What Is Bitcoin and How Does It Work?
Bitcoin was created in 2009 by an individual or group using the pseudonym Satoshi Nakamoto. It is a decentralized digital currency based on blockchain technology, not issued by a central bank or government, but rather maintained through a globally distributed network of nodes that collectively uphold transaction records. Its core value derives from three main attributes: a fixed total supply (only 21 million coins), anti-inflation characteristics, and high efficiency in peer-to-peer cross-border transactions.
In the Bitcoin ecosystem, exchanges are the core hub connecting users with the cryptocurrency market. Gate, as a leading global trading platform, not only provides Bitcoin trading services but also builds a complete ecosystem covering wealth management, liquidity mining, and Web3 entry, becoming the starting point for millions of users to explore the crypto world.
The Core Value and Uses of Bitcoin
- Currency Attribute Innovation: Bitcoin achieves decentralized accounting through blockchain technology, allowing users to conduct peer-to-peer transfers directly without the need for a banking intermediary. Its transaction records are open, transparent, and immutable, supporting global instant circulation, making it particularly suitable for cross-border payments (with fees lower than traditional banks).
- Digital Gold Positioning: Due to its fixed supply, Bitcoin is widely regarded as “digital gold,” serving as a value storage tool against fiat currency inflation. In economically unstable regions (such as high-inflation countries), users often use it as a medium for wealth preservation.
- High-quality speculative targets: Bitcoin price Highly volatile (historical increase over ten thousand times), attracting a large number of investors. On platforms like Gate, users can participate in the market through spot trading, contract derivatives, or structured financial products to capture price fluctuation gains.
Core Features and Gameplay of Gate Platform
Basic Bitcoin Trading
- Getting Started: Register a Gate account → Complete KYC verification → Deposit fiat or cryptocurrency → Search BTC/USDT Select trading pairs → Place limit/market orders.
- Fee advantages: Gate VIP users enjoy significant discounts, for example, the taker fee rate for VIP12 level is only 0.02% (for regular users it is 0.2%), institutional users can save over $150,000 in fees with a monthly trading volume of $500 million.
High-Yield Wealth Management Awakens “Sleeping Assets”
Gate has launched tiered wealth management products for different user levels, especially attracting high net worth holders with low-frequency trading (these “static whales” control 68% of the cryptocurrency market’s market value):
| VIP Level | annualized yield | Lock-up period |
|---|---|---|
| 0 - 4 | 2% | 7 days |
| 5 - 7 | 2.8% | 7 days |
| 8 - 11 | 3.2% | 7 days |
| 12 - 14 | 4% | 7 days |
The product supports automatic reinvestment, with principal and interest credited within 1 hour upon maturity, ensuring safety backed by the platform’s 123.09% reserve ratio (reaching 10.453 billion USD by June 2025).
Advanced Play: Liquidity Mining and Web3 Expansion
- Liquidity Mining: Provide liquidity for trading pairs such as BTC/USDT to earn transaction fee rewards. Be aware of impermanent loss risk (the asset value may decrease due to price volatility). Web3 Ecosystem: Participate in Bitcoin staking activities through the Gate Web3 wallet and share the BTC prize pool.
Beginner’s Guide in Three Steps
- Security Preparation: Enable Two-Factor Authentication (2FA), use a hardware wallet to store large amounts of BTC, and distinguish between spot account and investment account permissions.
- Fund Efficiency Optimization: Activate the Gate Unified Account feature to break the fund isolation between spot and contract accounts, achieve margin sharing, and enhance fund utilization.
- From Small Trials to Advanced Strategies: Start with regular investment in BTC, gradually try VIP investment or liquidity mining, and use GT (GateToken) to obtain transaction fee discounts and new coin sub_script_ion rights.
Security Tips and Future Outlook
The anonymity and irreversible transaction characteristics of Bitcoin require users to be vigilant against phishing attacks, while centralized platforms like Gate need to balance efficiency with risks (such as reserve transparency). With the approval of Bitcoin spot ETFs in the United States and the entry of institutions, compliance and product innovation will become the focal points of competition among exchanges—while Gate’s exploration of the demand for “static whales” and its layout of Web3 entry (Gate Alpha) have already given it a first-mover advantage in the ecosystem.
