show
show
Witnessing the digital breakthrough

Bitcoin and Crypto for Newbies

22 December 2020 10:21, UTC
Bitcoin and Crypto for Newbies

When you’re a newbie in the crypto world, everything can seem confusing. Luckily, it’s not rocket science, so you can get the hang of it quickly. By the end of this short guide to Bitcoin and crypto for beginners, you’ll understand what it’s all about. Let’s start with the basics.

What Is Bitcoin?

Bitcoin is a cryptocurrency, which is a virtual currency that you can exchange electronically. It uses digital files as money in a peer-to-peer (P2P) electronic cash system. A mysterious Satoshi Nakamoto (many believe that’s a pseudonym) introduced that system back in 2009.

The system runs on blockchain technology, which is a public distributed ledger that stores all records of crypto transactions. The technology allows users to store those “blocks” of records on thousands of worldwide servers. It relies on cryptography to ensure data security, which means no one can forge or misuse Bitcoin or other cryptocurrencies.

5 Key Attributes of Bitcoin

Thanks to blockchain technology, Bitcoin has the following features.

1. Decentralization

When Nakamoto created Bitcoin, he had one goal in mind - to make a decentralized digital currency. That means that there are no intermediaries in crypto transactions, such as banks or governing authorities. Bitcoin and other cryptocurrencies are independent. No one controls them, so there are no transaction fees.

2. Immutability

Immutability means no one can alter any record of data on the blockchain. Once there’s a new block, it cannot change in any way, ensuring security and integrity. No one can modify, duplicate, or erase transactions. There’s no room for double-spending and stealing Bitcoin or other cryptocurrencies.

3. Transparency

Since they take place on a public distributed ledger that stores records permanently, all Bitcoin transactions are traceable. However, it’s nearly impossible to trace a transaction back to you, so you don’t have to worry about potential hackers. Also, everything’s encrypted, remember?

4. Anonymity

Despite the network’s transparency, you can still remain anonymous. That’s because you don’t have to use personal information when creating your crypto wallet.

5. Non-repudiation

This feature ensures no denying of crypto transactions. When you send BTC to someone, you can’t change your mind and deny the transaction. That’s great for avoiding scammers. No one can trick you into resending them BTC because they allegedly didn’t receive them.

image.png

How Can You Get Bitcoin?

There are two ways of getting Bitcoin:

  1. Buying it on a cryptocurrency exchange platform
  2. Mining new coins

NordikCoin is one of the best cryptocurrency exchanges where you can buy Bitcoin in minutes. The popular Estonia-based company offers simplicity, trust, and a high level of security.

When registering for an account, you can choose from a variety of electronic ID solutions. Once you sign up, you get your free Bitcoin wallet. To buy Bitcoin, simply choose your desired amount, select your preferred fiat currency, and click on the “Buy Bitcoin” button. You can use any VISA or Mastercard credit or debit card to complete the transaction.

Now, you don’t have to buy 1 BTC. You can choose any amount, such as 0.1 BTC, 0.5 BTC, and so on. It all depends on how much you are willing (or can afford) to spend to get started with crypto.

How Can You Mine Bitcoin?

Bitcoin mining is the process of adding new Bitcoin transactions to the blockchain. It’s the process of verifying transactions and recording them on the network.

When you mine Bitcoin, you solve complex math problems to add new blocks of transactions, which helps secure the network. It takes about ten minutes to add a new block, that is, mine one Bitcoin. For every block you add, you receive a reward. In 2020, you can receive 6.25 BTC as a reward for mining one Bitcoin. Remember that you need very powerful (and expensive) computer equipment to be a Bitcoin miner. It’s simpler to buy BTC, but mining can pay off - big time.

image.png

What Is a Bitcoin Wallet?

Quite self-explanatory, a Bitcoin wallet is where you store your BTC. You have one or more unique private keys to access it, so no one but you could decrypt your data.

There are four types of Bitcoin wallets:

  • Web-based
  • Desktop
  • Mobile
  • Hardware

When you use a web-based Bitcoin wallet, such as the one you get at NordikCoin, your vendor stores your private keys on their server. With a desktop wallet, you have full control over it, and you can store your private keys on your computer. However, you’d need to invest in excellent security solutions to safeguard your data and digital money.

It’s the same with mobile wallets, which are even more susceptible to hacker attacks. Hardware Bitcoin wallets provide the highest level of security. They’re portable devices similar to flash drives. The problem is you can lose such a wallet. That’s why web-based wallets might be the best option, as long as you choose a reliable provider like NordikCoin.

What Can You Do with Bitcoin?

You can buy a wide variety of products and services, as there are many companies that accept Bitcoin as payment.

You can purchase electronics, kitchen appliances, clothes, jewelry, games, and a host of other products. You can also invest in Bitcoin, but keep in mind that’s very risky. Bitcoin’s value is highly volatile, so you may lose a lot before you make some earnings, if ever.

These days, Bitcoin is flirting with the $20,000 mark, but it keeps pulling back. No one knows when it might plummet again, so be extra careful if you want to invest.

Will You Mine or Buy Bitcoin?

Having even one BTC in your wallet could change your life dramatically. So, are you thinking about buying it? Perhaps mining it sounds more attractive? If you want to get started with Bitcoin, we highly recommend you sign up at NordikCoin. Get your free Bitcoin wallet today and see where the crypto world takes you!

Image: https://www.pexels.com/photo/close-up-of-coins-315788/



Read the best crypto news analysis here! bitnewstoday.com Bitcoin, investments, regulation and other cryptocurrencies
Found a mistake? Select the text and press CTRL+ENTER
Leave a comment
Leave a comment
Report a mistake