Bitcoin

Know your coins! The original and most famous cryptocurrency - what is it and what are the market prices telling us about the future of this coin?

In short

Bitcoin is the first and most famous cryptocurrency. It enables P2P exchange of value without a middle man. It's a digital form of money controlled by no governments.

What is Bitcoin - A brief summary

Bitcoin is a peer-to-peer digital currency. Unlike government issued currencies, there is no single entity that is in charge, or processes transactions. Before Bitcoin, it was not possible to make electronic payments without using a third party, such as a bank or payment processor. This meant that payments would often be slow, expensive and inaccessible to everyone. Bitcoin provides a solution to these problems, by operating without a trusted third party. Instead, it works as a purely peer-to-peer electronic currency, meaning that payments can be sent directly from one person to another.

How Does it work?

Simply put, specialised computers all over the world, known as ‘mining rigs’, use mathematical functions to independently verify all bitcoin transactions that are then added to a public, permanent, list of transactions, called the blockchain. The blockchain is stored on all of the participating computers and works as a secure universal record of who owns what.

(source: www.aatcomment.org.uk)

Why Bitcoin can be used as 'Real Money'

Worldwide - Bitcoin can be sent to anyone, anywhere across the world (as long as they have an internet connection).

Private - You don’t need to provide any personal information when using Bitcoin. Transactions only contain amounts, wallet addresses and transaction hash’s.

Security - Due to the cryptographic nature of blockchain, transactions using Bitcoin are inherently more secure than traditional methods. None of your personal information is being sent over the internet and therefore there is a minimised risk of fraud.

Transparent - The software that constitutes the core of Bitcoin is free and open-source so anyone can review the code. Additionally, as all transactions are stored on the blockchain, every transaction can be viewed publicly.

Safety - In over 10 years of existence, the Bitcoin network has never been successfully hacked.

“Experience in former markets indicates that just as they are too high in bull markets, they get too low in bear markets.”

Benjamin Graham

Should I buy this coin?

No one can say for sure, and this is not financial advice, but our market analyst has given us the following outlook on the worlds largest cryptocurrency...

Technical Analysis - July 2022 - Buy / Sell?

"The trend is downward, but slowing."

The Bitcoin chart tells us a story of decreasing weakness - the momentum of the downtrend could be running out of steam as the price stays at the key level of $20k. If we fail to create a lower low here, and the important support level holds - we could see a recovery at least to the top of the bearish channel.

Daily Chart - completed H&S reversal but RSI shows the capitulation is losing steam at $20k barrier

Short term Bull case

4H BTCUSD - support holds at 20k and we break out the downward triangle and out of the channel

In the short term if this level holds and we see buyers returning, perhaps the geopolitical issues stabilising slightly, then a run back up to the psychologically significant level of $30k would be swift as there is little resistance.

Geopolitical issues including inflation, leading to tightening monetary policy continues to plague stock markets globally, with BTC hit as hard as tech stocks as people move their money to 'safer bets'. We see the same downward channel present in the US stock markets as we do in BTCUSD.

How to Buy / Sell BTC

It's easy to buy or sell BTC on Scallop exchange. Simply visit https://www.scallop.exchange/en_US/

If you need to sign up please read our guide here

1. Go to Trade > Classic

Trade > Classic will take you to the trading window

2. Search for BTC in the search box on the right window

3. Select 'Market order' and simply enter the amount you'd like to buy

Click Market to buy immediately rather than placing an order

Simply add the amount you'd like to buy in USDT

It's that simple. These are scary times in world markets, in many ways it is a good time to invest and in many ways a bad time to invest. Please remember to never invest more than you can afford to lose and that past price is no indicator of future performance.

“I've found that when the market's going down and you buy funds wisely, at some point in the future you will be happy.”Peter Lynch

Learn more about the exchange here