What is bitcoin, How to make money with bitcoins

What is bitcoin:

Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency.

Besides being created as a reward for mining, bitcoin can be exchanged for other currencies products, and services in legal or black markets.

As of February 2015, over 100,000 merchants and vendors accept bitcoin as payment. According to a research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.

Inform Yourself

Bitcoin is different than any currency you’ve used before, so it’s very important to understand some key points. Unlike government issued money, that can be inflated at will, the supply of bitcoin is mathematically limited to twenty one million bitcoins, and that can never be changed.

Bitcoins are impossible to counterfeit or inflate. You can use them to send or receive any amount of money, with anyone, anywhere in the world, at very low cost. Bitcoin payments are impossible to block, and bitcoin wallets can’t be frozen. Short of turning off the entire world’s internet, and keeping it turned off, the Bitcoin network is unstoppable and uncensorable.

While Bitcoin brings unparalleled freedom, it also requires increased user responsibility, but the rewards are well worth your time. Read on to learn how to save 20% on everything from Amazon thanks to Bitcoin. Or you can direct questions to lots of other Bitcoin users in our Bitcoin forum.

Choose Wallet

Choosing a wallet is easy, but there are lots of different options. The most important distinction is whether you control your own bitcoins just like a physical cash wallet or you have to trust someone else to hold your bitcoins for you. There are advantages and disadvantages of both approaches, but in general we think it is best for users to hold their bitcoins themselves. You can have as many different Bitcoin wallets as you want, but it’s easiest to get started with a wallet for your iPhone or Android device so you will have your bitcoins with you wherever you go. Choose your wallet here.

Get Bitcoins

Obtaining bitcoins works just like obtaining any other currency. You can sell something you already have for them. You can ask your existing employer to pay you in Bitcoin. You can use a Bitcoin based payroll service like Bitwage without your existing employer even needing to know. You can start accepting them as payment at your current business. But the easiest way is simply to buy them on one of our trusted Bitcoin exchanges.

Comments

  1. Aliza Lakhani

    What is Bitcoin and how does it work? Is it legal? Who’s behind it? What are the types of Bitcoin? can you explain in detail?

    1. Superb Answer Post author

      Basically it is a type of digital currency. It is a peer to peer payment network where you can buy services/items in exchange of bitcoins. it is legal some people says that this is scamming but they are wrong its not scamming or illegal. There is no central authority or middlemen, the network is powered by the users. There is a system in place to check the transactions and its validity though. Bitcoin conversion rates have changed a lot since the time it started and is still quite volatile.

Comments are closed.