The Best Ways To Get Bitcoin: A Complete Simple Guide

Bitcoin Cryptocurrency

Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank. 

Bitcoin’s creator, Satoshi Nakamoto, released the original version of Bitcoin in 2008. Satoshi Nakamoto was able to release Bitcoin after solving a mathematical problem called the “Hash Function Clique” which uses cryptography to solve this problem in a way that is secure, fast and less expensive than conventional financial systems.

Bitcoin uses strong encryption methods that are only known by the miners that are running the network. Bitcoin uses blockchain technology which gives a shared record of transactions that can be viewed by everyone in the network. Some analysts call Bitcoin the “Web 3.0 of Money.”

What is Bitcoin?

Bitcoin is a virtual currency, backed by nothing. It is not backed by any physical commodity like gold or silver. Unlike conventional currency, you can’t write a check for it and you don’t even need to be a bank to accept it for payment. It is decentralized and fully digital. 

In order to buy, sell or exchange it, you have to download an app and register with your personal identification number. For transactions, Bitcoin transactions are handled by private online parties called exchanges that convert one cryptocurrency into another, using an algorithm called “mining.” The digital coin that you receive is called a “Bitcoin” and will allow you to continue to exchange digital currencies with others. When you send a Bitcoin transaction, you don’t send a physical coin.

How to get started with Bitcoin

It’s pretty much what it says: you start with a wallet, the software that protects your bitcoins. (Read our full guide on how to make a Bitcoin wallet.) You set up a wallet with a company called Coinbase, and they’ll store your Bitcoins for you. But really, what it means is that you can store your bitcoins online. And then when you want to spend your bitcoins, you can use a wallet from another company like, say, Coinbase, to exchange them into other currency, like US dollars. Once you’ve got a wallet and a wallet provider, it’s time to add a Bitcoin address. This is a unique identifying string of numbers that’s key to getting bitcoins in and out of your wallet. You can then keep an eye out for deals where you can sell bitcoins, or buy them.

How to Buy Bitcoin

As previously mentioned, Bitcoins can only be purchased from a peer-to-peer network.

The Complete Guide To Spending Bitcoin

While many governments prohibit or have banned trading in bitcoin, there are many legal ways to invest in bitcoins. There are many ways to buy bitcoins, from purchasing them online, through mining bitcoins or exchanging them for dollars, but the easiest way is by using bitcoin exchanges. There are some websites like Coinbase that let you do all your bitcoin transactions. Coinbase accepts over 600 cryptocurrencies and build largest exchange in the world. To get bitcoins, you need to get your account set up through a personal bank or exchange such as Coinbase or Wazirx. If you don’t have a bank account, you can make a payment or deposit of your money through a bank account.

Troubleshooting Tips For Buying and Selling Bitcoin

If you are looking for complete instructions on how to buy Bitcoin, there are plenty of online resources. But remember this advice for all Bitcoin newbies: Make sure you are dealing with a bitcoin exchange with a reputation. When I first came across Bitcoin, it was an online ad for a service called PoodleCorp. PoodleCorp offered cheap international airfare and hotel rooms, all the transactions in Bitcoin. I actually got my hotel room for a fraction of its usual price. PoodleCorp works like many other international online travel agencies. You’ll search a destination for the best deals, make your selection, pay for your stay and arrange for the airline tickets and accommodations. There’s no need to wait in long lines or go through confusing check-in stations.

Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without an intermediary like a bank.