What is bitcoin?
Bitcoin is an online virtual currency that can be used for online shopping and online transactions. International and licensed companies like payza also offers bitcoin option to process transactions.
How to join bitcoin?
You can join bitcoin network by installing a bitcoin software on your computer,mobile phone or any other device. Once you have installed the software it will generate a bitcoin address for you that you can share with people for transactions.
How bitcoin works?
Every user has an open source bitcoin software installed that allows him to send and recieve bitcoins through the bitcoin network. Bitcoin network has peer to peer connection with no central repository that is why it is called decentralized payment system. All the transactions in bitcoin are stored in a public ledger called block chain. The whole bitcoin network relies on the block chain. When a transaction occurs and it is confirmed as valid transaction then it enters the block chain and is permanently stored in the block chain. Now the question is how are the transactions validated? The transactions are validated through mining.
What is Mining?
Whenever a transaction occurs it needs to be validated and the process of maintaining the block chain is called mining. A bitcoin miner is a hardware machine that validates a transaction by calculating megahashes per second and adds it the block chain. When a block is added to the block chain 25 newly created bitcoins are awarded to the bitcoin address. The bitcoin reward per block will be halved every 4 years.
How are bitcoins stored?
Bitcoins cannot be separated from the blockchain so the bitcoin software uses public key cryptography to generate one public and one private key. Public key is the one you can share with people to process transactions but you have to keep the private key secret as it gives you the ownership of bitcoins. If you loose you private key you loose your bitcoins there is no other way you can recover them. If your private key is stolen or someone else knows your private key then your money is at risk.
Buying and Selling Bitcoins?
Bitcoins can be purchased from an individual person, a company, an organization, a bitcoin ATM machine in exchange for real money or online bitcoin bidders. In online exchange of bitcoins the sellers are at risk because mostly 45% of the exchanges fail and the buyers take the bitcoins with them. Double spending is another risk involved in paying the bitcoins to someone in exchange for something. The payer can spend the bitcoins multiple times until it is validated and entered in the blockchain which takes about ten minutes. Since the bitcoin transactions are irreversible users should take extra measures to ensure safe transactions.
Where to buy bitcoins with credit card?
A well known and established site to buy bitcoins with credit card is btcQuick.
Where to buy bitcoins with cash?
If you want to buy bitcoins with cash try Ziggap and BitInstant.
Bitcoin is an online virtual currency that can be used for online shopping and online transactions. International and licensed companies like payza also offers bitcoin option to process transactions.
How to join bitcoin?
You can join bitcoin network by installing a bitcoin software on your computer,mobile phone or any other device. Once you have installed the software it will generate a bitcoin address for you that you can share with people for transactions.
How bitcoin works?
Every user has an open source bitcoin software installed that allows him to send and recieve bitcoins through the bitcoin network. Bitcoin network has peer to peer connection with no central repository that is why it is called decentralized payment system. All the transactions in bitcoin are stored in a public ledger called block chain. The whole bitcoin network relies on the block chain. When a transaction occurs and it is confirmed as valid transaction then it enters the block chain and is permanently stored in the block chain. Now the question is how are the transactions validated? The transactions are validated through mining.
What is Mining?
Whenever a transaction occurs it needs to be validated and the process of maintaining the block chain is called mining. A bitcoin miner is a hardware machine that validates a transaction by calculating megahashes per second and adds it the block chain. When a block is added to the block chain 25 newly created bitcoins are awarded to the bitcoin address. The bitcoin reward per block will be halved every 4 years.
How are bitcoins stored?
Bitcoins cannot be separated from the blockchain so the bitcoin software uses public key cryptography to generate one public and one private key. Public key is the one you can share with people to process transactions but you have to keep the private key secret as it gives you the ownership of bitcoins. If you loose you private key you loose your bitcoins there is no other way you can recover them. If your private key is stolen or someone else knows your private key then your money is at risk.
Buying and Selling Bitcoins?
Bitcoins can be purchased from an individual person, a company, an organization, a bitcoin ATM machine in exchange for real money or online bitcoin bidders. In online exchange of bitcoins the sellers are at risk because mostly 45% of the exchanges fail and the buyers take the bitcoins with them. Double spending is another risk involved in paying the bitcoins to someone in exchange for something. The payer can spend the bitcoins multiple times until it is validated and entered in the blockchain which takes about ten minutes. Since the bitcoin transactions are irreversible users should take extra measures to ensure safe transactions.
Where to buy bitcoins with credit card?
A well known and established site to buy bitcoins with credit card is btcQuick.
Where to buy bitcoins with cash?
If you want to buy bitcoins with cash try Ziggap and BitInstant.
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