x
Black Bar Banner 1
x

NEW: About Me Look — turn on a full-width dark About Me from your profile Configuration (Profile Page Upgrade). The Academy, profile feeds and Media Feed now read like the News Feed. See Subscriptions »

New: AI Blog Autopilot — free for the next 30 days. Switch it on by November 15th »

NEW: Smart Mail is live — free for every member. Send broadcasts, build lists and run autoresponders. Open Smart Mail »

New training: The Campaign Map. Watch it now »

A+ A−
Ads by Markethive - View All
The Blog Feed
The Blog Feed
» Blog Feed
Write a New Blog Post
Search Blog Status
Most Viewed
Most Recent
Most Shared
Alphabetical
Markethive Blog (default)
My Blog Posts
Friends' Blogs
Blog Categories
All
Advertising
Blockchain & Cryptocurrency
Business Development
Diet & Weight Loss
Environmental
Health and Wellness
History and Culture
Home and Garden
Marketing
Mentoring & Training
Money & Finance
Other
Political
Prayer & Religion
Programming & Technical
Real Estate
Search Engine Optimization
Social Media
Spirituality
Sports & Recreation
Transport
Travel & Events
Website Design
Blogging Tools & Assets
My Blog Info
Members Subscribed to You
Blogs You Are Subscribed To
Website Widget
Wordpress Plugin
Subscribe for Greater Services
Subscribe to one of many subscriptions, each one includes the previous ones.. Unlock powerful tools, advance features, to build a powerful reach.

What is Bitcoin?

Posted by Corneliu Boghian on October 31, 2020 - 8:42pm


Bitcoin

Ce este  Bitcoin? Este un instrument financiar din ce în ce mai popular, dar nu toată lumea înțelege elementele de bază ale acestei criptomonede.

Acest articol va explica totul despre Bitcoin, inclusiv ce este Bitcoin și își propune să răspundă la întrebările Bitcoin ale începătorilor Bitcoin. Cum funcționează Bitcoin? Cum cumpăr Bitcoin? Bitcoin este un risc?

Acest articol va oferi, de asemenea, o prezentare generală a conceptelor avansate despre Bitcoin, cum ar fi plățile și transferurile efectuate prin blockchain Bitcoin. Într-un viitor articol despre Bitcoin vom analiza o diagramă Bitcoin și vom afla cum să cumpărăm și să vindem Bitcoin.

Să începem cu cea mai simplă întrebare:  Ce este Bitcoin?

 

Ce este Bitcoin?

Bitcoin is a digital currency, or "cryptocurrency", because it uses a special encryption technology to secure transactions within its infrastructure, which is, in fact, a distributed online database, also known as a "blockchain".

In case you haven't already, you can now trade Bitcoin (BTCUSD) on a risk - free demo account with Admiral Markets! Try it today!

What is the Abbreviation of Bitcoin

The abbreviation Bitcoin is simple: BTC. You can exchange / trade Bitcoin against the US dollar - BTC USD or against Euro - Bitcoin Euro.

Bitcoin can also be associated with other currencies. In this case, the name of the CFD contract could be, for example, Bitcoin vs. CFD US Dollar or BTCUSD.

How Bitcoin Works

Bitcoin offers the ability to make payments from one entity to another directly (in English: "peer to peer"), secure and cheap, without the need for a bank or a central payment processor.

System transactions take place directly between users' digital wallets and are verified using blockchain technology. The transactions bear a digital signature with unique private keys proving that they come from the wallet owner.

 Bitcoin - What Is Blockchain Technology                                                                                                                                                                                                                                                                                                               Blockchain technology is essentially a decentralized public registry of all Bitcoin transactions that have already been executed.                   A number of transactions form a unit of the database, called a "block", and each such block contains information about the previous block and, at the same time, each transaction keeps information about the transaction that took place previously. In this way, the block allows a complete transparency of payments.The infrastructure available for the virtual currency Bitcoin has introduced a revolutionary method of storing financial data accessible to everyone, in a completely transparent way, developed in collaboration with an "open source" code that does not belong to any person or entity. , blockchain maintenance is done using the collective power of millions of computers that check transactions and add them to this chain of "blocks .                                                                                                      Collectively verified transactions cannot be modified or deleted, so all Bitcoin payments are final and beyond doubt.

 

What is Bitcoin Mining - Bitcoin Mining

Once a new block is created in the blockchain, the creator is rewarded with 12.5 Bitcoin, which are created about once every 10 minutes. It is a reward for the so-called "mining", or "mining" process, that process that consumes impressive amounts of electricity and computing power to maintain the Bitcoin network.

