Buy Bitcoin (BTC): Price, value and price history

Buy Bitcoin (BTC) – Money investments should be diversified. Many go into real estate as an investment, some invest in real estate stocks and more and more also in cryptocurrency. Bitcoin, or BTC for short, is now not only the most well-known cryptocurrency in the world, but is also considered the first cryptocurrency ever. Do you also want to enter the world of digital currency trading? Here you will find answers to all the important questions about the revolutionary currency of the modern era – from its history to the current exchange rate. Welcome to the world of Bitcoin!

Bitcoin (BTC): Facts, Figures & Price

The cryptocurrency Bitcoin is nothing more than digital money. Similar to traditional payment methods, you can use Bitcoin to book hotels online, pay for your morning coffee, or invest money for your retirement. The big difference? The digital currency is not regulated, governed or even manipulated by the state and central bank. It is therefore a decentralized currency whose price is influenced solely by demand and supply. This is made possible by modern blockchain technology.

BitCoin, cryptocurrency & blockchain? What does it mean? Learn more about BitCoin, Cryptocurrency & Block Chain here!

Here are all the facts and figures about Bitcoin (BTC):

  • Cryptocurrency: Bitcoin
  • Inventor: Satoshi Nakamoto
  • Publication: 2009
  • Consensus Algorithm: Proof of Work
  • Maximum number: 21,000,000
  • Average block size: 1.29 MB

Intraday (current daily price during the course)

Here you can see the current Bitcoin rate over the course of the day.

Month: 30 days review on BTC

Here you can see the Bitcoin rate for the last 30 days.

Year in progress: 12 months

Here you can see the Bitcoin price for the last 12 months.

Total runtime

Here you can see the Bitcoin rate for the entire term.

Blockchain explained: blocks, transactions & security mechanisms

Before I explain what you need to buy, sell, and hold Bitcoin, let’s first go over the basic technology – blockchain technology.

Blockchain technology is a decentrally organised database in which all transactions are logged in the form of blocks strung together. A block therefore contains data. What kind of data it is, therefore, varies from blockchain to blockchain. While the Ethereum blockchain also stores the creation and use of dApps and smart contracts, only transactions can be found on the Bitcoin blockchain.

Hash function: content of each Bitcoin block

Each block has an individual hash – comparable to a fingerprint. It not only identifies the block, but also does not allow any manipulation. If the block and its transactions are manipulated afterwards, the hash also changes and thus prevents fraud attempts. In addition to hashes and transaction details, each block also contains the hash of the previous block – another protective mechanism of the blockchain.

So the three elements of each block on the Bitcoin Blockchain include:

  1. Hash
  2. Transaction details
  3. Hash of the previous block

Proof of Work: Consensus Algorithm & Security Mechanism

The hash function thus serves the security of the blockchain. This is supplemented by a second mechanism: Proof of Work. This slows down the creation of new blocks. In Bitcoin, it takes 10 minutes to calculate the required Proof of Work for the creation of a new block. The combination of both security mechanisms ensures Bitcoin’s high security.

Security mechanisms of the BTC Blockchain: Hashing & Proof-of-Work

Peer-to-Peer Network: Decentralization & Mining

Finally, the decentralization of the Bitcoin blockchain also contributes to the security. The only central instance here is the peer-to-peer network, which allows anyone to become part of the Bitcoin blockchain. Everyone who joins the network gets a copy of all blocks and can thus check the blockchain for fraud and manipulation at any time. When a transaction takes place and a new block is created, all participants in the blockchain must first verify the transaction and the view for accuracy, and only then is the block attached to the blockchain.

Each new block must be checked and confirmed by all participants of the network.

Those who actively participate in the peer-to-peer network are called miners. They are the ones who clear the individual hashes with each other. As a reward, they get a certain number of bitcoins, which they can then keep or sell as they wish. This process continues until the maximum number of 21,000,0000 BTC is reached.

