The only hot topic going around the world these days is Bitcoin, Cryptocurrencies future, metaverse, and NFT. This is because people are trying to adapt themselves to the new reality with the rapid development of technology.
If you are not aware of what a bitcoin is but want to know the reason behind thishype, then this article will help you answer all your queries. To explain in simple terms, bitcoin is more like a currency in a digital form that exists in your digital wallet.
It is the most widely traded cryptocurrency on any crypto exchange platform. Here, you can find the differences between bitcoin and other traditional currencies-
. No Intermediary involved
There are no banks or any government which is involved in the supply of bitcoin. Whereas, in the case of any traditional currency; its supply involves banks and governments in between. Cryptocurrencies operate on a decentralized system that cannot be governed by a conventional bank or financial institution.So, you do not need to rely on a third party custodian service like bank and you can own your currency.
. Digital
In the case of any traditional currency, they exist in physical form. Conventional currencies do not have any digital avatar. Whereas, in the case of Bitcoin; it only has a digital existence.It is not a fiat currency that can be stored in your wallet or locker.
It was developed back in 2009 by someone named Satoshi Nakamoto. In the case of Bitcoin, the owner is recognized with their ID of the wallet and not with their name. So you can keep your identity anonymous while you invest or make a transaction with Bitcoin.
An individual can easily buy bitcoin froma crypto trading platform. There are currencies other than Bitcoin available on various crypto trading platforms in which you can invest like Ethereum, Dogecoin, etc.
Step 1 – Make your account.
The first step involves creating your account on any of the trusted and reliable crypto trading platforms. You have to enter all your credentials and submit the required documents/details, which will be verified within the next 48 hours. Make sure, you must complete your KYC process to get your account activated.
Step 2 – Digital wallet
You can simply activate your digital wallet now by transferring funds from your existing bank account to your digital wallet. In this case, you can buy digital currencies with fiat currency through your wallet.
Step 3 – Start trading.
Now you can start trading on the crypto exchange platform. An individual can buy and sell any of the digital currency as per their preference. It will be safe to do so and will be shown in your digital wallet respectively.
There are a lot of factors based on which the price of Bitcoin is determined in the market-
1. The supply of bitcoin
The coins are mainly limited in supply. It has also been predicted that the supply of bitcoin will be exhausted by the end of the 2140 financial year.
2. News is being circulated on social media platforms.
If there are any updates or news that question the value of bitcoin in the future or about the longevity of bitcoin, all of it will lead to a fall in the prices of bitcoin. So, one has to be updated with all the latest news in such cases.
3. Any other changes
There are other variables like the regulation of bitcoin or any security problem related to bitcoins. These factors may also affect the overall value of Bitcoins in the market.
Nowadays, a lot of retailers have also started to accept bitcoins as a payment option. Customers are also finding it convenient to pay through bitcoin. Retailers sometimes keep the bitcoin as an investment or sell it and transfer the money to their bank accounts.
Likewise, even the bitcoin investors – if they are not ready to take many risks, then they straightaway sell the bitcoin through an exchange. It primarily functions as a stock where investors are free to purchase and sell their Bitcoins at their convenience.
If you are somebody who wants to start investing in bitcoin, then you must conduct thorough research of the market. It is also imperative that you have a financial plan so that you can maximize your returns by taking limited risks.