What is Bitcoin
Bitcoin, commonly shortened as BTC is the world’s first decentralized digital cryptographic currency.
The Bitcoin network was launched in 2009 and has been growing ever since then.
Bitcoin is a cryptographic currency that’s created using computer calculations and a special algorithm.
A record (or block) is generated on the computer to confirm the validity of payment transactions.
How does it work
A transaction in the bitcoin network is peer-to-peer.
What this means is that the fund will be transferred directly to the owner without any third party (financial bank involvement) or the intervention of financial regulatory bodies either at a local level or at the international level.
This means that no one knows the amount you send or receive, and it can not be tracked.
Bitcoin’s network is based on blockchain technology, and that makes it different ( fundamentally) from all other electronic currencies and payment systems developed before now.
Bitcoin BlockChain (BTC) is not tied to physical assets or any international currencies.
Also, the price of a BTC digital coin is determined solely by market forces only, that is, the supply and demand.
There are no direct impacts of government monetary policies on BTC. It can not be controlled in circulation like you have print money being pumped into circulation or withdrawn through banks.
Inflation, unemployment rate, and others can not also have direct impacts on the price of bitcoin.
In fact, many investors are running to bitcoin as a safe haven.
There are now many alternative crypto-currencies, known as Altcoins, which are trying to outperform Bitcoin’s success.
The best known of them are Ethereum, Ripple, and Litecoin.
The cryptocurrencies have become very popular in the last decade and many that are in doubt of the future of BTC are now have better eyes on it.
However, many investors see them primarily as a financial instrument for making money only.
How to make money from BTC
There are many ways to make money with cryptocurrencies. The most important one is trading it.
How does trading with cryptocurrencies work?
To trade cryptocurrencies, you need a crypto broker. There are many cryptocurrency brokers in the market, but below are some of the best.
- TD Ameritrade
These brokers have online platforms that are developed for trading and digital coins, many of them are also into forex and stock trading.
Crypto Brokers offer investors a convenient platform, often in the form of an app, on which they can trade cryptocurrencies.
The aforementioned brokers are some of the top brokers with highly secured platforms, with modern security technology.
They ensure your trades are well secured and provide all the necessary tools you’ll need for trading.
Of course, all investors want to earn money trading financial instruments. Mostly, when they buy digital coins, they want to sell them later at a higher price.
Basically, how the Crypto Exchange works is not much different from trading shares and other securities.
Making money with cryptocurrencies will not be difficult for those who are already familiar with the principles of trading other financial assets on Forex.
When trading cryptocurrencies, the trader’s task is to find optimal market entries and exits.
Formally, the main principle of trading can be formulated as “buy cheaper, sell more expensive”.
For this purpose, an investor must first understand how the price of cryptocurrency is formed and what factors influence it.
In stock investing, you need to be able to study the annual reports of the companies you’re interested in buying their shares as well as study the charts to know the right time.
For crypto, it’s more technical analysis and following the industry news and activities.
The overall and important principle in any trading is to never trade with something you do not understand and the amount you can not afford to lose.
Chaktty is a stock trader with more than a decade of experience in stock trading. He also invests in farming and other businesses.