Bitcoin development - use volatility as a constant companion

Bitcoin development: Use BTC for your own interests Successful Bitcoin trend & trading with brokers & securing profits Use Bitcoin development now.

The official Bitcoin development began in 2008, with the internet currencies already in the minds of some developers years ago. Since the introduction, the Bitcoin price and the crypto world itself have changed a lot, especially to their advantage. In addition to Bitcoin, there are numerous other altcoins, which are even based on the Bitcoin idea. Still, Bitcoin remains the undisputed number one in market capitalization - still. We looked at how the development continues and whether new altcoins actually succeed in pushing Bitcoin off the crypto throne.

  • Bitcoin course characterized by volatility
  • Development of Bitcoin blockchain has been adjusted in recent years
  • There are numerous altcoins based on Bitcoin
  • Investors and investors can successfully trade Bitcoin and its price, for example, on exchanges or brokers

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Bitcoin development since the beginning - the fairy tale of THE internet currency that Fiat currencies should fear.

If it is about Bitcoin development, we will address it A look at the beginnings of the mother of all internet currencies: Bitcoin was first published under this name in 2008, but the history of cryptocurrencies actually goes far back. The idea of ​​creating a digital currency is not new. Even before the actual introduction of Bitcoin, there were a few attempts on this topic, although these did not reach popularity and were made public.

B-Money long before Bitcoin

For more than ten years Before the introduction of Bitcoin, there was a first crypto concept by the computer scientist Like Dai. In 1998 he published a paper on so-called B-money, which was also based on digital currencies using digital pseudonyms. In the same year, there was also another attempt with a project called Bit Gold by blockchain pioneer Nick Szabo. The idea behind it also referred to a decentralized digital currency, because the inefficiency of traditional financial systems was already a thorn in the side of some computer scientists.

Both currencies or rather ideas were never officially introduced, making Bitcoin the first official one in 2008 Internet currency saw the light of day. Since then, the internet currency has developed rapidly and is considered a pioneer for many successful altcoins. We take you on the exciting journey of Bitcoin and present the most important events of the past few years and take a look into the future.

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Development of Bitcoin - the starting signal was given in 2008

In 2008, Bitcoin development began, even if only on paper. A peer-to-peer electronic cash system was sent to a mailing list discussion about cryptography. The post was written by a person called Satoshi Nakamoto, whose true identity remains a mystery to this day. This officially spread the idea behind Bitcoin and made it available to the public.

It took a few more months before Bitcoin was actually available as a digital currency. On January 3, 2009, the time had come: The first blog was dismantled in the Bitcoin network and the technology behind it was tested by Nakamoto himself. The first dismantled blog also went down in history as a Genesis block.

Bitcoin development 2010

The first recorded goods purchase was made with Bitcoin when Laszlo Hanyecz bought two pizzas for 10,000 BTC. This day is still celebrated as Bitcoin Pizza Day. Had the buyer adhered to these bitcoins, they would have been worth more than $ 100 million at today's prices. March 2010 was an important moment for all users who trade Bitcoin directly: The first crypto exchange was opened. Under the name bitcoinmarket.com, users were able to buy and sell Bitcoin for the first time. In June 2010, another exchange was introduced, which is still known today: Mt.Gox. In the meantime there are not only countless crypto exchanges, but also over 1,000 internet currencies, which can be traded on the various exchanges.

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2011 to 2013 - important ones (Teaching) years for Bitcoin

Bitcoin was able to reach parity with the USD in February 2011. Several competing cryptocurrencies emerged this year: by May 2013, the cryptocurrency market had 10 digital assets, including Litecoin. Another important crypto asset was added in August under the name XRP (Ripple).

However, June 2011 became a nightmare for many Bitcoin fans, because the Exchange Mt.Gox was hacked for the first time: 2,000 BTC were stolen, valued at around $ 30,000 at the time. Nevertheless, the crypto exchange recovered from it and even became the largest of its kind in 2013; it even processed 70 percent of all Bitcoin transactions at peak times.

2013 the Bitcoin price plunge

Until 2013, Bitcoin's development rose steeply and the price even reached the $ 1,000 mark for the first time, But the euphoria was quickly suppressed by a drop in prices. Many investors who had previously bought Bitcoin had to watch how the coins were actually worth less overnight and the sale was not a profitable option at the time.

At the time, hardly any investors knew that it would take more than two years for Bitcoin development to return to that level and the price to pass the $ 1,000 mark. However, this market situation was interesting for all investors who had opted for Bitcoin CFDs. With the contracts for difference, they were able to master this supposedly bad market situation and open positions on falling prices.

