1. What is it?
Bitcoin is a virtual coin. This is the best definition for understanding what Bitcoin is. Think as if it were literally a coin: There is a parity against other currencies, you can carry it in your wallet, transfer funds, buy things and do everything as a conventional currency does.
However, Bitcoin brings some fantastic changes to the modern world, revolutionizing money as it is known today. For example, it is not issued by any central bank and there is no ballast. You can transfer resources to anyone, anywhere, anonymously, without intermediaries and at zero cost or near. Or, who knows, you can turn your Reais into Dollars, without going through any bank, without paying yax on financial transactions and buying at a fair rate.
Its creation was possible thanks to a digital technology called Blockchain. No one knows who created Bitcoin. Some people say it was a japanese named Satoshi Nakamoto. Others say it was a group of programmers and developers. Regardless of who created the cryptocoin, some people say that this is the biggest financial revolution of this age, totally disruptive, with a gigantic social and economic impact worldwide.
Bitcoin is not the only criptocoin, but it is certainly the most popular. There are other crypto-coins that are becoming popular as fast as Bitcoin, such as Ethereum, Dash, Litecoin, Dash, etc. If you want to know the value of the currency and its market value, just go to the following website:
2. How it works?
All transactions are encrypted inside the Blockhain. Blockchain is nothing more than a distributed database structure where all transactions are recorded, occurring in nodes, from person to person, where your data is shared with all participants. To understand it more easily, think of Blockchain as an accounting system that records every move in a book that can never be deleted. Because there is no single database, records are preserved on millions of personal computers, ensuring even greater security against counterfeits.
When a transaction is requested, blockchain triggers a network of acknowledgments to validate this transaction. This can take from a few seconds to a few hours. Each independent user who makes these confirmations is called a miner (making an allusion to the gold miners). When it manages to validate a transaction it is rewarded with a fresh fraction of Bitcoins generated.
If a smarty tries to change the code of the transaction in the blockchain, this will be denied by other validator where this code will be invalidated and the transfer will not occur. It is also not possible to spend the Bitcoins more than once, for the same reason.
Without a wallet, you can not receive or send Bitcoins. As the name itself says, a Wallet is nothing more than the place where you will carry your Bitcoins. Before purchasing Bitcoins, you must purchase, create or download a walet. The process is quite simple.
There are a few different types of wallets:
It can be accessed from anywhere. The creation process is simple and fast. You can upload your Bitcoins and access them from anywhere, provided you are online.
A bit inconvenient in transfer agility, hardware wallet carry their Bitcoins on devices, such as a pen drive, for example. It is difficult to transfer when you load your Bitcoins on a piece of hardware, but on the other hand, security is greater.
Portfolios created from a program that you download on your PC, phone or tablet. It is one of the most recommended ways to keep Bitcoins.
They are wallets with private keys printed on a piece of paper, usually from an off-line computer. Perhaps it is one of the safest ways to save Bitcoin, but perhaps inconvenient for transfer and agility in payment and receipt.
!ATTENTION! Do not forget to write down your ID-wallet and your password and save it very carefully. If you forget your password or lose your wallet number, you will lose your Bitcoins forever!
4. How to get Bitcoins?
There are a few ways to get Bitcoin:
The best way to acquire Bitcoins is to buy it. There are already several exchanges (or brokerage houses) that buy and sell Bitcoin. The process is very much like a common stock brokerage. You must open a registration, transfer the resources and buy the amount you want. Since Bitcoin is fractionated, that is, 1 Bitcoin may be divisible, it is possible to buy parts of a Bitcoin. At each purchase / sale, the broker will charge a fee, which varies for each exchange. This is the fastest and easiest way to get Bitcoins.
The most famous Exchanges are:
– Foxbit (Brazil) – https://foxbit.exchange
– Bitcointoyou (Brazil) – https://www.bitcointoyou.com
– Mercado Bitcoin (Brazil) – https://www.mercadobitcoin.com.br
– NegocieCoins (Brazil) – http://www.negociecoins.com.br
– flowBTC (Brazil) – https://trader.flowbtc.com
– Arena Bitcoin (Brazil) – http://www.arenabitcoin.com.br
– Criptocâmbio (Brazil) – http://criptocambio.com.br
– Paxful (USA) – https://paxful.com
– Coinbase (USA) – https://www.coinbase.com
You can get Bitcoins for free through the faucets. There are many sites specialized in this mode, where you keep watching advertisements, filling captchas, clicking on advertisements for fractions of Bitcoins. That is, you get paid for performing some tasks.
Although it is tempting and looks easy, the mode of faucets may not be worth it. That’s because the ratio of time x gain does not worth it. You have to stay all day visiting websites, clicking on ads, solving captchas to earn miserable cents in Bitcoins.
Generally, these sites pay you in satoshis. The smallest fraction of a Bitcoin is called a satoshi. A Bitcoin has one hundred million satoshis (0.00000001 BTC). Therefore, one can not acquire a considerable amount in Bitcoins in this way. But if you want to try, here are some sites:
You can get Bitcoins if you sell any product and accept Bitcoin as payment. It’s simple, quick and you can start creating your equity in Bitcoin. To do this, just create a wallet and accept Bitcoins as payments.
Another way to get Bitcoin is put advertising on your website. It works in the same way as google adsense, but the difference is that you can get paid in Bitcoin and not in cash. In fact, getting paid by google adsense is not a very easy task. If you ask for the transfer the funds to Brazil, the bank will charge you a very high fee, corroding part of your earnings.
With Bitcoin ads, the transfer is often free! Once you reach a certain limit in Bitcoin, you can request the transfer to your wallet. That simple. We have listed some very good websites that pay you to place the ads on your website. Here at Ynvestimentos have this type of ads, in the sidebar on the left.
- Facility. There are no borders speaking of Bitcoin. You can send resources from anywhere to anyone, anytime, in a short time, with any value and with total security;
- Cost Reduction. Today, international transfers cost real atrocities if done by banks. The reduction of costs is enormous when it comes to Bitcoins. First, because you can buy any currency at its fair price, without the abusive rates of the exchange offices and without paying tax. There are costs transferring Bitcoins, but they are infinitely smaller than the traditional services already on the market;
- Security and Privacy. Blockchain is safe. Your transactions are not recorded in your name, but in your wallet (and consequently in Blockchain). It is not necessary to give your name or any information of yours when transferring resources in Bitcoin. So, there is no way the government confiscate your Bitcoin, nor your ex-wife get half of them after a divorce, much less a thief steal (unless he steals your data and password and transfers to another wallet).
- Volatility. One of the biggest disadvantages of Bitcoin is its price oscillation, making it a risky and variable asset. Its oscillation occurs basically by supply and demand and by its acceptance. The more people and countries accept the criptocurrency, the more it will appreciate;
- Without regulation. This can be both an advantage and a disadvantage, but if for some reason there is some unmapped catastrophe at Blockchain, there is no contingency plan to carry out the transactions;
- Low acceptance. Although this digital currency is getting popular, it is still little known and acceptable. Today it is possible to have a credit card powered and paid with Bitcoin. That is, you can make any payment with a credit card, however, there are few people and establishments that accept Bitcoin.