It is already possible to pay with electronic coins not only in online stores but you can even pay tuition at some universities. Their average rate in May 2019 was a thousand times higher than seven years ago. Where does the money come from? How does it appeal? How can you create a Bitcoin wallet? And why is Bitcoin so popular?
What is Bitcoin?
Bitcoin is digital money that does not have a physical form. This is just a record that you have a certain amount of cryptocurrency on your account. At the same time, Bitcoin is becoming more and more common, and for it, you can buy many goods and services in Europe, USA, Canada, Australia, and Japan.
The difference between Bitcoin and other digital currencies is its decentralisation. Information about bitcoins is stored simultaneously on all computers that are connected to the Crypto Engine. Also, anyone can watch operations with all bitcoins for the entire period since its inception using blockchain technology, which makes this cryptocurrency one of the most secure in the world.
One of the ways to earn bitcoins is through Bitcoin mining, which is a calculation of the maintenance of Bitcoin payments around the world.
For this, the system charges a specific fee – a certain amount in bitcoins. It’s best to mine bitcoins with the help of special equipment – ASIC, after the purchase of which you will still need to install a programme for mining bitcoins, create a Bitcoin wallet, and also connect to an exchange or cryptocurrency exchange for crediting Bitcoin. Once all of these steps are completed, you can start mining.
Since the equipment for mining Bitcoin is quite expensive – costs start from $1000, it consumes a lot of electricity, generates a lot of heat and is quite noisy – the mining competition is only increasing. The mining of bitcoins at home gives way to industrial mining, as well as cloud mining (when you become a minority investor of such larger mining farms using special services sites).
What is a Bitcoin faucet?
Bitcoin tap is another way to earn bitcoins without investing from scratch, which can be done on a regular home PC or phone on a regular Android. Bitcoin faucet is an Internet portal, registering on which you are periodically charged a small number of bitcoins. Sometimes for this, you need to perform some action. For example, click on the button or enter the number from the displayed image in the line.
Such sites act as a kind of advertising platform promoting the services of Bitcoin exchanges. The portal administrator – the Bitcoin crane – receives income for advertising and shares part of it with registered users. Therefore, you can make money on Bitcoin faucets, but a lot of it will not work, unless you register on hundreds of them.
How to buy it
At the same time, you can still try to buy Bitcoin and earn on changing its rate. The most popular way of acquiring Bitcoin is through special trading platforms, which are called Bitcoin exchanges. Usually, they offer to exchange Bitcoin for your local currency, for example, hryvnia, ruble, or dollar, as well as electronic money. Among the most popular Bitcoin exchange sites, it is worth noting Coinmama, Changelly, Indacoin, Cardbit, Mat by, BestChange and 365Cash.
But, if you want to buy Bitcoin at a better price, you should use the services of specialised cryptocurrency exchanges that bring together sellers and buyers in one place.
An advantage of exchanges is the opportunity to buy Bitcoin directly from the seller, which can provide you with a more favourable deal rate. However, the exchange rate on exchanges is more variable than on Bitcoin exchanges, and exchanges can also set higher requirements for participants in the operation.
For example, it is necessary to deposit one Bitcoin on a deposit. Of the verified, reliable Bitcoin exchanges, it is worth highlighting CEX.io, Binance, BitMart Livecoin, BTC Trade, Kuna.
You can buy a small part of Bitcoin, for example, half, quarter, or even one-thousandth of cryptocurrency. This makes investing in Bitcoin more attractive because, in 2019, the price of 1 Bitcoin in hryvnias exceeded 290 thousand hryvnias and 11 dollars. On the Internet, you can find many Bitcoin converters/calculators that will help you calculate the amount of the planned operation in the desired currency.