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- A bank in your pocket: You can store your Bitcoin in a digital wallet like an app.
-Secure: Bitcoin is protected by math or cryptography and it's very safe because there are no middlemen.
For example, with bitcoin, it is possible to send $100 to a friend in another country in minutes with no bank fees. That makes it easier for bank related transactions.
How Bitcoin Works
1. Blockchain: Bitcoin uses the blockchain to record its transactions. Blockchain is a digital ledger. I want you to picture it as a public notebook that records every Bitcoin transaction. And once it is written, no one can erase or change it.
2. Mining: Mining is bitcoin’s security guard. It's a network of computers that solve math puzzles to confirm the transactions. So, the miners earn new Bitcoin as a reward for successfully solving the puzzle.
3. Wallets: It's your digital piggy bank where you store bitcoin. Examples are apps like Coinbase or Ledger
Why Bitcoin Matters
- Freedom: Bitcoin gives you enough freedom over your money. No government or bank can freeze your Bitcoin.
- Low Fees: Bitcoin transactions carry less charges or low fees. So, you can send $1 million for a few dollars but if you are to send the same amount through the banks, they will charge you hundreds of dollars.
- Scarcity: Only 21 million Bitcoin exists and that is the advantage it has over the fiat currency. Because of this, it's likened to a digital gold.
- Privacy: To do transactions in bitcoin, you don't need to share your personal info.
How to Buy Bitcoin (4 Steps)
Choose an App: - The first thing to do is choose the wallet to store your Bitcoin. Use apps like Coinbase or Binance.
Verify Your Account: - in few minutes, you can verify your account by uploading your ID.
Deposit Money: - The next step is to deposit money via bank transfer, credit card, or PayPal.
Buy Bitcoin: - Start buying bitcoin and you can start with just $10 or any amount depending on your budget.
3 Mistakes to Avoid
Not Securing Your Wallet: It is mandatory to secure your wallet using 2FA. Investing All Savings: Bitcoin is a very volatile digital assets. That means, you should only risk what you can afford to lose. Ignoring Scams: Never share your wallet’s private keys with anyone.