Bitcoin

What is Bitcoin – the ultimate guide to the crypto currency

What is a Bitcoin and how can I take advantage of this new trend? We provide answers to the question “What is Bitcoin? And we also present interesting investment and investment opportunities. Traders will be surprised, because the crypto currency has much more to offer than perhaps thought. The crypto currency can be traded profitably on the market with some skill and even earned free of charge. How the Trader can proceed thereby and which further possibilities there are approximately around Bitcoin and the Krypto market, we examined more near.

  • Bitcoin was introduced in 2009
  • Bitcoin has a maximum supply of 21 million coins
  • Direct trading of Bitcoin requires Krypto Wallet
  • Traders can join Bitcoin Crypto Exchange or broker

What is Bitcoin – the history of crypto success

When the idea of a crypto-currency first sprouted in 2008, no one thought that only a few years later a revolution in the financial market and in the means of payment could take place. Bitcoin was officially introduced in 2009 and, in addition to the decentralized crypto currency, it was above all the interesting block chain technology that brought it to the fore. Many people did not even know that the block chain or tests for it existed years before by scientists, but these findings never reached the general public. Bitcoin triggered a hype that brought not only enormous profit opportunities, but also countless new Internet currencies. Meanwhile there are beside Bitcoin more than 3,000 of them, so that it is quite important to experience at all more over the origins of the nut/mother of all crypto currencies.

BITCOIN WHAT IS THAT – THE CRYPTO CURRENCY FROM TECHNICAL VIEW

Bitcoin is not only a crypto currency, but also the conceptual term for the block chain of the same name, the Community. What is a Bitcoin? Coins are virtual units that do not physically exist. Therefore they are not managed in a classical physical purse, but in a crypto wallet. Strictly speaking, the coins are a digital address that is used to map the Bitcoins. Bitcoin can be used as a means of payment, an object of exchange or for generating profits. The possibilities of the Bitcoin block chain are as diverse as the applications of the digital coin.

BITCOIN-BLOCKCHAIN REVOLUTIONIZES CROSS-SECTOR

Block chain technology has now found its way into many industries and companies, as it offers countless possibilities. With the help of the technical solutions, processes can be simplified and above all, costs can be made more efficient. Pharmaceutical companies, companies in the financial sector and many more take advantage of this. Meanwhile there is not only the Bitcoin Blockchain, but by the many new crypto currencies also interesting Blockchain modifications. These are often even more innovative and enable for example the use of smart contracts and other applications. However, the original Bitcoin Blockchain is unchangeable, which led to the fact that many Coins developed from Bitcoin. For example, due to the long transaction times, Bitcoin Gold was split off and created.

WHAT IS A BITCOIN WORTH?

Anyone who takes a closer look at Bitcoin will find that the coins can be traded on stock exchanges. The question arises, what is Bitcoin actually worth and how is this price determined? The crypto-market is not centrally regulated, so that supply and demand determine the pricing behavior and different prices are therefore called up at the crypto-markets. It may be that Bitcoin is worth less at stock exchange A than at stock exchange B. Users can make optimum use of these price differences with some skill, for example by buying cheaply and selling Bitcoin profitably.

WHAT IS A BITCOIN WORTH? – THE LEGENDARY DEVELOPMENT OF COINS TO DATE

Bitcoin has shown rapid price development since its inception. If the purchase price for the Coins with introduction still lay under 100 euro, Bitcoin experienced an all time high in December 2017 and noted with over 18.000 euro.

What is a Bitcoin worth compared with other crypto currencies?

The traders can trade Bitcoin at the crypto stock exchanges, but not only him, but meanwhile also countless other coins. The question arises as to whether Bitcoin is in any case the appropriate means for investment and trading or whether other Altcoins are not better suited. Bitcoin stands undisputedly at the top of the crypto ranking list and dominates with its market capitalization all other Internet currencies with over 60 percent. Thus it is clear that Bitcoin provides investors for particularly high interest, because who would not like to invest into the prominent crypto currency? However naturally still different Internet currencies can be interesting, because they show frequently similarly positive Potenzial, although they will hardly put such Kursrallyes, as for example Bitcoin.

BITCOIN AGAINST OTHER CRYPTO CURRENCIES EXCHANGE

At crypto exchanges it is possible to exchange Bitcoin for other coins, although not at all trading places. Traders can decide for themselves on the basis of the live charts whether the current price is worth it. In addition to direct exchanges in coins, Bitcoin can also be exchanged for other coins via detours. Although this is theoretically a good option, in practice it can cause additional fees and thus a loss of value. We therefore recommend exchanging Bitcoin directly for other coins to avoid the additional fees or to exchange the crypto currency directly for Fiat money.

Earn Bitcoin yourself: Is that possible?

Traders can buy Bitcoin with their own capital at crypto exchanges, for example, but they can also earn the coins themselves. Possibilities for this are offered for example in the form of mining or faucets. Let’s take a closer look at both options and present the advantages and disadvantages.

