It’s only natural that as the popularity of Bitcoin grows, so does the number of questions surrounding it.
How do you use it? Where can you buy it? How can you store it? How do you sell it? And what about security – is this new form of currency safe and secure?
This beginner’s guide to Bitcoin will answer all these questions and more, helping you learn how to start your own Bitcoin wallet, how to buy bitcoin instantly, sell them safely once you have some, and much more.
Follow these steps and get ready to embark on your journey into the future of currency.
What is bitcoin?
Bitcoin is a decentralized virtual currency. This means a central authority does not control it and has no physical representation like coins or bills.
It exists only on computers worldwide that are part of its peer-to-peer network, what’s often called the blockchain.
While you can use bitcoin without understanding how it works (sort of like using a debit card), understanding some technical details about how it works may help you get more out of using bitcoin as a spending tool in your business.
You can also explore alternate uses for bitcoin, such as building new businesses around its technology.
How does bitcoin work?
When they first hear about bitcoin, many people have a hard time understanding how it works.
I think a lot of that has to do with new technology (blockchain) and because bitcoin was initially used as a currency for black markets.
In reality, bitcoin is just software. It’s built on top of something called blockchain technology, which might be confusing at first glance, but what that means is that it functions similarly to peer-to-peer software like BitTorrent -rather than being run by a company like eBay or PayPal.
Suppose you want more detail on how blockchain works and why it’s important. In that case, there are many other articles you can find online that will explain it better than I can here in one sentence.
Why should I use bitcoin?
Cryptocurrency is on everyone’s mind these days, and for a good reason. It’s a way of saving money, avoiding hefty fees, and having more control over your finances.
But how do you get started with bitcoin? Where can you use it, and what should you know? These are just some of the things you need to know before using or investing in bitcoin.
If all of that sounds confusing, don’t worry. You aren’t alone. In fact, even as it becomes easier than ever before to use bitcoin (if you know where to look), there are still plenty of misconceptions out there about what exactly it is and why we should care.
After reading our handy guide, we hope that at least some of those questions will be answered.
Bitcoins are a digital currency that you can send or receive on any computer in the world. They work like cash, and as long as you keep your private key secure, there’s no limit to how much money you can make.
Because bitcoins exist only in digital form, they cannot be lost or stolen if your computer or smartphone is stolen or if it gets damaged by a virus (though these situations may still result in some losses).
The coins are basically held in an encrypted wallet-some company provide online storage for wallets.
In contrast, others require you to keep it on your computer. Bitcoins are also highly divisible: each unit is called a satoshi, with 100 million satoshis equaling one bitcoin.