BITCOIN

 

What is Bitcoin?

Bitcoin is the first and the most widespread among the so-called cryptocurrencies. A new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. It is a “value” agreed between parties based on the law of supply/demand. It is money, that can be used to make purchases, but it is not a currency: there is not (at least now) a metal, plastic or paper object on which a symbol is imprinted or printed (as in the case of dollar $ for dollars or € for euros). Bitcoin can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. But much of the hype is about getting rich by trading it. The price of bitcoin skyrocketed into the thousands in 2018.

why bitcoin?

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, expecting that they’ll go up in value.

acquiring Bitcoins

Where can I buy Bitcoin and other cryptocurrencies? Bitcoin can be bought on exchanges, or directly from other people via marketplaces. You can pay for them in a variety of ways, ranging from hard cash to credit and debit cards to wire transfers, or even with other cryptocurrencies, depending on who you are buying them from and where you live.

The easiest way to buy cryptocurrencies is to rely on a digital wallet service, such as Luno, Coinbase, Kraken or many others. Almost all services of this type offer a mobile app that makes managing your account much easier and more direct. With your own wallet, after an identity verification process, you can send, receive and store Bitcoin and other cryptocurrencies.

The Bitcoins available in the wallet can be sent to any other user, use for payments, or store as an investment. A more advanced solution is the so-called hardware wallet, which is not connected to the internet and offers a high level of protection.

Bitcoins can also be obtained by mining, People compete to “mine” bitcoins using computers to solve complex math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 12.5 bitcoins roughly every 10 minutes. but the process has become too expensive for the common user. Most of today’s mining is done by big companies that use specialized hardware with which even the best of home computers could never compete.

steps

1 – set up a wallet

The first step is – you will need to set up a wallet in order to store your bitcoin. This could be an online wallet ( part of an exchange platform, or via an independent provider) a desktop wallet, a mobile wallet or an offline one (such as a hardware device or a paper wallet). There is a wide variety of services to choose your wallet from, so do some research before deciding on which one best suits your needs. Once you have created a wallet, its very important to keep your keys and passwords safe. If you lose them, you lose access to the bitcoin stored there.

2 – open an account at an exchange

Cryptocurrency exchanges buy and sell bitcoin on your behalf. There are hundreds currently operating, with varying degrees of liquidity and security, and new ones continue to emerge while others end up closing down. As with wallets, it is recommended to do some research before choosing one. The largest bitcoin exchange in the world at the moment in terms of US$ volume is Bitfinex, although it is mainly aimed at spot traders. Other high-volume exchanges are Coinbase, Bitstamp and Poloniex, but for small amounts, most reputable exchanges should work well. For account setup, many exchanges now require verified identification. This will usually include a photo of your official ID, and also a proof of address. Because the clampdown on know-your-client (KYC) and anti-money-laundering (AML) regulation. Most exchanges accept payment via bank transfer or credit card, Paypal transfers. And most exchanges charge fees which generally include the fees for using the bitcoin network.

Each exchange has a different procedure for both setup and transaction and should give you sufficient information to execute the purchase of Bitcoin and other cryptocurrencies. Once the exchange has received payment, it will purchase the corresponding amount of bitcoin on your behalf, and deposit them in your wallet on the exchange. If you wish (recommended), you can then move the funds to your off-exchange wallet.

 BUYING WITH CASH

2 – choose a purchase method

Platforms such as LocalBitcoins will help you to find individuals near you who want to exchange bitcoin for cash. Also, LibertyX lists retail outlets across the United States at which you can exchange cash for bitcoin. And WallofCoins, Paxful and BitQuick will direct you to a bank branch near you where you can buy bitcoins with cash. Also from ATMs you can will send bitcoin to your wallet in exchange for cash. Coinatmradar can help you to find a bitcoin ATM near you.

Can I change my Bitcoins in real money?

Yes. Bitcoins can be exchanged for traditional currency (and vice versa) in almost every country in the world. The easiest way to do this is to use one of the many platforms that facilitate Bitcoin and other encryption transactions.

Most of the wallet providers offer the possibility to exchange Bitcoin, Litecoin and other encryption directly from the application. The money that ends up in the traditional currency account can then be transferred by bank transfer to any current account.

bitcoin’s anonymity

Anonymity