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Bitcoin, formerly known as decentralized digital currency, is basically currencies that can be sent over the Internet. 2009 was the year that bitcoin was born. The name of the producer is unknown, however, this person was given aka Satoshi Nakamoto.

Benefits of bitcoin

Bitcoin is transacted directly from person to person over the Internet. No bank or clearinghouse is required to act as an intermediary. Thanks to this, transaction fees are very low, they can be used in all countries of the world. Bitcoin accounts cannot be frozen, the prerequisites for opening them do not exist, the same for limits. Every day more merchants start accepting them. You can buy whatever you want with them.

How bitcoin works

It is possible to convert dollars, euros or other currencies into bitcoins. You can buy and sell as if it were the currency of another country. To keep your bitcoins, you have to store them in something called wallets. These wallets are found on your computer, mobile device, or third-party websites. Sending bitcoins is very simple. It is as easy as sending an email. You can buy practically anything with bitcoin.

Why Bitcoins?

Bitcoins can be used anonymously to purchase any type of merchandise. International payments are extremely easy and very cheap. The reason for this is that bitcoins are not really tied to any country. They are not subject to any kind of regulation. Small businesses love them, as they do not include credit card fees. There are people who buy bitcoins only for the purpose of investing, hoping that they will increase in value.

Ways to get bitcoins.

1) Buy from Exchange: People can buy or sell bitcoins on sites called Bitcoin Exchange. They do this using the currencies of their country or near or in any other currency.

2) Transfers - People can simply send bitcoins to each other through their mobile phones, computers or online platforms. This is similar to sending cash digitally.

3) Mining: The network is secured by some people called miners. They are regularly rewarded for all newly verified transactions. These transactions are fully verified and then known as a transparent public ledger. These people mine these bitcoins, using computer hardware to solve difficult math problems. Miners spend a lot of money on hardware. Today, there is something called cloud mining. By using cloud mining, miners only put money into third-party websites, these sites provide all the necessary infrastructure to reduce energy and hardware consumption expenses.

Store and save bitcoins.

These bitcoins are called digital wallets. These wallets exist in the cloud or on people's computers. A wallet is somewhat similar to a virtual bank account. These wallets allow people to send or receive bitcoins, pay for things, or simply store bitcoins. Unlike bank accounts, these bitcoin wallets are never FDIC insured.

Types of purses.

1) Cloud Wallet - The advantage of having a cloud wallet is that people do not need to install any software on their computers and wait for long synchronized processes. The downside is that the cloud can be hacked and people can lose their bitcoins. However, these sites are very safe.

2) Wallet on computer: The advantage of having a wallet on a computer is that people keep their bitcoins safe from the rest of the Internet. The downside is that people can remove them by formatting computers or causing viruses.


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