What is bitcoin and how does it work??
Its real name is Bitcoin with the acronym BTC is a digital currency or also called cryptocurrency, but in what lies all its potential is in its technology called blockchain. It is an unforgeable technology and similar to a large accounting book, public and distributed, which reflects the history of all transactions.
A bit of information about Bitcoin
Bitcoin is safe and characterized by being decentralized, that means, it is not backed by any government or central bank. It uses a POW system (miners) to prevent double spending (that the same bitcoin is used several times) and reach consensus among all the nodes that make up the network exchanging information. The transactions do not need intermediaries been P2P so the cost in commissions is minimal plus you can send anywhere in the world bitcoin in a matter of seconds or minutes. For example you can send money in bitcoins to a friend from another continent in a matter of minutes regardless of the amount with a minimum fee price and without charging a thousand commissions and without the long wait of the traditional system.
The way to send Bitcoin is very simple, basically it’s like sending an email, you only need the address (public key) of the person that you want to send the coins, and from your own wallet you do the transfer, easy, fast and cheap, this is bitcoin.
Even if you scare of its price it is not necessary to have 1 whole bitcoin, because it can be divided into smaller parts with lower values for example you can have $1 that with the price of bitcoin today would be 0.00016BTC so you do not have to be scared of the price, it would be like being scared by the price of 1kg of gold, being able to buy 1g.
A bitcoin can be divided up to its smallest unit that would be 0.00000001BTC that in honor of its creator Satoshi Nakamoto is called that figure satoshi, being in this case 1 satoshi and in the previous case of 1 $ would be 1600 satoshis. Bitcoin although it’s safe, having no entity that will regulate or help you if you lose your wallet or private key, from Bitcoin StarterPack we strongly recommend that you read the section of Security. Take care of your money!
Why is the price of bitcoin in dollars and euros so high?
Like almost everyone who comes to the world of bitcoin, the first thing he thinks is how can or why 1 bitcoin is worth so much money? For this question the answer is simple, just the supply and demand and a fixed supply of bitcoins.
At the current price one bit coin is so expensive, but can be much higher, as it can be worth much less, it is simply. There is a maximum number of supply that is 21 million BTC, so the more people who want it, the more it will be worth.
By having a fixed maximum of coins and there will be no more, large investors are taking positions placing buy orders when they consider that the price is low enough to take advantage of a rise and make money with it. It may be weird for people who have not invested yet but there is a very common phrase in terms of price and that is that the price of bitcoin today, will be the sales of tomorrow, so if you look at the chart in coinmarketcap, when an asset is find in an uptrend what seems expensive today may be cheap at a time to use that price as a support to keep rising. But tell it to those who $ 1000 seemed expensive and did not buy and when I get to $ 20,000 they wanted to cry. So if you’re ready and you’re already decided when to buy or invest in bitcoin, in the section Where to buy? We explain how and where, so you can do it easily, safely and in the best exchanges.
Let’s start the house by the roof, mining bitcoin you get bitcoin for free, yes my friend, free bitcoin for everyone! But now comes the reality, for your understanding it would be that you use your computational power to perform certain necessary operations in the blockchain to validate the transactions within the block chain. Now you’re thinking, do not come with technicalities I want to start mining my bitcoins for free, because the price of the BTC is going up.
So I’ll tell you even easier, it’s leaving 24/7 your GPU / graphic card or antminer with a program that does things alone and with that you earn bitcoins for free slowly.
I’m going to explain what the miner does with a very simple example to understand:
Imagine that the blockchain is a train and each block is a wagon that is closed and that is full of documents. You as a miner, you are a notary and in front of each wagon there is a mountain of keys in which only one is the one that opens it. Then using your computational power, you and other miners / notaries are looking like crazy the key that opens it. When you find it, open the wagon, certify and validate that all documents / transactions are OK and for that task BTC gives to you all commissions generated.
To do this you can do it individually or in a bitcoin pool regardless if you do it with your computer or with a more specialized equipment with antminer or even a rig with several GPUs. For more specific information, I recommend you check the mining shop section for example in GPU / graphics cards where you will find information of each component
Bitcoin is not the only cryptocurrency
To begin with, we must clarify that bitcoin is a cryptocurrency and it is not the only one. Surely you’ll be thinking, are there more cryptocurrencies? Well, here we tell you.
