Digital currency is based on a database distributed among multiple computers on the network, on which all transactions are updated continuously and checked. The system is encrypted using peer-to-peer technology. That we learned about through the popular WhatsApp messaging app, on which conversations are encrypted precisely through this technology. Or it looks familiar to anyone who uses Torrent to download music, movies, etc.
Cryptographic keys are essential in the Bitcoin system. Public keys are associated with transfer addresses, while the private key is used to authorize only the owner of an individual share to spend that share. This system is called Blockchain, whose central core is the enormous distribution of the database, which allows not only excellent transparency but also, through the verification as mentioned earlier system, the correct functioning of the currency.
The information that contains all the transactions is divided into blocks, which must be solved by the community through the mining above. To put it, each block sees associated with it a cryptographic validation key, which, once resolved, is recorded. The miners’ compensation derives precisely from the reward for solving a complex operation.
And it consists of a share of Bitcoin. But mining, as we said, is increasingly complex and less convenient to carry out. The closer you get to the fateful 21 million marks, the more complicated it is to solve mathematical problems. To earn through Bitcoin, it is advisable to trade through online trading platforms.
We will talk about it. However, the compensation of the “miners” consists partly of generated Bitcoins and partly through the payment of transaction fees.
How to use bitcoin coins
Bitcoin is, in all respects, a currency. Except that instead of being paper or metal, it is in a virtual format. Expressed in code. If you want to hold bitcoin coins, you need to have an individual wallet, which is nothing more than a virtual wallet through which you can interface with the Blockchain.
Through the wallet, it is possible not only to hold but also to send or receive money. As if you were managing an ordinary bank account. The receipt of a payment takes place through the appropriate addresses provided by the wallet itself. On the other hand, to send money, it is advisable to know the recipient’s address. When making a payment, it becomes mandatory to pay small commissions, which form part of the miners’ compensation. Through a higher or lower commission payment.
How to buy and sell bitcoins
Transaction means an intermediation service which, upon payment of a small commission, allows you to buy and sell digital currencies. So not only Bitcoin but also Ethereum, Ripple, Litecoin, etc. including Bitcoin, Ethereum, and numerous other less widespread. In Exchange, Bitcoin is represented with the abbreviation BTC, as it is called on the stock exchange, and it is possible to see its quotation in real-time in Dollars and Euros. It is worth mentioning that exchanges are not regulated like online trading platforms (also called brokers), so you have to rely on the more reliable ones. To avoid finding yourself in a scam. thebitcoincode.io help in the transaction of the bitcoin currency.
The most famous and essential online exchanges are. Signing up for these services is very simple, and the usual personal data are requested, plus the sending of some documents for a security issue
Do not consider this practice a nuisance or a waste of time. It is proof that the Exchange in question is transparent. Once the registration procedure has been carried out, different payment and withdrawal methods will be available: bank transfer, PayPal, postpay, or credit card. Each has different times and costs, generally reported by the Exchange. At this point, it is advisable to deposit the currencies in the chosen wallet.
In other words, it will enable you to pay the purchase receipts directly through cash payment in a bookshop or post office. Once payment has been received, the managers send the chosen value and currency. It allows you to buy several virtual coins, and the minimum amounts required are not particularly high. But it must also be said that it does not provide many functions present on the exchanges.