Bitcoin Trading: Basics, Wallets & Exchanges

So you’ve now familiarized yourself with the history of Bitcoin and blockchain technology and now you want to invest in Bitcoin? Great! To buy, sell, hold and trade Bitcoin, you need two important elements: a wallet and an exchanger or exchange. Here are all the basics of Bitcoin trading explained!

Let’s go over the Bitcoin wallet first.

What is a Bitcoin Wallet: Overview and Comparison

What is a Bitcoin wallet? A wallet is something like your wallet, your digital purse. You collect your money in it and can spend, exchange or transfer it as you wish. Since it is a digital and decentralized currency, it is up to you to take care of the security of your Bitcoins.

The important thing about the Wallet:

All keys and addresses for your cryptocurrencies are stored here

You need your private key to access your cryptocurrencies. Whether Bitcoin, Dash, Tether or Ripple – you must never lose your key! No key, no coin!

Meanwhile, there are a variety of wallets that you can choose between. They all come with their own advantages and disadvantages. While mobile wallets are considered beginner-friendly, hardware wallets offer the greatest security. Paper wallets are also considered to be among the safest forms of storage, but they are not as practical as online wallets.

So you can choose between the following wallets:

  • Paper wallet
  • Mobile wallet
  • Online wallet
  • Desktop Wallet
  • Hardware Wallet

If you are investing in cryptocurrency for the first time, I recommend using an online and mobile wallet.

Wallet Address, Private Key and Public Key: Definition & Explanation

So when you install your wallet, you will quickly come across the terms wallet address, private key and public key. To take away the confusion, I will now explain all three terms briefly and concisely.

Public key

The public key is comparable to your IBAN. For example, if you expect cryptocurrencies or tokens from someone, you have to give them your public key so that they can send you these coins, tokens and assets.

Private Key

The Private Key is effectively your PIN to access your transactions and cryptocurrencies. Here is very important:

You must never pass on the private key to third parties.

If you reveal your private key to others, they have access to your entire wallet and can receive and initiate transactions. Since the Bitcoin blockchain is decentralized and not controlled by any bank or state, no one will be able to help you in such cases.

Wallet address

The wallet address is a synonym for your public key. However, compared to the public key, your wallet address is shortened. A public key is usually 256 bits long, a wallet address 160 bits.

Buy bitcoin on exchanges: Binance, Kraken & Bitfinex

You have now decided on a wallet? Perfect! Now you just have to fill your wallet! For this, you turn to a so-called Exchanger. This is an exchange where you can buy digital money with FIAT currencies. Once you have bought your coins here, they will finally go into your wallet.

In order to officially participate in the platforms, you must first register and authenticate yourself. For this you need your email address and phone number. These will then be verified.

  1. Enter e-mail address & telephone number
  2. Verification of the e-mail address
  3. Verification of the phone number

The next step is to identify yourself with an ID card, passport or driver’s license. For this verification step, you grab a valid ID document and start the verification process online. Most of the time, you’ll get a little pop-up asking you to start your webcam. The next step is to show your driver’s license, passport or ID card to the camera, clearly legible with front and back. A little tip, you should make sure that you stand in a good light, because the identity documents are evaluated electronically. After a few seconds, the software has scanned your ID document and you are verified.

Finally, authenticate yourself with an identification document…

Don’t worry if it doesn’t work a few times, the first time I registered it took me about 7 tries to finally get my ID document in the camera correctly. In the beginning I tried it with my driver’s license, didn’t work out so well, then later again with my ID card.

Trade Bitcoin: Bitcoin transactions explained

If you want to carry out a transaction via the Bitcoin Blockchain, you need several components. Similar to a normal transaction at the bank, you need the address of the recipient. Normally, this would be the account number. In the case of Bitcoin, this is the recipient’s public address. Then, of course, you need the transfer amount and the public address of the sender account, which is the account you’re sending the money from. Finally, you need your private key to access your wallet and authorize the transaction.

