Introduction to Bitcoin
In this article, we discuss how to trade and obtain bitcoin and how it can help you overcome financial uncertainty in the U.S. today. We lay the groundwork of understanding regarding all things bitcoin and move forward to understand how you can obtain and trade Bitcoin in the U.S. for a lucrative profit to counter the emerging gaps in the financial markets as the year comes to a close.
Before we begin diving into the world of Bitcoin, it is first essential to lay a foundation of understanding regarding the nature of Bitcoin. First, let’s take a brief look at the origins and history of Bitcoin in the U.S.
What is Bitcoin?
Bitcoin and other cryptocurrencies are unique strings of code that carry a value due to their unchanging nature. These strings of code are recorded in a public ledger accessible to everyone to view but not to change. What you get is a system that can transparently record all transactions and holdings that occur through individual accounts while being completely free from manipulation and safe from fraudulent activities. These strings of code that form one “token” of a cryptocurrency carry a value determined by complex market interactions, and each “token” makes up one Bitcoin.
A History of Bitcoin in the U.S.
The Bitcoin was released to create a decentralized financial system that does not rely on mediating parties such as banks and other financial institutions to regulate the market. This means that the Bitcoin and Blockchain system is not controlled by any single authority and is free from regulation by state banks and other such financial institutions.
In the U.S., Bitcoin had a bit of a bumpy ride when it was first introduced due to the public’s lack of understanding of its operation.
Bitcoin received much attention across the world and the U.S. in 2014-2015 when its value skyrocketed to a staggering $700 per Bitcoin.
As of May 2020, there are over ₿18,355,100 in circulation with more than 6 million unique users worldwide.
How Does Bitcoin Work?
A Bitcoin works like any other currency except that any institution does not regulate it, and the price may vary from time to time. A Bitcoin transaction is conducted when a user transfers a specific amount of Bitcoin from one “wallet” to another “wallet.” A Blockchain Ledger notes this exchange. Each participating “node” or individual user carries a copy of this ledger. When a transaction is conducted, a new “block” of information-carrying specifics of the deal is added to a copy of the ledger on each node participating in the blockchain network. In this way, all participating nodes save this transaction information, and every time a new transaction is initiated, the entire blockchain is updated.
How to Obtain Bitcoin?
You can obtain Bitcoin in the same way as other currencies. You can exchange them for services, goods, or assets of equal value. Another way to acquire Bitcoin is to buy them using fiat currencies such as Dollars, Pounds, and Euros through a Bitcoin exchange that offers stable exchange rates. In the following headings, we will explain how Bitcoin exchanges work and their different types.
What Is A Bitcoin Exchange?
A bitcoin exchange is like a market for Bitcoins and other cryptocurrencies. Using a Bitcoin exchange, you can buy, sell, or exchange Bitcoin for services, goods, or fiat currencies.
A Bitcoin exchange can be of two types. One type is the Traditional Bitcoin Exchange, where merchants or sellers offer deals, services, or products, and individual users can buy, sell, or exchange their Bitcoins with them. Traditional Bitcoin exchange does not allow users to communicate with each other. Each transaction is conducted through an order book, which is a software mediator that acts as the middleman for each transaction.
These traditional Bitcoin exchanges often offer higher exchange rates and deduct fees and commission from each transaction that takes the cost of each transaction a bit higher.
What is a P2P Bitcoin Exchange?
The second kind of a Bitcoin exchange is the Peer-to-Peer Bitcoin exchange. This kind of exchange is slightly different from a traditional exchange. It allows user s to communicate with each other, and merchants and sellers can dictate their own terms and conditions for each offer they add to the listing.
Using a P2P Bitcoin exchange, users can get more lucrative deals and better offers, such as exchanging Bitcoin for gift cards that can be used at popular retail outlets online or in-store.
Popular services such as neuronex.io offer a variety of payment methods and support a wide range of fiat and cryptocurrencies for conducting transactions on their exchange.
Using a P2P Bitcoin exchange may be challenging to learn for new users at the beginning. In the long-run, they offer much more profitability and lucrative offers than traditional Bitcoin exchanges along with lower commissions, fees, and other deductibles and more reasonable exchange rates.
Is Bitcoin Trading Legal in the U.S.?
