Bitcoin is a form of digital currency that’s created and distributed electronically by and to people from all over the world on a technology called the blockchain. Bitcoin is often referred to as cryptocurrency, meaning it is a currency that uses cryptography to secure transactions, control the number of units, and to verify transfer of ownership. Bitcoin was created in 2009 and is dubbed the first decentralized cryptocurrency, as it became a huge success throughout the world. The creator of Bitcoin goes by the name of “Satoshi Nakamoto”, and it is unknown whether this is one person or a group of software developers. Nonetheless, Bitcoin is a decentralized cryptocurrency, which means that no single entity controls the number of Bitcoins or distribution of the currency and its wealth.
While Bitcoin’s intended purpose was to be a digital currency in which anyone could acquire and use for the purchasing of goods and services, it has recently been thought of as “digital gold.” This is because Bitcoin has obtained a great deal of value and it continues to rise, and likely will for the years to come. A large contribution to Bitcoins continuous rising is due to the fact, that there will only ever be 21 million bitcoins ever created. As well, Bitcoin is largely used as a means of exchange for purchasing other cryptocurrencies. One must obtain Bitcoin before purchasing many, if not most other types of cryptocurrency. This has led to it’s current value as well. Bitcoin can be purchased and traded in various ways, check out the section below to learn more.
The current live price of BTC/USD:
How to Trade Bitcoin
Trading Bitcoin is becoming more and more mainstream as people realize the profit potential and benefits Bitcoin’s blockchain technology presents. For this reason, many brokers, businesses, and exchanges have made it much simpler than it once was to obtain and trade Bitcoin.
CFD Trading with Bitcoin
Traders can trade Bitcoin without purchasing any of the underlying asset, eg, they will never take physical hold of the asset. Rather they will speculate on the price movements of the asset Bitcoin, through a trading method called Contracts For Difference (CFD). Some cryptocurrency exchanges and brokers offer this method of trading for various types of cryptocurrencies. When trading Bitcoin in this way, the investor doesn’t need to start with such a large amount of capital as when buying Bitcoin outright. Crypto trading, much like forex trading is simple to grasp. You will start by selecting the asset you want to trade, choose the amount of volume to trade and then look at the charts to understand which way the Bitcoin will move. Bitcoin is quoted against the USD, so when you trade Bitcoin it means you are really speculating on whether the price of Bitcoin against the dollar will go up or down.
As for investing in Bitcoin the traditional way, the first step would be to buy and hold Bitcoin in your personal Bitcoin wallet. You can buy Bitcoin in a number of ways, including from an online cryptocurrency exchange, Bitcoin ATM, an online Bitcoin brokerage, or from someone else willing to sell you Bitcoin. There are various websites available that offer different ways and methods for buying Bitcoin. The point is, it’s possible to buy them from anywhere in the world.
Once you have Bitcoin in your own personal Bitcoin wallet, you can send a portion of your Bitcoin to an online cryptocurrency exchange. Most, if not all cryptocurrency exchanges accept Bitcoin to be traded. Some exchanges will simply allow you to trade your Bitcoin for fiat currency, while some will only allow you to trade Bitcoin for another type of cryptocurrency. This is very important to understand before sending Bitcoin to an exchange, as once it is there, you may not be able to exchange it for what you had planned. You can always send your Bitcoin to and from an exchange, but with the increasing usage of Bitcoin, it’s blockchain network seems to be somewhat overwhelmed, causing transaction fees to be quite high. So remember, do your due diligence and be sure to research about the Bitcoin exchange to see whether it’s the right place to be sending your Bitcoin too.