Learn Bitcoin

What Is Bitcoin? Complete Guide For Beginners

The Internet has drastically changed many things from staying connected with friends, family, and relatives, entertaining ourselves, and conducting businesses regarding shopping, education and more. While other technological advancements like Bitcoin which is already helping many people with a convenient online payment method. Bitcoin is one of the world’s famous digital currencies. It has seen tremendous success recently and many experts believe that this cryptocurrency will go far away. There are still many people who don’t know about Bitcoin and various things related to Bitcoin.

Mentioned below is a complete guide for that person who is a crypto enthusiast:

  • What is Bitcoin?

Bitcoin is defined as a decentralized digital currency operated without the involvement of governments or any other third party. The ticker name of Bitcoin is BTC. An unknown person named Satoshi Nakamoto invented Bitcoin in 2008. 2009 is the year when Bitcoin was started. The source code of Bitcoin was released as open-source software. Its domain name was “bitcoin.org” during registration. The registration of this domain name was done in August 2008. The posting of a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” with the name of Satoshi Nakamoto was done in a cryptography mailing list in October 2008. Satoshi Nakamoto created blockchain technology in 2008 for helping Bitcoin transactions. Nobody knows much about Satoshi Nakamoto except for this name. 

  • How Does Bitcoin Work?

  1. Alice sent Bitcoin to Bob.
  2. A new block of this transaction will be created and broadcasted over a network. The network consists of electronic devices like computers, mobile phones and more. The electronic devices are known as nodes.
  3. The nodes of the network will verify and validate this transaction.
  4. Once this transaction is verified and validated, then the block will be added to the existing blockchain.
  5. Bob finally received Bitcoin.
  • What To Purchase With Bitcoin

Bitcoin can be used to buy electronics materials from Newegg, household and kitchen items from overstock.com, jewelry from Reeds Jewelers, Inc. and books from Purse.io., satellite television and internet services from Dish, pizza from PizzaForCoins, games, movies, and apps from Microsoft, and make domestic and international flight arrangements with the help of CheapAir and Expedia.

  • Bitcoin ATM

A Bitcoin ATM is defined as a kiosk connected to the Internet. It can be used to purchase Bitcoin. Cash Kiosks and ATMs are the two main types of Bitcoin machines. The look of Cash Kiosks is similar to traditional ATMs. Their connections are not with bank accounts. Users are connected with Bitcoin exchanges through Bitcoin Cash Kiosk. Bitcoin-enabled ATMs are defined as traditional ATMs connected to bank accounts. The cashless purchase of bitcoin can be done. Bitcoin ATM locations can be found worldwide.

The United States: (2675 locations)

The United Kingdom:  (225 locations)

Austria: (275 locations)

Ireland: (2 locations)

Norway: (2 locations)

Singapore:  (9 locations)

Israel: (8 locations)

Brazil: (2 locations)

Japan: (6 locations)

  • How to buy Bitcoin

Here are the following simple steps to buy Bitcoin:

  1. A user must have a Bitcoin wallet before buying Bitcoin
  2. Look for a cryptocurrency exchange who offers the buying and selling of Bitcoin
  3. Create an account
  4. Log in into the account
  5. Connect the Bitcoin wallet with the account
  6. Place an order for Bitcoin
  7. Use fiat currency to buy Bitcoin
  8. You will receive your Bitcoin into your Bitcoin wallet.
  • Bitcoin Wallet

Bitcoin wallets are used to store and secure your funds.

Hardware: Ledger Nano X Wallet and Ledger Nano S Wallet

Desktop: Exodus wallet, Armory Wallet, and Copay Wallet

Web: Copay Wallet and OmniWallet

Mobile: BTC.com Wallet, Bread Wallet, and Copay Wallet

  • Bitcoin Mining

Bitcoin mining means adding a new block of transactions and generating a new Bitcoin. A miner who solves a mathematical equation at the first will add a new block to the existing blockchain. The first miner will be rewarded with a validated Bitcoin. Finding a correct nonce (a 32-bit arbitrary number which is used only once) is must to solve the mathematical equation. More hash rates mean a maximum chance of finding the correct nonce. Bitcoin is the only cryptocurrency mined at large scales. Most worldwide large operators mine Bitcoin in low-temperature areas with low electricity costs. A Bitcoin mining business depends upon various factors [hash rate, bitcoin reward per block, mining difficulty, etc]. Therefore, profits through the Bitcoin mining business is not easy. CoinGecko, My Crypto Buddy, WhatToMine, NiceHash, and Cryptocompare are some of the Bitcoin mining calculators.

