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Back in 2009, an individual known as Satoshi Nakamoto came up with a new currency, and it was called Bitcoin. What started off as a small idea developed and has become something revolutionary, changing the way that people approach banking and investments. With Bitcoin, it became possible to complete transactions without any middle men. This means that there are no diversions to banks for transaction completion. The biggest benefit of this is that there are no transaction fees and you can maintain total privacy when using this method. As it becomes more popular, it is a payment method that can be used for shopping online, as well as on a variety of online casinos.
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There is a limited amount of Bitcoin that has been created, which means that the value continues to go up as the demand grows as well. In fact, when Bitcoin first came out, one Bitcoin was worth only a few cents, though now the value of one Bitcoin is more than $4000. This means that those who purchased Bitcoin years ago, and held on to them, are now becoming millionaires.
You may want to touch a Bitcoin, but that would not be possible as it is a fully digital currency. It is not printed in the same way as other currencies like dollars. It falls into a broader definition of currencies and is known as a Cryptocurrency.
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How Does Bitcoin Work?
Bitcoin is based on a public ledger that is known as blockchain. This stores a record that is decentralised of every transaction that is carried out by users of the network. Furthermore, it is also updated by those who are using the network. Bitcoins are mined by making use of computer power which will solve complex algorithms that are known as blocks. This is because Bitcoin is fully based on mathematics, and it is produced using a mathematical formula. The good thing is that anyone can gain access to this formula and check the way that it works. This is because it is open source.
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There are several ways that you can own Bitcoin. The first is by choosing to mine it, which is possible the easiest way that you can get it. It is also the slowest way for you to get some Bitcoin. You could also choose to join a mining pool where you gang up with others to get your Bitcoin. It will be necessary for you to check the security of the mining pool. You could also choose to play the markets, where you will find that you can get some Bitcoin fast. However, you will not be able to deny the risk that is involved by choosing speed.
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Benefits of Using Bitcoin
There are a large number of benefits that can be enjoyed when using Bitcoin. They include the following: –
- Making international payments cheaply as this payment method has no affinity to a specific country. This means that it is not regulated. It is defined as being decentralized.
- Setting up Bitcoin can be done with ease, and is much simpler than trying to open up a bank account. It takes seconds to set up with no complex questions to by answered and no need to pay any fees.
- Transparency is at the center of Bitcoin as each transaction is put into the massive ledger that is known as blockchain. Even though one is able to see how many Bitcoins others own, and where they are stored, the identity of the person with the Bitcoins is not shared.
- There are no charges, even when you are trading internationally. Where with a regular bank you have to pay at least $10, here, you get to actually save or retain that amount.
The reason that Bitcoin continues to grow in popularity also includes the profit that one can make from trading in Bitcoin. It is possible to make a profit whether you are a beginner or a professional. When trading in Bitcoin, you will find that there is some volatility. This is because it is traded in bubbles, meaning that it is released at certain times. When released, it goes into the news and while there is hype, the price rises. When the hype goes down, the price tends to stabilize.
Trading Bitcoin can be done at any time of day or night, and every day of the week. This is because there is no Bitcoin exchange that is official. Rather, there are hundreds of exchanges from all over the globe where one can trade in Bitcoin. Price movements are frequent and volatile and you can spot swings with ease.
As you are trading Bitcoin, you will find that it is similar to trading normal currency as what you are doing is using one currency to buy the other. It can be treated in the same way as a commodity.
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With all this information at your fingertips, you should look to purchase your first Bitcoin. Start by looking at an online exchange. There are three major ones that you will find online. The first of this is Bitstamp, and it is particularly ideal for those who are living in Europe. It is a company that is based in Slovenia. Whatever funds that you deposit, will have to be converted into Euros fir the purpose of trading.
If you are in the U.S, then the best option would be for you to use Coinbase.com This is not an exchange though, it is simple a place where you can buy and sell Bitcoin, though you do need to pay a fee when you are purchasing.
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Finally, you can try out the platform BTC-E, especially if you are into forex trading. This is possibly the easiest platform that you will find for trading Bitcoins. In addition to buying them, you will also be able to sell them here so that you can enjoy some profit. More and more online casinos and other platforms are beginning to accept Bitcoin, giving you more avenues for a spend.
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