Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country’s central bank or government. Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment.
Bitcoin-to-Bitcoin transactions are made by digitally exchanging anonymous, heavily encrypted hash codes across a peer-to-peer (P2P) network. The P2P network monitors and verifies the transfer of Bitcoins between users.
The Bitcoin network is designed to mathematically generate no more than 21 million Bitcoins and the network is set up to regulate itself to deal with inflation.
Bitcoins can be spent by initiating a transfer request from a Bitcoin address in the customer’s wallet to a Bitcoin address in the vendor’s wallet. As of this writing, one Bitcoin (also called a BTC) is worth $104 — but just as with stocks, the value of Bitcoins can fluctuate quickly.
In the United States, Bitcoins are controversial because they can be used to anonymously transfer illicit funds or hide unreported income from the Internal Revenue Service (IRS). Bitcoin policy now requires transactions that involve traditional, government-backed currencies to be attached to an identity.
Bitcoins can be obtained in 3 ways:
- A user can exchange conventional currencies (ex: Dollar, Yen, Euro) for Bitcoins for a fee on various online exchanges (ex: Coinbase).
- A user can obtain Bitcoins in an exchange of goods and services with a merchant.
- A user can generate Bitcoins through a process called “mining.” Mining is the process of a user applying their computing power to the block chain to solve the complex math problems that secure the block chain. The amount of Bitcoins that can be mined is proportional to the amount of computer processing power applied – this means that the average Bitcoin user will not have enough computing power to mine even a few Bitcoins.
In This Course You’ll Learn:
- How To Make sense of ALL the Bitcoin, and cryptocurrency “jargons” out there!
- How To Trade Bitcoin with low risk
- How To Make Money Trading ANY Market And ANY Chart Interval
- How to read Trend Line, Support and Resistance lines on a chart
- Low Risk Cryptocurrency Trading and Investing Strategies
- Candle Stick Trading/Chart Plotting Methods
- Price Pattern Based Trading
- …and Much More!