Whenever we talk about cryptocurrency, Bitcoin is the first thing that comes to our mind. It is a highly popular cryptocurrency in the market.
Due to the raging popularity of bitcoins, more and more people are interested in investing in them. But before you enter this field, you need to have good knowledge about bitcoins.
Bitcoin is one of the very first cryptocurrencies that were introduced. Even after so many years, it is still in the top 10 crypto coins. It is a fascinating, new-age currency that exists online. Just like any other cryptocurrency, you can use it anonymously.
If you are interested in investing in Bitcoin, you are in the right place. In this post, we will cover everything you need to know about bitcoins. To be successful in bitcoin trading, you can consider using top trading bots.
What is Bitcoin?
Before we move onto any further details, let us first know a little about Bitcoin. Those who are new in this field might find this helpful.
To put it in simple words, bitcoin is a digital currency designed to pay for services and goods. It is just like traditional money that you use while purchasing stuff.
Today, many companies are using bitcoins and also encourage customers to use them while purchasing from them. They do so by offering attractive discounts.
But Bitcoin is nothing like the traditional currency. The main characteristics of bitcoin are:
Unlike traditional currency, Bitcoin is decentralised. This means it is not controlled by any government or bank authorities. This eliminates the need for you to pay any taxes for owning Bitcoins.
Bitcoin is a digital currency. It doesn’t have any physical coins or bills. In other words, it only exists online and can be tracked by blockchain. This helps you to find the complete history of each Bitcoin.
For those who don’t know Bitcoins are linked to your wallet ID, instead of your personal information. This means it is not entirely anonymous as it claims to be.
Bitcoin was developed by someone named Satoshi Nakamoto in 2008. This person published a paper on Bitcoins describing how it works and what it is all about. Just a year later, he started mining and trading Bitcoins.
The main advantage of using Bitcoins is the absence of any banks and middlemen with hefty fees. Since this is a digital currency, you need to use your wallet ID to make transactions with it. You can use bitcoins you can shop in places where they are supported. Some brands even offer coupons to encourage customers to buy and use bitcoins.
Is Bitcoin anonymous?
Many of you want to know whether Bitcoin is completely anonymous. Let’s find that out in this section.
You see any skilled hacker and even government agencies have the ability to track almost anything they want including Bitcoin.
Bitcoin transactions are indeed transmitted randomly using the peer-to-peer network, but that doesn’t make it completely anonymous.
If a hacker can connect multiple nodes to the Bitcoin network, he might be able to determine the origin of a transaction. This is possible by assessing the combined data collected from the different nodes.
A hacker can also track the real identities if those identities are linked with the Bitcoin addresses in any manner. This includes addresses used to withdraw or deposit money from a wallet or an exchange.
So you need to be careful while dealing with Bitcoins. Although it is safer than a traditional currency, there is always a chance a hacker might track down the entire transaction. To stay updated on crypto-related news, you should check out Crypto Signals.
How to get Bitcoin?
Now the main question is where you get Bitcoins from. There are two main ways to get Bitcoins and we have explained that in the pointers below.
01. With money
The first and the most convenient way to get Bitcoins are by using money. What we mean is that you can buy bitcoins with cash, wire transfers, or credit/debit cards. But before you can do that, you need to have a Bitcoin wallet. This is a place to store all the bitcoins that you buy or receive. It just likes your traditional wallet.
When dealing with bitcoins, you will have to back up your PC regularly. This is important for people who store bitcoins on their PC. But if you are a regular user, then using an online service will be best suited for you. But for this, you need to give up on complete anonymity. Not just that, but you also have to complete the entire lengthy setup procedure.
Another way to get Bitcoin is through mining. You need to mine Bitcoin because it doesn’t have any physical form and is not distributed by the government.
You need special software to mine Bitcoins. The software is needed to solve math problems correctly, so you can get your Bitcoins.
In case, you find this method to be difficult, no worries, because there is a large amount of floating Bitcoins online. All you have to do is grab these floating bitcoins.
Mining bitcoin is not an easy task. Even if you have the right software, it is not so simple to use it. It is so difficult, that many people cannot mine Bitcoins on their own. This is why there are so many mining pools coming up in cyberspace.
A mining pool is a group of miners who share their computer power to mine cryptocurrencies. Once they solve the puzzle, the winnings are divided among each miner. The number of bitcoins received depends on the amount of computing power you have contributed to the calculation.
If you are determined to enter Bitcoin trading, you should consider using trading bots. One of the best ones is Cryptohopper, but before that go through Cryptohopper review. This will give you an idea about how it works.
Bitcoins is one of the most successful cryptocurrencies out there. Despite being a decade old, it still has a great market value. If you are planning to invest in it, you are making a good decision.