So for a bitcoin transaction you need:

  • Public address of the recipient account
  • Transfer amount
  • Public address of the sender account
  • Private Key to this public address

Bitcoin transaction vs. transnational wire transfer – comparison

In principle, a Bitcoin transaction is not that different from a normal bank transfer. However, a transfer with Bitcoin is significantly faster, more efficient and cheaper, as the chart below shows. Here, transnational transfers are compared in their efficiency with cryptocurrencies.

While international bank transfers take between 2 and 5 days and cost up to 12.5% in fees, Bitcoin transfers only take 10 minutes and hardly charge any extra fees:

  • Duration transnational bank transfer: 2-5 days
  • Bitcoin transfer duration: 10 minutes

Infografik: Bitcoin ist günstiger und schneller | Statista

Investing in Bitcoin and traditional investment vehicles compared

Bitcoin compared to traditional investments: who performs better? After all, the world offers a variety of ways to invest one’s hard-earned money: From rare jewelry and luxury watches, to real estate and EFTs to cars. But how does bitcoin compare to traditional assets? Which is safer – investing in gold or investing in Bitcoin? And is it worth adding cryptocurrencies to your equity portfolio?

Bitcoin or gold?

The Bitcoin enjoys great popularity not only as a modern means of payment, but also as an investment for wealth accumulation. Among supporters of the digital currency, Bitcoin has already established itself as an alternative to gold – even though the precious metal was considered a safe investment in recent decades!

Bitcoin establishes itself as a popular alternative to gold

Granted: Bitcoin and gold have as many similarities as they do differences. Both are only available for a limited time and do not yield interest, but they differ in their physical availability as well as in their acceptance as official means of payment.

So now the question is: Is gold or Bitcoin the better store of value? Here it is a draw. Gold is protected against loss of value and strong fluctuations in value are unlikely, but the forecast for Bitcoin shows an increasingly rosy future. Despite short-lived setbacks, the value is steadily rising and more and more countries are accepting cryptocurrencies as a means of payment. Bitcoin is therefore clearly a very good alternative to the traditional investment medium gold.

Bitcoin or real estate?

Whether Mallorca, Los Angeles or Shanghai – next to gold, real estate as an investment has been very popular for decades. Here, too, the question naturally arises: Is Bitcoin a better investment than real estate? The demand for real estate in the Corona pandemic, and the increase in value of Bitcoins despite the stock market crash has shown how crisis-resistant cryptocurrencies are.

And not only that: In hardly any asset class can so many returns be secured in a short time as with Bitcoin, Ethereum & Co. Of course, this is also accompanied by a high risk of loss, but for those who do not want to get involved so much in highly speculative investments, I recommend entering with little money. Compared to real estate, it is worthwhile here to enter even with small investments!

Here is a recap of the advantages of Bitcoin compared to real estate as an investment:

  • Higher return in less time
  • Practical entry even with little equity capital
  • High crisis resistance
  • Buying and selling less costly than real estate

Bitcoin or stocks?

Finally, of course, there is the question: Bitcoin or stocks? While stocks and shares have long been considered popular investments for wealth protection and accumulation and still enjoy great popularity today (take Gamestop as an example), the popular crypto asset Bitcoin is increasingly outpacing them as well. The biggest difference here, is the market fluctuations. These are significantly greater for cryptocurrencies than for stocks and securities.

Add to your portfolio and benefit from both

So if you already have stocks, it’s completely nonsensical to liquidate them and now completely invest in cryptocurrencies. Instead, I recommend adding cryptocurrencies to your asset portfolio. This way you can profit from the advantages of both asset classes.

So in my company, I drive the following strategy:

In regular times, I invest a maximum of 20% in cryptocurrency.

Future Bitcoins: Price high and forecast

Does the Bitcoin have a future? After cryptocurrencies first became the talk of the town in 2017 and caused a global Bitcoin boom, many were certain that the crypto bubble would soon burst. The last few months show: Wrong thinking. The cryptocurrency boom was never a bubble that threatened to burst. Rather, it was the beginning of a new era! Experts are certain that the value of Bitcoin will continue to rise in the coming years.

