What is bitcoin?
Have you heard about bitcoin many times but have no idea what it is and want to figure it out? In this article, we will explain to you what is btc, how it works, where you can buy, sell and store it.
Bitcoin
Bitcoin is the first cryptocurrency, created in 2008 by a person or a group of people under the pseudonym Satoshi Nakamoto. Now more about what cryptocurrency.
Imagine that you order sneakers in an online store. After you remit money to its seller. In the case of fiat currencies: the usual dollars, euros, yuan, the money is first sent not to the seller, but to the intermediary - a bank. That in turn, takes a commission, monitors and checks you. It can block your card if you transfer a lot of money or you are under sanctions.
If you use cryptocurrency, you’re able to buy the sneakers with digital coins, which are represented by numbers on your computer screen, cell phone, tablet, etc. This time without any bank. For example, 0.25 bitcoin coins will be transferred directly to the seller. Your wallets will be anonymous, and payments are transparent. It is possible, due to the fact that all functions of a bank are performed via blockchain.
Blockchain
A blockchain is a database represented as a chain of blocks that contain some information. It is a global code that is open to everybody. Blockchain is used in many areas: healthcare, logistics and intellectual property. The information stored in a blockchain can’t be changed or deleted. A blockchain contains various information. It depends on its type. The bitcoin blockchain contains information about a sender, a recipient and the number of coins that have been sent. Below is a visible example of how blockchain works.
A block has its hash and the hash of the previous block. A hash is an identifier of information. It’s a unique key, like a pin code. It identifies a block and all of its content. When a programmer creates a block is created, its hash is immediately created, too. If a block is changed, its hash changes as well. If the hash of the block changes, then it is a completely different block. This applies to all hashes and blocks. For example, there is a chain of three blocks, you decide to change the second one. This means that its hash will also be changed. After that, the third one will become invalid, because it no longer contains the hash of the previous block. But nothing will happen to the first one, since it does not have the previous hash. It is the very first. This is how blocks and hashes in the blockchain are interconnected.
Where to buy and sell bitcoin?
You can buy and sell bitcoin on online cryptocurrency exchanges, P2P exchanges, cryptocurrency wallets and mobile applications.
Online cryptocurrency exchanges
The most popular ones are Binance, Bitfinex and Kukoin. To buy a cryptocurrency, for example, on the same Binannce you need to do the following steps:
- Register on the site of the exchange
- Get verified and confirm your identity
- Make a deposit in fiat currency
- Go to the tab "FIAT markets" and choose your fiat currency
- Choose your cryptocurrency, in our case you should define bitcoin
- Choose the amount you want to buy from the open menu
P2P-exchangers
The most popular ones are Bybit, Binance, OKEX, Bitzlato, Paxful, Bitpapa, Kukoin, WhiteBIT. All exchangers have ads. You can choose the rate that suits you and buy or sell bitcoins. As well as with online exchanges, you need to be verified on P2P-exchangers.
Cryptocurrency wallets
Among the most famous cryptocurrency wallets are Trust wallet, Exodus, MetaMask, Atomic Wallet, Jaxx Liberty, MyEtherWallet (MEW). However, when you buy or sell bitcoins on cryptocurrency wallets, commissions can be too large. You also need to pass verification.
Mobile apps
The most popular mobile apps for buying and selling cryptocurrencies are e-Toro, Coinbaise, Gemini and Kraken. Each of them has its own commissions, and you can choose the most suitable option for you.
Where to store bitcoin?
The safest way to store any cryptocurrency is on hardware wallets like Ledger or Trezor. Mobile bitcoin wallets, mobile crypto wallets and online wallets are also suitable for this.
We hope the article was useful for you. And now you know whats bitcoin, how it works, where to buy, sell, and store it.
