₿ Bitcoin Tutorial for Starters -How to Trade Bitcoin? 

Created in 2008 by Satoshi Nakamoto, Bitcoin is the first and most widely used digital currency in the world. You can trade Bitcoin through a ETF or buy it directly from a Bitcoin exchange (details provided at the end).

But first, here is some basic information about the Bitcoin currency.

• Limited Supply: The total number of Bitcoins is capped at 21 million, introducing built-in scarcity similar to gold.
• Decentralization: Bitcoin operates without a central authority, supported by a distributed network of computers (known as "nodes") around the world.
• Pseudonymity: Bitcoin transactions are tied to encrypted wallet addresses rather than personal identities, offering a degree of privacy.
• Security: Transactions are protected through cryptographic methods and validated by miners using a proof-of-work system.
• Market Volatility: Bitcoin’s market price is highly volatile, which contributes to its reputation as a highly speculative investment.

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ℹ️ General Information About Bitcoin

What are the Benefits of Holding Bitcoin?

Bitcoin is an open-source, decentralized currency that allows internet users to shop online or send money globally. It doesn’t require a credit card or bank account and can be bought, stored, or sold entirely electronically.

Here are some of the advantages Bitcoin offers:

→ Not controlled by any Central bank

→ Limited to 21 Million Coins {with about 90% already mined}

→ No Need for a Banking Account

→ Cost-Effective way to Conduct Transactions (tight fees)

→ Wide Worldwide Acceptance

→ Secure and Partially Anonymous Transactions Through the Bitcoin Blockchain

→ Direct Payments via a Mobile Phone

How Do Cryptocurrencies Work in General?

An electronic coin is a chain of digital signatures. Each owner transfers the coin by digitally signing a hash of the previous transaction along with the public key of the next owner, and attaching this to the coin. The recipient can verify the signatures to confirm the chain of ownership.

How Does Bitcoin Work?

Bitcoin operates on a peer-to-peer payment network. Unlike traditional payment systems, it is not controlled by any government or organization. Because it's peer-to-peer, no third parties are needed. All transactions are made through Bitcoin software, which any internet user can download and use.

🔗 More: You can download it here: » https://bitcoin.org/en/download

The Bitcoin Blockchain

The Bitcoin revolution is based on every PC running Bitcoin software holding a copy of the universal Bitcoin public ledger, called the Bitcoin Blockchain. Users can buy or sell Bitcoin from various sources and store it in a digital wallet secured by strong encryption. The Blockchain records every Bitcoin transaction through a public process called Bitcoin Mining.

The 20 Top Cryptocurrencies Worldwide

Today, there are numerous different blockchains and cryptocurrencies. Here are the 20 largest cryptocurrencies by market capitalization worldwide:

🔗 More: » https://coinmarketcap.com/currencies/views/all/

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🌐 Bitcoin International Legal Status

This is Bitcoin’s legal status worldwide (note that these statuses can change at any time):

✅ Countries Allowing the Use of Bitcoin

□ Countries allowing Bitcoin include: 

• US, United Kingdom, China (with restrictions), Russia (with restrictions), India, Japan, Hong Kong, Indonesia, The Netherlands, Sweden, Ukraine, Slovenia, Denmark, Greece, Estonia, Belgium, Lithuania, Israel, New Zealand, Lebanon, Jordan, Thailand, and Malaysia.

❌ Countries Forbidding the Use of Bitcoin

□ Countries banning Bitcoin transactions include:

• Egypt, Algeria, Bangladesh, Nepal, Afghanistan, Morocco, Bolivia, Iraq, and Qatar

🌍 Other Countries

□ European Union: The European Union allows the use of Bitcoin, but also released a statement discouraging European financial institutions from using cryptocurrencies.

□ United States: Bitcoin is fully accepted in the US, but some US states are friendlier towards the use of Bitcoin (like California) than others.

□ Australia: Australia treats Bitcoin both as a good and an asset, and that depends on the transaction situation.

□ France: France does not fully recognize Bitcoin as a currency, but it considers money made from Bitcoin subject to taxation.

□ Germany: Germany is treating Bitcoin as private money and imposes a capital tax. This tax gets higher if bitcoin is held for less than 1 year.

□ Canada: Canada allows the use of Bitcoin, but has also stated that it will tax Bitcoin in the future.

□ Brazil: Brazil imposes a 15% tax on all cryptocurrency transactions above USD 16,000.

□ Cyprus: Cyprus is one of the most Bitcoin-friendly countries in the world.

□ Bulgaria: The National Revenue Agency (NRA) imposes a 10% tax on all digital currency transactions.

□ Finland: Finland sees Bitcoin as a commodity and imposes capital gains taxes on Bitcoin and mining.

