What is Bitcoin and Why Is It So Attractive For Traders?
Bitcoin is a digital currency that is virtual. Often referred to as the flagship cryptocurrency, Bitcoin is an online version of cash that performs almost all functions of fiat currencies. Founded in 2009 by Satoshi Nakamoto, the virtual currency is decentralized. What this means is that it is not under the control of any authority such as Central bank.
Unlike fiat, currencies, there are no physical Bitcoin’s. Instead, Bitcoin coins exist as balances on a public ledger on the cloud. The lack of intermediaries allows the sending of Bitcoin from one user to another through a peer-to-peer network powered by Blockchain technology.
Bitcoin came into being as pioneers sought to eliminate intermediaries in transactions. The cryptocurrency also arose as the need to cancel interest fees on transactions became a reality, as well as the need to ensure no one can trace transactions carried on a network. Bitcoin also sought to address concerns that central banks among other authorities consistently engaged in currency manipulation.
Read More: What Are Cryptocurrencies And How Do They Work?
How Do People Get Bitcoin’s?
The simplest way to own a Bitcoin involves buying from cryptocurrency exchanges using real money. Likewise, you can get hold of Bitcoin’s by adding support for Bitcoin transactions in business, thus allowing people to pay for goods and services rendered, using Bitcoin.
The other complicated option of acquiring Bitcoin involves using supercomputers to try to solve complex puzzles. Correct answers to such puzzles often lead to rewards in the form of Bitcoin coins as set by the network
Why Is Bitcoin Attractive To Traders?
Bitcoin is the most attractive cryptocurrency to traders, in part because of the amount of liquidity it commands in the market. High levels of liquidity stem from the fact that it is the most popular cryptocurrency around the world, having been in the scene the longest.
Traders are also increasingly turning to Bitcoin for trading purposes given its decentralized valuations. What this means is that there is no single central bank to manipulate its valuation in the market, as is the case with fiat currencies. For that reason, Bitcoin rates are free from geopolitical influence.
Most brokers in the capital markets offer high leverage, thus making it possible for traders to deposit small amounts of money to be able to trade the cryptocurrency. With as little as $25 in some brokers, one can start trading the cryptocurrency using a 1:100 leverage.
Bitcoin is also a popular cryptocurrency among traders in part because of its ability to facilitate synonymous transactions. The fact that one does not need to reveal their identities while depositing or withdrawing continues to excite traders.
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