Bitcoin will be around $400,000 by 2030

The reasons for the price increase are manifold: These include the increasing acceptance of the cryptocurrency, as well as the easier handling. More and more Bitcoin vending machines are being set up and Bitcoin is becoming more and more popular as a means of payment – both nationally and internationally. The experts also list political reasons. Due to the unstable situation of some countries, more and more individuals will rely on the fast, secure and anonymous transfer of Bitcoin.

You don’t quite believe it? So let’s take another look at the price high immediately before / after Corona:

  • Price high (beginning of 2020): 10,200
  • Price high (beginning of 2021): 46,300
  • Difference: +36,100
  • Price level: 453.9%
  • More about: Bitcoin

BitCoin (BTC) / USD

BitCoin (BTC) / EUR

Bitcoin Alternatives: Ethereum, Dash and Litecoin

The cryptocurrency Bitcoin is now a household name. It is the most popular, but by far not the only one. In the meantime, several new creations have emerged. Some of the others are Bitcoin further developments. There are now over 4,500 cryptocurrencies. Although this sounds like a large amount, only just under 100 of them achieve a daily trading turnover of 1000 US dollars or more. Other popular cryptocurrencies include Ether, Dash and Litecoin.

Ethereum (ETH): Second generation cryptocurrency

Just like other cryptocurrencies, Ethereum is based on state-of-the-art blockchain technology. Ethereum itself is not a pure cryptocurrency, but can be used for blockchain projects of all kinds. As a decentralized ecosystem, Ethereum is therefore also often used as an open protocol for decentralized applications, such as smart contracts. Ethereum’s own cryptocurrency is called Ether – ETH for short.

Dash: Continuation of the Bitcoin

Hardly any coin has managed to grow as fast as Dash! The cryptocurrency is considered the sequel to the legendary Bitcoin. Unlike Bitcoin, Dash has the advantage that the hash algorithms are more energy and time efficient. As with its predecessor, transactions here remain secure, fast and efficient.

Litecoin (LTC): Fast hashing thanks to Skrypt

As a digital currency, you can use Litecoin to pay for services and goods. The cryptocurrency is also very popular as an investment and in currency trading. The special feature of Litecoin: The hash algorithm Scrypt allows an increased transaction speed – while the integrity of the blockchain is still guaranteed!

Trading: Reading tips

  1. Cryptocurrencies: List
  2. Trading App: Recommendation
  3. Trading strategies

Cryptocurrencies: List

BitCoin, BitCoin Cash, Ethereum, Litecoin, Dash, Ripple, Zcash or Binarcy Coin: they are considered the answer to traditional means of payment. The digitization and decentralization of money makes banks superfluous. Only buyers and sellers are responsible for the control and security of their digital money. You too want to invest in Bitcoin & Co? We have an overview of the most popular cryptocurrencies here.

Trading App: Recommendation

eToro App – Trade stocks, ETF, cryptocurrency, in my blog you have already learned a lot about trading. Lots of questions of course: which app do you trade with, what do I recommend? So today I want to share with you my favorite trading app, eToro. 29.88% asset growth in 12 months, with low risk through “Copy People” and “Copy Portfolios” or up to 127.35% through active trading and trading strategies. Learn about the app, fees and more here step by step.

Trading strategies

Whether it’s crytocurrency, currency trading, stocks, commodities or precious metals, these 3 strategies will help you understand the basic stock market game. I developed these 3 strategies to help beginners and novices understand the mechanics in a nutshell. Since I grew up with bitcoin rather than stocks, here in particular a strong reference to digital currencies. But the mechanisms or strategies are the same for these 5 investment types: crytocurrency, currency trading, stocks, commodities or precious metals. I would exclude ETF and index funds here, as the risks and price fluctuations are significantly lower here.