Bitcoin and Ways to Acquire Them

What is Bitcoin

Bitcoin was the first digital currency that facilitated the instant transfer of value across the world.

Two major operations in the Bitcoin system

• Transaction Management: transferring the coins from one address to another

• Currency generation: regulating the monetary value

Bitcoin Controlled Supply

Bitcoin supply is limited for the currency to have value. The rate of block creation is adjusted every 2016 block. The number of Bitcoins generated per block decreases by 50 every 210 000 blocks.

Ways to Get Bitcoins

Buying online:

• Create an account on an online exchange

• Exchanges are used to buy and sell Bitcoins on your behalf Buying with cash:

• Choose a purchase method

• Platforms like LocalBitcoins will help you find people near you who are willing to exchange Bitcoins for cash

• There are ATMs that send Bitcoins to your wallet in exchange for cash

Buying Bitcoin from an Exchange

Choose an exchange by entering your country of residence and then select from the list of exchanges Set up an account on the exchange. Various forms of identification are required depending upon the exchange Connect one or more bank accounts to your exchange account for buying or selling Bitcoins Select a number of Bitcoins to purchase, enter your Bitcoin address, and confirm the purchase.

Bitcoin Wallets and Ways to Set Them Up

Bitcoins wallets

Bitcoins wallets are digital wallets where private keys are used to access the Bitcoin address and signature for transactions.

Types of Bitcoin Wallets

• Software wallets are installed on your computer to store your private keys.

• Online wallets are convenient because you can access your funds from any device.

• Hardware wallets are used to store private keys on storage devices such as USB drives. The computer creates a passphrase that the user commits to memory.

• Mobile wallets run as apps storing your private keys to pay directly from your phone.

Spending Bitcoins

• Spending Online:

Common household items: There are millions of products you can buy using Bitcoins

Gift cards: You can buy gift cards online using Bitcoins

Video games: Companies have started offering games and other apps in Bitcoins

• Spending Offline

Food: You can buy food with Bitcoins now.

Travel: Pay for hotel bookings online using Bitcoins. Also, you can buy tickets for ships, cruises, and flights.