How to buy bitcoins
Hassle free and transparent: Bit coins
What is bit coin?
Bit coins can be described as a sort of virtual currency system. It was introduced as recently as in 2009. Is a sort of software which facilitates online payments and can be used further for other transactions or exchange? This doesn’t mean that you can do online shopping with bitcoins, but all kinds of electronic transfers and transactions can be done by bitcoins. It is not considered as a legal system of currency and is also addressed as cryptocurrency. But Bitcoin is the largest cryptocurrency which is also decentralized.
The difference between Bitcoins with capital ‘B’ and bitcoins with a small ‘b’ is that the former refers to the entire system, and the latter is the actual currency.
How does Bitcoins work?
Once you have bitcoins in your possession you can use them to give to your friends, some merchants etc. the purchases made with bitcoins, the accounts of who possesses how many bitocins is all stored digitally. It is like an audit in itself, where there is a record of each and every bitcoin transaction. This system of online storing is called as ‘blockchain’. There are people who keep checking the blockchain, we can call them the auditors for bitcoin transactions. Their main job is to facilitate the bitcoin transactions safely and confirm them. These people are technically called as ‘miners’ and the merchants who hire them reward them for the services in terms of minted bitcoins.
Many people tend to buy bitcoins similarly to the way one would invest in forex. They buy it at a lesser price and sell them when then prices are higher. It is an easy way to make money. Bitcoin is being slowly accepted as a new form of making other payments too. Certain big companies have already approved this kind of transaction. Currently there are worth $1.5 billion worth of bitcoins in circulation all over the world.
Pricing of bitcoins:
Their prices are decided in relation to other currencies, like usually currency rates are decided. They keep fluctuating. The price is not fixed as such, so there has to take place a bargain between the buyer and seller in some sense. This is done against some set standard rates. You
Why choose Bitcoins?
You might be thinking that if real currency can do the same work as bitcoins does, then why use it? the answer to this question is that with bitocins, you can do any amount of transaction. A bigger transaction normally takes quite a while when you transfer the money, and there is always a problem of the cash being fake in case you gave some hard cash. But with bitcoins, the transactions take place within a matter of minutes and you have to stop worrying about all the other matters. The entire deal is totally hassle-free.
The second best thing is that for sellers, accepting through internet banking or credit cards involves paying of certain fees. But if the transaction is done with bitcoins, the fees are waived off. So from a seller’s perspective, it is far easier for him to accept bitcoins.
This is slowly gaining a lot of popularity with both the buyers and sellers, thanks to the transparent and fair system. LocalBitcoins may soon become an acceptable payment method everywhere.