What is bitcoin? How To Buy And Sell Bitcoins

What is bitcoin? How To Buy And Sell Bitcoins

How many of you are well known about Bitcoin?
May be the answer is only 20% or may be less than that,
May be bitcoin is a new currency for you that was created in 2009 by an unknown person named Satoshi Nakamoto.
Transactions of bitcoins are made with no middle men means no mediator no banks!
Bitcoin are often wont to book hotels on Expedia, buy furniture on Overstock and buy Xbox games.
But most of us are using it for getting rich by trading it.
The price of bitcoin skyrocketed into the thousands in 2017.

 How To Buy bitcoins

 Buy on an Exchange

Many marketplaces called “bitcoin exchanges” allow people to shop for or sell bitcoins using different currencies.
Coinbase may be a leading exchange, along side Bitstamp and Bitfinex.
But security are often a concern: bitcoins worth tens of many dollars were stolen from Bitfinex when it had been hacked in 2016.

 How Bitcoin Works?

In layman’s terms: Bitcoin is a digital currency. 
That’s a concept that might be more complex than you realize: it isn’t simply an assigned value of money stored in a digital account, like your bank account or credit line. 
Bitcoin has no corresponding physical element, like coins or paper bills (despite the favored image of an actual coin, above, for instance it).
The value and verification of individual Bitcoins are provided by a worldwide peer-to-peer network.

Bitcoins are divided into blocks of ultra-secure data.
And it is treated like money.
Moving this data from one person or place to another and verifying the transaction, i.e. spending the money, requires computing power. 
Users called “miners” allow their computers to be employed by the system to securely verify the individual transactions.
Those users are rewarded with new Bitcoins for their contributions.
Those users can then spend their new Bitcoins on goods and services, and therefore the process repeats.

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 How Are Bitcoins Spent?

 Imagine you’re buying a Coke at the supermarket with a debit card.
The transaction has three elements: your card, corresponding to your bank account and your money, the bank itself that verifies the transaction and the transfer of money, and the store that accepts the money from the bank and finalizes the sale.
A Bitcoin transaction has, broadly , an equivalent three components.

 Bitcoin Weaknesses

Now the question is if Bitcoin is so good, then why is not everyone using it? Well, obviously, it has some drawbacks too, especially at the current time.
Possible Government Interference
Any time something new comes around and challenges the status quo, the government is going to get involved to make sure that things remain the way they are supposed to be. 

The fact is that the US government, and other governments, are looking into Bitcoin for a variety of reasons.
Just in the last few days, the US government has started seizing some accounts from the biggest Bitcoin exchange.
More is likely to come in the future.

 What is “Mining”?

Instead of a single central server verifying every transaction, essentially every other person on the network verifies each transaction.
Cue the “miners.”
Let me simplify the method so we all understand: Miners are presented with a sophisticated math problem and therefore the first one to unravel the math's problem adds the verified block of transactions to the ledger. 

The calculations are based on a Proof of Work (POW), or the proof that a minimum amount of energy was spent to get a correct answer.
There aren’t actual citizenry hunched over computers with scraps of notebook paper and calculators doing pre-calculus homework; hardware is employed to perform Bitcoin mining.

 How to Buy Bitcoin?

As mentioned above, in the early years of Bitcoin it was difficult to find a trustworthy place to buy the cryptocurrency.
With the rise in demand for Bitcoin, numerous new companies have sprouted to assist facilitate easily purchasing Bitcoin.
Well Recently, Few Bitcoin exchanges have received very big investments from venture capitalists.
They’re also now more heavily regulated, especially those based out of the United States.

Top two recommended options below:

1. Coinbase launched in 2012 with the hopes of giving users an easier way to buy Bitcoin. Since its launch, the San Francisco based startup has become the foremost commonly recommended buying option for newbies.

2. Gemini was founded in 2015 by Tyler and Cameron Winklevoss.
While they launched more recently than many of their competitors, the New York-based cryptocurrency exchange has quickly built an excellent reputation within the crypto community.

 How to Sell Bitcoins?

1. Using a Bitcoin Exchange Platform

Bitcoin exchange website help us like a middleman.
These website sells your Bitcoin for you. 
These platforms will list your bitcoin together with your selling price , connect you with interested parties, and facilitate the sale.
View a list of exchange platforms available in your country by visiting the Bitcoin website at https://www.bitcoin.com/buy-bitcoin.

2. Making Direct Bitcoin Sales

Work out an agreement with a friend or relative to transfer them bitcoin in exchange for an interact money transfer, cash payment, or check. 
You can Send your bitcoin through your exchange platform/website of choice by selecting "send" button and type their email address or Bitcoin address.
Ensure that they have received your transfer and are able to deposit the funds into their Bitcoin wallet.

3. Selling Bitcoin in Person

There are bitcoin ATMs located in cities all over the world, and they are growing in number.
Out of those ATMs, only about 40% allow users to sell coins for cash. Search for machines with this feature by browsing the bitcoin ATM map at https://coinatmradar.com/bitcoin-atm-near-me/

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What is bitcoin? How To Buy And Sell Bitcoins What is bitcoin? How To Buy And Sell Bitcoins Reviewed by Tech Wala Dost on May 06, 2020 Rating: 5

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