Must to know things before you start Bitcoin trading
Money attracts every struggler, be it physical or virtual. The world of cryptocurrency has gained huge attention of many such strugglers and they have begun investing plenty of amounts in this virtual money making. You will come across many cryptocurrencies like Bitcoin, Litecoin, Altcoin, Dash, etc. All of these differ by few modifications that each one carries. These are believed to be a quick way to get richer online through the investments done by users; however, this isn’t the case. The most widely used among these is Bitcoin, the unit is denoted as BTC. It is digital cash that you can use as money to carry out online transactions.
Below we have covered some significant points; a newbie must get familiar with, before involving into BTC trading. Let’s begin with the major issue that every user wishes to know about Bitcoins.
BTC doesn’t Guarantee Profit
Most of the BTC owners use these currencies for online trading of goods and services. The BTC developers don’t claim that any profit can be made through this since its exchange value keeps on altering. Moreover, due to its decentralized form, people consider it illegal and are reluctant to accept it. Before investing into this business, you must get aware about its risk, the funding isn’t trustworthy. However, one strong point keeps it going; it cannot be acquired without the owner’s consent. Not even Satoshi Nakamoto would ever guarantee a profit off the BTC trading. Therefore, it altogether proves to be trial and experimental.
The BTC production is carried out by Bitcoin Mining. This process involves giving solutions to a mathematical problem and consequently, creating a new block (currently includes 25 bitcoins). There is no fixed quantity of blocks generation unlike the bitcoins. Once we obtain all the 21 million Bitcoins, the generation ends, the blocks can even further be created by the use of transaction fees.
Related: Secure Bitcoins
BTC Fraction Units
- 1 Satoshi = 0.00000001 BTC
- 1 Bit / μBTC (you-bit)= 0.00000100 BTC
- 1 mBTC = 0.00100000 BTC
- 1 cBTC (bitcent)=0.01 BTC
- Note that here 1 BTC=1 Bitcoin.
Your fundings can be exchanged with Bitcoins and the buying procedures are various, such as you can buy BTC with your PayPal account. In fact, through your PayPal account you buy SLL (Second Life Lindens) by investing your money in USDs and later exchange the SLL with BTC. Hence, this way the bitcoins can be exchanged and transferred from one user to another. One can even buy bitcoins via Credit Card and Debit Card. One of the popular websites to do such transaction is the VirWox.Com
BTC Wallet and Address
In simpler words, Bitcoin Wallet can be considered as a database where you store the private keys to access bitcoin address. This wallet, be it mobile, desktop, hardware or online wallet, is designed for the sake of safety and security of those digital keys since if it gets revealed, anyone can access the BTC Address and carry out transactions. The BTC Address works as like your email address and is used for transferring the bitcoins again similarly as you send the email.
You must have got a basic idea about some terms and functions related to bitcoins. The interesting part is that the BTC owners are not actually into this business just for money sake. They have entered into it because of its technically brilliant concept. Thus, we suggest you not to get into BTC trading if you are looking for quick earning schemes. It is made only for those network participants who have an interest in the solving the mathematical problems using computing power. If you are among those, then you must definitely step into this excellent trade.