What Is Bitcoin And How To Trade Cryptocurrencies

There are just a few technologies aboard that gravitates attention and create buzz worldwide. One of which is bitcoin, the so-called king of the crypto universe. The digital currency has always stirred heated debate and interest even before it hit mainstream a couple of years ago.

Bitcoin value has now plummeted to over $4,000, which fuelled more investors to hoard on this digital currency. Bitcoin is said to be the future of currency. There is a reason why people are on a frenzied mood with this new currency – people who invested early on have now become millionaires. The bitcoin price though is highly volatile and is the creator of the popular blockchain technology. This is dubbed to a worldwide ledger that enables the use of a new payment system using digital currencies.

This is the first ever decentralized payment network that has no middlemen and is powered by the community. This is a well-established bookkeeping system in a peer-to-peer network. The first ever proof of the bitcoin concept was published in 2009 by a certain Satoshi Nakamoto who revealed a bit about his identity in 2010. The open-source nature of bitcoin plus its founder’s anonymity has raised some concern and doubt. With the blockchain technology, everyone has ready access to the source code so anyone can change or review the software code. For this reason, many traders and investors question whether this is something worth their money at all. The escalating value and figure would definitely show people bitcoin has indeed so much worth than it seems.

Cryptocurrency, in simple terms is money stored in different software platforms. The people behind these different cryptocurrencies are not just about creating a new form of digital currency but also a software platform.

Some of the popular exchanges for trading cryptocurrencies are the following:

  • Coinbase
  • Kraken
  • CEX
  • Bitfinex
  • Poloniex
  • ShapeShift

Each exchange platform has its own set of rules and guidelines to follow. You need to know and understand each one before you start trading. Here are some apps that you can use to track the performance or prices of cryptocurrencies right at your mobile phone:

  • This app allows you to check on the actual prices of each currency and which ones are actively traded. This also shows cryptocurrencies according to volume and market capitalization.
  • This works similarly to a stock trading app. This allows you to display updates on the currency of your choice. You can also keep track of your portfolio and add trading with ease.

You can either buy and hold or trade cryptocurrencies at this point. This is where the importance of storage comes into the picture. Your wallet software or hard wallet needs to be compatible with your choice of currency. Looking to buy after the launching of a high quality wallet will maximize your earning potential. You should always watch the performance of promising apps when trading cryptocurrencies. Be aware too that hype can influence market value. Good or bad hype can move markets and you should pay attention to this as well.

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