People who are interested in the digital currency Bitcoin often wonder how to take the first steps in the world of cryptocurrencies.
Do they need any specialist equipment or expert knowledge in the field of information technology or cryptography? The truth is that when you start your adventure with Bitcoin you do not need any special skills or even specialist equipment. Only equipment with internet access and a person with basic computer literacy is necessary.
Cryptocurrencies are traded mainly on the Bitcoin exchange. There is a vast array of exchanges and the most popular are e.g. BitStamp or Bisq. Virtually in every country, also in Poland, there is an exchange that allows you to make transactions in bitcoins. Of course, the cryptocurrency exchange is not the only place where you can buy them. You can also buy bitcoins face-to-face, i.e. directly from a counterparty. You can find hundreds of ads on thematic forums and also post your own ads.
As with traditional e-banking accounts, internet currency Bitcoin must be held in a dedicated wallet. The wallet is selected according to the investor’s individual preferences. As bitcoins stored on an exchange are exposed to frequent hacker attacks, it is advisable to have a bitcoin wallet. The cryptocurrency wallet is properly secured, which significantly reduces the risk of losing the purchased goods by the user.
Once the user has purchased a certain amount of cryptocurrencies and credited their bitcoin wallet, the user can then decide what they want to do with them. Bitcoin allows you to make payments all over the world and they are recorded immediately on the declared account. As a result, users of cryptocurrency do not have to wait for the transfer to be posted, which in the case of international transfers takes several and sometimes even a dozen or so days.
Bitcoin is used, among other applications, as an international currency of the Internet. This cryptocurrency can be also considered a kind of alternative investment. Accordingly, if the funds grow in value in the future they generate profit.
Cryptocurrencies were created, inter alia, out of mistrust of the traditional banking system
On the majority of exchanges, bitcoins are traded without any financial leverage. This means that the investor must cover the entire value of the transaction when they decide to buy or sell cryptocurrency. High volatility of Bitcoin and the availability of cryptocurrencies provided by forex brokers (more info) allows the trader to speculate whether in the future the price will rise or fall and position themselves accordingly. The availability of financial leverage makes it possible to place orders exceeding the available funds which directly contributes to above-average results in case of an accurate forecast.
Cryptocurrencies, and above all Bitcoin, arouse mixed feelings among market participants. Some see it as a financial revolution and an opportunity to make a fortune on a new instrument, while others believe it is a speculative bubble that will eventually burst and lead to a complete market slump. Regardless of which side the trader is on, the possibility of taking long and short positions on the main cryptocurrencies allows them to earn money under any of the scenarios.