuitive and easy to use.