What's Bitcoin - Lending Coin Review

What's Bitcoin?

Bitcoin or BTC is probably the most famous cryptocurrency in the world. It was proposed as a concept by Satoshi Nakamoto in 2008, an inventor or group of inventors whose name we still don’t know. A year later, the website bitcoin.org was launched, allowing developers from all over the world to make changes in the open code. As a reward for their efforts, they received bitcoins.

Of course, in the early days of bitcoin, this currency wasn’t too valuable. In fact, there were instances where developers paid for two pizzas with 10,000 BTC. It’s needless to say that things have changed drastically over the years. Today, bitcoin is worth much, much more and its value is expected to get even higher. So, what’s the reason behind bitcoin’s success?

The main advantage of bitcoin over traditional currencies is that it operates without any need of using the services of banks. Rather than having a central authority take care of the transactions, everything is done through a peer-to-peer technology. But, it’s not only transactions that are carried out by the users, the same goes for bitcoin mining, that is, the issuing of new bitcoins.

As a result, bitcoin has much lower transaction fees than credit cards. On top of that, it allows hassle-free international payments, as well as a high level of security and anonymity through the use of encryption.

How Does Bitcoin Price Calculated?

The price of bitcoin is determined by its supply and demand. When demand for bitcoin increases, the price increases, and when demand falls, the price falls. There is only a limited number of BTC in circulation and new bitcoins are created at a predictably diminished rate. Demand must follow this level of inflation to keep the price stable.

How To Buy Bitcoin?

After learning about the advantages of bitcoin, you’re probably very eager to learn how to buy it. The first thing you should know is that bitcoins aren’t cheap, at least not as they used to be just a few years ago. As demand for this cryptocurrency is constantly rising, the same happens with its price. Still, this doesn’t mean that you shouldn’t invest in it. On the contrary, there’s definitely a bright future for those who decide on investing in bitcoin.

But, first, you need to learn more about the dangers that come along. Security is a big factor in this business. As bitcoin isn’t anything like traditional payment methods, it means that if someone stole it from you, there’s no authority that could help you get it back. The solution is to learn more about how the system works. That way, you will be able to avoid all possible risks.

Step One: Information is the Key

Bitcoin is an anonymous currency, which means that your name is not important for the transactions, but your bitcoin address, a 34-character-long string. When a transaction is made, it’s recorded on a ledger, which is then distributed across the network. The transactions are processed by the ‘miners’, who get compensated for their work. They receive a small fee for every block that’s recorded to the blockchain.

Step Two: Choosing the Right Bitcoin Wallet

Now that you know how bitcoin works, it’s time to proceed to buying it. The first step in that process is choosing your wallet. You can choose from a number of different options, starting from wallet apps specially designed for smartphones. Of course, there are also desktop versions of the wallets, such as Bitcoin Core. Online wallets, such as Coinbase and Circle, seem like the most popular choices. The reason for that is they don’t require downloading any additional software.

Step Three: Buying Your First Bitcoin

Depending on your country of residence, you might be required to provide an identification document before being allowed to purchase bitcoins from digital currency exchanges. For instance, if you live in the United States, according to the Anti-Money Laundering (AML) and Know Your Customer (KYC), verifying your identity is necessary in order to be allowed to buy this cryptocurrency.

The good news is that the verification process doesn’t take too long, at least if you decide on using the services of a reputable broker, such as Coinbase, for example. Once your account is verified, it’s time to choose how to pay for the bitcoins. Most brokers allow using credit/debit cards, such as Visa or MasterCard, while some even allow using payment methods such as PayPal.

Apart from purchasing bitcoin from brokers, you can also buy them directly from other users. In order to find the people willing to trade bitcoin in your area, you can visit the site Localbitcoins. By buying bitcoins locally, you won’t have to go through any identity verification process. You just give the cash to the seller and they will provide you with the bitcoin address.

What's Bitcoin Exchange?

If you decide to cash in your bitcoins, you can do it in several ways. The most common method is through online exchanges, like Coinbase, GDAX, or Cryptopia. Basically, these sites serve as intermediaries between bitcoin buyers and sellers. You can also offer your bitcoins to local buyers on localbitcoins.com. Furthermore, you can even exchange bitcoins for cash by using some ATMs.