Some things you need to know
Bitcoin lets you exchange money in a different way than with usual banks. If you are about to know/explore Bitcoin, There are a few things you should know. As such, you should take time to inform yourself before using Bitcoin for any serious transaction. Bitcoin should be treated with the same care as your regular wallet, or even more in some cases!.
It is your responsibility to ensure that you adhere to tax and other legal or regulatory mandates issued by your government and/or local municipalities.Bitcoin is not an official currency. That said, most jurisdictions still require you to pay income, sales, payroll, and capital gains taxes on anything that has value, including bitcoins.
During these growing pains, you might encounter increased fees, slower confirmations, or even more severe issues. Each improvement makes Bitcoin more appealing but also reveals new challenges as Bitcoin adoption grows. Be prepared for problems and consult a technical expert before making any major investments, but keep in mind that nobody can predict Bitcoin's future. Bitcoin is an experimental new currency that is in active development.
All Bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address. Always remember that it is your responsibility to adopt good/fair practices in order to protect your privacy.
How to buy Bitcoin
There are several ways you can buy Bitcoin.
Bitcoin Exchange page lists many different businesses that can help you buy Bitcoin using your bank account.
Local Bitcoins lets you search and browse through various sellers of Bitcoin in your area. Sellers have reviews and feedback scores to help you choose..
Coin ATM Radar has an interactive map to help you find the closest Bitcoin ATM near you.However, the identity of the user behind an address remains unknown until information is revealed during a purchase or in other circumstances. This is one reason why Bitcoin addresses should only be used once. Bitcoin ATMs work like a regular ATM, except they allow you to deposit and withdrawal money so that you can buy and sell Bitcoin. Some effort is required to protect your privacy with Bitcoin.Coin ATM Radar has an interactive map to help you find the closest Bitcoin ATM near you.
How does Bitcoin work?
This is a question that often causes confusion. Here's a quick explanation!
You can disclose your addresses to your friends so that they can pay you or vice versa. Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. As a new user, you can get started with Bitcoin without understanding the technical details. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.
The blockchain is a shared public ledger on which the entire Bitcoin network relies. The integrity and the chronological order of the blockchain are enforced with cryptography. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. All confirmed transactions are included in the blockchain.
Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining.A transaction is a transfer of value between Bitcoin wallets that gets included in the blockchain. The signature also prevents the transaction from being altered by anybody once it has been issued.
To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the blockchain. This way, no individuals can control what is included in the blockchain or replace parts of the blockchain to roll back their own spends. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the blockchain. It enforces a chronological order in the blockchain, protects the neutrality of the network, and allows different computers to agree on the state of the system.
This is only a very short and concise summary of the system. If you want to get into the details, you can read the original paper that describes the system's design, read the developer documentation, and explore the Bitcoin wiki.
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