2014 to 2016 - another hack and price decline

In February 2014 there was another big hack at Mt..Gox. 850,000 bitcoins have been stolen, making it the largest theft in cryptocurrency history. At the time, it was the equivalent of $ 460,000,000,000. The result was a decline in investor confidence and a drop in prices. The Bitcoin price development presented itself negatively, because investors had to cope with up to 50 percent loss; significantly more than in 2011. It almost seemed as if Bitcoin had gotten out of hand and the idea behind the decentralized means of payment is no longer a good one. From this situation emerged a new internet currency that should make Bitcoin's weaknesses significantly better: Ethereum.

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Birth of Ethereum 2015

The cryptocurrency Ethereum is inextricably linked to Bitcoin, because it was created in 2016 due to the dissatisfaction of many Bitcoin network users. Behind Ethereum is the cryptocurrency Ether, which is responsible for handling transactions in the network. The special feature: Ethereum uses blockchain-based intelligent contracts - the so-called smart contracts and apps. Through initial coin offerings (ICOs), the necessary capital was collected by investors in order to advance the project at all. The starting signal was given in August 2015.

Since then, Ethereum has developed much like Bitcoin and expanded its market capitalization. Nevertheless, both cryptocurrencies are still inextricably linked, as a look at the price trend shows. If Bitcoin experiences strong market phases, this is usually reflected in the Ethereum price; albeit mostly in a lower intensity.

2017 as one of the strongest Bitcoin years

After Bitcoin has gone through numerous highs and lows in recent years, the Bitcoin price development 2017 is causing concern for investors and investors for real leaps of joy. Bitcoin has overcome the crisis and is presenting itself stronger than ever. Acceptance in society is also increasing. More and more (online) shops are making Bitcoin available as a form of payment and customers are happy to accept it. However, if you really want to own the coins, you need a wallet. There are also numerous options for this in the form of online or offline storage.

An online wallet is still recommended for smaller quantities, although security should be a top priority here. Due to the numerous hacker attacks in the past, the wallet providers have also learned and significantly increased the security measures for online storage. The most secure storage is still available with an offline wallet; For example, with a hardware Bitcoin wallet.

Bitcoin skips 3 million billion in market capitalization

In 2017, hardly any investor could get past Bitcoin. This was also reflected in the market capitalization, which rose from more than USD 10 billion to over USD 300 billion. The number of financial instruments for internet currencies has also increased significantly since then. For example, more and more brokers are making Bitcoin CFDs available or offering trading in contracts for differences on other internet currencies.

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What does the future of Bitcoin look like??

Will Bitcoin development look rosy in the future or will investors have to adjust to bad times again? There is no 100% secure answer to this, Bitcoin and many other internet currencies are extremely volatile. The price can be quickly disturbed by current market news or reports on other coins, which is also shown by a look at the market in June 2019. Facebook announced that it would be launching its own internet currency, putting Bitcoin and other cryptocurrencies under enormous pressure - in a positive sense.

After the release of further details of the Facebook cryptocurrency, the Bitcoin price development became of which inspired and gained a few percentage points. Many crypto fans are looking forward to the fight between Bitcoin and the Facebook cryptocurrency because Libra has ambitious goals. It remains to be seen to what extent these can actually be implemented and influence Bitcoin with the introduction in 2020.

The big unknown: Bitcoin development will be extremely exciting in the future

With the appearance of Libra on the crypto stage, they could Cards will be reshuffled in the future. But other factors, such as the increasing regulation or the decreasing confidence in Fiat currencies in the Bitcoin exchange rate, also have an impact. Volatility in the cryptocurrency is less pronounced than in previous years, but it is still there. For CFD traders, particularly volatile phases are of course an advantage because they can confidently trade the prices. However, such a drop in price is less than ideal for direct buying or selling; at least for generating the profits from the sale.

How can users take advantage of Bitcoin development?

There are various ways in which investors can participate in Bitcoin development can. In addition to direct trading on the exchange, trading with brokers or mining is also included. For whom is which variant particularly well suited and for whom less? We looked at the individual options and presented the opportunities and risks as well as the best possible implementation. Trade now the crypto broker test winner IQ Option

Use Bitcoin development with trading on Exchange

Bitcoin has undoubtedly developed positively in recent years and has also found its way into everyday use. The internet currency is by no means as well known as the fiat currencies, but more and more shops are offering payment with Bitcoin. In addition, there are countless countries where you can withdraw Bitcoin directly from the machine or exchange it for other Internet currencies. It remains to be seen to what extent this trend will continue in the future.

Traders can already invest in Bitcoin and trade on an exchange, for example. A wallet is required to manage the coins like a wallet. If users really want to use the coins to pay for goods or services, buying on the exchange is one of the few ways to actually get the coins. Only Bitcoin mining offers an alternative, which, however, is not always the best choice due to the high electricity costs and the computing effort.

