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What Crypto Newbies Should Know About Bitcoin - Daily News Egypt

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What Crypto Newbies Should Know About Bitcoin

Bitcoin is one of the most famous cryptocurrencies right now, thanks to its innovative nature and the rewarding bull market phase.


Bitcoin is one of the most famous cryptocurrencies right now, thanks to its innovative nature and the rewarding bull market phase. So, based on the latest news, Bitcoin is still surging, which means there are plenty of new investors that are investing in BTC and further fuel the demand for Bitcoin.  

Of course, this is a decentralized cryptocurrency and is accessible to anyone, which means that a lot of crypto newbies want to get into Bitcoin trading. For that purpose, we cover essential facts about cryptocurrency that every crypto newbie should be familiar with.  

Bitcoin Background 

Bitcoin was developed in the midst of the financial crisis of 2008, and the reason Satoshi Nakamoto wanted to create this cryptocurrency is the option to provide a decentralized payment method to anyone that wants to transfer money securely and quickly over the Internet. 

Needless to say, Nakamoto successfully created a platform which is known as the blockchain network that provided the technology required for the adoption of this distributed cryptocurrency. What’s more, the blockchain network is a peer-to-peer-based network known as a distributed public, digital record of transactions, where the transactions are linked via cryptography to a single list or a chain; this is why it’s known as the blockchain.  

The design of the technology enables complete transparency, and every user is able to see the network’s data. Because the BTC transactions are linked together, no one can change one transaction without altering the previous records, which makes the blockchain system immutable, and extremely secure. Furthermore, the identity of each user is kept anonymous, and the processing time of each block of transactions is completed within 10 minutes. 

Automated Trading Sites 

In terms of investing in BTC, as the popularity of crypto is reaching its peak, there are many ways that you can follow to gain BTC or other cryptocurrencies. However, one of the main ways of getting BTC is through online trading. Luckily, there are plenty of exchange sites that you can review and check out their technology before signing on.  

For example, the real popularity of automated trading sites like immediateedge.biz is due to Artificial Intelligence technology that allows users to earn potentially huge returns while most of the work is conducted by the automated trading system. On Immediate Edge, specifically, you can earn up to $800 on a daily basis. Furthermore, automated trading systems are built to read large data sets and make decisions that allow you to make a profit off Bitcoins’ volatility.  

Bitcoin Mining  

Bitcoin mining is an essential part of the blockchain network, and it’s also a reliable option for obtaining BTC. However, it could take longer for miners to gain the rewards because there is heightened competition in the blockchain network, and there are protocols that make mining a more time-consuming and energy-consuming process. 

For instance, the Bitcoin halving protocol was created by Nakamoto to keep inflation under control as there isn’t a central institution to regulate the relationship of supply and demand. This protocol controls the supply of BTC by halving the quantity of created BTC and slowing down the rate at which new Bitcoins are created on the network. Essentially the reward is cut in half after 210,000 blocks are added to the network. 

After a halving, the price of BTC is following an upward trend due to the shift in the relationship between the supply and the demand. Moreover, another protocol modifies the difficulty of mining based on the total computing power of the blockchain network

In other words, when there is more computing power, the difficulty of mining increases. So, the option of getting BTC through mining is joining mining pools or farms, and it’s worth noting that the miners are the ones who vote on the proposals in the network.

Topics: Bitcoin

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https://dailyfeed.dailynewsegypt.com/2021/05/02/what-crypto-newbies-should-know-about-bitcoin/
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