What Bitcoin is and how its work

Bitcoin Trading

Bitcoin is a digital currency, it was created to be used and exchanged without the need for an intermediary, such as, for example, a bank. Bitcoins are totally digital, and are created by a community of users, and is not controlled by anyone. It is basically a cryptocurrency, that is, cryptocurrencies are coins that allow transactions that are always available and can be examined, and are carried out anonymously by both the payer and the receiver. I said that Bitcoin is a digital currency, therefore, it is not printed, and as a result there is no Central Bank controlling them, and it is digitally created by a group of people through the Mining system. With this system, Bitcoins are produced using the computing power of a decentralized network, a set of several thousand nodes, called Miner, which are all connected to one another but without a central base.

Bitcoin Mining

Anyone can be a Miner to produce Bitcoin from the computing power of their computer, all this also brings some profit. This remains an unalterable system, because being all these nodes, even if one of them were to be deactivated, all the rest would continue to operate. Mathematical algorithms are executed that unlock blocks every 10 minutes, and all this through the computing power of the calculators, where in each block there are 25 Bitcoins. In each block, in addition, inside there are the keys and identification codes of each transaction occurred, and all this is produced within the system called Blockchain. Bitcoins are created by a high intensity computer algorithm, which limits the quantity with which they are placed on the market, that is, a total of 21 million Bitcoins will be put into circulation, and it is expected that their production will end in 2147.

With Bitcoin it is possible to buy everything, both goods and services, but in Italy there are still very few commercial businesses that use this currency, and there are not many ATMs, but the trend is however constantly growing, and in rest of the world the cryptocurrency has already extensive use.

To better understand the Trend and apply it to the investment in Bitcoin, you can take a look at one of the charts most used by Traders, that is, the candlestick chart. When a trend is on the upside, it indicates a constant increase in prices. In general, the price of an asset rises when the demand for purchase increases, therefore, the more traders buy Bitcoin, the more the price of the latter will tend to rise. In these transactions, it may happen that within a bullish Trend, prices may go down briefly, and this will indicate the sales actions of a group of Traders, that is, who sell their assets and withdraw the profits derived from the rise of prices.

As for the bullish trend, even for the bearish trend we can identify the points that reverse the price trend making them then go up briefly, and this type of breakthrough depends on the groups of Traders who decide to close their short positions and buy Bitcoin .

Since it is decided to do Trading with Bitcoins, being a highly volatile cryptocurrency, identifying upward or downward trends can make good earnings, both for beginners and professional traders.

An important aspect to know is that to make Trading and invest and earn Bitcoin, only a low investment will be needed, for example, about one hundred euros is spoken. For many investors, outside of the short-term price fluctuation, Bitcoins will gradually grow more and more. At this point, all you need to do is open a free account on a suitable platform, to make your deposits secure, and then grow them by applying good investment strategies.

There are Trading platforms, which allow you to watch the trend, even in real time, of the value of Bitcoin, and then try to predict if the price will rise or fall compared to the current, determining the right trends in the long run, and logically, if the prediction is correct, excellent profits can be obtained.

It is advisable not to miss such a good opportunity, because you could earn a lot of money, but at the same time it is recommended to pay close attention, because being Bitcoin a cryptovalute volatile could double the earning opportunities, but consequently also those of loss of the entire amount invested. It will be good to try to limit the risks as much as possible.