What is Bitcoin, and how does it work?

Even though it has been around for quite some time, many people are still struggling to grasp the true meaning of bitcoin.

One of the easiest ways to explain bitcoin to your family and friends is as follows:

Bitcoin is a technology, currency and international network of payments and exchanges that is completely decentralized. A highly secure digital currency that is not owned by a government or bank, which can be transferred instantaneously across the globe for a minimal fee or none.

Who invented bitcoin?

When writing this article, the founder of bitcoin was still anonymous.

However, for most people, the nickname of the unidentified founder of bitcoin is Satoshi Nakomoto, who created it in 2008.

To date is still unclear if the name refers to a single person or a group of people. This is something that the whole world is waiting to find out. 

Despite much speculative information and an army of candidates claimed to be Satoshi since 2008, the true genius of cryptography and actual bitcoin inventor hasn’t been verified and revealed.

What is the purpose of bitcoin?

Bitcoin emerged as a solution for already outdated payment systems like credit cards and bank transfers that have been around since the 1950s.

Bitcoin solves speed, security, centralization, sophistication, inequality, and accessibility problems.

It’s important to understand that bitcoin is not just a currency; it’s so much more than that. It’s a limitless, revolutionary invention that constantly improves, adding value to its coin, loved by many who invested early.  

Bitcoin is not a company, organization, or government-owned, and it’s a mechanism that operates by simple mathematical rules that everyone who participates in the network agrees on.

The decentralized network does not care about who you are, a big corporation or a student; here, everyone operates at the same level.

Are bitcoins safe?

If you look at the bitcoin from an investment point of view, then the bitcoin is not ”safe” as the price is highly volatile.

The price can fluctuate 30% in a single day, which has been proven many times since its existence.

However, experienced traders and holders (investors) do a great job of securing their assets with the help of cold wallets.

A cold or hardware wallet is an offline device not connected to the internet, with two or more levels of security that keep your crypto and passwords away from any online attacks.

How to buy and sell Bitcoin?

It’s overwhelming at the beginning but surprisingly becomes second nature quite quickly, just like using your bank app.

The easiest way is to use a crypto exchange like Coinbase or Binance, where you can register and start buying cryptocurrencies literally in minutes.

Today there are hundreds of platforms where you can buy and sell your crypto assets, but be mindful that there are a lot of scammers at every corner of the internet.

To make it easy for you, we already have a list of the most reputable exchanges for buying and the best wallets for keeping Bitcoin and many of your altcoins you might like.

Thanks for reading and see you again soon!