6 things you must know about Bitcoin before making any Bitcoin transaction, especially #3!

Bitcoin is a decentralized virtual currency introduced about 5 years ago as provided by Japanese Satoshi Nakamoto. It is turning out to become the world number one crypto-currency that uses peer-to-peer technology to operate without any central authority (government) or bank.

For you to get the best out of any Bitcoin transaction, I will be presenting to you the 6 essential things you should endeavor to know at all cost before venturing into any Bitcoin transaction.

Without any delay, here are the 6 things every intended Bitcoin user should know.

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1.      Bitcoins are stored in wallets – It is important to know that your bitcoins are stored in your wallet, and with your wallet, you can generate with it countless numbers of Bitcoin addresses that is required for the bitcoin peer-to-peer transaction. For security purpose, it is advised to use new and different address each time you make any bitcoin transaction.

2.      Blockchain is the world largest Bitcoin provider that offers free and secured web-based wallets.

3.      Bitcoin is an independent unit of currency on its own – I have seen on countless occasion people mistaking and mixing up bitcoin currency with the USD just because most of the e-payment solutions providers out there like PayPal, Payza, Perfect money etc. are often dominated in USD, and the always think that Bitcoin too is dominated in USD.

For instance, when you see bitcoin exchangers offering or displaying Bitcoin exchange rate on their sites in this manner; Local currency amount/USD. It is not the same thing or in any way means Local currency amount/Bitcoin. What that implies for bitcoin exchange is that the local currency amount specified goes for 1 USD worth of Bitcoin, which is equivalent to 0.0017Bitcoin, since 1 Bitcoin currently exchange for about 587USD.

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4.      Bitcoin can be obtained basically in 3 different ways;

       

      i.      By mining – This is the reward gotten from the use of computer power or knowledge in recording payment into public ledger.

     

     ii.      Buy buying or exchange of fiat currency – You can simply buy Bitcoin from world or local recognized exchangers, or this can be equivalent to exchange with fiat money. For example ANX and Safello are some of the world known and secure dealers of bitcoin.

   

     iii.      Bitcoin can be obtained by exchange of products and services.

5.      The entire Bitcoin Block chain (Network) will gulp about 4GB of memory space if installed on any of your device – The Bitcoin installation app is available for different platforms, ranging from your mobile device to desktop. And since it is a must that before carrying out any Bitcoin transaction from the installed Bitcoin app on any of your device, you need to download the entire Bitcoin block chain network into the app. This entire Bitcoin block chain is about a whooping 4GB in memory size.

But thanks to Blockchain that offer solely web-based wallet and transactions with bitcoin that boycott the 4GB download.

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6.      Everybody in the Bitcoin block chain network owns and control the Bitcoin – Unlike fiat money, Bitcoin is decentralized from any major known authority. You and others directly making use of bitcoins owns the bitcoin and the power to control it, that is why any bitcoin transaction made today can be seen by every other person in the bitcoin block chain network.

Finally, what I have enumerated above are the 6 basic and most valuable things you must know about bitcoin and bitcoin transactions in order to get the best out of any bitcoin transaction you make today.

If you are happy with this piece, kindly use the comment box below to express yourself, or share your bitcoin experience if you have any.