What is Bitcoin?
Bitcoin (trading symbol: BTC) is the first encrypted and decentralized digital currency transferred directly between end users (peer to peer). Bitcoin was created by Satoshi Nakamoto (it is still disputed whether the name this is a a real person or an organisation of individuals) on January 3rd 2009.
Why is Bitcoin Price so volatile?
There are 2 main reasons behind the fast rise of the price of BTC. The first is related to the old school correlation between demand and supply: the availability of BTC is in fact limited, whereas its demand has been growing exponentially in the past few months, bringing its price to over $15,000 in December 2017. The second reason is related to the fact that, unlike traditional currencies, BTC is not a “fiat” currency, therefore not backed by precious metals like gold and silver.
How is Bitcoin created?
BTC, as well as other virtual coins, are created through a process called “Mining”; this process requires vast computer processing power, which is epecially true for Bitcoin, where the cost of mining is particularly high.
Is it possible to make money by trading bit coin?
In short, the answer is YES. However, a number of risk factors must be weighted in. Nowadays it is possible
to trade BTC against all major traditional currencies or in pair with other crypto currencies such as Ethereum
(BTC/ETH). However, especially if you are a novice trader, we recommend trading Bitcoin against
the EUR or the US Dollar (BTC/EUR or BTC/USD), as these are the most stable currencies and would
essentially give traders the opportunity to execute transitions between an highly volatile asset and a very stable currency.
Should I trade with a Regulated Broker?
We always recommend not to trade with a crypto exchange, and invest your money into a regulated broker.
This has proved to be the best way to consistently turn your trading into profits. When looking for a broker,
always try to find out for how long they have been operating as well as how reliable and trustworthy they are.