Bitcoin was created in 2009 by a person or group of people under the pseudonym, Satoshi Nakamoto, and is considered the most popular cryptocurrency today. Since its creation, Bitcoin, known as BTC, has dominated the cryptocurrency market while experiencing highs and lows due to its trading volatility.
BTC operates in a ‘blockchain’ mining eco-system where verified transactions are stored in a database. When a new transaction is entered, it is transmitted to a network of peer-to-peer computers scattered across the world and miners confirm the validity of the transaction in exchange for bitcoin. Once a transaction is confirmed as legitimate, it is added in a limited capacity block. When the block is fully-filled, it is chained to the previously filled block, thus creating a ‘blockchain’.
Bitcoin enthusiasts love that BTC is decentralized. It is intentionally designed without the need for a central authority, which creates a community where everyone can participate equally if they so choose. It is not tied to any country and is not overseen by any regulatory agency. All transactions are publicly recorded while maintaining the anonymity of the individuals validating the transactions. All of these unique features make Bitcoin enticing for efficient and immutable online transactions and investing.
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Bitcoin can be bought and sold in three main capacities: on an exchange platform, in peer-to-peer directories, or with the help of cryptocurrency brokers/market-makers.
On an exchange, you can easily convert your bitcoin into cash by selling it through their platform. A platform uses algorithms for matchmaking and price determination. Selling through an exchange platform is quite easy because of the automated process. Some of the most popular cryptocurrency exchanges are Binance, Coinbase, Bitstamp, Gemini, and Bitfinex. Below is a step-by-step guide on how to sell your bitcoin in a cryptocurrency exchange.
Coinbase, or CB, is a good example. It is the easiest exchange to get started and you can link your bank account to your CB account for cryptocurrency purchases. Coinbase also allows you to transfer fiat (cash) back to your bank account if needed. Each exchange works differently with its interface, but the overall process is similar.
First, open an account and verify your identity on the exchange platform you chose. For your security, you will be asked to show forms of identification. The verification process can take a few days to several weeks.
You can manage your bitcoin on your own by storing it in a secure cold wallet. To trade on an exchange platform, you have to keep a certain amount of your bitcoin in your exchange wallet until you are ready to sell it.
Have a target revenue in mind, and, once the price is right, sell your bitcoin. If using Coinbase, look for the “Buy/Sell” option on the top menu. The default selection is “Buy.” Instead, select “Sell,” then choose “Bitcoin.” Verify the information indicated in the “Deposit To” section. In your connected exchange wallet, define the amount you want to sell. Select “Sell Bitcoin.”
If you want to sell your bitcoin in a direct peer-to-peer transaction, you will need to open an account and complete the trading process with the other trader.
Cryptocurrency exchanges use algorithms for matchmaking and price determination to facilitate the trading process. This makes trading easy for the user. Some exchanges allow credit card payments and wire transfers.
Cryptocurrency brokers, commonly called “market makers,” are firms or individuals that act as a mediator in the cryptocurrency markets based on prices set by them.
In peer-to-peer directories, traders from all around the world are brought together to buy and sell one another’s digital assets. The software matches the buyers and sellers. Matched participants negotiate directly before proceeding with the transaction. This offers more freedom for buyers and sellers. No additional compensation for the intermediary is required.
Cryptocurrencies, such as Bitcoin, are believed to be the currency of the future. More and more people are buying them now before they increase in value.
The verification process is vital to your cryptocurrency journey. You may have to wait for several days and up to a few weeks before you are allowed to trade.
You need a wallet where you can securely keep your cryptocurrency until you are ready to trade. Each marketplace provides a secure wallet option. However, it is best to put only small amounts in a wallet where you do not hold the private key and leave the rest in a wallet that you manage on your own for security purposes.
Like any other stocks traded in a market, the price of bitcoin depends on the demand of the buyers. Investing in cryptocurrency is very volatile. The price depends on the platform and the supply and demand for the cryptocurrency. In some cases, there will be additional charges to withdrawl your cryptocurrency or cash transfer to your local bank account. Research your chosen transactional platform to understand the fees involved.
According to Best Bitcoin Exchange, Paypal, debit/credit cards, bank transfers, and digital tokens are the most popular cryptocurrency payment options.
Using a debit/credit card or Mastercard will ensure the transfer of funds is secure and regulated. Paypal is also efficient and secure because of two-factor authentication.
The right time to sell cryptocurrency depends on the investor. However, various experts say that although the market is very volatile, holding bitcoin longer is advisable. Market data shows that investing in bitcoin for years can be profitable. Many institutions believe the value of cryptocurrency will surge in the coming years.
Bitcoin is considered the pioneer of cryptocurrency. Due to its popularity, many alternative coins have been created. Technically, an Altcoin is a digital coin other than Bitcoin. The most popular alternative coins are Ethereum, Bitcoin Cash, Litecoin, Cardano, Polkadot, and PKT Cash.
While PKT is not listed on an exchange as of February 2021, traders are actively executing peer-to-peer over the counter (OTC) transactions through the PKT Cash Trading Group on Telegram, linked here: https://t.me/joinchat/VTzmffhbXP0mrd9-. This OTC cooperation between traders is highly encouraged. PKT is expected to be available for purchase on an exchange in 2021.
The mining process is streamlined and efficient. There are two well-defined stages: announcement mining and block mining.
In this stage, the miner uploads small bits of data called announcements. You are able to mine announcements from any computer device. Anyone can mine announcements.
Block miners download all of the announcements submitted to their pool and secure them into the blockchain. Block mining is more complex than announcement mining. Block miners must ensure that announcements comply with the minimum work requirements and are in coordination with their desired mining pool. Visit https://pkt.cash/mining to learn more about PKT.
Sources:
https://www.investopedia.com/terms/b/blockchain.asp
https://www.investopedia.com/tech/how-does-bitcoin-mining-work/
https://money.cnn.com/infographic/technology/what-is-bitcoin/index.html
https://www.investopedia.com/articles/investing/042015/bitcoin-vs-litecoin-whats-difference.asp
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