About Bitcoins

What is bitcoin?

 

Crypto digital currency that created, used and stored solely on the internet. The total bitcoins could not overcome 21 million, and minimum payment particle is one million part of Bitcoin, which named by bitcoin inventor, Satoshi, it is 0.000001

So, BTC is an electronic, blockchain operated currency.

 

Why do we need Bitcoins?

 

Well, that’s a nice question, however, Bitcoin is a famous and most popular crypto-currency in the world. Bitcoin payment cost is much lower than a payment cost charged by banks. Bitcoin transactions are not reversible, though the risk of fraud drastically minimized from one prospective, and extremely high from another part. Bitcoin is non-controlled currency, transactions held by the participants with a high grade of anonymity.

 

How does the system work?

 

Electronic payment system! Transactions held by the internal blockchain system, from one electronic wallet to another. In order to maintain high reliability and every transaction signed by electronic signature, confirms that funds were sent. The receiver can manage the number of confirmations received before transaction confirmed. Every confirmation received from miners and they arrive once in 10 minutes. For small amounts, one to two confirmations are sufficient, for big amounts of funds, amount of confirmations may be changed to 10 or even more.

 

Despite the common access to transactions, blockchain notes are faceless, so no personal data disclosed, due to its inexistence in blockchain. The highest privacy is the main feature of cryptocurrencies.

 

How to buy bitcoins?

 

  • Exchanges markets – nice rational way to buy bitcoins, but here all data needs disclosure, due to verification procedures that exist in order to maintain transparency and law-obedience.
  • Personal meeting with the trader – Risky but simple bitcoin transaction method, the method based on cash-to bitcoin transaction; the transfer initiated by the verbal agreement of two persons, one passes cash and the other transfers cryptocurrency to the bitcoin wallet of the buyer.
  • Bitcoin ATM – accept plastic cards, but in return of a payment provides QR code receipt, then buyer needs to perform QR code transaction by bitcoin application, to have his bitcoin credited to his BTC wallet.

 

Wait a sec, is it legal?

 

Well, a good question. It is, but new rules created worldwide, and it may become not in some jurisdictions or may impose some restrictions on payments, however, these restrictions may be on the conscious of those who created them, due to the inexistence of possibility to verify users of the blockchain.

 

So, all countries impose the variety of rules and regulations. Japan recognized it, US bitcoin rules differ from state to state, Russia now officially doesn’t recognize bitcoin, however, there are some rumors that cryptos would be recognized soon. EU is in process of creating relaxed rules for bitcoin.

 

With the time, bitcoin became stronger on the world markets and people and countries trust more in its technology and main idea. Nowadays it partially recognized around the world; however, it is known and accepted worldwide, so this paradox brings governments to the unique decision – to start its regulation.

Juridical aspects of its recognition need clarifications from country to country, however, in general, it is a welcomed currency that known and accepted widely around the world.

 

Bitcoin Wallets

 

There are 2 types of bitcoin wallets – cloud-based and hard drive based. Both of them are good enough to store, transfer and mine bitcoins.

Every wallet has its own pros and cons, but in general, all open source version seems to be reliable and develop fast.

 

Cloud-based BTC wallets

 

  • Copay.io
  • Bitgo.com

 

Downloadable wallets

 

Bring higher security for your crypto assets, due to the crypto chain that stored also on the end-user computer.

 

These are

  • Сopay.io
  • Bread Wallen
  • Mycelium

 

Hardware-based wallets:

 

Hardware wallets have the highest security because it allows storage in the physical safe. The private wallet key is stored deeply in protected microcontroller area, though it brings highest security t the key.

 

Recommended wallets

 

  • Trezor
  • Ledger

 

All information about bitcoin, its usage, development and wallets you may find on non-commercial site bitcoin.org – it is an introduction to the most popular cryptocurrency in the world.

Bitcoin is easy to network, and everyone is able to benefit and understand its basics, it is very flexible, and the useful mean of payment and it allows controlling your assets 24/7. If you use it with precautions, it is a safe, fast and very convenient way to pay and to save money.

 

What measures to be taken in order to maintain the safety of funds when using bitcoins.

 

  • Use several wallets to store your funds.
  • Always use 2-factor authentication
  • Take a copy of your wallet keys and keep it in a safe place, keep all data reliably encrypted
  • Store your password in safe place, preferably offline. If you lose your password credentials, you would not be able to restore access.
  • Use only long, complicated passwords, ideally 15-16 symbols long, with digits, the special symbol, upper case letters etc.
  • Use offline wallet, or “cold storage” – it brings you highest security level, it is protected from computer viruses, and thus it makes hackers task much harder if they aim to break up and steal your BTC assets.

 

Cryptocurrency PROS

 

  • Anonymous storage and payment
  • The decentralized system, all participants are equal in the system
  • Security - If properly used, any hacker’s attack are excluded
  • Accessible anywhere in the world – easy money transfers and capital movement
  • Mineable – anyone is able to create some cryptocurrency by mining programs and vacant GPU/CPU power

 

Is this real money? Am I able to spend them in Grocery/Outlets/Car Shops?

 

Hm, 10 years ago a guy bought a pizza paying a huge amount of BTC’s, now things have changed, he probably would need something around 0.001 to buy pizza from a pizzeria nowadays. And yes, the answer on this question is strictly affirmative, you may spend your BTC’s anywhere where they are accepted. There are numerous businesses that sell goods and services for BTC’s. These days cryptos are accepted for groceries, auto-shops, land apartments and houses for rent and sale, airfares even citizenship investment programs. You name it, we have it, Cryptocurrency takes big steps in worldwide recognition and acceptance.

Check out how it is treated in your hometown.