Introduction: What is Bitcoin?
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins have value because they are accepted as payment by many merchants and because they are scarce. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Further, you can visit Bitcoin Revolution if you want to keep yourself up to date with the knowledge of bitcoin.
Bitcoin Mining Explained – Blockchain Guide for Beginners
Bitcoin mining is the process through which bitcoins are released to come into circulation. Miners are rewarded with bitcoins for verifying and committing transactions to the blockchain. Bitcoin mining is a competitive process. The more computing power you can muster, the higher your chances of winning a reward. This guide will help you understand Bitcoin mining.
Your daily payout depends on the hash rate (GH/s) your bitcoin miner is generating. On average, every 10 minutes one lucky user of a standard bitcoin mining pool gets to claim the full 25 BTC reward for verifying transactions. A more steady but smaller amount comes from other pools that charge lower fees and offer more frequent payouts. When necessary, users can buy virtual coins or tokens using fiat currencies like USD, EUR, GBP, etc.
Why invest in Bitcoins?
Historically speaking, investing time and resources on anything related to Bitcoin mainly revolved around two things: Mining and trading them on an exchange. As the adoption of cryptocurrencies has grown exponentially over the past few years however it’s become apparent that a more efficient method of turning your fiat currency into Bitcoin is needed. There are many ways to do this, from starting a new job that pays you in cryptocurrency, to buying them from individuals who have decided not to hold onto them for long periods of time.
The most common way people invest in Bitcoins is through purchasing them on an exchange using their country’s native currency (fiat). The next most popular way is through “Bitcoin mining”; where users solve complex mathematical problems with their computers and are rewarded with a small portion of a coin as a result. Once the user has mined enough coins to gain roughly 1 BTC, they can withdraw it back into fiat or hold onto it as an investment.
In our opinion, the easiest and best way to invest in Bitcoins is through your everyday shopping.
How to buy bitcoins?
The first step before we can dive into how much a few bucks’ worths of bitcoin would be worth today (or at least where it’s going) is to choose a place to purchase them from. Using our guide above, you’ll now understand that not all exchanges are ideal for buying large amounts of cryptocurrencies, or any amount for that matter – especially if it’s your first time. First-time buyers will likely need additional guidance on how to go about choosing their exchange as there are many factors that come into play such as ease of use, verification requirements, deposit/withdrawal fees, etc. which aren’t included in this article.
Once you’ve found a suitable exchange for purchasing your first Bitcoin we strongly advise that you make an account and follow the tutorial we’ve provided below. It’s always best to get started on these things sooner rather than later since it will give you better peace of mind when making your transactions, and will teach you what to do should anything go wrong. This also gives us more time to answer any questions or concerns that may arise.
1) Create an Account
If this is your first time buying cryptocurrencies through the exchange, you’ll need to create an account before continuing with your purchase:
2) Enter Your Details & Verify Your Email Address
Verify your email address by entering the Captcha verification box and clicking “Register”.
3) Go to Your Email & Verify Your Account
Click on the link sent to your email address and you’ll be taken directly to a page asking for some personal information – first and last name, phone number, etc. Once this is complete click “Continue”.
The exchange will now review your account before going any further. If there is something missing from your profile that they require it will show up as a notification on-screen. In most cases, the only thing required of new users buying their first Bitcoin through Exchange is an email address. This can be changed later on should you need to do so. If everything looks good, click “Confirm Account” after reading all of the information displayed carefully. Now you can start trading and making money.