Using the same blockchain technology or its inspiration, we have different types of cryptocurrencies or altcoin that together, if we look at the current global crypto market cap, represent approximately 50% of the total capital in cryptocurrencies. The most popular cryptos currently by investors that is reflected in the large capital invested in them are those that are in the Top 15 in coinmarketcap being: Bitcoin (obviously), Ethereum ETH, Ripple XRP, Bitcoin cash BCH, EOS, Stellar XLM, Litecoin LTC, Cardano ADA, Monero XMR, NEO, DASH, IOTA.
Where can I see the current quote price of bitcoin?
In order to be able to update at real time price of the cryptocurrency market, we have two platforms in which we can see all the information about the price of the quote price with the most common comparisons against Dollar USD, Euro EUR, Bitcoin BTC, Ethereum ETH or Neo.
Platform in which we can see the graphs of how it trades against the selected pair in real time with different time frames and see the historical movement of the currency as it is traditionally done in the stock and in that platform we can also see shares of the traditional economy such as stocks, futures, index, forex and cfd.
Here we have all the information related to cryptocurrencies, ordered mainly by the market cap but you can change it at your discretion. This page offers a lot of information and when you select a currency it opens a tab with all the detailed information of the currency such as official web page, social networks, reddit, graphic and historical data, and in which exchanges you can find it
What are cryptocoins?
Let’s start with defining what really a cryptocurrency is because there is a lot of mess with this. Stay with this concept that way you will understand everything much better “every cryptocurrency is a company and do not tell you more nonsense“. When we speak of cryptocurrency we include all, including bitcoin but the others are called altcoins which is an abbreviation of ALTernative coins although this term is not used so much and they commonly refer to them as crypto, cryptos, crypto coin, cryptocurrency. Having said that we go to the mess that until now us only talked about bitcoin, and the cryptocurrency in global are already around 2000 or more.
With no confusions or trickery
The subject of the cryptos is quite confusing with a lot of information and many different points of view but here we try to always make things easy for you and with examples so you can understand it better. When you buy a cryptocurrency today is 100% speculative, you are not buying or shares of the company or they will give you dividends or anything, therefore when choosing a currency we will look at the project and the company to know if what they are developing is something of quality (because there is none that is currently 100% operative and used by the large masses) so if it is a young company in the long run it will increase in value and we should go up with it by having coins that they will be used within their service.
Tokens, what are they?
That said, the way to buy these coins and invest in that project/currency is buying their coins called tokens, which is really nothing more than when for example you go to one of those big music festival and instead of buying things with your money inside the enclosure, you have to buy some coins/tokens at the box office that are the only ones that you can pay for your drinks inside the festival. Well this is exactly the same, but in this case it is with projects in the form of crypto currency.
As you see after this explanation you will have realized that these tokens have to have a use in real life, so the company has to have a reason to have to use this system of tokens, because otherwise you are buying pieces of paper that have not use and are useless.
Facing the long-term investor what they do is look for projects in which their tokenization has a meaning and use in real life so only with that you can easily avoid projects that have no future. For example a good use of tokens would be if it is a project that includes a continent or worldwide, in which case the token serves as an intermediary of different currencies of each country for the use of the service at the same time that you eliminate high commissions and you reduce the waiting time of transactions to seconds or minutes.
How to filter currencies in a simple way
When you are choosing which companies to invest in the long term, you have to ask yourself some questions to start filtering the great, normal or bad projects that are called by the community a shitcoin. Here we leave a few questions to ask and if at the time of do them you squeak the answer or not just convince you when you are getting information about the project, maybe the best option is to discard it and not waste your time:
- What does this project do?
- What are the tokens used for?
- What change does it represent for the company sector that is made, using blockchain and not the technology that is currently used?
- It is necessary that tokens are used or the same could be done simply by paying as a normal service?
- This project which problem will solve? What does it contribute or what does it innovate to be better than what is current?
Without reaching a more extensive analysis, if any of these questions does not convince you, look a little further in case you have not understood something about the project, but if you see some gaps or do not understand the vision of its creators, it is better that you go to other
The best 4 exchanges where to buy cryptocurrencies
Now that you have the necessary information about cryptocurrencies, we present the four best exchanges that are currently on the market considering their reputation, history, volume and above all security. It may take a few days for you to verify, it will depend on the number of people who are doing it as well and sometimes they even close new records temporarily due to the influx of new accounts so even if you have not yet decided to buy, we recommend that you do the accounts and check them for when you are sure to invest, you can do it quickly without waiting. Click on the photo to go directly to the exchange and register today!