Who would’ve thought that there would be such a thing as a virtual currency? Bitcoin has been present for a while now and it has been revolutionizing financial markets all over the world. Thanks to the many benefits it brings, it has gotten the attention of many people who are now looking to become Bitcoin traders.
If you happen to have the same aspirations, then you’d be better off with some basics.
Firstly, you’ll need to know how Bitcoin transactions are made. You need 2 keys to do so. The first one is the private key which gives you access to your assets and works as a password. It’s also a seal of approval for any transaction you make.
The second one’s the public key and you can share it with any Bitcoin user. You can do so whenever you purchase goods or services, trading Bitcoin for any fiat currency or trading it for another cryptocurrency. Another thing you’ll need to know is how to pick out an exchange.
There are many of them online and their histories will tell you plenty. For example, if it has been hacked a couple of times then it’s best to stay away from it. Next, you’re going to want to distinguish between the different kinds of assets, analyze the price and market, know when to sell and when to buy.
In other words, you’ll need to know how to make the right decisions in various situations. That’s why trading Bitcoin can be a bit complex. So, you can either learn how to do it or you can go for an alternative approach. Your other option is relying on trading platforms that will trade Bitcoin for you.
Among them, you’ll come across the Oil Profit trading platform. As mentioned before, it will do the work for you since it has a sophisticated algorithm to rely on. Naturally, to use its services you’ll need to make an account. Another thing you need is a small deposit which will serve as your starting budget. But you won’t start using the platform just yet.
There are several tutorials that you’ll need to complete and a demo lesson to go through.
When you go over the training it’s time for some real trading. This will be your first life session. Afterward, you can increase your budget if you want to and experiment with the settings as much as you can.
Other Important Aspects You Need To Know
Security is an important issue with trading and Bitcoin in general. That’s why you need to trade at safe exchanges. Also, there are a couple of things you can do to improve the security of your assets. The first one is to stay away from the Dark Web. Another thing you can do is look for a secure wallet.
This means you’ll need to do a little research. Basically, there are hot and cold wallets. The hot ones are connected to the net which makes them handy whenever you need to make a transaction. But there are hackers online that can get a hold of your private key and therefore your assets.
That’s why you might want to look into the cold wallets. These ones aren’t connected online and work as storage for a finite amount of Bitcoin. Still, that doesn’t mean that there aren’t secure hot wallets out there. Go for reputable wallets whose users are happy to share their experience with a particular wallet.
It’s also a good idea to stay in the loop. This means being informed about the rise or fall of the value, regulations for cryptocurrencies in various countries, and so on. By being vigilant you’ll be able to make better trading decisions and improve your skills as a trader.
Bitcoin Is Decentralized In Nature.
Unlike traditional currencies, there is no central organization controlling bitcoins, as is the case with traditional currencies. Thus, the decentralization of bitcoins provides it an edge over the traditional currency.
Similar to a database, Bitcoins require a collection of computers for storing their blockchain. The blockchain is a database that stores all the information about the transactions made using bitcoins. Unlike most databases, the databases of bitcoins are not stored under one roof, and a certain group of individuals operates each computer.
As far as blockchains are concerned, each node contains a full record of the data stored inside the blockchain since its inception. This data is the complete history of all transactions made using bitcoins. If any node has an error in their data, it can refer to the other nodes for reference and correct itself. In this way, no node is capable of changing the data that is stored in it. Thus, the history of transactions stored inside a bitcoin’s blockchain can neither be altered nor deleted.
If a person tries to tamper with the record of transactions, then all the other nodes will cross-check each other and easily pinpoint the part where some wrong information is stored. Such a system helps to establish a transparent order of transactional details.
Before making a bank account, you need to submit your phone number, address details, legal documents, etc. Moreover, all the transactions are issued in your name. However, this is not the case with bitcoins. All the bitcoin transactions are anonymous, and hence no one will be able to trace back the user. Also, no legal papers will be able to help in the identification of the user.
No Geographical Restrictions
Unlike traditional currencies, the price of bitcoins does not differ from one country to another. Thus, the price of one bitcoin is the same all over the world. This makes transactions easy and fast. Sending money from one part of the world to another is just a matter of a few seconds with bitcoins. Moreover, you need not check the current market price of one currency and do the calculations to find its value in another currency.
Types Of Wallets
Generally, there are two types of digital wallets:
- Hot Wallet: Digital coins are stored in a cloud-based platform and accessed via smartphone, desktop, etc.
- Cold Wallet: Coins are stored in an encrypted portable device such as a thumb drive which allows you to download your coins anytime.
All the details related to your bitcoin are stored in your bitcoin wallet. In case you lose the password to your wallet, you may lose your coins forever. Moreover, a few cases of theft have been recorded lately. The chances of theft are quite high when you use a third-party sites’ wallet to store your choice. Thus, make sure to store them only in trusted and reliable wallets.
Bitcoins are highly secure. All the transactions made using bitcoins are noted down in a public ledger, and thus it is quite difficult to duplicate these coins, make fake ones or spend the coins you do not own.