A Few Things To Know Before Using Bitcoin
If you want to use Bitcoin then before using it you must know a few things. It will help you in using this currency more
confidently and safely.
In this write-up you will know Bitcoin and its usage more closely.
The information provided here under will help you in
taking the transactions through Bitcoin more seriously.
What is Bitcoin?
Before using Bitcoin, the first thing you should know it what Bitcoin actually is.
Bitcoin is a digital currency or cryptocurrency that can allow you to make financial transactions in a unique manner then
you used to do until now.
-It is not controlled by a central authority or an administrator and for that reason it is also known as a decentralized currency.
*It can be sent digitally from one person to the other through a peer-to-peer network using Blockchain technology without
using any mediator or agent.
_ It should be used as carefully as you use other forms of currencies.
Origin of Bitcoin
Though nothing can be said about the exact origin of its but it is assumed that was developed by Satoshi Nakamoto in 2008.
A paper containing information about the working of its was published by Satoshi in this year.
Te mining and trading of Bitcoins started only one year after the publication of this paper.
Reasons of increasing popularity of Bitcoin
People got attracted to this new digital currency due to the lack of any bank or middleman as well as their heavy fees.
You are not required to use your name and other personal information to do a financial transaction with Bitcoins as only
ID of your digital wallet will be used to accomplish an online transaction.
Volatility of Bitcoin price
The price of Bitcoin is very volatile as nothing can be predicted about a decrease or increase in its price in a short period.
It is because the economy of this currency is still budding and being novel currency it may not be as liquid as other currencies
in the financial markets.
So, it is not recommended that you keep your savings in the form of its . In this way,
Bitcoin is a risky asset as you can lose your savings due the volatility in its market price.
Still, Bitcoin is rarely accepted in open market as a means of financial transactions.
Is Bitcoin anonymous?
No, its not anonymous as you will have to protect the privacy of your Bitcoins.
All the transactions through its are permanently stored on the public network so that anyone can see the transaction as
well as the balance in its wallet.
But the identity of the user is kept anonymous unless it is revealed by him during the transaction.
For this reason it is advised to use the its address only once in any transaction to protect your privacy.
Security of unconfirmed transactions
It takes some time say up to 60-90 minutes to complete and confirm a its transaction.
It can take more time to confirm a transaction if it is an unusual transaction or a very less fee is paid for it.
however, unless the transaction is confirmed it is not safe.
So you should wait unless the transaction is confirmed.
Written By : YOUSSEF J A ALMEER