Best Cryptocurrency Trading Broker And Exchange Platform
If you are planning to invest money in crypto, then best cryptocurrency trading broker and exchange platform are important for you.
After understanding the purpose of trading, most people engage with the financial marketplace. Over the year, there have been many attempts for creating digital currencies. Many people came up with many ideas. At last, cryptocurrency came to the market as a decentralized digital coin.
At this time, cryptocurrency is a hot topic because of its popularity. Let’s start with a definition of cryptocurrency.
Milton Friedman an Economist who received the 1976 Nobel Memorial Prize in Economic Sciences told that-
“I think the internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing but that will soon be developed is a reliable e-cash.”
Furthermore, cryptocurrency is a digital currency which works as a medium of exchange. “Digital Gold” is another name of the virtual currency. The transaction occurs when the electricity converted into a line of codes with monetary value.
Moreover, this digital currency is created and managed by computer software. There is no legal authority to run the system.
As per formal Definition-
“A cryptocurrency (or cryptocurrency) is digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.”
Additionally, if we have a closer overview of our economy, we can see that the Government has control over the real currency of a particular country.
But, the Government has zero controlling power in Cryptocurrency. Because the currency is decentralized and no physical identification.
If you are ready to collect more information regarding crypto and its features, then read this What is Cryptocurrency article.
Surely, the article will help you to know the history of cryptocurrency. Especially, users control the transaction process from their system.
The database is so strong that no one can change any information within the block. To process a transaction of cryptocurrency, you don’t need to go to the bank, no need to use PayPal, and even Facebook.
Crypto works through the block-chain system. We will give a short brief about Block-chain in this article.
On the other hand, cryptocurrency is based on cryptography.
Traders don’t need to rely on the Central Bank or any trusted third parties for verifying the transaction and creating a new unity. To regulate and verify the transfer of funds, users use Cryptography techniques.
As the currency is led by the users, so the information about the transaction passed from person to person through the internet.
In among cryptocurrency, bitcoin is the first digital currency. The coin was introduced by Satoshi Nakamoto in 2008. Now a day, there are numerous crypto coins in the trading market.
People don’t need to carry crypto in their wallet. As it is a virtual currency, so there are some differences between real money and Virtual money.
Firstly, like real money, there is no intermediate in cryptocurrency. The money transaction occurs from peer to peer. Cryptocurrency is highly portable, highly durable where real money plays a moderate role.
Lastly, crypto is globally accepted. In the security purpose, the cryptocurrency is highly secure.
| Broker | Type | Min Deposit | Features | Description | |
|---|---|---|---|---|---|
|
Trading | $10 | Fees: Yes Fiats: Yes Mobile App: Yes License: Yes Demo: Yes |
IQ Option provides 22 Cryptocurrencies to trade. | Free Account Read Review |
|
Trading | $100 | Fees: Yes Fiats: Yes Mobile App: Yes License: Yes Demo: Yes |
Competitive swap rates. No risk of wallet hacking or theft. Up to 20:1 leverage | Free Account Read Review |
|
Trading | $5 | Tight spreads and NO re-quotes. NO hidden charges. Going short/long according to market moves. Available on the XM MT5 platform. | Free Account Read Review | |
|
Trading | $10 | Fees: Yes Fiats: Yes Mobile App: Yes License: Yes Demo: Yes |
Leverage up to 1:600 for professional clients. For new traders 50% commission discount. | Free Account Read Review |
Types Of Cryptocurrency
People use digital currency as a medium of exchange. Eventually, there are three types of digital currency available in the market. These are:
- Bitcoin
- Altcoin
- Token
However, people are more focused on the coins, rather than digital tokens. Because after Bitcoin, many new block chains were created by different person. These block-chains are called Altcoins.
Token which is the last type of cryptocurrency do not have its own block-chain. Instead of block-chain, they used dApps.
But, you will see huge differences among those digital coins. In the following points, we are going to describe each popular types of cryptocurrency one by one.
