Bitcoin (BTC)

Bitcoin is the world’s leading cryptocurrency and also one of the first digital currencies that was ever launched. The cryptocurrency was first launched in 2009 and has since experienced many ups and downs. However, lately Bitcoin has been on a steady incline. During the last two years, the value of Bitcoin has skyrocketed to unprecedented levels.

Today, Bitcoin is worth an impressive several thousand dollars per coin. In fact, Bitcoin has managed to do what no other asset has ever done before. You see, a few years ago Bitcoin was something only a small exclusive group of hackers and internet enthusiasts used. Today, on the other hand, this digital currency can be used to buy everything from everyday products to homes and luxury cars such as Tesla and Lamborghinis.

In our opinion, Bitcoin is one of our time’s most interesting investment opportunities, especially when it comes to day trading. Personally, we have a huge interest in Bitcoin which is why we decided to write this page. Here we will explain everything you need to know about this world-leading cryptocurrency – how to trade with it, where to buy it, how it gets its value, etc.

We will start by explaining Bitcoin’s historical development before moving on to discussing more about the Bitcoin exchange rate. Additionally, we’ll offer you tips on how to best invest in Bitcoin. The safest way to buy bitcoin today is with IQ Option.

Buy Bitcoin at IQ Option

Find the best trading platform. You capital is at risk when trading. Be careful.

Bitcoin’s Initial Struggle and Further Development

Most people assume that Bitcoin was the first digital currency, but that is not entirely true. When Bitcoin was launched in 2009, there were already two digital currencies on the market and the concept for Bitcoin was based on those two currencies. However, Bitcoin was the first digital currency to gain the attention of the world and the first to ever be semi-recognized internationally. We say “semi” because Bitcoin still isn’t accepted or even recognized as a currency in several countries.

Bitcoin was released on January 3rd, 2009 by a developer with the online username Satoshi Nakamoto, which is most likely a pseudonym. Because of this, no one knows who actually created Bitcoin, but that goes hand in hand with the very nature of digital currencies – the initial concept of cryptocurrencies was to create anonymous methods of payment. Therefore, it makes sense that no one knows who launched Bitcoin.

All Bitcoin transactions are done anonymously through a peer-to-peer system over the internet. A P2P system means that no banks or other authorities are involved with controlling or regulating the price of Bitcoin or its transactions.

In the beginning, not many people believed in Bitcoin and very few even considered that it would become an international phenomenon that would inspire more digital currencies.

The issue was that cryptocurrencies used to have a reputation for being something hackers used and not a currency open to the public. However, after just a couple of years on the market Bitcoin had already gained popularity. It didn’t take long before Bitcoin began a rapid development that eventually led to it becoming the biggest digital currency ever. In fact, Bitcoin is leading the race with several thousand dollars compared to the second biggest cryptocurrency, Ethereum. Bitcoin has also, as we mentioned, inspired an array of other digital currencies that you can read more about here on

A couple of days before the currency was launched, Satoshi Nakamoto released a book called “The White Paper” regarding everything related to the currency. In the book, you can read all about Bitcoin’s existence, purpose, rules, and functions.

How Bitcoin and its Blockchain Works

Bitcoin is based on a digital system called a blockchain. The blockchain is Bitcoin’s backbone and its most important component. It is within the blockchain that all coins are created and where all transactions are saved for future reference.

Bitcoins are created in so-called blocks that are mined electronically by specially designed hardware whose only purpose is to mine Bitcoins. The word mining derives from mining precious metals for “regular” currencies.

The best way to describe Bitcoin’s blockchain is to compare it with a book where every block is a page. Imagine that every page (block) contains information about its coins and that the information is saved forever, even if a coin is used or gets lost. Every page also contains information that leads to the next page.

Just like in a normal chain every block is connected and every block acts as a support for the next block.

The total amount of Bitcoins that can be created is limited and every once in awhile the value of a block is cut in half. At first, the Bitcoin blocks contained 50 Bitcoins each, and after the first 210,000 blocks were created that value was cut to 25 Bitcoins per block. After another 210,000 blocks were created, the value was cut to 12.5 Bitcoins per block and so on.

