Category: Blockchain

Over the years, a lot of people are getting interested in investing in Bitcoin. This cryptocurrency is considered and described as an asset in digital form that can be used as a medium of exchange. Bitcoin is also the most popular cryptocurrency in the market. This digital asset has been proven to be very effective in delivering quality profits to investors. That perhaps is the main reason why a lot of people are getting interested in investing into such investment platform. If you are one of those people who want to enter the world of cryptocurrency, you are in the right place. This article will provide you with beginner’s guide to trading Bitcoin.

Understand the System

First and foremost, one of the important things that you need to do is to understand how bitcoin works. This will serve as your foundation and starting point in your journey as a trader in the realm of cryptocurrency. The transaction of bitcoin consists of a transfer of value between wallets that get added to the block chain. The bitcoin wallets have s secret data named a private key or seed that is being utilized for transaction signing.  This is to protect your account from theft.

The Bitcoin Market

It is also important to know about the Bitcoin Market. Basically, bitcoin trading has seen to be a profitable activity in investment. There are approximately 65,00 transactions using Bitcoin in June of 2014 and 300,000 in June of 2017.

Exchanges

‘For you to be able to invest in bitcoin, you will need a market or an exchange. Crypto trade evolution has drastically changed over time, and so a lot of exchanegs have been made available such as Bitfinex, Kraken, IO, Gemini, BTC-e and so many more. You just have to carefully choose the right one for you.

With the advancement of technology, a lot of things have been digitalized, and one of them is the currency. Now modern currency, better known as a digital currency, is available in the market, and a lot of investors are attracted to it. The most popular and the first digital currency ever introduced in the market is bitcoin. Bitcoin is based on a unique blockchain network and is controlled and managed by the users only as there is no administrative institution or agency which controls bitcoin. Bitcoin has various aspects, and if you are planning to trade with bitcoin trader, you must learn about all its aspects and understand them properly.

What are the vital aspects related to bitcoin trading?

Bitcoin exchanges

Bitcoin exchanges are placed where users can exchange their bitcoin for any fiat currency. Some of the exchanges also allow the users to exchanges bitcoin for other types of digital currencies in the market. The bitcoin exchanges also earn form these transactions as they take about 1% of the value of the transaction being made by the user. These exchanges promote the liquidity of bitcoin as it allows it to be exchanged for other currencies. The price of bitcoins changes frequently, and these exchanges help the users to make a profit from those fluctuations.

Private keys

A unique private key is given to every bitcoin user as the account can be accessed using that key only. No matter how many accounts a user holds, he will be given a unique key for each account. Key is required to make any transaction from the account as, without a key, no one can access your account. Private keys promote the security of bitcoin transactions, but you must be careful in handling it as if you lose the key, all your currency in the account will be blocked, which cannot be recovered.