□ Singapore: Bitcoin is treated as a financial asset and not as a currency. Like an asset (good) will be subject to VAT taxation. Bitcoin will not be taxed as an investment asset, as Singapore does not impose a capital gains taxation policy.

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📚 Bitcoin Basic Glossary

These are the basic Bitcoin terms:

₿ Bitcoin -Bitcoin is an open-source currency invented in 2008-2009 by Satoshi Nakamoto.

₿ Bitcoin Blockchain -The Bitcoin Blockchain is a universal public ledger that holds a copy of all Bitcoin transactions.

₿ Bitcoin Mining -Bitcoin Mining is a computer process that tracks and stores every Bitcoin transaction publicly.

₿ Blockchain.info -A live online service showing real-time Bitcoin transactions and statistics.

₿ BTC -BTC is the currency code for 1 Bitcoin, equal to 100 million Satoshis.

₿ Satoshi -Satoshi is the smallest unit in Bitcoin, where 1 Bitcoin equals 100,000,000 Satoshis.

₿ Bitcoin Exchange -Online markets where you can buy and sell Bitcoin (see below).

₿ Robocoin ATM -Robocoin is the first Bitcoin ATM, installed in 2013 in Vancouver, Canada. It works like a bank ATM and includes features like an ID scanner.

₿ Bitcoin Wallet -Software used to store Bitcoin electronically.

₿ Private Key -A private key is a password in a Bitcoin wallet that allows signing transactions. Without it, no transaction can be made. Your private key must be kept secret.

₿ Public Key -A public key is a cryptographic code used to receive Bitcoin. You can share it freely, unlike the private key.

₿ Key Pool -Key pools are Bitcoin wallet apps that create and keep unused private keys for future use.

₿ PSP (Payment Service Provider) -A PSP company lets Bitcoin holders use different online payment methods.

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⛓️ Bitcoin Halving

Bitcoin halving is a scheduled event that happens approximately every four years (or every 210,000 blocks), where the reward miners receive for validating new blocks is reduced by half. This slows down the creation of new Bitcoin, increasing scarcity, which has historically sparked significant price rallies.

• The total Bitcoin supply is limited to 21 million coins, with about 90% already mined
• Miner rewards are cut in half (for example, from 6.25 BTC to 3.125 BTC in 2024)
• Scarcity often leads to heightened price volatility; previous halvings have been followed by price increases of over 1,000%, though this is not guaranteed

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🔀 Alternative Ways to Trade Bitcoin

🏛️ Trading Bitcoin ETFs

You can trade Bitcoin by purchasing and then selling ETFs through traditional brokerage accounts. By buying shares of exchange-traded funds (ETFs) or exchange-traded notes (ETNs) that mirror Bitcoin’s price, you gain exposure to Bitcoin without having to own the actual cryptocurrency.

₿ Spot Bitcoin ETFs: These funds directly hold Bitcoin, so their value closely tracks the market price of Bitcoin. They are available in countries like the U.S. and Canada, but not in the European Union due to UCITS diversification rules. European investors typically use ETNs to access Bitcoin instead.

₿ Bitcoin Futures ETFs: Instead of holding Bitcoin itself, these ETFs invest in derivatives such as futures contracts. This can lead to tracking errors and often involves higher fees.

Custody: Many Bitcoin ETFs, including IBIT and ARKB, use third-party custodians like Coinbase to safeguard the Bitcoin holdings. This arrangement carries some risk, particularly if the custodian faces financial difficulties.

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💼 Trading MicroStrategy's Shares

To gain exposure to Bitcoin’s price, you can also trade MicroStrategy’s shares. The company uses Bitcoin as a treasury reserve asset, acting as a leveraged proxy for investors looking for Bitcoin exposure.

• MicroStrategy, a business intelligence software firm, has grown to become the largest corporate Bitcoin holder globally, accumulating more than 226,000 BTC—valued at approximately $13.5 billion as of July 2025.

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📈 Trading Bitcoin Online via a Crypto Exchange

The first thing you need to open an account with a Bitcoin Exchange:

(1) Open an Account with an Exchange and verify it

(2) Transfer some funds into your Bitcoin account (Bank wire, Cards, Internet Wallets, etc)

(3) Go to the Buy/Sell web page, and buy your Bitcoin

(4) Once you have purchased some bitcoin, you can withdraw it to your PC or send it to someone else.

🔗 More: » Compare Bitcoin Exchanges

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■ Bitcoin Trading

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Warning: Please Be Careful with Your Money

When sending funds to an exchange or other counterparty you are trusting that the operator will not abscond with your bitcoin and that the operator maintains secure systems that protect against internal or external theft. It is recommended that you obtain the real-world identity of the operator and ensure that sufficient recourse is available. Exchanging or storing significant funds with exchanges is not recommended.