Yes! It is entirely legal to trade Bitcoin in the U.S. A, and it carries the legal status of an “ASSET” instead of Legal Tender. This simply means that you can use it as an asset and exchange it freely with interested parties. Although it cannot replace the Dollar, it can be exchanged for dollars according to the current exchange rate in much the same way you would trade any other asset for cash!
As all products, services, and currency are fundamental “assets” as well, Bitcoin is practically a currency in the U.S. it just carries a different terminology now.
The IRS has also updated their tax forms to include whether taxpayers are involved in cryptocurrency trading and hold cryptocurrency assets.
The Bitcoin is not taxed or regulated by any authority now, and there are no limits to the amount of Bitcoin one can own or trade!
Can I Make Money With Bitcoin?
Yes! You can make money with Bitcoin the same way you can with any other investment. As Bitcoin is an asset, you can invest it wherever you like, and receive profits much the same way as other physical assets. It forms a complete financial system without the involvement of banking authorities and other financial institutions, making it even better as it is not taxed and cannot be manipulated!
As with any other investment, one must be incredibly careful and aware of fraudulent offers and Ponzi schemes when trading with Bitcoin. Malicious individuals and organizations may try to trick Bitcoin users into fraudulent schemes that offer lucrative returns while being completely non-transparent regarding their policies.
When investing in Bitcoin, it is vital to verify the authenticity of the exchange, user, and company before conducting any transactions.
Converting Bitcoin to Cash
There are various ways in which you can convert Bitcoin to cold hard cash.
The first and most straightforward method is to exchange your Bitcoins in favor of fiat currencies using a P2P exchange to get great deals and offers from participating merchants and sellers.
The second method is to purchase digital credits, assets, or gift cards using your Bitcoins, which you can redeem at online stores or retail stores for products and services of your choice.
Another method of converting Bitcoin to cash is to purchase products in exchange for your Bitcoin and sell them forward in exchange for fiat currencies.
You must understand that Bitcoins are not subject to interest in principle and practice, except when a merchant states explicitly the application of an interest ratio in their deal.
This means that no one can increase your Bitcoins just by holding onto them in an account like fiat currencies.
This also means that investing Bitcoin in any deal or offer must be carried out with careful deliberation, as the only way to earn a direct profit on Bitcoin is by holding onto your Bitcoin during price decreases and selling them off or exchanging them for products and services when its value increases in the future.
Finding a P2P Bitcoin Exchange
When searching for a P2P Bitcoin exchange, you must investigate some factors to ensure the exchange’s legitimacy and authenticity.
You can conduct a quick online search to find mentions of the exchange on popular third-party sites that attest to the authenticity of the exchange.
You can also preview the listings and deals to see if they correspond to the market average and not offer outrageous deals that are too good to be true.
Another verifying factor is to check for https certification for the site. You must also beware of sites that ask for detailed personal information. Most authentic sites do not require any additional information except for your Bitcoin wallet address or other financial information.
NEVER give your credit card number to illegitimate sites and be very careful when conducting trades and deals. Be sure to read the fine print for the platform and each specific contract carefully before you initiate a transaction.
Make the Best of your Investment
You can make the best of your investment by keeping an eye on the market and reading up on future price predictions for Bitcoin or your cryptocurrency of choice to find opportune moments to buy new tokens and more profitable periods that are best for selling or exchanging your assets.
The price of Bitcoins in the international market can be quite fluid, and certain authorities may ban or impose sanctions on Bitcoin trading in specific territories or countries.
It is best to research your area and any specific laws that may apply to Bitcoin trading in your country and other places where you would like to trade.
Making a profit on your investment will depend on finding the best deals, and being careful about the offers you choose.
With well-curated sites like neuronex.io, you can guarantee your safety and the profitability of your investment. Such platforms offer additional security measures and maintain the quality of their listings to keep only legitimate and reasonable offers and listings online.
Trading Bitcoin is a highly rewarding specualtive4 investment that can pay off remarkably well in the long run. We suggest investing in a hardware bitcoin wallet to protect your assets with additional security layers and conduct your transactions through verified sites such as Neuronex to ensure the safety of your information and the legitimacy of the deals you choose to accept.
Good luck with your investments!