Bitcoin is a word that
most people have heard, but may not fully understand. Though it may
seem complicated, the concept behind bitcoin is actually quite simple
and can be understood by anyone. The technology is growing in market
share and has become a popular way for people from all walks of life
to make a little extra money. Here are the main facts that any novice
bitcoin users should learn before deciding to make an investment in
What Exactly is a
Bitcoin and How Does it Work?
Bitcoin is a new form of
currency that is accessible to people all over the world via the
Internet. It first hit the market in 2009 and has grown in popularity
since that time, with people from many different countries choosing
to invest in it instead of other kinds of investments, like gold,
national currencies, property or stocks. Bitcoin can be a preferable
investment because it is not tied to any one country or political
party, can jump in value quickly, and is easy to sell when the user
no longer wants to own it.
is Bitcoin Different From Other Currencies?
Bitcoin is a different
kind of currency than others because it is based on a peer-to-peer
payment system. Purchases and transfers of the money are protected
from hackers and unwanted eyes by cryptography. Users who want to
buy, sell or transfer money simply use a network to conduct
transactions within a public database.
Certain people, called
miners, are used to verify transactions into the database. In
exchange for their services, miners get a fee or portion of the
bitcoins transferred. Another way to get bitcoins is to accept them
as a form of payment for work performed or services sold. Some people
choose to accept this form of payment because bitcoins can appreciate
in value from day to day, so a payment received one week can end up
being worth more in the next.
Bitcoin is not the only
cryptocurrency on the market. There are more popping up each day,
with new names, distinct advantages and potentially some
disadvantages. New users should not assume that any kind of
cryptocurrency is synonymous with bitcoin, and check the valuation
and conditions of the actual currency before investing.
How Do You Get Started
a user can start buying or selling with bitcoins, they need a bitcoin
wallet. This can be installed on a laptop, desktop or mobile phone.
This creates a unique bitcoin address for sending or receiving
payments. The user can give this address to anyone who is sending
them money, but it is only good for one use. A new address must be
created for any new transactions made in the future.
Learning the basics of how
bitcoins work and when they can be used is a great way to earn more
money through investments or simply stay on top of the most popular
topics on conversation in the coming year.