Generally, money has been used for centuries as a medium of exchange. Traditional mediums of payment and modes of transaction presented a form of complexity, thus becoming less efficient and convenient. Similarly, the native barter system of trading was even more inefficient with problems such as double coincidence of wants and indivisibility. Thus, there have been numerous inventions that have revolutionized how people are settling financial transactions.
Currently, cryptocurrencies are being used by different people in settling their accounts. One common type of online digital currency is Bitcoin. This is a form of decentralized digital currency that facilitates an instant transfer of payments between peers.
Like any other type of cryptocurrencies available online, BTC is a high-end digital currency that uses Peer-to-Peer technology to complete transactions instantly. Since a considerable number of trading activities are performed online, this currency provides both a tech-friendly and user-friendly digital currency platform. Thereby making it a simple to use and go-to payment system.
You could be wondering where BTC comes from? The technique behind creating BTC is not complicated but will require in-depth knowledge for one to master the art. It is called Bitcoin mining. The process involves compiling and putting all transactions together, to form Block chains. These Blocks are then used to solve some type of difficult computational puzzle.
Steps Involved Before you Can Transact with Bitcoin
There are a series of steps you will need to follow, before you can start selling, buying or trading in Bitcoin.
First of all, you will need a Bitcoin Wallet where you can store your BTC. The most popular wallets being a special, open source type of software that generates your bitcoin address. There are individual and unique codes that are specific to a given wallet and are not identical to any other wallet. These codes and keys enable every transaction you perform with your BTC to remain unique and authentic.
You will find hundreds of Bitcoin wallet providers. Your choice will depend on your specific needs. It is crucial that you choose a wallet that is simple and easy to use.
The second step which is more important is verifying your account. You will have to provide your MasterCard, Bank or Pan Details. Once verified, you will have to deposit some coins into your wallet. You can do this by buying either through your Credit Card, Bank transfer, or any other method, depending on the terms provided by your wallet provider. You will then receive BTC from your provider directly into your wallet or BTC account.
With the coins in your wallet, you will be able to buy, sell and basically trade using your BTC, whatever your purpose could be. When sending BTC to a friend, firm or company, the recipient must also have a wallet. From their wallet, the recipient will have their specific Bitcoin Address where you will direct your payment to.
Performing transactions with BTC is safe and secure, free from fraud. Once your transaction is complete, it cannot be reversed or retraced. However, each transaction has a record in the BTC network, and you could view it.