Bitcoin is a decentralized digital form of currency that can be easily purchased, sold, and exchanged that too without the involvement of any intermediary including a bank! In this age of digitization, the emergence of cryptocurrency Bitcoin is proving quite revolutionary.
It was created with the aim to create a mechanism to transfer money via the internet. It is a great payment option that is free from any central control and can be used just like any currency. Presently, Bitcoins are subdivided into seven decimal places. The thousandth part is known as a mili and a hundred millionth part is known as a Satoshi.
Bitcoins operate without the involvement of any additional cost and solely relies on peer-to-peer software. The transactions are recorded in a public ledger that is there on servers (nodes) that are set up all across the world where bitcoin miners are located. These transactions are gathered by miners in a block after every 10 minutes and then added to the blockchain, which is like a bitcoin accounts ledger. The risks of cryptocurrencies have also been minimized with bitcoins wallets that are digital wallets to store bitcoins securely.
How to buy/sell/exchange bitcoins
First choose your Bitcoin cryptocurrency exchange, brokerage, or payment service providers. They help not just in buying but also selling and holding cryptocurrencies. for more information about bitcoin check the business roundup and, even if you need to trade bitcoins, you need to sign up with a crypto exchange. Some investors prefer buying and holding long terms, some prefer buying and aiming to sell post a price rally. The remaining bet is on the decreasing price rates.
If you are worried about how exchange takes place in cryptocurrency, then relax! You will be able to exchange bitcoin cash through various cryptocurrency exchanges online. However, converting bitcoin to another currency cannot be done.
Bitcoin private key
Whenever any bitcoin transaction is carried out, a private key is required by the owner. This key is related to his bitcoin wallet. So, bitcoin owners need to remember the private key of their Bitcoin wallet to use this virtual currency. The private key is a combination of long and random numbers formed in such a way that guessing it is almost possible thus enhancing the security and peace of mind of Bitcoin owners. Never disclose the private key to anyone whosoever to ensure foolproof security and to stay away from the inherent risks. Having a significant amount in your hands means the need to be even more careful about the wallet you choose.
Using Bitcoins
Nowadays, Bitcoins are used as an alternative investment that helps in diversifying a portfolio other than stocks and bonds. It can not only be used for making a purchase (at limited places), but for additional purposes as well. Several vendors accept cryptocurrency these days. Some of the big organizations that accept Bitcoin include PayPal, Microsoft, Overstock, Etsy, Newegg, Starbucks, HomeDepot, Twitch, Whole Foods and more. Some local retailers accept Bitcoin, but you need to carry a little bit of research to know more about them. You can use bitcoins to buy food (Bitcoin restaurants), household items (Overstock), gift cards (eGifter), travel (Expedia), video games (Minecraft). You can also use them for charity. Isn’t that great!
Bitcoins Debit cards
You can also use your bitcoin account like you use a debit card. There are Bitcoin debit cards to help in online or in-person buying transactions. Another good thing is that one can also withdraw cash using Bitcoins through ATMs. Alternatively, debit cardholders can load a specific amount of crypto; and when they use it for any purchase, the conversion will happen in an automated way. However, bitcoins debit cards have a certain fee; and they also offer rewards in the form of cashback. They are also absolutely secure.
Conclusion
If you are curious about bitcoins, plan to invest in them, want to trade them, want to experience having a digital wallet; don’t rush. It is always prudent to look before you leap when you need to make a bitcoin investment. So, if you are a first-time investor, it is advisable to stay patient, do some research, and avoid any mistakes. If you are an accredited investor, then investing in Bitcoin will be a great decision.
Interesting Related Article: “An Introduction to Bitcoin“