BTC is a decentralized currency that can be used worldwide as a payment mode, and you can use bitcoin for your cross-border transactions to save your transaction fees. There is no physical form available of this coin and it is a completely digital currency based on blockchain technology. You can use bitcoin as a commodity and trade BitiCodes from an exchange.
There are multiple exchanges available for bitcoin and crypto trading, from where you can trade such digital assets through your exchange account. But you cannot store such coins in your wallet or locker, and you need to use a digital wallet to store your BTC. Make sure, you must choose a trading platform, which is secure and trustworthy, and you can use BitQT in this regard. Here, you can find some basic things about bitcoin, which will help you to become a successful trader.
Overview of Bitcoins- Points To Note
Bitcoin is a digital currency that uses peer-to-peer technology to operate with no central authority or banks, providing a service to users. Bitcoin can be used for transactions, or it can also be held as an investment.
Bitcoins are created during the mining process that uses computer processing power to solve complex algorithms. This method of creating Bitcoins is called mining and anyone can participate in this process. The more computing power you contribute to solving an algorithm, the more chances you have of being rewarded with a block reward. Each block reward is at least 12.5 BTC, which is currently worth around $50k USD per BTC block reward.
Bitcoin was launched in 2009 by Satoshi Nakamoto who left the project in 2011 without revealing his identity or saying why he left the project. In October 2017, Newsweek named Craig Wright as Satoshi Nakamoto and claimed that he had been part of Satoshi’s team since 2011; however, Wright later publicly denied these claims and stated that he was not involved with Bitcoin at all before his involvement in December 2010.
Important things to know about bitcoin for beginners:
- Bitcoin is a decentralized currency: It is a virtual currency that cannot be controlled or mined by any government or central bank, and they cannot even track your transactions made with BTC. Fiat currencies are operated by a central bank, and you cannot use your fiat currency without a bank account. You can make a transaction with fiat currency like the dollar, Euro or rupee once your bank approved your transaction. So, it can get affected by inflation and you can lose your funds during economic rescission. You can avoid such hassles by using BTC, as it cannot be controlled by any government or bank, and BTC does not get affected by market inflation.
- Bitcoin mining process: Bitcoin mining is a process through which miners can add new coins to the BTC network. You can start BTC mining to earn bitcoin as a reward, but you need to spend a huge amount to set up your mining infrastructure, as mining BTC requires a huge power and many machines. The primary responsibility of a miner is to keep the BTC network secured by preventing double spending and fraud transactions with BTC, and they can approve your transaction with BTC to add a new block to the BTC network.
- The working model of BTC: Bitcoin is based on blockchain technology where users can send bitcoins across the BTC network without going through a centralized bank. It is a ledger where all transactions are stored and people can access this public ledger from anywhere. You can consider it as an alternative currency to fiat currency, and you can now use your coins in retail stores and online shops too.
- Use a bitcoin wallet: As stated above that you must use a digital wallet to store your coins. There are various types of BTC wallets available in the market such as hot wallets, cold wallets and paper wallets. Hot wallets are app-based, and you can use such wallets on your mobile phone. Cold wallets are hardware-based, and you need to connect a device to your system to access your wallet.