Well, most of the readers would be aware of currencies like Dollar, Pound, Rupee, Euro or Yen. But all these currencies are physical, and some of you might have them in your wallet right now and would also have traded them to buy things around the world. But there are also some currencies which you can’t even touch or see and is only stored electronically on your mobile, laptop or any host. One of them is Bitcoin. Unlike the physical currencies which are controlled by individual governments and banks. This guide will help you to know more about Bitcoin, its existence and how to use and trade.
To make transactions transparent, cut interest fees and eliminate the corruption, this decentralized organic system came into existence since 2008. Till now, it has reached incredible heights in such a short time. It has created a secure and trusted environment where the users can trade globally and make transactions using 16 character addresses which are mathematically secured so that nobody except the owner of the speech can transfer the funds that belonged to it. The entire Bitcoin network relies on the BlockChain, which is nothing but a shared public ledger. Whenever a transaction is confirmed, these get included in the chain for future reference and to maintain transparency. Every Bitcoin wallet contains a private key or seed which is used to sign the transactions, thus providing a mathematical proof that they have come from the owner of the portfolio. It also prevents alteration by anybody during the operations. Crypto Superstar is best Bitcoin transaction software.
A transaction is usually confirmed within 10-20 minutes once it is broadcasted on the network, and this process is termed as Mining. This is the primary advantage of using this technology which allows the transfer of funds in a few minutes instead of many days which gets wasted in any overseas trade. The Presence of chronological order in a blockchain protects the neutrality of the system and allows different computers to agree on the state of the system. The presence of such strict rules prevents previous blocks from being modified as that would invalidate all the subsequent blocks. Here are some features of Bitcoin technology-
- Irreversibility of the transactions. Fast and global
- Secure
- Permissionless
How to buy Bitcoin?
In this section, you will learn the advantages and disadvantages of the different payment methods when buying bitcoins. It may surprise you, but one of the determining factors regarding how much you are going to pay for your bitcoins will be the payment method you choose. And there is an excellent reason for this.
Buy Bitcoin with credit and debit cards
As I mentioned, some exchanges allow you to buy bitcoins with a credit or debit card.
And in most cases, it will cost a higher price. On the other hand, the verification process is only once. Also, the waiting time to receive your bitcoins will probably be short while they verify you. It is not difficult to buy Bitcoin using credit card. It is just a few steps process.
Buy Bitcoin with currency:
One can buy Bitcoin by normal currency. It is like to do simple shopping which we do from the online store. There are many online sites which offer such type of option for buying Bitcoin.
The Final Word
To start trading in Bitcoin, you first have to install wallet software onto your computer which will create your address. This will allow you to send, receive, and transfer Bitcoins. For purchasing Bitcoin, the user can deposit money into an online exchange that connects Bitcoin buyers and sellers. You can then place your order for Bitcoin as soon as the exchange accepts your currency. Buying is straightforward and similar to the way you buy a Stock.
Bitcoin, over the past few years, has shown significant growth and proved to be a revolutionary in providing a secure payment system. The key behind its operation is just mathematics which has allowed two entities to trade directly without relying on other intermediaries. Well, this is just the beginning. Its revolution still has a lot of miles to go.