The rise of the cryptocurrencies began slowly and steadily in 2009 when the Bitcoin was released. This is the first cyber-currency to be decentralized. It caused a furor for a couple of reasons:
- Its blockchain technology was something that could change the world;
- It offered a peer-to-peer payment system decreasing service fees to zero;
- It could store value making it an asset worth of the attention of investors.
Ever since then, things in the online trading industry have undergone a dramatic change. Even though the rise in interest was slow at first, at the current moment the Bitcoin is one of the most sought-after assets known. Some have even tried to find out how to get free Bitcoins.
Global markets and exchanges have featured not just Bitcoin but other cryptocurrencies as well in their investment portfolios. Special exchanges have been established to answer the demand for a trading environment exclusive for crypto assets. All because a single virtual coin showed an immeasurable potential.
Did You Know?
The biggest mystery surround Bitcoin still remains who created it. The name Satoshi Nakamoto was accepted as the creator of the currency. But it is still unknown whether this is a real person, a pseudonym, or a group of people. What at first was a reason for people to doubt the authenticity of this new asset and its network, today further fuels the attractiveness of the Bitcoin.
Why Do You Need a Bitcoin Account?
Becoming an owner of units of this most desired cryptocurrencies can happen in a couple of ways. Which one you will choose depends entirely on your preferences and abilities, ease of access and ambitions. Here are the two ways in which you can acquire them:
- Cryptocurrency Mining – the process of mining involves the solving of complex mathematical problems through a software and hardware computational infrastructure. As a part of the cryptocurrency community, you can get the chance to participate in the verification processes of transactions. This happens as you solve math problems that lead to the creation of a block from the chain. When a block is created through the verification of transactions, participants in the process receive, as a reward, units of Bitcoins or fractions of units. Tech whizz-kids and enthusiasts choose this way because they can afford to build the required infrastructure. Unfortunately, this is a pricey endeavor and common people don’t always have the chance to participate.
- Cryptocurrency Buying – this is how most people acquire Bitcoin or fractions of a unit. For the purpose, they have to go on an established and verified cryptocurrency exchange. There, most crypto assets are either sold against fiat money or Altcoins and Bitcoin. Usually, you can buy Bitcoin against fiat money like Euro or Dollars, and then use it to buy Altcoins. You can also go on an exchange and sell your crypto assets for profit. Some people participate in the so-called Arbitrage trading. It involves opening a Bitcoin account on various exchanges. They buy assets on one exchange and sell it on another if there is a slight difference in the quotes.
In both cases, you need a Bitcoin account and a wallet where you can store your units. These are critical conditions for you to keep your investments safe and secure. But there are some details going on about that as well. You should also remember that the Bitcoin is not the only cryptocurrency out there that is worthy of your attention. If you follow Altcoin news, you probably know there are very promising competitors like Ethereum, Litecoin, and Ripple that can help you expand your investment portfolio.
Bitcoin Login With a Hot Wallet & Cold Storage
When it comes to storing your cryptocurrency units, you have to options before you. Most choose both because of the essential difference between them. In fact, it is quite unconventional to have one without the other. The key characteristics you can differentiate them by is whether they are connected to the Internet or are completely offline. Here are the two types of storages:
- Hot Wallet – this type of storage is connected to the Internet. This is, in fact, a virtual address on which you can store your tokens. You can set it up on a legitimate and authentic network and store there the assets you intend on using. Hot wallets are usually free to open and provide a quick access to your cryptocurrencies, including from mobile devices. All you need is to correctly execute your Bitcoin login into your account and you are ready to use your asset in whatever way you like.
- Cold Storage – this is the type of storage that is not connected to the web. It requires a special hardware device for you to have in order to establish a cold storage. In terms of fiat money, the cold storage would be the bank vault you store your funds in, while the hot wallet is the actual wallet you can walk around and directly use your funds from. Probably, the only disadvantage of a cold storage is the fact that most accept to store a very limited number of cryptocurrencies, the most popular ones.
Either way, since transactions of cryptocurrencies are carried out over the blockchain, you need to keep in mind two more very important things – the Public and the Private Keys. The Private Keys are visible only to the owners of the wallets. They are used when you want to send cryptocurrencies from your wallet to someone else.
Never share your private key with anyone! If someone comes into possession of your private key, they will be able to draw all the cryptocurrencies from your wallet and send them to themselves. Steal them, in other words. You should also always back up your private key. If you don’t and you lose it, you won’t be able to access your wallet and spend your capital.
Public Keys are mathematically derived from private ones and through hash functions are transformed into the address where you can receive tokens. Public keys and your wallet’s address are not one and the same but they are strongly related.
Hassle-Free Trading Without Such Accounts
If you find creating a Bitcoin account and sticking to the Bitcoin login and transaction procedures too rigid and complex, there is one other way to participate in the industry without them. You can still trade them and invest in them, just through a financial derivative known as a CFD. CFDs are contracts for differences, they allow you to invest in the change of price of a given asset.
Nowadays, the biggest exchanges and platform allowing investments in CFDs, support cryptocurrency assets as well. You can easily trade them under this derivative. There are even innovations in the field of automation technology that can carry out all investment processes on full autopilot.
This type of trading and investments in cryptocurrencies can spare you the need to open a Bitcoin account on the blockchain and worrying about public and private keys. It allows for a new approach to the cryptocurrency industry and offers an easy access to people with limited resources, knowledge, and experience. All in all a hassle-free endeavor that has attracted numerous people and global traders.
Find the BEST Crypto Tool
Investment solutions get released every day. But that does not mean each is good for your trading ambitions. You need secure and proven to work platforms if you want good returns on your investments. We have found the best among the best and we strongly recommend them. Visit the industry leader if you are eager to start trading.
To start making investments, do the following:
1. Go to the Official Website of the Platform
2. Complete the Sign-up Process
3. Start Trading