Top Terms about the Crypto World That You Must Know

Cryptocurrency or virtual currency is one of the most popular and hottest assets out there and almost every investor today is interested in making investments in this kind of asset. Even with the question of people, can Bitcoin make you lose money?

The world of cryptocurrencies is something that many investors do not have much idea about, but many would definitely want to know and get aware of. Basically, this is a very profitable asset if you have proper knowledge of it.  This article would talk about various important terminologies in regard to the Crypto arena. 

Bitcoins

Bitcoin (BTC) is the name of a digital currency or cryptocurrency which is developed and held in an electronic way and is controlled by no authority or individual.

This is a system of online payment which was invented in the year 2008 by Satoshi Nakamoto, an anonymous person. This individual published his invention that year and in 2009, the following year, he released it in an open-source form.

Bitcoin is now the most widely used cryptocurrency out there and is regarded as a payment method for trading deposits of clients by many trading platforms. Now, if you are considering the benefits of BTC being a currency, there are many! 

The transaction cost is the lowest among all online payment forms when someone uses BTC for payment. This is the exact reason why this cryptocurrency was developed in the first place – to reduce online transaction costs.

This is a peer-to-peer system, and it is possible to directly transact in Bitcoins with no need for users to have an intermediary in place. The system of Bitcoin transactions and the cryptocurrency itself is powered by a technology known as Blockchain.

Blockchain

Blockchain is a public distributed ledger. Each and every Bitcoin transaction is verified by network nodes and this ledger records these transactions.

Bitcoin is the unit of account of this specific ledger. It must be noted that this system operates with no single administrator or central repository. Primarily because of this reason US treasury considers this as a ‘decentralized virtual currency’. In the absence of any Central authority in the management of Bitcoin, there is no need to pay any service fee while transmitting or receiving payment. Bitcoin is also used and loved by traders out there because the cryptocurrency itself is tradable and additional Bitcoins can be earned that way.

When all the trading transactions are denoted in BTC, it is possible for a trader to protect himself from the fluctuation of prices of this digital currency and also earn more of it simultaneously through profits that are earned in BTC trading. Blockchain technology makes Bitcoin transactions extremely secure and even many of the traditional banks and financial institutions are considering opting for this type of technology, to ensure more safety for their own transactions.

Bitcoin wallets

A bitcoin wallet is actually a software program, where Bitcoins can be stored safely. This kind of a wallet is just like a virtual bank account, which lets an individual receive or send BTC and also save the cryptocurrency – in a secure fashion. Those who use BTC and have enough balance of this currency get a secret number or private key for each Bitcoin address that is saved in the BTC wallet. It is impossible to carry out a BTC transaction without this private key. A bitcoin wallet can be used from any location in the world.

The primary reason to obtain a BTC storage wallet is to get the opportunity to safely and easily use this cryptocurrency. This is a digital online wallet which can easily run on your computer devices as well as smartphone. If you are worried that your Bitcoins will be stolen by hackers, then keeping BTC stored in a bitcoin wallet is the best option because your bitcoins can be fully secure in that way.

Bitcoin trading platform

A bitcoin trading platform is a type of software application which can be used for trading in BTC. You can sell and purchase this digital currency at the right time, with the help of this kind of software program.

There are different types of Bitcoin trading software applications available out there. These kinds of platforms allow traders to have the benefit of the intermediary for the sellers and buyers. 

Last but not the least, XBT or BTC is the currency ticker that is used for Bitcoins.