How do cryptocurrencies work?
Anyone thinking of investing in Bitcoin tends to have numerous questions and confusions. For instance, what gives Bitcoin its value? How is Bitcoin created? Are crypto trading platforms the best way to invest in Bitcoin? And, which crypto trading platform should I trade with?
What gives Bitcoin value?
Bitcoin attains its value through its growing number of merchants, startups, and users. Any digital currency, in fact, gains its value through acceptance. The more people accept and recognize a digital currency, the more it will be worth. A great example is when Elon Musk announced that Tesla would be accepting Bitcoin as a form of payment. This event led to Bitcoins’ value skyrocketing, as many people acknowledged the digital currency.
How is Bitcoin created and secured?
Unlike fiat currencies, Bitcoin cannot be printed and controlled by a regulated body. Instead, it is entirely digital and decentralized. So, to bring a Bitcoin into circulation, you have to use computing power in order to solve certain mathematical equations. This act is known as Bitcoin mining and is done throughout the world by people referred to as ‘miners.’
Once the Bitcoin is mined, it is added to the Blockchain, which is a digital record of transactions. Blockchain technology uses encryption techniques to secure the Bitcoin network and protect it from hackers or fraudulent activities. In fact, as people continue to mine Bitcoins and they’re added to the Blockchain, the network becomes harder to hack into.
To sum it up, miners play a vital role in Bitcoin’s success as they bring new Bitcoin into circulation, secure the network, and record transactions of each Bitcoin that is mined.
What’s the easiest way to purchase Bitcoin?
There are three main ways you can acquire Bitcoin; through mining, by offering a service or product in return for Bitcoin, or by purchasing Bitcoin through a crypto exchange.
Mining is an energy-consuming and costly procedure. In order to mine Bitcoin efficiently, you’ll have to purchase the specialized hardware designed for it. If you decide to mine Bitcoin through your personal computer, you’re less likely to achieve anything but a hefty electricity bill.
Miners usually join mining pools, open mining warehouses, or invest large sums of money on mining equipment to do it on a larger scale. This allows them to cover up the cost of mining by acquiring enough Bitcoins.
Similarly, offering a product or service in return for Bitcoin would require you to have a business. Even if you have a business, the chances of people paying you in Bitcoin are quite low.
The easiest way for a beginner to purchase Bitcoin is through a crypto exchange. Here at CryptoParrot, we allow users to buy, sell, and store their cryptocurrencies through our secure platform. We aim to make your crypto trading journey as smooth as possible, and we’re able to achieve that through our user-friendly website and numerous tools.
What’s a crypto exchange?
A cryptocurrency trading platform or crypto exchange is basically a platform where cryptocurrency buyers meet sellers. Or in the crypto language, it acts as an intermediary between a ‘maker’ and a ‘taker.’ Crypto exchanges facilitate cryptocurrency trading through numerous tools, which may include a simulator, educational tips, knowledge and insights, and support and guidance.
We at CryptoParrot pride ourselves on being one of the best cryptocurrency exchanges based on numerous factors. What makes us stand out is that our platform is designed to suit beginners and experts alike and focuses on catering to every need of a crypto trader.
Pros of buying Bitcoin through a crypto exchange
Many benefits tag along with purchasing Bitcoin through the best bitcoin exchange, out of which the primary pros are:
Being able to purchase, store, and sell Bitcoin within minutes speaks volumes for the convenience provided by Bitcoin exchange sites. All you have to do is sign up and begin your Bitcoin trading journey. However, it’s ideal to look up the best Bitcoin exchanges as some may be better than others.
Our aim at CryptoParrot is to make Bitcoin buying & selling as simple and convenient as possible. Our website is extremely easy to use and easily accessible, even for beginners. Plus, signing up with us shouldn’t take more than a few minutes.
Crypto tips and learning support
A good crypto exchange will provide its users with regular tips and knowledge to ensure they make the most out of their crypto trading journey. After all, continuous learning is a great way to increase your chances of making successful investments.
We at CryptoParrot understand the value of continuous learning when it comes to purchasing and selling Bitcoin profitably, which is why we provide our users with learning tools to make their trading journey more rewarding.