In 2008, Satoshi Nakamoto has invented the Bitcoin as the first cryptocurrency. After the invention of Bitcoin, a lot more digital currency was invented. So, bitcoin is not alone anymore.
In the currency market, bitcoin is highly volatile in cost. It is the most reliable among all coins. You can use this digital currency for the online transaction.
Carrying this currency is possible with the help of a digital wallet. The function is almost like physical cash.
Bitcoin contains low processing fees. Decentralized digital currency is secured by the peer- to- peer network.
With the help of a peer-to-peer network, users can make their transaction internally.
Except for Bitcoin, there are more than thousands of Altcoin available. Majority of those digital coins works as an alternative to Bitcoin.
Nevertheless, individually these coins carry a different algorithm. Ethereum and some new digital coin have popularity in the currency market. Some Altcoins have a huge platform for building applications on a block-chain.
Litecoin founder was Charlie Lee in 2011. The coin can make the block-chain generation 4X faster. It offers the fastest transaction. You can also purchase Litecoin.
Moreover, there is zero control over this coin by the central authority. Transaction fees are lower than Bitcoin.
Ethereum established in 2015. The founder of the ethereum digital coin is Vitalik Buterin. It is not only a digital currency but also a decentralized software platform.
This coin had launched a pre-sale for Ether. At the same time, ethereum is the second most popular coin, which traded after the Bitcoin.
Ripple is a cryptocurrency, which enables money transfer from one country to another country. To transfer ripple, you need to convert your currency into a ripple
After that, the information will store into the block-chain network. You can pay your necessary bill instantly without any hassle. Ripple offers low-cost transaction. This decentralized currency released in 2012.
Dash came to the market in 2014. The original name of the Dash is a dark coin. You will find a similarity with Bitcoin although, this coin is the fastest and cheapest than Bitcoin.
People used this coin to buy goods and services. Evan Duffield invents Dash coin. The transaction process occurs untraceable.
These are not only digital currency available in the market but also there are lots more currency likes Monero, Bitcoin Cash, IOTA, Tron, and so on.
We just gave a short brief on popular ones. In our education part, you will get a clear view of various types of decentralized digital currencies.
Benefits Of CryptoCurrency
Over the last few years, cryptocurrency is gaining popularity rapidly. Though it has no physical tangibility, benefits of cryptocurrency are many.
Here are the following benefits of Cryptocurrency:
Cryptocurrency transaction process maintained digitally. So, no one can perform a fraud transaction with the help of crypto.
People can easily access to the crypto market from all over the world. You just need an internet connection to send or receive money from another person.
For its decentralization, anyone can use cryptocurrency from anywhere. The process will operate through a peer-to-peer network.
Payment through cryptocurrency needs a few seconds only. It is the fastest payment all over the world. You don’t need to put card details before sending any payment. The fastest payment gateway helps to receive digital currency in a short time.
Crypto charges lower transaction fees in every payment. There are no hidden charges. After payment through credit card, the buyer needs to pay yearly charges to the bank and also charges on each transaction.
Here, you don’t need to pay yearly transaction fees, if you pay through digital coins.
Sharing your identity with Government or Bank is not necessary for traders. To process your transaction, you just need to share your account number, receiver account number, and the amount you wanted to send.
Cryptography secures the transaction of cryptocurrency. Each transaction which people made is secure and safe. No one can make a payment from another person’s wallet.
In the credit card, the owner can apply for a chargeback after the payment is done. In crypto, you cannot chargeback after you made the payment.
Surprisingly without any middleman, you pay or receive money from others.
Besides trusting anyone, you can keep a record of your own. Remember, you are the master of your own money. Additionally, store your money safely into the cold storage.
Cryptocurrency can also trade internationally. There is no barrier between the two countries. Without any hassle, you can make a payment from anywhere in the world.
The inter-country transaction is much easier because there is no control of Central Bank over cryptocurrency.
