Trading Bitcoin (BTC) on Beaxy
What Bitcoin is and how it works
Bitcoin is essentially digital-only money. Physical bitcoin do not exist; there are only blockchains, which are special registries with information on the number and transfers of bitcoins.
The idea is not unlike cashless payment by bank cards. Similarly, you do not transfer any physical money for the purchase when you pay for something with a card; just information about your payment appears in a bank registry.
Bitcoin are different in that information on their numbers and transfers is not stored at a certain bank or payment system, but spread across many computers. All information in registries is cryptographically protected. One cannot forge any data on the bitcoin blockchain or transfer, as changing the data recorded in the registry’s blocks is impossible. In this regard, Bitcoin is a fairly secure cryptocurrency.
Why bitcoin costs a lot
Cryptocurrency can be stored and transferred without involving a bank. These days, you can already use Bitcoin to pay for your plane tickets or a coffee. Over the last few years, Bitcoin has skyrocketed in value: from $200-300 in 2015 to a stunning $67,000 in November 2021. This is what made cryptocurrencies attractive trading and investment tools.
By now, almost 19 million Bitcoins exist, which is about 90% of all possible coins. About 900 new BTCs are mined every day; however, the number of new coins appearing daily is dropping over time. Once all possible Bitcoins are mined, their total number will reach 21 million. This number is defined by the features of blockchain technology.
How Bitcoin is stored
In order to transfer coins and make payments with them, you need a Bitcoin wallet. These wallets hold the digital keys required to make transactions. Should a private key be misplaced, the money will be lost for good. This means you can’t call the bank and have them do something to get it back; the Bitcoin system doesn’t have any representatives or regulators.
There are different types of wallets, with varying degrees of security and data privacy. The three most popular formats are software, exchange, and hardware.
A software wallet is a very common way to store cryptocurrency. It provides quick access to funds, is usable on multiple platforms, and offers some degree of security. You should remember that such a wallet, while called software, is still tied to the physical media it is stored on. If you lose this physical media, your funds will most likely be gone irretrievably.
Exchange wallets are chosen for storing cryptocurrency by millions of traders and investors; the reason is that such wallets allow one to recover funds even if the physical media holding them is lost.
Hardware wallets are physical electronic devices, e.g., USB flash drives. All data and keys to it are stored on this small gadget. This solution is easy to configure; hardware wallets are convenient to use, and you can even back them up. This storage method is also fairly secure; however, it is also way more expensive than maintaining alternative cryptocurrency storage methods.
Your choice of a wallet for you cryptocurrency should be based on the desired level of security and comfort when handling funds, as well as the need to recover funds in case of physical media loss.
In order to buy or sell Bitcoin, or trade it for any other cryptocurrency, you will have to enlist the services of an intermediary, that is, a cryptocurrency exchange or trading service.
What the future holds for Bitcoin
DeFi, or decentralized financial systems, are getting increasingly popular by the day. Experts and analysts believe that Bitcoin’s value spike seen in 2019 was not the last one. Robert Kiyosaki, author of a number of best-selling books on entrepreneurship, predicts Bitcoin to soar to $75,000 soon. Blockstreem CEO Adam Back even projects the value of Bitcoin to touch the $300,000 mark within five years. In turn, Mark Yusko, founder, chief investment officer, and managing director at Morgan Creek Capital Management, a firm that advises pension funds, charities, and wealthy individuals on investment, opines Bitcoins could be worth over $400,000 by 2030.
Bitcoin historical price
Decentralized - Transparent - Immutable
Today, Bitcoin has become so ubiquitous that even hedge funds and government agencies invest in it. The Houston Firefighters’ Relief and Retirement Fund acquired as many as $25 million worth of crypto. By now, more than 23 million people own cryptocurrency, and that number keeps growing. Over the past five years, the value of Bitcoin has increased a whopping 75-fold. Naturally, this attracts investors of all levels. Long-term investment is less risky, but also less profitable — in theory. It is suitable only for those who can afford to simply put money into crypto and forget about it for a couple of years. On top of such investment, you can opt for trading Bitcoin. This way, you’ll be able to earn not only when its value rises, but also when it falls. Traders can make many transactions a day, turning a profit each time.
Once you’ve made the decision to invest in Bitcoin, the first thing to do is to pick a cryptocurrency exchange. Learn more about Bitcoin trading on Beaxy.
BuyExchanges are online platforms where cryptocurrency is traded. It is essentially an intermediary for Bitcoin buyers and sellers. The first thing to do is to decide on an exchange to use and to create a new account. Then, you will have to make a deposit in real money; it will be used to acquire the desired digital currency. There are many ways to top up your account, and there’s a convenient option for everyone. You can replenish your cryptocurrency exchange balance using popular payment systems, or send money directly from your bank card.
Bitcoin can be bought at the listed price almost instantly; transactions barely take any time. Such a transaction is called a market order, serving to instantly buy or sell an asset at the most recent price. If you want to purchase Bitcoin at a price you set yourself rather than the market price, you can also open a limit order. This way, you can specify the amount of the assets you stand to purchase, as well as the desired price per. As soon as the Bitcoin reaches that value, your transaction shall be executed. You will receive the assets you want at the optimal value.
You can use a number of currencies to purchase Bitcoin:
Bitcoin exchange
Being one of the most popular digital currencies, Bitcoin is featured in many cryptocurrency exchange pairs. To exchange currency, you also need to create a cryptocurrency exchange account, and then top up your deposit using any convenient method. There is plenty of currency pairs to choose from. Check the list of pairs to see the latest asset price, as well as its dynamics over the past day, showing how much the value fell or rose in percentage.
There are apps to exchange or buy Bitcoin, which streamlines the process. The Beaxy crypto trading app allows you to exchange or purchase Bitcoin instantly, taking no more than a few seconds to execute transactions. It’s easy to keep track of your assets and moves in your personal account, and even a total newbie can make the most of the app thanks to the user-friendly interface.
Like any other cryptocurrency, Bitcoin is highly volatile, helping turn a profit barely ever seen in trading fiat currencies or commodity markets. Join Beaxy and be on your way into the world of trading and investment!