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Bitcoin

What Is Bitcoin?

All the purchases go through the banks or credit companies, which take a part of the transaction.  Gradually these fees grow. What about the security? You need to give credence to these companies and provide them with all your personal information. How to avoid it? What is the other way?

Thanks to Satoshi Nakamoto, there is another way of spending money. Satoshi Nakamoto elaborated and discovered the Bitcoin idea in 2009. Bitcoin is a digital currency which solves various problems of online payments. Bitcoin provides lower transaction fees than traditional online payment mechanisms. Bitcoin is operated by a decentralized authority.

All the Bitcoin transactions are verified by a massive amount of computer power. Bitcoins are not supported by governments or banks. Although is not a legal tender, it becomes widely used all over the world.

Bitcoin is a type of cryptocurrency. All the balances are kept using public and private keys. These keys include a long combination of different letters and numbers linked through the mathematical algorithm of encryption that was used to create them. These mathematical algorithms are very complicated and safe.

The public keys work as an address which is available to everyone. With the help of such keys, others may send Bitcoins.  The private keys are secret. They are used only to authorize Bitcoin transmissions.

Bitcoins are the first payment network, powered by its users without any authority or middleman.

The History of Bitcoin?

Bitcoin is a money transmission system, which was discovered in 2008. Nobody knows who its creator is. But everyone knows the pseudonym Satoshi Nakamoto. On October 31, 2008 “Bitcoin: A Peer-to-Peer Electronic Cash System” was published to a cryptography mailing list under the name Satoshi Nakamoto. On August 18 the same year, the Bitcoin.org domain was registered.  On January 2009 the Bitcoin Version 0.1 was released, at the end of the year, it was 1.18.  On January 9, 2009, a serious start of Bitcoin mining began. This new form of currency has been developing over the last years. This form of money is based on mathematical proofs. It was created and held digitally.

Bitcoins are not owned by anyone. Bitcoin money is generated through complex mathematical formulas. Each transaction is regularly checked and recorded with the help of Blockchain technologies. The main idea of Bitcoin is decentralization. It means that this new form of money transaction is completely independent of government, bank or other institution.

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Nobody knows who its creator is. But everyone knows the pseudonym Satoshi Nakamoto. Nobody knows a lot of information about this creator. He left little information concerning his autobiography. Satoshi Nakamoto left this project in 2010. A lot of people do not understand the open source of Bitcoin nature. The author’s anonymity often causes fear and distrust. People wonder how others have access to the entire source code and how any developer can view or change the software code.

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Thousands of companies and a lot of individuals are involved in Bitcoin. They provided Bitcoin and Blockchain companies with a large amount of money invested in order to develop this new money system.

bitcoin

Cryptocurrency calculator

What Is So Important About Bitcoin?

Transmitting Services

Bitcoin is a new discovery in the world of the electronic form of money. It uses cryptography which controls the transfer and creation of money. That is why Bitcoin is called a cryptocurrency. Its benefit leads in recording each transaction in a public ledger, which is known as the blockchain. If you want to send Bitcoin from your wallet to another, Bitcoin network will record this transaction.

Low Cost Of Sending And Receiving Bitcoins

Bitcoin transmitting system is much lower than the traditional transactions require. It means that the cost of sending and receiving Bitcoins is low. It does not eliminate the possibility to send or receive Bitcoins for free of charge. Of course, it is possible. But for safety and comfort, it is better to pay a little fee in order to make the sending process faster.

A Great Deal For Merchants

Bitcoin has a number of benefits, which are a big deal for merchants. Merchants can sell their products at a discount. All the Bitcoin transactions are irreversible. It means that the merchants will be not cheated by the customers. Bitcoin is irreversible payment method (unlike the credit cards or bank payments), that cannot be charged back. That is why buying a Bitcoin you need to be sure that the merchant is reliable and trusted.

User Anonymity

The Bitcoin address changes with each transaction. That is why the user may be sure that Bitcoin purchases are anonymous.

Transmitting System Without The Third Party

Bitcoin transmitting system is quite different from traditional one. It doesn’t include any financial intermediaries. It is a peer-to-peer system that provides its users with more freedom and possibilities.

Mobile Payments

If you want to buy a coin, you may do it anywhere. Having only the Internet access you are able to purchase your coins whenever you want.

Easy To Get

Everyone can get Bitcoins in a few minutes. And it does not matter where you are. All you need is to download Bitcoin Wallet program, install it and create a Bitcoin Address.

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Miners are those independent individuals who own the leading computer power. Miners are working at developing and building specialized computers. These computers are designed to compete for network rewards. They help to move Bitcoins from one person to another, providing the maximum security. Bitcoin mining is the process with the help of which Bitcoins are put into circulation. Miners use special software that is necessary to solve mathematical problems. In return, they receive some rewards. Mining main goal is to keep the Bitcoin network safe, reliable and secure. It also helps Bitcoins to get a tamper-resistant consensus.

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For the last few years, a lot of people are more interested in Bitcoin mining. It is a good investment which requires an expensive mining equipment, care, reliability, patience, and Bitcoin investing experience.