Cryptocurrency is a decentralized digital currency. It is not regulated by the Government, or the Bank, or any kind of financial firms.
The person who wants to send the coin to another person has strong control over his or her accounts.
The digital signature will protect your transaction from stealing. No one can steal your personal information from your account.
The account will secure by a password. If anyone has your public key can see the transaction.
If you pay through a credit or debit card, it will take time to process the transaction.
Bank to bank transfer or wire transfer is the fastest payment method to transfer payment from one account to another account.
But, sometimes for unethical activities or technical problems, if a bank wants, they can freeze your account money for a time being.
Payment through cryptocurrency is more time consuming and safe, rather than the bank transfer.
Cryptocurrency does not need any wire to transfer payment from one account to another account. It will process through the internet connection.
The authority will not keep a record of every transaction. Blockchain is the biggest ledger for a crypto coin. People can update record any time in Block-chain.
Cryptocurrency helps to control the inflation of a particular country. When prices of a product in a shop rise quickly, then it could be good alternatives to have some coins in your cold storage or crypto wallet.
People are getting fast transaction facility after using Cryptocurrency. If we use this digital currency more efficiently, then our global economy will step ahead day by day.
Crypto Market Capitalization
Until now, the total Crypto market cap is approximately $267.6 Billion. You can check our crypto market tool to find out the recent cryptocurrency market capitalization.
It is a huge bull effect in the highly volatile market. As the crypto market is volatile, so the price movement of cryptocurrency fluctuate the most.
But, is it necessary to get up to date about crypto market capitalization?
The answer is YES. Market capitalization is the value of the total market of a particular stock, currency, and share. Besides, it is a well-known metric for traditional securities.
Especially in the cryptocurrency, market capitalization is important to indicate the demand for a particular digital coin. It is also necessary to see the currency strength according to the market current price. Additionally, traders can evaluate the coin after analyzing the market cap.
Prices can be high because of many metrics. Because of the high price of a digital coin, sometimes people mislead.
Moreover, small market cap holders often crushed by larger traders. After seeing the high cap, they try to buy or sell a particular currency without thinking about the future.
The market cap also indicates the crypto market stability along with the interest of people. According to the market cap, bitcoin is in a leading position.
Secondly, the largest digital token Ethereum (ETH) is leading the second position in the marketplace. Similarly, Ripple (XRP), Bitcoin Cash, EOS, and some other altcoins also leading the marketplace.
People can measure after seeing the financial report of a company before investing in stock or shares. Here, Crypto does not provide any financial statement to measure which one is the best in the currency market.
We need to calculate a simple mathematical term to find out the best from the marketplace.
Market Cap= Circulation supply of Token X Current price of the Token
Suppose a coin has 200 tokens of supply and the current market price is $30. So the market capitalization of that coin is-
Market Cap for a particular Coin= 200 X$30 =$6000
Undoubtedly, a healthy market capitalization indicates a strong digital coin. So, it is important to figure out the market cap before buying or selling any coin
How Does Cryptocurrency Work
Cryptocurrency is a digital currency which has no physical appearance. So, you can make the transaction without keeping the coin in your pocket.
The transfer of funds occurs with the help of the fastest internet connection. After all, the Cryptocurrency works without any central authority or any bank or any financial institute.
The question is HOW?
As we mentioned before, cryptocurrency is a digital coin which is recorded digitally and you can send through the internet.
You can send crypto coin person to person, person to business, and also business to business through the internet. The process is known as a peer to peer network.
The transaction fees are lower than the bank transaction fees.
Cryptocurrency works digitally with the help of internet. People store Cryptocurrency in the crypto wallet or cloud wallet or cold storage. The crypto wallet comes with the public key and the private key.
A public key is encrypted messages without decrypting them. On the other hand, private key decrypts messages encrypted with a matching public key.
With the help of a private key, the owner can log into their crypto wallet. The key is secured with a password.
You don’t need to trust anyone because you have complete control over your money.
