Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank. Bitcoin’s creator, Satoshi Nakamoto, originally described the need for “an electronic payment system based on cryptographic proof instead of trust.”
“A purely peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without going through a financial institution. “-Satoshi Nakamoto.
Bitcoin or bitcoin? The system is named Bitcoin with a capital B. The currency unit is called a bitcoin with a lowercase b.
Why do bitcoins have value?
Bitcoin has value for two key reasons:
- It is useful as a means of storing and exchanging values.
- A group of people agrees that it is valuable.
A lot of people compare bitcoin to gold since it has similar characteristics:
- The supply of bitcoin is limited. There will only ever be 21 million bitcoins.
- They can be divided easily. You can divide one bitcoin into 100 million pieces – which is known as a Satoshi.
How did Bitcoin begin?
The concept of cryptocurrency was first implemented through Bitcoin. In 2009, Satoshi Nakamoto published the first Bitcoin specification and proof of concept in a cryptography mailing list. At the end of 2010, Satoshi left the project without providing any details about himself. Since then, the community has grown exponentially with several developers working on Bitcoin. Anyone in the world can review the Bitcoin protocol and software and modify it to suit their needs.
Who controls the Bitcoin network?
Nobody owns the Bitcoin network, just as no one owns the technology that powers email. Bitcoin is controlled by all Bitcoin users worldwide. While developers are working to improve the software, they are unable to bring about a change in the Bitcoin protocol because all users are free to use whatever software and version they prefer. To remain compatible, all users must use software that adheres to the same set of rules. Bitcoin can only function properly if all users reach a complete agreements. As a result, all users and developers have a strong incentive to safeguard this agreement.
How does Bitcoin work?
Bitcoin uses a ‘Blockchain’ technology, which is a decentralized database containing the whole transaction history between different Bitcoin users. This database is called ledger, which is distributed across all the computers that are connected to the network.
Where can I buy Bitcoin?
So, you have decided to buy your first Bitcoin but have no idea where to start, or maybe you feel the process is too complicated, and you don’t have the technical know-how. You don’t have to worry; we’ll walk you through the steps. There may be some changes depending on the service provider you select.
The first step is to open an account with a cryptocurrency exchange if you want to buy or sell cryptocurrencies. The function of crypto exchanges is comparable to that of stock brokerage platforms, providing the tools required to buy and sell digital currencies and tokens.
There are more than 600 cryptocurrency exchanges worldwide inviting investors to trade bitcoin, Ethereum, and other digital assets. There are many factors to consider when selecting a cryptocurrency exchange, including supported assets, fees, payment methods, and security. Below are Forbes Crypto Exchange Global Rankings – Top 10 Providers:
There are some popular cryptocurrency exchanges in India that allow you to trade in different altcoins, be it Dogecoin, MATIC, Bitcoin, or many others.
How do I buy Bitcoin?
- Once you have selected a cryptocurrency exchange, you can sign up to open an account. Then you need to complete KYC verification according to the laws of the land.
- To purchase Bitcoin, you must have funds in your account. You can deposit money into your crypto account by transferring it from your bank account and making a payment with a debit or credit card. You may have to wait a few days before you can use the money you deposit to buy cryptocurrency, depending on the exchange you use and your funding method.
- After you have transferred money to your crypto exchange account, you can place an order to buy Bitcoin. Exchange orders work just like stock market orders.
Bitcoin markets do not close; they trade 24*7 all year round, so you always have access to the market.
How do I keep my Bitcoin safe?
A centralized cryptocurrency service cannot provide the same level of security as a bank. Crypto brokers, for example, are not as tightly regulated, and funds can be permanently lost if they are lost. Initially, you can store your crypto assets in a crypto wallet attached to the exchange. You can also use a separate hot or cold wallet to make it more secure. Several different wallet options are available for Bitcoin or other cryptocurrencies mentioned below.
- A Bitcoin wallet is a device or program used to store and send Bitcoins.
- The private keys required to sign Bitcoin transactions are stored in Bitcoin wallets. A user with access to the private key can control the coins associated with that address.
- Hardware wallets are the most secure Bitcoin wallets. A web wallet is less secure.
- There are Bitcoin wallets that can be used to store multiple cryptocurrencies.
How do I sell Bitcoin?
Your two main options for selling bitcoin into local currency are:
- Using an exchange service – To convert Cryptocurrency into money, you can sell your Cryptocurrency through Crypto Exchange.
- Selling peer-to-peer – In a certain situation where you and the buyer mutually agree, you can sell small amounts of bitcoins to peer to peer.
How can I protect my Bitcoins?
- Avoid using any kind of wallet that requires an internet connection, use the cold storage option instead
- Always be cautious and double-check on everything. For example, refrain from opening unsolicited emails
- If you are using a desktop or mobile wallet, avoid using unknown websites, as they may carry malware.
- If someone asks you to send them a small number of Bitcoins and promise to return more: Don’t do it, its a scam
- Don’t send anyone your Bitcoin private key because it enables them to steal all your coins.
Is bitcoin legal?
Generally, most jurisdictions do not consider Bitcoin illegal. Although some jurisdictions (such as Argentina and Russia) restrict or ban cryptocurrencies. Certain jurisdictions (such as Thailand) may limit the licensing of certain entities, such as Bitcoin exchanges.