Those who want to invest in Bitcoin mining need to think twice because it is much more cost effective to buy Bitcoins than to spend all the earnings on the mining equipment.

bitcoin

How Does Bitcoin Work?

Bitcoin is a new form of peer-to-peer lending and currency. It is a digital phenomenon.  It is a computer program that provides a personal Bitcoin wallet that allows the user to send, sell or receive Bitcoins. It is the most successful effort to create virtual money through the use of cryptography. Bitcoins are self-contained virtual coins. Bitcoin does not require government, bank or state interference.  You may use Bitcoins to buy different goods and services online. You may everything you want. Or, if you do not want to spend your Bitcoins you may save them, and believe that their value will grow in the near future.

You may send your Bitcoins from your wallet to another. A wallet is a personal database which is stored on your mobile device, computer or a tablet. Bitcoin network has another feature which is called the “Blockchain”.

The Blockchain includes every transaction that allows the user to check the accuracy and validity of each transaction. It is a long chain that envelops numerous users’ transactions. The originality of each transaction is supported by digital signatures. Each signature corresponds to the sending address. It allows the users to observe and control the process of sending Bitcoins. Moreover, Blockchain allows the users to check and verify each transaction in order to prove its validity.

Official social media of Bitcoin

  • facebook

    Official FB Account of Bitcoin

  • null

    Official Website of Bitcoin

  • Wikipedia

    Bitcoin Wiki

  • reddit

    Reddit about Bitcoin

  • bitcoin talk

    Bitcoin Talk about Bitcoin

  • twitter

    Official Twitter of Bitcoin

How To Invest In Bitcoin?

Bitcoin (BTC) is cryptocurrency, which can be exchanged for traditional currency. Bitcoin believers say it is the future alternative to money and that it has a large investment perspective, while Bitcoin opponents think that it is not real money and will not be. BTC is a digital currency and peer-to-peer payment system that is very popular over the last few years. It is an attractive investing way for a lot of people. Bitcoin investing is a simple process and is one of the best options for investment. If you decided to invest in Bitcoins you need to know how to do it. There are two main rules that may be helpful for you if you decide to invest in Bitcoin:

Know What You Want

Do you want to buy Bitcoins for holding? Do you want to trade Bitcoins? Maybe there is another reason. That is why the first step before you’ll start to invest in Bitcoins you need to determine what your goals are. You need to determine why you want to invest and what the main investment reason is.

Be Patient

The main goal of Bitcoin investing is to create a long-term strategy. Every investor should be patient. Try not to get rid of cryptocurrency if Bitcoin rate shows a decline. In any case, this cryptocurrency will provide a stable growth. Bitcoin rate is more stable than the other world currency which is often influenced by the political and economic events.

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If you want to invest in Bitcoin, you need to realize the following investment risks:

Regulatory Risk:

Bitcoins are tax-free, that is why state currency is in competition with it. That is why the government may even ban or restrict the use of Bitcoins. But now, the government position is uncertain.

Security Risk:

The digital Bitcoin system is at risk from hackers, operational disruptions, and malware. If a hacker finds the program that will give them access to the Bitcoin owner’s computer he will steal the encryption key. With the help of this key, the thief will be able to transfer money from one account (stolen Bitcoins) to another one. Thieves may also exchange these Bitcoins, gaining access to other accounts and Bitcoin wallets.  There is no way to change the password, and you will not be able to return your account. If it is gone, you can do nothing with it.

Insurance Risk:

Bitcoin exchanges are not insured by any federal or government security system as the other investments or traditional bank accounts.

Market Risk:

Bitcoin currency is very sensitive. It can fall or rise rapidly and unexpectedly. Although there are a lot of competitors, and though Bitcoin system is more recognizable, respective and widely-used, it is in danger.

Bitcoin Is Young:

The first step to Bitcoin developing has started in 2008. That is why it is hard to predict the future of Bitcoin developing. Bitcoin is young and nobody knows what will happen in a few years. Will be a large flourishing of Bitcoin system or will another currency replace it? Nobody knows.
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If you want to invest in Bitcoins safely, you need to know some points which you should keep in mind:

  • Withdraw the capital investment from your Bitcoins as soon as it is possible. Leave only the profits in your wallet.
  • Be careful to your private key which has access to your wallet. Never give it somebody, share it with somebody or something like this. Be reliable. If you do not follow it, someone can access your account.
  • As you know, your digital currency is stored and controlled by your mobile device, laptop or a tablet. If your device is stolen, the thief will have a full access to your account. If you lose your device, you’ll also lose access to your funds. That is why you need to keep a backup in order to be ready for any of these problems.

Where to Buy Bitcoin?

A lot of people buy Bitcoins and hold it waiting and hoping that it will rise in value. You should know that Bitcoin investing is a very risky way to earn money. That is why never invest more than you are able to lose. Buy the Bitcoins only from exchanges that have a good reputation.

There are multiple methods you can choose to buy Bitcoins nowadays. Because Bitcoin is a digital virtual currency, the beginner may be embarrassed as to where to start.

