Bitcoin BTC is a digital currency (aka. cryptocurrency). Bitcoin does not exist in any physical shape or form. It is stored digitally on your computer hard drive as a string of numbers and letters. At present, one Bitcoin is worth over US$ 29,000.
Bitcoin was started in 2008. Satoshi Nakamoto (the name used by the person who created Bitcoin) invented it. He is believed to be from Japan.
As more and more people become aware of cryptocurrencies, their popularity has been increasing exponentially. In fact, bitcoin has been one of the best-performing currencies since 2017.
Currently, more than 18 million bitcoins in circulation, and more than 100,000 merchants accept the use of bitcoin as a form of payment.
But why is bitcoin’s value so high? The total Bitcoin value in circulation is over $600 billion. And, the biggest reason for its high price is because of speculations on how many people will buy them as well as more awareness about the use of bitcoins.
1. Which sites will I be able to purchase Bitcoin from?
There are also lots of different Bitcoin ATMs available around the world that let you purchase Bitcoins directly from them using cash.
If the ATM has additional services like a QR scanner & camera then it’s likely that you’ll also be able to sell bitcoins quickly and securely directly from the ATM.
Keep an eye out on localbitcoins.com as most major cities will have at least one seller nearby. If not, head over to CoinATMRadar to find a Bitcoin ATM.
Some popular websites/services where you can buy bitcoins instantly with Credit Cards/Debit Cards are Coinbase, Coinmama, Indacoin.
2. How can I sell my Bitcoin and convert it into cash?
Banks and Credit Card companies have many restrictions on selling Bitcoin to the public. Some of these restrictions are easy to get around (you can use a friend’s Bank Account), while others are more complicated (you need to Verify yourself).
If you are trying to sell Bitcoins In Person, always recommend meeting in a public place or local coffee shop where there are lots of people.
If you want to sell your Bitcoin online, using escrow services such as LocalBitcoins is one way to do it. You’ll have to pay an escrow fee which will be subtracted from your sales price at the time of purchase.
There may also be transaction fees associated with getting money out of certain sites/services such as Paxful.
If you’re trying to cash out your Bitcoins fast, you can sell them on a Bitcoin Exchange for cash. This obviously has its risks as you will have to deposit your Bitcoins onto the exchange and trust that you will get your money when you want it.
3. What Bitcoin wallets should I download?
There are lots of different types of wallets available for storing Bitcoin, all with varying levels of security/convenience.
The most secure option for storing large amounts of Bitcoin would be a Hard Wallet (you can even buy physical ones), but most people will use either a Mobile or Desktop wallet.
There are several types of desktop wallets, including Core, Armory, and Electrum. You can use these to store your Bitcoins online while having the ability to move them off an online service if you wish.
4. What’s the difference between Mobile Wallets vs Web Based Wallets?
Mobile wallets have become more popular recently as they automatically sync with your mobile device (tablet or smartphone).
MyCelium is one of the most popular mobile Bitcoin wallet apps out there at the moment. It’s simple, easy to use and stores your bitcoins in an encrypted database.
Several Web-Based & Cloud wallets are available, which means you can access them from any computer (you don’t have to install anything).
The advantage of these is that they store your private keys online and you’re able to access them from anywhere.
However, if these sites get hacked then you run the risk of losing all your Bitcoins! If security is a high priority for you then experts recommended using a Hardware Wallet or Hard Wallet.
5. Can I pay for online shopping with Bitcoin?
When you sign up on a website that accepts bitcoin, which is a bit like signing up for an online wallet account, a private encrypted key is generated and given to you.
You then have the keys needed to send and receive bitcoins stored securely in your digital wallet.
This is how it works: Once you sign on to an internet site that offers bitcoin as a payment option and you choose to pay with bitcoins, you get sent a string of encrypted numbers and letters that is your personal bitcoin address.
You then tell the company where you want them to send your money (for example, they will ask for your name or email), along with their bitcoin wallet address.
