Bitcoin is a crypto currency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bit coin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bit coin as payment.
Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a crypto currency wallet, most of them using bit coin..
Choose a Crypto Exchange. To buy Bitcoin or any crypto currency, you’ll need a crypto exchange where buyers and sellers meet to exchange dollars for coins
How to Choose a Crypto Exchange.
There are now thousands of different crypto currencies to choose from, and more spring up every day. With so many options available, it’s important to choose the right crypto exchange for your needs. Here are some aspects to consider when making your choice:: Security: Is the exchange registered with any regulatory agencies? Does it have a good reputation? Are user funds kept in cold storage?
Liquidity: How much trading volume does the exchange see on a daily basis? The more liquidity an exchange has, the easier it is to buy and sell Bitcoin and other crypto currencies. Fees: What fees does the exchange charge for transactions? You’ll want to compare fees between exchanges before making your final decision. Ease of Use: How easy is it to use the platform? Is customer service responsive and helpful if you need assistance? Payment Methods: What payment methods does the platform accept? Some platforms only accept bank transfers or credit cards, while others accept a wider range of payment methods.
Decide on a Payment Option
Decide what type of payment you want to use. There are many different types of payment options available for investing in bit coins, so it is important to decide which one best suits your needs. Some popular options include credit cards, debit cards, bank wire transfers, and even cash.
– Consider the fees associated with each type of payment. Different payments will have different fees associated with them. Credit cards, for example, typically have higher fees than debit cards. It is important to factor in these fees when deciding which payment option is right for you.
– Consider the speed of each type of payment. Some payments can be processed instantly while others may take several days or even longer. If speed is important to you, then you will want to choose a payment option that can get the job done quickly.
Select a Safe Storage Option
One popular option for storing bit coins is a paper wallet. This type of wallet allows you to store your bit coins offline, which makes them much more secure from hackers. You can create a paper wallet by yourself, or you can use a service like Bitaddress.org.
Another popular option for storing bit coins is a hardware wallet. These devices look like USB drives and allow you to store your coins offline on the device itself. The most popular hardware wallets are the Trezor and Ledger Nano S.
Ultimately, the best way to store your bit coins is on an exchange like Coinbase or Kraken that offer “cold storage” services. This means that your coins are stored offline on their servers, which makes them much less likely to be hacked into than if they were stored on your own computer or phone.