What is Bitcoin?
Bitcoin is an electronic currency that circulates in the peer-to-peer payment system of the same name. The functioning of this system is protected by cryptographic methods, and payments between the parties to the payment are carried out directly without intermediaries and without commission. And most importantly, the Bitcoin payment system is not controlled by anyone and is completely anonymous. No one can freeze or take away funds, and payments in the system are irreversible.
The main advantages of this cryptocurrency include:
- The electronic currency of Bitcoin is not tied to a specific country and economy.
- Bitcoin circulation is carried out without reference to a single center (which is an advantage of a peer-to-peer network)
- Bitcoin value not tied to analog value
- Bitcoin is not controlled by financial regulators
- The number of Bitcoin is limited, which eliminates the possibility of oversaturation of this cryptocurrency market
- Due to the limited number of cryptocurrency units, the lack of macroeconomic influence and control on the part of the state, the value of Bitcoin along with its popularity is constantly growing. And everyone can make money on Bitcoin.
The scope of use of Bitcoin every year is becoming wider. 5 years ago, this cryptocurrency was exclusively discussed on the financial market as a curiosity. And the scope of use was limited to several dozen online stores and mutual settlements between private individuals. But today, Bitcoin has become the world’s No. 1 electronic currency, expanding its scope of use to the following segments of the financial market:
Bitcoin has become a stock exchange asset and now it can be traded on special cryptocurrency exchanges or on the sites of the vast majority of forex brokers. Thus, you can earn on Bitcoin by trading in the same way as with conventional currency pairs.
Most modern online stores around the world have included the Bitcoin system in the list of payment systems for calculating purchases.
In developed countries, Bitcoin is accepted in retail chains to pay for purchases. Bitcoin is included in the list of units of account in many modern electronic payment systems. Bitcoin is used by many commercial banks as a convertible currency, so you can exchange Bitcoin for paper money in many developed countries directly in a regular bank ATM.
Bitcoin is used as ordinary money for settlements between individuals on the Internet.
How to make money on Bitcoin
Making money with Bitcoin is easy. Just start with trade crypto with crypto engine. Firstly, cryptocurrency itself has investment value. In other words, having bought Bitcoin and having waited a certain time, you will be able to sell cryptocurrency at a higher price, that is, earn on the growth of its value. This type of “passive” investment will complement any portfolio of a professional or novice investor.
How to buy or sell bitcoins
If you are worried that the acquired bitcoin will then be difficult to sell, you are mistaken. Today, Bitcoin is a completely liquid market commodity. And this applies even to the Russian Federation, despite the negative attitude of the Central Bank of the Russian Federation. Since, in fact, Russia is simply unable to abstract from the ongoing economic progress, just as the People’s Republic of China was unable to resist. Despite a partial ban by the authorities, the Chinese market is the largest bitcoin market in the world.
Now that you know almost everything about Bitcoin, let’s get back to the most basic – why do we need this electronic currency? After all, purchases through the Internet and investments can be carried out using ordinary familiar money? The value of Bitcoin lies in its advantages:
The Bitcoin peer-to-peer system makes it impossible to track the identity of a cryptocurrency user. Although in fact, all operations are carried out with open source, using the same algorithms as conventional Internet banking.
The Bitcoin cryptocurrency is not subject to inflation. On the contrary – it is constantly growing in price! So, having delayed Bitcoin on your electronic wallet, you can only make money on it. While the value of ordinary money (for example, rubles), due to inflation, decreases every month.