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Exploring The Bitcoin – What Is It and How Do We Use It?

PAX Trading > Crypto News > Exploring The Bitcoin – What Is It and How Do We Use It?

The world today is an exciting place to live in. Technological advancements are pushing the boundaries in every aspect of life. The financial world has not been spared from innovations that threaten to disrupt the very fabric of its functionality. The emergence of cryptocurrencies such as Bitcoin has seen a growing shift of preferences towards their use especially for online trading purposes as opposed to conventional currencies. The growing popularity of how to sell bitcoins is attributable to its increasing value. While many people have heard of Bitcoin, very few actually understand how it works. This article takes a closer look at the cryptocurrency to help you understand what it is and how to use it.

Bitcoin – The Definition

BitCoin is best described as a limited digital ‘currency’ whose existence and functioning is limited solely to the digital space. Unlike other forms of currency, you cannot purchase Bitcoin from a centralized system such as a central bank of any form. The infrastructure responsible for the purchase and distribution of Bitcoins is run by user’s devices equally.

How To Acquire Bitcoins

Now that we have an idea of what they are, the next question is how to get them. The first step in purchasing Bitcoins is the creation of a Bitcoin wallet. These are applications that act as your Bitcoin bank account. Through them you can buy and transact with Bitcoins at will. There exist different types of wallet ‘brands’ and features. You can opt for online, offline or hardware versions of any of the Bitcoin wallet brands such as Blockchain and Xapo. Blockchain is best suited for beginners. Creating an online wallet can be done by following the instructions on the wallet’s registration page. Wallets provide you with an address through which any future Bitcoin transactions shall be made.

The next step is the purchase itself. If you are new to the world of Bitcoin trading, it is advisable that you purchase your Bitcoins from a reputable Bitcoin exchange. Once you find an exchange that you are comfortable with, you then need to register for a purchase, key in your card details and provide your wallet’s address and you are done.

Other alternatives ways of acquiring Bitcoins is through Bitcoin ATMs, brokerage services or through mining.

How to Spend Bitcoins

Purchasing items and paying for services rendered using Bitcoins is becoming easier every day. More companies are embracing the reality that is Bitcoins and accepting them as payment. Purchases are made directly between the buying and the selling party with no third party interference. This lack of interference results in reduced costs and time taken to complete transactions online. Regardless of the location of the trading parties, it takes about one hour to complete a bitcoin transaction. This is attributed to the fact that not approvals from any government or financial institution is required to approve and complete Bitcoin transactions.

Despite the growing levels of tolerance and acceptance of how to sell bitcoins in the financial world, there are still those who are skeptical about using it. People generally trust that which is approved by national and legal institutions. Since Bitcoin is not controlled by any one government across the globe, the legal protection that comes with dealing with regular commercial banks is voided in the use of Bitcoins.

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