Bitcoin Trading | Bitcoin

Bitcoin is the world’s first digital currency and used as a worldwide payment system. It is cryptocurrency. Bitcoin is peer-to-peer digital currency and this transaction take place between users directly through cryptography. It was released as open-source software in 2009 by ‘Satoshi Nakamoto’. Some rumors also said that the Bitcoin was made by an unknown person and ‘Satoshi Nakamodo’ is just a group of people. The transaction works without an intermediary. Every transactions made by Bitcoin are verified by the network nodes. It is recorded in a public distributed ledger, which is known as a Blockchain. Bitcoin is completely an electronic form of money and not a physical coin; and nowadays it is using worldwide for transaction as we discuss.

Are Bitcoins Secured?

As it is an electronic currency so there is a problem of illegally copying of this currency. So preventing this, it uses network nodes in which it verifies every transactions of Bitcoin and recorded in public distributed ledger, Blockchain. For example, if I sent five Bitcoins to my friend from my Bitcoin address to my friend’s Bitcoin address. This transaction will be note and verified in a Blockchain and after the transaction, I haven’t any right on that five Bitcoins which transferred from my wallet to my friend’s wallet. So yes, we can say that Bitcoins are totally secured. But as we know technology is changing faster so we cannot give you assurance that Bitcoin are safe and always be safe.

Bitcoin Mining

Bitcoins are actually created as a reward for a process known as Mining. It can be exchanged for other countries, services, products etc. Over 100,000 merchants and vendors, in February 2015, accepted Bitcoin as a payment. And as we know that Bitcoin can also be held as an investment. Mining is a record-keeping service which is done by the use of computer processing power.

Transactions and Transaction-Fees

The transferring of Bitcoins from person to another is known as transactions. When a user sends Bitcoin by their wallet to someone else’s wallet, it uses the Bitcoin Address. Bitcoin address is a unique address of every user. 

Transaction consist one or more inputs and also one or more outputs. Since, transactions can have multiple outputs, users can send Bitcoins to multiple recipient in one transaction. If any input satoshis not accounted for in the transaction outputs become the transaction fees.

Transaction fees are optional. Transaction fees are based on the storage size of the transaction generated.

How to Get a Bitcoin Address?

In order to send or receive Bitcoins you will need to have your unique Bitcoin Address. If you want your unique Bitcoin address, you either download the bitcoin client or by getting an online wallet. There are two most popular Bitcoin Clients are:

• Bitcoin-qt
• Multibuilt

The main difference between these two clients is just the size of their blockchain that you need to be downloads. You need at least 10 Gigabyte (or 10 GB) of free hard disk in your system, to download the Bitcoin.

Where will your Bitcoin Stored?

When you downloaded the Bitcoin from one of the above client, after installing you will see the file called wallet.dat. The Bitcoins will also be stored in online wallet. There are some of the popular, specialized and safe websites in which you can store your Bitcoins securely.

If you want to store small amount of Bitcoins then online wallet is the best option for you. By using the online wallet you can easily use your Bitcoins for purchase. Bitcoin exchange is considered much safer place than online wallet.

Why You Have to Trade Bitcoins?

Bitcoin available 24/7

As you know that the stock markets closed in limited time but if you use Bitcoin so you will trade anytime. Unlike stock markets, Bitcoin have no official exchanges. There are thousands of exchanges in Bitcoin. There is no official Bitcoin price because there is no Bitcoin exchange.

Bitcoin is World wide

Bitcoin is not a physical currency but it is an electronic currency. It is currently increasing. The popularity of Bitcoin is extremely high. By using Bitcoins, you can trade anywhere in the world. No country actually declared that Bitcoin is Illegal. So until countries are not declaring this currency illegal, so you can use it anywhere.

How to Trade Bitcoin?

There are many websites for trading Bitcoins but we will not taking one website to explain. We simply explain you without any specific site. If you want to choose a website then simply search it and be sure to check it totally before signing up.

Open an Account

This step takes only few minutes. When you decide the exchange which you want to use for your Bitcoin, just sign up and make an account. You will need an IG trading account because you cannot buy or sell Bitcoin, you will not need an exchange account. You will need to confirm your account by email. Once you logged in and verified your details you will access your account.

Research

Before buying or trading the Bitcoins: firstly do research. Check the price of Bitcoins and news related to Bitcoins so you will get to know about the universe of Bitcoins. Don’t our, read others blog also related to this topic. May be you get something more. The point we want to tell you is to research as much as you can. Because it is new universe, so any feature can affect its price. You can observe the charts or many facts related to Bitcoins.

Strategy

After observing the all facts and figures related to new Bitcoin, you can make a strategy for trading. The only person who can make your strategy powerful is – You. You are the one who can understand your thinking better than anyone. Plan your strategy on your plans with keeping the facts and figures in your minds.

Risk Management

Before trading with Bitcoins, make a backup plan. It is a game of Profit and loss and there is no guarantee that you always win so always keep in mind that you can also lose and if you lose how you could deal with it. Never invest more than required on specific investment.

Benefits of Bitcoins

There are some benefits of Bitcoins:

Safe

Bitcoin is actually considered a safe currency because no one can steal it from you. Some website like PayPal allow you to t claim your money back but it takes long time.

Simple

Bitcoin is very simple currency. You can use it electronically and worldwide.

Easy to Carry

You can carry your electric currency easily either in wallet or online. And you can use it anywhere and anytime for purchase.

Risks of Bitcoins

As in every investment there are some risks in Bitcoin:

Easy to Lose

You can easily lose your Bitcoin. Unlike Credit card, it you CD is stolen then there is a chance that you will not lose you money but if your Bitcoin wallet gets hacked then you cannot get it back.

Trading is Actually Hard

Bitcoin trading is getting harder and harder at every moment and people seem it difficult to trade in this fast changing investment world.

Newness

Bitcoin trading is new and most of the countries are still not sure that Bitcoin is safe or not, so this may be the biggest risk in Bitcoins.

Lack of Stuff

Yes, you cannot buy everything by Bitcoin because there are not much shops which accept BItcoin for payments.

 

Risk and Benefit Both

There is one feature which act as a benefit in Bitcoin trading and also a risk. It is:

Untraceable

• (Benefit) You don’t need to afraid that some organization or someone is tracing your Bitcoins because it is untraceable. This is the best point for governments, so they will never be traced by anyone.
• (Risk) If Bitcoin is start using in the selling and buying of Drugs then it will become very tough for the government to track those authorities who are smuggling because Bitcoins are untraceable.

Last

After all, I think you understand everything about Bitcoin Trading. So if you like this article, then share it to your friends and comment below if you have any question related to this topic…

Thanks for reading…