The Bitcoin mining process involves a lot of specialized people and companies, located all over the world, and creates the core value of Bitcoin. The system automatically generates new Bitcoin cryptocurrencies and automatically adjusts the speed of this process, so there is no way to "fool" the rules and earn Bitcoin faster than a Bitcoin evolution dissociated from the increase in investment in that system, in the equipment Bitcoin mining and higher costs with the electricity bill.

The reward obtained for each block will be reduced by half until 2020, and this division will continue once every 4 years, until the generation of 21 million Bitcoin. This will mean that Bitcoin will be able to have a fundamental potential to increase its price.

The image below shows that there are more than 16 million (76% of the total) Bitcoin in circulation in 2017. The image also indicates a rapid increase in their offer, between the start date (2009) and 2013, before to slow down, which means that demand is already growing and will continue to move in the same direction - of course, if no competing cryptocurrency, such as Litecoin, pulls Bitcoin out of the scene.

The Amount Of Bitcoin In Circulation

bitcoin volume

Source: Wikipedia

Who Invented Bitcoin and When Did Bitcoin Appear?

In the investment environment, Bitcoin is considered to have been created by Satoshi Nakamoto, who made his invention public on October 31, 2008 in a list of cryptographic correspondences published in a research paper entitled “Bitcoin: an electronic payment system from equal to equal ".

More interesting is the fact that his name is probably a nickname used by an anonymous person or several researchers who designed Bitcoin. In 2016, Australian entrepreneur Craig Wright declared himself "Mr. Bitcoin", a claim that was widely accepted by prominent members of the Bitcoin community.

When Bitcoin Cryptocurrency Was Created - Bitcoin History

Bitcoin's financial history dates back to 2010, on May 22, when someone first bought a pizza and paid in Bitcoin. If you haven't heard of this major event, don't worry, you're not the only one ...

Pizza was not the most important part of the transaction - the crypto currency was. The consumption cost 10,000 Bitcoin, and it was the first time this virtual currency was used to buy something in the real world. Today, Bitcoin fans celebrate Bitcoin Pizza Day every year.

Things have come a long way since then. Both the use and the value of Bitcoin have increased. Such a dinner, which at the time cost 10,000 Bitcoin, today would cost about $ 20 million!

In March 2017, the price of a Bitcoin exceeded for the first time the price of an ounce of gold. Since then it has continued to rise and is still well above the price of an ounce of gold.

 

What Can You Buy With Bitcoin?

There are many things you can buy using Bitcoin - much more than a pizza! Today there are many more locations that accept Bitcoin as a means of payment. According to www.coindesk.com , since 2015, the number of traders who accept Bitcoin as a means of payment has exploded. Many of them are online trading sites, but a growing number of street shops now support BTC. The list is constantly growing, and you can spend the Bitcoin you own, literally, almost anywhere (depending on where you are), like this:

  • For shopping in some stores;
  • For the purchase of video games with Bitcoin;
  • You can make gift cards denominated in BTC;
  • Travel paid for with Bitcoin;
  • Buying certain foods with Bitcoin;
  • For donations in Bitcoin;
  • For online purchases in Bitcoin and even for ...
  • Financial investments in Bitcoin.

Most Bitcoin payment processors will also provide a QR code at checkout, which represents a Bitcoin address and payment amount.

QR codes are very convenient, they make payments made through the Bitcoin application on the smart phone you have very easy to make. All you have to do is scan the QR code so that the application can automatically fill in the recipient's Bitcoin address, as well as the amount requested for payment. Once you have given your consent for the transaction, the payment will be completed.

 

Is Bitcoin USD Trading Traceable?

Bitcoin is a completely transparent currency. All Bitcoin transactions are public, traceable and permanently stored within the Bitcoin network. Bitcoin addresses are the only information used to define where those Bitcoin cryptocurrencies are assigned and where they are sent. These addresses are created specifically by each user's virtual wallets.

Given that users generally need to reveal their identities in order to receive services or goods, Bitcoin addresses cannot remain completely anonymous. The Bitcoin network is a peer-to-peer network (from one entity to another, without intermediaries) and it is possible to connect it to the user's IP addresses.

Countries That Recognize Bitcoin As A Currency

The legal status of Bitcoin varies from country to country, but the list of countries that accept BTC has experienced a constant phenomenon of expansion.

Bitcoin operates independently of any central bank, unlike other well-known currencies, such as the US dollar or the Euro. Also, the Bitcoin network does not have any other central point or a single administrator, which turns that cryptocurrency into a decentralized digital currency.

