Bitcoin cryptocurrency is spreading all over the world whether you are on the internet or any other media. This is 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 Bitcoin or you can keep it for the long term.
You may have heard about stocks, commodities, forex, and now a new currency called bitcoin trading that is greatly affecting our lives. In this beginner’s guide to Bitcoin cryptocurrency, you will be introduced to the Bitcoin alphabet.
About bitcoin cryptocurrency
The origin of Bitcoin is still unknown, but in October 2008, an article was published under the pseudonym Satoshi Nakamoto from Japan. His identity is still unknown and he is believed to own approximately one million bitcoins worth over $6 billion as of September 2017.
Bitcoin is a digital currency 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 can be confusing and a bit difficult for you to know about. However, I will help you understand more deeply and how you can make your first Bitcoin trade with peace of mind.
Bitcoin cryptocurrency works on blockchain technology, which is a digital public ledger and is shared by everyone in the world. You will find your transactions here when you trade bitcoins and anyone can use the ledger to confirm them. The transaction made will be fully transparent and verified by blockchain. Bitcoin and other cryptocurrency are part of blockchain and are a great technology that only works on the internet.
Key Terms Related to Bitcoin Cryptocurrency
Before you are ready to own your first bitcoin, it is better to know the basic terms related to bitcoins. It is also called as 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. 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 abbreviated to bitcoin. Mining is another commonly used term and is actually a process performed by computer hardware for the Bitcoin networks.
Things you can do with Bitcoin
You will be able to trade, transact, receive and store bitcoins. You can send it to your friends, request a friend 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. Moreover, it also protects your privacy which can be leaked on the internet while using credit cards. It is extremely secure and no one can confiscate or steal coins. Due to its transparency in the system it is also not possible to manipulate due to the shared public ledger. You can confirm 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 other countries may follow soon and the price may rise even more.
I will cover more about Bitcoin in detail in the coming days where you will learn great things about Bitcoin trading. You can comment your opinions and ask anything related to Bitcoin.
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