Bitcoin cryptocurrency is buzzing all over the world, whether you are on the internet or in any media. It’s one of the most exciting and crazy things that has happened in just the last few years. More importantly, you can get incredible returns by trading bitcoins or you can hold it for a long term.
You may hear about stocks, commodities, forex and now a new currency called Bitcoin trading that greatly affects our lives. In this beginner’s guide to Bitcoin cryptocurrency, you will learn the ABC’s of Bitcoin.
About Bitcoin Cryptocurrency
The origin of Bitcoin is not yet known, but in October 2008 an article was published under the pseudonym Satoshi Nakamoto, which he had from Japan. His identity is still unknown and he is believed to have approximately one million bitcoins worth over $6 billion as of September 2017.
Bitcoin is a digital currency popularly known as cryptocurrency and it is free from any geographical boundaries. It is not regulated by any government and only an internet connection is required. As a beginner, Bitcoin technology can confuse you and it is a bit difficult to know about it. However, I will help you go deeper and how you too can make your first Bitcoin business with ease.
Bitcoin Cryptocurrency works on blockchain technology, which is a digital public ledger shared by anyone in the world. You will find your transactions here whenever you do any Bitcoin trading and anyone can use the ledger to verify it. The transaction made will be completely transparent and will be verified by blockchain. Bitcoin and other cryptocurrencies are the parts of blockchain and are a great technology that only works on the internet.
Key terms related to Bitcoin cryptocurrency
Before you are ready to have 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 equals 1 million bits. With the emergence of bitcoins, some other alternative cryptocurrencies also evolved. 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 used a lot and is actually a process done by the computer hardware for the Bitcoin networks.
Things you can do with Bitcoin
You will be able to trade, transact, accept and store bitcoins. You can send it to your friends, request it from a friend and store it in your digital wallet. Even now you can recharge your mobile/DTH directly by paying via 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 capture or steal coins. Due to its transparency in the system, manipulation is also not possible due to the shared public ledger. You can verify the transaction from 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 follow soon and the price may rise further.
I will cover more information about Bitcoins in detail in the coming days where you will learn great things about trading bitcoins. You can comment your views and ask anything relevant to bitcoins.
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