The popularity of cryptocurrency is growing at an exponential rate. In social networks and the media that you need to buy Bitcoin, the Bitcoin rate will increase several times, and a famous company is introducing the possibility of paying with Bitcoins. Yes, today, BTC occupies top positions in Cryptocurrency ratings. Users actively exchange and buy tokens. But, before replenishing the portfolio with new assets, it is worth understanding how does Bitcoin work and its main advantages and functions.
What is Bitcoin?
Bitcoin is a virtual currency that does not have a single control center. The history of virtual cryptocurrency began in 2008. Satoshi created Bitcoin to avoid the influence of banks on financial transactions. The virtual asset works based on Blockchain. It is a unique system in which all actions and operations are recorded. Each transaction creates a new information block linked to other blocks. Change must have a trace of information to work. Even the slightest correction will lead to the fact that the entire Blockchain will change. It excludes the minor intervention of a third party in a Bitcoin transaction.
Decentralization is not the only advantage of Bitcoin. The benefits of a virtual asset are as follows:
- safety;
- high speed of operations;
- versatility;
- anonymity.
Bitcoin is considered the most secure system. Blocks with information cannot be modified, deleted, or hacked. Therefore, using Bitcoin is relatively safe.
Since no third parties are involved in the transactions, transactions are processed quickly. It allows you to make almost instant financial transfers.
Do not think that Bitcoin is used only to generate income. Virtual assets are used to pay for services and goods. Many world-famous companies are actively implementing payment using cryptocurrencies. It allows you to find clients and partners around the world.
How to get Bitcoin:
The easiest way to get Bitcoin is to use Bitcoin exchange services. You just need to exchange fiat funds for virtual assets. The process is pretty simple. You need:
- go to the exchange website;
- log in;
- enter details;
- choose a currency pair;
- confirm operation.
For buying cryptocurrency, you definitely need a Bitcoin wallet. It is an analog of a classic wallet, only on the Internet. Therefore, choosing a proven vault that reliably protects your savings is worth picking.
It is also important to carefully check all the details. Please note that Bitcoin transactions are non-refundable. That is, you can’t get your money back. Therefore, it is worth spending a few minutes to receive tokens accurately.
After confirming the operation, the funds will be credited to your wallet. Usually, this process takes about half an hour. But due to the Blockchain’s workload, Bitcoins’ accrual may be delayed.
And the second option to get tokens is mining. The process keeps the Bitcoin network running and allows the creation of new tokens. Any transactions are published online, and miners combine these transactions into blocks. In this case, a unique cryptographic calculus is used. If everything is correct, the miner checks the block and transfers it to the Blockchain, which connects it to other blocks. For his work, the specialist receives new tokens.
It is worth noting that Bitcoin mining has a limited number of coins (21 million). They will last until 2140. But keep in mind that the software changes regularly, which complicates the process of creating new assets.
Can virtual currency be converted into cash?
The most common question among investors is whether it is possible to convert Bitcoin into cash. Recently, this procedure has become quite popular. The first reason: is the instability of digital currency. Yes, BTC is still in the lead and is quite expensive. But this does not mean the rate can fall to a catastrophic low. It is difficult to predict precisely what will happen to the cryptocurrency in the future. Therefore, users play it safe and convert virtual assets into dollars or another currency.
The second reason is quite banal: users make money on market volatility. Investors buy cryptocurrencies at a low price and sell when the price increases. The difference is converted into fiat money, thereby receiving income.
And so, let’s figure out how to convert cryptocurrency into cash. There are two exchange options:
- online exchanger;
- ground exchange platforms.
We have already talked about cryptocurrency exchange sites. There are sites where you can exchange Bitcoin for fiat money. You will receive money on your bank card and can cash it out at the terminal or bank branch. For example, you can use the services of WhiteBIT. It is one of the largest European cryptocurrency exchanges, with which you can carry out the necessary operation.
Land-based cryptocurrency exchanges are pretty rare. But still, they are. You need to come to the exchange point and transfer the tokens to the wallet that the manager will indicate to you. After the transaction, the specialist will give you the amount in cash according to the current exchange rate.
Future of Bitcoin:
Bitcoin is a stable cryptocurrency that does not have a central authority. Fast transactions and complete anonymity attract users. But, before investing in virtual assets, it is worth understanding what prospects BTC has and whether it is worth spending money on it.
There is a chance that soon, cryptocurrency transfers will become as simple and affordable as sending money to a bank card. We have already said that more and more companies accept tokens as payment. But it is also worth considering the growing popularity of Blockchain. It is actively used in the transport sector, health protection. Even the banking sector uses technology to store data.
Such interest can lead to an increase in the cryptocurrency rate. Thanks to this, investors will be able to earn impressive amounts.
Some countries are working to create a legal framework for cryptocurrencies. Bitcoin will become a legal payment method in a couple of years. Regulation will reduce the number of fraudulent transactions and minimize money laundering. Plus, the recognition of BTC at the legislative level will increase the level of trust and raise the awareness of people in the field of cryptocurrencies and technologies.
Bitcoin is a virtual asset that lies at the beginning of the path to cryptocurrency adoption. Investors around the world conduct token exchange operations. Despite the instability of the exchange rate, users are constantly interested in exchanging BTC. The virtual asset has considerable potential to influence the global economy and the market positively.
