Bitcoin is an innovative payment systеm
What is Bitcoin?
According to Wikipedia, Bitcoin is a peer-to-peer payment systеm, using the unit with this name to account of transactions. Cryptographic methods are used to provide, operate, maintain and protect the systеm, and all information about transactions between systеm addresses is available in the open form. This technology of conducting transactions and storing data about them is called blockchain. Creator of Bitcoin, Satoshi Nakamoto, a very mysterious person and hard to find about him reliable facts. Bitcoin is the first and most famous cryptocurrency, its name has become a household name. It has the largest capitalization among cryptocurrencies. Since its foundation, in 2009, the exchange rate of bitcoin in dollars has changed very much – from $0.40 to $64,800 per 1 coin. At the time of this writing, 1 Bitcoin is worth approximately $23,150. As you can see, the price of Bitcoin (like most other cryptocurrencies) is a very volatile value. And despite this, a large number of hedge funds bought Bitcoin in their portfolios.
Bitcoin mining
How to get Bitcoin? The first way is to buy it. The second is tomine. Mining is the process of mining cryptocurrencies, most often bitcoin. If you decide to beckon, you should know that in addition to earning money, you maintain the systеm of your chosen cryptocurrency. For example, bitcoin miners not only receive rewards for each mined block, but also confirm transactions on the network, thus helping the owner of bitcoin to send and receive payments without failures and delays. Miners verify transactions, confirm them and write them into a block (this is a chain of interconnected blocks and there is a blockchain). When most miners copy the last block, the transaction is posted and executed.
How to buy Bitcoin?
Buying Bitcoin is best through proven services. It can be a crypto-exchange or an exchanger, such as Leoexchanger! Here you can see the current exchange rate and choose a convenient exchange method.
How to work with Bitcoin?
The main areas of use of Bitcoin:
Pay for goods and services. Every year more and more goods can be bought with cryptocurrencies. As of 2022, almost everything can be bought with cryptocurrencies, from small goods to cars and real estate.
Trading. One option is to try to constantly buy and sell Bitcoins, making money on price changes.
Long-term investment. If trading is not for you, just buy bitcoin and keep it for a long time. There are many chances that it will rise in price and it will be possible to sell it profitably.
How to store bitcoin?
There are two main ways to store bitcoin – on an exchange and in a crypto wallet.
- Exchange. If you bought Bitcoin on an exchange, for example at WhiteBit, you can leave it there on your account. This is the easiest way as it does not require any additional software. But there is also a minus – physically, your Bitcoin is not with you. If you lose access to your account on the exchange, you lose access to your Bitcoin.
- Crypto wallet. After you buy cryptocurrency, you can transfer it to your crypto wallet and leave it there. There are many parameters by which crypto wallets can be classified. The main one is a hot/cold wallet. A hot wallet has a permanent connection to the network, while a cold one does not. Also, they are divided by location – browser, online, desktop, mobile, hardware. How to choose a wallet that is right for you? Read the reviews of other users and decide which one is the most convenient for you.
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