Getting to Know the King of Digital Currencies!

What is Bitcoin? Getting to know the king of digital currencies

Bitcoin (bitcoin) is the first and most well-known digital currency introduced in the world, this currency is one of the unique features that make it superior to other common ones. Also, the way of production and pricing is different, which compared to other real money, makes this type of currency reduce and value and seriously consider the evaluation training with this digital currency. After the crisis of 2008, some people thought of creating digital money that would only work in a digital platform and in a centralized way, to achieve this goal, bitcoin (bitcoin) was a secondary invention as a currency unit. Digital was introduced to the world, with the difference that this type of currency and similar currencies that were created after that operate in a decentralized manner. While only 10 years had passed since the creation of these currencies, that is, in 2018, when the price of Bitcoin reached 13 thousand dollars, this digital currency attracted the attention of many people in society, and even today, more people are attracted to this type of currency. and have been encouraged to do transactions in the digital market.

Definition in simple words

In simple words, this currency is a digital currency like the common currency of countries and its main function is to make financial exchanges between people. The general function of this currency is similar to the US dollar and the Iranian Rial. But there are also important differences between this currency and currencies like the dollar. One of the most important differences is that this token was not created by governments and financial institutions and has no support other than public acceptance.
This currency is generated and works by a mathematical algorithm. In this digital currency, the task of recording and maintaining transactions is the responsibility of computing devices that are also in charge of production. The mathematical algorithm of this currency is an encrypted technology based on the blockchain, which maintains users' privacy while providing network transparency. This means that despite the possibility of anonymity in the network, all users have access to the details of transaction information.

cryptocurrency market

Bitcoin is one of the types of cryptocurrencies or digital currencies that operate in a decentralized manner on the blockchain network. This currency is obtained through digital codes with very complex mathematical calculations, which has made it have a monetary value. To extract these cryptocurrencies, special devices with a very high electricity consumption are used; for this reason, many countries do not consider their production cost-effective.
Among the existing cryptocurrencies, Bitcoin is the first and the most well-known one, which was created for the first time in 2008 after the crisis of that year by a person or group named Satoshi Nakamoto to store and transfer money safely. was introduced to the world, it should be noted that the identity of Satoshi Nakamoto is still unclear.

Among the features that made bitcoin popular is that it has all the features of real money such as the ability to buy, invest, transfer value, etc., but with the difference that due to its decentralized nature, There is no supervision of any government or special organization, and as a result, all intermediaries have been eliminated in doing transactions with this cryptocurrency. They are common and have a much higher level of security. The concerns are because with the presence of Metaverse, Bitcoin will give its place to the digital world of Metaverse and its price will drop.

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The most important methods of earning Bitcoin

cryptocurrency for beginners

Short-term trading and transactions:
Trading (short-term transactions) and long-term investing are two popular ways to earn money from this cryptocurrency. Traders try to make profits with the help of market fluctuations.
Although the basic idea of this task seems easy, it requires a lot of knowledge of the market and familiarity with various technical and fundamental analysis methods. Despite the high risk and high effort required for this method, it has been very profitable for many traders and is one of the most popular methods.


Long-Term Investment:
Long-term investment in the market is similar to trading. The difference is that in long-term investment, buying and selling transactions are between several months to several years. For example, if you had invested in the market in 2010, you would now have about 6.5 million dollars. The price of this cryptocurrency at the time of writing this article is about 29 thousand dollars and the dominance of this currency is 44.6%.

Read more: what is forex trading

Make money for free:
If you plan to earn from cryptocurrencies with zero initial capital, there are methods for you. For example, you can earn money by seeing click ads on special sites or even becoming a blockchain blogger. The way you choose to earn from this currency will change the risk, difficulty, and income of your activity. However, getting free bitcoins is not easy these days and usually, the income is not that much.
Mining:
The most popular way to earn money after trading and investing. Mining is possible without the need for special technical knowledge, simply by setting up a miner and mining node and connecting it to a Bitcoin wallet. But there are various risks in this method as well. Among them: The domestic laws of the country for mining, the high costs of mining, the difficulty of the network of this coin, which has made mining more difficult, and finally the costs of electricity and cooling devices.
Currently, despite the high price of this digital currency, mining is still popular for many users and they invest in it.

how to buy cryptocurrencyBitcoin pros and cons:

  • Decentralization
  • Easy transaction process
  • High Security
  • The anonymity of people's identity
  • Easy to transport
  • Non-receipt of tax
  • The irreversibility of transactions

 

 

 

Several ebooks and video courses have been written focusing on the topic of Bitcoin, blockchain programming, Ethereum, and methods of investing in digital currencies, and we will introduce some of them:

Crypto Nights Video Course(Click to Grab it)

 how to buy cryptocurrency

Things To Avoid When Trading Crypto PDF eBook(Click to Grab it)

cryptocurrency bitcoin

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