Bitcoins: All You Need To Know About it

While you probably already heard or read about Bitcoins before, the truth is that if you’re like most people, you still haven’t quite figured out what Bitcoins are or what they do. So, with this in mind, we decided to write this post to make sure that you know all about Bitcoins and why you just keep listening about them all over the place.

What Is Bitcoin?

Simply put, Bitcoin is a digital currency that was created back in 2009 by Satoshi Nakamoto. Even though this is known to be a pseudonym and no one knows exactly who this person this up until now, the reality is that he was able to create Bitcoins that are being used more and more often for many different things.

One of the main differences between Bitcoin and a real currency like the US Dollar or the Euro, for example, is the fact that Bitcoins use a decentralized market. This means that there isn’t one entity that regulates all the payments that you do. However, all the payments need to be verified by everyone who belongs to this network. This assures that all the payments are valid.

One of the things that tend to confuse many people is when they hear about cryptocurrencies. The truth is that Bitcoin was the first cryptocurrency to appear. However, after so many years, other cryptocurrencies have been appearing on the market. One of the most famous ones is Ethereum.

70trades-reviews-bitcoinHow Does Bitcoin Work?

According to Nakamoto, there shouldn’t ever be a third entity or party to verify any payment made. So, instead of this, Bitcoin uses a system called blockchain. All the payment transactions are recorded on the respective blockchain which is powered by users who offer their computer power. By doing this, these users are then rewarded with the newly created Bitcoins. This activity is known as mining.

In order to create Bitcoins, the user needs to generate blocks on the network. However, there is a limit to the creation of Bitcoins to make sure that the value just can’t be diluted. This value is right under 21 million Bitcoins.

How Can You Get Bitcoins?

Even though you may think it’s complicated to get Bitcoins, the truth is that it couldn’t be any simpler. You can buy Bitcoins directly from special websites that are called “exchanges” where you can easily swap them by any other regular currency. or you can also buy them directly from individuals.

In case you have a website, for example, one of the payment methods that you can have may accept Bitcoins. This will also allow you to get Bitcoins.

What Are Bitcoin Wallets?

Just like you have a regular wallet to store your cash when you own Bitcoins, you want to make sure that you store them properly. And for this, the best option that you have is to have a Bitcoin wallet which is a specially designed program with this goal. Depending on the Bitcoin wallet that you choose, you may access it through your regular PC or through an app.

What Are Bitcoins Used For?

One thing is for sure – Bitcoins have changed a lot in the last few years.

When most people started hearing or reading about Bitcoins, this digital currency was mostly being used for illegal activities that included money laundering, cybercrime, and drug dealing. After all, Bitcoins are untraceable since there is no third party to verify any payments made. However, things have changed a lot. The truth is that you can already see some websites accepting payments in Bitcoins as well as some retailers across different countries, especially the UK and the United States. Bitcoins are not only accepted by online businesses anymore. More and more offline businesses are accepting Bitcoins as well.

So, when you have some Bitcoins and you are considering buying a product or service, you can always check out if the company accepts Bitcoins.

However, some people decide to simply keep Bitcoins. This is more like an investment than using Bitcoins for paying for a product or a service. For these people, holding Bitcoins is just the same as holding a stock, for example.

Should You Invest In Bitcoin?

Just like we said, many people are simply buying Bitcoins to hold them and to later sell them for a profit. But should you do it?

The final answer is totally on you because you know yourself better than anyone. One thing that you need to keep in mind is that investing in Bitcoins is a risky business just like when you invest in Forex or in the stock exchange. There is always the possibility of losing all the money you invested in, in the first place. However, we also can’t help noticing that even though the Bitcoins chart has its ups and downs just like any other currency or stock, it can help you make some money.

The best thing you can do is to take a look at the chart. In 2013, for example, the Bitcoin went from a few dollars up to more than $1,100 in just a few months. After being quiet for a few years, this year Bitcoin decided to show us that t is still alive and peaked at about $4,200. However, in the next few days, it took a severe dive.

Ultimately, investing or not investing in Bitcoin is just a personal question that each one of us should answer. We already told you about the risks as well as about the rewards.

As you can see, Bitcoins aren’t really that hard to figure out. The truth is that they are just like any other currency that you know with some differences. The reality is that the fact that Bitcoins are traded using a decentralized market makes many people afraid of losing their money. However, what Nakamoto did when he created this system was to make sure that all the payments were verified within this decentralized system. This actually ends up helping Bitcoin holders trusting each other and making business together. In addition, the fact that there are no fees associated with the transactions make the Bitcoin market very appealing.

bitcoin-reviews-investing-70-tradesWhile back in 2009 Bitcoins tended to be used mostly for illegal activities, the reality is that now, more and more businesses, online and offline, are starting to accept this digital currency as a form of payment just like they accept cash, Paypal, credit cards, or debit cards.

