Bitcoin Basics For Beginners

Many people say that Bitcoin is the future money. This cryptocurrency has become the most popular news in the world of business online. The concept of Bitcoin itself is rather complicated but many people have learnt how did Bitcoin work. Therefore, for you who are still new about Bitcoin, you have to know some basics related to Bitcoin.

1. What are Bitcoins?

Bitcoin is a cryptocurrency and it is used as worldwide payment system. Bitcoin is the first virtual banking currency in internet. It is also the first decentralized digital currency, as system works without a central bank or administrator. The transactions are recorded and verified by network nodes by using cryptography system. All the transactions happened will be visible for all users because the transactions will be written permanently in a distributed ledger called blockchain. Shortly, Bitcoin can also be defined as digital money.

2. Are Bitcoins anonymous and untraceable?

They aren’t. Bitcoin users don’t have to divulge certain pieces of identifiying information, like bank account. A traceable trail of transaction using Bitcoin is verified in a public log known as blockchain.

3. How are Bitcoins purchased?

Bitcoins are mainly bought online using real money like U.S. dollars via Bitcoin exchanges and private sellers. The popular Bitcoin exchanges include Bitstamp and Coinbase.

4. How can you start using Bitcoins?

The first thing is you need to install Bitcoin Wallet on your computer or smartphone. After installing, you need to sign up and once you’ve done it, your Wallet provider will generate your first Bitcoin address and you can create more whenever you need it. You can share your address with friends so that you can do transaction with them.

5. Which companies accept Bitcoin payment?

Thousands of business in the world currently accept Bitcoin as a form of payment. The examples are Etsy vendors, WordPress, and Amazon.com.

6. What are Bitcoins currently worth?

Bitcoins are relatively new but they are growing in instant. A Bitcoin is worth approximately $7 billion at current market rates, with millions of dollars of the digital currency being traded every day.

That is all the basics you need to know as beginners. Basics are very important in learning something to reach to the top. By knowing this information, I am sure you will be the greatest Bitcoin trader.