What is Bitcoin?

This is one of the very first cryptocurrencies created in 2009, created by an unknown programmer under the alias Satoshi Nakamoto. It is not dependent on banks or nationality, and intermediaries on exchanges handle all transactions. Most people prefer it because the transactions are anonymous and the transactions are free. Since 2009, the growth of e-commerce has enabled the acceptance of bitcoin to pay for various products and services.

Acquiring Bitcoins
There are various ways that you can acquire Bitcoins including:

You can create bitcoins by mining. Mining is the use of computers with high processing capabilities to solve complex puzzles. Presently, if you solve the puzzle, you get 25 bitcoins approximately every 10 minutes. The software used for mining bitcoins is open source meaning that anyone can tweak it to ensure it mines efficiently.

Buying on a Bitcoin Exchange
Most people are joining marketplaces called Bitcoin exchanges where they can trade bitcoins for different currencies. Presently, Mt. Gox is the largest bitcoin exchange in the world. Other exchanges include BT China, CoinCorner, BitQuick, Xapo, and BitBargain.

You can also acquire bitcoins through transfers. You can send or receive bitcoins via apps installed on your mobile device or computer, just like you would send money digitally.

Storing Bitcoins
Before you start looking into how you can acquire bitcoins, you need a digital wallet. This is the only place you can store your bitcoins, and the digital wallet can exist on your computer or n the cloud. The wallet is a virtual bank account that holds your bitcoins, and where you can send or receive bitcoins. There has been news where servers have been hacked and bitcoins in the cloud stolen as well as a virus destroying your digital wallet on your computer. Choose carefully the type of wallet you use to store your bitcoins.

Bitcoin transactions are anonymous; however, the network called the blockchain records every transaction. Anyone can know how many bitcoins you have, but he or she will just not know the owner. Despite all this, it is fast, secure, and cheap to use.

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