What is Bitcoin (BTC) virtual currency ? Essential Information for Beginners

What is Bitcoin – Learn about the virtual currency market, perhaps no one does not know about Bitcoin. Every second that goes by, at virtual currency exchanges, there are many orders to buy and sell Bitcoin flashing continuously. So what is Bitcoin (BTC) virtual currency? Why do people talk about it so much? Come on, let’s find out.

Learn about Bitcoin with Phong Duy

NOTE: to limit clicking on junk links, leading to loss of property when trading Bitcoin. Below, I have available the login links to create accounts at the most prestigious Bitcoin and virtual currency trading platforms today. In which, Binance is the world’s largest virtual currency exchange:

Please click on the links above to create an account. Then, remember to bookmark these links on your web browser to continue logging in next time. In addition, if you have difficulty creating an account, you can refer to the following tutorial articles:

What is Bitcoin (BTC) virtual currency?

Bitcoin is a digital currency or is known as digital GOLD. In it, Bitcoin’s transaction data is recorded on the blockchain (blockchain) and is transparent to all participants in this blockchain network.

New Bitcoins are created by solving complex algorithms on computers, and these computers are often giant machines and are distributed across the globe. The highlight is that Bitcoin’s transactions are completely independent, without intermediaries (no need for Banks, …) and cross-border, thanks to the peer-to-peer protocol.

What is Bitcoin (BTC) virtual currency?

Bitcoin Basics:

Bitcoin (BTC) Max supply: 21,000,000 BTCWhite papper: Website Link: https://bitcoin.org/en/Price: coinmarketcap.com, coiningecko.com Bitcoin wallet: where BTC is stored. A Bitcoin wallet address is a sequence of numbers and characters, for example: 1AjgXv8uTf2izHv2VeWEYQkAU3yVPerEYK is a Bitcoin wallet address. Because Bitcoin is the largest coin in the world, there are many wallets that support storing Bitcoin, such as Coin98 wallet, Trust wallet… Refer to the article Bitcoin wallet: HereBitcoin is the pioneer and largest digital currency today. Bitcoin was officially announced in 2009 by an individual or organization named Satoshi Nakamoto.

Example to make it easier for you to understand a BTC transaction: Suppose A owns Bitcoin and wants to transfer it to B, the transaction will take place as follows:

First : Person B must have a Bitcoin wallet address , to receive Bitcoin from person A. This Bitcoin wallet can be an exchange wallet (Binance exchange wallet, …) or a storage wallet (hot wallet or cold wallet)..

Next : This transaction will need to be verified and recorded on the blockchain (in short, the ledger in accounting). These people are called Bitcoin miners or bitcoin miners. Bitcoin miners have the main job and the most profit is Bitcoin mining, that is, solving complex algorithms on computers to receive Bitcoins. In addition, they are also paid $$$ for participating in transaction verification on the blockchain. These miners are present all over the world and are most concentrated, especially in China.

Finally , person A enters person B’s Bitcoin wallet address and the amount of BTC to transfer. Then, select Send and Bitcoin will be transferred to person B. Of course, a small fee will be deducted for the transaction verifier.

Blockchain Platform is the basis of Bitcoin

(Also, if A wants to sell Bitcoin to others, A can transfer Bitcoin to the exchange’s wallet of some reputable virtual currency exchange, such as binance. Then, A executes a sell order, depending on the purpose, If you want to sell Bitcoin for VND, you can use P2P transaction. Or if you want to sell BTC to buy other coins, use Spot trading… You can refer to the article about your Binance exchange to link at the top of this article. )

Why is Bitcoin at the Top 1 position in the world?

No middleman needed

As long as you have a Bitcoin wallet address and an internet connection, you can send and receive BTC globally, without having to go through a 3rd party like a Bank… That is, BTC users can transfer BTC around the world without having to reveal your identity or require anyone’s permission.

Decentralized

Not controlled by any organization or individual.