Author: Editorial staff of 70 trades reviews blog


How much is important in the Forex to stay updated with the financial news?

When you just happen to be looking at a currency pair chart and you suddenly see an abnormal movement, this usually means that there was a news release.

Any currency in the world is affected by several different news. They can be either political, social, economic, among others. The fact is that a country’s currency is affected directly by the different financial news.

This is why it is so important for Forex traders to be aware of the different economic indicators as well as of the different news events that may come out during the day or week.

Here are the 5 market news events that usually increase the Forex market volatility:

#1: Central Bank Rate Decision:

Every single month, each Central Bank meet to decide whether they will maintain, increase or decrease the interest rates. While an increase of the interest rate usually gives a bullish sign for the currency, a decrease of the interest rate gives a bearish signal and it should decrease in value

But the announcement of the new interest rate is much more than that. This is when the Central Bank of each country provides a general overview of the economy as well as their vision for the future. Now, depending on how traders and investors interpret their words, the currency can either go up or down.

#2: GDP:

The GDP is one of the most important indicators that measure the health of a country’s economy. So, when the GDP report is below the market expectations, the currency tends to fall; when the GDP is above expectations, the currency is likely to rise.

#3: CPI (Inflation Data):

The CPI (Consumer Price Index) is the most widely used indicator in terms of inflation. Usually, when inflation is seen as moving beyond a determined target, interest rates will tend to rise because they are used to counter inflation.

#4: Unemployment Rate:

A country’s unemployment rate is one of the most crucial data for the market since it refers to the economy’s health. Usually, higher employment rates tend to lead interest rates to rise.

#5: FOMC Meeting:

In the world economy, all countries are equally important. However, if there are any financial news that only concern to a country that tends to affect all the economies all over the world, this country is the United States of America. So, when there is the FOMC meeting, which happens once a month, the rates are set. Plus, there are also the speeches about how the economy is, what’s good, what’s bad, and what suggestions the FOMC has.

Author: Editorial staff of 70trades reviews blog


How to invest in the forex?

If you’re thinking about trading the Forex market, there are some things that you need to consider learning before you actually start trading.

#1: Learn the Forex Trading Basics:

Knowing what is an exchange rate, a base currency, a long and a short position, the bid and ask price, the spread, among other terms, is crucial if you want to at least have a shot of succeeding in the Forex market.

#2: Read A Quote:

If you already watched CNBC or Bloomberg, you probably already know how to read a quote even of you never traded any financial instrument before. On a Forex quote, you’ll have the bid price on your left and the asking price on your right.

#3: Decide On The Currency You Want To Trade:

When you’re just starting to trade the Forex market, it’s better if you just trade one currency pair or two max. This will allow you to know everything that is going on in the countries, about the economies, what you can expect, what others expect, etc.

#4: Open Your Online Forex Brokerage Account:

When you head to this step, plan to be here for quite a while. One of the problems of the Forex market is the brokers. There are too many scams out there and it pays for you to be careful. So, instead of choosing the first Forex broker you see, make sure that you do a good research about the different brokers.

#5: Start Trading:

Now it’s finally time to start trading. So, the first thing you need to do is to analyze the market. In order to do this, you can use one of three different strategies:

– Technical Analysis: Implies looking at the past charts and patterns and try to predict what the currency pair is going to do now.

– Fundamental Analysis: Implies looking at the economic fundamentals of a country and base your trading decisions on them.

– Sentimental Analysis: This is the most difficult analysis you can o and it’s usually done best by more experienced traders and investors. This strategy implies that you try to figure out the mood of the market and define it as bullish or bearish.

#6: Place Your Order:

When it’s time to place your order, you need to know that, depending on what you want to achieve, you can choose from 3 different types of orders:

– Market Orders: You’ll simply be telling your broker that you want to buy or sell the currency pair now, at the current market price.

– Limit Orders: You’re telling your broker that you have a specific price for the order to be filled. If the price isn’t reached the order won0t be filled and you’ll retain the money on your trading account.

– Stop Orders: This is when you choose to buy a currency pair above the current market price because you’re anticipating that the price will rise.

Author: Editorial staff of 70trades reviews blog