Bitcoin “BTC” is released in 2009. It is the very first type of asset named cryptocurrency. Bitcoin is a decentralized type of digital cash that removes the demand for standard middlemen like governments, banks, and financial institutions to create financial transactions.
How does Bitcoin work?
Bitcoin “BTC” is released in 2009, It is the very first type of asset named cryptocurrency. Each Bitcoin is simply a computer file stored in a software or hardware wallet. To fully understand how Bitcoin works, you should know the following terms and definitions:
Blockchain: Bitcoin is actually powered through an open-source code called blockchain, which creates a shared public ledger. Each transaction is a “block” that is actually chained to the code, generating a permanent record of each transaction. Blockchain technology is used in more than 5000 cryptocurrencies that have followed in Bitcoin’s wake.
Private and public keys: A Bitcoin wallet consists of a public key and a private key, which work with each other to allow the owner to initiate and digitally sign transactions by providing proof of authorization.
Bitcoin Miners: Miners or participants of the peer-to-peer system are responsible for confirming the transactions using high-speed computers or Antminers in a process called Bitcoin mining, usually within a few minutes miners are paid in Bitcoin for confirming the transactions.
Bitcoin value follows the law of supply and demand, which means there’s a lot of volatility in the Bitcoin and other cryptocurrencies’ prices.
How to store Bitcoin?
Bitcoin can be stored in two types of digital wallets:
Software wallets: A software wallet or hot wallet allows you to store your digital currencies in the cloud on a trusted provider or exchange, and access them via a web browser, desktop, or smartphone application.
Hardware wallets: A hardware wallet or cold wallet is an encrypted portable device much like a thumb drive that allows you to safely access your Bitcoins and other cryptocurrencies.
Basically, a software wallet is connected to the internet while a hardware wallet is not, which makes it the most secure way to send, receive and store your Bitcoins and other cryptocurrencies.
Where can I buy Bitcoin?
You can buy Bitcoin using any of the following methods:
Cryptocurrency exchanges: There are two kinds of exchanges to trade Bitcoin and other cryptocurrencies, Centralized exchanges, and Decentralized exchanges. Some of these exchanges are in the US and others are in Europe and Asia. Cryptocurrency exchanges are the most popular way to buy, sell, and trade Bitcoin and other coins.
Peer-to-peer purchases: You can buy Bitcoin directly from other cryptocurrencies owners through peer-to-peer tools like LocalBitcoins.com
Bitcoin ATM: There are thousands of Bitcoin ATMs around the world that allows you to directly buy Bitcoin and other digital currencies, but they charge a bit high fees.
Coinatmradar helps you to know if you have a Bitcoin ATM in your area.
For more information, check out the following article:
How to buy Bitcoin?
What is Bitcoin mining?
You can earn Bitcoin and Altcoins through cryptocurrency mining. There are two types of mining, Hardware mining, and Cloud mining. However, technical experience is a must if you chose hardware mining, unlike cloud mining where the company takes care of the setup, the system, the maintenance, and everything.
For more information, check out the following article:
What is Bitcoin mining?
