Bitcoin’s network counts over 5 million users in 2021. This network continues to grow each day as thousands of new users register with each passing day. After all, Bitcoin is at the highest point in its history and everybody wants to start trading with this cryptocurrency and make a profit.
Novice traders have a lot to learn about Bitcoin, the technology that powers it, etc. They also need to get familiar with all the terms used in this world as they can help them get up to speed with everything that is going on. With that thought in mind, we decided to explain several Bitcoin terms that will prove to be of massive assistance. Let’s check them out.
Blockchain
Blockchain is the technology that powers Bitcoin. This is a log that contains every bit of information about the cryptocurrency and the transactions that are completed in this network. Think of it as a full report from a certain bank. But, since Bitcoin is not controlled by any bank and it is self-sustainable, the blockchain is updated by its users. Each transaction made with Bitcoin is recorded and is known as a block, while the blockchain stores (chains) all blocks into one place.
Mining
Mining is the most popular way to earn Bitcoins. It has proven to be very hard, but it is free, hence it guarantees a profit for the people who are willing to sell their assets afterwards. This is a process in which users are required to record the aforementioned blocks. Mining is how Bitcoin manages to stay self-sustainable and how it is controlled by all of its users, rather than from one centre.
Trading Sites
Trading sites are the platforms where the magic of selling Bitcoins happens. Not only that but reputable sites such as bitcoinoptimizer.org uses advanced AI systems which collect data from the market about Bitcoin and use it to predict its future price. These reports are then handed to traders and they can use them to generate the highest profit as they will know when is the best time to sell their assets.
Bitcoin is a highly volatile cryptocurrency, meaning that its price changes daily. Knowing this type of information is very valuable for the traders and it is considered to be a powerful tool.
Satoshi
There are two definitions of the term Satoshi. First of all, Satoshi is known as the creator of Bitcoin. The funny thing about this individual is that, to this day, no one knows his true identity. Satoshi Nakamoto (the full name) is just a pseudonym used by this individual. We don’t even know if the person is male or female. Age and nationality also remain a mystery.
The second definition of Satoshi is a unit that is smaller than 1 Bitcoin. 1 Satoshi equals 1/100,000,000 Bitcoins.
Cryptology
Cryptology is the main reason why Bitcoin provides its users with greater security and a certain level of online anonymity. This method uses codes for communication. Through these codes, all types of information are transferred between the serves. The codes mask the true meaning of certain data and make it impossible for unwanted parties to breach it.
While on the security topic, it is worth mentioning that Bitcoin has never been hacked.
E-Wallets
E-wallets are the storage units for your Bitcoins. They can only be accessed by private keys, which are the passcodes. There are tons of e-wallets on the market and they have various pros and cons. Every one of them is suitable for different types of traders – novice and experienced, simple or complicated to use, etc. If you are a new trader and you are in search of good wallets, here’s a list of some of the best e-wallets for 2021.
