Everything You Need to Know About Bitcoin

With a constant up and down struggle, now finally Bitcoin is gaining mainstream credibility.

Tesla (TSLA) announced that it will soon accept bitcoin as payment for its vehicles, and disclosed it had purchased $1.5 billion in the cryptocurrency as part of its cash holdings. At the same time, Uber and Mastercard (MA) also revealed their plan to start accepting bitcoin. And BNY Mellon -- the oldest US bank, which has a history as old as Alexander Hamilton's founding of Bank of New York in 1784, announced it has formed a "digital assets" unit.

Elon Musk Views about Bitcoin

Elon Musk, CEO of Tesla and SpaceX, has been becoming popular for his tweets in support for digital assets and resulting in their value soaring. He is the world's richest man and is a very big bitcoin booster.

"I think [bitcoin] is on the verge of getting broad acceptance by conventional finance people," Musk said in a recent interview on the audio-only social app Clubhouse that Bitcoin could get accepted by the conventional finance community.

This is quite enough to understand the widespread popularity of this coin. So if you have been confused about investing in bitcoin thinking it might just be a financial fad, now's the time to start paying attention. Here we are to help you understand the system of  Bitcoin Champion in detail.

What is bitcoin?

Bitcoin was created in 2009 by the pseudonym Satoshi Nakamoto, an unknown person. No brokers or intermediaries are involved in its transactions making them entirely anonymous.

Bitcoins do not exist physically, so it’s impossible to use them as a local currency. It’s a digital currency. And it's decentralized, absolutely free from the control of any bank or government.
close dialog

A lot of people also see bitcoin as a good investment. And that's not a bad idea seeing its rising price touching the value of $49,000 recently.

Where can I buy bitcoin?

Buying Bitcoin

Purchasing Bitcoin using fiat currencies, such as USD, and also with other cryptocurrencies is not difficult. The procedure is quite simple in all the methods of buying bitcoins.

From the Bitcoin.com Wallet

If you choose to buy Bitcoin from Bitcoins wallet, you will find it easy. You will just need to open your wallet app on your device and tap the option showing the buying option. After this, you will find instructions to ask you to deposit coins to your preferred wallet. Identity verification is the main requirement here after which your purchase will proceed

From peer-to-peer trading platform (BCH only)

Local Bitcoins are the best option to buy bitcoins if you prefer to do so through a peer-to-peer platform. Here the users will be required to create an account and search for an existing seller looking to sell Bitcoin Cash (BCH) or create a new buy order themselves.

From a cryptocurrency exchange

Buying Bitcoins from a cryptocurrency exchange is also a good option. You can find an immense number of exchanges offering these services. The procedure is simple and you just need to create an account at one of these exchanges. After this, you will need to follow the instructions directed by the exchange.

Where do I keep my bitcoin?

You can store Bitcoin in a digital wallet, which is either on the cloud or your computer. It works just like a virtual bank account. But unlike bank accounts, stored bitcoin isn't insured by the FDIC.

Bitcoin wallet types

We can classify all the bitcoin wallets into two categories - hot and cold wallets.

Online (“hot”) wallets

These are the wallets where the private key is stored online or on devices connected to the internet. You can store them on exchanges or other websites, computers, tablets, or smartphones.

Offline (“cold”) wallets

These are the wallets where the private key is stored on paper or offline hardware like a password-protected USB. But do remember that these online, or “hot,” wallets are less secure having a constant threat of hacking.  These are vulnerable as you must reveal your private key to a third party.
You should use both types of wallets. Use hot wallets to hold small amounts of bitcoin for daily transactions, and cold, or offline, wallets for storing more substantial sums.

Is bitcoin safe?

It is a fact not hidden to anybody that the world of cryptocurrency is highly volatile, and therefore very risky. You can see that in January bitcoin's value rose to $42,000, fell to $30,000, then rose again to $40,000 -- all in the course of one week. And there some dangers which are part and parcel of every digital currency: A hacked server, a deleted file, or a lost password could mean the funds are lost forever.