Technology is advancing by leaps and bounds. New terms and systems are introduced for business and communications every day. Internet has made a great contribution in this advance; especially when it comes to the business field. Online trading or online currency trading has recently attracted many traders. One of the common forms of online trading is Bitcoin Exchange.
What is Bitcoin?
The Bitcoin exchange is a new money system for the internet that works on the concept of digital currency. Initialize the peer to peer payment system for individuals who have no central authority. A new concept of cryptocurrency is used which was initially introduced in 1998. Cryptography controls the creation and transactions of digital money. Bitcoin works through a software system and has no central control authority so it is equally managed and controlled by its users around the globe.
The work of Bitcoin Exchange
You can work with the Bitcoin exchange as you work with any other type of currency exchange. Just like working with banks, it is easy to make transactions through Bitcoin Exchange. Analogous to physical trading, the user has to pay to buy Bitcoins. The difference is that the person has to open an account with some Bitcoin Exchanger. The paid asset of the user will be available in the form of digital currency that can be used to buy any kind of product. Bitcoins can also be exchanged with other bitcoin holders. This system works similar to money exchanges in banks.
In almost all payment systems, payments can be reversed after making a transaction through PayPal or credit cards. But with Bitcoin, the situation has changed, as after making a transaction, it cannot be found or reversed. So be careful while exchanging your bitcoins with other currencies because you may face chargeback issues. It is preferable to make exchanges with other bitcoin holders near you.
Benefits of Bitcoin Exchange
Bitcoin currency exchange is fairly new. It is a kind of software based payment system where you make digital transactions. Here’s how it can benefit you:
· Make transactions faster than other systems
· Always available for transactions
· Make transactions from anywhere in the world
· Make transactions safer
· Perform transactions without interference from any third party
· Monitor all transactions from your home PC or Smartphone
· Buy any type of asset using bitcoin
Disadvantages of Bitcoin
The Bitcoin exchange is an innovation in the economic systems of the world. When it is practically used, some disadvantages also come. Some of them are the following:
Ø Acceptance in the market
The number of bitcoin users is growing, but it is still not a widely used currency or exchange system. Their level of acceptance in financial matters is still low.
Since Bitcoin is not commonly used, it is not a stable currency. However, there is hope that this instability will reduce as the list of users and the amount of bitcoins in the market become more easily used.
Ø Partial development
A big problem is that the Bitcoin software is still in its beta phase and there are a number of imperfect functions, which still need to be solved. New modules are in the process of development to make bitcoin exchange safer for everyone.