How to Catch a Falling Bit Coin: A Beginners Guide!

How to Catch a Falling Bit Coin: A Beginners Guide!
Cryptocurrencies have been gaining in popularity over the past few years, with Bitcoin leading the pack. But what exactly is Bitcoin? And how can you get your hands on some? This beginner’s guide will tell you everything you need to know about catching a falling Bitcoin! Photo by Andrea Piacquadio on Pexels What is Bitcoin?
What is cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not...
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Cryptocurrencies have been gaining in popularity over the past few years, with Bitcoin leading the pack. But what exactly is Bitcoin? And how can you get your hands on some? This beginner’s guide will tell you everything you need to know about catching a falling Bitcoin! Photo by Andrea Piacquadio on Pexels What is Bitcoin?
What is cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Bitcoin, the first and most well-known cryptocurrency, was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Bitcoin is often referred to as a digital gold because of its limited supply and decentralized nature. Just like gold, Bitcoin cannot be increased once it has reached its total supply. This central characteristic of Bitcoin renders it similar to precious metals like gold—since no one can print more Bitcoin—making it a deflationary asset unlike fiat currencies which can be printed endlessly by governments.
While there are currently around 18 million bitcoins in circulation, only 21 million will ever exist making it a scarce asset with great potential for appreciation. The limited supply combined with increasing demand from investors and users alike has caused the price of Bitcoin to soar in recent years reaching highs of over $17000 per coin in December 2017 before correcting to around $8000 in early 2018.
What is blockchain technology?
A blockchain is a digital ledger of all cryptocurrency transactions. It constantly grows as “completed” blocks are added to it with each new transaction verified by consensus of all users on the network (hence the term “blockchain”). Blocks are chained together chronologically forming an immutable record (hence the term “ledger”). Each block contains a cryptographic hash function linking it to the previous block along with transaction data.”
This structure ensures that no single entity can control or tamper with the data since changing even one block would require tampering with all subsequent blocks which would be immediately detected by others on the network resulting in rejection of the false block and protection of the ledger integrity. The use of multiple chains (sidechains) further increases security since even if one chain were compromised another would remain unaffected allowing for near-instantaneous recovery from attacks.”
How to buy Bitcoin.
Setting up a Bitcoin wallet.
In order to buy Bitcoin, you first need to set up a Bitcoin wallet. There are two main types of wallets: hardware and software.
Hardware wallets are physical devices that store your private keys offline. They are considered to be the most secure type of wallet, as they are not susceptible to hacks. However, they can be lost or stolen, so it is important to keep them in a safe place.
Software wallets are programs that store your private keys on your computer or phone. They are less secure than hardware wallets, but they are much easier to use.
Once you have chosen a wallet, you will need to set it up. This process will vary depending on the type of wallet you choose, but it generally involves creating an account and then choosing a password.
Buying Bitcoin.
Now that you have...