Bitcoin is a cryptocurrency invented in 2009 by a person named Satoshi Nakamoto. It’s decentralized and no single institution or person can control Bitcoin or print Bitcoins. In a sense there is no way to stop bitcoin since it doesn’t have a CEO or a figurehead. The amount of Bitcoins is limited to 21 million and it’s described also as a virtual currency and a digital currency that can be used to spend on multiple products and services.
How Bitcoin works
Bitcoin is stored on a digital wallet with a computer file powered by an open-source code known as Blockchain. Each transaction is public and it’s registered on the public list blockhain transactions. Bitcoin contains public and private keys to allow the user to provide proof of authorization and digitally sign the transaction payment. And this allows the Bitcoin wallets to analyze the transaction and each transaction is usually confirmed within 10-30 minutes.
How Bitcoins are generated?
New Bitcoins are generated and created each day through mining. Bitcoin mining is a process of decentralized computational of confirming the transaction with enough computational power devoted to a block. And thus it creates new bitcoins in each block with each new block being added to the local blockhain and produced to the network. Mining is a mechanism used to introduce Bitcoins into the blockhain system and miners are paid in transaction fees.
How to get Bitcoins?
You can get Bitcoin in different ways but below we will show the most common ways to get Bitcoins:
Bitcoin can be bought on an exchange website with the option to pay for them in various ways of payment methods, such as Cash, Credit and Debit Cards, bank wire transfers, other cryptocurrencies, PayPal, Skrill, Neteller and more. There are hundreds of cryptocurrency exchange websites to buy bitcoins online and some of the most popular bitcoin exchange platforms are Coinbase, Bitstamp, Kraken, Poloniex, and more. Most of these exchange websites accept multiple payment methods with various fees and availability depending on the location where you live. They have trading systems built in their platforms allowing its clients to trade more than 50 cryptocurrencies online.
Selling and Services
Another way to get bitcoins is to sell your products online and receive payments on Bitcoins. With multiple payment processors as Stripe, BitPay, you can offer your products on sale and receive the payments directly in your bitcoin wallet. The service offering is another opportunity to get bitcoins by offering different work service for others. Services as Web Development, Writing, Freelancing and more, allowing you to receive Bitcoins and withdraw them directly to your Bitcoin wallet.
With mining, you can earn Bitcoins from your home with cloud mining and hardware mining. We explain up further what is mining and we will explain to you what is Cloud and Hardware mining. With Cloud Mining as Genesis, Hashflare you can rent remote datacenters online and start mining Bitcoins online directly from your home. It doesn’t require physical hardware to start ming but it requires some intermediate advance on the cloud systems. Hardware mining is done by specialized high-end computers and by solving computational problems and rewarded with new Bitcoin and transaction fees.
Before owning any Bitcoins today you need to store them and that place is “wallet”. Wallets allow you to store and hodl Bitcoins on Digital wallets or Hardware wallets by giving you a bitcoin address for receiving and sending payments. Software wallets are equipped with private and public keys, designed to make Bitcoin more accessible and convenient. It’s safer to use and easier to send and receive payment with low transaction fees and giving you the privacy of payment transactions. We also have our top 10 crypto wallets recommendation on this site if you needed help to choose.
A digital wallet is a software program allowing you to store your Bitcoins online. With a private key allowing you to receive payment in your Bitcoin address online. Digital wallets are supported for multiple devices like Desktop, Mobile, Web, and more. You can create a wallet online on some of the most popular wallets online such as Coinbase, Blockchain, and more. Most of the online wallet platforms don’t require ID Verification to start using them. And they also offer the option to buy Bitcoins in their wallets with Credit Card and PayPal.
These type of wallets store your Bitcoins on a physical device or hardware and are the safest way to store your Bitcoins. Hardware wallets are encrypted with a backup system and less exposed to the virus. It also prevents spyware attacks, and a low percentage of your Bitcoins being stolen.
However, if your hardware wallet gets lost or stolen you can move your Bitcoins in a new hardware wallet by writing your recovery phrase with 12,18 or 24-word recovery phrases. There are many hardware wallet brands that allow you to store Bitcoin in a hardware wallet and keep your Bitcoin safe with some of the most popular hardware wallets such as the Ledger Nano, Trezor.
Why Bitcoin is popular?
Bitcoin is one of the most popular cryptocurrency online that is available for payment on multiple websites for different services. It offers you anonymous identity without giving your pieces of information online and you don’t need to own them physically such as coins. It’s more secure to use with no tracks and it’s supported and available for use on multiple devices as Phone, Laptops, Computers, Tablets and more. Bitcoin allows people to send and receive payments from their family, friends, and other people from multiple countries. And more people are using it, Businesses are treating Bitcoin as a “currency” and allowing to make payments with Bitcoin for their own products and services.
Bitcoin mining is becoming more profitable and it’s rapidly increasing the popularity of Bitcoin and other cryptocurrencies in general. Another reason why bitcoin is popular is the cryptocurrency booming and new cryptocurrencies launched every day. Forex Traders are trading Bitcoin in platforms such as MetaTrader 4, MetaTrader 5, etc. In general, trading is becoming more popular for Bitcoin and other cryptocurrencies. Multiple trading platforms have introduced Bitcoin and other cryptocurrencies such as Ethereum, Ripple into their own platforms allowing you to fund your account with Bitcoin to start trading and withdraw funds on your Bitcoin wallet. If you enjoyed this article we would suggest reading our Bitcoin halving article for 2020.
Images via Shutterstock, Writer Behar H.