An account has a pair of cryptographic keys. Coins are sending from one public key to another public key. The transaction needs to be signed by the sender with a private key while sending to others.
Are you freaked out after hearing that, without the bank record or any central authority how can it possible to keep the record of a transaction?
It is possible because transactions are recorded on a public ledger. A block-chain is a huge ledger which recorded every transaction. Lots of people are keeping track of the same transaction.
Crypto miners use bespoke software to solve cryptographic mathematical problems. Miners cannot change or remove any data.
There is no particular person or a group to update records continuously. Anyone can update the transaction record on block-chain. People are separately maintaining the block-chain record.
Before sending or receiving a coin from anyone, you have to share some information with the receiver or sender.
- Account holder number
- Account number of a person who is going to receive
- Sending amounts
Suppose you want to invest in two sectors or want to purchase two products using a crypto coin. In that case, the software will accept the first transaction, and deny the second one. Before accepting the second one, the software will ask every ledger either you have enough balance to purchase both, or not.
On the other hand, both crypto network and wallet will automatically check your previous transaction to make sure that you have enough in your account or wallet to send the first place.
Cryptocurrency Wallet
A cryptocurrency wallet is a software program. The wallet is secured by the cryptography. You can communicate with the crypto network through the wallet.
The cloud wallet is basically for storing digital currency, interacting with the various blockchain, sending, and receiving digital currencies from various personalities. The digital wallet also contains multiple private and public key pairs.
According to the Technical Definition:
“It’s a software program that stores your private and public keys (they come in pairs), enabling you to send and receive coins through the block-chain, as well as monitoring your balance.”
The exchanger can monitor their balance from the cryptocurrency wallet. You can easily relate this wallet with your leather wallet. These two types of wallet perform the same activities to accept some issues.
One is holding the real currency and another one is holding the virtual currency.
Moreover, you can carry the wallet digitally. Digital wallet helps one person to send money to another person within a second, which is not possible from your pocket wallet.
In the crypto wallet, there are two elements.
- Private Key
- Public Key
With the help of a private key, you can access your account from anywhere of the world. Due to a password, a private key holder can secure their currency.
Secondly, to receive funds from another person, you need to share your public key. The public key is shared by the form of text or QR code.
It is wise not to share your private key with anyone. Never trust Crypto wallet software without knowing the source.
Types Of Crypto Wallet
Crypto wallet allows exchangers and investors to store digital currency. Though we have already discussed the definition of crypto wallet, in this phase we will show you the types of wallet.
By the help of the digital wallet, people can exchange one currency to another digital currency, even into cash.
Crypto wallet has no similarity with e-wallet. The block-chain authority maintains a crypto wallet.
There are several types of cryptocurrency wallet. These are:
- Online Wallet
- Mobile Wallet
- Desktop Wallet
- Hardware Wallet
- Paper Wallet
Let’s start from the first.
This type of wallet is useful for those people who want to browse from the internet. You can access from web browser easily.
Even you can access from multiple devices at a time.
Online wallet mainly runs through the cloud. The Hot wallet always connected with the internet.
So, you can’t perform any activities without an internet connection.
By the help of the hosted or without a hosted wallet, you can control your funds. The transaction process is quicker than other wallets.
Handling transaction is easy for wallet holders, without downloading any software.
Moreover, the online wallet is suitable for storing a small amount of digital currency. You need to set an extra layer to protect money from thieves.
The mobile wallet is based on internet. You need to connect with the internet all the time to operate. Through the mobile device, you can connect your wallet.
The mobile wallet is also acceptable in any physical stores to complete payment. It is safer than a web wallet.
You can move anywhere with the user-friendly wallet. To open a wallet, you need to install the application on your mobile device.
For more privacy setting you can use the TOR network.
The desktop wallet is more secure than the mobile, and the web wallet. Via the cold storage method, you can operate the wallet.
It is easy to use. For more privacy setting you can use the TOR network.
