What is Bitcoin
Bitcoin is a unique payment network that uses a peer-to-peer network for enabling payments. This digital currency or Cryptocurrency doesn’t operate with central authorities or banks. So, the transactions, as well as the issuing of new bitcoin, are carried out by its network.
The biggest highlight of this currency is that it is a completely open source with a design that’s accessible by the public. This means no one owns or controls this currency and everyone can participate in it.
It goes without mention that bitcoins are both created as well as held, digitally. They aren’t printed like our digital currencies either. You can use bitcoins for making virtual payments if your merchant is accepting it. What’s more, you can also trade it electronically. Bitcoin and its newer proponents like bitcoin cash are accepted in most parts of the world.
With its unique set of features uses, bitcoin is a first of its kind currency that offers a truly flexible payment network. It is decentralized, makes way for an anonymous transaction and involves low processing fees.
What is Bitcoin Trading?
Since bitcoin is rapidly growing against formal currencies across the globe, it can surely be profitable when you trade it. Bitcoin trading is carried out on online platforms that allow you to buy and sell it like TDS Capital Group. The success rate of your trade will depend on the demand and supply scenario of bitcoin.
Currently, there is likely to be a finite supply of bitcoin. According to most industry-insiders, there are 21 million bitcoins, all of which will be successfully mined by 2040. The availability of bitcoins will depend on the rate at which they make their way to the market as well as the activities of the people holding them.
So, if more people trade with Bitcoin, its value is likely to increase. To trade in bitcoin, you will have to sign up for a bitcoin trading account. Next, you’ll need to fund the account. Once your account is funded, key in the amount you’re looking to invest. You can now buy or sell bitcoin.
Buy Bitcoin Vs Other Investments
If you’re wondering whether you should trade in bitcoin, here are some reasons why you should surely go ahead with it.
Expected Gains higher than Expected Losses
One of the biggest benefits of buying bitcoin is the fact that its expected gains much more than the expected losses. According to most experts, bitcoin is one of the currencies that can become a global currency in the long run. If this turns out to be true, the value of bitcoins will increase by 20,000 times which will make an incredibly profitable venture.
Yes, in case you didn’t know, bitcoin is commodity money. So, when you’re holding these cryptos you’ll be able to trade them just as you’d make business trades with fiat currencies. Also, like fiat currencies, bitcoins also allow you to gain interest in your holdings. This alone makes it an incredibly profitable venture.
When you buy bitcoins, you’re not required to hold your money for long-term, profit-bearing plans. Instead, you can easily make some profits in a short time window, depending on the overall trade of bitcoin.
Yes, the high volatility of bitcoin can be easily used to your advantage. Being incredibly volatile, people buying bitcoin can easily maximize their gains. However, to do that, they have to time proper moments for purchasing and selling.
In addition to these benefits, it is also important to note that the transactions take place in a safer ecosystem. Usually, every wallet transaction is signed via a proper digital signature before getting sent to the blockchain. Therefore, buying bitcoin isn’t just profitable, but it is also completely safe.
What’s more the transaction charges against bitcoin are also fairly low. Unlike other cryptocurrencies where the transaction charges increase with higher amounts, bitcoin has a single transaction charge that doesn’t change. So, whether you’re trading in 1 or 1,000 bitcoins, the fee will be the same. Owing to its widespread availability and super-fast transaction time, bitcoin has successfully evolved as a top trading option for both amateurs and experienced traders.
Trading Bitcoin Guidelines You Should Ensure
- Before you buy bitcoin, there are a few guidelines you need to ensure. In this section, we will talk about them in detail. Remember, unless you follow the right guidelines, carrying out a successful trade and making gains from it won’t be possible. So, whether you’re an amateur or experienced trader, always keep the following things in mind.
- As with any other trading, make sure you do not risk more than you can afford to. Trade only in the amount that you’re comfortable with. Do not be carried away with what others are doing. Invest a small part of your capital, so that even in the event of losses, you can handle things and make things work in your favor.
- Always do your research. It goes without mention that you can never make a successful trade unless you are completely familiar with the events surrounding bitcoin. Once you know what’s happening in the crypto world, you will be able to take better and more informed decisions. For better results, you can also read the whitepaper of Bitcoin as written by Satoshi Nakamoto. It is only 8 pages, and it offers you every relevant guideline you wanted about the currency. Since you’re investing in cryptos, it is especially important to understand the blockchain involved.
- Although exchanges are one of the best places for buying digital currency, they are certainly not the best place for holding these assets. So, even if you purchase these currencies from exchanges, make sure you secure them in a safe wallet. For best results, you should keep a part of the amount in hot wallets, and another part in the cold wallets.
- For the uninitiated, hot wallets are the wallets that are connected to the internet. These wallets are simple, safe and ideal for daily use. Cold wallets, on the other hand, are hardware wallets. Although they are incredibly safe, they are not ideal for daily transactions.
Buying bitcoin is an incredibly profitable venture if you do it the right way. Follow our guidelines to make the most from your trades.