We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now


It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

Here Is Every Important Factor You Need To Know About Bitcoin

Share On Facebook
share on Linkedin

To understand Bitcoin, we need to understand what it is and what Cryptocurrency is. But again, to understand these things, we need to get down to the list of terms used in Cryptocurrency. Or else the whole thing would be as good as alien to us. But first, let us understand what Bitcoin and Cryptocurrency are.


What Is Cryptocurrency?

Cryptocurrency, when explained very simply, is a form of money that is digitally exchanged and handled. It is free of any central force regulating its every transaction and exchange. They are run on the principle of Blockchain technology and peer-to-peer functioning. It has open-source software. And everyone who wants to participate in this form of money exchange actively can participate. No rule or regulation binds anyone to it or forces anyone against it.


Bitcoin is internationally famous and is known to be the first Cryptocurrency. It is a leader of some sort among the 5,000 other existing cryptocurrencies. Nowadays, Bitcoin is the most trending topic for investors, and every sort of media is eager to cover it up voraciously. Bitcoin coverage is simply inescapable.

It is one Cryptocurrency that is handled only digitally. It is a decentralized form of money with no central authority governing every transaction and the people who transact. It requires neither a bank nor any head regulator. But to get to the basics of Bitcoin, you need to understand the glossary of terms to make it easier to comprehend the whole thing.

There are certain apps like The News Spy from where you can safely make your transactions or even buy Bitcoins.

The Glossary of Bitcoin Related Terms

The few base terms involved in Cryptocurrency or Bitcoin are as below:

  • Encryption – When you encrypt data, you are hiding the data from public view. It becomes a secret then. But to access that data, you need to have a password or code that will immediately let you in on the data.
  • Cryptocurrency – Cryptocurrency is as good as the traditional form of money that goes around in every country of the world, but it is country-specific. Here Cryptocurrency is a common form of digital money that is the same throughout the world.
  • Wallet – A wallet is where digital money is stored in, sent from and received.
  • Blockchain is as good as the ledger that you know exists in a bank. But unlike the bank ledger, it is public and decentralized for all users to see. A whole group of people here need to authenticate the ledger, unlike the bank ledger.
  • Nodes can be likened to the person who maintains the bank ledgers. They are responsible for preserving and circulating the copies of transactions that have been updated, and even a new block added to the ledger must be updated.
  • Private Key – It is a series of any arbitrary digits needed to complete the transaction and a wallet. It essentially has to be kept a secret, unlike the address.
  • Bid Price – It is that price that is quoted for someone to sell out an asset.
  • Ask Price – The purchase price of the asset.


A Few Basic Constituents Of Bitcoin

Bitcoin has four basic constituents that are:

  • Software – At the core of everything, Bitcoin ultimately rules how it should be used and passed on. Everything about Bitcoin is this software that specifically is the bitcoin program. It is available 24×7.
  • Cryptography – Bitcoin and cryptography are entangled with one another. Without encryption, there would have been no digital transfer of money, and hence Bitcoin would have been invalidated. It is simple mathematics that is calculated using machines instead of humans.
  • Hardware – Much hardware is required to run and solve cryptography, and it is the CPU power that helps the software to run. This hardware is different from the hardware of normal home or commercial computers.
  • Miners – Miners are those people who participate in the game of Bitcoin.



So now armed with the basic list of terms used in Bitcoin, you might be able to participate in the game, but of course, after treading with much caution. Here the alarm bell is sounded because Bitcoin is very volatile, and you may stand to lose money if its value falls.


CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

Support: 1-888-992-3836 |