  • Bitcoin Exchange

A Bitcoin exchange is an online Bitcoin business. Bitpanda, Changelly, CEX.io, Bitstamps, and ShapeShift are the cryptocurrency exchanges where customers can buy and sell LTC. The customers can trade LTC for other cryptocurrencies or fiat currencies like USD, EUR, and Yen.

Bitpanda: It is headquartered in Vienna (Austria). It was founded in 2014. Eric Demuth is the CEO and co-founder of Bitpanda. It supports cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Pantos (PAN), Bitcoin Cash (BCH), IOTA (MIOTA), Litecoin (LTC), Komodo (KMD), EOS (EOS), Dash (DASH), OmiseGO (OMG), Augur (REP), Stellar Lumens (XLM), 0x (ZRX), NEM (XEM), ZCash (ZEC), Tezos (XTZ), etc. It supports fiat currencies like Euro (EUR), Swiss franc (CHF), Pound Sterling (GBP), and US Dollar (USD). It supports payment options like Bank transfer, Credit card, Cryptocurrency, Debit card, Neteller, Bank transfer (SEPA), and SOFORT. Customers can buy and sell cryptocurrency. 

Changelly: It is headquartered in St Julian’s, IL-BELT VALLETTA, Malta2013 is the year when the team of MinerGate created the first Changelly prototype as a startup. Changelly was completely founded in 2015. The present CEO of Changelly is Ilya Bere. While the previous CEO of Changelly is Konstantin Gladych. Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Monero (XMR), Zcash (ZEC), Dash (DASH), Ripple’s XRP, Ethereum Classic (ETC), Litecoin (LTC), Dogecoin (DOGE), Stellar Lumens (XLM), FirstBlood (1ST), AdEx (ADX), HyperSpace (AMP), Aragon (ANT), Basic Attention Token (BAT), etc are available cryptocurrencies. US Dollar (USD) and Euro (EUR) are the supported fiat currencies. It supports payment options like Credit/Debit Cards. Customers can buy and sell cryptocurrency on Changelly.

CEX.io: It is headquartered in London, United Kingdom. It was founded in 2013. The CEO and co-founder at CEX.io are Oleksandr Lutskevych. Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Stellar Lumens (XLM), Bitcoin Cash (BCH), Dash (DASH), Zcash (ZEC) and Bitcoin Gold (BTG) are available cryptocurrencies. US Dollar (USD), Euro (EUR), Pound Sterling (GBP), and Russian ruble (RUB) are the supported fiat currencies. It supports payment options like Credit Card, Cryptocurrency, Debit card, Bank transfer (SEPA), and SWIFT. Customers can buy, sell, and trade cryptocurrency on CEX.io. 

Bitstamp: It is located in London, Luxembourg, Slovenia. It was founded in 2011. Nejc Kodrič is the CEO and co-founder of Bitstamp. Bitcoin (BTC), Ripple (XRP), Litecoin (LTC), Ethereum (ETH) and Bitcoin Cash (BCH) are the supported cryptocurrencies. US Dollar (USD) and Euro (EUR) are the supported fiat currencies. It supports payment options like Credit card, Cryptocurrency, Debit card, Bank transfer (SEPA), Wire transfer, etc. Customers can buy, sell, and trade cryptocurrency. 

ShapeShift: It is headquartered in Zug, Switzerland. It was founded in 2014. Erik Voorhees is the CEO and founder of ShapeShift. It supports cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), BTG, Ethereum (ETH), Ethereum Classic (ETC), FUN, FirstBlood (1ST), Aragon (ANT), Basic Attention Token (BAT), Bancor (BNT), BlackCoin (BLK), Civic (CVC), CLAM, Dash (DASH), Decred (DCR), DigiByte (DGB), district0x (DNT), GameCredits (GAME), etc. It supports payment options like Cryptocurrency. Customers can buy and sell cryptocurrency.

To learn more about cryptocurrency exchanges, click on the link: Cryptocurrency Exchanges: Complete Guide For Beginners-1

To learn more about cryptocurrency exchanges, click on the link: Cryptocurrency Exchanges: Complete Guide For Beginners-2

Post Disclaimer

This article is for informational purposes only. The information is provided by What Is Bitcoin? Complete Guide For Beginners and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. The Blockchain Cafe does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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