BTC Cryptocurrency Overview | Trader Reviews

13-08-2021

Bitcoin is the first and currently the most popular cryptocurrency. Japanese programmer Satoshi Nakamoto developed the leading digital coin in 2009. Bitcoin is a financial network controlled by thousands of computers around the world. 

Token name Bitcoin (BTC)
Capitalization $807 439 474 162
Issue volume  25.1 million
Algorithm SHA-256

Characteristics of the main cryptocurrency

The bitcoin network is decentralized and has no main administrator. An essential element of this payment system is an open-source program. All BTC transactions are conducted in a blockchain – a public registry in which the information entered cannot be deleted.

The Bitcoin network allows you to send transfers online without restrictions. Currently, bitcoin is recognized as a means of payment by many significant companies: Subway, Amazon, PayPal, etc.

Bitcoin exchange rate
Bitcoin exchange rate for 2021-2022

Buying and storing bitcoins

There are several ways to own a BTC: to mine it, buy it for fiat money, or get it as a reward for a job done. Buying bitcoins is available on most cryptocurrency exchanges: Binance, HitBTC, IndoEx, Coinbase Pro, and others.

You can store Bitcoin in several ways:

  • On an exchange. In this case, the user has no control over his private cryptocurrency wallet keys. To withdraw funds, you need to log in to your account on the exchange, similar to logging into an individual statement in any payment service;
  • A cold wallet. This option involves storing cryptocurrency on hardware devices (Ledger, Trezor), which are not permanently connected to the Internet and have increased protection against hacking;
  • a hot wallet. In this case, a program sends and receives digital coins. Such wallets are connected to the Internet, making them convenient but more vulnerable to hacker attacks. 

Only the owner can access a wallet containing bitcoins. Other network users have no way of knowing the name of the holder of the coins or their amount. 

Bitcoin in trading

The BTC exchange rate is highly volatile, so the leading digital coin can be used to trade. Using the wrong strategy, making mistakes in forecasts, choosing the wrong time to open/close trades can lead to investment loss. Many bitcoin holders choose to keep coins in cryptocurrency wallets for the long term until their price rises. This approach still works, as the BTC exchange rate usually recovers from sudden drops. 

Some investors choose a hybrid strategy. In this case, a large amount remains in the account, and a small number of coins are used to play the market. In this way, one can expect to make a profit in the long run and benefit from short-term changes in the Bitcoin exchange rate at the same time. 

Active traders note in their reviews the anonymity of transactions, the security of investors’ data, and the great potential for Bitcoin price growth. The disadvantages of the leading digital currency investors include the dependence of its rate on the news background and increased volatility. 

Bitcoin testimonials

Conclusion

Despite halving in price over the past few months, Bitcoin continues to lead the world’s most popular cryptocurrencies. At the moment, Bitcoin’s value is recovering again, just as analysts predicted.

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