Understanding What Bitcoin Is

Bitcoin is a decentralized virtual currency that allows people to securely send and receive money in the form of Bitcoin without needing to trust a third party to verify each transaction.

For example, when you send money through PayPal, PayPal is acting as a trusted intermediary between you and the person or business you're sending money to so neither party gets ripped off. They execute the transaction and take a fee in exchange for their services.

With Bitcoin, person-to-person transactions are verified by a network of computers, also known as miners, that reach a consensus regarding the validity of each transaction.

If the miners agree that your transaction is valid, it is executed and recorded in the global public Bitcoin ledger that anyone can access and view.

Bitcoin miners are rewarded with a small transaction fee and a share of newly minted Bitcoins.

Resources:

• Bitcoin Whitepaper - The original whitepaper published by Bitcoin's creator, the anonymous Satoshi Nakamoto on Oct 31, 2008.
• lookintobitcoin.com - an excellent resource for Bitcoin data insights
• Raoul Pal on Bitcoin - Highly recommended viewing. Raoul Pal explains how and why Bitcoin is an attractive investment, particularly for institutions.

Still confused? Join the CryptoSlackers chat group and post your questions in the #ask channel!

Is Bitcoin a good investment? If so why?

There are two common ways to evaluate an asset: fundamental analysis & technical analysis.

Fundamental Analysis seeks to assess the value of an asset-based on variables outside of its price history. In the case of Bitcoin, relevant variables would be Bitcoin's usefulness, adoption, security, and the world's macro-economic state.

Technical Analysis seeks to predict the value of an asset based on its historical price. As a beginner, understanding Bitcoin fundamentals is important to being comfortable investing in it.

Resources:

• CryptoSlackers Bitcoin Fundamental Analysis - Forrest's Fundamental Analysis of Bitcoin
• DataDash Bitcoin for Beginners - A mix of Technical and Fundamental Analysis
• When Can Bitcoin Realistically Reach $1 Million? - A bit more advanced, but excellent analysis by Benjamin Cowen.

Where and How to Securely Purchase Bitcoin

Gemini

For US citizens, Gemini is widely considered the most secure and regulatory compliant exchange for purchasing Bitcoin (and other cryptocurrencies). You'll need to create an account and submit a photo of yourself and your ID to pass KYC (know-your-customer) verification. This identification process is enforced by the government to prevent money laundering and is standard practice on all reputable exchanges.

Bonus tips:

• Join the CryptoSlackers chat group and check the #referral-links channel for a referral code to get $10 in Bitcoin after signing up.
• Gemini charges 1.49% fees on transactions, but you can easily request an ActiveTrader account and lower your fees to ~0.35%
• You can connect your bank account and deposit USD with an ACH transfer. Gemini will then let purchase cryptocurrency immediately, but will not let you withdraw it until your ACH transfer clears after several business days.

Cashapp

If your a casual investor and just want to easily dollar-cost average into Bitcoin with recurring purchases, you can easily set this up within Cashapp. Cashapp's transaction fees are a bit higher (1% - 3%) and are hidden in the spread which means if the market price of Bitcoin is $15,000, they may charge you a higher price of say $15,200. Regardless, it's a very easy and convenient way to purchase Bitcoin regularly.

Celsius Network

Celsius Network is a crypto lending app that has an excellent fiat to crypto on-ramp with very low fees (0.1% and a small spread) when you connect your bank account and purchase with an ACH transfer. They also pay roughly 6% annual interest on whatever Bitcoin you hold with them.

Resources:

• Cryptoslackers Dollar Cost Averaging into Bitcoin - Where and how to set up recurring Bitcoin purchases.
• Celsius Network Review - Learn about how Celsius Network works and is able to pay you interest on your Bitcoin.