Limited supply

21,000,000 bitcoins, no one can change even Satoshi. The unit of Bitcoin is Satoshi, 1 BTC = 100,000,000 Satoshis.

Bitcoin ranks 14th on the ranking of fiat currencies by countries, coinmarketcap data

Incognito

Everyone can see the Bitcoin wallet address. But do NOT know who the personal information of that BTC wallet owner is. This is the highlight of Bitcoin’s security and safety. Because, only Bitcoin owners know the exact amount of Bitcoin in their wallet.

Easy to carry

A Bitcoin wallet or virtual currency wallet is a form of digital storage, so it is very convenient to carry or store.

Limited supply

The father of Bitcoin also cannot interfere in changing the number of bitcoins. This shows the scarcity and value of Bitcoin in the future.

Bitcoin cannot be counterfeited

Currently, no one has thought of a way to fake Bitcoin. This point is to eat paper money.

Bitcoin is HIGHly secure

Since bitcoin operates on a blockchain network (blockchain), it is roughly like a chain. So let’s say, someone wants to edit something in the blockchain, it has to be done on all the nodes of the blockchain. That is, fixing each link in the chain is the blockchain. But you know, blockchain is not in a fixed place. So the possibility of hacking bitcoins is there but is extremely rare or almost impossible.

Bitcoin transactions are immutable

If you transfer bitcoins to the wrong BTC wallet address, the probability of losing that BTC is almost 100%. Since there is no middleman, you can’t complain about sending the wrong bitcoins. So, be really alert when trading. And of course, you can’t go to blockchaim and edit the last transaction.

Because Bitcoin transactions are immutable, it will ensure almost absolute safety in transactions.

Bitcoin Halving Event

This event will halve the block reward for Bitcoin miners. Bitcoin halving is set by default every 4 years and of course no one can change this event. When the new Bitcoin launches, for each completed block, BTC miners will be rewarded with 50 Bitcoins.

However, when Bitcoin halving in 2012, the block reward dropped, to only 25 BTC. The last Bitcoin halving was in May 2020, the number of bitcoins was only 6.25 BTC.

This is also the advantage of Bitcoin that other coins born later have inspired to create a burning coin. The purpose of the Bitcoin halving is to reduce the inflation of Bitcoin to the lowest level. Unlike paper money that is continuously printed, there is no supply limit. Bitcoin was born as a “slap” to the face of paper money: limited supply, inflation, safe and decentralized.

Bitcoin stepped out into the world

A short time ago, Bitcoin was only quietly famous in the digital currency world. But in the past few years, the acceptance of the big guys like Paypal, … and more recently, the world billionaire Elon Musk’s information has been invested in Bitcoin. All, helped Bitcoin become more and more famous. That is also one of the reasons why Bitcoin price continuously set new price records in the first months of 2021.

Have you ever wondered: Saying Bitcoin is a digital currency, where can you spend Bitcoin? Currently, there are applications that support payments with virtual money, including BTC, such as:

TravelbyBit : Support for booking flights and hotels with Bitcoin and other cryptocurrencies. In particular, if you register and book with cryptocurrency, you will receive a 10% discount on your order. Spendabit : a tool to help you find products that can be purchased with Bitcoin. Coinmap : supports searching for all cryptocurrency holders who need to trade and ATMs that support virtual currency near you. Bitrefill: helps you buy a lot of service gift cards or recharge your phone with Bitcoin and other cryptocurrencies through Bitrefill.However, in Vietnam, these applications are not supported yet.

How to make money from Bitcoin

Bitcoin Mining (Bitcoin Mining)

There is no way to create Bitcoins and change the supply of Bitcoins. New Bitcoins are only created through mining or so-called Bitcoin mining. Because Bitcoin was so hot, the number of people participating in BTC mining became very crowded. So if you want to mine a large amount of BTC, Bitcoin miners (miners) have to spend a lot of money to invest in machines. According to calculations, by 2040, the last bitcoin will be mined.

