Bitcoins or BTC represent a digital currency used worldwide, conceived as a person-to-person payment system. With the fees being lower than those for credit card processing, bitcoin usage seems to be truly advantageous. There are low to no-fees for processing. Additionally, bitcoins are used within a system that is owned by no institution or authority but the community. Moreover, the currency can be used with online as well as with offline businesses. There is a series of notable vendors on the web who accept Bitcoins as payment, including Reddit among them. How do you setup an account for bitcoins then and how do you acquire your first coins of the kind?
There is a need to do proper research about the Binance website if you want to register on it. The gathering of the information about the exchange is essential so that you can earn more profits. The gathering of the information will allow you to make more money on the crypto exchange.
Acquiring Your First Bitcoin
Bitcoin is a technology which does not require any central authority or bank to operate. The network manages the transactions collectively and also issues the bitcoins. This can happen because the Bitcoin technology is open source. The advantages derived from here are not to be met with any other payment system. However, prospective bitcoin users seem to face the same problem – they have no idea how to acquire their first bitcoin.
There is more than one way to obtain bitcoins. Here are the main methods:
Exchanging (buy or sell bitcoins for cash)
Selling items to get bitcoins.
Accepting a payment in bitcoins in exchange for a good or service.
One may buy bitcoins from a friend or anyone near, but also purchase these from an online exchange point using their own bank account.
Create a Wallet.
This is an application or a website that stores bitcoins and is used for transactions. You can own a bitcoin balance only when possessing a wallet. Wallets can interact with each other just like email addresses. Free wallet services are available online. There are wallet apps for Windows, Linux and Mac, but there is also an Android app. The user needs to sign up and create a password. Also, one may use the desktop client from Bitcoin.org to do this.
Identify the Bitcoin Address.
The user must log in to the wallet. This holds the address, which is a long sequence of characters, used as an account to store your bitcoins in. Each address comes with a private key which has to be kept secret.
Find a Dealer.
This is known to be the most challenging part for new users. If you don’t know someone who can make you a deal, then proceed to observing the market, searching for bitcoin owners around and ask for the reputable exchange locations. We will discuss these in the following section.
Bitcoins cannot be bought with PayPal or with credit cards – at least not directly and not without involving risks. A new user or investor needs to know the purchase sources precisely.
At Cryptxchange users can deposit money at a bank near them and then use these to buy bitcoins. They may also do a wire transfer. There is no account verification and the user is not required to create an account. This cash method is employed internationally. BitBrothersLLC are a similar, high-ranked alternative to this service.
Individuals may also trade using the Mt.Gox platform, protected by Akamai and using encrypted data. The application is free to set up and can be used on mobile phones as well. Users can trade in their local currency with the entire world using Mt.Gox, at any time of the day and night and on any day of the year.
TryBTC is a place where you can obtain free bitcoins and learn about trading them. The Bitcoin Faucet is a similar one.
Auction platforms are also good for acquiring bitcoins. Ebay or CryptoCoinsAuction do not charge additionally and let people obtain their virtual currency quickly. However, note that such online auctions are not allowed in every country on the globe.
With web applications like Coinbase one can convert local currency to bitcoins and then store these into a wallet. Signing up and converting requires connecting to a verified bank account.
Mining for bitcoins is considered laborious and confusing for the average user. There are special programs for mining, which are rather complicated and are designed or the advanced users. In order to receive that first Bitcoin, you need to setup a Bitcoin client.
The Bitcoin Wallet
Wallets enable users to make and also accept Bitcoin payments. These are made to store public keys, each paired to a private key. A wallet can have the form of a mobile device application (app), a computer application, a paper, or hardware. When one makes a payment from a certain address (wallet), the customer must present the private key. The public key is the address to which the payment is sent.
A user who needs to make a payment has to request a master transaction list update. The network then validates the transaction. One such move can be completed instantly, but in many cases, the Bitcoin miners need about 10 minutes to record a payment and confirm it as unique. There are payment processing fees as well, which speed up a transaction, but these are optional. In any case, it is still cheaper than making any other kind of money transfer.
Interesting Facts about the Bitcoin
Bitcoin was introduced in 2009 by Satoshi Nakamoto as open sourced software. Bitcoins are the world’s first cryptocurrency. It is described through this term because cryptography is employed to create and transfer money. There is no digital note exchange with a payment.
Bitcoins are also subject of theft, like any other currency. Offline key storage, however, minimizes such risks.
The value of bitcoin as currency is still highly volatile. For this reason, its use is limited and not many people are willing to use it. However, a growing number of businesses is accepting bitcoins – not just online businesses. Speculators trade bitcoins as investment, expecting it to become more valuable once its popularity increases.