When one talks about cryptocurrency, Bitcoin is the obvious reaction they get. Everyone relates the financial market by its first digital coin, Bitcoin. The cryptocurrency has high market popularity and active traders.
But that’s all most of us know. To understand what is Bitcoin in actual we have a brief discussion. A simple beginners guide that will help them make their trading more efficient and successful.
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What is Bitcoin?
Bitcoin is a cryptocurrency. The coin has control of no government body, financial institutions and any kind of authority. A decentralised virtual currency with anonymous owners globally.
The digital coin uses blockchain technology and encryption keys. The technology connects the buyers and sellers of the coin in the market. Also, traders can mint the coin to create new coins and keep the circulation of coins moving.
It was created in 2009 to be an electronic peer-to-peer cash system. However, it attracted crypto investors as a store of value currency.
A digital coin that has high market popularity and a great number of active traders.
History of Bitcoin
The value that holds in the world is not easy to understand. Therefore, to have good trading of the coin and know what value it brings to the world we have to know the history it holds.
The coin was available in public in 2009 and is the first established digital cryptocurrency. It was the creation of an anonymous group called, Satoshi Nakamoto.
Bitcoin whitepaper gives details on the working of the coin. It is an academic document with details of the coin. It states that the goal of Bitcoin is to create a peer-to-peer electronic cash system.
The system is completely decentralised and does not involve any government authority. Besides, mining Bitcoin requires a heavy amount of energy. Nakamoto shared the source codes and domains in the whitepaper/ Bitcoin community.
However, there is no communication from Nakamoto any such after the creation.
How Bitcoin Works?
Bitcoin is the mined coin which is created after solving complex mathematical puzzles through scientific computers. These are not like printed paper money. The maximum supply of is 21 million and that’s what it will ever be.
Satoshi Nakamoto set the parameters for the coin. These facts cannot be changed by anyone else. A creator decides how many coins there will be, the coins, rules of buying and selling, Bitcoins added in the marketplace and other aspects.
From the start the total amount of coins to be created has been locked. The rules make a scarce resource. They have a fixed number of coins that are available for the traders.
They cannot be duplicated or recreated by anyone, not even by Satoshi.
This is the reason why Bitcoin is compared to gold. Gold is created and founded as an ore continuously but is a scarce resource. Bitcoin is transferable and easily stored when compared to the resources.
Moving gold will cost one a lot of money but with Bitcoin it is easy. They can store it easily on cold or hot wallets.
How to obtain Bitcoin?
Traders can easily buy Bitcoin from reputable brokers or cryptocurrency exchanges. There are many good places to trade coin with different currencies. Besides, the exchanges and brokers provide advanced services to support their clients.
The Bitcoin wallets, and other crypto wallet facility is available to store the coin. Thus, high security is maintained. Traders are provided a private key to securely keep their coins and should not share it.
Every country has their various exchanges and brokers with the best of services. However, traders should be alert of the scams and frauds online.
In addition, the ATM facility for trading coin is next level. Traders can easily use their card to buy and sell coins. The USA and UK have such advanced facilities for their traders.
Bitcoin is the first digital currency and the beginning of a decentralised market. Traders can easily trade in coin by buying and selling them through brokers and exchanges.
Cryptocurrency market came to life with and is said to be the future of the financial world. Traders can actively invest in Bitcoin to make profitable investments. It holds a good history in the cryptocurrency market bringing it to the financial world.