Suitable for beginners
Not all crypto exchanges offer this, but using a simulator to do demo transactions without risking any capital is highly beneficial. Users can use their experience on a simulator to understand how a crypto exchange works and what risks are involved with crypto investments.
At CryptoParrot, you can visit our site and sign up to use our simulator free of cost. We want our users to be prepared before they jump into actual trades, which is why our simulator allows users to make demo trades on real-time markets. You can get the feel of our platform and crypto trading without losing your money, sounds like a deal maker, doesn’t it?
How to choose the best cryptocurrency exchange
It’s undeniable that the crypto exchange you use plays a significant role in your crypto trading experience and journey. In fact, it also has a direct impact on the outcome of your transactions. Why is that so? Well, the best crypto exchange platform will offer you learning tools, support, easy and convenient usage, and knowledgeable insights to make your trading journey as smooth as possible.
The key to choosing the best Bitcoin exchange for your investments is doing proper research. Here’s a list of things you can look for in a crypto exchange:
- User-oriented design, easy to use for beginners and experts alike,
- Easily accessible so that you can make instant transactions,
- Simply and easy sign-up process,
- Learning tools for beginners,
- Support and guidance for beginners,
- Simulator that allows you to experience real-time trades without risking capital.
Purchase Bitcoin with CryptoParrot today
We’re glad to say that here at CryptoParrot; we offer our users every feature and tool that a high-quality crypto exchange could have. Our users’ convenience, ease, and smooth experience are our top priority, and our crypto exchange is designed around these factors.
Another plus point of trading Bitcoin with CryptoParrot is that you can sign up with us within minutes. If you’re looking to instantly experience crypto trading without risking any capital, hop on to our website, sign up, and make demo trades through our simulator.
Buying, selling, and storing Bitcoin could not have been easier. The rise in crypto trading platforms has made it stress-free for people to invest in Bitcoin and other cryptocurrencies. However, not all crypto exchanges are the best crypto exchange you can trade with.
If you’re looking to trade Bitcoin, you should carry out research to figure out the best Bitcoin exchange for yourself. Everyone has different priorities, and these priorities shift pretty fast. So, the key is to find a crypto exchange that is suitable for both beginners and experts alike. Also, the best crypto exchange for anyone would be one that offers its users ease and convenience when trading cryptocurrencies.
We pride ourselves on being the best Bitcoin exchange for beginners and experts alike. In fact, our numerous tools and easy-to-use platform makes us the best crypto exchange for trading numerous cryptocurrencies. To begin your crypto trading journey the easy way, hop on to our sign-up page and register an account with us now.
Best Crypto Exchange FAQ
❓ Is there a lower limit to investing in cryptocurrencies?
Some platforms allow users to invest in cryptocurrencies, including Bitcoin with below 10 USD. However, the minimum requirement varies depending on the platforms. While some have lower requirements, some may have higher requirements. Regardless, investing such little amounts may not be profitable for you. Though as a beginner, it’s always ideal to start small. Starting with smaller investments allows you to build a portfolio without risking too much of your capital.
⏰ Can cryptocurrency be traded after hours?
Crypto markets are active 24 hours a day, seven days a week. So, crypto traders can make transactions whenever they want. However, the liquidity level may vary depending on what time of the day, so traders should assess the market accordingly.
📈 Are day trading rules applicable to cryptocurrencies?
A day-trade occurs when a trader buys and sells the same security, such as stocks or ETFS, on the same market day. The rules of day-trading don’t apply to crypto trading because there aren’t any limitations when it comes to day-trading cryptocurrencies.
💸 Is day trading cryptocurrencies profitable?
There’s no hard and fast rule that you’ll make a profit through day-trading cryptocurrencies. However, many people find it rewarding and can earn through it. The key is to give it time. For instance, if you start with 100$, you’ll slowly gain confidence with time as you reach 1000$, and the cycle would continue. Due to the risk that tags and day trading, it’s best to start with smaller investments.
🕐 What time of the day is Bitcoin the cheapest?
After following ‘trend dependent price movement,’ it’s noticeable that the price of Bitcoin is the lowest on Friday and the highest on Monday during the downward trend. During the upward trend, the price is highest on Saturday and appears to be the lowest on a Monday.