There are several ways to get your own bitcoins. Bitcoin is digital money that you can use to buy goods and services in the same way cash does.
However it is not backed up by any bank or nation & has no formal organization structure behind.
It is instead entirely managed by a peer to peer (P2P) network of individuals that manage balances and transactions on their own.
Bitcoin runs on people’s computers or phones in form of entries in a public ledger or block chain across the world.
In other wards, they are just entries in a big ledger. Everyone in the network has a copy of the ledger called block chain.
How do you get your own bitcoins
We shall look at the 3 most common ways you can get Bitcoins.
These are;
- You can mine bitcoin using a computer to solve a complex maths
- Alternatively, you can buy Bitcoin with your local money
- Or, receive payment inform of Bitcoin.
Once you buy or received bitcoin, the transaction record goes to the block chain on your computer or mobile phone.
The block chain is a shared public ledger on which the entire Bitcoin network is. This is accessible to all users of bitcoin across the world.
Although all transactions are accessible to all bitcoin users, nobody can know which ‘account number’ is yours unless you tell them.
Besides, Bitcoin wallets keep a secret piece of data, a private key which is used to sign transactions. It provides a mathematical proof that the coins come from the owner of the wallet.
The signature also prevents the transaction from being altered by anybody once it has been issued.
How does bitcoin work
To create bitcoins you must first generate blocks of the network.
Each block is created cryptographically and then added to the block chain for users to earn and keeps the network running.
Bitcoin is just a software that tracks and verifies transactions on a public ledger over a peer to peer network.
- First install bitcoin wallet software on your computer or a mobile phone by downloading it from its website (https://bitcoin.org/en/choose-yourwallet).
- Then create an account with any bitcoin exchange without having to buy bitcoins at that time.
- Sign up for the user account by providing basic information as requested.
- You will then receive an email requesting you to activate your account. Once you activate your account.
- Go ahead and complete a Know Your Customer (KYC) verification procedures; verify your mobile phone number and a copy of your personal ID
- Once you install a bitcoin wallet on your computer or mobile phone, it will generate your first bitcoin address. You can create more whenever you need any.
To use a bitcoin address is as simple as using your e-mail address to send a message.
You can send Bitcoins to other users or receive it from others to your digital wallet. Every transaction you make appears in a public list, the block chain.
This makes it possible to trace the history of Bitcoins or monitor the movement of bitcoin from one peer to another.
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