You have probably heard about Bitcoin? However, you’re not sure what it really is, but you would like to learn the Bitcoin basics.
You have perhaps heard that is a digital currency for used in illegal activities, which is the normal misconception.
Bitcoin is emerging as a ground-breaking technology these days, and many are making millions by investing.
So, let’s dive into the basics of Bitcoin.
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The Bitcoin Basics
Commonly known as cryptocurrency, Bitcoins are digital or virtual currency. Typically, this is an online version of money. Powered by Blockchain technology, the money is a decentralized digital currency that doesn’t need any administrator or bank to regulate.
Usually invisible and stored in computers, the currency doesn’t exist in physical format and only exists in a digital format. In other words, the currency can not be withdrawn nor handled by anyone physically.
Often considered the safest form of currency, Bitcoin is ideal in transferring money globally over the internet.
The value of Bitcoins
When virtual currency was launched by unknown persons back in 2009, Bitcoins’ price was worth a few dollars. With the increasing demand for virtual currency, the value of Bitcoins appreciated to a record $19,783 per Bitcoin in 2017 though it dropped to an average of $ 7,000 per Bitcoin in April 2020.
Is it safe to invest in Bitcoins?
Just like any other business venture, investing in Bitcoins may incur loss or profit. Depending on the prevailing market conditions, the value of Bitcoins keeps fluctuating. As a result, you may either make loss or profit.
Generally, Bitcoins are considered a high-risk investment. Highly volatile assets tend to have high returns with a potential of incurring losses. Before venturing into Bitcoin investment, you need to consult a professional financial planner to offer expert advice.
On the other hand, making long-term, cryptocurrency investment is considered less risky. This is because most Blockchain platforms pay high rewards for currencies withheld for a longer period.
However, investing in Bitcoin is worth trying since the cryptocurrency value has been rising over the years. Investing and retailing for a longer period is likely to be profitable if sold when Bitcoins’ price increases.
There exist several types of cryptocurrencies that you can invest in. Before making a decision, it is appropriate to carry out thorough research before investing in virtual currencies.
The use of various online platforms to track the performance and value of various Bitcoins is critical in ensuring you get the right information about the right virtual currencies before investing. Therefore you can get important information related to trading Bitcoin on various Bitcoin trading platforms.
Some of the platforms where you can buy and trade Bitcoins include Coinbase,Coinmama, and Paxful. Such information includes pricing, where to purchase, and the value of every virtual currency you may need.
If you are planning to invest in Bitcoins, Coinbase is the best platform that you should try out. Buyers purchasing on Coinbase for the first time are entitled to $ 10 worth of free Bitcoins. On the other hand, StormGain offers buyers a 15% bonus on the first deposit.
The cost of buying Bitcoins varies from one platform to another. Coinbase, one of the most popular Bitcoin selling platforms, offers $ 10 worth of Bitcoins for new buyers. Comparatively, the platform has the most favorable pricing model for the purchase and selling of Bitcoins.
The main advantage of buying Bitcoins via Coinbase is that they have flexible purchase plans. No matter how expensive Bitcoin can be, you do not necessarily have to buy the entire Bitcoin. You have the discretion to decide the amount you want to spend on buying Bitcoins. In this case, you can buy as little as $ 5 or $ 10 worth of Bitcoins.
Buyers can easily purchase a myriad of cryptocurrencies on the platform. Some of the currencies you can easily purchase include Litecoin, Ethereum, and Bitcoin cash.
The App is already working towards rolling out more virtual currencies for clients. To buy Bitcoins, you have to download a Bitcoin wallet. The Bitcoin wallet is where your bitcoins are stored for future trading.
Buying Bitcoins is not complex since you easily use common payment methods. You can buy Bitcoins through Bank transfer, credit card or debit cards, or easily through PayPal. Alternatively, you can buy Bitcoins from other platforms and secure it on the hardware wallet.
After purchasing Bitcoins, you can easily trade and buy other coins via the coinbase App. The main trading formulae some people use is buying holding then waiting for Bitcoin prices to increase for you to sell.
Chances of incurring more trading costs every often are higher since you will have to incur a service fee in every transaction you make. This is why it is necessary to buy, hold, and sell out the Bitcoins when the prices go up.
The following aspects are key considerations that you should focus on in trading Bitcoins.
Get information about various indicators that influence the price of Bitcoins.
Set your trading limits and determine the extent you want to trade
Put in place mechanisms that will ensure you monitor your trade.
You can opt to close your position to avoid incurring a loss or take your profit.
Consider the most effective Bitcoin trading strategy and master the style.
Under these considerations, you are likely to reduce the chances of making losses and rip high Bitcoin trading returns.
Typically Bitcoin trading relies on demand. When the demand for Bitcoins goes up, the price is likely to increase. The advantage of trading Bitcoin is that it can be traded against actual currencies. Dollars for Euros can be traded through forex, while Bitcoins can be traded in exchange for Bitcoins.
In case you intend to trade other cryptocurrencies that are not available on Coinbase, you can opt to transfer the coins to a different app to trade with your preferred choice of currencies. Ranging from Binance, eToro, Paxful and many others, you can access the platforms and trade with your favorite cryptocurrencies.
Most Bitcoin trading platforms have wallets that you use to store your cryptocurrency. Therefore, you can opt to research and select the most appropriate platform you believe will safely hold your coins.
Keeping records of all the information you want to access the platforms is important to keep track of all the accounts. Losing critical information regarding access to the apps may mean losing all your revenue that you may have generated via the platforms.
Where to spend Bitcoins
Bitcoins are an acceptable currency on various e-commerce platforms. Various online platforms are slowly allowing shoppers to shop or do online transactions using Bitcoins.
Bitcoins can easily be converted to other currencies. In this regard, you can opt to offer it to anyone who needs help. The value of Bitcoins has been going up big time since 2009. This means the future of Bitcoins is brighter.
We hope that you have gained some knowledge and got some new perspectives on Bitcoin.
Bitcoin could be a terrific investment and a great transactional vehicle.
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