Buy and sell Bitcoin: this should be noted on the exchange

Like the past has shown, there are various crypto exchanges, which were not always 100 percent secure. For example, the hacking attacks on the Exchange resulted in large amounts of coins being lost and the price being negatively impacted. In the meantime, the number of exchanges has increased significantly and security measures have also improved. The larger selection also gives traders more chances to compare prices and prices. The price of the Internet currency is far from the same everywhere, because the individual behavior of supply and demand among the registered users of the Exchange also determines the price.

Do not neglect trading costs

Crucial for The choice of the suitable exchange is also the trading costs or any additional costs. Many crypto exchanges offer a transparent price structure, but far from all. Many exchanges even make trading particularly cheaply available, although users have to pay transaction costs when buying or selling to the Bitcoin network. However, these are not passed on to the stock exchange, but go to the miners, who process the transactions by providing the computing power and thus only enable the processing of purchases and sales.

Users can do it at the cheapest possible price Buying Bitcoin can be worth the slightest positive change in price to generate a profit. Whether the sale is actually worthwhile should be determined on the basis of the trading costs incurred by the Exchange and the expenses for the miners before the sale.

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Mining as Is it really a good source of income?

Miners are an integral part of the Bitcoin network because they ensure that the transactions are processed. Without Bitcoin Miner, trading on the Exchange would be unthinkable, which is why the miners are also rewarded with coins for their expenses. But is the work as a miner really profitable or is it just a hobby, an additional income?

The costs for crypto mining are often the sticking point

The actual work as a miner is less elaborate than maybe thought. To process the transactions, there are special software solutions that generate the blocks. The miner itself does not have to sit in front of the PC and literally go in search of the mathematical solution for transaction processing. However, the costs are crucial when mining, because they determine whether the coins for the reward actually make up for the effort for computing power and hardware. In the best case scenario, a miner should of course make profits with his activity, which is often the case only with longer activity.

For example, if the miners first have to invest hardware, it takes longer until the coins paid out are sufficient to generate a profit, Probably the biggest expense (especially in Europe) is the position for the electricity costs. Investors in Germany and other European countries pay a multiple of the electricity costs than, for example, in Iceland or China. Therefore, mining with these conditions is often only worthwhile to a limited extent. Anyone who is seriously interested in mining should therefore first calculate precisely whether the coins will also be sufficient to generate profits in the medium and long term.

CFDs trading on Bitcoin course development

Another possibility In order to benefit above all from the price development of the cryptocurrency, the contracts for difference are. They are offered not only on Bitcoin, but also in numerous other internet currencies. With CFDs, traders do not invest directly in the coins and therefore do not need a wallet, but rather trade the course of the price. This means that the positions are opened, for example, on a falling or rising price trend and held at will. However, CFDs are particularly interesting for day traders, because even the smallest price fluctuations can be exploited and holding the positions overnight also eliminates the rollover costs. This also makes CFD trading much more interesting from a cost perspective.

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Advantages of the contracts for differences

About a position in CFD trading To open, investors usually only need small amounts. This is an advantage especially for prospective investors, who should start with less capital anyway. If you also use leverage in CFD trading, you can achieve significantly more profits with less capital on the market. For Bitcoin CFDs, the maximum leverage is 1: 2 if the traders act as private investors.

Professional or institutional investors have a much higher leverage available. Leverage multiplies capital and acts as a multiplier. For example, if you want to invest 100 euros and use the leverage of 1: 2, you bring 200 euros into the market. Of course, this means that profits are doubled; but the leverage also works in the opposite direction, so the losses can also be higher.

CFD trading and the disadvantages

Leverage not only has advantages, it can also result in significantly higher losses for investors. Contracts for difference are therefore risky derivatives and should above all be traded with the loss limitation. Prospective traders often have little experience and are not sure how to limit losses and take profits at best. This is exactly why many brokers offer support and provide a free demo account. This gives traders the opportunity to initially trade CFDs without risk and pressure and to be able to cope with losses more easily. Equipped with virtual credit, it is easier to make wrong trading decisions because it is not about your own capital.