As soon as this information is sent, the bitcoin network will check through its entire database and confirm if you have money in your account. If there is a match, the amount of bitcoin you agreed upon is transferred from your wallet to their wallet.
The transaction happens instantaneously. You are notified immediately via e-mail or text alert as soon as it has been completed.
6. Who controls the supply of Bitcoins?
No single entity controls the supply of Bitcoins as they are fully decentralized. The process for creating new Bitcoins, however, is tightly controlled and monitored.
They are created at a predictable and decreasing rate. The number of new Bitcoins created every year is automatically halved over time until Bitcoin issuance halts completely with a total of 21 million Bitcoins in existence.
7. Can a Bitcoin crash? Or did Bitcoin ever crash?
Yes, Bitcoin lost over 60% of its value in 2014. Had you invested $100 at the beginning of 2013 when a single Bitcoin was worth $13, you’d have a lot of money now.
But if instead, you bought bitcoin in December 2014 when it was worth over $1000, your bitcoins would be worth $100 today.
8. Some of the biggest Bitcoin heists
A Slovenian Bitcoin mining service called ‘NiceHash’ had its cryptocurrency stolen as hackers made off with around 4,700 Bitcoin. It is thought that the amount stolen was valued at $62 million, although this figure has not been confirmed
The major security breach of Bitfinex resulted in a loss of around 120,000 Bitcoin (approximately at the time worth around $72 million). BitFinex was forced to halt operations for a week after the attack and was never able to fully restore its business.
The biggest crowdfunded project in history, The DAO project raised $150 million and was hacked for more than 11 percent of the funds ($50 million). The hack resulted in a hard fork creating Ethereum Classic.
This was the world’s first major cryptocurrency theft as criminals stole nearly 19,000 Bitcoin from the administrator of a website known as Sheep Marketplace. At the time, this was worth around $6 million.
9. Can I invest $1 or $100 in Bitcoin?
Unfortunately, legitimate ways to invest small amounts of money (such as your spare $100) into bitcoin are quite limited. If you just want to purchase a small amount of Bitcoin (less than $100 worth), try either LocalBitcoins or Paxful.
You can also invest in the stock of companies that mine bitcoin or sell goods for bitcoins, you can speculate on the price movements by buying and holding on to some bitcoins, or you can buy bitcoins directly from an individual.
10. Where do I get Bitcoins?
Bitcoins are ‘mined’ using computing power in a distributed network (called mining). Bitcoins may be exchanged for other currencies or products.
Finally, there is a whole host of black marketplaces and underground retailers who will exchange them for regular cash (highly NOT recommended).
11. What’s the difference between Bitcoin and ‘regular’ currency?
Bitcoin is both a digital payment network and a new kind of money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.
From a user perspective, Bitcoin makes sending and receiving money online easier, faster, and more secure than ever before.
From an e-commerce merchant’s point of view, it means no customer account thefts, lower fees, access to millions of new customers, and so on.
12. Is Bitcoin safe and legal?
Yes. Bitcoin is legal in the United States, Canada, Australia, and most of Europe. It’s a decentralized digital currency that allows people to send money across international borders without using traditional banking or payment services like PayPal.
Because it isn’t tied to any bank or government, bitcoin has been popular among libertarian supporters as well as tech enthusiasts, speculators — and criminals.
The absence of any middleman makes illegal activities easier because there’s no one else to trace the crime back to you, making it harder for law enforcement to track down the perpetrators.
But please be sure to check your country’s laws before you use them, as there are no exemptions for illegal activities.
One of the best ways to make money with Bitcoin is to buy them at a low price and then sell them when the price has gone up. Legality is another factor that will affect you when it comes to using Bitcoin.
Bitcoin can be used in stores, online, and in millions of locations around the world.
Disclaimer:
Do Your Own Research. My content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. If you need financial advice or further advice in general, it is recommended that you identify a relevantly qualified individual in your Jurisdiction who can advise you accordingly.