The proper backup system is necessary to store currency. You have to back up your desktop daily. Keep that in your mind if the desktop crash, then your entire amount will go forever.
Therefore, you can download the wallet in the supported desktop device. Particularly, it is a secure option to store currencies.
If you use this cold storage without connecting on the internet, then this will bear less risk.
A hardware wallet is less user-friendly. This wallet is more secure than hot wallets. It works as a USB device.
Hardware wallet store user’s private key. The cold wallet is the combination of the private key along with the public address. By the help of this wallet, you can perform your online transaction.
Some hardware wallets come with a screen. So, you can store your cryptocurrency for a long time. It is the most secure way to store digital currencies.
Though the wallet is a little bit expensive, you can use it on offline.
It is the oldest cold storage process document with all the necessary data. A paper wallet is popular cold storage.
A paper wallet is not possible to store in any device. Data need to be printed out in a piece of paper. But, the wallet is a safer option for users.
Users don’t need to store private keys on a third-party server. You can generate your private and public key by printing on a paper.
How Crypto Wallet Works
Cryptocurrency wallet comes up with different forms. Each form is different from another one. Few wallets are under the hot wallet section and few in cold wallet section.
Crypto wallet works as a treasure chest. You can also compare this wallet as a bank vault. We keep all the precious things in the bank vault. Here in the digital world, we keep our currency in a digital wallet.
Crypto is a digital currency, so it has no physical form. You need to secure your wallet by following 3 simple steps:
- Upgrade of your software
- Wallet backup
- Adding the additional security key
The crypto wallet has a wallet address that you can share with anyone. A wallet address is same like as your bank account number. Without crypto wallet address number, one can not transfer funds in your wallet. Remember that every address is unique.
Here, is an example of a crypto wallet address-
“1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa “
Therefore, there is no relation between the Public key and Public wallet address.
The digital wallet is secure with a pair of digital keys. The pair of the private and public key has control over your funds.
After all, private Key allows you to enter in your wallet. Moreover, you can mention the private key as a secret password.
The Private Key is in Hexadecimal Code, something like this-
“2940447a4ed5eef7f46bcc185cb2f21d2a8bffcde5418156a9d1a44aa137558”
The public key is a hashed version. It is mathematically linked in your wallet address. On the other hand, the public key always coupled with a private key for finishing the transaction process of crypto wallet.
We can say that-
“Public key is a cryptographic code helps to receive cryptocurrency into the crypto wallet.”
Here is an example of the Public key-
“99b1ebcfc11a13df5161aba8160460fe1601d541”
Another key point is that the pair of keys secure each transaction of cryptocurrency. There is transparency over every transaction of crypto.
Cryptocurrency Trading Platform
Cryptocurrency trading platforms are the places where you can trade globally your digital coin.
A few trading platforms also accept exchange of these digital coins. There is no tangible value of crypto coins.
Traders can obtain cryptocurrency in 3 ways:
- Mining
- Remuneration for services
- Direct Buy
Through a cryptocurrency platform, you can buy, sell, and exchange(sometimes) coins.
But, before selecting a platform, you have to keep two things in your mind.
- The platform is accepted by any country
- Tokens Volatility
Cryptocurrency Exchange
Exchanging is the fundamental part of a trading marketplace. Another name of cryptocurrency exchange is a digital exchange.
Exchange means when the market allows you to trade or exchange cryptocurrency for other assets. It can be conventional fiat money or other digital coins. As a result, investors can use cryptocurrency exchange to cash out when they need.
In Cryptocurrency exchanges, trading instruments are traded into pairs. Many of these trading or exchange platforms support crypto pairs.
For example, Bitcoin and Ethereum. Besides, some of these platforms accept Fiat pairs. For example, Bitcoin and USD. It is known as fiat pairs.
The cryptocurrency exchange is a platform where you can buy, sell, or exchange currencies. The platform works as an intermediate between buyers and sellers.
