These days, everywhere you turn, there is talk or advert about Bitcoin. It has become so popular that may web services are using it as a form of payment. Some people are even using it to pay for property, dowry and to settle debts. We all know it’s a digital currency. But the question is: where does it originate from? And what parameters are used to determine Bitcoin value?
Well, as we’ve stated earlier, Bitcoin is a digital currency or cryptocurrency that is used to transact business over the internet. It works a lot like the paper money, only that all transactions occur online, peer-to-peer (meaning there is no intermediary like a bank or any regulatory agency), and it uses wallet software to store Bitcoins.
How to own Bitcoins
It takes work to own Bitcoins. You have two options when you want to acquire Bitcoins: Mine them or purchase them. Mining takes a ton of effort and time. Plus, you must have powerful computer systems and power. It’s simply costly to mine Bitcoins.
How to buy Bitcoin
Like keeping money in a bank, you need to store Bitcoins in a software called Bitcoin wallet. You need to have sufficient disc space to have a Bitcoin wallet. With a Bitcoin wallet, you can buy Bitcoins from a seller and store it. To create an online wallet, follow the steps below:
The first step to creating a Bitcoin wallet is to sign up for a service like Coinbase (US) or My Wallet (UK). In this column, we’ll explain the process using Coinbase.
When on Coinbase’s home page, select ‘’Linked Accounts.’’ You’ll then need to add your bank account. It takes days for the linking to complete, so if you want to buy Bitcoins early, start early.
When you get the message stating that the link up was successful, select the Buy/Sell Bitcoins Link on Coinbase. You’ll then enter the number of Bitcoins you want to Buy, select your bank account and finally select the Buy Bitcoins button. You’ll get notification within a few days when the Bitcoins have checked into your wallet.
To mine Bitcoin, you need a powerful computer system and enough power. You’ll need to install the software that processes sophisticated mathematical equations. Ideally, mining is verifying transactions that happen on the blockchain. Once you have successfully verified a transaction, you are paid in Bitcoins for the job done.
Once you have a Bitcoin wallet and some Bitcoins, you can decide to sell them. You can also trade Bitcoin by buying them at a lower price and selling them at a higher price. If you invest the right way and you have patience, you can make good money with Bitcoin.