A closer look at Bitcoin and a few Bitcoin terms that every trader (especially the new ones) should know.
The past decade has marked the rise of one of the most groundbreaking inventions in the modern era. Cryptocurrencies have become the new payment method that is used by millions of people around the world. Thanks to its value and the number of advantages that they have over other payment methods, it wasn’t long before they became popular in every corner of the planet.
Some of the advantages that users experience are a certain level of anonymity, instant transactions, no hidden/added fees, and the possibility of making a profit. We all know how some people chose cryptocurrencies as their job occupation and used them to trade on the market and make money off of them.
The most popular cryptocurrency is Bitcoin. It is very stable, used by many people, and even legal in many parts of the world. That is why most traders choose Bitcoin as their number 1 cryptocurrency. We wanted to take a closer look at Bitcoin and explain a few Bitcoin terms that every trader (especially the new ones) should know. Let’s check them out.
Trading sites are the platforms on which traders use Bitcoins to trade and make money off of them. The best platforms of this type use advanced AI algorithms which predict future prices of Bitcoin. As you may know, Bitcoin has a high volatility rate, which means that the price goes up and down quite frequently.
These algorithms can be of massive help in your quest to make money. That is why we would advise every trader to take a look at them and see what they have to offer. One of the most reputable and most popular trading sites in the world is https://www.bitcoincircuit.biz/. This site uses the aforementioned AI-powered system and has helped thousands of people make a lot of money in a matter of a few days.
Next up, we have Bitcoin mining. The process of collecting Bitcoins in order to sell or trade with them is called mining. This process involves a lot of mathematical calculations and owning a computer to check the authenticity of every transaction in order to confirm them. With every verified transaction, miners are rewarded with a certain number of Bitcoins.
You’ve probably heard this name on numerous sites while researching for valuable information on Bitcoin. Satoshi Nakamoto is the creator of this famous cryptocurrency. But, there is a catch. That is his pseudonym. No one knows his true identity. We don’t even know if Satoshi is male or female, and what is his nationality. It is suspected that he is a male in 40s, but no one has actually confirmed this piece of information.
Block and Blockchain
A blockchain represents the virtual public record in which all Bitcoin transactions are visible by all traders. It contains every important information on every Bitcoin trade ever made. On the other side, a block represents a single transaction and it is a part of the blockchain. Think of it like this: if a blockchain represents a book, a block would be one page from that book.
By definition, cryptography is the process of making and deciphering codes. It acts as the foundation of Bitcoin – after all, that is why Bitcoin is called a cryptocurrency. With this process, a big portion of the data from every Bitcoin transaction is encrypted and thus, traders experience one of the biggest advantages that Bitcoin has – its anonymity. Not only does this technology make the transactions anonymous to a certain degree, but it also secures them.
By definition, Bitcoin is a highly decentralized currency. But, what does decentralized mean? Decentralization is the lack of control from one centre. We often find this term in political science books, which is what we are going to use to define Bitcoin decentralization.
In these books, a country can be centralized and decentralized. Being centralized means that all of the control comes from one centre (most often, the government), while decentralization means that the government lacks control of its regions/municipalities. Bitcoin is a currency that is not controlled from one centre. In fact, no one controls it as it is self-sustainable – hence, a highly decentralized currency.
Knowing these terms is vital in the process of learning how to trade with Bitcoins. The more familiar you are in this area, the easier it will be for you to navigate through it and make money in the process.