Bitcoin is the best-known cryptocurrency, introduced in 2009. Over the years, many large companies have started to be interested in bitcoins and their underlying technology. Also, more and more online stores started to accept bitcoins as a means of payment. Thus, ensuring that the price has risen explosively! And the end does not seem to be in sight yet.
How does Bitcoin work?
The technique behind the Bitcoin network is called blockchain and is used by many cryptocurrencies. Although the technology is fairly complex, it is very easy for the average user to use. Many things happen in the background, so you don’t have to deal with this as a user. Important to know: The Bitcoin network is decentralized: it is not regulated by a central authority such as a bank or government. Anyone can become part of the network; any connected computer connects to other computers on the network.
Characteristics of Bitcoin
Centralized currency. There is no overarching body such as a bank or government that can manipulate the price. Instead, transactions go directly from person to person. Very low transaction fees. Almost all transactions are free of charge. However, users are encouraged to make a small voluntary contribution for faster confirmation of transactions and to reward miners. We’re talking about a few cents here.
Very secure. The security of bitcoin is based on digital signatures, tracking of all transactions ever made, encryption, and the composite computing power of all connected bitcoin computers (“nodes”). However, no technology can overcome the vulnerability of individuals who manage bitcoin wallets. Therefore, it is your responsibility to keep your wallet secure!
Bitcoin can be used anonymously, but Please note! Bitcoin transactions are not private, and they are publicly available. Because of the decentralized way that bitcoin transactions are processed (the blockchain), all transactions are recorded and available to everyone in the Bitcoin network. However, your name is not known.
The price can fluctuate; in 2017, the price has already more than doubled. Anyone who had bought in 3 years ago would have increased their deposit about fivefold!
Getting Started With Bitcoin Made Easy
Starting to earn bitcoins may seem complicated, but it is very easy! First, you need to open a wallet that you will use to store bitcoins. There are different types of wallets: online, mobile, desktop, and hardware. On this page, you can read more about them.
Once you have opened your wallet, you can start buying bitcoins. Several websites offer to buy bitcoins through an Ideal transaction, so just by paying with Euros. The process is straightforward and low-threshold. In some cases, it can be interesting to buy bitcoins abroad with a SEPA transfer.