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 the last few years. More importantly, you can earn incredible 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 as of September 2017, he is believed to own approximately one million bitcoins worth more than $6 billion.
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 dig deeper into how you can easily make your first Bitcoin trade.
Bitcoin cryptocurrency runs on blockchain technology which is a digital public ledger shared by anyone in the world. This is where you will find your transactions whenever you trade Bitcoins and anyone can use the ledger to verify 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 are usually abbreviated to bitcoin. Mining is another term that is often used and is actually a process performed by the 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 recharge your mobile/DTH directly by paying through bitcoin.
The transaction cost is low compared to PayPal, credit cards and other online intermediaries. Furthermore, 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 due to the common public ledger. You can check the transaction from anywhere and at any time.
Demand is likely to increase as the total production of bitcoins will be limited to only 21 million. Japan has already legalized it, and soon other countries may follow suit, and the price may rise even more.
In the coming days I will talk more about bitcoins where you will learn great things about trading bitcoins. You can comment your views and ask anything relevant to bitcoins.
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