Bitcoin is the world’s largest crypto currency. It is there in the market for a decade earlier at Bitcoin exchanges. This allowed people to exchange different currencies. Earlier only rich used to trade in it as people considered it unstable. It was amazing to make international payments as it was not related to any country or regulation. Thus it percolated to a situation it was not under any taxation structure. Small businesses accrued benefits as there were no fees to transfer money, but big investors took it as a long term investment.
Few terminologies you should know-
It is important to understand some basic terminologies and parameters of this trade before start investing. Some of these are bitcoin 4-year cycle, bitcoin 50-day moving average, bitcoin 200 week moving average. These are the time frame in which an investor can expect a favorable result. These are the market parameter though which investor assesses the future profitability.
There are several exchanges through which an investor can trade in Bitcoin. The most prominent amongst all is Coinbase. Along with it Bitstamp and Bitfinex are also one of the trustworthy medium to perform an exchange. It is still a nascent concept n the market thus it becomes important for the investors to understand it in the first go. To go with that it is imperative to understand how one can transfer these like cash. This is quite similar to sending digital cash.
This has many features apart from storing this crypto currency. The applications feature an option through which aspiring investors can get financial information. Applications derive this financial information with the help of bitcoin 4-year cycle, bitcoin 50-day moving average, bitcoin 200-week moving average parameters.
It is a digital wallet like others. Account-holders can exchange currency, store currency and transfer currency through this. This exists either on a computer or in cloud. One can also pay for goods and services and save money.
There is a system to record transactions. But the system does not reveal the names of buyers and sellers. The key information about the buyer and seller is wallet IDs. But this can be harmful as well. Anyone can but commodities or services without any tracking. This sometimes results in a situation wherein people use it for illicit activities like drugs.
Future of Bitcoin–
It is no brainer that this currency is gaining importance worldwide. But the future of this as a trading commodity is debatable. Many experts have refrained from commenting on its future. This is by and large because of the uncertainty associated. This situation demands regulation.
It is for sure that for this currency to be successful in the long run, there should be regulations. The regulation would add credibility to these transactions and would reduce the chances of fraud.
Thus by the end of this article, our readers might have understood concepts about Bitcoins. We believe it to be a work opportunity but long term investors should have a look at bitcoin 4-year cycle before investing.