what is bitcoin? and how do I buy bitcoin legally?

what is bitcoin

What Is Bitcoin?

Bitcoins are cryptocurrencies, which are often known as virtual currencies or digital currency. Bitcoins are completely virtual and do not have a bill or a coin like traditional currencies however they are represented as BTC. It was created by a pseudo-anonymous person called Satoshi Nakamoto in the year of 2008. Bitcoin is highly encrypted which helps in the prevention of duplication and replication of the bitcoins.

Are bitcoins safe?

Yes, Bitcoins are absolutely safe. Every transaction is recorded in a shared public ledger which is also called the blockchain. This helps in keeping track of the transactions done and the flow of bitcoins along the internet. These logs are highly encrypted and are not accessible. Unlike traditional banks, transaction cannot be cancelled or redone. The process is irreversible. Although with more light shed upon bitcoins, frauds and scams are becoming a norm. If you are just starting out make sure you have all the trusted websites and exchanges just in case. In dark web, bitcoin plays a major role for transactions.

How to get bitcoins?

Bitcoins can be accessed easily. It is so easy, it is just like the sign-in process of any app you’ve come across. Here, you need a special app which is called the wallet. The wallet generates a unique number which will act as your signature which will also act as a mathematical proof during transactions. It is also called as a private key or a seed. This key ensures from who the transaction has been made and also preventing alterations to the transaction that have been already issued. The transactions take a little to fifteen to twenty minutes to reflect, which they go through a process of mining. You can use the bitcoin wallet for sending, receiving and storing of bitcoins.

what is bitcoin

Bitcoin wallets are available for mobile, web, desktop and hardware. With that said, there are many ways to get your hands on bitcoin. Some of the most successful ways are

1. Buy Bitcoins Online

Once you set up your wallet you need to set up an account for crypto-currency exchange which should be approved by the wallet provider. Crypto-currency exchanges are like market places where sellers and buyers exchange money or other cryptocurrencies.

Most sellers accept bank transactions, credit cards and even PayPal transactions. You can basically search through hundreds of cryptocurrency exchanges and choose the one you wish. Each transaction is charged for every trade that you make. There are reputed exchanges such as coinbitfinex, coinbase, bitstamp, coinmama etc, who have earned their trust over the years.

2. Buy Bitcoins in person

If you find it difficult to navigate online, you can buy bitcoins by the following options available.

  1. Bitcoin ATM – As much as this sounds absurd, there are ATM’s where you can get bitcoins in trade for cash. You can find the nearest bitcoin ATM by a simple Google search.

  2. Bitcoins from retail stores – you can also go trade in your cash for bitcoins from retail stores across the country. With the help of websites like libertyx, you can locate retail stores that sell bitcoins all across the US.

  3. Bitcoins from Banks – there are a lot of banks which do have bitcoins as well, using websites like Paxful you can identify the banks that will give you bitcoins in turn for cash.

  4. Bitcoins from sellers – You can also buy bitcoins from sellers who are willing to trade for cash. You use the website LocalBitcoins to identify sellers from your locality.

These methods have been tried and tested and are some of the best ways to get bitcoins hassle-free. A lot of companies and organizations will pay you in bitcoins in exchange of playing their game and reaching a particular score, or by installing certain apps or even testing websites, taking surveys, sharing and re-tweeting posts, but bitcoins earned from these are usually so very little, in order to get a certain amount you will have to spend a lot of time.

Although there is a standard flow of bitcoins today the supply of bitcoin is fixed. 21million is the limit of the supply, currently the bitcoin supply stands in 17.5million. every 4 years bitcoin halving is done to make sure the current supply is cut in half.

How to keep your bitcoins safe

  • As long as the coins are in the wallet managed by you, your coins are perfectly safe.

  • If you want to store them away, you can use the hardware wallets to keeps your coins secure

  • They are really easy and user-friendly once you get the hang of it making it a low margin for any types of error.

Things to remember while you buy or sell bitcoins

  • Keep your private data safe – Bitcoin is highly encrypted and transactions and payments made through bitcoin wallet are safe as well but when you buy bitcoins with your bank, credit, debit or PayPal keep a close eye where you share your information. With more people buying bitcoins, more people are scammed. Beginners are targeted!

  • It can take time for your transactions to go through – yes, sometimes it may take a good 20 minutes before your transaction goes through. Do not panic or attempt another transaction. Once a transaction is done it is irreversible. Also, remember the mode of payment plays a major factor in the time taken for the transactions

  • Look out for additional fees – additional fees may apply on the payment method you choose. Always include deposit, withdrawal and trading fees. The more you exchange, the lesser fees you will be paying for the transactions.

  • If you have a lot of bitcoins in your wallet, you can always keep a backup of your coins in a hardware wallet.

Why would you want to buy bitcoins?

To be honest most people love the idea of bitcoins not being associated with the banks or the government. A purchase of anything can be hidden behind the anonymity is also a reason why people want to buy bitcoins, others buy bitcoins and keep them aside in hopes of bitcoins becoming the future of currencies. Big organizations like Microsoft accept bitcoins, online purchases which do not want to be traced are bought with bitcoin.

Conclusion On What Is Bitcoin?

Bitcoins can be confusing and hard to understand, but once you get the hang of it, it becomes as simple as managing your online bank accounts. Bitcoins have been the talk of the decade and we wouldn’t be lying if we say we don’t see any potential in it, but will it become the future? That we will have to wait and see. It never hurts to save a little for the future.