Bitcoins are one of those things that we hear from time to time but don’t know enough about. While there are many people who have shown genuine interest and have made a mark in their life by using these cryptocurrencies, most people shy away from this topic. Bitcoin is the first cryptocurrency that was invested and since then the world of cryptocurrency has vastly expanded. While there are over 7000 cryptocurrencies in the market today, Bitcoin is still one of the most favoured cryptocurrencies by financial investors and advisors all around the globe. While it has been known for its volatile nature, many people feel that it has amazing long-term potential as an investment. At the same time, people have also been using Bitcoins and other cryptocurrencies as a medium of exchange as well.
What does it mean when I “buy” bitcoin?
When you buy a tangible commodity, you can feel it in your hands and see it with your eyes. However, the same is not applicable for Bitcoin as it is a virtual currency the balance of which is maintained in a public ledger and arranged in a blockchain. Every time you buy or sell a bitcoin it is adjusted on a public ledger that is visible to all. It is basically like a number that is worth dollars. It all depends on how much money you are willing to spend and you can buy a fraction of a bitcoin to as many as you please. However, the founding protocol of Bitcoin dictates that a total of 21 million Bitcoins may be minted in its lifetime.
How can I buy bitcoin?
Many people believe that buying a bitcoin is very difficult and is not something a layperson will be able to perform. However, this is not true because Bitcoins are for one and all and can be mined even if you are not a pro at computer and technology. Bitcoins can be mined from simple Bitcoin exchanges that are available online like the bitqt system. You simply have to create an account and choose a payment method that applies to you. You might have to add your personal details and then your bank and card details. These details are provided to legitimize authority. At the same time, you will also have to provide proof of identity and then you can start buying Bitcoins by transferring money.
What exactly are bitcoin wallets?
Bitcoin wallets are an address where you will be able to keep your Bitcoin once it has been sent. These Bitcoin wallets are somewhat similar but also dissimilar to the regular wallets that you carry around. They are basically a place where you store out your currency, which makes them similar to a regular wallet. However, on the other hand, bitcoins cannot really be sent or received only and adjustment is made in the blockchain and your address is linked to the number of Bitcoins you buy, they are dissimilar to normal wallets in this regard. You might want to store your Bitcoins from the internet by keeping them in a hardware wallet that is not attached to the internet. You will be able to keep your Bitcoin safe from hackers in this way. You must keep in mind that you will have to pay a small fee when you want to move your Bitcoin from your wallet or put it in your wallet.
What can I pay for with my bitcoin?
While watching currency was not accepted as a legitimate payment option for many years even after its popularity, it has recently been accepted as a payment method. Several merchants are accepting payments via Bitcoin. However, most people generally do not use Bitcoin to buy things. Bitcoins are generally kept in store as long term investments because they do have the potential to become huge in the future. While some people believe that no cryptocurrency will ever be able to take the place of our traditional currencies, there are some who are staunch believers that cryptocurrency is the future of all currencies.
When you are starting out your journey into cryptocurrencies, it is important to weigh the pros and cons before making any huge decisions.