Bitcoin and Cryptocurrency: For Beginners

If you’re interested in finance and the world of money then bitcoin and cryptocurrency should be on your radar.

While bitcoin and cryptocurrencies may not be considered a “hobby” by most, there is undeniably a subculture of enthusiasts occupied by every aspect. As new legislation gets passed and this asset finds its legs, it has slowly been creeping its way into our everyday conversations and lives.

Buckle up, there is a lot to learn about bitcoin and cryptocurrencies.

photo credit: André François McKenzie

What is Bitcoin?

Bitcoin is a digital currency created for use in online peer-to-peer transactions without the need for a third-party bank, government or intermediary . Transactions are verified by network nodes through online cryptography. From there they are recorded on an online public ledger called a blockchain.

Bitcoin was created by a group or individual under the pseudonym Satoshi Nakamoto in 2008. Since then bitcoin has risen in price and popularity worldwide.

Key Features of Bitcoin:

Decentralized – Bitcoin is trusted and tracked by an immutable ledger where transactions can be viewed publicly, eliminating the need for third-party banks or governmental control.
Peer-to-Peer: Secure payments are transferred from one person to another, without the need for a bank or middle-man to process payment transactions.
Low-Fees: Bitcoin can be sent to anyone in the world quickly and typically for cheaper than a bank to bank transfer.
Fixed Supply: There will only ever be 21 million bitcoin in existence. Bitcoin is more resistant to inflation due to its inherent limited supply.

Where Can I Buy Bitcoin?

There are several trusty options for purchasing bitcoin and other cryptocurrencies on the internet. We’ve included a few of the best options currently available for U.S citizens to purchase and trade bitcoin here:

Coinbase is far and away the most trusted and secure website currently available for U.S citizens to purchase and trade bitcoin and other cryptocurrencies.

Once you have verified your identification and linked your bank account you are able to trade and make purchases.

Despite relatively high trading fees, Coinbase is our favorite spot to purchase bitcoin due to it’s ease of use and user-friendly interface.

Binance is a chinese based cryptocurrency trading platform regarded as the most reliable world-wide platform.

While Binance has recently opened its doors to U.S investors with the development of their United States oriented platform Binance.US.

Currently, Binance.US offers access to the greatest variety of cryptocurrencies on the united states market.

Cash App is a product of Square, a sleek finance and POS app that has gained popularity over the last several years.

If you are looking for a more simplified, mobile interface to purchase bitcoin, Cash App is for you. Cash App is also a great way to simply transfer money to friends on a mobile interface.

Cash App also offers a debit card like card with promotional boosts and discounts.

Robinhood is another mobile app that makes buying bitcoin a breeze. A simple, modern looking interface to purchase bitcoin and other cryptocurrencies. Robinhood also offers typical stock trading with minimal fees.

Robinhood allows you to buy and sell several cryptocurrencies but currently does not allow you to send or receive crypto similar to other crypto wallets.

For this reason we would advise against buying and holding your cryptocurrency on Robinhood’s platform.

Check out our list of the 10 Best Crypto Apps for Newbies for more recommendations here…

Where can I spend Bitcoin?

Currently, Bitcoin and cryptocurrency can be spent at a variety of online retailers. More and more companies have started accepting digital currencies all of the time.

Websites such as Overstock.com have accepted bitcoin payments for several years as well as Travel sites such as Expedia and CheapAir. Last year there were rumors of Starbucks looking into payments with bitcoin, but this has yet to be seen.

There are many philanthropic organizations that accept bitcoin for donations. In the last several years, many politicians have turned to bitcoin as a way to raise campaign funds.

The most common form of payment transaction with bitcoin today remains peer-to-peer transactions for goods and services. This allows payment between individuals without the need for a third-party intermediary.

photo: André François McKenzie

How can I protect my cryptocurrency?

It is essential to protect your crypto assets. While many people keep their cryptocurrency on exchanges for easy access, this is not a best practice! Recently we have witnessed exchange FTX crash and run away with investors funds!

It is recommended to use a cold or hot wallet to protect your assets.

A hot wallet is a wallet on your mobile device which holds your assets and connects to the internet. A few examples include Exodus, Coinbase Wallet and TrustWallet.

A cold hardware wallet, is the best and safest way to protect your crypto assets. Devices like the Ledger Nano X or the Trezor Hardware Wallet keep your funds safe and secure as long as you (and no one else) have access to your recovery phrase.

Be sure to purchase your hardware wallets directly from the retailer or company website to avoid scams!

Check out a quick unboxing of the Ledger Nano X Crypto Hardware Wallet here:

What is the future of Bitcoin?

Over its ten year lifespan bitcoin has seen its share of ups and downs.

Not only in price but in sentiment and interest.

At its previous height in 2017, bitcoin reached a US dollar evaluation of nearly $19,800. Bitcoin enthusiasts continue to speculate about the next ATH (all time high) price, while skeptics say that the bubble has popped.

Bitcoin has reached its newest all time high of approximately $69,000 in November of 2021 (According to CoinMarketCap.com) and continues to grow in popularity as countries like El Salvador adopt the currency and with the recent launch of an Exchange Traded Fund in the US.

The world of bitcoin and cryptocurrency is truly a hobby of its own. Monitoring and following the daily ins and outs of bitcoin and cryptocurrencies can be a fun and exciting pastime.

Don’t have money to invest in bitcoin and cryptocurrency?

Check out our Side Hustles post to make some extra cash for investing!

This article is not financial advice and we at Fresh Hobby are not financial advisors. We aim to educate and offer an avenue to learn more about hobbies and interests, not to advise financially.