It is a ‘digital wallet’ app, which is a computer file. While it may sound enticing, it should carefully learn that it is not a physical currency like Rupee, Dollar, but a Cryptocurrency, arguably the future money.
Bitcoin was created in 2009 and has received immense importance and popularity since then. It can be used to buy or sell from those who accept Bitcoin as a currency. However, Bitcoin, in many ways, is different from the traditional currency. Though to date, Bitcoin is not accepted everywhere; it is expected to be future currency. The essential factors that help people deal with Bitcoins are the same factors that can facilitate their growth and progress. This advancement in Bitcoin growth is appreciable and very attractive too.
How to do Bitcoin mining?
The following are the steps to perform for the Bitcoin mining-
- It would help if you had a ‘Bitcoin mining rig’ – ASIC (Application-Specific Integrated Circuit chips) special hardware designed only for Bitcoin mining.
- ‘Bitcoin wallet’ set up – It is a software wallet which is safe and easy to handle. It is suitable for manipulating of mined currency.
- ‘Mining pool’ to be joined – There are many mining pools available to join. You can choose any collection based on the graph plotted the availability from 2017. Once selected you have to register on its website and create your account.
- Install the ‘mining’ program on your PC – Blockchain needed to be connected to run a client on your computer. Some mining pools will have their mining program.
- Start mining – Now, you can start earning Bitcoin through mining.
How do we mine Bitcoin?
Bitcoin can be purchased and sold through mining. It is a process of transaction of Bitcoins. Each transaction chain and flow is recorded in the public ledger called Blockchain. Miners serve confirmation of every transaction to the Bitcoin Community and also ensure each one is legal. Bitcoin mining can be done via distributed computer systems that have the program to solve complex mathematical problems.
Miners maintain a record of each requested transaction in a global ledger in a block, which gets broadcasted and verified. To provide strength to the Cryptocurrency network, miners are rewarded during the creation of a new block. These days mining is done through software ASIC (Application-Specific Integration Circuit), tailored only for this purpose.
Benefits of Bitcoin mining
Bitcoin and other Cryptocurrencies provide many advantages. It cannot be freeze by banks like other currencies. You are the sole controller of your Bitcoins. Some other highlights of Cryptocurrency are-
- It cannot be counterfeit
- Fees are lower
- Everyone can access
- Third parties are not needed
- Identity cannot be stolen
When you have Bitcoin, you need not worry about stealing your information like on credit or debit cards during transactions. Bitcoin, being a digital currency, cannot be counterfeited, which may lower the cost of goods or property if more and more people use it.
Being assertive about Bitcoin Mining
When we think about spending or investing money on something, we first think about the risk factor. The higher the price or investment, the higher is the risk. Assets are very important for one to have regular cash flow, but investments are risky too. While one plan for the steady cash flow for the future, he plans investment also. There are many ways of investments for regular cash returns. One needs to understand the requirement and, according, have to plan investment—however, a lot of differences between when it comes to other investments and that in Bitcoin trading.
Other investments are not that profitable but comparatively safe, while investment in Bitcoin trading may be very beneficial but have high risk. The biggest threat to Bitcoin trading is cyber theft. Since there exists huge money in Bitcoin trading, one is bound to be prone to cyber theft. Usually, cybercriminals are highly qualified, and either they do it for themselves hired by someone for it. Therefore a lot of precautionary measures have to be taken to protect your Bitcoin trading.
Buy Bitcoin at a lower price and sell at a higher price
Trading of Bitcoin can be done with people in the marketplaces. One can buy or sell Bitcoin by exchanging it or directly from other people. Depending on whom you are buying, the transaction can be done through cash, debit or credit cards, wire transfers where its legalized, or even with other Cryptocurrencies. One needs to understand that you need to have a wallet set up, in which you can store your Bitcoin. If you want to buy Bitcoin, you need to open an account in the Cryptocurrency exchange, which will do the job. Many are operating, and many emerge new. Some close down because of hacking, which is an ongoing challenge with great speed and momentum. If buying Bitcoin at a lower price, you can follow the persistent updates released from time to time on digital platforms of Cryptocurrency exchanges. It is more or less like a share trading market where you need to remain updated at any given moment. You can look for the exchange at a lower rate.
There are different platforms available for selling the Bitcoin with the exchange in the desired form viz, cash, wire transfer, etc. following are some examples through which you can sell your Bitcoin
- Coinbase – Popular one with a network in 103 countries
The platform helps you out to place your Bitcoin for sale. You need to know the exact valuation on the date you want to sell. Once you put for sale, you can repeat the steps, but there will be a holding period for the transaction, and the transaction will take place only when the holding period is over.
There is another way of direct trading, too (peer-to-peer trades). You have to register, and maybe you will be required to confirm your identity, like in normal selling methods. If your account is set up, you can sell your Bitcoin at the rate you decided to sell in a much more direct manner. Since here there is no assistance of automated transactions, you will need to initiate your transaction. There is also a system of alert pop-up if a buyer is available to buy at the value you have put on it.
Like all other systems, there lie many pros and cons in this system too. The most important thing is understanding the necessity and risks associated based on wealth’s status. The availability of cushion wealth and the age will be the key factor for deciding whether or not to adopt Bitcoin trading. There will be positive and negative in this trading also and of course, there involves the value of Bitcoin for one to consider going for it.
Though it is assumed to be the currency of the future, the question remains is, when? Having seen the slump is the current status of the economy throughout the world, one must surely not forget to do the complete research, study, analysis, and evaluation of the data available. Before venturing into this field, which has great benefits, lucrative advantages, there is also the unsteady market condition and poor or no business growth. Moreover, the very little population in the world is aware of the term Cryptocurrency, and most are not even aware of such a term exists.