Are you planning to buy your first bitcoin? And or you not clear of what is a bitcoin transaction and how do they work? Do not worry. This article will offer you with a guideline to choose, before buying becoming a bitcoin owner. Use Platforms like this website which is a peer-peer system, which does not involve any third-parties like banks or other controlling authorities. The transactions made with Bitcoins are highly secured and do not incur high transaction fees. Come, let us jump on to the following sections to know more about bitcoins.
Things you should be aware of before buying bitcoins
- Bitcoins are volatile
The price value of Bitcoins will not be stable, and they may change in a concise period. Sometimes the value may rise, and at other times, they may decrease. So, the bitcoins are volatile. The perfect example of bitcoin volatility is, during December 2017, the value of Bitcoin raised by $19,000, but in the same month, the value was reduced to $12,000. The volatility of nature entirely depends on supply and demand. If more people buy the bitcoins, the value will increase, and if more people sell, the value will decrease. The price value of bitcoins also depends on the impact of the market’s perspective. If the markets talk positively about Cryptocurrency, the price value will increase, and if there is a negative impact, it will directly reflect on decreasing the bitcoin price value.
- Transparent nature of Bitcoins
Bitcoins’ most attractive feature is its transparency nature. The reason for this transparent nature is the blockchain technology, which is a public ledger, where the transactions are recorded. All these bitcoin transactions are known to everyone in the network; they can be traceable and incontrovertible. When a bitcoin user buys or sells goods or services in exchange for goods or services that will be broadcasted to all users in the network.
In a traditional currency system, the user will have to give all the personal details like name, address, phone number, and lots more for making a transaction. But for making a bitcoin transaction, the users only need a wallet address for sending and receiving bitcoins. They do not require any personal information.
With the bitcoin system, the cost will be reduced to a greater extent, due to the peer-peer nature of the blockchain technology. The users of bitcoins have to pay only for blockchain fees, which will be very minimal when compared to the traditional currency system.
- Bubble nature of Bitcoins
Concerning bitcoin, the bubble is a speedy increase in the price value and a sudden drastic drop in the price value. When bitcoin charts are noticed, you can see a few bubbles in the year 2011 and 2017. But in the year 2019, the value of bitcoins tripled. So, buy a bitcoin-based on the timing at which the bitcoin rate increases.
- Bitcoin for all
In a traditional currency system, there will be investments, which are purely for rich people. But such discrimination will not be there for investing in bitcoins. They are common to all and anyone can invest or buy or sell bitcoins for the exchange of goods or services. Through the mining process, any people can join the bitcoin system and perform verification and validation of the bitcoin transaction. For successful bitcoin mining, the bitcoin miners will be rewarded with reasonable returns.
- Anonymous nature of Bitcoins
This is the most attractive feature of bitcoins. A bitcoin transaction is very secure, and there will not be a question of security threats unless the bitcoin user loses his/her private key. As bitcoins are peer-peer nature, every bitcoin user will know about every user’s transaction details like transaction history and bitcoin balance. But the personal details like name, address, and other details will not be revealed, and when a transaction block is added to the blockchain, it will never be altered.
- Buying Bitcoin is easy.
Buying bitcoin is very easy, where you have to go to a website and register and click the buy button. But the main thing you have to consider is the trustworthiness of the site. Choose a licensed site to make a secure bitcoin transaction.
Thus this article has given a guide on what details a first-time bitcoin user must know, before buying, to enjoy, and benefit from buying and selling bitcoins.