Bitcoin is a new and innovative digital currency that can be accessed online, regardless of where you are. The bitcoin system is based on crypto-currency and it is acceptable all around the globe. Bitcoin works using a peer-to-peer (p2p) technology and operates without the need of a central authority or an oversight body. Bitcoin is a valuable form of virtual currency, as there is only a maximum of 21 million units in the market at a certain time. Besides that, new bitcoins are generated at a diminishing rate.
Compared to other online transaction systems like Paypal, bitcoin uses p2p which eliminates the need for a third party to complete the transaction. Using bitcoins will help you to save in terms of transaction costs. Especially for people and online businesses that make a large number of virtual transactions, bitcoins can help you to reduce costs. Besides that, the currency is decentralized. What this means is that the currency is free from the control of central authorities. Regular banknotes and coins are suppressed and controlled by statutory bodies which oversee the printing and distribution of real currencies to the public.
So how do you use bitcoins? First of all, you will need to create a bitcoin wallet. Bitcoin is a virtual currency, so you will have to keep it in an e-wallet. E-wallets are secure and easy to access and use. To get you started, you can start by signing up for a bitcoin wallet on the Internet. There are many service providers like My Wallet from blockchain.info which provides you with free e-wallet services.
To make bitcoins even more accessible, many companies are providing users with bitcoin wallet applications for smartphones. Selling and buying bitcoins can now be completed with a tap on your smartphone. If you are an Android user, you will be able to find many mobile apps to sell and buy bitcoins on your Google Play Store.
To improve the security of your bitcoin wallet, most people download and install desktop clients to store their bitcoin transactions on their computers. After you start your bitcoin wallet, always remember to save the file and back it up from time to time onto your desktop. Unlike banks, you are in charge of the safety of your currency and money. The Satoshi Client is widely used by bitcoin users as it has been in the market since 2009.
You can sell and buy bitcoins after you have your wallet. There are a variety of methods that can help you obtain this virtual currency. You can purchase bitcoins from various sellers, receive it from business transactions, do simple tasks and work to gain free bitcoins and you can carry out bitcoin mining. Bitcoin has been growing in demand over the years and the demand is expected to grow even stronger with the depreciation of real currencies. If you want to understand more about the concept of bitcoin and how it can benefit you and your business, feel free to search the Internet for more information.