What Is Bitcoin (BTC)? A Simple Guide for Beginners

In this guide, we’re introducing “What is Bitcoin (BTC)” in simple words so anyone can understand, whether you’ve heard about it on the news or from a friend, Bitcoin is more than just an online cash, it’s a new way to send, receive, and store value without needing a bank. So if you are curious about how it works, why people use it, and stores value without needing a bank, we will be Introducing Digital Currency Bitcoin (BTC) in this article.

Bitcoin is the first and most well-known digital currency in the world, this currency code has unique features that makes it superior to other common currencies, The digital currency market, which is based on Blockchain technology, has been very popular in recent years, and most people are gaining knowledge and learning about this amazing financial technology, so it is your sign to getting to know this digial currency.

🪙 What Is Bitcoin (BTC)? Understanding the Digital Currency

Bitcoin is a digital currency that was introduced to the world in January 2008, Compared to other online payment gateways, Bitcoin charges a lower fee for transferring customers and is decentralized, mining this digital currency requires special devices that use a lot of electricity because of the high power usage, many counties doesn’t find it cost-effective to produce Bitcoin, in the rest of this article we will give you a full introduction to Bitcoin and how it works.

💡 How Bitcoin (BTC) Works – Simple Explanation for Beginners

1-Get a Wallet

You don’t need to know every technical detail to start using Bitcoin, just install a Bitcoin wallet on your phone or computer, and this gives you your first Bitcoin Address, and you can make more when needed, you share your address to send or receive Bitcoin, kind of like email, but Bitcoin addresses should only be used once.

2-Blockchain Keeps Records

All Bitcoin activity is saved in a public record called the blockchain, which helps wallets know your balance and confirm new transactions.

3-Transactions Use Private Keys

A Transaction means sending Bitcoins from one wallet to another, each wallet has a private key used to send and prove that the sender owns coins.

💯 Why Do People Use Bitcoin (Bitcoin Features)

Bitcoin, as well as all available digital currencies have unique features that make these currencies superior to real currencies:

1. Decentralization: Decentralization means that it is not overseen by any organization or government and that transactions with Bitcoin or other digital currencies don’t require an intermediary or third party to approve the transaction.

2. Ease of the transaction process: Due to the lack of a privacy, the lack of strict and complex rules for trading, the full transparency of the market and its information, as well as the lack of ownership of any government in this market, trading with Bitcoin or other digital currencies is much easier than real markets.

3. High-security: Bitcoin has no physical equivalent and is only made of digital codes that people can use to perform activities in the digital market by providing these codes, the extraction of these codes is very complex and it is impossible to access its codes and to cheat or duplicate transactions in the digital currency market.

4. The anonymity of individuals: One of the special features of Bitcoin is the privacy of the two parties to the transaction for each other, which makes it so hard to track the people who make these transactions.

5. Easy to carry and move: Because Bitcoin is a digital currency and has no physical existence, it is much easier to transport than real-world currencies.

6. Non-collection of taxes: Bitcoin and other digital currencies aren’t currently fully recognized by any country, and governments still don’t know how to deal with these currencies, the activity in this market isn’t currently taxed, and is a great place to do great deals.

7. Irreversibility of transactions: As the identity of individuals in Bitcoin transactions is completely anonymous, it is not possible to return or change it if another transaction is registered. Due to this feature, it is recommended that you be very careful when making this type of transaction and make sure that the other party’s wallet information is correct, because if you make a mistake in the transaction, it isn’t possible to return or change the transaction.

🔑 Is Bitcoin Safe and Secure?

Bitcoin is generally considered safe because it uses strong technology to protect your money, it reles on a special type of digital security called SHA-256 encryption, which keeps your transactions and wallet information secure, this system is really hard to break, so it helps protect users from hackers, to keep your Bitcoin even safer, you can use tools like hardware wallets or cold storage, which stores your coins offline and away from the internet, many people also use multi-signature wallets, which requires more than one approval to send money, keeping your wallet software up to date is another good way to stay secure, with these safety steps in place, using a Bitcoin can be a secure way to manage your digital money.

📊 How to Trade Bitcoin

In the first step, you can buy a Windows VPS to trade Bitcoin, therefore, we suggest you visit the plans presented on our website and choose and buy the plan you need, Then, you should choose a suitable wallet, there are several wallets to hold Bitcoin and you should choose the most secure wallet that supports Bitcoin digital currency, choosing a wallet is one of the most important principles of investing in digital currencies because you are going to invest your assets and capital in it. Of course, many people prefer to keep their Bitcoin in an exchange office, This is suitable for people who either have little Bitcoin or want to keep their Bitcoin for a short time, Most traders who trade Bitcoin daily use this maintenance method, Next, you should select a reputable exchange that offers Bitcoin, All your transactions will done in the context of this exchange, so be careful in choosing it. In the last step, you must specify your payment method,  There are different payment methods, Some exchange offices support all of these methods, and some others support more limited methods such as payment by email, payment via WebMoney, cash payments, PayPal, and Western Union.

💰 Best Bitcoin Wallets

The following wallets are currently the best options available for storing Bitcoin:

• Trust Software wallet
• Ledger Hardware wallet
• Trezor Hardware wallet
• Mycelium Software wallet
• BlueWallet Software wallet
• Electrum Software wallet
• Exodus Software wallet
• Bitcoin Wallet Software wallet
• Blockchain.com Software wallet
• Bitcoin Paper wallet with Bitaddress.org

Conclusion

Bitcoin has completely changed how we think about money, which is a digital currency that lets people send, receive, and store value without needing a bank or government, with features like high security, fast transactions, and personal privacy, Bitcoin has become a popular choice for those looking for a new way to manage money. Even though it might seem complex at first, this guide has shown that Bitcoin can be easy to understand and use, whether you’re interested in investing, trading, or just learning something new, Bitcoin offers a modern and exciting way to be a part of future of finance, just remember to always stay informed, use safe wallets, and trade carefully.