What is BTC: The Beginner’s Guide to Bitcoin
If you’ve been reading the newspaper for the last few years, you may have heard about a few forward-thinking young people who got rich off investing in bitcoin– but do you really know what that means?
“What is BTC?” is the question many adults find themselves asking these days. With the cryptocurrency market booming, the answer has never been more important.
Read on to find out all you need to know about bitcoin, how they work, and why they are so incredibly valuable.
What is BTC?
Bitcoin emerged in the scene in 2008 as a form of cryptocurrency. Bitcoin is an alternative to regular currency and can be used to avoid paying fees and interest on transactions. Through the decentralized network, you can control your own fund’s movement.
When you use bitcoin, you will have a distinct 16-digit code that allows purchasers to send you funds. This code is like an account number, so giving accurate numbers to whoever is sending you funds is critical. Once a transaction is made in the network, there is no way to reverse it.
Another fun fact about bitcoin is that it’s pseudonymous. Since your real-world identity isn’t connected to your 16-digit reference number, there is no way to track your who is receiving a transaction.
How Do I Get a Bitcoin?
There are two different ways to get a bitcoin. The first is to buy one, and the second is to mine them.
Mining bitcoin is the term for verifying other bitcoin transactions. The coin is a reward for using your computational power to verify other bitcoin transactions. Mining in this way allows transactions to be secure and reliable since they take place across the network.
As time goes on, mining for bitcoins has become more difficult and, today, the equipment required to mine has become very expensive.
How Do I Store My Bitcoin?
Bitcoin is stored in either a “hot wallet” or “cold storage”.
A hot wallet is a cryptocurrency wallet that is connected to the internet. Generally, these are the most common wallets since they are easier to set up and can easily be accessed regularly.
The negative side of hot wallets is that they are susceptible to attacks by hackers since they are connected to the internet. If your bitcoin gets stolen, it cannot be recovered.
Cold storage wallets are similar to their hot wallet counterparts, with the exception that they live offline. This method is less convenient than a hot wallet, but it reduces the threat of attack by hackers. A cold wallet acts as a secure place to store the bulk of your bitcoin, or to store your coins for a longer period of time.
If you want to purchase the hardware to be able to store your bitcoins offline, it will set you back around a hundred dollars. Check out the Ledger Nano S if you’re looking for a solid option.
Learn More About Cryptocurrency
If you’ve taken an interest in cryptocurrency, then go beyond learning what is BTC.
To learn more about how to buy bitcoins, check out this post today and join the movement.