What is Bitcoin? | How to buy Bitcoins? - Best guide for Beginners! : Technology

According to Oxford, cryptocurrency is a digital currency. In which transactions are verified and records maintained through a decentralized system using cryptography, rather than a centralized authority. Therefore, Bitcoin is a cryptocurrency. It is commonly used by every person nowadays. Read the complete article for a better understanding of the term Bitcoin. Further, discover how it can be useful to you—a guide for beginners.

Bitcoin?

The foremost question which hit your brain would probably be, What is bitcoin actually? Bitcoin is a cryptocurrency invented by an unknown entity Satoshi Nakamoto. Further, it was introduced in the year 2008 but firstly used in 2009. The motive behind this digital currency is to provide a peer-to-peer version of electronic cash. Bitcoin initially focused on the removal of the third party in the transaction process. In a general sense, all banking systems work as a third party in any transaction. But with the use of cryptocurrency, one can exclude a third party from the transaction. Furthermore, all banks are controlled by central banks. At the same time, a centralized system does not control Bitcoin.

Working of bitcoin

In a general financial system, you are defined as a depositor when you deposit a certain amount in a bank. The deposited amount proceeded as a loan to Companies and individuals.

Whereas, in cryptocurrency, all bitcoin transactions have a single public account. Also known as Ledger. A copy of this account is available at each system that is a part of Bitcoin. Miners run the courses of Bitcoin. Verifying the transactions is the main responsibility of the miner. For instance, “X” wants to transfer 4 bitcoins to “Y.” Thus, the miner has to verify that whether “X” actually has 4 bitcoins in his account or not. To confirm the transaction, the miner has to solve a complex mathematical equation, for these miners required a high processor and powerful computers to complete this work. After confirmation, other computers verify the same. Hence, the transaction is added to the chain. That’s why this technology is popular as Blockchain. After all the above information, you people must be thinking. How can you buy Bitcoin?

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How to buy Bitcoin?

Nowadays, bitcoin is used as an investment tool globally. Since 2013, bitcoin is used as an investment here. RBI is the regulator of currency in India. Although, in the year 2018, RBI barred transactions in cryptocurrency in India. Basically, it was not a ban but a blockage on the use of cryptocurrency here. One cannot buy and sell Bitcoin in Indian currency. But in March 2020, “Supreme Court of India had clearly removed this blockage and specified the ban by RBI was inappropriate.”

BuyUCoin, Coinshare, and Unicoin are some popular platforms to buy bitcoins. Unicoin is an Indian-based exchange. The above allows one to buy, sell and hold bitcoins. Person to person exchanges is also performed. But for that one, I need LocalBitcoins. Further, LocalBitcoins use escrow protection for the safeguards of the transactions.

Before dealing with Bitcoin, one has to create an account with the above-stated platforms. Enter your valid e-mail and contact number. Verify both. Enter details of your bank account. Perform KYC process. However, some platforms do not require KYC. But beginners should use KYC platforms for better protection of transactions. And after completion of the KYC process, you are all set to invest in it.

However, bitcoin is termed as one of the best investment platforms in the current scenario. It is always advisable for the investors to take precautionary steps before investing to minimize risk. Here all the relevant information related to Bitcoin is disclosed.

So, there you have it, guys. This is all the information you need to know about Bitcoins. To get all the latest updates on Technology, stay tuned with Game Stanza and follow us on Google News.