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Everything you need to know about bitcoins

There’s a lot to cover here, but we have you covered.

Image: Unsplash

Bitcoin is a virtual currency that emerged in 2009, in times of the global financial crisis. The main difference between Bitcoins and other forms of money is that there is no financial institution that regulates and intermediates transactions, which are carried out from user to user. There are those who say that the trend is that their use to buy products is progressively intensifying, which means a good opportunity for entrepreneurs.

Bitcoins can also be considered cryptocurrencies, those whose operations are protected with crypto. To buy them, it is necessary to have a virtual portfolio, which can be created, without costs, in applications, the web or in a computer program. From there, the virtual currency is acquired from other users or from an exchange office that performs this type of operation – called an exchange.

What is the exact meaning of cryptocurrencies?

Cryptocurrency calls are a novel system of payment and transfer of values on the internet, which works using a decentralized network. They are virtual currencies with which any payment, purchase or sale operation can be made, without there being a central financial entity that issues or controls them. 

Advantages of Bitcoin and other cryptocurrencies

Cryptocurrencies, unlike traditional currencies or online payment systems (such as PayPal), do not depend on banks and other financial companies that manage the monitoring of all transactions. In all cases the payment is made directly without intermediaries, this makes them fast or almost instantaneous.

They can also be managed and used anonymously without the need for identification, no one can ban or censor valid transactions, and also governments have no way to set tax policies on operations. Payments and transfers of securities are safe since breaking the existing security in a cryptocurrency is almost impossible in practice.

All these reasons make them very attractive and make these virtual currencies increasingly popular and sought after. Currently, many services, companies, and businesses accept cryptocurrencies as a form of payment, being called by some as the currency of the future. All cryptocurrencies differ in several ways; they can be obtained and used in different ways. 

digital bitcoin image
Image: Blockchain Global

How Bitcoin payments work

Bitcoin, like other cryptocurrencies, uses crypto as a means of control, which is to hide and protect the information using sophisticated mathematical techniques. It uses an open-source system, which works through a P2P or peer-to-peer network, to which thousands of computers around the world, known as the Bitcoin Network, connect. Although transactions are made directly between users, they are verified at different nodes, to ensure their validity.

How to use Bitcoin, requirements

To obtain, change or use Bitcoins we need software that allows us to manage our money and carry out all operations, called “client program”. This program can be a native application (it is installed on the computer or cell phone) or web applications that are started when clicking on a browser link and do not require installation.

Of all these clients, the safest and most reliable are those that are installed on the computer. With them we have full control of our keys, which are encrypted and never leave our PC. They also allow us to carry out operations offline, avoiding the possible theft of our personal data. In addition to the above, there are the so-called Hardware wallets, which are devices that allow acceptable security. They are expensive.

5 ways to get and earn Bitcoins

Many wonder how to earn Bitcoins, there are several ways to do it, but below you will the simplest.

1- Exchanging money for Bitcoins: As in the real world, there are online currency exchange houses, where you can exchange any traditional currency (Dollars or Euros) for bitcoins. Some examples are Coinbase, Bitfinex, Bitstamp, PaxFull, Localbitcoins, and others.

2- On internet pages: Some platforms offer bitcoins in exchange for seeing advertising and clicking on ads, others solving catches.  The payment in both cases is low, in millibitcoins (mBTC) or satochis (μBTC), but it is accessible to anyone.

3- Buying and selling bitcoins: Participating in the stock market of the currency, which exploits price fluctuations. You can buy or sell Bitcoin on CFD trader website.

It is vital you take your time to understand the market and what platforms are beginner-friendly. If you are unsure of where to begin, you can always consult experts in this field. Another great platform to consider using is BlockFi. This app is easy to use, and it can help you buy, sell and earn cryptocurrency conveniently. It is also available worldwide, where investors can withdraw their assets at any point.

Many other apps in the market can help you buy and sell bitcoins quickly. But this will be possible if you take your time to learn and understand the basics. You need to understand demand and supply, whereby if demand is high, the coins will have great value and vice versa. You also need to know how to mine for bitcoins, as this can be a tricky concept to grasp. Lastly, learn all the different coins available. If you do all these, you will be able to buy and sell bitcoins conveniently.

4- Mining Bitcoins: In the same way that in ancient time’s traditional miners searched for gold, today with the resources of the computer, bitcoins can be obtained. This way is known as mining Bitcoins.

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