What Are Bitcoins and How Do They Work ?

Bitcoin is one of the most popular kinds of digital currencies available today. It is an online-based type of money whose payment network is decentralised. Unlike physical cash, bitcoins are not made, regulated or controlled by any governing body.

The currency was produced in the year 2009 by an anonymous person bearing the pseudonym Satoshi Nakamoto. Bitcoins allow people to make transactions without any middlemen or banks. Transaction fees are completely eliminated and you don’t need to provide your actual name. Increasingly more stores are starting to accept the new currency. With bitcoins, you can purchase web design services, beauty products or even food.

Global payments are simple and affordable since bitcoins are not subject to any nation or bound by any law. Many small business owners prefer them since they carry no credit card charges. Other people simply purchase bitcoins as a form of investment.

How to Get Started with Bitcoins
From a consumer point of view, bitcoin is just a computer program or mobile application that offers a personalised bitcoin wallet and enables one to receive and send bitcoins. That is how bitcoin actually works for the majority of its users.

On the other hand, the bitcoin network involves sharing an open record known as a ‘blockchain‘. The record contains all transactions ever made through the network, enabling a user’s device to confirm the authenticity of every transaction. The validity of various transactions is safeguarded by digital marks matching the senders address. Consequently, this permits the consumers to have full control over their bitcoins.

Moreover, anyone can make transactions through the computing capability of special hardware and get a prize in terms of bitcoins. This is usually known as mining.
The first step to getting started with bitcoins is to obtain a wallet. There are several types of wallets to select from and they include phone wallets, hardware wallets, software wallets and Bitcoins web wallets.
Once you choose your wallet, the next step is to buy bitcoins. While buying bitcoins is still a challenging task, it is becoming much easier each day.

Many people prefer getting bitcoins by receiving them as payment for the goods or services that they offer. To make the process much easier, it is advisable to use a merchant account because it permits you to send invoices to your customers and add payments in bitcoins to you account.

Important Bitcoin Tips
Protect your private key: before you can transfer payments from the digital wallet, you are required to enter your private key. Therefore, if anyone gets hold of your private key, they will be able to transfer cash from your wallet. Failure to remember your private key also means that you will not have access to your money. Hence, it is extremely important to safeguard your private key and ensure you don’t forget it.

Do not publish your bitcoin address in any public place: it is not advisable to publish your bitcoin address in any public forum, as this may jeopardise the safety of your digital wallet.

Keep an Eye on Bitcoin-Related Scammers
Unfortunately, there are numerous Bitcoin–related sites and businesses that are not entirely legitimate and such people are often nefarious in their dealings – and are actually trying to con you off your hard-earned bitcoins. In order to avoid falling prey, it is important to do proper research before you make your investment. This may include reading reliable online reviews about the site you are considering working with.

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