Bitcoin For Beginners

On October 31, 2008, the concept of Bitcoin was presented in the publication of this white paper. Launched in 2009 by the mysterious developer known as Satoshi Nakamoto, Bitcoin (BTC) was the first, and most valuable, entry into the class of emerging assets known as cryptocurrencies.

In 2010, Satoshi left cryptocurrency development, their last known communication was an email in April 2011. As the popularity of cryptocurrency increases, many retail investors have considered adding Bitcoin to their portfolios.

Technically, all cryptos except Bitcoin are called "altcoins" or alternatives to Bitcoin. To help you understand what it is, how it works, how to get it, how to store it, how to exchange it for cash, and what you can buy using Bitcoin, we've created this definitive beginner's guide to Bitcoin.

Let's get started!

What Is Bitcoin?

Bitcoin is a form of digital currency that seeks to eliminate the need for central authorities such as banks or governments. Instead, Bitcoin uses blockchain technology to facilitate peer-to-peer transactions between users on a decentralized network.

Bitcoin was created by a programmer or a group of programmers under the name "Satoshi Nakamoto". But the real creator(s) of Bitcoin is still unknown to the public. Bitcoin is supported by an open source code known as the blockchain, which creates a history of public transactions in "blocks" that are "linked" together to prevent tampering.

This technology creates a permanent record of every transaction and allows every Bitcoin user to work with the same understanding of who owns what. Transactions are funded through Bitcoin's service contract system, which pays cryptocurrency miners for facilitating transactions.

Each coin represents a value of the current Bitcoin price, but you can also own a fraction of each coin. The smallest organization of each Bitcoin is called Satoshi, sharing its name with the creator of Bitcoin.

Each satoshi is one hundred millionth of a Bitcoin, so owning a small amount of Bitcoin is common. Bitcoins can be sent quickly and securely from anywhere in the world, all you need is an internet connection.

The price of Bitcoin is determined by the open market, based on supply and demand. Click the button below to see the current price of Bitcoin in USD (US Dollar), EUR (Euro), GBP (Pound Sterling), CAD (Canadian Dollar), CHF (Swiss Franc), JPY (Japanese Yen) and AUD (Australian Dollar):

Who Controls Bitcoin?

Bitcoin is controlled by mathematics based on clear algorithms that are clearly visible and human decisions are not disturbed. This gives us control over our money. Bitcoin's system is based on distributed ledger technology, commonly known as blockchain.

It represents a ledger of blocks, each of which contains all the transactions in Bitcoin's history. This technology derives its power from its nodes - computers that have Bitcoin software installed and are active in transactions and support the blockchain.

They are spread across the world and everyone can work together to help secure the network. This is why Bitcoin is decentralized - no single entity, whether it is a bank, company, or government, controls the network or can shut it down.

The consensus algorithm that powers the Bitcoin blockchain (commonly referred to as distributed ledger technology) is also called proof of work. Any changes can only be made after several approvals.

This technology is completely transparent and immutable.

Where To Get Bitcoin?

You can easily get your first Bitcoin or at least a fraction of it through the following methods:

1. Crypto Exchange

Most crypto exchanges accept payment methods like bank transfer, cash deposit, credit card, debit card, Paypal, Apple Pay, Google Pay, AdvCash, Alipay, Amazon Gift Card, Moneygram, Payeer, Payoneer, Skrill, TransferWise, Western Union, Remitly or Cash In Person.

Currently, most Crypto Exchanges require personal documents to carry out KYC procedures, but there are still excellent options that allow you to buy Bitcoin anonymously.

2. Bitcoin Mining

Bitcoin mining requires the use of specific equipment and software to support, verify and process Bitcoin network transactions. When Joe wants to send Annie some Bitcoin, he creates a transaction, signs his private key, and broadcasts it to the network.

In this step, miners approve and verify transactions and add them to the Bitcoin blockchain (public ledger). For carrying out this important work, miners receive two types of rewards:

- The first is a transaction confirmation fee.

- The second is a fee to add a new block to the public ledger (Bitcoin blockchain).

Miners are then paid in Bitcoin for their efforts, enabling a peerless network to verify every transaction independently. This network of independent miners also reduces the risk of fraud or false reporting, as multiple miners will confirm the validity of each data block before adding it to the Bitcoin blockchain.

The result of the blockchain is a complete, public and permanent record of every Bitcoin transaction.

3. Bitcoin ATMs

Using a Bitcoin ATM, you have the option to buy Bitcoin by depositing cash or a debit card and following a few basic steps.

ATM Bitcoin is a tool from which you can buy Bitcoin - and sometimes sell - and does not require users to create any kind of account to do so.

4. Accepting Bitcoin At Your Business

To start accepting crypto and Bitcoin as a business, you need to register for a crypto wallet or payment gateway. You can integrate cryptocurrency payment gateways offered by companies like BitPay into your online checkout.

Adding Bitcoin as a payment method has become popular among small businesses with access to cheap and easy to use platforms and applications. You can also accept crypto payments in-person by compatible QR code scanner.

5. Receiving Bitcoin Rewards

Crypto faucets are basically an easy, free and legal method of earning Bitcoin. Many of the popular crypto faucet websites like FaucetPay.io offer secure transactions along with real Bitcoin rewards at no additional cost.

On some crypto faucets you can earn the equivalent of $200 worth of Bitcoin per hour by completing certain tasks online.

6. Accepting Bitcoin Donations

Accepting Bitcoin donations will be an excellent method if you are making valuable content available to the public for free. This is also a method widely used by non-profit organizations, charities, schools and religious organizations looking to reduce the tax burden.

