Sunday, October 17, 2021

Bitcoin for Beginners

Bitcoin for Beginners – The world of cryptocurrency was heralded with the introduction of Bitcoin, and even though it was met with a lot of resistance from critics and skeptics, Bitcoin surmounted the challenges to become one of the most valuable cryptocurrencies on the list of successful cryptocurrencies.

Bitcoin Tutorials for Beginners

For a beginner who is new to Bitcoin, it is important to know what it is and how it works, before getting involved. This short tutorial will touch the basics about Bitcoin in a simple and understandable way.

More than a decade ago, Bitcoin was created by Satoshi Nakamoto, and the digital currency was created as a way for people to get the economic independence that traditional banking systems were not giving. The underlying blockchain technology made Bitcoin a decentralized digital asset that functions on a peer-to-peer basis, while eliminating the irregularities that centralization brings to traditional banking frameworks. It may interest you to know that bitcoin’s operation and security is based on a combination of complex mathematical algorithms, mathematical principles, as well as computer engineering. Some of the amazing features that come with Bitcoin include fast cross-border transactions, enhanced cryptographic security, privacy, decentralization, transparency, immutability, etc. In recent times, Bitcoin implemented the “Lightning Network”, a framework to improve the scalability of the coin.

At the moment, Bitcoin is gaining global acceptance, and is fast becoming an alternate means of payment in place of fiat currency and credit cards, which is great for the crypto community’s move to make Bitcoin a mainstream payment method.

Bitcoin Mining for Beginners

Bitcoin can be gotten through different means, and Bitcoin mining is one of them. This involves the use of special computers that solve complex mathematical problems in order to get Bitcoin. It is imperative to consider the following before going into Bitcoin mining:

Furthermore, parameters mentioned above are a function of the Bitcoin miners used. There are three major classifications of Bitcoin miners:

  • Graphics Processing Unit (GPU)
  • Application Specific Integrated Circuit (ASIC)
  • Field Programmable Gate Array (FPGA)

It may interest you to know that even though Bitcoin mining is profitable, it is capital intensive and getting ROIs needs some patience.

Best Bitcoin Wallets for Beginners

Just like you put fiat currency in wallets, it is also important to store your Bitcoin in secure digital storages called Bitcoin wallets. Some of the best bitcoin wallets for beginners include:

Hardware Wallets

These are also referred to as offline wallets that can be carried about and used to facilitate Bitcoin transactions on the move. Examples are Trezor, Ledger Nano S, Keepkey, Paper Wallets, etc,

Mobile Wallets

Mobile wallets refer to crypto wallets that are installed and used on mobile devices. Examples include Exodus, Jaxx, Xapo, etc.

Online Wallets

These are digital wallets run by crypto exchanges and other crypto platforms. Some examples include Cryptonator, Coinbase, etc.

Security is a very important part of Bitcoin transactions, and it is important that you keep your Bitcoin wallet as safe as possible, especially your wallet’s private key.