Where, Why and How to Trade Bitcoin.
Everyone talks about it, everyone makes money using it, it’s all over the news, on TV, in movies, but what is it and where can you get some? You need to know what everyone is talking about, and we are here to help you understand bitcoin and other Cryptocurrencies yourself. Over the past few years, many have become bitcoin millionaires and the chances are still ripe.
The world of bitcoin is not as complicated as they can make you might think, so it is still optimal to venture into this market.
Who Invented Bitcoin?
Bitcoin is probably the best-known digital currency and has been booming since 2009, the year of its creation. Its creator is unknown, since only his pseudonym (Satoshi Nakamoto) is known, this man (or perhaps a group of men/women) presented a document with all his ideas, without knowing that this would change the world drastically over the years to come. Bitcoin offers a great service; the opportunity to make transactions without any governmental entity involved, as well as low transaction fees. It is safe, de-centralized and swift.
What is Bitcoin?
It is important that you know that there are no physical bitcoins, so do not be fooled by scams. Bitcoins are in block on servers to be mined, and they are kept in a public book in the cloud. The engineering and technology behind bitcoin are extensive, draining and generally quite boring. Luckily, you do not need to know the background or behind-the-scenes methods to utilize its volatility and reap in the benefits of bitcoin and other Cryptocurrencies. Click the button below to see the best broker for trading bitcoin and other Cryptocurrencies.
Why Remain Anonymous?
Although it seems odd, there are logical reasons for its inventor to remain anonymous.
The most obvious and simple reason is about privacy, because if your identity is known, it could attract a lot of attention and this would affect your private life and even your security, especially since it would be the target of all governments. When creating revolutionary ideas, there is often backlash from the public, so perhaps staying private is the best option when on the forefront of something as great as bitcoin.
The second reason is security… In 2009 alone, about 33,000 ‘blocks’ were removed; having a reward rate of 50 BTC (bitcoin) per block, this gives us a sum of about 1,624,500 BTC as a gain, which has a current value of $ 13.9 billion. This could only have been done by Satoshi, and someone in possession of that amount of bitcoin is simply a very vulnerable person.
Key Points:
· It is used worldwide after being created in 2009. The most accessible and known Cryptocurrency.
· It is distributed, commercialized and stored using a decentralized, safe accounting system which is known as blockchain.
· After bitcoin and its success, many other Cryptocurrencies began to emerge, and the world of Cryptocurrencies began to form. Many scams have risen, promising get-rich-schemes and other dangerous ventures. To be safe, only use regulated brokers such as eToro.
What is Blockchain?
To be simple, as far as Blockchain is concerned, we can define it as a Blockchain, however it should not be taken literally. This refers to digital chain information that is stored in a database.
The blocks of said chain are divided into three specific parts:
· The first block stores the information about the date, time and dollar amount of transactions.
· Then there are the blocks that store information about who participates in all the transactions that are made.
· Finally, there are the blocks that store important information that distinguishes a block from the following store a unique code called “hash”. This works as a kind of distinctive name.
Blockchain and Bitcoin
Then it is quite clear that the objective of the blockchain is that the information can be distributed but never edited, for greater security. That is what makes bitcoin such a safe currency. Also, both focus on strong three purposes for the creation of bitcoin: decentralization, transparency, and immutability.
Main Features of Bitcoin Transactions:
Pseudonym: This gives anonymity to the trader, that is not to say that transactions and accounts are not linked to the real world, but it makes it very difficult to find out who the real person is behind any transaction.
Security: Because the funds are locked with a crypto system, then your money is completely secure, this also means that only the account owner can send crypto currencies. This scheme is almost impossible to hack and is one of the reasons why many people choose to work with Bitcoin.
Global and swift: The transactions are immediate, and it only takes a couple of minutes to be confirmed. This speed does not depend on the physical location of both participants in the transaction.
Irreversible: Any transaction made is already done and there is no way to reverse it. Regardless of whom the person is. If you send something, it stays that way forever and ever. This may be an advantage but also can be a curse.
How to 'Create' bitcoins?
The computers used in the world of bitcoin are made to calculate incredibly difficult sums. And many times new Bitcoins are produced as rewards for miners.
