Bitcoin terms that novice traders should be aware of
Thanks to the numerous advantages that it has, Bitcoin's popularity is rising with each passing day. The network of this crypto-currency continues to grow and some experts believe that there will come a point when a majority of the world's population will use Bitcoins as a payment method. In these times, governments around the world will have no other option but to make it a universal payment method.
Although we’ll have to wait and see what the future holds, we can be pleased with the progress that it has made so far. Recently, Bitcoin topped $30 000 in value and managed to write another historical moment in its chapters by breaking the 2017 record in value. The recent astronomical spike in value attracted many new traders to its network.
All of them come for the same reason. They want to make a profit with Bitcoin and become wealthy people overnight, but also use all of the advantages that Bitcoin has over FIAT currencies and other crypto-currencies. Since new traders are joining the network every day, we decided to lay out some of the basic Bitcoin terms that each of them should get familiar with. Let’s check them out.
Mining is the most popular way of earning Bitcoin. In this process, people solve complex puzzles and verify Bitcoin transactions. The reward for each recorded transaction is Bitcoins. While this may seem simple, it is far from it. It takes a lot of time and patience to record the transactions. As for the people who are mining it, they are called miners.
Trading sites are the platforms where traders sell their Bitcoins. These sites are more than just a marketplace. They are also powered by advanced AI systems, which help traders get intel on when is the best time to sell their assets.
One of the most reputable sites of this character is the-bitcoinpro.com. This platform has thousands of registered users from all around the world and uses the latest AI system which takes all the data on Bitcoin from the market, analyses it and makes an accurate prediction on what the future price of Bitcoin will be. This is extremely valuable information since it allows traders to maximise their profits. The aforementioned platform is among the best picks because it also has a very high daily profitability rate.
Using these services is vital as Bitcoin has a huge volatility rate and it is impossible for traders to determine what the future price of it will be.
Halving is an event that takes place approximately every four years. During this period the reward for mining Bitcoins is cut in half, and with it, Bitcoin's inflation and circulation are also lowered. This is a very important part of the mechanism that powers this crypto-currency since it controls its value and the overall circulation.
These events usually take place shortly before Bitcoin’s price spikes. That happened on the last two occasions when Bitcoin broke records in value. One halving event took place approximately one year before Bitcoin reached the 2017 record in value. The last halving event took place at the beginning of 2020 and later that year, Bitcoin broke the record in value from 2017.
When we were talking about trading sites, we briefly mentioned Bitcoin’s volatility rate. This rate is a measurement of how often is Bitcoin a subject to change. The change referred to is its price. Bitcoin’s volatility rate is extremely high, which means that its price fluctuates and goes up and down very often. In most cases, it changes daily.
One of the biggest advantages that Bitcoin has is the fact that it is not operated from one centre (banks and/or governments). It is a self-sustainable currency and it is highly decentralised. Being decentralised means that Bitcoin is not controlled by an individual or a group of people/institutions. All registered users on the network take part in the process of controlling it.
Lastly, we are going to mention another term that is associated with one very important benefit of using Bitcoin. Cryptology, also known as cryptography, is a method in which codes are used as a means of communication. Through this method, some vital information about the users remains hidden and out of harm’s way and people gain a certain level of online anonymity.
Be mindful, though, this doesn’t mean that you are completely off the grid, but it does mean that your online security is at a higher level.