The fundamental value of Bitcoin is generated by the Bitcoin mining phenomenon and is closely linked to the cost of electricity and hardware involved, while the rest of its value is determined by the limited quantity, slow generation process and growing demand for Bitcoin.

Bitcoin is spreading around the world as a valuable payment method for which you can buy various goods and services, which has the gift of further generating an increase in demand for Bitcoin.

Is Bitcoin Legal?

Regulations differ from country to country. At a time when Japan is officially recognizing Bitcoin as a currency, there is still no specific legislation in this country regarding this cryptocurrency. But you can expect national financial regulators to become more and more interested in BTC, as well as other virtual currencies, as blockchain technologies spread rapidly and the scale of the cryptocurrency climate increases.

 

Bitcoin Trading | Bitcoin trading

Bitcoin is a volatile asset, with daily price fluctuations in which often situations where the dynamics exceed the level of 10% are quite common, making both investments and trading Bitcoin risky. Of course, there can be no high return option without high risks and, in addition, you should not use the money you need for daily living to dedicate yourself to a Bitcoin trading approach.

Bitcoin evolution chart in recent years:

bitcoin chart

Source: Coinmarketcap.com Please note that past performance is not a reliable indicator of future results.

As we can see in the chart above, during 2017 the cryptocurrency market grew by 2,000%. However, in 2018, this market transformed and collapsed causing a loss in terms of capitalization of about 700 billion dollars. A craze that could have been exploited by investing in Bitcoin through CFDs, tools that allow short-term trading and take advantage of the downward trend.

Grafic săptămânal BTCUSDSource: Admiral Markets Metatrader 5 . BTCUSD weekly chart from July 2016 to September 2019. Edited: September 25, 2019. Note that past performance is not a reliable indicator of future results.

The causes of the collapse of the Bitcoin cryptocurrency in 2018 were:

  • Initial Coin Offer (ICO)
  • Money laundering
  • Tax evasion
  • Identity theft
  • Market changes
  • Low or no regulation in some cases
  • Excessive speculation

As can be seen in the chart above, BTC started trading below the $ 9,000 threshold again.

Admiral Markets offers the possibility to trade Bitcoin CFDs, which allows you to benefit from the lower prices of Bitcoin and is completely legal for all countries outside the USA.

Bitcoin CFD trading

Bitcoin CFD trading is not much different from trading any other currency pair, commodity or CFD that has a strong trend.

The beauty of trading lies in its diversity and, by studying the dynamics of prices, traders should be able to make profits that make them independent and financially stable. Bitcoin CFD traders should focus on:

  • Trend trading
  • Proper money management
  • Dynamics of important sessions: London, New York and Tokyo.

Proper money management is extremely important in trading and, if applied correctly in a strong trend environment should, in theory, lead to a profitable investment.

Traders should focus mainly on the main trading sessions, as the main financial centers offer the highest volatility in the BTCUSD. Fortunately, our MetaTrader 4 platform provides the tool during important 24/7 market sessions.

It should also be mentioned that you should only trade CFDs on Bitcoin with a regulated Forex & CFD broker, such as Admiral Markets.

BTC - MT CFD Trading Platform 4

Yes, it is possible to trade cryptocurrencies through Admiral Markets, including BTCUSD. Traders can access BTCUSD and other pairs using the MetaTrader 4 platform and the MetaTrader 4 Supreme Edition plugin.

Also, all the additional features for MetaTrader 4 Supreme Edition are now available for the latest version of the MetaTrader 5 Supreme Edition plugin.

To start trading, follow these steps:

Intraday Trading Strategies For Bitcoin CFDs

For intraday trading, you may want to use the scalping strategy several times a day or, finally, if time does not allow, you may want to use a BTCUSD intraday trading strategy.

This strategy involves MACD with RSI and KIC indicators for intraday traders.

In order to apply this strategy, you will also need to download the MetaTrader 4 Supreme Edition plugin, which requires the Admiral Pivot indicator. The Admiral Pivot indicator offers the possibility of unprecedented customization, suitable for both day-traders and those who deal with intra-weekly swing.

 

Indicators used in this strategy:

  1. RSI (10, close)
  2. CCI (14, typical price HLC / 3)
  3. MACD (12,26,9)
  4. Admiral Pivot

The strategy is traded on the M5 interval (30 minutes).

