Bitcoin is quite a trending buzz in the marketplace. No matter if you are a beginner in trading, Bitcoin must be your field of interest. In this article, we are going to explain all about Bitcoin and how it works. Keep on reading the article to know more.
What is Bitcoin?
Bitcoin is a cryptocurrency that was created in 2009. It is very valuable in the marketplace and it allows Bitcoin exchanges so that people can buy or sell Bitcoins using different currencies among different countries.
Bitcoins are stored in wallets known as digital wallets which exist in cloud or on a user’s computer or app. This wallet acts like a virtual bank account that helps in exchange that is sending or receiving Bitcoins. You can also pay for goods or services using bitcoin’s. One thing should be noted that unlike bank accounts, these Bitcoin wallets are not insured by FDIC. There have been several cases where the servers have been hacked and companies have lost. Also, if you have a wallet on a computer then there might be chances that you accidentally delete them or viruses attack them. One needs to have proper security of software to allow exchange.
Although cryptocurrency is quite a matter of investment these days, but a few investors see them as mere speculations and do not consider it as real investment. This is because cryptocurrency does not generate cash flow which in other words can be made as for you to make profit someone has to pay more for the currency than you did.
Cryptocurrencies such as Bitcoin is nowadays also available for purchase with US dollars, while we can also pay with Bitcoins or other cryptocurrency. For the same, you need a wallet which is an online app that you can hold your currencies.
When you create an account, you firstly need to transfer real money to buy cryptocurrency such as a etherium or Bitcoin.
Bitcoin is currently an incredibly speculative and volatile buy. Investment in cryptocurrency should only be done after a good research on different cryptocurrencies such as Bitcoin, etc
Now we are coming to the most trending topic that is ‘purchasing and exchange of Bitcoins’. Any marketplace which is known as “Bitcoin exchange” helps people to buy or sell Bitcoins through their currencies. Some leading exchanges are Coinbase, Bitstamp and Bitfinex. But people are also very unsure as there have been various security concerns. In 2016, coins worth tens of millions of dollars were stolen from Bitfinex.
Currently, there have been many mobile apps and methods which help people to send Bitcoins using their mobile phones and computers. It’s more like sending cash digitally, but just in another format.
Bitcoin has reached the higher place in the market and there are many organizations and businesses that are accepting Bitcoin as a method of payment for the goods and services. Bitcoin can be considered a good method for widening the global reach and for making the payment secure. It is very easy to start accepting Bitcoin as all you need is a small sign at your store fund and beside your cash register.
