Bitcoin cryptocurrency is buzzing all over the world whether you are online or in any media. This is one of the most exciting and crazy things that has happened in just the last few years. More importantly, you can make extraordinary profits from Bitcoin trading or keep it for a long time.
You can hear about stocks, commodities, forex, and now a new currency called bitcoin trading that has a huge impact on our lives. In this beginner’s guide to the Bitcoin cryptocurrency, you will be introduced to the Bitcoin alphabet.
About Bitcoin cryptocurrency
The origin of bitcoins is still unknown, but in October 2008, a work was published under the pseudonym Satoshi Nakamoto, which originates from Japan. His identity is still unknown, and as of September 2017, he is believed to have held around one million bitcoins worth over $6 billion.
Bitcoin is a digital currency known as cryptocurrency and it 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 can be confusing for you and you will find it difficult to know about it. However, I will help you dig deeper and learn how you too can easily make your first Bitcoin trade.
Bitcoin cryptocurrency is based on blockchain technology, which is a digital public ledger and is used by everyone around the world. You will find your transactions here every time you trade bitcoins and anyone can use the ledger to check it. The transaction made will be completely transparent and verified by the blockchain. Bitcoin and other cryptocurrencies are parts of the blockchain and are a wonderful technology that only works on the internet.
Basic terms related to Bitcoin cryptocurrency
Before you get ready to own your first bitcoin, it’s best to know the key terms related to bitcoin. 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 emerged. These 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 are usually an abbreviation for Bitcoin. Mining is another term that is often used and is actually a process performed by computer hardware for the Bitcoin networks.
What can be done with bitcoins
You will be able to trade, transact, receive and store bitcoins. You can send it to your friends, request it from a friend and save it in your digital wallet. Even now you can recharge your mobile/DTH directly by paying with bitcoins.
Transaction fees are low compared to PayPal, credit cards and other online intermediaries. In addition, it also protects your privacy that can be leaked online while using credit cards. It is very safe and no one can confiscate or steal the coins. Because of its transparency, the system is also impossible to manipulate because of the shared public ledger. You can check the transaction anywhere and anytime.
Demand is likely to increase as the total production of Bitcoins will be limited to only 21 million. Japan has already legalized it and other countries may soon follow and the price may rise further.
In the coming days, I will talk more about bitcoins, where you will learn a lot about trading bitcoins. You can comment your views and ask anything related to Bitcoin.
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