An innovative payment solution, but also a new way of looking at money, Bitcoin is the hottest cryptocurrency. As the virtual currency forerunner, Bitcoin is making millions for many traders around the world. Let’s take a closer look at why Bitcoin is so popular!
What is Bitcoin?
- The oldest virtual currency
Bitcoin is the oldest virtual currency. The history of cryptocurrencies actually began with the launch of this new form of money. Since its inception, the Bitcoin community has been growing steadily.
Bitcoin was created to offer a currency completely independent of the traditional banking and financial systems. This virtual currency manages itself online, minimizing transaction costs.
The most stable cryptocurrency
Its status as a precursor gives Bitcoin great stability. In addition, as the oldest, this payment network is the most used in the world. This stability ensures its longevity. In cryptocurrencies, the value of tokens grows when its user community is large and active.
An investment portfolio as a real currency
Bitcoin serves as an investment wallet for many users. As a more or less real currency, Bitcoin is also accepted by several e-commerce sites.
What is the future for bitcoin?
Various studies tend to prove that within a few years, virtual currencies will take the place of real money and currencies.
Like gold, the euro as we know it would become an investment instead of Bitcoin. Bitcoin, in turn, would be used for commercial transactions the world over.
The Bitcoin blockchain
Blockchain refers to the transactions used to buy and sell the virtual currency Bitcoin.
Understanding the principle of Blockchain
The principle of Blockchain is simple and refers to the chain followed by the tokens for a transaction to be validated and completed.
You initiate a transaction involving Bitcoin tokens, such as a purchase, for example. The transaction does not go directly to the recipient. It first stops at a blockchain of bundled blocks of cryptocurrencies. This block will then integrate nodes on the network. An update of the data on the Net follows to determine the number of validated blocks. Once all these steps are completed, the tokens finally arrive at their destination.
The Blockchain in Bitcoin
In Bitcoin, blockchains are generally faster and allow you to access transactions more easily.
Bitcoin is one of the virtually created cryptocurrencies that is not managed by any real or virtual entity. The smooth running of transactions and the security of the tokens are entirely ensured by the blockchain.
However, it is important to note that this virtual transaction management system can now be applied to many sectors and different types of online transactions.
The term "mining" comes from "miner". This term refers to the creation of bitcoin tokens. If Bitcoin remains the most widely used and popular currency on the market, it is mainly thanks to these mining companies. Many Bitcoin tokens are created daily on the Net.
How does it work?
Miners have to solve puzzles in order to get new bitcoins to put on the market.
Creation of Bitcoins by mathematical calculations
The puzzles are actually mathematical calculations. They are cryptographic formulas found at the head of a block to earn bitcoins as rewards. This allows for the subsequent injection of new tokens that have not yet been used in the market.
The benefits of Bitcoin mining
This never-ending search for new Bitcoin tokens is reflected in the market. As a reminder, the more Bitcoins are used and the more of them are on the market, the more stable their values are. So mining helps to secure your stock portfolio better. But it also guarantees an increase in the value of Bitcoin in the market.
Note that mining Bitcoin is not for every trader. In fact, you need to have advanced knowledge to get into cryptocurrency mining.
How does the Bitcoin price work?
What is the current price of bitcoin?
Currently, the price of one Bitcoin is 32,442.31 euros. Bitcoin is the most expensive of all available cryptocurrencies. Euthereum, which is the second most expensive of the new virtual currency trends, is priced at around 2,000 euros.
The Bitcoin price over time
History shows that the price of bitcoin moves and can fall at any time like any other stock. Caution is always advised when embarking on an investment. In 2020, for example, bitcoin suffered a loss of almost 20,000 euros in value. At that time, its price was trading at just 6,000 euros.
The Covid19 health crisis is taking a toll on many industries. Bitcoin was also affected by the repercussions of the pandemic and is now doing better. Indeed, it has regained its value and even exceeded it.
Is investing in bitcoin a good idea?
For the coming years, cryptocurrency experts are confident. They consider bitcoin to be a good investment. Investing in the current circumstances is interesting, in the sense that a further increase in the value of this virtual currency is expected. You still need to find out where and how to trade bitcoin.
Where to buy bitcoins?
