Bitcoin is an online alternative currency system, which acts as a form of digital money. Bitcoin is used both as an investment, and as a method of payment for goods and services, and is touted as a means to do so without needing to involve any third parties. Despite their growing popularity, most businesses still do not accept Bitcoin, and their usefulness as an investment is both highly questionable and potentially risky. Before proceeding to buy Bitcoin, it is important to understand what it is, and its advantages and disadvantages

Understand Bitcoin basics.

Bitcoin allows you to exchange money instantly with anybody in the world, without needing to create a merchant account, or use a bank or financial institution.

Transferring money does not require names meaning there is little risk of identity theft.

Learn about Bitcoin mining.

Bitcoin mining, which is the process by which Bitcoin are created. While mining is complex, the basic idea is that each time a Bitcoin transaction is made between two people, the transaction is logged digitally by computers in a transaction log that describes all the details of the transaction

Learning The Advantages and Disadvantages of Using Bitcoins

Bitcoin’s advantages.

Low fees

Protection from identity theft

Protection against payment fraud

Immediate transfer and settlement.

The downsides of using Bitcoin.

Keep in mind the Bitcoin network is not immune to hackers, and the average Bitcoin account is not completely secured against hacking or security breaches

One study found 18 of 40 businesses offering to exchange bitcoins into other currencies have gone out of business, with only six exchanges reimbursing their customers.

Price volatility is also a major downside. This means that the price of Bitcoin in dollars fluctuates wildly.

Setting Up Bitcoin Storage

There are two ways you can store Bitcoins online:

Store the keys to your Bitcoins in an online wallet. The wallet is a computer file that will store your money, similar to a real wallet. Store your Bitcoins via a third party. You can also create a wallet by using an online wallet via a third party site.

Create a paper wallet for your Bitcoins.

One of the most popular and cheapest options for keeping your Bitcoins safe is a paper wallet. The wallet is small, compact, and made of paper that has a code. One of the benefits of a paper wallet is the private keys to the wallet are not stored digitally. So it cannot be subject to cyber attacks or hardware failures

Use a hard-wire wallet to store your Bitcoins

Hard-wire wallets are very limited in number and can be difficult to acquire. They are dedicated devices that can hold private keys electronically and facility payments. Hard-wire wallets are usually small and compact and some are shaped like USB sticks

SUMMARY

If you want to buy Bitcoins, you will need to set up an online storage site by either installing a wallet on your home computer or creating an account with a third party site. You can also store the key to your Bitcoins on a piece of paper printed with a code. Once you’ve set up your account, you can obtain Bitcoins by purchasing them through an exchange service, or you can purchase them from an individual Bitcoin seller. In some areas, you can even find Bitcoin ATMs where you can convert your Bitcoins into cash.

GOOD LUCK!

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