Cryptocurrency is not a mystery term anymore. Most of you have a basic awareness of these digital currencies and their functions. However, there is still a huge section of the global population who have a vague idea about cryptocurrencies and the ways of trading them.
With the profound growth of cryptocurrency adoption all over the world, bitcoin-buyer.io is now an interesting platform for trading Bitcoins. However, before starting the trading, you need to clarify all your doubts for better decision-making and earning profit.
This section of the article highlights some frequently asked questions concerning the digital currency known as Bitcoin. Read on to know more in detail!
Question #1: What is Bitcoin and why is it so popular?
Answer- Bitcoin was introduced in 2009, and since then, it has been the most popular cryptocurrency in history. Satoshi Nakamoto was the first one to introduce this digital asset in 2009, which also introduced blockchain technology to the world. It is the perfect combination of global transactions into a single system.
- People with bank accounts can make transactions through applications.
- No intermediary body can control the transactions.
- Unlike the fiat currencies, you cannot convert Bitcoin into some other form. It will be Bitcoin, that you can either send to someone, sell, or get some service and product in exchange for the digital asset.
Right now, Bitcoins are a profitable scope of investment.
Question #2: What is blockchain technology?
Answer- Cryptocurrency is the ideal representation of a successful blockchain technology implementation. The technology is primarily a transparent, trusted, secured, and publicly accessible ledger.
- The technology supports the secure transfer of owned units of value using proof of work consensus and methods of public-key encryption.
- It is a decentralized consensus helping with the maintenance of the network.
- It excludes the need for intermediaries like banks, corporations, or Government authorities.
The continuous expansion of blockchain technology is increasing the level of decentralization. Thus, the security level of the blockchain is also increasing with expanding focus on other industries like gaming, financial services, and healthcare.
Question #3: What are public keys and private keys?
Answer- Public-key cryptography is the primary foundation of Bitcoins as well as all the other notable digital assets. According to the system of cryptography, there are two types of keys:
- The public key is responsible for the identification of the crypto and it is publicly visible.
- Private keys aid in encryption and authentication, implying secrecy.
These keys are the basic elements that work for cryptocurrencies.
Question #4: What is the control process of the Bitcoin network?
Answer- The Bitcoin network is not the property of some particular person. Can someone own the technology behind emails? No. Similarly, Bitcoin users are the actual controllers of the network all around the world. While the developers can improve the software, they can’t forcefully implement any change to the Bitcoin protocol as the users have the freedom to select the software and versions they want to use.
Compatible software is what you need to trade Bitcoins. Bitcoins will work appropriately when the users have the correct consensus.
Question #5: How to acquire Bitcoins?
Answer- There are a few simple ways of acquiring the Bitcoins:
- Purchase Bitcoins on some Bitcoin exchange platform.
- As payments for services or goods.
- Exchange with someone.
- Generate through competitive mining/
Some individuals may wish to sell Bitcoins in the exchange for a PayPal or credit card payment. But the majority of exchanges would allow funding through these payment methods. It is because when you buy Bitcoins using PayPal., there is a reversal of half of the transaction. This is called a chargeback.
Question #6: Can you choose your fees?
Answer- There is no fee for receiving Bitcoins. Some wallets allow the control of the fee that you pay while spending. Higher fees mostly encourage quicker confirmation of the transactions. But fees are not related to the amount that you transfer. Therefore, you can send 1,00,000 Bitcoins for the same fee as for sending 1 Bitcoin.
Bitcoins can be the most lucrative option for transactions. So if you are planning to gain money through investing in Bitcoins, it can be a great idea. Don’t worry about the percent downward graph of Bitcoins as the above knowledge will help you to understand that the technology is here to stay.