A comprehensive guide to Bitcoins for beginners

Fluctuating prices of Bitcoin and cryptocurrency always make the headlines of the news. However, for most people, it doesn’t make sense because they aren’t interested in it. No matter whether you are an investor or not, you should have a brief understanding of Bitcoin Broker. 

Here is a comprehensive guide that discusses everything about bitcoin from the start to give you a clear understanding. 

What is Bitcoin?

Bitcoin is an asset that is neither regulated nor owned by any government entity, regulatory body, or financial institution. All the personnel involved in buying, selling, or owning the bitcoins are anonymous. Also, there aren’t any social codes, names, or account numbers allotted to the bitcoin owners.

Bitcoin employs encryption keys and blockchain technology to connect sellers and buyers from around the world. Cryptographers are the ones that mine it, despite the fact that it does not exist in its physical form. It is a network that is not centralised in any way. This indicates that you do not need to go to any bank or other institution in order to complete the transaction on your end. 

Features of Bitcoin

For the past few years, bitcoin has been trending in the financial market because of some of its key features. 

Here are the features of Bitcoin:

Decentralized:

The best thing about Bitcoin is that it does not involve any middlemen or central authorities who could manipulate its network. Thus, the users have the full authority to control their bitcoin. 

Personal information cannot be traced during a transaction:

Most people consider this feature of bitcoin to be the best; however, it has cons as well. This feature protects the personal information of the trader safely, thus preventing data breaches and identity thefts. However, people also take advantage of this feature to do illegal transactions for weapons and drugs. 

Minimal Transaction cost:

Bitcoin charges a very less amount during the transaction. Bitcoin exchange offers several services in which the amount of transaction fees might depend on the type of the transaction. Yet the fees are less than PayPal and credit cards. 

Global currency:

The best part of Bitcoin is that its value remains the same worldwide. Thus no one country can influence or interfere with the prices of Bitcoin. 

What are the risks involved in Bitcoin?

No matter how trending Bitcoin is in the market, it involves certain risks which everyone should know before entering into the world of cryptocurrency.

Here is the list of risks involved:

Limited access:

Although Bitcoin has changed the trading system to a greater extent yet, there are only a few companies that are accepting it in the form of currency. There are a fixed number of online stores that allow cryptocurrency exchange. However, Bitcoin owners can use their money for traveling purposes, as a few travel companies do accept it. 

Involves Financial Loss:

As more and more people are involved in the cryptocurrency exchange and trading, it is leading to the creation of a bubble economy. Once the bubble bursts, the bitcoin will become useless, which will compel the bitcoin heir to sell their asset. But they will be unable to load, leading to huge financial losses.  

Young technology:

Although Bitcoin is trending in the news yet, it is a new technology. It’s just been ten years since it developed. It has to travel a long journey to develop into something solid. With multiple changes taking place in the cryptocurrency market, it is hard to predict what shape it will take in the future. Thus, as a beginner, it is crucial to step into this with caution. 

Technology dependence:

Bitcoin is a digital currency, and every exchange and transaction happens through computers. Thus it is solely dependent on technology. Bitcoins are mined virtually and stored in a digital wallet. Without the technology, Bitcoin is useless. 

No regulation:

As discussed earlier, Bitcoin is not controlled or regulated by any government entity or financial institution. Thus, the fluctuation of its value cannot be determined. Moreover, the government hasn’t stepped into this crypto market; thus, there isn’t any taxation on it yet. 

Wrap up

Bitcoin is an enticing investment for people these days. However, without proper knowledge and skills, it can lead to huge financial loss. Thus, if you are a beginner, make sure to learn enough about Bitcoin and cryptocurrency before investing.