Bitcoin has recently managed to reach yet another historical achievement. In mid-March, this cryptocurrency broke the $60,000 barrier in value. Not only that, but experts believe that it will continue to rise and it will most likely reach its peak around October or November of 2021.
The chance to make a profit, as well as the numerous advantages that Bitcoin has as a payment method, are the reasons why so many people join the network with each passing day. But, new traders have tons of questions concerning Bitcoin and how the network actually works.
That is exactly the topic that we wanted to discuss in this article. We are going to take a look at some of the most frequently asked questions about this cryptocurrency and thus, provide you with all the information that you need. Without any further ado, let’s dive into the details.
Is Bitcoin Profitable?
Bitcoin is extremely profitable. As we mentioned above, the current market value of this cryptocurrency exceeds $60,000. Not only that, but experts believe that Bitcoin will continue to rise in the following period and maybe go as high as $100,000. But, one thing that you should take into consideration is that trading with Bitcoin and making a profit requires a lot of skill and knowledge as well.
When is The Best Time To Sell Bitcoins?
This is one of the most frequently asked questions about Bitcoin. Bitcoin has a very high volatility rate. That means that its price goes up and down each day. Hence, many traders are always questioning themselves when is the best time to sell them.
While traders may not be able to predict Bitcoin’s future fluctuations, trading sites such as Bitcoin code app can. They use advanced AI systems that collect all the data about Bitcoin from the market. Then, the data is analyzed and the results are shared with the traders. Hence, trading sites are the key to knowing when is the best time to sell Bitcoins.
How Can I Earn Bitcoins?
There are essentially two ways to earn Bitcoins. The first one is buying them at trading sites like the one mentioned above and the second is mining them. Mining is a very complicated process, but it is the most commonly chosen due to the fact that it is completely free.
In layman’s terms, mining involves recording Bitcoin transactions. Not only do you help the network be stable, but you also earn rewards. Via mining, you solve various complex puzzles. The reward for each puzzle is Bitcoins.
Who Created Bitcoin?
Bitcoin’s creator is one of the biggest mysteries concerning this cryptocurrency and the only question on this list that we cannot answer. The only thing that we know about him is the fact that this individual goes by the pseudonym Satoshi Nakamoto. Accurate data about the person’s gender, age, or nationality remain unknown.
What Are Halving Events?
Finally, halvings are events that take place approximately every 4 years. Their purpose is to control the flow of Bitcoins that are released in the network. During these events, it becomes very difficult to mine Bitcoins, hence the circulation is drastically reduced.
So far, we witnessed 3 halving events take place. The first one was in 2012, then another in 2016, and the last one was in May 2020. One common thing that all of these events have is that they always lead to surges in Bitcoin’s value.
Not only that, but research showed that the spikes happen exactly one and a half year after halving events end. That is the reason why it is believed that Bitcoin will continue to rise, even though its current value is $60,000.