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The Digital Currency Known as Bitcoin

The current trends are digital and they are present in the world of finance as well. Virtual currencies are nothing new today, but a couple of years back they were only distant figments of imagination. Bitcoin, the paragon of virtual currencies, is one of the most popular ones today. It has lots of people looking to join the ranks of Bitcoin users while taking apart the traditional views on currencies.

Bitcoin owes its number of users and traders to its benefits. No banks or other kinds of third parties are tied to Bitcoin, making it a decentralized currency. This means you won’t get any pesky maintenance fees and you’ll be the only one having access to your Bitcoin. Therefore, you are an autonomous user as well.

You can access your Bitcoin with your username and password. The username is something you can make up and the password is a group of digits that is also your private key. Besides a key that you put in a lock to enter the room with your Bitcoin, this key also approves the transactions you make and sorts them out on your ledger. This makes the private key the key that you want to keep private.

The public key is the one you can share with others. The others can be other Bitcoin users or online vendors that accept it as a viable payment method. You can use Bitcoin to buy all kinds of goods and services online and even swap it for another digital currency or fiat currencies if you want to.

However, the profit potential is the one benefit that rules them all. It’s the reason why the number of Bitcoin traders is on the rise. You can learn how to trade or you can go for a trading platform like BitcoinEqualiser that can help you out.

With a mix of data made up of your input as a user and an algorithm, the platform will trade in your stead and make the decisions you set it to. In other words, you’ll need to adjust the settings before trading which is why you’ll need an account and a trading budget. Training with the platform is another thing you’ll need. After your first live session, you’ll be able to experiment with the various settings and profit. With no hidden fees and a 2% commission on profits, this is a platform that’s worth your while.

The blockchain consists of several blocks in which various transactions are packed together. There are three parties involved in the transaction – the miner, the sender, the recipient. Sender and the recipient are the participants, whereas, the miner is the one who validates the transactions. This is how bitcoins are mined.

Acquiring Bitcoin

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Now that you know a bit about Bitcoin, you’ll need to know how to get your Bitcoin. You can use your money to buy it from an exchange. But first, you’ll need to find the right exchange as some of them have a history of being hacked, and these ones aren’t safe to trade on. Alternatively, you can mine Bitcoin, but this can be quite costly as it requires a lot of computing power. Finally, you can get Bitcoin as a gift, but this is something that rarely happens.

Once you’ve got your first Bitcoin, you’ll need some storage. The funny thing about it is that the storage for Bitcoin is also a wallet. But it’s not a regular wallet, it’s a digital one. You’ll come across hot and cold wallets. The former ones store your keys online making them convenient to use for online purchases and transactions, but they are prone to hacker attacks.

This makes cold ones the safer option because it stores your Bitcoin and keys offline. But they aren’t as convenient as their online counterparts. This means you’ll need to pick your wallet carefully, so do your research before sticking to a wallet. Once you’ve got your wallet, and you’re aware of the benefits, you’ll need to be aware of the value of the digital currency, what’s new on the exchange, and more. By keeping track of these things, you’ll be a better trader.

Bitcoin Offers A Safe Payment Gateway

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It offers a very secure transaction system. The transactions made using bitcoins on any exchange platform are completely anonymous. Since bitcoins are decentralized, no government body has hold over them, and thus you can rest assured that no one will be able to track your transaction.

You can store these digital coins in a ‘wallet’ which can be opened only by a unique code. Thus, these wallets help to reduce the risk and provide a safe and secure transaction gateway. Privacy is always a concern of business owners, and bitcoins have always valued the privacy and integrity of the owners.

The best thing about making payments using bitcoins is that it offers a fast, frictionless and cheap transaction gateway. There is no time lag during the processing of the payments. Besides, the service charges are very cheap due to the absence of a third-party processor.

Follow These Bitcoin Trading Tips

Source: techrepublic.com
  • Profits Are Not Guaranteed- Bitcoins are more or less similar to forex CFDs or​ commodities. Therefore, there are chances that the investor may lose as well, and profits in every trade cannot be promised.
  • Do Not Have Unrealistic expectations for profits-​ Novice traders generally have high expectations to earn unrealistic profits as they speculate that they can earn more. Basically, they don’t carry out the financial calculations properly and don’t pay attention to proper tested strategy.
  • Calculate The Risk Factor Properly- High risks are involved in such types of trading options as there​ is no fixed market price and it is not centric to any specific party. Bitcoins are highly volatile and you may lose the entire sum that you have invested. Hence, make sure to calculate the risk present before you. However, remember that bitcoin is the only tool available in the market that can potentially turn your one dollar into a million dollars.
  • Choose Only Trusted Sites- There are various cases when traders are being trapped with​  the help of lucrative trading schemes. It in turn leads to massive loss for the traders. Hence, make sure to trade only on trusted sites.

Final Word

Bitcoins have been around for only a decade now. However, these coins have gained a lot of attention in the last few years. These digital coins are decentralized and offer a safe payment gateway. The first bitcoin was bought at a few dollars but today its valuation stands at more than a million dollars.

Also, the valuation of these coins is deemed to increase greatly in the future. However, remember that no matter how well-versed an investor is with​ bitcoin trading, there are always risks associated with it. Make sure to check the risk percentage and the amount of capital that can be impacted negatively.

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