Based on the market demand, price changes or fluctuate randomly. During exchange cryptocurrency, some underlying fees are available.
To exchange digital currency, you need to open an account. To open an account, the exchanger needs to submit personal information along with official documents.
People need to gather enough knowledge regarding cryptocurrency exchange. You already know that Bitcoin is a famous digital currency among all.
Firstly, you have to buy Bitcoin and Ethereum. Then you can send it to the exchange or can buy other digital coins or Altcoins.
In the currency world, Bitcoin and Ethereum (XRP) are worked as Gatekeeper.
On the other hand, less common cryptos are traded against Bitcoin and Ethereum. Those altcoins are not possible to purchase directly with fiat currency.
There are more than 200 cryptocurrency exchanges available. Some are unregulated and some are not available for all countries.
Types Of Cryptocurrency Exchange Platform
The platform allows you to exchange digital currency from one person to another person. With the help of the exchange platform, you can even buy and sell cryptocurrency.
Even though, the exchanger can select the exchange method, which is more suitable for them
There are mainly 4 types of cryptocurrency exchange platforms available:
- Regular or Traditional Exchange
- Broker Exchange or Brokerage Firm
- Peer-to-peer Exchange or Direct Exchange
- Crypto Funds
Now in this article, we are going to drag down of each point one by one.
Regular Exchange is one kind of traditional exchange of cryptocurrency. In this traditional exchange, traders trade or exchange digital currency based on the recent market price.
Third-Party or middleman is involved with every exchange. It is the simplest form of exchange in term of others.
The exchange is performed centralized. Because it is the true nature of this exchange. So far, the exchange is managed by a particular company.
All types of traders or exchangers are comfortable with the traditional exchange. You need to put your personal information or data to perform the exchange. The exciting part is that you have the total control on your fund.
Moreover, the regular exchange accepts cash payments as well as cryptocurrency.
With the help of brokers, the trader or exchanger performs trade for collecting profits. Here, brokers charge a commission from your trading profit. Broker exchange is also centralized in nature. It sell and buy a currency which is set by the broker.
Some exchanges platform allows traders to copy expert traders. They mainly focus on bitcoin trading and other famous altcoin.
The cryptocurrency brokerage exchange firm is a website based platform. You can simply browse from the internet to perform your trade or exchange.
Moreover, this exchange type is better for new users. The trading process is simple and easy but you have to pay slightly more price while exchanging digital currency.
The direct exchange platform offers both decentralized and centralized exchange types which are more suitable for all traders. You don’t need to use the trading platform to perform the trade. On the other hand, the exchange allows both sellers and buyers to trade directly with the help of the peer-to-peer network. Sellers and buyers do not use mixed market price.
Firstly, the seller set the price and the buyer finds a suitable seller among all via the platform. Sometimes they perform OTC (Over the counter) exchange.
Secondly, the platform matches buyers and sellers to complete the exchange because the buyers denote the price through the platform.
To carry out the trade, you don’t need to register with your personal information and also don’t need to put any verification.
By the help of crypto fund, you can buy or hold crypto. Funds are professionally managed crypto asset. You don’t need to purchase or store crypto to join in the exchange. Investors and traders can directly invest crypto from funds.
How Cryptocurrency Exchange Works
The exchange platform is a digital marketplace where you can buy and sell digital currency. Crypto exchange platform allows you to exchange currency more efficiently.
It is a platform which allows exchanger or holder to exchange their crypto against the major currencies like USD and EUR. It also allows exchanging against the digital coins. You need to have a pair of digital currency or a pair of digital and fiat currency.
Moreover, you must have a crypto wallet to perform your exchange. The cryptocurrency exchange or trading is similar to Forex trading.
In Forex trading, people usually trade currency pairs. Instead of selling and buying currency pairs, here you can sell and buy digital coins.
As we all know, cryptocurrency is a decentralized digital coin but, most of them are exchanging through a centralized process. Transaction fees are less than 1%. These fees are charged by the brokers in each transaction.