There are 3 ways to buy Bitcoins:

  • Bitcoin exchange
  • ATM
  • Directly from another investor
[wpsm_titlebox title=”Bitcoin Exchange” style=”4″]In order for a Bitcoin, you need to go to a Bitcoin exchange that deals in its own fiat tender (real currency). The most popular Bitcoin exchanges are Coinbase, Localbitcoins, BitpandaBitQuick, and Spectrocoin.[/wpsm_titlebox][wpsm_titlebox title=”ATM” style=”4″]Although Bitcoin exchange is a widely-spread way to buy Bitcoins, there are other ways to it. One of them is Bitcoin Depot. Bitcoin Depot is a series of ATMs in several states in the USA. It is easy to manage and the process of Bitcoin purchasing is not difficult. ATMs allow you to deposit and withdrawal your money so that you may buy and sell Bitcoin.[/wpsm_titlebox][wpsm_titlebox title=”Directly From Another Investor” style=”4″]There are people who sell Bitcoins. Using special sites you may review and feedback their scores. It may help you to choose the best.[/wpsm_titlebox]

Trading In Bitcoins

How to invest in Bitcoins for trading? What is trading? Trading is a business. And, like every business, Bitcoin trading requires a good plan and experience. If you want to trade Bitcoins, you need to buy it at a low price and resell them at a high price. That is why you should be very attentive, careful and well informed.

Best Bitcoin Wallets

The wallet is a digital account that allows you to store, sell and buy Bitcoins. Opening your Bitcoin wallet is an easy process which takes a few minutes. You may do it online without any obstacles.

Before you buy Bitcoin, you need to download a Bitcoin wallet which is a necessary software program to store Bitcoins. This shouldn’t take more than two minutes.

Every Bitcoin address has an individual secure key (private number) that is saved in a Bitcoin wallet of an owner of the account.

Creating a digital Bitcoin wallet is an important step in the process of gaining Bitcoins.

There are 3 main types of wallet: software, hardware and paper wallets.

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Software wallets are based on computer software. Software wallets have 3 formats: desktop, mobile and online.

  • Desktop wallets are computer programs that store your money on tour personal computer or laptop. They provide a full control over the users’ money. If something happens to your computer, all your Bitcoins will lose forever.
  • Mobile wallets are operated through the mobile phone. It is a very comfortable way to manage your money. Mobile wallets are able to store your coins and to provide you with access to online storage servers.
  • Online wallets are very comfortable web-based wallets. They may be accessed from any device, anywhere. Moreover, the online wallets may be connected to mobile or desktop wallets.

There are many different types of software wallets, but Copay, Electrum, Jaxx are the best.

Copay

The Copay Bitcoin is a popular software wallet for Bitcoin storing. It is not an account service. It is available as mobile and desktop wallet. It may be a good choice for beginners because of its easy-to-manage system. It provides a lot of users with a single wallet access. The Copay stores multiple Bitcoin wallets, keep funds carefully separated. It is easy to manage personal wallets.

Electrum

The Electrum wallet has a lot of benefits. It is available on a desktop or an Android wallet. It is one of the most reliable wallets. Its speed and security system are the other advantages of this wallet. Learning Electrum requires practice. But the user interface is quietly complicated, especially for beginners.

Jaxx

Jaxx is one of the most widely-used free software wallets. It is available on a desktop and mobile wallet. It includes an exchange service within the app. So, you are able to exchange one cryptocurrency to another.
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Hardware wallets have a secure chip. It means that when you connect them to a computer to send your money, you don’t input your private key on the computer. All you need to do is to input a pin code on the piece of equipment. There are a lot of hardware wallets, but the best of them are Ledger and Trezor.

Ledger

The Ledger Nano S is a compact USB device which is based on a smart card. It is one of the most popular Ledger wallets. You have a full access to your funds even without connecting the device to a computer.

Trezor

Trezor is considered to be one of the best and the safest devices on market. It can be used in different currencies. The price is high. It is more realistic for those users who have a big amount of currency.
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A paper wallet is a document, containing a cryptocurrency address, private and public keys that compose a wallet, which is accessed with a QR code. It is very helpful to make transactions quickly. The paper wallets are not connected to the Internet. It reduces the risk of hacking, cyber-attacks or hardware failures. It is very important to create a backup copy. If you lose your paper wallet, you’ll be not able to access the Bitcoins which were sent to its address without a backup copy. Moreover, you need to very careful with the paper Bitcoin wallet, because the paper has limited durability and life. In order to create a paper Bitcoin wallet open BitAddress.org in your browser (or LiteAddress.org for litecoin) and follow the instructions.

Bitcoin Paper Wallet

This is a free Javascript based website, where you can create a private and public key to store your Bitcoin. You can print out your wallet using a printer. The received certificate will consist of individual keys and QR code.
[wpsm_titlebox title=”Final Thoughts” style=”3″]The popularity of Bitcoin leads in its ability to quickly transfer Bitcoin from one person to another.  It is performed outside the traditional banking system without a middleman. It is a new currency system, which is predicted to be a great investing boom in the nearest future.[/wpsm_titlebox]