Being completely online-based, bitcoin isn’t centralized by any nation nor regulated by any banks, yet it can fluctuate daily in value like the dollar or euro. Bitcoins offer users an alternative way to pay for goods or services digitally and anonymously, making them incredibly relevant in our modern society.
How People Use Bitcoin
Unlike traditional currency, bitcoins aren’t issued by a bank. Instead, bitcoins are exchanged between one computer and another, and they’re stored in the user’s computer or cloud in their digital wallet.
Digital wallets are similar to a private checking account, only the account owner’s name and address are never revealed. The heightened anonymity of bitcoin makes it the typical form of payment when purchasing illegal drugs or services online.
However, bitcoins aren’t just for the underground. Its anonymous nature provides an additional barrier between the world wide web and your bank account.
Therefore, many people have begun using bitcoins to do their online spending. Today, you can use bitcoins to order a pizza in Venezuela, donate to Wikimedia, and more.
How to Buy Bitcoin
Buying bitcoin is as easy as creating some new online accounts. One should be for the cryptocurrency exchange, the online marketplace where people buy, sell, and trade bitcoins.
In the United States, there are three large exchanges that are recommended to first-time users: Coinbase, Kraken, and Gemini. After purchasing your bitcoin, it’s best to store the information away from the exchange, where it’s vulnerable to hacking.
Therefore, you should create an account with a digital wallet service that organizes and stores the information for you. The digital wallet also comes with an ID, which is how bitcoin users identify who to send their money to.
A single bitcoin can be valued in the thousands or tens of thousands depending on the day. Luckily, it can be divided by up to eight decimal points, so it’s possible to buy just part of a bitcoin. The smallest unit of a bitcoin is called a “satoshi,” and it represents 0.00000001 BTC.
The Future of Bitcoin
With online shopping becoming the new norm, cryptocurrencies have gone mainstream, and bitcoins are at the forefront of the pack. It’s anonymous and secure, but it also comes with some risks.
other related articles of interest:
Solving the Mystery of Bitcoin: What Is It and Where to Buy It?
Digital wallets can be vulnerable to hackers, so practicing safe online habits, such as enabling two-factor authentication, is vital to keeping your funds. Bitcoin will most likely become even more popular as time goes on, so be sure to get in on the action.
Bitcoins are a fun and unique form of payment that you can use on the web. If you invest properly, you can also use bitcoin and other cryptocurrencies to make a lot of money. You just have to pay attention to the constantly changing market.
Image Credit: by envato.com
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