Bitcoin is the newest form of currency and you may have jumped on the bandwagon and installed your own Bitcoin wallet app. Now that you have done so, it is time to find out how this currency can actually help you. You have to know, therefore, how it is both similar to the Euro, Peso, or Dollar, but at the same time wholly different. One of the biggest differences is that there is no company or government controlling the currency.
What Is Bitcoin?
Very simply put, it is a type of peer to peer cryptocurrency that is completely decentralized. Anyone who has a Bitcoin wallet app is linked to the system and there is no central bank that has to manage the way these apps communicate with each other. Rather, transactions are made in an instant, for free. And nobody can manipulate it either.
How to Use a Bitcoin Wallet App to Purchase Bitcoin
Having your app installed is a good first step, but you do need to know what to do with the app to make purchases. You may have heard the rumor that doing so is incredibly complex, but that isn’t actually true. What is complex is Bitcoin mining, which means you have to solve increasingly complicated and difficult mathematical equations. If you skip that part, then having a Bitcoin account is easier than having a bank account!
Once you install your wallet, you should have a play about with it to see what everything does. Getting a wallet only requires you to register with a bitcoin exchange, of which there are many. In fact, a lot of people have wallets with multiple exchanges, which is perfectly legal. In fact, it is a good idea to do this as it will allow you to keep your bitcoins safe.
You are likely to be able to purchase bitcoins directly from that exchange as well. Lots of websites allow for bitcoin purchases, but you do need to be careful to not pay an inflated price. eBay, for instance, is definitely not a good source for bitcoin purchases.
You could also approach a private broker and purchase bitcoin directly from them. You will have to set up a mutually agreeable exchange in order to get your bitcoins. What is both an advantage and a drawback here, is that the entire exchange is 100% anonymous. Your broker won’t know who you are but, by definition, your broker could be just about anybody as well. The only thing you will know about them is their wallet number. To make an exchange, funds will have to be transferred and you always run the risk of getting ripped off, with the exchange suddenly disappearing and you losing your bitcoin. Again, this is why you should consider having multiple wallet apps around.
Last but not least, there are now even bitcoin ATM machines. This really proves just how quickly this type of currency has become accepted all over the world.