Everyone's talking about Bitcoin and other cryptocurrencies these days. You might have heard that this new technology could revolutionize the financial sector. You might have also heard you could get rich by trading Bitcoin.
While you may be able to make money trading this digital currency, it's not without risk. You need to know what you're doing before you threaten your hard-earned cash, which can be challenging since the concept itself can be hard to get your head around.
What Is Bitcoin?
An online persona whose identity remains unknown created a new digital currency called Bitcoin in 2009. You can use the currency to buy things online if a vendor or individual accepts it. The transaction doesn't require any middlemen such as banks. It's also confidential. A record of transactions does exist, but it doesn't include user identities.
Much of the talk surrounding Bitcoin has to do with trading it, like stocks, to make money. In 2017, its value soared into the thousands. Following Bitcoin's success, other digital assets emerged, although Bitcoin remains the most popular and widely accepted. Bitcoin and these other digital currencies are known as cryptocurrencies.
Intrigued? No one would blame you. Still a bit confused? That's understandable too. The new app known as Bitcoin Hero could be just what you need.
Enter Bitcoin Hero
Bitcoin Hero is a cryptocurrency trading simulator that comes in desktop and mobile-app form. You don't actually buy any real cryptocurrency on it, so there's no risk. But you can practice with simulated trading to learn the ropes before moving on to the real thing. Bitcoin isn't the only cryptocurrency you can trade on the app. It also has other popular digital currencies Ethereum, Litecoin and Dash.
Bitcoin Hero is free and it's also designed to be easy for beginners to learn. It uses real cryptocurrency prices and provides enough functionality -- such as the ability to change the bet and leverage -- that you can start to learn how real trading works. It's also made to be fun and features a leaderboard that creates a little friendly competition.
If you're new to cryptocurrencies, you've probably mostly heard about Bitcoin and not much about other options. Bitcoin Hero gets you familiar with other cryptocurrencies so you can at least look into them further before you move into real financial investment.
Once you feel you've mastered the simulation, the site provides you with links to learn more about buying real Bitcoin and links to Bitcoin exchanges. Another pro about the system is that if you don't have the money to invest in Bitcoin or other cryptocurrencies right away but think you might in the future, you'll be able to practice and think about the concept while you save the money you're willing to spend.
One major drawback to Bitcoin Hero is that it doesn't operate exactly as real trading does. It seems to be a bit easier than actual trading, which may give some users unwarranted confidence.
This flaw is understandable since creating a simulation that behaves in exactly the same way as the real market would be immensely challenging. Just be conscious of the fact while you use the app.
You should also keep in mind that no simulation can faithfully replicate the risks that come with making the kind of investment you'd be making with the real thing.
The considerable risks add a completely different dimension to Bitcoin trading that you can't get a real grip on without experience that involves actual money.
Another disadvantage some users have cited is that you can't make the leap from the simulation to trading real cryptocurrencies within the game.
While it does offer information about trading, you have to leave the site to actually buy Bitcoin. Depending on what your reasons are for wanting to learn more about cryptocurrency trading, you might want something with a closer link to the real process.
Remember that while Bitcoin Hero is a great way to learn how to trade cryptocurrencies, it's not perfect. You should still use caution if you move to real trading.