How is Bitcoin traded?

How is Bitcoin traded?

How is Bitcoin traded? Bitcoin as a currency, like the rest of the known regular currencies, despite its hypothetical and decentralization, it can be paid in exchange for obtaining various goods and services from sellers who accept them as a commodity according to its exchange rate in the market.

When a person (A) wants to transfer the number of Let it be 2 Bitcoin to person (B), then this means that Person (A) for his ownership of Bitcoin to Person (B), meaning that the process will take place from address (A) to address (B) and every address in them It has a private encryption key, and only the owner of the key has the authority to approve and certify the transfer.

Here comes the role of Block Chain and the network host devices - that is, the devices that perform the mining process - which verify the signature of Switch A, his previous transactions history, the sufficiency of his balance for the transfer, and ensure that the process is done for one party only to prevent duplication of the transaction and this is what protects the transactions from Deception or fraud.

Advantages of dealing with Bitcoin

1. Bookmark and transparency

All transactions, transactions, and production of Bitcoin are recorded in the public record displayed and viewed by all participants in the formation of the main block chain network so that every new hash that is produced is produced by reviewing the hash that precedes it.

Thus, the hashes produced are a miniature copy of the block's encryption root code, and this preserves the credibility and legality of all blocks, and any change or manipulation that everyone will know about is rejected by the network during the verification process.

2. Full confidentiality

Any user can create an account and a Bitcoin wallet without linking them to names, addresses, or personal data, and the operations recorded in the records do not contain any data of the source or recipient, as they are a complete record of transaction details only.

3. The transaction cannot be returned

Once the transaction or transfer has been completed, it is not returned or as happens with credit cards Refund, the recipient must make a new transfer process and verify it again as it is a new transaction and this increases the credibility of the transactions and closes the door as to any possible manipulations.

4. Low transfer fee

One of the most important features of the spending or transfer process is the low and speedy transfer fees. You should know that paying transfer or transaction fees is optional. Miners choose transactions after processing them and prioritize paying fees and their value based on the number of operations and the number of inputs used to create the transaction.