by skysnap » 13 Feb 2017, 07:23 What is a Bitcoin?
It's a cryptocurrency that is used both online and offline. Just like gold, it can be mined upto certain extent and after that the value of bitcoin will go up and down depends on demand and supply. Bitcoins are mined through mining software. However mining bitcoins and strategies to do that are not part of the discussion for this article.
Wallet
Before you even use bitcoin in any way, you need to generate wallet. The wallet is provided by the bitcoin hosting companies such as coinbase, greenspace, coinapult. There are software apps that can store your bitcoin or the cloud services offering the same service. My suggestion is to sign up with service like coinbase to store your bitcoins. This is an easy way to get started with bitcoin.
Which wallet is good for me?
If you are completely new to bitcoin, I suggest you to use web based bitcoin wallet. The reason being you are used to online payment gateway systems and using cloud based service is easier to understand. Apart from web based wallet storage, you can have bitcoins in Android or iOS app. You can also have bitcoin on hardware storage. Bitcoin is also available on Linux, Windows and Mac desktop.
For the sake of simplicity, stick with web based bitcoin wallet website.
1. Go to coinbase.
2. Register for an account.
3. Generate bitcoin address from Dashboard > Bitcoin Address > New Address.
4. Save this address in some notepad or text file.
You get the number such as the following:
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15wi3qXou4ZMk2d5frLx2mxTRRVF9ufLqZ
Once you generate the wallet address, you can use this address in any online website that pays you through bitcoin. All you have to do is give them this number. That's all you have to do. The payments are anonymous. And nowhere, your name, nationality, address etc are being leaked. Only thing that is being tracked here is the spending of bitcoin from one address to another.
This looks complicated, is there any other way?
Generating web based wallet and using that address for accepting payments is an easy way. It can't get any easier than this. I suggest you to upgrade your comfort zone and adapt to new payment system. As this payment option has better chances of improving you financially, you have to adjust with the learning curve.
Where to use Bitcoin?
Bitcoin can be used to buy gift cards of popular brands around the world. For example you can buy Amazon, Gap, Ebay and few other brands gift cards. There are companies such as gyft who allows you to buy gift card for the bitcoins. Most of the popular online sites provide US based gift cards. However there are some of the websites that provide the services for International users. You may want to check egifter.
Bitcoin to local currency?
Yes, bitcoin is possible to be exchanged for your local currency. Considering it has higher conversion rate for the USD. You should definitely keep earning the bitcoin and withdraw when you see it fit. For example, local currency INR has price of 60 against 1 USD. If the 1 bitcoin has 1000 USD conversion then for local currency it'll give 60K INR. This goes to show you that bitcoin is very important crypto currency that one can use for making good amount of money online. It's just that it's not going to be easy like any other currency.
Take a look at this website. It offers local exchangers that you can use for exchanging your bitcoins for local currency. Do note that your transactions here will be taxed by your respective banks. Just like any other payments that happen through your local banks. When you exchange with any online exchanger, make sure you have seen their track record of exchange. Also you can see their 100% or below record and reviews. If the review makes the exchanger go below 95%, then avoid such exchanger.
Bitcoin for buying stuff online?
Not a lot of countries have the option of bitcoin in their popular e-commerce websites. However there are many small shops around the world that accept bitcoin. Most of the bitcoin based online shops are located in US, Canada, India, Australia, UK, Brasil, Germany and many more. You may have to find out if there are any such websites that offer shopping for bitcoin services.
Do people seriously use bitcoin?
Yes. Bitcoin is now being accepted in many online web hosting, training, entertainment and food websites. Many offline stores in Germany and Brasil are also accepting bitcoin for their business. So this is serious cryptocurrency. As we are in 2017, the penetration of internet has helped many people adapt to the power of cryptocurrency. Not just bitcoin but other cryptocurrencies are also in demand lately.
I hope I have answered most of your questions. This was simple introduction to bitcoin and how to get your way around this new payment option. Feel free to ask your questions and I'll happily answer to them in replies to this article.
