Since its arrival 11 years ago, Bitcoin has been increasingly becoming more ubiquitous around the world. It’s been used as currency ever since that famous pizza transaction in 2010, its been used as a form of investment and store of value for many who believe in its potential growth, and it has also lead to a slew of associated financial assets such as Bitcoin Futures. However, if you are a new user, here are a few key points you should know before you invest in this cryptocurrency.
Perhaps one of the best benefits of Bitcoin is its accessibility. Unlike the very exclusive traditional financial market, you don’t need to be incredibly wealthy to benefit from this currency. In fact, as long as you have an internet connection, you can make your very own Bitcoin purchase with a few simple steps through a variety of exchanges. Once you have, trading Bitcoin Futures on Phemex is just as easy as well.
At the core of Bitcoin is the blockchain or its distributed ledger technology. This means that all transactions are kept on public ledgers for everyone to see. Any time someone transfers or moves Bitcoin around, this gets recorded and announced to everyone. In addition, this is done in a peer-to-peer manner, meaning that there are no third parties with hidden fees involved. You can instantly transfer Bitcoin to anyone in the world for a very small cost that helps cover the associated resources needed to make the transfer.
Although no personal private information is attached to any transaction that gets recorded on the blockchain, this does not mean that using Bitcoin is completely anonymous. It is important to note that although the Bitcoin architecture is not designed to reveal personal information, other actors such as governments and hackers may have tools that help them link IP addresses and other information to your personal identity. Luckily, there are additional measures you can take to increase your privacy.
As many of you know, bubbles occur when prices increase incredibly fast in an unsustainable way. Bitcoin has fallen victim to this effect in the past. Nevertheless, although many predicted the collapse of the cryptocurrency after such bubbles burst in the past, Bitcoin has proven to be resilient and recovered every time.
Similarly, it is no secret that Bitcoin is one of the most volatile assets we’ve seen. It’s price constantly swings and changes up and down incredibly fast. Within a single day, it is possible to see its value change by thousands of dollars. Of course, these changes are in response to multiple external factors such as supply and demand, market news, and global events. Predicting Bitcoin’s price movements with 100 % accuracy is not possible, but by carefully studying trends and learning about strategies, many have consistently benefited from trading Bitcoin Futures on derivative exchanges like Phemex.
We hope these major points will help you with your investment decisions. Continue to check our blog constantly for more useful articles and guides.
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