What is Bitcoin?
What is Bitcoin? Bitcoin is a virtual or digital currency, it uses peer-to-peer technology to make instant buying and selling possible. It was created in January 2009 by Satoshi Nakamoto, whose true identity is still
What do we mean by Bitcoin Exchange?
What we mean by Bitcoin exchange is a digital market or virtual platform where the buyers can
meet the sellers, or if I use the cryptocurrency language, the makers meet the takers, and make
trade possible by using different fiat currencies or altcoins. All the cryptocurrencies have tickers or symbols that represent them, Bitcoin ticker or symbol is XBT or BTC. BTC however is more popular than XBT, because it is widely used.
Understanding the Bitcoin Exchange
It works like a normal stock exchange; traders have the option to buy and sell bitcoins
by using one of the two options:
1) The market Order; when this option is selected the trader authorizes the
exchange to buy or sell his coins for the best price that the market offers.
2) The limit order; with this option the trader lets the exchange to trade his coins for
a price that’s either below the market price or above the market bid, it usually
depends on what the trader wants to do with his coins, are they buying or selling.
In order to transact in crypto market, a person should first create an account and verify
their identity. After successfully doing that the person must fund his account, that would
enable him to buy coins. Like other brokerages traders can deposit money using
different means like bank transfers, or wires. Sometimes the traders are charged for
these services. Conversion fees is charged for trading between cryptocurrencies.
Why is Bitcoin gaining popularity?
The growing popularity of Bitcoin is directly proportional to the world’s dependence on
the internet. Bitcoin is open to anyone who is interested to buy. It is secure, and it can be traded anywhere in the world that is why investors, who know how it works, think it is the most valuable asset to own.
Why Invest in Bitcoin?
When some people are told the price of a Bitcoin, they find it difficult to believe that it
could cost thousands of dollars. Since Bitcoin is both scarce and useful that is why it is
so expensive. It is like gold or any other precious metals, there are very limited amount
of precious metals that is what makes them precious and valuable, likewise there are
only 21 million Bitcoins on earth, that is why Bitcoin is valuable.
One of the best traits of Bitcoin is sound monetary policy. It’s possible to keep track of
the bitcoins in circulation, and to see when new bitcoins are created. Bitcoins can be
sent from one country to another country without any problem, banks cannot interfere in
that process. Bitcoin is censorship resistant money.
Cross border payments are easier with bitcoin. With the internet it is possible to access
any information anywhere in the world, and a sound global currency like bitcoin can
have a huge impact on the world economy. If anybody has a good knowledge of the
world economy and the impact of a stable currency like Bitcoin on the global financial
market, it would not be too difficult to understand why investing in Bitcoin might be a