Bitcoin’s market cap has grown over $1 trillion, while the price has surged over $60,000 in March. This is the third time for the price of Bitcoin to reach a record-breaking price during its bull market phase.
Because of this, there is renewed interest in investing in BTC by both retail and institutional investors. If you also want to invest in Bitcoin and join an exchange site, we have chosen some important things you should know about Bitcoin and trading online.
Things you should know about Bitcoin and trading online.
What is Cryptocurrency?
Cryptocurrency is a digital currency that is used as a medium for the online transfer of money. Bitcoin is the first virtual cryptocurrency that gained widespread popularity, and thanks to Bitcoin today, there are over 4,000 cryptocurrencies. What makes Bitcoin unique is that it’s designed as a decentralized digital currency based on blockchain technology.
The underlining blockchain technology is based on a collection of computer systems, also known as nodes. On the computer systems runs the Bitcoin software, and the users on the network, also known as miners, have a complete overview of the data in the network.
Actually, one of the main attributes of the network is that it provides total transparency when it comes to the information in the blockchain system.
The blocks of transactions are linked using cryptography, and because the computer systems share the same software, they can see in real-time the new entries in the network, making it impossible for anyone to alter the data of the records. Furthermore, another advantage is that the identity of the users remains concealed, the transaction costs remain fairly low, and the BTC transactions are validated within 10 minutes, on average.
The number of online trading sites keeps growing, so there are a lot of options to choose from. The sites are available on mobile devices and computers. So, you can instantly find a reliable trading site and set up your account. For example, the Yuan Pay Group is a state-of-the-art trading platform that uses AI technology that analyses and quickly adjusts to market data while simultaneously providing a safe trading environment for its users.
Beginners should be aware that the price of Bitcoin is derived from the interaction of supply and demand on the market. As we said earlier, this is a decentralized cryptocurrency, and that’s why there isn’t a central bank or financial institution that has the power to control the supply of Bitcoin.
This means that the supply is fixed on 21 million BTC while the available supply of BTC is regulated by protocols like Bitcoin halving. This event reduces the block reward of the miners and slows down the process of producing new BTC on the network. Therefore, today the price of Bitcoin is rising.
Before you make the decision to join an exchange site, make sure to find and invest in the right Bitcoin wallet that fits your budget and financial goals. The Bitcoin wallets are used for your BTC transactions and they also store your BTC. Hence, it’s important to find a secure and reputable wallet that keeps your data and funds safe from hackers.
There are various types of wallets, including desktop, hardware, mobile, and web wallet. When it comes to the best type of wallet, it really depends on your needs. Hardware wallets are famous for being safe, and they are perfect for a long-term investment. However, for online trading, web and mobile wallets are convenient because you can easily access them and keep track of your investments.