It has been many years; bitcoin is successfully circulated and traded for online investment and trading. Bitcoin is basically an electronic currency which is generated and circulated uniquely. It is one of the most popular digital currency which is verified and recorded using complex mathematical problems.
Different ways of Acquiring Bitcoins
There are many ways of acquiring bitcoin. Three most popular ways of acquiring bitcoins are discussed below-
1) Buy or exchange
You can get the bitcoins through buying or exchanging. There are different sites which are known as bitcoin exchanges. From there you can buy or sell bitcoin anytime or have them set up and fund your retirement account( a crypto currency IRA) .
Just like sending cash using different devices, you can also send your bitcoin using your mobile phone or computers. The procedure of transferring bitcoin is as easier as sending an email.
With the mining process, you can produce bitcoin. The procedure is a little bit complex for the beginners. Those who take over the whole process of mining is called the miners. When someone does a transaction on the network, the transaction is verified and recorded. The job of the miners is competitive. They get the reward as bitcoin on each verified transaction. The miners have to compete on the network for mining the bitcoin. They have to solve different difficult mathematical problems to mine the bitcoin taking the support of their computer hardware. But for that, they have to invest a lot of money on computer hardware.
Bitcoins are generally stored in a wallet. These wallets are virtual and prevail in a computer of the users or in the cloud. There are basically two types of wallet. These are-
1) Cloud wallet
The bitcoins can be stored virtually on a cloud. To store bitcoins in a digital way, one doesn’t need to install any kind of software on their computer. They also don’t have to sync coins on their computers. However, there are some risks associated with storing in the cloud. The cloud storage may be hacked anytime, and the users may lose their bitcoin as well.
2) Computer wallet
Storing the wallet on the computer, one can secure their bitcoins from the whole network. However, one also needs to be careful storing the bitcoins on the computer as these can be lost for the formatting or virus attack to the computer.
The Bitcoin addresses are usually located on the hard disk of your computer from which you can also make a backup copy of your Bitcoin wallet. So be careful that you do not lose this file, otherwise, your bitcoins will be lost. We recommend that you turn to the Bitcoin Wallet provider for specific questions about your wallet.