Interested in getting into bitcoin? You need to start by choosing your cryptocurrency platform. Most, if not all, of them can offer you wallets of shares that you can buy. However, it should be noted that the choice of your trading platform is crucial. Here are some options:
As the name suggests, Bitcoin trader is a platform that offers only bitcoin transactions. This platform is one of the most popular if you are planning to invest in this virtual currency.
Bitcoin trader is especially recommended if you are a trading novice. The latter offers a feature that allows you, among other things, to automate transactions. This option is valid for both buying and selling.
Bitcoin trader is easy to use. It exists in both a website and an application version. This allows you to manage your portfolio easily and simply. But no matter what the site may promise you, note that your earnings vary only according to your transactions.
Usually, when we talk about cryptocurrency trading, Etoro is the first platform that comes to mind. This is especially the case for bitcoin trading. This platform shines especially when it comes to security. In addition, transactions are easy to make. You can choose between online bank transfers, credit card payments, or even Skrill payments.
Whether you're a beginner or an expert in bitcoin transactions, Etoro is an ideal platform. For one, the transaction fees are attractive. Two, Etoro offers tools that help you manage all your transactions.
Libertex is among the most prized and long-standing trading platforms. Its years in the cryptocurrency business, especially bitcoin, are perhaps an advantage. In addition, Libertex is one of the programs that offer you investment leverage to maximize your gains.
Libertex's services are not cheap. In addition, the platform is very demanding when it comes to compliance with all kinds of transaction standards. Libertex is especially adamant about buying virtual currency tokens. This investment site is not especially recommended for novices.
Finally, we can recommend Coinbase, a site that allows you to buy Bitcoins but also to exchange them. In addition, you have the choice between a Coinbase site and an application to facilitate your transactions.
To invest in trading with ease and simplicity, Coinbase is an interesting option, but it comes at a cost. The site has a reputation for relatively expensive transaction fees.
These sites function in a similar manner: you have to create an account, invest money, and once all the steps are done, you can start buying bitcoin in the quantities you need.
Registration is often easy and free, but you are quickly charged a fee. To choose the platform that suits you best, these fees are the first criteria of comparison.
To trade bitcoin and ensure you succeed in this field, consider choosing the right blockchain site.
What are the best platforms for trading cryptos? Find out the answer here.
As mentioned above, bitcoin is mostly a long-term investment. To do this, you should also choose bitcoin wallets. These wallets will hold your virtual currency tokens. Here are some tips on how to choose your bitcoin wallet:
Virtual or real wallet?
To store your cryptocurrency tokens, you can choose between an online virtual wallet or a real one. Both offer their own set of advantages and disadvantages.
The virtual wallet is used a little less. As a rule, investors prefer to have a physical medium in their hands to feel more secure. But that doesn't mean that the coding of this kind of wallet leaves something to be desired.
This kind of stock portfolio, even if you can’t see it, can be convenient and offer you more storage space.
The physical wallet
These days, brands are more likely to manufacture and code physical wallets, as they are more secure for investors. But this type of wallet usually costs more. In addition, these offer limited token storage space. Thus, transactions can be quite complicated.
Your investment platform probably already offers wallets: it's more convenient!
Some virtual currency trading platforms can already offer you secure wallets. This is the case, for example, with eToro. This will be more convenient. You won't have to transfer your funds from one platform to another or from one site to another, which is more secure.
The best bitcoin wallets available on the market
Among the most popular, you have :
∙ The Nano X ledger for about a hundred euros, a physical wallet that looks like a USB key encrypted by a PIND system and WYSIWYS paradigm. It’s a Bluetooth-connected wallet that facilitates transactions and fund transfers.
∙ For a lower price of around fifty euros, there is the Ledger Nano S. Like the previous one, it is a connected and encrypted USB key with PIN. But in this case, you will have to limit your transactions.
∙ Then you have Keepkey, a physical wallet that costs you just a few dozen euros that can be synced with Chrome Store if needed. In terms of security, it's encrypted online.
You now have all the cards in your hand to get started, and even succeed in investing in Bitcoin. A word of advice, as in trading, you have a choice of amounts to invest. Start small. By doing so, you limit the risks. Take the time to really understand the principles of this type of transaction before you start.