Several years ago experts were weighing up an enigmatic thing called Bitcoin. The forecast was the virtual money; invented by a genius called Satoshi Nakamoto would soon become obsolete.
Some people were adventurous enough to buy Bitcoins through a labor intensive process.
A few sold it later at a loss only to come to a conclusion that the Bitcoin dream is dead.
How “off the mark” they were.
On 30th December 2017, Bitcoin is traded at $ 14040. People who held on to their portfolio have made a killing.
Where did the assumptions go wrong?
One assumption was regarding blockchain – the peer-to-peer ledger system. This records Bitcoin or cryptocurrency transactions and allows people to transact without a central authority.
People assumed this system will not work long-term. But unfortunately for them, their assumption went horribly wrong. The fact is blockchain has real promise. Today the blockchain technology is encompassing auto, insurance and even groceries segments.
What is blockchain anyway?
In a blockchain system several people can write entries into a record of information, and a community of users governs how this information is revised and updated.
With regard to Bitcoin, transactions are recorded using a distributed ledger on a peer-to-peer network.
This literally means that the network is open to all and is anonymous as well.
It is mandatory for the network participants to agree on the validity of transactions even before they are recorded.
This kind of consensus is accomplished through a process called “mining”.
After a Bitcoin transaction, miners take part in a complex and resource intensive process to verify if the transaction is legitimate.
How to buy Bitcoin online?
With the frenzy about Bitcoin going strong, it would not be surprising if you too would like to join the bandwagon.
And admittedly, the desire of many is to buy it online.
Here are two ways you can do it.
1. With a credit card
Buying Bitcoin with a credit card is perhaps the quickest and the most convenient option. You have just 2 steps.
1. Input your Bitcoin address
2. Input billing info
2. Purchase on an Exchange
A Bitcoin exchange is a web based marketplace, where you can transact Bitcoins after setting up an account on the exchange.
Here you have to choose an exchange from a list of exchanges and set up an account.
The next steps are, you must set up an account at the exchange and then connect your bank account(s).
There is no any doubt that buying online is quick and convenient, provided you are willing to pay the required fees.
Here is a caveat though. After you purchase Bitcoins never leave it at an exchange or a website. Shift them to a Bitcoin wallet as soon as possible.
There are various ways in which you can earn more money, Bitcoin Mining being one of them. You can solve the mathematical puzzles and earn a reward that is part of the Bitcoin block. Sounds exciting? Go to the Bitcoin Mining section and know more about it.