These days, Bitcoin managed to headline news from all around the world as it broke the 2017 record in value and reached a price that no one could’ve expected. As of mid-January, Bitcoin is valued at around $34,000, which is a staggering number.
The surge in value attracted many new people to the network and the infrastructure has never been bigger. As new traders appear, they are faced with many challenges. Knowing the Bitcoin terms which can teach them about how the cryptocurrency works is one of those challenges. We decided to help the novice traders by naming some of the most popular Bitcoin terms and get them more familiar with the crypto world. Let’s begin.
Trading Sites
Trading sites are the platforms where Bitcoin users trade their Bitcoins and manage to make a profit. The reason as to why trading sites are an essential part of the trading process is because they can provide you with valuable information on Bitcoin and help you maximize your profit.
Bitcoin has a very high volatility rate and the price often fluctuates, making it impossible for traders to predict what the future price of the cryptocurrency will be and thus, decide when it is the best time to sell their Bitcoins.
Trading sites use AI software systems which collect the data on Bitcoin from the market and predict the future price of the cryptocurrency with great precision. Bitcoin Evolution is one of the most reputable sites of this character as it has thousands of registered users and a huge daily profitability rate. Beginner traders should really take this platform into consideration, so if you are one of them, make sure you find out more about Bitcoin Evolution.
Volatility
Speaking of the volatility rate, it is important to break down what this term means as well. The volatility signifies the rate of which Bitcoin price is a subject to a change. Bitcoin has a high volatility rate, meaning that its value changes very often. In most cases, the price of 1 Bitcoin can rise or go down with each passing day.
Block/ Blockchain and Miners/Mining
Before Bitcoin users trade their Bitcoins at the aforementioned trading sites, they must first earn them. They do that through mining. Mining is a process in which people record and verify each transaction made with the cryptocurrency. The people that are doing this process are miners.
Verifying these transactions is not an easy task as it requires miners to solve complex puzzles. Each transaction that they verify is called a block, while the whole log which keeps records of all blocks is called a blockchain. The more blocks miners record, the more Bitcoins they earn.
Cryptography
We often hear about how Bitcoin utilizes the cryptography technology to provide its users with a certain level of anonymity when they are trading. Cryptography, or also known as cryptology, is a method of using codes to communicate and make it difficult for unwanted parties to gain access to the real information.
Through the use of cryptography, Bitcoin traders can hide their true identity, thus increasing the level of online security. Considering the fact that we live in an era where online scams are taking place quite often, being secure on the Internet is a massive benefit and that’s exactly what Bitcoin provides for its users with this technology.
Public and Private Keys
Next up, we have the keys that users often use to gain access to some Bitcoin features. There are two types of keys – public and private. The public key is used to complete a transaction between two sides, while the private key is used to access your wallet which stores your Bitcoins.
You must make sure that the private key is a top secret because if anyone gains access to it, they can steal your Bitcoins.
Satoshi Nakamoto
Satoshi Nakamoto is a pseudonym which is used to describe the creator of Bitcoin. The real identity of this individual remains a mystery to this day. Although there have been many speculations, there is no exact confirmation of whether Satoshi is a male or a female, what is this person’s age, nationality, etc.
Halving
Finally, halving is the last term that we wanted to cover. This is an event in which the reward for miners is cut in half and the number of new Bitcoins is lowered. Most often, after the process of halving takes place, Bitcoin’s price surges – that happened in 2020 and still continues.