Bitcoins are a type of currency. They have real world value and can be used in certain shops to purchase stuff and they are only stored electronically. Bitcoins can also be sold for currencies that you already are familiar with and which probably works better in your country. Bitcoins are collected by computers all around the world which are doing something that is called “mining”. What a mining computer does is to confirm transactions. If Bitcoins are sent between two people the transaction has to be confirmed before the money can come trough and this is the job of a miner and this is the most common way of earning Bitcoins.
How to use Bitcoins
Bitcoins has real money value. They can, as with any other currencies, gain or lose value. They can be stored in special wallets for later use on shops such as these ones or in hopes of their values rising to be sold for a higher profit. Bitcoins can be used to trade in crypto currencies on sites such as Poloniex or Bittrex. A bunch of available cryptocurrencies (Bitcoin is a cryptocurrency) that works similarly like Bitcoins can be found on coinmarketcap.com. If you wish to sell Bitcoins and transfer the money to your bank account you can also do that using sites such as Coinbase or BitPanda.
How to store Bitcoins
Bitcoins are stored in wallets. There are a few to choose from but a couple of common ones are Jaxx, Electrum or Armory. You will find a lot of useful information about wallets on weusecoins.com. When you get yourself a wallet you get some string that may look something like “17u42nBqsr6GYd17e8QxXFaqVKTky6RNg3”. This will be the address that you use to send yourself Bitcoins. If you get a wallet on your computer the Bitcoins are physically stored on your computer in files so you will want to be careful not to delete your wallet with Bitcoins in it because that will delete your Bitcoins. If you are using the Jaxx wallet the first thing you should do is to take a look at backing the wallet up. You will find this info in the Tool section of the wallet and when your computer crashes you’ll want to have done that in case data on your hard drive can’t be restored. We also have a great Jaxx wallet tutorial for you who wish to quickly get going with a wallet on your mobile devices.
An example of a use case for Bitcoins can look like the this:
- Join this sites experiment
- Set it up to send the profits to your Jaxx wallet for storage
- Gathered any sum of Bitcoins you want to withdraw
- Send them to your BitPanda account (registering on BitPanda will give you another address to be used for that account which you will send them to)
- Sell those bitcoins on BitPanda and transfer the money to your bank account
- Go buy yourself something that you’ve always wanted, like a pony
Who created the Bitcoin?
The invention of Bitcoin was published on the 31st of October 2008 by Satoshi Nakamoto to a cryptography mailing list in a research paper called “Bitcoin: A Peer-to-Peer Electronic Cash System”.
If you are interested in investing in Bitcoins they can be bought on BitPanda or Coinbase as a couple of examples. They can be bought as an investment in hopes for a rise in value so doing some research about what is going to happen in the Bitcoin world would help you to predict any change of the Bitcoin value. In general you’ll want to buy Bitcoins at the bottom of a dip and sell at the top of a rise or hold them for long term investments. Never spend more than you can afford to lose, trading cryptocurrencies is always very risky.