Bitcoin is a distributed peer to peer digital currency. You can think of it as electronic cash that you can use to send money to friends or merchants hassle-free.
Bitcoin was invented by cryptographer Satoshi Nakomoto, who published the first white paper on the digital currency in 2008. He then went on to release the first version of the Bitcoin software a year later. Bitcoin has come a long way since then, and is now used widely across the globe for a number of transactions.
There are plenty of advantages to using Bitcoin:
- Firstly, it’s 100% secure thanks to its protocol and cryptography.
- It’s convenient – Bitcoin can be transferred quickly and safely by anyone, anywhere, anytime.
- It’s mobile-friendly, so you can transfer funds on the move.
- Low-cost – Normally, it doesn’t cost anything to make Bitcoin transactions. When there is a fee, this amount is very small, most likely pennies in value.
Here’s how it works. To send Bitcoin, you’ll need the following:
- The amount of Bitcoin you wish to send.
- The recipient’s wallet address – this is where you’ll be sending your funds.
- A private key, which is a unique sequence of numbers and letters exclusively available to you. This key will allow you to access your wallet.
Once you’ve sent your Bitcoin, it goes through a process known as ‘mining,’ which involves verifying the transaction once it’s received by the Bitcoin network. Following this process, the transaction is moved to a public digital ledger called Blockchain.
Check out our useful tips and tricks, below, to make Bitcoin all the more easy to use:
- Remember the old saying, don’t keep all your eggs in one basket? Well, that applies to Bitcoin as well. Make sure that your Bitcoin isn’t all kept in the same wallet. It’s always advisable to use multiple wallets to ensure your anonymity.
- You should also consider using different kinds of wallet options such as desktop, mobile, web and hardware.
- If you’re using an exchange like Coinbase, avoid storing your Bitcoin in an exchange wallet. Simply move your funds to a personal wallet.
- Keep your private information, such as your private key and mnemonic key, in a safe place. Don’t forget to continuously generate new wallet addresses and use them only once.
- Use two way or two factor authentication when accessing your wallet. This verifies your identity and enhances your wallet’s security.