How to Transact Using Bitcoin?
Thanks to the never-ending improvements and innovation of the internet, people can now buy products and goods as well as pay for services rendered online. It is because of these online transactions that bitcoins and other cryptocurrencies were created.
So, what are bitcoins and how can you do online transactions using it? In order to help and guide you with this, here are the step by step process of doing online transactions using bitcoins.
Bitcoins: Definition and background
Before we delve into the step by step process of online transactions using bitcoin, let us first know its definition and the background facts that are related to it.
Bitcoins are virtual currencies which are typically used to buy good and products online. It can also be used as payment for services rendered to you by another user. Simply put, it is your virtual money online. However, bear in mind that you can only transact this with companies as well as other online entities that accept bitcoins as a form of payment. Although most of the companies in the United States already use the benefits of bitcoins, there are still some who does not accept this as payment. As a matter of fact, there are some countries, such as China that banned the use of this virtual currency in any online transactions. In addition to this, some companies only accept other cryptocurrencies as their form of payment.
Bitcoins have been in the online trading systems since the year 2009, the year it was created. It is encrypted with unique codes that provide its value in the virtual market. It is also because of these codes that bitcoins are very hard to copy. Aside from that, it is also quite difficult to create fake bitcoins. Because of these security features, the popularity of bitcoins as cryptocurrencies has greatly increased over time.
Step by Step Process of Transaction
If you are just a beginner in this field of online transaction, you are going to need these step by step tips in order to guide you properly with the process.
First, you should acquire your virtual wallet. Just like real money, cryptocurrencies such as bitcoins need a digital wallet where they can be stored. These digital wallets are online applications. Aside from storing the cryptocurrencies, these digital wallets can also be used to send bitcoins to other users and vice versa.
To create your own digital wallet, you have to create your own account in a trading exchange. Once created, you can already transfer and convert real money into the account in order for you to start your online transactions.
The second is for you to acquire bitcoins. You have three options in this part. The first is for you to buy your bitcoins using your real money and store it in your digital wallet. The second is for you to sell products or render service and tell your clients that you accept bitcoins as payment. And last but not the least, you can do mining. Mining is a method where you will make use of a computer that will process numerous transactions for everyone and have bitcoins as your reward. Read more about bitcoin transactions in this article.
Once you have done this, the only thing left to do is for you to find a good online trading platform in order to increase your bitcoins. With its increasing popularity, the number of trading platforms online has also grown. These online trading platforms will help you invest your bitcoins wisely. And what is more interesting with these trading platforms is that you do not need to have a high marketing knowledge or investing strategies since the trading platform will do most of the job for you.