In total, 21 million Bitcoins will be created and the last block is said to be mined in 2140. When that happens, the value of Bitcoin will switch from being based on demand to being based on transaction fees. More about that below.

Bitcoin’s Erratic Exchange Rate

Bitcoin shares many similarities with traditional currency exchange rates but at the same time Bitcoin is also completely different. The first major difference is that Bitcoin isn’t connected to and regulated by a central bank that develops and stabilizes the currency. Secondly, Bitcoin’s value is completely based on demand which means that the currency rises in value when the demand for it is high and drops in value when the demand is lower.

Traditional currencies work in a similar way where the demand can affect their values. For example, the American dollar would lose its value if everyone stopped using it. The difference, however, is that USD can be created even without a demand since it is the Federal Reserve that controls it. Bitcoins can not be created unless there is a demand for the digital currency.

The Bitcoin exchange rate is also notorious for being erratic and very volatile. In 2017 alone, Bitcoin gained and lost several thousand dollars (hundreds of percent), and it is expected to continue in a similar pattern.

Let us sum up Bitcoins value. The cryptocurrency’s value is based on blockchains containing coins being mined. If no one was mining Bitcoin, the currency would fail and collapse. However, we also mentioned that only a certain amount of blocks can be created, so what exactly happens with its value after that? When all the blocks have been mined, transaction fees will take over as the regulatory factor.

Bitcoin Transaction Fees and Their Purpose

Today, Bitcoin transaction fees are optional and it is up to everyone performing a transaction to decide whether or not to pay a fee. The advantage of paying a transaction fee is that the nodes, the component that creates the blocks, prioritize paid transactions making sure that they are completed quicker.

When all blocks and Bitcoins have been created in the year 2140, transaction fees will become mandatory. At this point, the Bitcoin exchange rate will also switch from being based on demand to being based on fees.

It’s important to note that after a Bitcoin has been created it can be lost and if a coin gets lost it can never be created again. Because of this, all coins that are lost when the transaction fees take over will help grow the demand for the currency, thus raising the value of the remaining coins.

Investing in Bitcoin: Is It Worth It?

We hope that you have a better understanding of how Bitcoins work because we will now move on to talking more about how you can invest in, trade with, and make money from Bitcoins. If you still want to learn more about Bitcoin we recommend that you read “The White Paper” that we mentioned earlier.

Bitcoin is an excellent investment opportunity that is good for both long-term strategies and day trading. From the day Bitcoin was created up until now, the currency has gained several thousand dollars in value. If you bought 1,000 Bitcoins in 2009 for a few hundred dollars, you would be a multi-millionaire today. We have never heard about any other assets with a return that high!

Also, Bitcoin fluctuates a lot on a daily basis making it better for shorter trades and day trading. As you might understand, an underlying asset that gains and loses several percents per day creates the perfect opportunity to trade in both bearish and bullish market conditions. In other words, Bitcoin is perfect for forex trading, CFDs, and other similar markets.

You have two options to choose between if you would like to invest your money in Bitcoin and they both have their sets of pros and cons. Your choice depends on what your strategy looks like and what kind of return you’re looking for. In our opinion, the best solution is to combine the two options so that you can get the best of two worlds.

We are talking about the following investment opportunities:

Buy Bitcoin Using e-Wallets

The traditional way of buying Bitcoin is by using an e-Wallet or Bitcoin wallet online. These services usually mine their own Bitcoins that they trade with customers from all over the world. After you’ve bought Bitcoins from an e-wallet such as Coinbase, you can either save them on your computer or online. Then it is up to you to decide on how long you want to keep your coins before either buying a product or service with them online or selling the coins to make a profit.

This investment method is best suited for long-term investments and people who are looking to use Bitcoins as a method of payment, as they were originally intended.

Buy Bitcoins With or a similar broker

If instead, you’re looking to make quick money from your Bitcoin investment, we recommend that you use an online broker such as or any of the recommended brokers that we’ve reviewed. There are several ways to invest in Bitcoin with a broker and depending on what broker you decide to use your options might vary. By using, you can buy and sell Bitcoins as a currency on the forex market. You can also invest in Bitcoin using CFDs on’s trading platform.

