Bitcoin: What You Need To Know Before You Buy?

Bitcoin: What You Need To Know Before You Buy?

Bitcoin is a digital currency introduced in 2009. Introduced by pseudonymous and mysterious Satoshi Nakamoto. Bitcoin has no physical presence and is only kept on a public ledger that is transparent and accessible to everyone. It is the most popular and has triggered the launch of many other cryptocurrencies.

Before you get started with Bitcoin, there are few things you need to know. As it lets you exchange money and transact differently, you need to acknowledge yourself about it before using it for any transaction.

This coin’s ownership essentially consists of two: a public key and a private key. To receive a coin, it’s enough for the sender to know the address. The public key is derived from the private key which is needed for the transaction to take place. To access a coin, it needs to be in the wallet which is a set of keys.

Bitcoin | Live Crypto

How does Bitcoin work?

It is purely a digital phenomenon, a set of protocols and processes. It uses the decentralized system where transactions are recorded in a distributed ledger called a Blockchain.

Miners run complex rigs to solve puzzles to confirm group of transactions called Blocks. They are rewarded with a small number of bitcoins after successful addition to the blockchain. The ledger is protected against any fraudulent activity via a trust-less system.

For most of them participating in the network, the ins and outs of blockchain, hash rates, and mining are not relevant. Owners usually purchase their cryptocurrency supply through a Bitcoin Exchange.

Some of the key concepts to keep in mind:

  • You need to have a secure wallet for storage
  • Price is Volatile
  • Payments are irreversible
  • It is not anonymous
  • Unconfirmed transactions aren’t secure
  • It is still experimental
  • It is not an official currency yet

Bitcoin has a finite supply

How to buy in India?

Its value is derived from its adoption as a store of value and payment system as well as its finite supply and decreasing inflation. Investing or trading only requires an account on any exchange/platform.

Steps to buy:

  • Choose an Exchange/Platform
  • Complete KYC
  • Add a bank account for payments
  • Placing orders
  • Safe storing

It can also be bought using Paypal using their account. There are other many resources to buy it nowadays. Also, there are Bitcoin ATMs that act like in-person Bitcoin Exchanges which enable to insertion of cash into the machine and the use of it to purchase. To find out the nearest atm’s visit Coin ATM Radar.

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Abhay Naik

Tech Enthusiast | Cryptos & Stocks Trading