Forex trading is a currency trading – you exchange one currency for another, for example, USD for GBP. After 2000 new currencies were developed, cryptocurrencies like Bitcoin. Now you can easily exchange USD for Bitcoin on the Forex market. Would you like to know more?
Bitcoin was actually the first cryptocurrency, created in 2009 by Satoshi Nakamoto. This name is alias only, the real name of the author remains unknown. The main difference between ‘casual’ currency and cryptocurrency is that cryptocurrency is decentralized. That means there is no one, no bank, behind the transactions. Transactions are secured and verified by cryptography.
Trading currency vs cryptocurrency
As mentioned above, what makes the most difference to cryptocurrencies, is its decentralization. What does it mean related to trading? In Forex trading this is a major advantage compared to other currencies. Bitcoin cannot be influenced by any economic or political issues.
Trading is relatively safe. No need to tell anyone your bank account number or credit card details when you want to make a withdrawal or deposit money.
Bitcoin transactions are saved digitally on public networks, hence no transaction fees from clearing agencies or banks.
Keeping financial assets in Bitcoin
Some companies are offering their employees portion of their salary in Bitcoin. This might be a tricky business depending on the actual value of Bitcoin. You might end up with a good profit while selling at the right time or you might lose your investment if the value goes down. Bitcoin is prone to volatility so you have to keep an eye on its value.
You can buy Bitcoin or you can mine it. What’s the difference and what does it mean? For any transaction with Bitcoin, you first need to get a Bitcoin wallet, which you can imagine as a type of bank account. You can buy Bitcoin on exchange markets or from direct sellers. Mining bitcoins means simply the process of verifying Bitcoin transactions to keep them secure. Someone has to do the verification and then is rewarded for it. For mining you also need a wallet and special mining software, more information on this is available online.
Bitcoin was the first cryptocurrency, now there are 1375 to date including Litecoin, Ethereum and Dash.