For the first time, Bitcoin became known in 2008, when the Occupy Wall Street movement accused large banks of abusing borrowers, tricking customers, interfering with the financial system and exorbitant fees. Then there was the question of the need to transfer responsibility for transactions to sellers, eliminate intermediaries, cancel interest rates and create transparent transactions in order to eradicate corruption and limit fees. For this, a decentralized system was created, any user of which could control the movement of own funds. With currency, you can make transactions, pay for purchases, receive transfers and exchange it for cash. For transactions, a special address is used, encrypted with a 16-character key. The buyer decodes the code to transfer bitcoins to the specified address.
Mining is a process ensuring the security of the BTC system, which in chronological order adds new blocks to the blockchain (new transactions). Blocks are added when the codes are decrypted, the transaction is completed, and bitcoins are transferred or exchanged.
The main cryptocurrency is generated by miners using software that solves cryptographic tasks. The reward for the new block is agreed by all network participants, but usually amounts to 12.5 bitcoins. Part of user fees for transactions are also rewarded to miners. Cryptographic tasks become more complicated every year to prevent inflation (mining difficulty).
- Inability to cancel. It is already impossible to cancel the transaction after the transaction.
- Coverage and speed. Transaction information is transferred incredibly quickly, and confirmation comes within a few minutes. Nobody knows the physical location of the buyer.
- Anonymity. The address to which Bitcoin is sent consists of 30 characters. You can track the flow of transactions, but the address is not always associated with a real person.
- Deregulation. Everyone can use cryptocurrency.
- Security. The balance of bitcoins is fixed in a public key cryptographic system. Only the owner of the private key can send cryptocurrency to other addresses.
Where to buy Bitcoin?
You can purchase BTC using special services where this cryptocurrency is bought for fiat money (rubles, dollars, euros and so on). Exchangers supporting crypto exchange gateways are the easiest way. Immediately after payment, the coins appear on the user's crypto-wallet.
There are deposit systems that use crypto-exchanges. So, to buy Bitcoin, you first need to replenish the balance, buy the digital currency itself, and then withdraw it to your Bitcoin wallet, having paid a commission for withdrawing coins.
The cheapest method of buying is buying on the exchange. The exchange rate is as close to market as possible.
The current rate of the coin is calculated at the average price on the largest currency exchanges. For example, you can track the course on our Buyex exchange. The Bitcoin exchange rate is constantly changing, during the day it can change by 10% in one direction or another.
Choosing a Cryptocurrency Wallet
A cryptocurrency wallet is the place where the digital currency will be stored. The safest way to store is to use paper or electronic wallets. However, the most popular options are special mobile and desktop applications. You can also store coins on exchanges.
TOP secure cryptocurrency wallets
These wallets are one of the safest crypto wallets in the world:
- Bitcoin Core (Bitcoin Qt)
- Ledger Nano S