$ Bitcoins – Some things you need to know before buying bitcoins
From our previous part, Lets understand bitcoins term !
Before investing the bitcoin we need to understand what is $ Bitcoin ?
It is cryptocurrency and worldwide payment system. It is first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. The transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as Open-Source Software in 2009
Bitcoins are created as a reward for process known as mining. They can be exchanged for other currencies, products, and services.
Units / Bitcoin Value
The Unit of account of the bitcoin system is bitcoin. As of 2014, ticker symbols used to represent bitcoin are BTC and XBT. its unicode character is ₿. Small amount of bitcoins used as alternative units are millibitcoin (mBTC), bit (ƀ) and satoshi (sat). Named in homepage to bitcoin’s creator, a satoshi is smallest amount within bitcoin representing 0.00000001 bitcoins, one hundred millionth of bitcoin. A bit equals 0.000001 bitcoins, one millionth of a bitcoin or 100 satoshis. A millibitcoin equals 0.001 bitcoins, one thousandth of a bitcoin or 100,000 satoshis.
For a broader coverage related to this topic, see Bitcoins.
Before going to bitcoin, we need to know following things
How to use Bitcoins ?
1. Understand Bitcoins
Bitcoin Wallet Securing –
In real life, there are many fake wallets has developed in the market, that take control of everything and investors are getting nothings out of it. So, your wallet must be secure. Bitcoin makes it possible to transfer value anywhere in a very easy way and it allows you to be in control of your money. Such great features also come with great security concerns. At the same time, Bitcoin can provide very high levels of security if used correctly.
Bitcoin Price is Volatile
The Price of a bitcoin can unpredictably increase or decrease over short period of time due to its young economy, novel nature and sometimes illiquid markets. Bitcoin should be seen like a high risk asset, and you should never store money that you cannot afford to lose with bitcoin.
Bitcoin Payments are irreversible
Bitcoin is not anonymous
Some effort is required to protect your privacy with Bitcoin. All bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address. However, the identity of the user behind an address remains unknown until information is revealed during a purchase or in other circumstances. This is one reason why Bitcoin addresses should only be used once.
Unconfirmed transactions aren’t secure
Transactions don’t start out as irreversible. Instead, they get a confirmation score that indicates how hard it is to reverse them (see table). Each confirmation takes between a few seconds and 90 minutes, with 10 minutes being the average. If the transaction pays too low a fee or is otherwise atypical, getting the first confirmation can take much longer.
|Confirmations||Lightweight wallets||Bitcoin Core|
|0||Only safe if you trust the person paying you|
|1||Somewhat reliable||Mostly reliable|
|3||Mostly reliable||Highly reliable|
|6||Minimum recommendation for high-value bitcoin transfers|
|30||Recommendation during emergencies to allow human intervention|
Bitcoin is still experimental
Bitcoin is an experimental new currency is in active development. Each improvement makes Bitcoin more appealing but also reveals new challenges as Bitcoin adoption grows. During these growing pains you might encounter increased fees, slower confirmations, or even more severe issues. Be prepared for problems and consult a technical expert before making any major investments, but keep in mind that nobody can predict bitcoin’s future… True !!
Government Taxes and Regulations
Bitcoin is not an official currency. That said, most jurisdictions still require you to pay income, sales, payroll and capital gains taxes on anything that has value, including bitcoins. It is your responsibility to ensure that you adhere to Tax and other legal or regulatory mandates issued by your government and / or local municipalities.
Everything is depends on which platform you are using, It is available most on every platform such Desktop, Hardware, Mobile and Web
There are thousands of businesses, across the globe, that accept Bitcoins.
a. Find Products for sale online
b. Navigate a business directory
c. Find Local Business
Hope you understand very well about bitcoins, Always remember that it is your responsibility to adopt good practices.
Bitcoin Cash (BCH)