Technology is progressing by leaps and bounds. It is introducing new terms and systems for business and communications on a daily basis. Internet has made a large contribution in this advancement; especially when it comes to the field of business. Online trading or online currency trade has recently attracted many traders. One of the common forms on online trading is BTC Exchange.
What is BTC?
BTC exchange is a new system of money for the internet that works on the concept of digital currency. It initializes the peer to peer payment system for individuals having no central authority. A new concept of crypto currency is used that was initially introduced in 1998. Cryptography controls the creation and transactions of digital money. BTC works through a software system and does not have any central controlling authority so it is equally managed and controlled by its users around the globe.
Working of BTC Exchange
One can work with BTC exchange just like it works with any other kind of currency exchange. Just like working with banks, it is easy to make transactions through BTC Exchange. Analogous to physical trade, the user has to pay to purchase Bitcoins. The difference is that the person has to open an account with some BTC Exchanger. The paid asset of the user will be available in the form of digital currency that can be used to purchase any kind of product. Bitcoins can be exchanged with other BTC holders too. This system works similar to the money exchanges in the banks.
Almost in all payment systems, the payments can be reversed after making a transaction through PayPal or credit cards. But with BTC, the situation is changed, as after making a transaction, one cannot get it back or reverse it. So be careful while exchanging your bitcoins with currency mediums because you may face chargeback issues. It is preferable to make exchanges with other BTC holders near to you.
Benefits of BTC Exchange
BTC currency exchange is quite new. It’s a sort of software base payment system where you make transactions digitally. Here is how it can benefit you:
· Make transactions quicker than other systems
· Always availability for transactions
· Make transactions from anywhere in the world
· Make safer transactions
· Perform transactions without interference of any third party
· Monitor all transactions from home PC or from Smartphone
· Purchase any kind of asset using BTC
Drawbacks of BTC
BTC exchange is an innovation in economical systems of the world. When practically used, some drawbacks come forward too. Some of them are as follows:
Ø Acceptance in market
The number of BTC users is growing but still it is not a widely used currency or exchange system. Its level of acceptance in financial matters is still low.
As BTC is not commonly used, it is not a stable currency. However, there is a hope that this instability will reduce as the user list and amount of bitcoins in the market become more readily used.
Ø Partial development
A big problem is that the BTC software is still in its beta phase and there are a number of imperfect features, which still need to be fixed. New modules are under process of development to make BTC exchange safer for all.