Since 2008 the Bitcoin price has risen enormously, but what is Bitcoin? Bitcoin is the very first decentralised digital currency, also called cryptocurrency. On this page we describe the operation and benefits of the Bitcoin cryptocurrency and the Bitcoin protocol. You can also buy and sell bitcoins safely on this page.
Do you want an introduction to what cryptocurrency is and what it is for? Then read: introduction to cryptocurrency.
To buy Bitcoin, we’re going to use an exchange called CEX.io. Here you will be taken to the purchase page, where you can buy your Bitcoin Easily.
When you have chosen the amount of Bitcoin you want to purchase (A minimum of 0.05 BTC is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed the BTC will be deposited into your account. Congratulations you have bought your first Bitcoin!
What is Bitcoin (BTC)?
Bitcoin is a virtual currency with which payments can be made, also known as cryptocurrency. This digital currency makes it possible to carry out transactions among themselves without the intervention of a third party such as a bank or PayPal. The digital currency is known to change value regularly: the bitcoin exchange rate usually fluctuates by a few percent on a daily basis.
Bitcoin uses a decentralised payment network in the form of a general ledger. This general ledger is called the blockchain. Anyone with a digital wallet, also known as a BTC wallet, can carry out transactions which are recorded on the blockchain. Transactions are added to the blockchain in groups, which we also call blocks. Such a general ledger consists in principle of a chain of blocks with transactions, hence the name block-chain.
The great thing about this technology is that the bitcoin blockchain is not a particular file that is centrally stored at a company: instead, anyone who wants to can install a full-fledged bitcoin wallet, which then keeps a copy of the blockchain. This information can be constantly updated as it is only added in small blocks of 1MB. In this way, every device in the network is always informed of all transactions that have taken place.
You should not only buy bitcoins because you have seen that the Bitcoin price continues to rise: although the price increase of bitcoins is of course very interesting and attractive to hitchhike on, we think it is important that you up to a certain level actually understand what the technology does and are confident that more people and companies will (want to) use it.
Watch the video below for a clear Bitcoin explanation:
The Bitcoin cryptographic currency, abbreviated to BTC, can be used as a means of payment for a large (and still growing) number of products and/or services. Like traditional currencies such as the Euro, BTC should be kept somewhere. For this you need a (digital) wallet, also called a Bitcoin wallet. From this BTC wallet, often in the form of a (mobile) application or website, you can make payments to other persons or organisations with a Bitcoin wallet. Identification is done on the basis of Bitcoin address.
A transaction in cryptovaluta is very simple, fast and cheap. For example, if you now transfer 1 BTC to someone in Australia, they will receive it within minutes. Because the decentralised Bitcoin network (the blockchain) confirms the transaction instead of a central authority such as a bank, there are no long waiting times or high transaction costs. In addition, the security of the transaction is guaranteed by the blockchain.
Also read the Bitcoin white paper: “Bitcoin: A Peer-to-Peer Electronic Cash System” (bitcoin.org).
Since the advent of the digital currency in 2009, its value has increased enormously. The Bitcoin exchange rate is, as with all other currencies, determined by supply and demand. As demand for Bitcoins and confidence in technology increases, so does value.
The value of the Bitcoin has been rising for years, making the cryptomint an excellent investment. Please note that the price fluctuates enormously, as a result of which investing in Bitcoin involves risks.
Unlike traditional means of payment, Bitcoin currency has no inflation: a maximum of 21,000,000 (21 million) full BTC units are available. Payments do not have to be made in whole units. Each BTC can be divided into 100,000,000 (100 million) units called Satoshi, so that the total available quantity of BTC units can be up to 2,100,000,000,000,000 (2.1 billion billions or 2,100 billion Satoshi).
Getting started with the Bitcoin cryptocurrency? Before you can buy or sell Bitcoins, you first need a digital wallet to store your Bitcoins. What the best Bitcoin wallet is for you depends on the situation. That is why we have compiled a selection of reliable BTC wallets for you:
Ledger Nano S Hardware Bitcoin Wallet
Cryptocurrency storing in an app the mobile phone or in an online wallet or exchange carries the risk that the cryptocoins will be lost or stolen.
With Ledger’s physical Nano S Bitcoin wallet, you can be sure that your cryptocurrencies are kept in a safe place. The Nano S is a cryptocurrency wallet that can be used to store Bitcoin, Ethereum and Altcoins such as Dogecoin, Stratis, Ripple and Dash. The wallet can connect to computers via USB and contains a secure OLED display to double-check and confirm transactions.
TREZOR is a user-friendly and highly reliable hardware wallet that allows several cryptocurrencies to be stored safely.
The key to be used to sign a cryptocurrency transaction is stored securely in the TREZOR wallet. Digital currencies such as Bitcoin, Ethereum, DASH and Zcash cannot therefore be stolen, even if your computer is infected with a virus.
The TREZOR wallet is available in white, black and grey and can be purchased from Amazon.