Bitcoin is an electronic currency created in 2009 by Satoshi Nakamoto. It is also the name of the open source software project developed for the use of this currency.
It is thanks to cryptography that is possible to control the creation and transfer money, instead of leaning to the central authorities.
One coin contains the public key of the owner. When the coin is transferred from user A to user B, A adds B’s public key to the coin, and is then signed using the private key of A. B now owns the coin and he can transfer it again. A is prevented from transferring the spent coin to other users because the network maintains a public list of all transfers. The validity of the coin is checked before each transfer.
Bitcoin is a peer-to-peer currency. Peer-to-peer means that transactions take place exclusively between two computers, or between two network nodes involved in the transaction.
Therefore, there is not the intervention of banks and/or authorities that traditionally create coin, release and/or distribute currency. These tasks are managed by the network.
While traditional currency tends to be depreciated due to inflation fueled by central banks, the bitcoin tends to appreciate over time because the money supply increases in an extremely slow way.
We can observe that the rate at which money is created is always lower and in a short time become irrelevant. This means that the value of the single bitcoin possessed by users is expected to grow markedly in time.
Bitcoin has significant advantages. The transactions are public and this avoids, thanks to algorithms, that there may be fraud or theft. In practice it is mathematically impossible to falsify the bitcoin.
From this point of view, we must observe that the bitcoins are extremely more reliable than the traditional money managed through credit cards. Anyone can become part of the network of exchange bitcoins in an absolutely anonymous way.
The interest towards this coin is two-fold. On the one hand it is an absolutely free currency that helps to protect the personal freedom of those who use it. On the other, it represents a tremendous speculative opportunity.
Trading of bitcoin is a great opportunity for profit because it is a highly volatile market. In order to trade bitcoins it is necessary to first open a trading account with a broker.
Click to the registration link of the broker’s website and enter your personal data. Once you have entered the data, the account is opened.
To make a deposit it is necessary to transfer your money from your credit card/bank account to your trading account opened on the broker’s website. It is important to say that this is not a transfer of ownership. From the legal standpoint, the money continues to belong to those who make the deposit.
The money is deposited by the broker in a special trust account which is not legally owned by the broker. Even in the event of bankruptcy of the broker, the money is not lost. The minimum deposit required to trade bitcoin is a few hundred euros.
When the deposit is made, it is possible to start trading. The goal is to predict whether the value of bitcoins will increase or decrease and act accordingly. If the market trend is correctly predicted there will be profits.
The trading of bitcoins is an activity absolutely traceable. It is important to enter truthful personal data. The best bitcoin brokers are: eToro, Plus500, Markets.com, etc…
Technique and strategy does not make the difference, at most help. The person who believes in itself is able to take risks and to act with courage and determination. You may not think to succeed immediately but you cannot think to leave the trading to the first transaction that closes at a loss.