Free Bitcoin Mining

In addition, there is also a free way to mine bitcoins on your phone and computer so you can make money online in your spare time. Refer to the article: 2 ways to mine Bitcoin for free

Bitcoin holding (Bitcoin holding)

That is, buy bitcoin and store it in a BTC wallet for a long time. When necessary, sell to take profit or store as savings in a bank…

Bitcoin Storage

Personally, I am prioritizing this way (This is NOT investment advice) mainly because I am lazy to check prices.

Bitcoin investment (Bitcoin trading)

This way is for you with good heart and blood pressure. For Bitcoin trading, many people often use the word “surf”, meaning to buy Bitcoin and calculate the selling time to take profits in a short period of time. In the world of virtual currency traders, the common saying is “buy red, sell green” to talk about buying and selling coins when the price is low and selling when the price is up.

Invest Bitcoin Smartly

My little advice for those who are new to this market: should be considered, calm and especially have a little psychological stability, then step into the trading school.

What are the risks of investing in Bitcoin BTC virtual currency?

Bitcoin halving event

The most influential people when the bitcoin halving takes place are miners because their rewards will decrease. There are many streams of information and opinions that Bitcoin price will change before and after this event occurs. So it is possible that the price of BTC and altcoins will change around the Bitcoin halving event. As a result, it is clear that abcxyz sells to take profits or sells to cut losses, fomo…

Bitcoin has had periods of severe crisis

The Bitcoin Crisis

There have been two bursts of Bitcoin “bubbles”:

In 2017, bitcoin rallied to a peak at $11,000/BTC, then turned sharply lowerIn March 2020, bitcoin plunged to $3,000/BTC because of the Covid19 pandemic. Then near the end of the year it increased to more than $50,000/BTC and now at the beginning of April 2021, the bitcoin price is $64,000/BTCThe dizzying price increase created a peak and then turned down, inevitably causing headaches for virtual currency and Bitcoin investors. There have been quite a few financial experts in the world that have identified Bitcoin as a financial bubble.

Legality

Currently in Vietnam, there is no official announcement about using Bitcoin legally, but there is no prohibition. But if you consider Bitcoin as a commodity to buy or invest, it is still legal.

In addition,  the regulation of Bitcoin  under Vietnamese law is still not detailed and is in the process of developing a legal framework. However, there have been quite a few people who have made a profit from investing in Bitcoin.

Political role

Although, Bitcoin is decentralized and does not have any control by anyone, but if there is a certain ban from major countries then. OMG. It will also have a significant impact on the virtual currency market.

Another factor

Price

The more popular Bitcoin is and attracts more community attention, the more it will drive price volatility. Bitcoin players must really consider carefully before investing money to avoid losses and swinging peaks. In addition, before investing in any form (real estate, securities, etc.), investors must learn, calculate and allocate capital appropriately.

Exchanges

The risk of junk exchanges, scams, loss of assets is very high.. You can refer to and create an account at the links I provided at the beginning of the article, to minimize the risk caused by spam links. out.

Exchange BINANCE

For me, BINANCE is the BEST, because of the lowest transaction fees, the largest exchange in the world, prestige, easy-to-use interface, 24/7 support… and especially high liquidity.

Security settings

For floor passwords, wallets should NOT be set in the form of date of birth, name, address or relative’s name… because they are easy to hack

For the private key code (recovery code) must be stored in a safe place, not shared with anyone if you do not want to lose your property. This recovery code is very important, losing this code will be considered as losing Bitcoin or virtual currency.

Should turn on security 2FA, GA, verify information via email… to enhance the security of the account.

Conclude

Thank you for reading my article. Hopefully, you will have more information about Bitcoin – the most expensive and valuable cryptocurrency today. I would also like to repeat again, investing in Bitcoin and virtual money is always risky for newbies, even longtime traders.

Therefore, carefully researching many information sources and creating accounts at reputable virtual currency exchanges (link provided at the top of the article) will somewhat limit the “what if” times when participating in the crypto market . Good luck.