From the beginning of the 21st century, there was speculation about a future financial revolution, which would slowly pass fiat money in the background due to bad banking policies and repressions to foreign capital. It would not be until 2009 that the first hope for a fully decentralized economy would emerge, when a person (or group of people) under the pseudonym of Satoshi Nakamoto would publish the Bitcoin whitepaper, the first cryptocurrency known to the world and would be based on blockchain, an immutable and very difficult to copy technology that can act as an accounting book. Since then, the years have been dedicated to see the birth of other cryptocurrencies and the growth of a financial market that develops around them.
What exactly is Bitcoin? What does it have to do with Blockchain?
Bitcoin can be seen as the first decentralized digital asset, that is, it is not controlled by any government or company, being available to everyone. Blockchain, is the technology used by this cryptocurrency to be saved and negotiated and its purpose is to build a public, secure and infinite network of transactions. Transactions made from emissary to recipient do not need intermediaries and only one fee will be deducted for the miner and for the corresponding exchange (although not all). Mining is directly related to the production of the tokens and occupies a place in the equipment as “Antminers”, which solve complex algorithms to “manufacture” this cryptocurrency.
Blockchain works as a data structure that groups the information stored in blocks, forming a sequence of data ordered in a time line using cryptographic principles. This is the winning card of what we know as cryptocurrencies today, as it represents the most advanced and effective technology so far for optimal data storage. Today, the largest companies in the world are in the mass adoption of Blockchain, with the interest of providing effective solutions to their systems.
About Bitcoin Price…
Bitcoin’s price is something that never stops, proof of this is that their market is negotiated 24 hours a day, 365 days a year. Having this feature has a huge community that seeks to multiply its capital with the value of tokens and although the BTC was created primarily to be a payment method, it can be a tool to generate income from the financial market of cryptocurrencies. It should be noted that unlike the stablecoins, Bitcoin is highly volatile and its price can vary greatly in a matter of minutes.
Bitcoin can go up and down for various reasons, but mainly for positive news around the cryptocurrency that involves the adoption of its use for new payment systems and/or for the entry of large sums of capital into the market. Both reasons may be related, but it does not mean that it always is. For example, in 2017 the first big bull market of Bitcoin took place, in which the price reached up to USD 21,000 after a series of investments by new companies and investors, accompanied by a panic to buy before it continued to rise, which was generated from the same price rise and new adoptions that occurred then.
This year we have also experienced an upward trend in the cryptocurrency market, and despite the fact that in Google there are fewer searches for the digital asset, the voluminous investments keep the price rising. The fall in value can be related to the abrupt sale of many tokens.
How to safely store my Bitcoins?
As with fiat money, there is a great ambition for the possession of these tokens, since they are limited. This feature was described in detail in the Bitcoin Whitepaper, explaining in this way that it has a limited number of 21,000,000 BTC, of which only 3 million are missing because they are mined. This limited number of tokens means that not even all the millionaires in the world have a place to own 1 BTC each, although the distribution, due to differences in purchasing power, is very unequal.
Save them on the wallet of a responsible platform
A Bitcoin wallet is an exchange or website where you will deposit your tokens. These platforms provide their users with different BTC addresses (combinations of letters and numbers that you will use to receive or send deposits) and QR codes that can be scanned for a faster transaction.
It is very important to choose a respectable site recognized by the community, which can offer you a good service in terms of security and comfortable manageability within the platform. The 2FA factor is a must for every cryptocurrency holder since it allows you to establish an identity verification process through codes that are sent to your phone number and email when you try to log in, in order to confirm that it is you who is entering.
Hardware wallets: Ledger and Trezor
They are the two hardware type purses for more secure cryptocurrencies, they are not vulnerable to specter attacks, hence the funds are offline. It is necessary to remember again and again the danger that your digital assets (bitcoins or other cryptocurrencies) run both in the computer, always online (connected to the Internet) and in the digital brokers or Exchanges that keep them in the cloud and as we see constantly being attacked and looted by hackers, the new treasure hunts 2.0.
These devices are very similar to a pen-drive, but they work with blockchain technology and are certainly more expensive. Hardware wallets definitely represent the safest way to store your BTC in terms of hacking, although if you lose a Ledger, you will also lose access to your capital in cryptocurrencies, which leads to an effort to keep it in a place that you are familiar with. and you can only access it, the closest thing to a safe.
By understanding how to successfully keep your tokens safe and how to make transactions, you will be ready to move into the crypto space and become part of the community, which will allow you to learn about many other areas and produce income in these currencies in different ways.