Bitcoin has been a hot topic of conversation for the last few years, and it seems that this virtual currency will continue to be talked about for quite some time. It’s not only a new way of paying for goods online, but also a new way to invest. So what exactly is Bitcoin and how does it work?
What Is Bitcoin?
Bitcoin is an electronic currency that can be used for buying and selling goods online, and even used as an investment. It is not backed by any government or central bank, so it is considered to be a form of digital cash. The value of Bitcoin is determined by supply and demand, which is why it fluctuates constantly.
How Does Bitcoin Work?
Bitcoin is a peer-to-peer network that uses cryptography to secure transactions. Each transaction is recorded on a public ledger known as the Blockchain. This ledger contains all the records of transactions and is updated every ten minutes.
Where Can I Buy Bitcoin?
There are many ways to buy Bitcoin. You can trade it for other currencies, or you can buy it directly from someone who already owns it. There are exchanges that allow you to trade your local currency for Bitcoin, and then there are websites that will sell you Bitcoin directly. One of the best places to get started with Bitcoin investing is at Coinbase.com.
Where Can I Sell My Bitcoins?
You can sell your bitcoins through any exchange. Many exchanges are also integrated into online shopping sites, allowing you to use them to buy items. If you’re looking for a place to sell your bitcoins, try BitStamp.com.
When Should I Buy Bitcoin?
If you want to invest in Bitcoin, you should wait until the price increases significantly before you start buying. You don’t want to get into the market right after the price has dropped because you’ll lose money. As the price rises, more people will begin using it, and the supply of Bitcoins will decrease. When the supply decreases, the price will increase.
