Bitcoin and Technology behind Cryptocurrency

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Bitcoin and Technology behind Cryptocurrency

Lately I have been doing so many Facebook posts on my wall related to Cryptocurrency and people are approaching me and asking what has happened to me and what alien language I am speaking.

So, basically when you google about Cryptocurrency the basic dictionary definition which you find is as follows it’s a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Decentralized cryptocurrencies such as Bitcoin now provide an outlet for personal wealth that is beyond restriction and confiscation. Bitcoin became the first decentralized cryptocurrency in 2009. Since then, numerous cryptocurrencies have been created. These are frequently called altcoins, as a blend of bitcoin alternative. Bitcoin and its derivatives use decentralized control as opposed to centralized electronic money/centralized banking systems. The decentralized control is related to the use of bitcoin’s blockchain transaction database in the role of a distributed ledger.

What Is Bitcoin?

Bitcoin is a digital asset and a payment system created by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto. Bitcoin was introduced on 31 October 2008 to a cryptography mailing list,and released as open-source software in 2009.There have been several high profile claims to the identity of Satoshi Nakamoto; however, none of them have provided proof beyond doubt that back up their claims.

The system is peer-to-peer and transactions take place between users directly, without an intermediary.These transactions are verified by network nodes and recorded in a public distributed ledger called the block chain,which uses bitcoin as its unit of account. Since the system works without a central repository or single administrator, the U.S. Treasury categorizes bitcoin as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency,although prior systems existed and it is more correctly described as the first decentralized digital currency. Bitcoin is the largest of its kind in terms of total market value.

Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into a public ledger. This activity is called mining and miners are rewarded with transaction fees and newly created bitcoins.Besides being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. When sending bitcoins, users can pay an optional transaction fee to the miners.

What are Altcoins?

In simple words Altcoins are alternative Cryptocurrencies which were launched after Bitcoin. We have so many such Altcoins right now competing for first place. Some such famous Altcoins in the market right now are Ethereum, Ripple, Digibyte, Dash etc and many more.

I hope you have got some basic idea of what exactly is Cryptocurrency or to be specific Cryptocurrencies. Bitcoin is most widely used coin right now since it is the first currency of it’s type and has been adopted by many. So you might be wondering from where you can buy one?

How to buy Bitcoin?

In order to buy Bitcoin you need to register on few websites which provide such facility, like for example Zebpay, Coinbase, Blockchain, Spectrocoin and many more. In order to make you understand the procedure of buying and selling a Bitcoin let me walk you through the procedure on how to create a wallet and buy some Bitcoins.

Most of the people are not completely aware of what exactly is Bitcoin and from where you can buy them. If you are just getting started in the world of Cryptocurrency then it would take little time for you to understand the concept of this but in the end remember the future is all about virtual money or Cryptocurrency.

First and foremost thing you need to do is create a Wallet. In real world a wallet is something which you use to carry your real money in the same way you need to have a online bitcoin wallet in order to purchase or store your bitcoins. So many Bitcoin wallets are already there in the market which makes highly difficult for any newbie to choose the right one.

I suggest you to use the following bitcoin wallets which I highly trust. Coinbase Founded in June of 2012 based in San Francisco, California. Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin and ethereum.

Coinbase is supported 33 different countries you can check here whether it is supported in your country or not before you join them. Coinbase Supported countries list click here.

Check this video on how to create Coinbase wallet, It completely explains on how to create a wallet, Connect your bank account and how to buy bitcoins. Make sure you account is verified properly.

KYC(Know Your Customer) is the verification process which most of the bitcoin wallets follow either they ask you to verify your bank account or submit a Government provided Identity card or both. Currently Coinbase is not supported in India, so for people from India I would suggest you to go for Zebpay. Currently I am using Zebpay for all my Bitcoin transactions and I should say it’s awesome.

Zebpay is India’s first and biggest bitcoin exchange. It is a mobile app available on Android and iPhone. Zebpay is the fastest and easiest way to Buy and Sell Bitcoins in India. We guarantee fast transaction processing and the best bitcoin rates. Also buy Amazon and Flipkart vouchers at up to 10% off. And Recharge your mobile phone.

As mentioned earlier it’s mandatory that you need to verify your bank account and submit your Pan card before you buy or send bitcoins. Verification on Zebpay might take 1-3 working days but the process is simple as we need to just take photo or scan the required documents for verification.

Please let me know in case you face any challenges via comments section below, I will try my level best to answer your queries or alternatively you can also go to there support page for quick guides on how to create Zebpay wallet or for any other challenges.

Is it Safe to store my Bitcoin on Online Wallets?

Before I answer you this question please answer me one thing, Is it safe to keep your Dollars or INR in your wallets? For such question we can never answer as it completely depends on the individual on how safe he/she keeps it from others stealing it from you. In similar fashion anything Digital has it’s own pros and cons. So, when it comes to Online wallets you need to secure it from Online Hackers. Make sure you take all precautions like unique passwords or two factor authentication etc.

What are other alternatives to store my Bitcoin (BTC) ?

Yes, we do have other alternative solutions where you can store your Bitcoins and few other famous Altcoins as well. Offline Wallets like Ledger and Trezor. I prefer Ledger Wallet over Trezor, It’s just my personal choice.

For beginners I know these all would look little complicated and you wouldn’t need any kind of Offline wallets in the initial stage if at all you are just going to buy less than 5 BTC. These wallets will be useful if you want to store huge volume of BTC in long run.

I guess this article has helped you to get complete picture of what exactly is Cryptocurrency and how to get started in this futuristic Crypto world. Let me know what you think in comments section below. Feel free to share the article if you like it or if it can benefit someone in your circle, because sharing is caring!! 🙂

In my next blog I will explain on how to kickstart your journey with CryptoTrading and make money out of it.

 

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