Explaining Bitcoin

Intro

Let’s clarify what is Bitcoin and why it’s crucial to invest time in understanding it. Bitcoin has gotten a lot of attention nowadays, and not all of it good.

So, is Bitcoin :

  • Internet money?
  • an alternative currency?
  • a parallel financial system?
  • or a new way of life?

The answer is yes in all of the above questions. Bitcoin was invented by Satoshi Nakamoto (maybe this is not a real name) in 2009. Bitcoin is a divisible and satoshi is named it’s lowest divisible unit ( one hundred millionth of a single bitcoin, 0.00000001 BTC).  It is commonly called a decentralized digital currency and it is an open source software, which means that no person, company or country owns this network just like no one owns the Internet.

We should start by finding out the basics of what it is, where it came from, what it does and what you can do with it.

There are mainly 3 ways you can get bitcoins, in each case you will need a digital wallet. We are going to describe each of those ways below.

Wallets – exchange

You can buy bitcoins just like the way you buy any good nowadays The most convenient way to buy bitcoins is from coinbase platform. All you have to do is to register from this url and you will get 10 $ dollars in bitcoin after you spend 100 $ dollars in buying or selling bitcoins.

Actually you can’t deposit your bitcoins in a regular bank account but all you need it’s a bitcoin wallet. Once you open a coinbase account, you will have 3 digital wallets. One for bitcoins, one for etherium and one for litecoin. A digital wallet is nothing more than an address of reference (think about a bank’s account IBAN code) which you can use to deposit bitcoins or spend bitcoins.  In fact, you had better pay some extra attention to securing your bitcoins once you get some, but coinbase platform simplifies your security. Bitcoins don’t come from any gothic-columned mint, but from a complicated digital calculating process known colorfully as mining.

Mining

The second way to get a bitcoin is by mining.

What is bitcoin mining?

Bitcoin mining is accomplished with very fast computers solving complex equations, not with picks and shovels. It’s the way bitcoins are created. Without bitcoin miners, no transactions could be processed, and no confirmations could be given to validate your bitcoins were genuine. And of course no new coins could be brought into circulation, because no rewards would be given.

Can you have your computer mining?

On Bitcoin’s first days one could mine several bitcoins per day. It’s mining complexity was too low. In general it was a very profitable investment. Bitcoin mining was mainly done by GPUs or by specially designed computers to achieve better performance. Nowadays, the complexity in bitcoin has grown too much that mining has almost no profit at all. Maybe there is some interest in mining some other cryptocurrencies like Monero (XMR) or Etherium (ETH), but that is something that changes from day to day.

In case you want to try out in mining you can always have a very good start point in minergate. You can experiment with your laptop or desktop. Personally I mined some DigitalNote (XDN) from my laptop because I believe that it’s price will get up soon. So just for fun I mined several of them. Don’t hesitate to start mining in an experimental way because this way, you’ll get familiar with cryptocurrencies. Also minergate offers wallet for every cryptocurrency you can mine through their platform. This is very convenient.

In case you want to learn more about cryptocurrency mining please have a look here.

Farming

Another way which is totally free of charge, you can get cryptocurrencies is farming. The free of charge means that you don’t have to invest any cent. It also means that is not so much profitable, at least at the beginning.

It can’t be free of charge and profitable at the same time, right? So, how it works? You may don’t invest your money but you do invest your time. The more time you invest the more you get back in cryptocurrency. This is how it works. All you need is a plan, strategy and time. It’s a passive income and it gets better month by month.

Before you start farming you will need at least to register on eobot and coinpot. coinpot is a free digital wallet which can be used with farming sites in order to deposit the cryptocurrencies you farmed. After farming several coins you can withdraw what you have earned to your other wallets (e.g. coinbase) or invest them on eobot for further farming. Here is where eobot comes into play. I will provide more details and steps on related posts but the general idea is after farming some cryptocurrencies invest them back on cloud mining via eobot.

In case you want to learn more about cryptocurrency farming please have a look here.

Conclusion

All you read about Bitcoin are in general the same for other cryptocurrencies. There are several more advanced details which defer among the cryptocurrencies but the main difference is the market capitalisation of each of them. Bitcoin is the winner in this race but there is some interest and profit in investing in other cryptos as well.