Remember that when you buy Bitcoins on the forex market or as a CFD, you don’t actually own the currency itself meaning you can’t use it as a currency to buy and sell products. Instead, you speculate on the value of Bitcoin making a profit from possible market movements.

Personally, we prefer using for our cryptocurrency investments because they have a solid selection of currencies combined with one of the best platforms and overall products in the industry.

Buying Bitcoin Internationally

Your choices for buying Bitcoins might be somewhat limited, or possibly more accessible, depending on where you live in the world. Some e-wallets and brokers only operate on certain markets and you need to check the availability before you create an account and deposit money. If you’re living in Europe, chances are that you can use most brokers and e-wallets that we mention and recommend here on BullMarketz. However, if you live in different parts of the world your options might be a bit limited. There is also a possibility that the country you live in offers unique and localized investment opportunities.

Sweden is a good example of a country offering a local investment opportunity for Bitcoin. As a Swedish citizen with a bank account in any of the major Swedish banks, you have the opportunity to invest in Bitcoin using Swish. Swish is a mobile payment method that was developed by Sweden’s banking system and offers quick and simple ways to buy Bitcoin.

Bitcoin Cash (BCH)

In late July 2017, Bitcoin users voted for a so-called hard fork of Bitcoin. The hard fork resulted in Bitcoin being split into two separate currencies: Bitcoin and Bitcoin cash. 97% of everyone who voted, voted yes for the fork and on August 1, 2017, Bitcoin was divided into two currencies.

Unfortunately, the fork was met with skepticism and Bitcoin cash never really gained momentum, on the other hand, Bitcoin literally exploded.

The main difference between Bitcoin (BTC) and Bitcoin cash (BCH) is that transactions conducted in BCH are processed quicker. The blocks are also bigger (8MB compared to 1MB), meaning they can contain more information than Bitcoin (BTC).

Do You Have To Pay Tax For Trading Bitcoin?

Tax on Bitcoin is a complicated subject that we will cover briefly. We see two main issues with this subject and we can’t give you any straight answers. The first being that we are not lawyers or accountants and therefore we can’t tell you exactly what the rules are. The second issue is that tax laws differ from country to country.

Therefore, it is ultimately your responsibility to make sure that you know the rules for the country you reside in. We recommend that you contact your local tax office to see what they say and what the rules are. You can also visit our country-specific versions of to see what information we share there.

With that said, most countries that we are familiar with have rules regarding trading and the profit you make from it so you should expect to pay some taxes, we just can’t tell you how much.

How To Use Bitcoin

Earlier we mentioned that all Bitcoin transactions are done between two users, but for these two parties to be able to keep Bitcoin they need Bitcoin wallets. Generally speaking, there are three different Bitcoin wallets:

A Bitcoin wallet could be a folder on your computer. This is the riskiest solution since you might lose all your Bitcoins if your hard drive crashes or something happens to the computer. Therefore, you should always keep several copies of all your Bitcoins.

Another popular solution is to keep Bitcoins with a company that hosts servers for Bitcoin and other cryptocurrencies. This solution is more practical since you don’t have to worry about safety, as long as you trust the company. Be aware that companies like this always have access to your Bitcoins.

The third version is called a hybrid and it is similar to the wallet above. The difference is that the company that runs a hybrid server never gets access to your Bitcoins. The issue is that all your Bitcoins are password protected and the password can’t be reset. That means that if you lose your password you also lose your Bitcoins.

Bitcoin can also be controlled through smartphones and tablets, and there are many different apps to use. Read more about how to buy Bitcoins here!

Trade with Bitcoins recently started offering possibilities to trade with Bitcoin and other digital currencies such as Ethereum and Litecoin. With an account with, you can trade digital currencies without the need for a virtual wallet. This type of trade also helps manage the risk and allows for short trades. Read more about how to trade with Bitcoins here!

