What is a bitcoin?
Bitcoin is a cryptocurrency. It's your usual money (for example, a dollar or euro) which is available only in digital form. The peculiar feature of bitcoins – there is no need to involve any third party for the exchange. When you apply this online currency, the coins are sent directly to the wallet of a merchant without going through any financial institution first. As result, you get an untraceable and anonymous online transaction.
How Does Bitcoin Transaction Work:
- You post your transaction.
- A computer ("block chain") notes transaction information, including the time and number of coins of a person.
- A "bitcoin miner" (a person with a computer) checks the accuracy of the information about the block chain and confirms your transaction. "Bitcoin miners" as a rule, pay a fee for bitcoins.
- The transaction is checked and coins are sent to the merchant.
The Process of Creating a Bitcoin Wallet
Three effective ways to keep bitcoins:
- Online Wallet: you should set a bitcoin client, and create a third party wallet (for example, like Blockchain.info).
- Paper wallet: you should create a record with the code for your bitcoins. This way is rather cheap and quite secure.
- Hardwire Wallet.
This wallet is a compact device (like a USB drive) which keeps your bitcoin keys. But note that there are several difficulties in obtaining them because of the limited opportunities that offer this service.
The Process of Buying Bitcoins
You can buy bitcoins using your credit card, bank transfers, through online bitcoins market or simply using cash.
But the main snag is that bitcoins require special exchange services for their purchase. Don't worry, we offer you the most popular services to make the process of buying bitcoins simpler. Use Coinmama, Bitstamp and CEX.IO services and buy bitcoins without any problems. You simply need to log in, confirm your account and provide proof of identity.
Long live the Bitcoin!