And it is a program that requires good quality computers and a lot of time from the miner, however over time this has become more difficult because there are many people mining Bitcoin. And to date generating a Bitcoin could take you up to a year.
Bitcoin Mining
Through Bitcoin mining, these are released and available to start circulating in the market. This is achieved through the resolution of certain computational riddles that are quite complicated and thus discover a new block, which will be added to the Blockchain. Each time blocks are added to the Blockchain, the person doing so receives a reward in Bitcoins. As we explained earlier while there are more Bitcoins, then
It increases the difficulty of the process in regards to mining, so the amount of computing power involved also increases. And so in 2019, the mining difficulty also exceeds 12 billion. All this exists and is done through mining platforms.
An important fact is that there is Satoshi, which is the smallest unit of bitcoin.
What is a Transaction?
It refers to a transfer of value between bitcoin wallets which are included in the Blockchain.
Each Bitcoin wallet is responsible for maintaining a secret information called private key or also seed, this is used to sign transactions, and thus provide a mathematical proof which is given by the owner of the wallet. This signature also prevents another person from modifying the transaction once it has been issued. Any transaction made is done from the network and is confirmed between 10 to 20 minutes after it is done, although it is something we talked about earlier, it is important to emphasize it and explain it further.
Now, let’s get to action part: why, where and how to trade bitcoin.
Why to Invest in Bitcoin?
We will give you a few vital reasons to trade bitcoin and other Cryptocurrencies:
It is easy and accessible: Starting to trade bitcoin is simpler than it seems, you must have a wallet and a trusted platform, such as eToro. A reputable broker like this will provide you with the essentials (a Crypto wallet and financial safety from scams). They will also show you how to buy and sell Cryptocurrency.
Digital wallet: Although bitcoins are not literally currencies, the wallet name is known and accepted since they are virtual currencies. These wallets are formed by unique cryptographic keys and different from each other.
Internet stable and secure: every time you access your wallet you must be careful and make sure that the place from which you connect is safe. You should not exchange bitcoin on any public or unknown Wi-Fi network.
High volatility allows for higher profitability: one must be careful of highly unpredictable spikes and slumps, however, the more a Cryptocurrency changes price, the more possibility there is to earn a huge amount of money in a short amount of time. To maximize chances of finding the best times to enter or leave a specific trade, we highly recommend eToro for their copy trading platform. You can see what professional Crypto traders are doing, what they are avoiding, and their thoughts on current events. This can be the best way of gaining an edge in bitcoin or any other market.
Holder of a bank account and credit card: This is quite obvious as it will need funds to carry out transactions and to withdraw your money. Any wallet you choose can connect to your bank account and receive fast and secure money. The bank account must belong to you.
Bitcoin Exchange: Once your wallet has been set up with an electronic wallet of your choice, then you will need a place where you can buy or sell bitcoins securely, that is, an exchange platform.
The function of these platforms is to connect directly with the bitcoin market, and once there you can exchange traditional currencies for bitcoin.
It truly gives results: Being part of the world of bitcoin is a modern and magical process, it does not have traps or losses, most people who enter to trade with these currencies, make it sought an easier way to save their money and make said money invested grow exponentially over time. There are also people who mine bitcoins, this does take more time and effort, but it also pays off, mining a bitcoin would give you a great profit just having used a computer and internet.
Everyone uses bitcoin: At first it is true that it was not something highly recognized and having bitcoins was not the best idea if you wanted to do something immediate with that money, but now its use is so common, that almost everywhere you can do transactions with bitcoins. You can pay for your ice cream with Bitcoins, or you can go out to buy clothes or food for your home and make those payments from your electronic wallet. Payments soon easy and immediate, normally the bitcoin platform does not present any problem at the time of making your transactions.
Where to Trade Bitcoin?
There are many platforms in the world, but without a doubt the best one is eToro. This may not be true for EU clients, who are likely to pay high trading fees when trading with eToro. However, for clients in Australia and New Zealand, eToro is one of the most competitive brokers when keeping the spread of bitcoin and other Cryptocurrencies as cheap as possible, which significantly improves your chances of success as profit-making is easier.