Traders buy BTCUSD when:

  1. MACD>O
  2. RSI>50
  3. CCI>0
  4. The price is slightly above the pivot support

The stop-loss level is placed below the entry point, while the target is the resistance generated by the Admiral pivot. In high trend situations, this should be a winning intra-day trading strategy for BTCUSD.

stop loss bitcoinSource: Admiral Markets MT4, Chart BTCUSD M30, 14-21 May 2017

Bitcoin CFD Trading Strategies

Here's a scalping strategy to take advantage of volatility to your advantage.

Scalping on the BTCUSD pair is done using an excellent Double MACD strategy, which is also presented during Forex 101 . Due to volatility and trend, this strategy is suitable for BTC / USD trading for shorter periods of time, such as M5.

BTCUSD's trading strategy uses 2 EMAs (exponential moving averages), 34 and 55, 2 Stochastics indicators that are overlapping (8,1,3 and 13,1,3), MACD2Line indicator (34,89,34) or implicit MT4 MACD if you do not have MACD2Line and Admiral Markets Pivot available in MetaTrader 4 Supreme Edition. We've also included a complete template with all the indicators that you can automatically upload to your MT4 platform using Forex 101. If you decide to use the strategy without Forex 101, this is how you can set it up on the chart.

1. Open the BTCUSD chart at 5 minutes;

2. Apply 34 and 55 EMA. With blue is 34 EMA, with red is 55 EMA. Both are set to interval closures;

BTC 2Source: Admiral Markets MT4, BTCUSD M5 Chart, July 16, 2017

3. Add the MACD (34,89,34)

BTC 3Source: Admiral Markets MT4, BTCUSD M5 Chart, July 16, 2017

4. Add on the same graph, Stochastic (8,1,3) and (13,1,3);

btc 4Source: Admiral Markets MT4, BTCUSD M5 Chart, July 16, 2017

5. Finally, add the Admiral Pivot set to the daily pivots.

btc 5Source: Admiral Markets MT4, BTCUSD M5 Chart, July 16, 2017

1. Buy BTCUSD when the blue EMA 34 is above the red EMA at 55 intervals;

2. The price must decrease to the EMA. Ideally, it should stop at EMAs or slightly below them;

3. The MACD is greater than 0 (or the MACD must have a blue histogram if you are using the Forex 101 template);

4. Any Stochastics should be below 20 and pointed upwards (ideally, break through the level of 20 from the bottom up);

5. The price target is the next Admiral Pivot with stop-loss below the previous lows.

stop loss btcSource: Admiral Markets MT4, BTCUSD M5 Chart, July 12, 2017

Is Bitcoin A Speculative Balloon?

The situation around crypto technologies is probably very similar to that of the dotcom bubble, which appeared in the early 2000s. There are a large number of projects related to the blockchain segment, each announcing an ICO (Initial Coin Offering), almost every day. ICO represents the initial supply of cryptocurrencies and represents a necessary stage of the respective start-up projects. This is a certain type of IPO , which is located in the economic climate of cryptocurrencies. The projects are collectively funded by the public, who buy "chips" issued in exchange for Bitcoin and / or other cryptocurrencies.

Of course, as in any other industry, 90% of projects will fail to deliver a functional product and will probably soon turn into a series of resounding bankruptcies. There have been situations where the price of Bitcoin could be, perhaps, to some extent, overbought, due to the massive demand for Bitcoin due to the surge of the ICO crowd.

So, are we in an area characterized by these speculative bubbles or not? We will only know if these bubbles will explode. In the meantime, you can trade Bitcoin CFDs through Admiral Markets and benefit from a 1: 5 leverage effect during a 24/7 trading program.

Stay tuned for more interesting comments about Bitcoin and other cryptocurrencies coming soon!

Remember, it is now possible to trade Bitcoin on an Amiral Markets demo account. Try it today ... it will allow you to practice for free, in real market conditions!

 

Forex course

About Admiral Markets

As a regulated broker, we offer access to some of the most widely used trading platforms in the world. You can trade through our CFDs, stocks and ETFs.

Acest material nu conține și nu trebuie interpretat ca conținând sfaturi de investiții, recomandări de investiții, oferte sau cereri de tranzacționare a instrumentelor financiare. Vă rugăm să rețineți că o astfel de analiză de tranzacționare nu este un indicator fiabil al performanței actuale sau viitoare, deoarece circumstanțele se pot schimba în timp. Înainte de a lua orice decizie de investiții, ar trebui să solicitați sfaturi de la consilieri financiari independenți pentru a vă asigura că înțelegeți  riscurile  .

Corneliu Boghian GOOD INFO !
November 4, 2020 at 8:35am