Recently, there has been an increase in the number of investors who are interested in investing their money in Bitcoins. It is a digital cryptocurrency that was invented by Satoshi Nakamoto. Today, there are several platforms that offer exchange facilities for such currencies. If you are planning to trade Bitcoins, consider knowing the Impacts of Bitcoin on Poverty and Development.
In order to get maximum profits from investment, it is always recommended to use Bitcoin Exchange platforms that have features and functions like multi-signature authentication services, quick processing time and 24×7 support via live chat or email etc. These platforms also provide the facility of converting them into real cash in hand with lower transaction fees.
Features and Functions of Bitcoin Exchange Platforms
Cryptocurrencies are a recent phenomenon, with Bitcoin being the first to achieve international fame as a digital currency that can be used for settlement transactions, following the anonymity created with bitcoins at the beginning of 2009.
- A suitable alternative to fiat currencies
If you are not yet familiar with Bitcoin Exchange Platforms, here’s a quick summary of how they work: The basic principle behind them is mining, which involves computers that calculate complex algorithms to be rewarded with Bitcoins and record every transaction on a public ledger called blockchain.
In case you have heard about Bitcoins but do not know what it is exactly and what it does, please note that it can be seen as an alternative to fiat currencies. One of its most prominent features is complete anonymity.
- An ideal financing option
As a payment system, Bitcoin exchange platforms like Bitpay have great potential. With how quickly it has grown in popularity, it isn’t hard to imagine merchants seeking to integrate it as an alternative payment option, or companies such as MasterCard and Visa preparing to release their own versions of a digital currency.
Whatever its use case ends up being, one thing is certain: since its inception nine years ago in 2009, Bitcoin has been growing steadily from strength to strength, successfully overcoming a series of major challenges along its way. While some people doubt whether cryptocurrency will ever be widely accepted or used in regular commerce—see Jamie Dimon of JPMorgan calling Bitcoin a fraud—this is likely just short-sighted skepticism rather than an actual rejection of cryptocurrencies as a whole.
- Peer-to-peer payment system
In order to use Bitcoins, all you need is a digital wallet. The system lets you transfer money to anyone who also has a Bitcoin account, with fees being lower than those on conventional payment systems. A P2P payment system – it has no central authority, like PayPal or Visa and transactions take place directly between users.
No intermediary to hold your funds – so long as an Internet connection is available users can transfer money anywhere in the world instantly and for free. This means that there are no banks acting as intermediaries; money is held only by their respective owners until such time that they choose to send it elsewhere.
The transaction itself can be expensive both in terms of time and money: On average, 78 minutes are required to confirm a transaction (though this can be significantly longer) and $28 is required to execute the transaction.
Bitcoin may fulfill this medium of exchange, because an increasing number of merchants accept Bitcoins as payments. While Bitcoin is usable for making payments, it is limited in use today as a payment instrument, and does not exhibit the core characteristics of money.
- Investment asset
The value of Bitcoin is highly volatile, the number of payments currently processed is very small, governance issues exist, the transaction costs involved in making a bitcoin payment are very high, and estimates of electricity used during mining the coins are alarming.
And yet, some owners purchase Bitcoins as investments, hoping that bitcoins will rise in value, and individuals and businesses use it, or accept payments as a form of money.
Conclusion
So, these were some helpful points you needed to know about the features and functionality of Bitcoin exchange platforms. If you are new to Bitcoin trading, the aforementioned points will be of immense help to you.