In this method you will be able to use your own crypto wallets and receive donations in Bitcoin without intermediaries.

Where To Store Bitcoin?

If you buy or earn Bitcoin, you will need a safe place to store it.

In this step you will have to decide between two types of Bitcoin wallets:

1. Hot Wallet

In this type of Bitcoin wallet you will store your Bitcoins at third-party providers offering independent online security. In most cases these providers are crypto exchanges that provide applications connected to the internet.

These solutions allow access to your Bitcoin wallet via a computer browser, desktop app or smartphones. This type of Bitcoin wallet is often targeted by hackers and is only recommended for temporary storage.

Use hot wallets only when you need to sell or spend your Bitcoins for your online business.

2. Cold Wallet

In this type of Bitcoin wallet, you will store your Bitcoins on devices that should never connect to the internet. In most cases, you will use encrypted devices like a USB drive that allow you to manage your Bitcoins free of hacker attacks.

Always use cold wallets if you want to safely store your Bitcoins for long periods of time. Unlike banks, anyone can create their own Bitcoin wallet for free. Bitcoins are held by their owners in an anonymous system.

This means that there are no account numbers, names, social security numbers or other identifying information linking Bitcoins to their owners.

How To Multiply Your Bitcoins Every Day?

There is no magic way to multiply your Bitcoin, just like there is no magic way to multiply other currencies. Bitcoin is like any other currency in the world today and you can multiply it every day using these three methods:

1. Crypto Casinos

Online gambling is one of the most popular branches of entertainment, and crypto gambling is growing. Introduced in 2011, the Bitcoin gambling industry has grown by more than 500%. This is not surprising, as crypto gambling sites offer many player benefits including anonymity, amazing bonuses and promotions.

These casinos work in the same way as traditional online casinos, the main difference is that they allow players to deposit, bet and withdraw using cryptocurrencies such as Bitcoin, than traditional fiat currencies like US dollars or euros.

You can use your skill and luck to double your Bitcoin in a few hours.

2. Crypto Brokers

A crypto broker is a company that provides online financial services to users who want to buy or sell cryptocurrencies. To provide this service, a crypto broker charges trading fees for every trade performed by users of its trading platform.

Crypto brokers provide the best place for users who are new to the cryptocurrency market and beginners who want to buy Bitcoin or other cryptocurrencies.

You can use your skill and the leverage offered by the crypto broker to multiply your Bitcoin on every trade.

3. Crypto Trading Robots

In the world of cryptocurrency trading, crypto trading robots perform the task of trading one or more cryptocurrencies on one or more platforms automatically on behalf of the owner or user. Professional crypto trading robots work as long as they use predictive, and automated input or execution technology to make them profitable in crypto trading.

They are used to automate trading strategies and applied for purposes of amplifying trading profits.

Where To Exchange Bitcoin For Cash?

Like many other assets, Bitcoin can be bought and sold using fiat currencies such as the U.S. dollar. The price will depend on the current market value, which can fluctuate significantly from day to day.

You can easily sell Bitcoin or at least a fraction of it through the following methods:

1. Crypto Exchange

You will be able to easily sell Bitcoin on cryptocurrency exchanges to other investors who will pay you in cash using methods such as bank transfers, cash deposit, cash in person or cash by mail.

Currently, most Crypto Exchanges require personal documents to carry out KYC procedures, but there are still excellent options that allow you to sell Bitcoin anonymously.

2. Crypto ATM Cards

Crypto ATM cards are currently being used due to many banking restrictions on crypto transactions. Many cards are suitable for regular shoppers because they work like a shopping rewards card that allows you to get cash back on purchases.

A few cards allow you to earn interest in the crypto held in the account. However, almost all of them allow you to quickly convert crypto to fiat and withdraw crypto in cash at ATMs and pay for goods and services at merchant shops where Visa and MasterCard accepted.

3. Bitcoin ATMs

Using a Bitcoin ATM, you have the option to sell Bitcoin following a few basic steps. ATM Bitcoin is a tool from which you can sell Bitcoin and does not require users to create any kind of account to do so.

When selling Bitcoins you must use your Bitcoin wallet to send the funds to the public address of the buyer's Bitcoin wallet. The only cost associated with sending Bitcoin from one address to another is the transaction fee, which is added to each order and paid to the miner for his work.

Relative to the means of money transfers, the cost of transferring Bitcoin is significantly cheaper. The fee is not fixed, and most of the digital wallets automatically calculate the minimum necessary fee.

Usually, it takes about 10 minutes on average to confirm a transaction through the Bitcoin network. Bitcoin has made international transfers cheaper and faster, making it possible for someone in New York to send $3 billion to someone in Tokyo in minutes and paying less than $2 in fees.

You can access a practical example by clicking here to access the block explorer to visualize this billionaire transaction with negligible fees.

The block explorer is an interface where all transactions on the public ledger are visible.

What Can I Buy With Bitcoin?

Once you buy Bitcoin, you can use them in online transactions wherever they are accepted. In 2010, someone decided to sell their Bitcoins for the first time to buy two pizzas for 10,000 Bitcoins.

I hope that was the best pizza in town, because if that person had kept those bitcoins, they would be worth over $300 million today. Today, many businesses accept Bitcoin as a legitimate payment method.

To avoid falling victim to scammers when making purchases using Bitcoin, it is recommended that you always use some crypto escrow service.

Crypto escrow services are the key to secure payments using Bitcoin.