Advantages of Bitcoin, Best Sites to Invest and How to Spend Them
What You Need to Know About The Best Bitcoin Sites
The entry of cryptocurrencies into the world of finance was precipitated by the desire to eliminate bureaucracies in the banking system, expensive & slow processes of sending money, and lack of privacy. The pioneer cryptocurrency and the leading coin in the market today is Bitcoin. How much do you know about Bitcoin? What are the best Bitcoin sites? Are BTCs stored in a server? Here is everything you need to know.
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What is Bitcoin and How Does it Work?
Bitcoin (BTC) is a cryptocurrency that was launched in 2009 by an anonymous person/s only known by the name Satoshi Nakamoto. Satoshi created only 21 million Bitcoins and that is the quantity that shall ever exist in the Bitcoin ledger.
Bitcoin is a peer-to-peer technology designed to operate without a centralized authority such as a bank. As an open-source digital currency, it is public and nobody controls it. Therefore, anyone, including you, can take part by purchasing the coin or mining.
Bitcoin works on a public ledger, also called Blockchain, where transactions are run and stored. The ledger consists of progressive blocks of information that are permanent, indestructible and verifiable. This means that once a transaction has been completed, it cannot be reversed whatsoever. To demonstrate how Bitcoin works, here is a closer look at a completed transaction. Note that both the sender of Bitcoins and recipient must be in the Bitcoin network on the best bitcoin sites.
When a person initiates a transaction to send a Bitcoin, he has to enter the recipient’s public address in his wallet. The Bitcoin system generates a complex puzzle that miners (nodes spread in the Bitcoin network) have to solve in order to have a chance to confirm the transaction and add a new block into the public ledger. It is a race that uses proof of work (POW) consensus algorithm. If you are first to get the puzzle right, you are rewarded with some Bitcoins.
Miners confirm whether you have ample Bitcoins to spend. Once the transaction is confirmed, the Bitcoins you sent will be deducted from your wallet and added to the recipient wallet.
How to Invest in Bitcoins?
The best way to invest in Bitcoins is by buying and holding the coins. For example, those who bought Bitcoins when the value of each coin was about one or less than one dollar in 2009 enjoyed return on investment of about 1,950,000% by the close of 2017 when Bitcoin price almost hit $20,000. Therefore, if you need to invest in Bitcoin you need to follow the following process:
- Set aside some cash to buy Bitcoins.
- Look for a good Bitcoin wallet. This is the location for storing your Bitcoins. You can opt to store the coins in an online wallet or hardware wallets.
- Identify the best Bitcoin sites to buy your coins. These are the exchanges that bring together Bitcoin buyers and sellers. If you know a person with Bitcoins and willing to sell, you can make a direct purchase.
- Once you have bought Bitcoins, hold and sell later when the price moves up.
The Advantages of Bitcoins over Conventional Currency
If you want to use Bitcoins in any of the best Bitcoin sites, it is also important to understand the benefits associated with it. The primary reason for creating Bitcoin was to make payments easy, fast, and cheap. Bitcoin has managed to achieve this. Here is a demonstration of other advantages of Bitcoins.
When you run a transaction with Bitcoin, no one can easily tell who you are. Unlike banks where cashiers and bank managers can peruse their books to know how much you withdrew and sent, there is no way that one can know about your details when using Bitcoin. It is a great way to send money and make payment secretly in the best Bitcoin websites.
This is perhaps the main reason that forced Nakamoto to come up with the idea of Bitcoin. Unlike banks that take days when you are sending funds abroad, Bitcoin transactions are instant. No matter where you are located, as far as the sender uses the correct public address, the transactions will be completed in seconds.
A great way to lower danger of fraud
Unlike credit cards where you have to provide the number of your card to complete payments, no personal details about yourself are required when using Bitcoin. The only thing that you need is the public address of the recipient. Therefore, making online transactions with Bitcoins is a great way to reduce fraud.
Freedom from third parties
If you save cash in a bank, it can easily be frozen by authorities. For example, if a case hauls itself to your doorstep, a judge can freeze the account with the strike of a pen. However, no one can freeze your funds stored in Bitcoin. This is because the Bitcoin network is neither owned nor controlled by any party. Your funds will, therefore, be free from third party seizures including tax authorities. No one can get it!
Where Can You Spend Bitcoins
Though the concept of cryptocurrencies is still relatively new, a number of stores have come out to support it. Check some of the best Bitcoin sites that accept Bitcoins for the payment of services and goods. A good example of a store that allows people to spend Bitcoin online is overstock.com. You can also spend Bitcoins at Shopify, Utopia, Microsoft, and in a BOINC project.
Today, most online casinos also accept payment in Bitcoins. The online casinos have been looking for ways to diversify payments and make it extra convenient for clients. Once you have identified an online casino that supports Bitcoin, you will enjoy its easy and fast way of making deposits to play casino games such as online poker, blackjack games, and slots games.
Many people prefer online casinos because they also offer diverse casino bonuses. The casino bonuses such as no deposit bonus allow users to play most casino games such as slot games, blackjack games, and online poker among others free. Make sure to check whether the casino bonus comes with specific requirements.
The 7 Best Bitcoin Sites for Investing and Online Wallets
While Bitcoin was designed to make transactions private and secure, cases of people who have lost their coins are not uncommon. Therefore, you should only consider investing Bitcoin via the best Bitcoin sites and wallets.
After Bitcoin was launched in 2009 online, it created a new way of looking at financial transactions. It presented users with a new way to operate anonymously, send funds faster, and invest. If you have some funds to invest, this post has demonstrated that investing it in Bitcoin is a worthy course.