Bitcoin and ‘cryptocurrencies’ are a type of software system which provides transactional functionality to worldwide users via the Internet. Cryptocurrencies are decentralized by nature – as provided by the blockchain database system, meaning that they are not regulated by the government or any financial institution (central banks inclusive). Bitcoin is the most established cryptocurrency and the first in the market, with a market cap of about $280 billion.
Every other coin or cryptocurrency apart from Bitcoin, are classified as Alt Coins. The Bitcoin wallet is what you need to access your bitcoins and to send bitcoins to other individuals; unlike the conventional financial institutions, you do not need a long list of paperwork in order to establish a bitcoin wallet. Note that every other crypto has wallets peculiar to them…meaning you can’t use a bitcoin wallet for another cryptocurrency.
The wallet address for Bitcoin or other cryptocurrencies looks like this: ‘312Yb54yHJ86klI439oPLxxsV70etrv2yvmwgxk’-A string of numbers and letters randomly selected. This is the address you will provide anytime you want to receive crypto coins into your wallet. In the same manner, If you want to send out crypto coins from your account, you will need to request for the receivers wallet address.
Bitcoin is the most established cryptocurrency…Bitcoin will be referred to in subsequent paragraphs for purpose of this teaching. Bear in mind that bitcoin and other cryptocurrencies have similar characteristic. What is applicable to Bitcoin also goes for the other crypto coins; bitcoin however, is the most popular and the most accepted generally.
USE OF BITCOIN AS ANONYMOUS PAYMENT PROCESSOR
This is the important feature that have made people embrace the Bitcoin technology; its use to make a purchase or send money anonymously to someone. More and more merchants today have been accepting bitcoins and other cryptocurrencies as a form of payment. By utilizing them instead of cash, you are essentially making the purchase anonymously. The same thing goes when sending money too.
HOW TO SEND BITCOIN
Whenever you wish to pay for goods or services or to send bitcoins as the case may be, to an individual, 3 things are required: Your bitcoin address, your private key and the individual’s bitcoin address. Through your bitcoin wallet, you will input the amount of bitcoin to be sent, the receiver’s wallet address and a security key that will authorize the transaction. Once this is completed, it takes no time for the bitcoin to arrive the recipient’s address.
INVESTING ON AND/OR TRADING BITCOIN
Back in 2013, the price of Bitcoin was approximately $400 per bitcoin and this rose to about $1000 at the end of 2013. This means that those who bought earlier in 2013, made more than 150% gain towards the end of 2013. The price of a bitcoin fluctuates from time to time. If you are sensitive enough to invest your money and buy when the price deeps, then sell at a much later time when the price spikes, you will be making for yourself cool returns on investment, much more than what any bank will pay as interest for a fixed deposit.
In similar vein, you may also do a short time or day-to-day trading just like in FOREX market. Because of the high volatility nature of bitcoin, it is perfect for trading. Buying when price is down and selling when price goes up, and repeating the cycle over and over again, as many times the opportunity comes in a day or any given time. In fact, a lot of people depend on this for daily income. A lot of brokers have exchange platforms for this singular purpose. Eg Luno.com, poloniex.com, coinbase.com, paxful.com etc All you need do is sign up for an account for free, and start trading. As simple as that! Only few ID verifications may be required during sign up process and that’s it.
A little analysis of the market trends can guarantee you good returns. Whatever you do, do not invest all your hard-earned money into this volatile asset. Wisdom they say is profitable to direct. Learn more here: Beginners Guide to Trading Bitcoin
EXCHANGERS FOR BITCOIN AND/OR OTHER CRYPTOCURRENCIES
There are so many exchanges and brokers available all around the world such as coinbase.com, paxful.com, luno.com, binance.com, poliniex.com, local bitcoin, Kraken, Bitstamp, etc As bitcoin and other cryptocurrencies are gaining popularity, a lot of brokers and exchanges are also springing up, you also have to be very careful in selecting the exchange you wish to use. Please beware of scammers! Read more about Exchanges here.
HOW CAN I LEARN MORE ABOUT THE CRYPTOCURRENCY MARKET?
The cryptocurrency market fluctuates from time to time. There are many established crypto updates and news websites eg preev.com, coinmarketcap.com. Cointelegraph, CoinDesk, Crypto Coin News etc and other media and Twitter accounts.
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Disclaimer: 1001entrereneurs.org or her editors or publishers are not financial advisers and shall therefore, not be liable for any loss incurred by virtue of her articles. What you see or read on this website are for educational purposes only. Please consult your broker or financial adviser when doing such deals about cryptocurrencies. Cryptos are generally high risk ventures and as such one, you must do at your own risk.