USE BITCOIN MINING

If the users decide to act as Bitcoin Miner, they first need a lot to do so:

  • Hardware
  • Software
  • Wallet
  • Stable Internet connection

Above all, the hardware for Bitcoin Mining should have good performance, which experience has shown that conventional PCs for home use cannot provide. For this reason, miners often have to invest in expensive hardware and therefore have to make advance investments in terms of costs. Added to this is the software, which is available free of charge. To be able to store the coins after the reward, the users need a wallet. There are also various options here: free of charge and with costs. A stable Internet connection is essential to ensure that the transactions can be permanently processed and the rewards are within reach. With these possible cost factors, the price of electricity is not to be sneezed at either. Users should therefore carry out a calculation before they become miners in order to better estimate the profits. Anyone using a mining calculator quickly learns when mining is actually profitable for them and when it is worthwhile to look for alternative sources of income.

USING FAUCETS FOR COINS

In addition to Bitcoin Mining, users can also use other options for obtaining coins. The Bitcoin Faucets are completely opposite to Mining, because they do not require a large amount of prior expenditure. Instead of requiring expensive hardware or having to pay a high electricity bill, users simply register with their public wallet address with the Faucets and can earn Bitcoins with just a few clicks. These websites or mobile applications often function as opinion barometers, as many companies have discovered them to have users answer questions. For example, the aim is to evaluate game applications or provide feedback on other content. These efforts are comparatively easy and still bring in coins as a reward. Compared to Bitcoin Mining, however, the amounts spent are significantly lower, so it can take a little longer for a larger number to be available in the wallet for profitable trading or for the payment of invoices.

BITCOIN WALLETS REQUIRED FOR FAUCETS AND MINING

With the Mining and the Faucets the users have the chance to earn free Coins. In order to manage these coins safely, users need a wallet. There are different Bitcoin Wallet types:

  • Desktop Wallet
  • Mobile Wallet
  • Hardware Wallet
  • Paper Wallet

The differences are mainly in the cost and security. In order to keep the cost of coins as low as possible, users should of course use a free wallet, although it is not always the right choice due to the level of security.

DIFFERENCES WITH WALLETS EXPLAINED

In order to enable users to manage their coins as securely as possible (even in the long term), we show the differences between wallets. Only if you choose wisely, you don’t need to be afraid of hack attacks and you always know your coins are well protected. Experience has shown that hardware or paper wallets have the highest level of security and are therefore particularly recommended for long-term storage. Especially with faucets, users often need longer to accumulate the smallest amounts of coins. Annoying if hackers access the wallet and steal the coins in the meantime, isn’t it? To avoid this, we recommend to use the Hardware or Paper Wallet, because due to the missing internet connection cyber criminals don’t stand a chance.

COSTS FOR COLD STORAGE

The costs of cold storage, hardware or paper wallets, are an important criterion for many users. While the Paper Wallet is free of charge, the Hardware Wallet requires a one-time investment at purchase. How high the price is exactly, the hardware offerers determine themselves. However, experience shows that the price is between 50 Euro and about 100 Euro.

DESKTOP AND MOBILE WALLET UNDER CRITICISM

The Hardware and Paper Wallet offers maximum protection, although not always free of charge. Alternatively, there is the Desktop and Mobile Wallet. They are part of hot storage and are connected to the Internet. Although users can access the wallets and manage the coins flexibly and on the move, traders have the same options if the protection is insufficient.

PROTECTION OF THE HOT STORAGE

For long-term secure storage of the coins it is recommended to switch to a hardware or paper wallet. However, wallet owners can also ensure greater security during hot storage themselves by activating 2-factor authentication as an additional protection mechanism, for example.

TIP: DO NOT USE PUBLIC NETWORKS

In practice, another tip for additional protection of online wallets has proven to be very useful. Many wallet owners use public networks to access their coins and thus save their own Internet resources. This is precisely where they create a further point of attack for hackers, because public networks in particular are clearly insufficiently secured or have no security at all. If users want to use an online wallet, it is therefore advisable to rely only on secure networks and also to regularly check the software on the PC or mobile device to ensure that it is up-to-date. In addition, a regular virus scan is also a good way of identifying malicious programs or applications on the end device and thus additionally securing the wallet.

USE FACE-ID FOR MOBILE WALLETS

It is also recommendable to use face recognition for the mobile wallet. The phone can only be unlocked with this setting if the wallet owner scans his face. This mechanism is significantly more secure than the classic PIN entry on a smartphone, which of course provides a higher sense of security for the mobile wallet.

Conclusion: What is a Bitcoin worth? – the crypto currency with many opportunities

The headline around Bitcoin frequently overturns itself, so that also investors and investors, who did not know the crypto currency perhaps yet at all, come into contact with it. One often reports of enormous course fluctuations or considerations of individual governments to forbid or limit Bitcoin. The question arises: What is wrong with Bitcoin? The crypto-currency heats up the minds again and again, positively and negatively. However a principle applies also with the crypto currency, as with many things: Nothing is eaten as hot as it is cooked. Who is concerned with Bitcoin and its Potenzial more near, fast determines that the crypto currency can be an extremely lucrative Investment. What is a Bitcoin value? Meanwhile Bitcoin costs contrary to its former high of over 18.000 euro per Coin clearly less, but nevertheless is to be seen clearly that the investors and investors with Bitcoin could earn at all. Whoever wants to exploit the potential, trades for example at a crypto stock exchange or a broker, whereby even with little equity capital and without much previous trading experience, successful trading can be possible with some skill and practice.

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