Bitcoin Cryptocurrency continues to be a buzzword on media and the internet. It’s almost a decade since cryptocurrency has been attracting the attention of people over the digital medium. Do you know what cryptocurrency is? Why it is popular these days? The world is first changing with the rise of digital currency like Bitcoin. With the advent of Cryptocurrency, there is a gradual disruption in the traditional currency system and commodity market. The popularity of Bitcoin and Ethereum has proven a genuine interest in the concept.
What is Cryptocurrency?
The cryptocurrency is a virtual currency or digital asset that has been designed to work as the medium of exchange for goods and services via electronic transactions without having any intermediary.
Here, in this virtual currency, the personal ownership records are stored in an online computerized ledger with the use of strong cryptography for securing the transaction records where one can control the formation of additional coins.
This is one of the most exciting and craziest things to have happened in the last few years where the people who avail of cryptocurrency earn awesome returns in the trading and will have the option of keeping it for a long time.
What is Bitcoin?
Bitcoin happens to be the most popular currency these days and it’s the first cryptocurrency to have been traded in the international market. The origination of Bitcoin is still unknown clearly, but in October 2008 a research paper on Bitcoin was said to be published by one Satoshi Nakamoto from Japan. Then, Bitcoin started trading in 2009 for the first time.
Bitcoin Cryptocurrency is a digital currency and has no geographical boundary or is limited to any particular country. Of course, it’s not controlled by any government and you just need an Internet connection to operate this.
Earlier people were familiar with Stocks, Shares, Bonds, Forex, Futures, and Commodities and now they’re getting used to Bitcoin trading. Before dealing with Bitcoin, people should know about the nitty-gritty of Bitcoin Cryptocurrency trading.
What is Blockchain Technology?
Blockchain technology is a type of recording financial transactions that is almost impossible to change, hack or manipulate the system. Bitcoin works on Blockchain technology which is a digital ledger and it is shared, duplicated, and distributed across the entire network of Blockchain worldwide.
The Bitcoin traders can access and know about their transactions sitting remotely and can use the ledger for verification. All the cryptocurrency transactions that are done are transparent and are verified by Blockchain. Bitcoin and other cryptocurrencies come under Blockchain and are an amazing technology that runs over the internet.
If you’re dealing with Bitcoin, you need to be well-versed with specific terms related to Bitcoin. It’s also called BTC and it is a part of Bitcoin. One Bitcoin is equal to 1 Million bits. After the emergence of Bitcoin, there were some other cryptocurrencies evolved such as Altcoins.
These include Ethereum (ETH), Litecoin (LTC), Monero (XMR), Ripple (XRP), and many more. XBT and BTC are the same and are referred to as Bitcoin. There is also another term called “Mining” that is used for Bitcoin. It’s a process utilized by the computer hardware for Bitcoin networks.
How is Bitcoin advantageous and different from the traditional currency?
The first decentralized digital currency is Bitcoin and it’s decentralized because this is not controlled by the bank, government, or any financial institution. It’s an independent and free-floating currency that is only influenced by value only through ongoing economic indicators that also control the rise and fall of traditional currencies.
As the popularity of Bitcoin is steadily increasing, this enjoys significant acceptability worldwide. You can buy any stuff with Bitcoin directly and it can trade in any platforms like CoinBase, Bitstamp, Bitfinex, Kraken, and more.
Here, you need just an internet connection and a wallet, so that you can do peer-to-peer Bitcoin transactions. Most of the transactions are instantaneous and one can make transactions over the internet using a mobile phone with one or two clicks.
The privacy of your transactions is completely secured, even better than any other online mode of payments where there are chances of your sensitive information getting leaked.
During the conventional modes of money transfer, you have to pay specified fees about the volume of transactions you make that are subject to government regulations. In the case of Bitcoin, there are no such regulations applicable and you don’t have to pay heavy fees on transactions.
As you’re the only person who is accessing your electronic wallet, your coins will always stay safe and none can steal your money. Due to its shared public ledger feature, the transactions are transparent and one can verify his/her transaction any time remotely. Bitcoin cryptocurrency wallet is such that your account won’t be frozen.
How cryptocurrencies are traded?
The value of cryptocurrency worldwide has gone up to $2 trillion now. Bitcoin is the largest digital currency and accounts for over 50% of the total cryptocurrency market cap. Ethereum is the second-largest cryptocurrency next to Bitcoin
Today, Bitcoin trading has hit a record high of more than $61,000. The recent surge in the cryptocurrency market cap is largely due to the record surge in the Ether, the second-biggest digital coin.
The major platforms which handle most of the transactions of the crypto market include-Binance, Coinbase, Huobi Global, and Kraken. Binance is the biggest crypto exchange and is regarded as the topmost choice to buy and sell altcoins. Binance makes almost 1,400,000 transactions per second with an average daily of 2 billion.
How Cryptocurrencies can be stored?
There is an important decision to be made. How and where these coins can be stored? Of course, one of the simplest options is to store these coins where you have bought them. But, it’s necessary to choose the stock exchanges carefully.
Due to the popularity of digital currencies, there are so many exchanges coming up every day. But their validity must be checked so that you can avoid scammers.
Another option is to store your coins that are stored on your own i.e. via hardware wallets. The company ledger allows you to store digital currencies. There is large-scale volatility in the cryptocurrency market and it is suited for the long term.