How to think in Bitcoin mode?
The main cryptocurrency in the market, Bitcoin became one of those concepts that everyone knows but few know how to explain in depth. For several years now, cryptocurrencies have changed the way electronic transactions are handled; In that context, Bitcoin is increasingly popular and its value is increasing. But little by little it became one of those concepts that everyone knows but few know how to explain in depth.
Bitcoin is a digital currency, which emerged after a financial crisis and is not managed by any bank or government. It allows people to avoid banks and traditional payment methods for products or services. An idea that caught the attention of many investors, mainly because its price increased in 2017.
The debate about whether Bitcoin will prosper as an investment in the future is in doubt and there are opinions divided among finance experts, however, Bitcoin is gaining great interest from entrepreneurs and investors, who are finding good uses for this new Type of digital currency.
How to understand the potential of Bitcoin?
Today, Bitcoin can be used to make purchases just like current money. For example, you can buy airline tickets, appliances, food or almost anything else you can think of. In addition, it is very useful to make transfers to anywhere in the world without having to make currency exchange or losing money in commissions for an intermediary. They can also be used as an investment.
Bitcoin solves the “problem of double spending” of electronic currencies (in which digital assets can be easily copied and reused) through an ingenious combination of cryptography and economic incentives. In traditional currencies, this function is fulfilled by banks, which allows them to control the entire banking system.
With Bitcoin, on the other hand, the integrity of the transactions is maintained through a distributed and open network; Nobody’s property and protected by advanced cryptography.
The essentials for a new Bitcoin user
As a new user, you can start with Bitcoin without understanding the technical details. Once you have a wallet installed on your computer or mobile device, your first Bitcoin address will be generated and you can create more when you need it. You can give your address to your friends to get paid or vice versa. In fact, it’s similar to how email works, except that Bitcoin addresses should only be used once.
So why is Bitcoin so important?
Bitcoin is a new technology that allows you to avoid going through an intermediary to validate a transaction. It generates value when performing validations, and this value is transformed into an element of exchange.
It is an invention, something new that did not exist as such before. And it is in full swing and evolution.
Bitcoin Take advantage of Bitcoin opportunities
Investing automatically in bitcoins or any other listed asset is now possible thanks to the digital transformation of the buying and selling processes, and the speed provided by the Internet. There are many other ways to take advantage of Bitcoin, but we highlight one in particular.
Trading is an increasingly popular option, as investors seek to eliminate the inefficiency found in manual operations. For example, trading robots use software to operate mechanically in the markets and automatically track, scan, analyze and operate in the markets based on coded algorithms.
Any strategy can be codified in a robot that will operate in the markets without human intervention. Robots can be applied in any market or type of asset, but lately, Bitcoin robots have extended, since they can take advantage of the opportunities of a highly volatile market such as cryptocurrencies.
The good thing about all this is that, automatic trading frees us from having to be in front of the screen all the time to choose the moments of entry and exit of the market.The robot’s behavior is adjusted according to our risk profile, the which is defined by us when we set the maximum amount of each operation, the level of maximum loss or the amount of operations to be performed each day.
Now you could open a demo account, without real money, to get an idea of how it works.But however, I always highlight something very important: Prudence, first try without investing, learn a little, and if you are convinced to move on . Remember that we are not playing in a casino. We are investing money that, surely, has cost us a lot to earn and we must be prudent.
Entering the world automatic trading with cryptocurrencies can seem very difficult, especially for beginners. Actually it is not so much if before investing money, we invest time reading useful information. We can do this on the Internet where we will find all kinds of resources, comments, examples and recommendations on how to become an efficient trader.
Demo accounts simulate real markets, but allow traders to use virtual money. If used properly, a demo account can help us improve the operations technique in a simulated environment that reflects the real market, without putting a single penny in danger. And so test and refine the old and new strategies before applying them to a situation with real money.
One last tip: Dedicate to this type of investment only the money that you can really afford to lose
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.