An Expert’s Guide to Navigating the Bitcoin World
Bitcoin is the first and biggest cryptocurrency designed to pay for goods and services and is accessible to anyone who has an internet connection. The Bitcoin world is still a new concept to many people around the globe. This is because many don’t understand how Bitcoin works, the problems it solves, and the advantages that it has over paper currency. It was developed in 2008 by someone who used the pseudonym ‘Satoshi Nakamoto.’ This particular individual published a paper elaborating on how Bitcoin could work and the benefits that people could reap. After a year, Bitcoin became well-known, mined, and traded. Bitcoins are stored in a Bitcoin wallet and all transactions are done electronically.
- Mining Bitcoins
Bitcoin mining is a way of creating or securing Bitcoins through solving a block and getting Bitcoins in return. When mining bitcoins, you need to take into consideration the:
- Rules of operating the network.
- Software that makes the transactions.
- Network of computers running the software.
- Features of Bitcoin
The following are some of the features of Bitcoin:
Bitcoin is decentralized
Bitcoin is not owned by any government or central bank. Anyone is qualified to use blockchain technology to make bitcoin transactions. This characteristic of Bitcoin makes trading both beneficial and risky to people making transactions. As the owner of some bitcoins, you have a responsibility to ensure their safety because there would be no authority to complain to if anything goes wrong.
Transactions are irreversible
A Bitcoin transaction cannot be reversed after confirmation. This means that no one has the ability to reverse any transactions. It also means that no one can block transactions anywhere in the world. The person receiving the funds is the only one who can refund the sender.
The price is volatile
Bitcoin is considered a high-risk asset because its price can change rapidly. The prices can increase or decrease over a short period of time and people are discouraged from keeping their savings in Bitcoin.
Fast and global
Bitcoin transactions are instant and confirmation is done in a few minutes. Anyone with access to the internet can trade in Bitcoins anywhere around the world.
It is pseudo-anonymous
Every Bitcoin transaction is public and stored permanently in the network. However, you can remain anonymous as you trade in Bitcoins.
- Bitcoin transactions
Before you start trading in Bitcoin, you have to install wallet software. The Bitcoin wallet you choose must be secure to handle all of your transactions. Don’t worry, you can download a NakitCoins wallet and make instant transaction with other users.
- Problems that Bitcoin solves
Human error
When making transactions with paper currency, there is a margin for human error. Trading in Bitcoins uses a software that ensures that there are no mistakes during transactions.
Transaction fees
When you make transactions through a bank or other money transfer services, there is a definite transaction fee that is charged depending on the amount of money. Bitcoin trading does not involve transaction fees.
Theft
Unless the owner is careless during transactions and either transfers to the wrong person or is scammed, there is no theft of Bitcoins from your wallet. With normal currency, theft cases are very common.
Conclusion
There is a lot to learn in the world of Bitcoin before you decide to start trading. Once you know how Bitcoins are mined, how they work when making transactions, and the advantages that Bitcoin has over other currencies, you are ready to start trading.
