Bitcoin price (BTC)
About Bitcoin (BTC)
Bitcoin is a widely used and globally recognized cryptocurrency. According to experts, cryptocurrencies are virtual currencies secured by cryptography, making them almost impossible to counterfeit or double spend.
Bitcoin was the first cryptocurrency introduced in 2008 by a group of unidentified individuals and officially launched in 2009. Like many other cryptocurrencies, Bitcoin leverages a decentralized network based on Blockchain technology – a distributed ledger enforced by a disparate network of computers.
Unlike the U.S. Dollar or the Euro, there is no central authority (National Reserve or Central Bank) that issues manage and maintain the value of Bitcoins, rendering them theoretically immune to government interference or manipulation.
Other key characteristics of Bitcoin include: the anonymity of users – no personal details are required to transact – faster and cheaper payment processes, high portability, and secured transactions.
Since Bitcoins are digital cash, they can be used to buy products and services. However, Bitcoin transactions are not allowed or legalized in many parts of the world, but its influence is growing rapidly.
How To Buy/Sell Bitcoin
Bitcoin trading entails buying the digital currency when its price is low and selling when it is high. Trading also predicts price movements by studying the industry as a whole and price graphs in particular.
There are two main approaches people use to analyze Bitcoin price – fundamental analysis and technical analysis. A lot of time, money, and effort is required to trade Bitcoin successfully.
However, becoming a trader is quite easy; all you need to do is follow these steps.
- Choose a Bitcoin Exchange: Opening an account on a Bitcoin exchange allows you to buy, sell, and hold a cryptocurrency. It is generally best practice to choose an exchange that allows users to withdraw their crypto to a wallet for safer keeping. There are various types of Bitcoin exchanges – Kraken, Binance, CEX.io, Coinbase, etc.
- Verify Your Identity: After choosing a bitcoin exchange to trade on, the next step is to verify your identity – provide certain information as required by the exchange; this may include pictures of a driver’s license, social security number, and information about your employer and source of funds.
- Connect Your Exchange to a Payment Option: Once the exchange has ensured your identity and legitimacy, you can now connect a payment option, which could either be your bank account or a debit or credit card. It is crucial to know the fees associated with each payment option to help choose an exchange or choose which payment option works best. Once all these steps have been completed, you can start purchasing Bitcoin.
Currently, Bitcoin is the world’s largest cryptocurrency by market capitalization. It is legally and widely accepted in several countries, including the U.S., and its influence is rapidly expanding. Investing in Bitcoin allows you to enjoy anonymity, cheaper and safer transactions, and use the currency to purchase almost everything. However, like any other asset, bitcoin is not devoid of risks.