Bitcoin, the long-lasting cryptocurrency to today’s date remains one of the trendiest topics worldwide. In 2009, or even the ensuing years, the only people who knew about Bitcoin were niche investors and people with an uncanny ability to predict the future. In 2021, however, you’ll be hard-pressed to find somebody who doesn’t know what a Bitcoin is, and that has no doubt.
Read on to know further about dealing with Bitcoins.
What are Bitcoins?
If we talk about the history of Bitcoin (BTC), it was the first cryptocurrency ever developed by creatorSatoshi Nakamoto, and since then has become the world’s most popular cryptocurrency to today’s date. While there are more than 5000 other cryptocurrencies to choose from, Bitcoin has become synonymous with the very concept of crypto. Bitcoin is currently valued at $49,065.30, making it the highest-priced crypto out there.
What Is a Blockchain? An Introduction to Blockchains
In easy words, a blockchain is a database among the nodes of a computer network. Like all databases, the primary function of a blockchain is to store data in digital formats, and today, these distributed databases have come to play a large part in cryptocurrency systems. Coins such as Bitcoin and Ether are hosted on a blockchain to ensure privacy and transparency while ensuring security to cryptocurrency investors.
A side benefit of blockchain systems is that they also keep cryptocurrency decentralized from any financial authority. BTC, ETH, XRP, ADA, and other cryptos aren’t controlled by a central authority, making them immune to many pitfalls in today’s economical market.
Why Should You Use Blockchain Systems?
If the anonymity of crypto doesn’t sound appealing to you, you might be wondering what makes blockchain systems so appealing, right. To help you in such regards, here are some important points to know mentioned below.
- BTC can be sent and received any time you want, 24/7, 365 days a year
- Bitcoin transactions take anywhere from a fast 15 minutes to a maximum of 1 hour
- There are variable fees, but by and hefty transaction fees for BTC are very low comparatively
- You don’t have to go through a bank’s annoying KYC procedures to do the transactions
- All you need to get into crypto is an internet connection and a mobile phone, that’s it
What Are Trading Wallets?
We’ve probably said this before, but this comparison is too good to pass up: think of your Bitcoin wallet as something like your real wallet, except that it doesn’t hold cash. Instead, these wallets have your digital assets: to be more specific, the cryptocurrency tokens you receive or purchase through an exchange.
Hot Wallets: Easier to Use, But Susceptible
You should know that trading wallets mainly come in two different types: hot wallets and cold wallets. Hot wallets are made through wallet software like Electrum and are hosted online. They’re quick, easy-to-use, and accessible for immediate trading but are also somewhat susceptible to cyberattacks.
Cold Wallets: All About The Security Concern
Alternatively, you could store your crypto offline in a cold wallet. These are hardware devices, like a USB or specially designed device usually worth around $100, kept in secure storage. You’ll have a somewhat more inconvenient time bringing these out for trading, but the fact that they’re disconnected from the Internet almost all the time makes them a more secure option.
What Are Cryptocurrency Trading Platforms?
Trading platforms, also known as exchanges, are designed to help sellers meet potential buyers and vice versa. People looking to buy and sell cryptocurrency can place orders for tokens and offer their price for the token. There are generally many choice options when it comes to choosing a trading platform.
There are many trading platforms today, like bitcoin block halving, the world’s largest trading platform, and an up-and-coming Bitcoin trading platform that has gathered good reviews from thousands of satisfied traders.
With many practical applications for cryptocurrencies being developed every single day, the concept’s inherent popularity shouldn’t be a surprise to novice investors. Even if Bitcoin never gets adopted as a primary currency, the potential applications for blockchain technologies are endless. Considering that, enthusiastic investors should stick to investing in cryptocurrencies in the near future.