We all have heard of it, read about it, get familiar with the idea that it exists but what is it really? Do we actually know?
Whether you ask younger or older people about cryptocurrency they don’t have a precise explanation.
Bitcoin is known to be a virtual currency which can be exchanged through online transactions. It is not the real money we are using in our day-to-day world. The money is being stored on a digital platform and all the balances are kept on a public ledger the access to which you can get without any problems, though it is also important to mention that each cryptocurrency record is securely encrypted.
If you are unsure about the necessity of investing in Bitcoin cryptocurrency, then try to get more information first. There are plenty of articles online explaining how Bitcoin works and why it has become so popular nowadays. But if you have definitely decided to go for it, here are a few easy steps to keep in mind to start your Bitcoin adventure.
1. First of all, you have to create a wallet. A Bitcoin wallet is needed in order to receive and send Bitcoins. This step is easy but you have to remember that you need the most secured option.
Once you start your registration process you will have access to two types of keys - they are called the “public key” and the “personal key”, public key being your email address and personal key - your password that no one needs to know for protection reasons.
2. Then you have to buy your first Bitcoin. You can purchase it in most places but the less complicated way is on a marketplace. This is where the beginners get it. It is a great option as you can also exchange your Bitcoins there or successfully sell them when you do not want them anymore.
We would recommend you to buy your first key on a trustworthy exchange. There are too many to choose from, so make sure you are dealing with the most reliable of all.
3. The third step in the list is to secure the Bitcoins you have. We have already mentioned that you will have the 2 types of keys. The most important key is your private key, of course. When you purchase your cryptocurrency on an exchange the private key stays in your account at the exchange. This means the company that owns the exchange has easy access to it and controls the Bitcoin you own. This can be quite risky.
The main idea of Bitcoin is to protect and control your money. So if the third party (this being an exchange) has access to it, it is no longer “private”. Also, it can happen that suddenly for any reason your account is blocked or restricted. Can you imagine the company being bankrupt? Of course, you do not want to think about it but it can happen.
From this exchange wallet you will need to transfer your cryptocurrency to a secure wallet - this wallet being a hardware wallet.
4. The way you really learn about Bitcoin is by sending and receiving them. Someone once said that there is no better way of understanding how something works than actually using it on a regular basis. This is true. Try making your first Bitcoin transaction to see what this all is about.
If you are unsure, create an additional wallet and try sending from one account to another. For better understanding, repeat this procedure. You will learn this if you buy Bitcoin at an exchange and transfer your cryptocurrency to your private Bitcoin wallet.
What do I need to do to receive a Bitcoin?
To receive Bitcoin, you only need to reveal your public key - your email address. It usually consists of a unique code of 27-34 letters and digits.
The private key is much shorter but under no circumstances you disclose this information to anyone. Never share your private key with any third parties.
Important security rules to know about Bitcoin
If you are careful with every step you take, you are most likely to experience zero difficulties with cryptocurrency. Bitcoin is generally very secure because it is based on mathematics. It is almost impossible to trick math, this is how it is not possible to trick Bitcoin either. The only way you risk losing it all is by not being controlling with your private key or using online platforms that are not secure to use.
There are a few important notes we would like to inform you about, but if you are considerate and follow the rules, you promise you there is absolutely nothing for you to worry about.
1. Bitcoin transactions usually cannot be refunded. So you need to be very responsible with it.
2. The transaction can only be considered successful if confirmed on the network. This way you need to understand that it cannot be valid until you have received a confirmation - usually it is not only 1 confirmation that you receive. We also recommend you to wait for more than 1 to be sure.
3. Bitcoin allows you to send and receive money without our self-identification. But you have to remember that all the transactions are stored in a shared ledger and users can be public or anonymous.
4. Hardware wallet is much better than an online wallet you get from exchange. If you are serious about Bitcoin and want to keep adding to your wallet further on, consider our advice.
5. Read the instructions carefully. When you agree to something, make sure you know what to do. If you are dealing with a marketplace or an exchange, try to find out more about them. But the most important is of course, your wallet being safe. Make sure your money is in the right place all the time. This way you won’t have to worry about a thing.