What Are Bitcoins And How Do They Work?

Crypto assets are means of payment with the main feature of decentralization. Digital assets are not stored on one single server that can be broken or hacked. Simply put, crypto assets are completely independent and neither government nor banks can affect them. Such independence is achieved due to the underlying principle of cryptocurrencies, blockchain. That is a data registry stored on thousands of computers all over the world. 

What Are Bitcoins

Bitcoin is the first world’s crypto with the biggest liquidity and volume. Now the BTC daily trading volume reaches $24 billion, and the Bitcoins price is $20. The market shows a downward trend, however, being the most popular crypto, Bitcoin still remains in the leading position. Read this Binance review to learn more

The asset is traded on all popular platforms, we recommend using official exchanges such as:

  • Binance
  • White BIT
  • Coinbase
  • Huobi
  • Kuna

BTC USDT is one of the most often traded pairs.


What Does Bitcoins Price Depend On?

If the number of people willing to sell the asset is higher than the number of those who want to buy, the rate drops. And vice versa. This is clear to most people, who are not savvy in cryptocurrencies. Let’s look at the BTC price from a technical point of view. 

What is blockchain is transferred between wallets, a section of data confirmed by a unique signature is transferred, which, in turn, is collected into blocks. Each transaction is unique and there are no two identical. The information stored in the section is mostly data about previous transactions, encrypted in a special code (hash). Blocks are connected into chains, which are necessary both for verifying the execution of the payment and for the physical implementation of special transaction parameters. Simply put, each new transaction stores data on all previous payments from the blockchain. So we answered the question “How do Bitcoins work?”.


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