Here is all what you need to know about Bitcoins and other cryptocurrencies !
What is a Bitcoin ?
Bitcoins are one of the best known form of cryptocurrency.
Cryptocurrency is a Digital Asset used as a medium of exchange wherein individual database using strong cryptography to secure transactions , creation of additional coins and to verify transfer of ownership.
They do not exist in Physical forms (Like paper money).
Where are Bitcoins stored ?
A Bitcoin is a Digital Currency which is Stored on a phone, computer, hard drive or other storage devices.
Bitcoin is created, distributed, traded and stored with the use of decentralized ledger system known as blockchain.
Who are Nodes or Miners ?
The individuals and companies who own the governing computing power and participate in the Bitcoin Network are comprised of nodes or miners . Miners are the people who process the transactions on the blockchain. They are rewarded with introduction of new Bitcoins or paid fees in the forms of Bitcoins.
These Miners are decentralized authority enforcing the credibility of the Bitcoin Network.
How do Bitcoins work ?
Bitcoin is basically a computer file which is stored in a 'digital wallet' app on a smartphone or computer. People can send Bitcoins (or a part of one) to your Digital Wallet , and you can send Bitcoins to other people. You can buy and sell things in bitcoins.
How do people get Bitcoins ?
There are three main ways to get Bitcoins -
1. You can Buy Bitcoins with real money.
2. You can sell things and let people pay you with Bitcoins.
3. They can be created using a computer.