If you’re here, you’ve probably heard of bitcoins, either through the internet, Google ads, mmm or other money-making platforms, or simply from a friend. You might have found yourself more than a little intrigued by this new phenomenon. So, I’m here to tell you everything you need to know about bitcoins and how you can make money with them.
WHAT EXACTLY ARE BITCOINS?
Bitcoin is a type of digital currency. The creators or creators are unknown, but they operate under the alias Satoshi Nakamoto.It is a type of digital currency that is created and stored electronically. Nobody has any control over it.
Bitcoins aren’t printed like dollars or euros; they’re created by people, and increasingly businesses, running computers all over the world and solving mathematical problems with software.It is the first example of a new type of currency known as cryptocurrency.
Bitcoin usage is rapidly increasing in more developed parts of the world, such as Europe and North America. The African bitcoin market is still in its early stages, but it is gaining popularity at a rapid pace.
Bitcoins, like everything else in life, has advantages and disadvantages.
• Easy Mobile Payments: Bitcoins allow for payment via with a simple two step scan-and-pay. No need to sign up, swipe your card, type a PIN, or sign anything. All you need to receive Bitcoin payments is to display the QR code in your Bitcoin wallet app and let your friend scan your mobile, or touch the two phones together (using NFC radio technology).
• Anonymity: Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed, only their wallet IDs. With Bitcoin, there is no credit card number that some malicious actor can collect in order to impersonate you.Always take all necessary precautions to ensure your privacy.
• Security and Control over you Money: Bitcoin transactions are secured by military grade cryptographers. This is to ensure that nobody can charge you money or make payment on your behalf as long as you take the required steps to protect your wallet.
• Fast International Payments: Sending bitcoins across borders is as easy as sending them across the street. There are no banks, no middle men, no extra fees for making an international transfer and no special limitations on the minimum or maximum amount you can send.
• Transparency: Bitcoin stores details of every single transaction that takes place across its network on its version of a ledger called “blockchain”. If you have a publicly used bitcoin address, anyone can tell how many bitcoins are stored in that address. They just won’t be able to tell whose it is.
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• Due to the anonymity the use of bitcoins provide, it allows people to buy or sell anything without easily tracing it back to them. This has led to its popularity among people buying and selling drugs and other illicit activities.
• Governments tend to be concerned about taxation and lack of control over it. In developing countries such as Nigeria, that should not be a concern for a long while.
• The value of bitcoins fluctuates wildly based on supply and demand and it perceived value. In 2009, when bitcoin started being used, 1 bitcoin was sold at $6. Currently as of today, 1 btc (bitcoin) equals $732 which is about N230,000. Fortunately, bitcoin is available in smaller units. The smallest unit of a bitcoin is a Satoshi.
HOW TO START USING BITCOINS
The first thing you want to do is download and install a bitcoin mobile or computer app which will provide you with a bitcoin wallet similar to a Google wallet. The wallet allows you to send and receive bitcoins. The computer app is available here – www.blockchain.info/wallet
The mobile app is available on your phones’ playstore/appstore.
HOW TO MAKE MONEY THROUGH BITCOINS
1. Buying and Selling: This is by far the fastest and easiest way to try and make some money with bitcoin. You earn money by buying at low cost and selling when the price is up. Bitcoin is a volatile currency with the rate rising and falling several times a day. www.nairaex.com is the leading bitcoin exchange for bitcoin and naira.
2. Bitcoin Mining: When you perform mining, your computer adds new bitcoin transactions to the blockchain and searches for new block. You receiver a certain number of bitcoins whenever you discover a new block. Currently, a block contains 25 btc. You can also join groups of people to mine in a pool and then share the reward according to each member contribution. One such mining pool is BitMinter.
3. Earn free Bitcoins by Completing Tasks on Websites: Several websites offer the chance to earn free bitcoins. Some of these are;
• BitVisitor: Allows you to earn bitcoins by watching videos
• CoinWorker: Rewards users with bitcoins or analytical tasks completed.
• Bitfortip: Earn bitcoin by answering forum questions.
Bitcoins provides an alternate method of earning money but before you decide to invest in it, make sure you have a thorough understanding of how it works and always invest extra cash you have around and never your complete income.
You can learn more about bitcoin at www.bitcoin.org