A Beginners Guide To Cryptocurrencies and Bitcoin Trading
Information That Every Beginner Needs
What Is Bitcoin then?
Bitcoin is a digital currency or a cryptocurrency that is virtual and decentralized, It is built on trust between its users without the intervention or management of a third party. Bitcoin was the first cryptocurrency and the most valuable among them invented in 2009 by Satoshi Nakamoto who is himself a mysterious man as no one is one hundred percent sure about his identity.
Bitcoin is a completely virtual coin designed to be ‘self-contained’. The breakthrough of bitcoin is that there is no need for banks being involved in moving and storing money. Moreover, transactions are done online and bitcoins are traded from one personal ‘wallet’, a small personal database that can be stored in the cloud, a computer drive, smartphone or a tablet, to another.
How To Buy Bitcoin?
With the rapid increase of Bitcoin’s value, many people all over the globe are not thinking twice about investing their money in buying and selling Bitcoin, yet the process too many seem difficult. Through an app called Coinbase, available everywhere for both smartphones and computers, that makes it easy to convert local currencies both in and out of bitcoin. Here are three steps to buy bitcoin:
First, Install the app and create an account by signing up, since it is the most secure place to store bitcoin and easy payment methods for converting in and out of bitcoin your local currency.
Second, connect your bank account. A process that involves some verification steps before you can freely use the account. Once done with these steps, you can start to purchase.
Finally, after you have done some purchases you have to keep on checking the changes occurring in the price of bitcoin because it changes rapidly.
How to Trade Bitcoin?
Trading bitcoin can be a very profitable, recently it is making the headlines all over the world. A fresh and new market that is open for all people to make money trading bitcoins. Trading bitcoin is exciting and unique for many reasons.
Basically, it is not directly related to the economy or the unstable policies of any country or group of countries, in fact, the trading of bitcoins historically benefited a lot from the instability and uncertainty world economics. In addition, you can trade all day every day, unlike stock markets.
Also, it is known for its rapid and frequent price movements. You can start trading bitcoin as soon as you have some bitcoins in your wallet by signing up in a trading platform.
What are the top 3 cryptocurrencies:
There are several cryptocurrencies available, but there are some prominent cryptocurrencies for their reliability. Here are the top three cryptocurrencies right now:
1- Litecoin or LTC: Launched in 2011, amongst the initial coins that followed bitcoin, and created by Charlie Lee, an MIT graduate, and former Google engineer. Litecoin gained its popularity for its fast block generation rate which offers a faster transaction confirmation, and for being used by not only developers but also a decent number of merchants.
2-Ethereum or ETH: A decentralized software platform launched just recently in 2015, it has grown very famous ever since then with a market capitalization of $41.4 billion which is the second among all cryptocurrencies. It can be used to codify, secure, decentralize and trade anything you want.
3- ZEC or Zcash: A very recent newbie that made its place amongst cryptocurrency users since it was launched in 2016. It is claimed that it is the safest and most secure cryptocurrency because it offers privacy and selective transparency of transactions, all transactions are recorded and published on a blockchain.
Another special feature of Zcash is that it encrypts transactions using a highly advanced cryptographic technique called Zk-SNARK.
Bitcoin developed a virtual wallet where you can save up and store your coins. Bitcoin wallet offers you access to your public Bitcoin address and allows you to sign off on transactions.
And just as with any wallet, virtual or real, you will need a wallet that includes security, anonymity, and control in order to start Bitcoin Trading. There are many types of bitcoin wallets. There are desktop wallets, mobile wallets, custodial wallets, Bitcoin paper wallet, and hardware wallets.
The Best Cryptocurrency Trading Platform
To buy, sell or exchange cryptocurrencies for other digital or local traditional currencies there are several platforms. There are platforms for both professional trade which requires ID verification and an account, and occasional straightforward trade which does not require an account. In general, there are certain things to look out for in a trading platform.
You have to do your own research on the reputation of the platform, fees, payment methods, verification requirements, and geographical restrictions. Right now, the number one cryptocurrency trading platform is Coinbase.
A reliable platform trusted and backed by millions of users, investors, and customers all over the world. It makes it very easy and secure to buy, use, store and trade digital currencies. It does not charge any transfer fees for moving funds, and other fees are very reasonable.
Finally, Bitcoin is the future.