Bitcoin value is soaring to a record high. These key things every beginner should know for bitcoins before stepping ahead.
Bitcoin is the digital currency (or cryptocurrency) that was created in the year 2009. It is the first decentralized currency as the system works without the intervention of a central repository or single administrator.
This innovative payment network is peer-to-peer & transactions take place between the users directly through the use of cryptography.
According to a post published in Economic Times, cryptography is an indispensable tool or technique of storing & transmitting data in a particular form so that only those for whom it is intended can read & process it.
This valuable technique not only protects data from theft or alteration, but it can also be used for user authentication. Therefore, Bitcoin transactions are highly secured financial transactions to date on World Wide Web.
Additionally, Bitcoin offers a number of advantages to users such as lower transaction fees, freedom in payment system, transparency in financial transactions, fewer risks for merchants & many more.
Today, Bitcoin is driving the attention of world community for trading & investment purpose. Here are 10 significant things for every investor or trader to understand Bitcoin:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Bitcoin Is Extremely Volatile In Nature
It is one of the key things every beginner should know for bitcoins. Bitcoin was originally created in the year 2009. But, still the concept of digital currency is in nascent stage. There are several market related factors that can influence its volatility.
Beside this, a number of positive & negative news about Bitcoin is hitting the market every now & then. These together influence the Bitcoin value on day-to-day basis.
According to the views of BitMEX CEO Arthur Hayes, the recent launch of CBOE Bitcoin futures from 10th December 2017 will drastically increase the Bitcoin volatility.
Generally, more the traders or investors are willing to buy Bitcoins, the more the Bitcoin value will soar to higher levels. Conversely, if more the traders or investors sell Bitcoins, the prices will slide to lower levels.
Today, the value of Bitcoin is fluctuating wildly with time. This tremendous volatility in Bitcoin is further drawing attention of international community.
However, unpredictability of Bitcoin’s value also makes is an extraordinary risky investment. Additionally, Bitcoin community itself is fractured about where to go further from here. They are even creating new & competitive cryptocurrencies for users.
This overall behavior is responsible for further fluctuations in its price levels. Therefore, investors are advised to invest what they can afford to lose else stay away.
- Key Things Of Bitcoin: Shutterstock