As a beginner and an amateur investor who has never invested in any cryptocurrency,your first question would range from what is bitcoin?,what is it’s importance?,on which exchange should i make my investments?,and what do i stand to gain from this investments?.
In other to aid Tehlex users and other potential investors who are willing to trade bitcoins,we have drafted this article to broaden your horizon about “bitcoin” and also to make you understand what you are being taught when you attend Tehlex Academy.
What is Bitcoin?
Bitcoin is a currency designed to pay for commodities and services rendered,just like our normal currencies,e.g,dollar,naira,e.t.c.
Bitcoin was developed on the 3rd of January,2009 by a Japanese developer with the pseudo-name, Satoshi Nakomoto.
Why is Bitcoin A Better And More Efficient Means for Transactions and Trading Than Traditional Money?
- It is decentralized,in that no government or apex bank controls and determine it’s supply.
- Bitcoin ensures that your details are hidden ,while revealing only your wallet ID.
- They are digitally structured,in that they work online not physical.
How Can I Use Bitcoins?
Today,Bitcoins can be used to buy and sell a lot of items online ranging from groceries,electronics,games,jewelries,e.t.c.
Examples of firms that accept bitcoins are Dell Communications,Tehlexmart,Microsoft,Pizza Shop Online,Legit.com,e.t.c.
Can Bitcoins Be Stolen?
Some serial hackers work everyday hacking and taking over many investor’s wallet,they use many methods which we outlined in one of our previous articles,so it is better to trade with bitcoin approved exchanges likehttp://www.tehlex.com
What Determines The Price of One Bitcoin
There are two main Investing periods for every merchant in cryptocurrency trading called Bull and Bear.
Bull:This is the market period in which price of Bitcoin is rising or expected to rise.
Bear:The Price of bitcoin here is falling.
Every Sound Economics Student has heard about the “Theory of Demand and Supply”,with the first law stating that the higher the price,the lower the quantity demanded,and vice versa.
Conversely,the law of supply states that the higher the price,the higher the quantity supplied,and vice versa.
This is the rule that governs the fluctuation of the price of bitcoin at any given time and also makes you to know when to invest.
The fluctuation Determinants are as follows:
- The supply of Bitcoin and Market Demand for it.
- The exchange it is being traded.
- It’s internal governing body which formulates policies governing it.
- The number of competing cryptocurrencies or digital currencies.
The Supply of Bitcoin Is Impacted In Two Major Ways:
The first way allows new bitcoins to be created at a fixed rate,these new bitcoins are introduced into the market when miners process blocks of transactions,a practical example is the growth of bitcoins from 9.8% in 2015 to 6.9% in 2016 and so on.
This drives up demand while supply decreases,thereby increasing the price because when demand is more than supply,the bitcoin prices increases.
Also the number of bitcoins in circulation also affects fluctuation.
It is said that bitcoin is capped at 21 million,i.e,it is limited to only 21 million pieces,and once this is reached,minning activities will end.
As at July 2019, 17,714,437.5 bitcoins were in existence.
Note:The number changes every ten minutes when new blocks are mined representing 84.35% of the total 21 million bitcoins to be mined.
Also,regulations and legal matters affect the demand and supply of bitcoins due to activities such as exchange traded funds(ETF’S) features and other derivatives,it provides bitcoin access to investors who cannot afford to purchase bitcoins,thus increasing demand and also reducing price votality by allowing investors who believe in overvalued and undervalued features to use their substantial resources to make sure that bitcoin’s price will move in the opposite direction.
How Do I Understand Bitcoin Price Charts?
Bitcoin Price Charts are used to forecast price movements of Bitcoin.
There are two main types of price charts,namely the simple price chart and the Candlestick Price Chart.
Simple Price Chart:
The simple price chart displays prices as a line.
The closing prices of any given period of time are used to draw the price line.This kind of chart is used to get recent overview of prices.
Candlestick Price Chart
This displays more data than the simple price chart,it shows the opening price,the lowest price and the highest price at a given time as well as the closing price.
In addition,the candle color shows whether the closing price is higher than the opening price(a green bar called “up bar”) or lower than the opening price(a red bar called a “down bar”).
There are other Price Charts such as NTB Range Chart,e.t.c
Where To Find Bitcoin And How To Invest:
http://www.tehlex.com is the best place for investing on bitcoins,to invest,follow this steps
- Go to http://www.tehlex.com
- Sign Up
3. Enter your details
4. Choose your password
5. Verify that you are a human being.
6. Sign Up
7.Click Buy Bitcoin
8.Put your Bank Account Details and wait for your account to be credited.