Bitcoin cryptocurrency is buzzing all over the world, whether you are on the internet or any medium. It’s one of the most exciting and craziest things to happen in just the last few years. More importantly, you can earn great returns by trading bitcoins or you can hold it for the long term.
You may hear about stocks, commodities, Forex, and now a new currency called Bitcoin trading that is greatly affecting our lives. In this beginner’s guide to the Bitcoin cryptocurrency, you will learn the ABCs of Bitcoin.
About Bitcoin cryptocurrency
The emergence of Bitcoin is still unknown, but in October 2008, a paper was published under the pseudonym Satoshi Nakamoto from Japan. His identity is still unknown and he is believed to have around 1 million bitcoins worth more than $6 billion as of September 2017.
Bitcoin is a digital currency popularly known as cryptocurrency and is free from any geographical boundaries. It is not regulated by any government and all you need is an internet connection. As a beginner, Bitcoin technology might confuse you and it is a bit difficult to know about it. However, I will help you delve deeper and how you can easily do your first bitcoin trading.
Bitcoin cryptocurrency works on blockchain technology which is a digital public ledger shared by everyone in the world. This is where you will find your transactions whenever you trade Bitcoin and anyone can use the ledger to check it. The completed transaction will be completely transparent and verified by the blockchain. Bitcoin and other cryptocurrencies are parts of the blockchain and are a great technology that only works on the internet.
Key terms related to the Bitcoin cryptocurrency
Before you are ready to own your first Bitcoin, it is better to know the key terms related to Bitcoins. It is also called BTC which is part of bitcoin and 1 bitcoin is equal to 1 million bits. With the advent of bitcoin, some other alternative cryptocurrencies have also developed. They are popularly called Altcoins and include Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Monero (XMR) and many others.
XBT and BTC are the same thing and commonly abbreviated to bitcoin. Mining is another term that is often used and it is actually a process performed by computer hardware for Bitcoin networks.
Things you can do with Bitcoin
You will be able to trade, transact, accept and store bitcoin. You can send it to friends, request it from friends and store it in your digital wallet. Even, now you can directly recharge your mobile/DTH by paying through bitcoin.
Transaction costs are low compared to PayPal, credit cards and other online intermediaries. In addition, it also protects your privacy which can be leaked online while using credit cards. It is extremely secure and no one can confiscate or steal the coins. Due to its transparency in the system, it is also not possible to manipulate because of the shared public ledger. You can confirm the transaction from anywhere and at any time.
Demand is likely to grow as the total production of bitcoins will be limited to only 21 million. Japan has already legalized it, and other countries may soon follow suit, and the price may rise further.
In the coming days I will cover more about Bitcoins where you will learn great things about Bitcoin trading. You can comment your views and ask anything relevant to bitcoins.
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