Limiting losses as part of a successful trading strategy

Every CFD trader should be in everyone Case have an investment strategy to know exactly how to invest. The investment strategy not only includes defining the amount of capital and the investment horizon, but also taking risk tolerance into account. Investors who choose contracts for differences should be a little risk-takers anyway; On the other hand, it becomes too risky to act without loss limitation. At best, anyone who opens a position should always open a stop loss position, which is closed when their own loss limit is reached. For all investors who practice CFD trading as a hobby, we recommend closing an automatic position, as investors do not have to constantly follow the market news and rely on constant control on their PC or smartphone. Act now with the crypto broker test winner IQ Option

Successful traders never stop learning

What distinguishes successful investors from less successful investors? It is not luck or coincidence, but above all ambition and willingness to learn. Even a good trader started out as a prospective investor without much experience. However, many of them did not allow themselves to be dissuaded by setbacks or wrong trading decisions, but viewed this as an opportunity for further development and improvement. Therefore, prospective traders are well advised to learn from these trading experts.

Fortunately, many brokers now offer this option, often free of charge. Traders can look over the shoulder of the pros in online events and even ask questions. Together with the trading professionals, for example, the current market situation is analyzed or trading tips are given. This is a real treasure trove of free knowledge for all prospective investors, because who has the opportunity to listen to the experiences of the professionals in such a simple way?

Social trading as a new possibility for successful trading

In addition to the classic brokers, there are also more and more providers for social trading. But what makes these platforms so special and what differentiates their services from conventional crypto brokers? Social trading is about investors exchanging information in the community and using the swarm knowledge. Community trading offers many advantages because traders can exchange ideas with like-minded people without even having to pay anything for it. This is brainstorming at a whole new level, which at best can still lead to profit. A provider also offers another option for social trading with the so-called CopyPortfolios.

Copy entire portfolios and make profits

The highlight of this new investment concept: Investors can even complete portfolios and not only copy individual trading decisions. This allows budding traders to kill two birds with one stone: They invest their own capital and build on the expertise of the trading professionals. However, investors themselves are in demand because they determine which portfolios to choose and which trading decisions they actually copy. Traders cannot avoid analyzing the performance of the trading professional and his portfolio. But here, too, the broker provides active support and, for example, provides the risk classification and previous performance transparently (as key figures).

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Use the demo account and try it yourself

Copying the portfolios is a great way for anyone who wants to make a profit right away. But there is no guarantee of profits for trading professionals either, because every successful investor also incurs losses in the course of his career. If you want to experiment with the CopyPortfolios yourself, you can also use a demo account.

The advantage: With virtual credit, traders have the opportunity to become active and simply try out for themselves how trading decisions work. There is of course no real risk of loss, but investors cannot make real profits either. A mixture of both concepts would be an ideal middle ground. In this way, traders can test without fear and at best look forward to profits from the CopyPortfolios.

Price analysis is the key to Bitcoin

If the traders want to be active themselves and not exclusively Trusting the expertise of trading professionals and copying their trading decisions 1: 1, the price analysis is extremely important. The Bitcoin course decides whether there is currently a suitable time to start trading or not. This applies not only to CFD trading, but above all to trading on the exchange.

The price reflects the current market mood and the behavior of supply and demand, but experience shows that Bitcoin can do a lot change quickly. Therefore, traders should carefully study the basics of price analysis to gain security. Only those who know what to look for in the chart can draw the right conclusions and act accordingly. There are two analysis methods to choose from:

  • technical analysis,
  • fundamental analysis.

Both include different data and provide information about the trend development. So that especially prospective traders can learn the price analysis step by step from scratch, we recommend using a demo account to avoid real losses even if misinterpreted.

Support from trading tools

It also makes sense to use trading tools and indicators, such as those made available by brokers on innovative platforms. One of the most well-known trading platforms is undoubtedly the MetaTrader 4, which convinces with its high functionality and user-friendliness as well as countless tools for price analysis. This is even available for smartphones and tablets, so traders can comfortably analyze the current market situation and make trading decisions on the go. Trade now with the crypto broker test winner IQ Option

Conclusion: Use Bitcoin development for your own profits

If you look at the Bitcoin exchange rate development, you will see a roller coaster ride of the cryptocurrency. At the beginning of 2008, demand was comparatively low and the price correspondingly low. Meanwhile, Bitcoin has become a sought-after investment and investment instrument and has even made a name for itself as an alternative means of payment to Fiat currencies. Throughout the history, volatility has been a constant companion of the cryptocurrency, which not only had disadvantages for investors.

Of course, those who invest in an exchange are always looking for the cheapest price to buy the coins, which is best achieved with a downward trend, Such course developments are of course disadvantageous for the seller. There is an investment opportunity with CFDs for all traders who do not necessarily have to wait for a clear trend or want to exploit volatility more flexibly. The contracts for difference are considered risky, but due to their leverage and flexible trading options they also offer good opportunities for risk-taking investors (loss limitation required). Would you like to test whether BTC CFDs fit your investment horizon and risk tolerance? How about test trading with a demo account, for example with the leading provider of social trading?

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You could also use these contributions interested:

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