So you’ve been hearing alot about Bitcoins lately and chances are that you know a thing or two (if not everything about it). Just incase you’re new on the whole concept and wish to have a basic knowledge on what the deal is about, this is where you need to be.
What is a Bitcoin?
So bitcoin is simply a kind of cryptocurrency, whats that? It’s digital currency, money but in a very refined and new form. You dont store it in your wallet, rather it’s digitally written into the BlockChain (more on this later) and also stored in your digital wallet. Like any other currency, you can buy it and then buy stuff from it.
How does it work?
Well bitcoins are basically written down in to the BlockChain which is a public ledger that records where all the bitcoins around the world are located i.e., who owns them. Every transaction is verified from the blockchain and hence it takes a very long time to verify payments. Moreover, since every transaction is verified, the risk of fraud and stealing is virtually non-existent since the blockchain is a public ledger and everything is very transparent.
How can I own bitcoins?
Currently, a bitcoin costs about 16000 USD, however you do not need 16000 USD to own bitcoins, you can simply pay any amount and you’ll get the equivalent amount of bitcoins for it. You can simply trade bitcoins for USD, Euros or for any other cryptocurrency ie. Eutherem, Litecoin, Iota etc.
Where do I store them?
As stated above, Bitcoins are stored inside a digital wallet that you can simply download from GitHub.com, for free. The wallet has an 81 character password called a Seed which serves as your username and password and it is basically the only thing between you and your bitcoins. You loose your seed and there’s absolutely no bank or customer service you can call to recover your coins.
Does it make sense to buy things using Bitcoin?
There’s a number of places worldwide that have started accepting payments in Bitcoins but transactions take a lot of time upto the point that the practicality of paying using bitcoins may be considered unreasonable.
Should I be trading bitcoins?
It’s not rocket science, but we all know how trading isn’t everyones thing. It’s not like you cant do it but if you’re up for it then dont just dive in. Always be sure to be very well informed about whatever you plan to do and you’re not only limited to bitcoins, there’s a whole world of cryptocurrencies that you can trade in.