To perform the exchange process, you need to have an account and secure password for that account. The customer placed an order into the exchange platform. The exchange platform finds a suitable buyer and seller for that particular transaction.
Information of the transaction directly goes to the crypto wallet. Here, traders sometimes use “Hot” wallet to perform trading and sometimes use “Cold” wallet. The ledger keeps all track of the transaction or a particular exchange report. It is necessary to mention that “hot wallet” is less secure than the “Cold Wallet” or Cold Storage.
Ordinary customer performs trade directly from the exchange platform; others take help from the brokers.
The distribution of the cryptocurrency is based on the block-chain. A block-chain is a software combination of numerous blocks. It is also familiar as a master of the ledger that keeps all record of transaction of each day.
What Is BlockChain
Blockchain is an open decentralized database system. The blockchain technology is managed by a peer-to-peer network. In 2008, Satoshi Nakamoto has invented the block-chain technology. Block-chain is secured by the help of cryptography.
Anyone can involve with the blockchain transaction. You just need to have an active internet connection.
Moreover, the information of each data is secured in the blockchain. For the trust, you don’t need to depend on the third party.
You can send transactions one place to another place easily. The technology is not restricted in any county. After the invention, fraud is reduced a lot.
You can record anything via blockchain which is related to value either it is a financial transaction or, medical records. Transactions are recorded in a public ledger.
Blockchain is an electronic public ledger. Anyone can access the ledger to collect information or to add information.
Blockchain stores information into the blocks. These blocks are linked together chronologically to form a continuous line. Blocks are secured by the encryption known as a public key.
Each chain of the block contains information. Moreover, each block contains data, hash, and hash of the previous block.
So, to change any information of any block, you don’t need to rewrite it again. It will create another new block with all updated new information. Any information which is recorded into the blockchain is difficult to change.
On the other hand, traders and investors can view the information whenever they need it. They can add information, but they can’t change or delete any information from the block.
What Is Bitcoin
Bitcoin is a popular cryptocurrency, which came to the market in 2008. Bitcoin is a digital currency which has no physical representation. It is the first decentralized digital coin. There is no authority or an intermediary, which can control the Bitcoin transaction.
Definition of Bitcoin-
“A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”
Bitcoin is different from the regular electronic payment system. You can control your funds and also can monitor the transaction history of Bitcoin.
Generally, you can transfer bitcoin person to person via the internet, without any help of banks and other financial institutions. You don’t need to carry coins in your pocket to complete your payment.
There is no chance to be frozen off your Bitcoin account. You can send Bitcoin anywhere of the country to any person. The transaction fees are lower than the fiat currency.
You can purchase anything by Bitcoin. Besides, this digital coin is also used in the business sectors. Remember, it is not a company or a particular company product. Furthermore, the transaction of bitcoin is transparent.
History Of Bitcoin
From 2007, Satoshi Nakamoto was working on the Bitcoin concept. He came up with a digital currency concept to overcome some limitations of cash payment.
18 August 2008; a domain was registered for Bitcoin. The domain name was Bitcoin.org. The domain was registered at anoymousspeech.com.
Firstly, on October 31, 2008, Satoshi Nakamoto came up with an authorization paper. The design paper was all about the bitcoin and some overcome idea from the problem of double-spending. The title of the whitepaper was peer-to-peer network system.
Secondly, on November 9, 2008, Satoshi Nakamoto collaborated with a website named sourceforge.net.
Thirdly, January 3, 2009, Bitcoin mining was invented to process new bitcoin. In that time to solve one mathematical term of blocks, Satoshi agreed to give only 50 bitcoin as a reward. Miners create a Block 0 (Genesis Block).
January 12th, 2009, the first bitcoin transaction occurred. The block was 170 and the transaction occurred between Satoshi Nakamoto and Hal Finney. Finney is a developer and cryptographic activist.
