What is Bitcoin?

Bitcoin is a digital currency, also known as a cryptocurrency, due to the fact that it uses cryptography to secure transactions within its infrastructure. This infrastructure is an online database or so-called blockchain technology.

Bitcoin has offered alternative payment methods at lower fees and commissions and higher speeds. But perhaps the biggest advantage of Bitcoin payments is the extremely high level of security.

Bitcoin’s financial history dates back to 2010, although it was created in 2009. The creator of Bitcoin is considered to be a person (or group of people) with the pseudonym Satoshi Nakamoto, who presented his invention on October 31, 2008 in a document called Bitcoin: Electronic user-to-user cache system.

There are no physical Bitcoins, only balances that are kept in a public book to which everyone has transparent access. This way all Bitcoin transactions can be verified. Here we must note that behind the largest cryptocurrency does not sit, not a single bank or government.

The abbreviation of the largest cryptocurrency Bitcoin is simply BTC. The same principles apply to the formation of this abbreviation as for other currencies: USD (US dollar) and EUR (euro). BTC can form currency pairs with traditional currencies or cryptocurrencies.

For example, the ratio between Bitcoin and the US dollar is depicted as BTC / USD, and contracts for the difference on this pair are denoted by BTC / USD CFD.

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