Bitcoin Exchange Rates

Bitcoin is not a currency like other fiat or gold standard currencies. This means that Bitcoin’s value is measured in comparison with other currencies, usually USD.

We recommend that you use our Bitcoin price graph whenever you want to check the Bitcoin exchange rate. Our price graph also gives you information about Bitcoin’s price history.

When this article was written 1 Bitcoin sold for more than $4,000 which is the highest

valuation the digital currency has ever had. However, the currency is strongly volatile, and just a few weeks ago the price dropped to below $2,000. Read more about the Bitcoin price here!

Or click here to read more about the relationship between Bitcoin and the dollar – the most popular Bitcoin currency pair. As a matter of fact, BTC/USD is the single most converted currency pair for any digital currency.

You can also learn more about the the second most important cryptocurrency currency pair – Bitcoin and the euro. The rates for BTC/EUR are getting converted more often as digital currencies are gaining ground in Europe.

Selling Bitcoin

Most people don’t buy Bitcoin to replace their use of a “regular” currency but rather as a long term investment. We just mentioned how the value of Bitcoin has surged in the last few weeks and anyone who had the nerves not to sell has now more than doubled their investment. But what do you need to do to sell your Bitcoins?

The answer is simple: the same way you bought them. There are several international companies that both sell and buy Bitcoins to private people. So whenever you feel like selling or you start to lose interest, you should sell them back to the company you bought them from. Just make sure that you always check that the exchange rate is correct by using our Bitcoin converter. Also, note that many Bitcoin companies will charge you a fee when they buy your Bitcoins.

Bitcoin Calculator

A Bitcoin calculator is a feature that’s used to convert one currency to Bitcoin, or vice versa. It basically works just like a regular currency converter and is also called a Bitcoin converter or just a Bitcoin graph.

We offer one of the best Bitcoin calculators on the market. It is easy to use, has a slick design, and only offers the most accurate and updated prices. A Bitcoin calculator is an invaluable tool for anyone who buys, sells, and speculates on Bitcoins.

Bitcoin’s Potential Risks

The level of risk involved in using Bitcoin depends on who you ask, but most people split the risks into two groups: personal risks and currency risks.

Personal risks involve everything that could happen to the Bitcoins you personally own. They could, for example, be copied by someone else, you could get ripped off by the e-wallet provider, or you might forget your password and end up loosing all your Bitcoins.

Bitcoin also faces a few possibly disastrous risks on its own. The first being a devaluation where the value of Bitcoin plummets, and since there is no central bank to support it, the currency could stop existing in a matter of days.

Another risk for Bitcoin is a lack of interest and demand. Earlier we described how Bitcoin gets its total value based on demand. So if the demand disappears the currency will follow.

The last risk we want to mention is Bitcoin’s young age. The digital currency has only been around since 2009 and so far there are no international laws in place that regulate it. And even though unregulation is the purpose of the currency, central banks all over the world are scrambling to gain control over it. The biggest risk for Bitcoin would be new laws that enable governments to crack down on the mining process and e-wallet servers, which could potentially ruin the whole system.

Buying Bitcoin with IQ Option

One of our favorite ways of buying Bitcoin is by using our favorite broker IQ Option. In fact, we would argue and say that IQ Option offers one of the best and most solid purchase options for Bitcoin. But that is not all, IQ Option lets you invest in several cryptocurrencies and their selection of available digital assets is constantly growing.

Bitcoin Conclusion

Bitcoin is without a doubt the leading cryptocurrency on the market right now. Considering the fact that it’s worth several thousand dollars more than the second biggest digital currency Ethereum, we see no reason why the situation would change anytime soon.

As an investment opportunity, Bitcoin is very interesting and highly lucrative. Its nature is very volatile which means that it creates good opportunities to place investments with both long and short-term strategies. It is in other words perfect for both savings and day trading. is your go-to place for all questions regarding Bitcoin and other digital currencies. We offer detailed reviews of all the biggest available cryptocurrencies as well as the tools needed to trade digital currencies. In addition, we also offer the Bitcoin exchange rate in real time so that you can stay updated with the latest price movements.