If you want to know about Bitcoin (or BTC) without going further into technical details, you are at the right place. In this article, we will explain what is Bitcoin, how does it work, and its common uses.
What is Bitcoin?
Bitcoin is a digital currency created in 2009 by an unknown person using the pseudonym Satoshi Nakamoto. It is not operated by any central body or government institute and is completely decentralized in nature.
All the transactions are processed with no middle men, meaning people can transfer money without availing any centralized service like PayPal or a bank. These transfers are recorded in the public distributed ledger called ‘’Blockchain’’, and it’s almost impossible for anyone to delete or edit transaction history. Users can also earn a fixed percentage of Bitcoin through mining, a peer-to-peer computer procedure used to verify and secure Bitcoin transactions on a decentralized network. It involves adding transaction data to Bitcoin’s universal public ledger.
The Most Common Uses of Bitcoin
There many ways that people can use Bitcoin. It may be used as a currency to purchase goods or services from companies or people that accept such payments. Some speculators use it as an investment vehicle for gains.
For instance, it is now possible to buy Ikea and Airbnb gift cards and paying in bitcoin. Other retail merchants and restaurants have also started to accept cryptocurrencies for purchases. In the real estate industry, some major transactions like Turkish real estate agency Antalya Homes who sold 9 Houses for BTC have surfaced in the past few months.
Should you buy Bitcoin?
What sets Bitcoin apart from fiat currency is its limited supply and decentralized nature. Unlike fiat currencies (euros, yen, dollars, etc.) that have an unlimited supply, Bitcoin has a limited supply of 21 million units.
You may buy, sell and/or store Bitcoins using digital marketplaces or exchanges. Nevertheless, bitcoin price is volatile. It slumped to below $500 in late 2013 and burst upon the scene when its price went through the roof in 2017. In April 2019, BTC was trading over $5000. Check out market data and do your research through sites like CoinGecko or CoinMarketCap before deciding to trade.
To buy Bitcoin, you first need to sign up for a cryptocurrency wallet. Bitcoin is sold, received and stored using the software called Bitcoin Wallet. There are a number of Bitcoin wallets to choose from, depending on your preferences and requirements. Do be careful with any service though and best to set a two-factor authentication.
After picking a Bitcoin wallet, you may choose to buy Bitcoin on a cryptocurrency exchange, ATM or even your friends. The market is full of digital asset exchanges, so whatever you pick, make sure it matches your needs. For instance, ecxx.com is currently offering 0%* trading fee for a limited time to help traders maximise their opportunities. You may sign up for an account here.
Bitcoin can also be purchased through a Bitcoin ATM, which you may try locating in your own country or area. Alternatively, simply buy some from your friends. Do adhere to tax and other legal or regulatory mandates issued by your state and/or local government too.
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Digital asset trading comes with high risk. ecxx.com only provide users with an online exchange platform and do not provide investment, tax or legal advice. ecxx.com is not responsible for any review of the assets and your trading strategies. There is also no guarantee against losses. Should you choose to trade, you need to be aware of and accept three important considerations: 1. Liquidity 2. Diversification 3. Loss of Capital. Please consult with your financial advisor before trading.