Profitable Cryptocurrency Tradingby Paul Wright Tax Accountant Toronto - A Simple Checklist for Ch
Today we are aware of the fact that the Internet has become a 'world for itself'. Because of that, in 2008, there was no strange occurrence of the first decentralized digital currency. One of the most famous cryptocurrencies, Bitcoin, was created on October 31, 2008. Unlike countries such as Bangladesh, Bolivia and Ecuador, where Bitcoin is banned as a currency, in many countries, including the United States, Canada,Japan, the United Kingdom and Germany, Bitcoin is legally and officially accepted.
For its production, software is required which assigns Bitcoin as a reward to those users who offer their computers participating in the process of verifying and recording Bitcoin transactions within a blockchain. A "blockchain" is a kind of online register which allows to monitor a Bitcoin. A process called "mining" is accomplished every time a computer has solved very complicated mathematical operations, to be precise when computer has solved algorithms. In short, the Bitcoin production process is called mining, and successful miners are rewarded with commissions and newly created Bitcoins. Big oscillations in the value of Bitcoin are not uncommon because it is not controlled by any central bank that could manipulate its value, as is the case with national currencies, but this does not represent a big problem in the financial world.
In today's "world of Internet", we can not deny the power in crypto-currencies, especially the power of Bitcoin. It became crucial in google exchanges and internet trading. Currently, more than 2 million people over the world are using the digital currency. If you are still skeptical of the use of this "digital gold", as many call it, get to know its advantages that stand out in world-wide economy:
1. How Bitcoin became serious as a financial instrument was revealed recently when the most famous stock market for crypto-currencies in the United States introduced a new Bitcoin trading service. One of the main benefits of a Bitcoin and its trading service is an offer of the option of "short trading" or a way to get the value of the currency due to and from falling. It's generally intended for investors who are usually hedge funds, wealthy individuals or private offices. In the meantime, many countries literally fight for their right to have Bitcoins in use. Their main goal is to obtain the Bitcoin as a legal way of payment, which may cause a positive impact in many different areas.
2. The great attraction of this crypto-currency is that Bitcoin is an anonymous payment system, but your transactions are visible in the system and can be linked only to your personal address that does not contain the identity of people in the real world. Unlike conventional banking that keeps transactions private, in the Bitcoin system addresses are private, but transactions are public.
3. There is no way for governments, banks, or other financial intermediaries to mix, tax, monitor payments, terminate your user transactions, or even freeze your Bitcoin account. Therefore, digital currency users have a higher degree of freedom than with national currencies. With Bitcoins, you have a "bank in your pocket" through a smartphone. This bank is open 24/7 and you never need to seek permission to conduct a transaction of any kind. It also makes it easy to transfer money to any end of the world, because you just need access to the Internet.
4. One of the biggest problems with currencies around the world is inflation. Over time, most of the monetary currencies lost their true value mainly due to the government's decision to print more money. For example, at one point the value of two dollars becomes equal to one year ago, and therefore there is a rise in the price of products and services. Bitcoin therefore set the maximum number of coins - 21 million (reaching this number is expected only in 2140). This means that after that, the number of Bitcoins will not grow, so the emergence of inflation is impossible.
5. When you pay a check from one bank to another, the transfer can take several days. Bitcoin transactions are much faster. Transactions may be instant if no transaction confirmation is required, or it may take about 10 minutes if the merchant nevertheless requires confirmation. When transferring bitcoin, fees are extremely low or nonexistent with conventional cash flow methods.
6. When you shop online, online forms require you to enter various secret information (credit card number, expiration date ...) into the web form. Bitcoin transactions, however, do not require you to reveal any secret information. Instead, they use two things: public key and private key. Anyone can see your public key (which is actually your Bitcoin address), but the private key is secret. When you send a Bitcoin, the transaction combines public and private keys together, creating a certificate that proves where the transaction comes from. Until you reveal your private key to anyone, your Bitcoin account is safe.
7. The popularity of this digital currency is also evident in the number of locations in the world that allow bitcoins to pay for their products and services. The multiple utility of the Bitcoin helps anyone present on the Internet to become part of this story. By June this year in the world, this type of service has enabled as many as 6072 locations you can find on https:/Icoinmap.org or on http:/Iusebitcoins.info All you have to do is to follow 4 simple steps: find the information about Bitcoin, make a Virtual Wallet, Mine and Spent. If you've done the first part, you know the purpose of Bitcoins, so you simply pass to the next step — you have to download a virtual wallet. It will be asked form you to link to the official website (www.bitcoin.org ) and to choose one of the offered wallets. It exists 3 types of wallets. Once you've installed the application, you're ready to go and get the Bitcoins and of course, to spend them. You can get it by buying "real" money and place it in your virtual wallet, the other way is to mine.
The Bitcoin changed the concept of digital trading on foreign market. With the developing of Bitcoin, appeared automated trading platforms. One of the most successful is Coin-Banks who has developed their own technology which uses high frequency trading. This allows to analyze and observe every single transaction.
To find out more about Coin-Banks and how to trade bitcoins visit https:/coin-banks.com!
Created on Dec 31st 1969 19:00. Viewed 0 times.
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