The New Liberty Standard came up with an exchange rate of Bitcoin. The exchange rate was $1=1,309.03 BTC. To mine a bitcoin, miners need to spend lots of electricity. So, the cost of electricity was also included in the value of Bitcoin.
December 16, 2009, Bitcoin version 0.2 released. But after a long journey from 2008 on December 30, 2009, some difficulties regarding bitcoin transaction was increased.
6 February 2010, the term bitcoin currency exchange was invented. After the approval of encryption patent on May 22, 2010, the people spent 10,000 BTC to buy just one Pizza for Bitcoin Forum.
Bitcoin version 3.0 released and after that, the value of Bitcoin was increased a lot. The market capitalization exceeds US$1 million in 2010.
In 2012, bitcoin wallet was come into the market to make a smooth transaction. In 2013, the new version of Bitcoin is released. The version was 0.8.
In 2017 the exchange rate of bitcoin was increased $5000. The exchange rate is changed day by day. In 2018, Bitcoin is still popular in the digital currency market. The transaction process is fast and secure than before.
What Is Altcoin
The Bitcoin was the fast mover in the cryptocurrency world. Now, in the crypto world, there are more than thousands of Altcoins available. So, Bitcoin is not alone. The altcoin is the combination of two words; one is “alt” and another “coin”.
The word “Alt” indicated the word alternative. So, the altcoin is the alternative coin of bitcoin. On the other hand, alternative coins or Altcoin works similarly of bitcoin.
Some altcoin is also decentralized by its nature. Some altcoins are built the basic framework provided by the bitcoin.
Those traders who are novice are now working with various altcoins. Bitcoin is popular in the market and people want to trade this digital coin the most. So, the bitcoin market is volatile. On the other hand, the altcoin is not that much popular so it’s easy to grab the market during the trading time.
The popularity of altcoin is increasing day by day. The popularity mainly varies on the features of altcoin, popularity, price and so on. Now in 2018, there are many popular altcoins is in the crypto market. One of the most popular is Litecoin. The interesting part is that litecoin creates new coins in every 2.5 mins where bitcoin need 10 mints to release a new bitcoin.
The first altcoin was “Namecoin”. The Namecoin came to the market in April 2011. This altcoin launched after the successful entry of the Bitcoin. The coin was based on the bitcoin code and also followed the Proof-of-work algorithm.
Some altcoin has fundamental building blocks like bitcoin. Some altcoin has different monetary policy rules. So, you can say that altcoins are much like Bitcoin.
What Is Bitcoin Mining
People operate a computer to mine Bitcoin. Bitcoin mining is a process to release new Bitcoin, Bitcoin verifying, storing, and secure bitcoin transaction. It is the backbone of the Bitcoin network. Miners need to solve mathematical problems or difficult puzzle to get Bitcoin.
It is required to have a computer and a special program for Bitcoin mining.
The basic requirements for Bitcoin Mining are-
- High and specialized computers
- A fast and strong internet connection
- High power or electricity
- Bitcoin mining hardware
Instead of using a regular computer, there is some mining hardware available in the market. The hardware is used to process, verify, and store bitcoin. The miners need to solve the problem to enter another block.
Shortly, mining hardware helps to create more blocks quickly and efficiently.
Bitcoin miners verify transaction instead of banks and other financial companies. The bitcoin transaction information distributed within the bitcoin network. After that, the transaction information is stored in the blockchain network.
Miners mine bitcoin to get a reward. The reward is a new bitcoin. The miners get a full block after solving critical mathematical terms. Each block contains 12.50 of bitcoins. There is also a limitation of mining.
So, you can only mine 21 million Bitcoin in total. After completing the total amount of 21 million bitcoin, no new bitcoin will be created for you.
Final Words
At last, cryptocurrency has a unique position in the trading market. People use crypto coin while doing any International Transaction.
Trading cryptocurrency is almost the same as trading with the fiat currency. No one can give a guarantee of how much you could earn from one trade.
But, cryptocurrency is profitable in many ways only when you will play the right card at the right time.