Bitcoin Trading-Expanding its Popularity Worldwide

With the development of technology one can find its impact on financial market also. In this era the trend of virtual currency is high due to various benefits and factors associated with the same. One may here a term bitcoin trading frequently in this era as it is one of the most popular digital currencies across the globe presently. It is easily transferable and accepted by many institutes in this era now. Bitcoin is the first digital currency that is created and stored electronically. It is based on new data sharing technology called blockchain and is a complex system. 

It was created in 2009 by an unknown person or group under the alias Satoshi Nakamoto. The idea was to create currency without any centralized regulation. No middlemen are required to validate and process transactions. As no banks are involved, Bitcoin can be easily transferred without any transaction fees. Bitcoins are not printed like Dollars, Euros etc. rather they are produced (or “mined”) by businesses and people. Bitcoin network is not controlled by any single person. According to Bitcoin protocol only 21 million Bitcoin can ever be mined. Further these Bitcoins can be divided into smaller parts. The smallest amount in which a Bitcoin can be divided is one hundred millionth of a Bitcoin, known by the name of “Satoshi”. The smaller currency is named after founder of crypto-currency. Bitcoin Trading is very popular as it involves digital payment and has great flexibility.

Unidentified (No Personal Information Required):

 As there is no need of personal information like real names, payment details or address, one can hold multiple Bitcoin addresses. Blockchain keeps the details of every transaction made on Bitcoin network. It does not reveal who owns these Bitcoins rather states how many Bitcoins are stored at Bitcoin addresses. 

No Central Exchange System: 

Unlike paper money there is no central authority that can change the monetary policy or the rate of impact. Bitcoin will continue to flow between devices and do not get affected if the part of the network goes down. Every computer that mines Bitcoins as well as process the transaction becomes a part of the Bitcoin network. Bitcoins are backed up by millions of computers that mine across the world; these computers are called “nodes”. The function of this computer network is much similar like Federal Reserves, Visa and MasterCard but definitely with some key differences. Bitcoin nodes are extended across the world and keep record of the transactions in a public list and this can be assessed by anyone over the world. 

Low Cost and fast Execution Time: 

Money in the form of Bitcoin can be transferred anywhere and can be settled in near to real time. During international money transfer a large fee is to be paid to the bank but the same is not in case of Bitcoin. If one uses the services of the broker, then they haveto pay transaction fee that is much smaller compared to bank. 

Popularity of Bitcoin:

Globally the reason why traders enjoy Bitcoin Trading is that Crypto-currency trading yield maximum return when it is unpredictable, due to many ups and downs. As Bitcoin is the first digital currency to be created, it is the capitalized and most traded Crypto-currency in the world. It is considered as the best payment option for money transfer, merchants and for the purpose of trading. It is the most popular financial trading instrument. Beside the fact that it has no association or link with the government or central banks it is the most respected and preferred trading practice.Bitcoins are easily accepted as a means of payment for various products and services. Just by adding the option “Bitcoin Accepted Here” many customers get attracted to pay through Bitcoins. An online business can easily accept Bitcoins in payments by just adding this as a payment option. 

Mining of Bitcoin: 

Bitcoin Mining is a process through which Bitcoins are released for trading into circulation. Through powerful computer hardware and software Bitcoins can be mined. Certain computer chips called Application-Specific Integrated Circuits (ASIC) and other more advanced processing units can give more rewards. These complex mining processors are known as “mining rings”.A maximum limit is set after which further no Bitcoin will be produced. Quantity and the rate at which Bitcoin will be produced is limited. It is a finite commodity and its demand definitely will inflate up its price.

Benefits of Bitcoin Trading:

One can easily get involved in Bitcoin trading if they possess good internet connection and have some disposable income. With Bitcoin trading global barriers in exchange has become a comprehensive space. Bitcoin has become an accessible asset as it is offered in low entry amount. With basic or no mining fees and no control of any central authority makes it the most independent trading. Unlike traditional currencies Bitcoin is not flooded by the market as there is a limit on the generation of new Bitcoins and their finite supply. The price of the Bitcoin totally depends upon on the laws of demand and supply. Unpredictability that Bitcoin experiences hadgainsits popularity that helps it making an attractive investment and trading opportunity. While trading bitcoin there are strong chances of making high profit margins. But one also needs to consider the risk associated with the same. 

Investing in Bitcoin:

Bitcoin is supported by many traders as they believe digital currency is the future of trading. Many believe that it facilitates at much faster pace with low fees system of payment for the transactions taking place across the globe. The main reason behind the growth and support of digital currencies like Bitcoin is that it acts as an alternative to traditional commodities like gold.

These virtual currencies were stated under taxable items and are stated under property. The profits or loss from these Bitcoins that are named as capital are considered as capital gains or losses. When Bitcoins are purchased or sold from another party or Bitcoins used to pay off goods or services,they are also taxable transactions.