When someone mentions buying Bitcoin, many people think it is complicated and avoid getting into it. But buying Bitcoin is a straightforward process that only takes a few minutes.
There are many reasons and advantages when it comes to bitcoin trading.
If you have decided to buy your first bitcoin in this article, we will explain the whole process.
Requirements for buying Bitcoin
Trading, investing and buying Bitcoin does not require much, but only:
- an account in the cryptocurrency exchange service,
- secure internet connection
- payment method (recommended use of personal e-wallet)
- personal documentation to be provided for the protocol of knowing your client (KYC) on the platform
Wallet financing includes credit cards, debit cards and bank accounts. Bitcoin can also be bought on P2P exchanges and special ATMs.
Where to buy Bitcoin?
If you are interested in finding the best places to Buy, Sell and Trade Bitcoin, we recommend one of the most secure and comprehensive trading platforms – CoinBase!
Curent Bitcoin price in NZD
See the current Bitcoin price in currency of NZ dollars here.
How Bitcoin system works?
The Bitcoin system consists of a group of computers called “miners” or “nodes” that run the Bitcoin code and store its blockchain.
The Bitcoin blockchain can be compared to a group of blocks. Each block contains a group of transactions.
All computers running the bitcoin blockchain have the same list of transactions and blocks, and all computers have access to new blocks in which new ones are stored by the transaction.
These transactions are occurring in real-time and anyone no matter they run a “node” of Bitcoin or not, can see these transactions.
The system is so secured that it is very hard to make an attack.
To cheat the system, the individual would need to have control of 51% computing power of the Bitcoin system, which is impossible.
Even if an attack happens, all the bitcoin miners and users that are part of the bitcoin network would just split to a new blockchain, which would result in a waste of time for an attacker.
Bitcoin tokens are kept by public and private keys that are made of long strings of letters and numbers in connection with the encryption algorithm.
Public key work in the same way as a bank account number and serves as the address to which bitcoin is sent.
The private key should be kept and kept secret because it is used to authorize all bitcoin transactions.
We can compare the private bitcoin key with the pin code of your Visa / Master card because they have the same role.
Bitcoin as a payment method
Bitcoin serves as a payment method for various products and services. In addition to online payments, bitcoin is also accepted in many stores on land. You will notice the “Bitcoin accepted” label on many stores.
Payments are made in three ways, which include:
- required hardware terminals
- wallet address
- KR codes
- touch screen application
In recent years, more and more online businesses have added this payment option to their list of accepted payment methods.
Top 10 businesses that accept Bitcoin in NZ
Here is the list of the top ten businesses in New Zealand that accept Bitcoin:
- Auckland City Hotel (www.achhobson.co.nz)
- Abalone Thai Christchurch (abalonethai.co.nz)
- Aurum Auckland jewerly (www.aurum.co.nz)
- Freshstore New Zealand (freshstore.co.nz)
- Future Health Dunedin (futurehealth.co.nz)
- Party Dudes (www.partydudes.co.nz)
- Bookabach (www.bookabach.co.nz)
- Cerebral Palsy Society New Zealand (cerebralpalsy.org.nz)
- Mane Salon Wellington (manesalon.co.nz)
- TreeFellas Auckland (www.treefellas.co.nz)
How to invest in Bitcoin?
Many investors will say that Bitcoin is the digital currency of the future. Many use it because it offers a fast payment system with very low transaction fees.
One of the biggest reasons for the growth of bitcoin is that it acts as an alternative to fiat currencies and traditional commodities such as gold, silver and others.
The US IRS said in March 2014 that all cryptocurrencies would be taxed as if they were property and not currency.
The most popular way to invest in Bitcoin is through the bitcoin exchange, but there are other ways to earn it.
Big jumps in the price of Bitcoin have attracted many investors in the last few years, and this currency has become very popular.
In December 2019, one bitcoin cost about $ 7k, while a year ago the price of psol jumped by 300%, so you could buy one bitcoin for about $ 28k.
Unbelievable isn’t it, and did you know that at the beginning of 2021, the price of bitcoin rose to an incredible $ 68k.
The fact is that Bitcoin and other cryptocurrencies are more popular as an investment value than as a medium of exchange.
Understand the risks
Bitcoin is still new, and many people still don’t understand what it is and how it works. Plus, with the use of cryptocurrencies comes a lot of risks.
Here we have listed a few important things you need to know if you want to involve with Bitcoin, and these include:
- Bitcoin and other cryptocurrencies are high volatile and risky
- Price of Bitcoin is not stable, and can go down and up very fast
- Bitcoin is not regulated in NZ
- If you plan to buy Bitcoin, NZ goverment reccomend Kiwis to use NZ based trading platforms that offers maximum level of protection
- Trading platfroms must be registered by the FSP register (Financial Service Providers)
- Bitcoin trading platforms, cryptocurrencies and the users are often a target of hackers, scams and online frauds
Investing in this cryptocurrency have its own risks.
By looking at a fact that Bitcoin is a big competition to government fiat currencies, and that can be used for any illegal transactions and activities such as money laundering, tax evasion and others.
As a result of that, we can say that it is not stable and it can be regulated, restricted and banned in some countries.
How to mine Bitcoin?
In short, bitcoin mining is the process of solving computationally complicated puzzles that reveal a new block that is added to the bitcoin blockchain.
Bitcoin mining is the procedure by which Bitcoin is released into circulation.
For bitcoin mining various hardware can be used, however, some bring higher rewards than others.
If you also use chips such as application-specific integrated circuits (ASICs) and graphics processing units (GPUs), you can achieve even more rewards.
These mining processors are also known as the Mining Rigs.
Did you know that one bitcoin is divisible by as many as eight decimal numbers, while the smallest unit is called Satoshi?
If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places.
But there is no limit, if miners agree and accept the Bitcoin can be evenly divided into more decimal places.
Frequently asked questions
How many bitcoins are there?
The exact limit on the total number of bitcoins is 20,999,999,9769. At the moment of writing this article, there are 18,925,137 bitcoins in existence. This means that there are only left 2.1 million bitcoins to be mined.
How to sell Bitcoin?
To sell Bitcoin in New Zealand it is a must that you have acess to your private key. If you have your private bitcoin key, the selling will be the simplest and easiest problem to solve. All you need to do is to find online exchanges that support NZD. There are thousands of exchanges to choose from, but the best is to sell on those with (FSP register).
Who has the most Bitcoin?
The Bitcoin owner was it individual or gruop Satoshi Nakomoto owns more than 1,000,000 BTC, which is more that any other wallet adress entity owner. Beside Satoshi Nakamoto there are four other BTC millionaires that own all together cirka 672,000 BTC.