For several years now, cryptocurrencies have changed the way electronic transactions are handled; In that context, Bitcoin is increasingly popular and its value is increasing. But little by little it became one of those concepts that everyone knows but few know how to explain in depth.
Bitcoin is a digital currency, which emerged after a financial crisis and is not managed by any bank or government. It allows people to avoid banks and traditional payment methods for products or services. An idea that caught the attention of many investors, mainly because its price increased in 2017.
The debate about whether Bitcoin will prosper as an investment in the future is in doubt and there are opinions divided among finance experts, however, Bitcoin is gaining great interest from entrepreneurs and investors, who are finding good uses for this new Type of digital currency.
How to understand the potential of Bitcoin?
Today, Bitcoin can be used to make purchases just like current money. For example, you can buy airline tickets, appliances, food or almost anything else you can think of.
In addition, it is very useful to make transfers to
anywhere in the world without having to make currency exchange or
losing money in commissions for an intermediary. They can also be used to
mode of investment
Bitcoin solves the “problem of double spending” of electronic currencies (in which digital assets can be easily copied and reused) through an ingenious combination of cryptography and economic incentives. In traditional currencies, this function is fulfilled by banks, which allows them to control the entire banking system.
With Bitcoin, on the other hand, the integrity of the transactions is maintained through a distributed and open network; Nobody’s property and protected by advanced cryptography.
The essentials for a new Bitcoin user
As a new user, you can start with Bitcoin without understanding the technical details. Once you have a wallet installed on your computer or mobile device, your first Bitcoin address will be generated and you can create more when you need it. You can give your address to your friends to get paid or vice versa. In fact, it’s similar to how email works, except that Bitcoin addresses should only be used once.
So why is Bitcoin so important?
Bitcoin is a new technology that allows you to avoid going through an intermediary to validate a transaction. It generates value when performing validations, and this value is transformed into an element of exchange.
It is an invention, something new that did not exist as such before. And it is in full swing and evolution.
Take advantage of Bitcoin opportunities
Investing automatically in bitcoins or any other listed asset is now possible thanks to the digital transformation of the buying and selling processes, and the speed provided by the Internet. There are many other ways to take advantage of Bitcoin, but we highlight one in particular.
Trading is an increasingly popular option, since
Investors seek to eliminate inefficiency found in operations
manuals. For example, the robots of
trading use software to operate mechanically in the markets and do
Track, scan, analyze and operate automatically in the markets
based on encoded algorithms.
Any strategy can be codified in a robot that will operate in the markets without human intervention. Robots can be applied in any market or type of asset, but lately, Bitcoin robots have extended, since they can take advantage of the opportunities of a highly volatile market such as cryptocurrencies.
The good thing about all this is that, automatic trading frees us
of having to be in front of the screen all the time to choose the
moments of entry and exit of the market.
The behavior of the robot is adjusted according to our risk profile, which is defined by us when we set the maximum amount of each operation, the maximum loss level or the amount of operations to be performed each day.
Now you could open a demo account without
real money, to get an idea of how it works.
But nevertheless, I always highlight something very important:
Prudence, first try without investing, learn a little, and if you are convinced
To continue. Remember that we are not playing in a casino. We’re
investing the money that, surely, has cost us enough to earn and we have to
Enter the world of automatic trading with cryptocurrencies
It may seem very difficult, especially for beginners. Not really
it is so much if before investing money, we invest time reading information
Useful. We can do this on the Internet where we will find all kinds of
resources, comments, examples and recommendations on how to become a trader
Demo accounts simulate real markets, but allow traders to use virtual money. If used properly, a demo account can help us improve the technique of operations in a simulated environment that reflects the real market, without putting a single penny in danger. And so test and refine the old and new strategies before applying them to a situation with real money.
One last tip: Dedicate to this type of investment only the money that you can really afford to lose.
Venezuelan, student of the last semester of Social Communication. Attracted by the new technologies and development that they offer to humanity.