Pretty much everyone knows what Bitcoin is. That’s because this virtual currency has left quite an impact on the financial world. It’s still popular which is why so many people want to become traders. However, it needs to be said that it wasn’t like that in the beginning. Back in 2009, when it was introduced to the public, it failed to attract too much interest.
In fact, we can see that financial institutions were completely against it. While the situation is not that different in this day and age, we can see that there’s certain progress made towards legalization. The first country in the world that legalized all crypto was Belarus, and it made them untaxable for the next couple of years.
We can see that this example set a precedent that many countries will make in the future. We are sure that it is exciting to see that BTC can provide every trader with an option of making a healthy profit is the main reason for its popularity in this day and age. But, despite all the talks in the last couple of years, we can see that there are still a lot of uncertainties about the concept of cryptocurrencies.
Without a doubt, the most information we have about them is about BTC. It’s no wonder since it was the first one and it remains the one with the highest value even today. Some even compare it to what the dollar is to fiat currencies. But why is this particular crypto so popular and how does it work?
Behind the Scenes
The blockchain system is responsible for the existence of Bitcoin. We are talking about a chain of blocks that works as a ledger where all the transactions are recorded. The people or companies that get new Bitcoin are called miners. The Bitcoin source code uses the power behind their computers to create new blocks where the unverified transactions are recorded. The block creation process takes up 10 minutes which is pretty neat. Of course, the most important hardware for this process is certainly GPU.
We are talking about a decentralized system supported by the blockchain system, which was developed solely for BTC. However, we can see that it has numerous potentials that will be explored in the years to come. What does a decentralized system mean? It means that it is a peer-to-peer payment system that doesn’t require any kind of middlemen to perform its transactions. Not only that, these transactions are much faster than those we are used to. In some cases, you can receive or send money in a matter of minutes.
When talking about its popularity, BTC is widespread because it offers several benefits. It’s versatile crypto since you can use it to pay for products and services, you can swap it for other cryptos and you can trade it for fiat currencies. Furthermore, a trader doesn’t need to include any personal data in the whole process. The only thing required for a transaction is an address generated at e-wallets.
To send a BTC, you’ll need a username and password. Coming up with the first is your job, and you get the latter in the form of a private key which also verifies your transactions. Then you need a public key, or address, that you share with another user to make the transaction possible. The importance of the private key is huge since it gives you contact with your assets. That’s why you need to keep it safe. We can see that it wasn’t one of the biggest reasons why official institutions were against it, it didn’t have any authority above it.
The next benefit of using Bitcoin is the likelihood of earning healthy profits. That’s why so many people are looking to become a trader. But trading can be difficult since you’ll need to make vital decisions in all kinds of circumstances. Alternatively, you can opt for trading platforms that will do the trading for you. Among them, you’ll come across the likes of bitcoin-profit.org which is the platform that utilizes an algorithm that does the trading so you don’t have to.
Naturally, you’ll need an account to make use of their services as well as a small deposit to start the trading process. Then you’ll need to go over the many lectures and a demo lesson to get a hang of the settings of the platform. Once you’re done with this, then you can take it for a trial with a live session. Afterward, you can adjust the settings as much as you want and surge your trading budget.
Bitcoin – Far From Perfect
Yes, all currencies have issues and so does BTC. One of them is security. If you store your assets at online repositories or you have a Bitcoin wallet that doesn’t offer much security then hackers will take them off your hands. They’ve done so with Bitcoin users that visit the Dark Web and they’ve also hacked legal Bitcoin exchanges.
In short, they won’t stop at anything. That’s why you need to take precautions if you’re looking to trade or buy Bitcoin assets. Finding secure storage is important. You can look for a wallet that offers more security and see what users have to say about it. Also, think twice about visiting an exchange that has been hacked in the past.
When it comes to the private key, keep it in physical stores instead of doing so online. Oh, and stay away from the Dark Web, You have no business going there. By adding extra layers of security, your assets will be much safer.
In case you don’t have enough information about Dark Web, it needs to be said that this is a space where you will not be able to have the same level of protection as you would have on the classic internet. As we’ve mentioned, you should stay away from it completely.
With the value of Bitcoin rising throughout the years, you’ll be facing many challenges as a Bitcoin user or trader. By taking them on and facing them you’ll learn how to deal with them and how to better adapt to changes when they take on a new form.
The Bottom Line
It needs to be said that the world of cryptocurrencies is not revolving only around BTC anymore. Numerous other cryptos have significant potential. The first one that comes to our mind is Ethereum. At the same time, we can see that BTC will remain the first one and the one with the highest value for a long time. We’ve mentioned an example of it being similar to US dollars in the world of fiat currencies. Its popularity will continue to grow in the future, you can be sure of that.