We truly believe eToro to be the best platform for trading Cryptocurrencies for both professionals and new traders. Join eToro to trade bitcoin and other Cryptocurrencies as a CFD (Contract for Difference) or as an underlying asset (This is when an individual actually owns a bitcoin for example). eToro has the most up-to-date technology, and provides the insight of many Crypto professionals for free, which can significantly improve your chances of success. Scroll down for more info on eToro, or click the button below to join now for free.
eToro
This company was founded in early 2007 and has its headquarters located in Cyprus, currently has more than 10,000,000 customers worldwide and has grown incredibly in recent years, due to the trust it provides to its users. In short, what stand out the most is its services as far as the bitcoin community is concerned.
It is a very friendly platform with retail merchants and gives them the opportunity to be entrepreneurs and see the profits as soon as possible and promising enough. It is quite steep to trade with eToro in the EU, but it boasts very competitive spread prices for clients in Australia and New Zealand. Clients in these areas will find it hard to trade bitcoin and other Cryptocurrencies at a more competitive price, for both CFDs and when buying the Cryptocurrency itself.
eToro is on the forefront of Cryptocurrency technology, being one of the first and only brokers to offer its own Crypto wallets which directly link with your account and can be used swiftly and easily for free.
Creating an eToro Account
Creating an eToro account is completely free, and hassle-free. You can trade right away with deposited money or hone your skills with a $100,000 demo account. They will need some personal information, such as email, name, username and phone number. After this, you will be sent a confirmation email which will take you directly to your new eToro account.
The platform also has a compatible iOS and Android application. We found that eToro is among the smoothest interfaces, providing extensive tools and user-friendly presentation to make the platform easy to navigate and simple to trade with wherever you are. The main page is simple and easy to use, you are likely to get comfortable with the app within seconds.
Once you are familiar with the account, you may wish to use the free demo account or start trading Cryptocurrencies or over 1400 other trade-able instruments with real money. To do this, you must verify yourself. This is simple to follow and can be carried out on the eToro app. Verification may take up to 48 hours, but as stated, you can often deposit and trade straight after opening your eToro account.
eToro Education
On the platform you will not find much educational material. However, you will have at your disposal some guides for you to understand how the market works and some educational videos.
Although there is not much educational material, we found that there really is something for everyone, at all levels. You can best-utilize this platform’s research and follow professional traders moves and posts for free via the social area, where all types of traders come together and discuss market trends, news and other useful topics. There is no harm in having a look at the social platform regularly to gain insight on current events and predictions across over 1400 trading instruments.
eToro's Fees and Withdrawals
The rates vary depending on the type of action that is carried out from the platform.
For example, in the case of bitcoin, leaving a position will result in a 0.70% rate imposition, which despite being high compared to some other brokers in some areas of the world, it is still very competitive for those in Australia or New Zealand. eToro is such a serious and committed site, it is worth joining for the competitive spreads as well as the many other benefits of trading on eToro. This is especially true for those just starting out on their trading experience.
Now, as far as withdrawals and deposits are concerned:
Withdrawals and deposits are made with the same method, either debit card, credit or PayPal account; there are also direct bank transfers, which take a little longer to process. It must be noted that this is not a fault of the broker, but simply due to the 3rd party involved with payment processes. The withdrawal fee is $ 25 but all deposits are free and will process instantly into your account.
Summary
Bitcoin is taking command of the world economy; modern, sophisticated and simple to use when paying, charging or even producing profits. Being part of this community is a great decision for both personal and financial reasons. We strongly advise joining eToro, especially for those in Australia or New Zealand due to the competitive spreads and wide Cryptocurrency coverage. In addition, the platform itself is smooth, simple and has a wealth of information to help you succeed. If you are not interested, or unable to trade yourself, you can copy a professional at the click of a button and reap in the rewards of their efforts. This is an amazing way to begin your path to successful trading, as you learn by seeing the professional methods and thoughts of many traders.
This does not constitute investment advice or personal recommendations as your specific financial circumstances have not been considered. No warranty is given in regards to the accuracy and completeness of information. Past performance is not an indicator of future results.