Are you wondering what you should do after acquiring your first Bitcoin? Here is a guide on things you can choose to do.
After buying Bitcoin, one becomes an official member of the Bitcoin network, and their purchase transaction remains a part of the blockchain forever. However, one is left wondering what to do next with the newly acquired digital assets. Below is a guide on some things you can do with this digital money.
Run a Bitcoin Node
Running a Bitcoin node is a step toward developing technological self-sovereignty for being the one who owns the bank. However, Bitcoin nodes are crucial for many reasons since running a Bitcoin node further decentralizes the network. Node operators can easily verify that no one is trying to manipulate the significant rules of Bitcoin, including adding more than 21 million Bitcoins or even double-spending funds. More so, when someone is running a node, they are choosing what rules they want to follow, so if others try to alter the consensus rules, node operators can choose whether to opt into the change or not.
Running a Bitcoin node is highly advantageous because whatever rules the person running the node chooses to follow are equivalent to those of other nodes despite how many Bitcoins they have. So, if you are not using a node at home, you are relying on someone else’s, and if those people decide to change rules and are not comfortable with the changes, it is tough for you.
Setting up a Bitcoin node is a little more complex than withdrawing this digital asset from an exchange because it requires special hardware or a lot of space on a computer.
After buying Bitcoin, you can decide to start home mining which is becoming a common practice since early in Bitcoins history. Miners typically get paid in the formal end energy and add transactions on the blockchain. Some people and sources also suggest that miners are the blockchain writers, and nodes are the readers. What nodes do are verify or read that the miners are writing transactions that follow the rules.
Bitcoin exchanges are supposed to collect personally identifiable information due to knowing your customer and anti-money laundering laws. Even after transferring Bitcoin off a business, personal data such as social security numbers, addresses, and phone numbers sit on the exchange’s server, becoming a honeypot for hackers and governments. If a government summons the business, it knows the amount of Bitcoin owned by each customer.
On the other hand, mining this digital asset is a different story, and running a miner is a great way to acquire this virtual money without going through the same process. Essentially, miners don’t give out all personally identifiable data to an exchange that tracks every amount of Bitcoin purchased and keeps sensitive information on their servers.
Bitcoin trading is another thing you can do with your newly acquired digital assets, and it involves speculating on movements in the price. Bitcoin trading has also traditionally involved buying this virtual money through an exchange, hoping its price will rise in time. However, Bitcoin traders increasingly use derivatives to speculate on falls, fulfilling the costs of Bitcoin volatility.
When you decide that trading works for you, choose an open trading platform, such as bitql, learn what moves Bitcoin prices first, and pick a Bitcoin trading style and strategy. Also, you can decide how to get Bitcoin exposure.
If you have acquired some Bitcoin and joined the Bitcoin network, this article should guide you on what you should do after receiving this digital asset.