Introduction to Bitcoin

Introduction to Bitcoin

Advertisements

Bitcoin can seem complicated if you are trying to understand the concept behind the whole idea of online currency transactions. However, things may appear difficult only if you do not know what to look for and what it takes for Bitcoin transactions that may not feature in most other conventional ones. If you are having problems trying to understand the whole concept, do not worry, here are some of the basics.

As much as the whole idea of Bitcoin is based on online transactions, it can be viewed from a physical transaction perspective for a better understanding.

Look at it this way; you are sharing something with someone, this could be money, fruit, books, you name them. Then, it is only the two of you. You do not need to involve another person to witness it, nor do you have any concerns over the authentication of the transfer of ownership.

The state of property shifts permanently from one person to the other, and the second owner can further transfer the ownership to yet a third owner. Well, Bitcoin operates similarly.  

The only difference is that in most cases, Bitcoin operates on digital money. Now, here is where several issues come up. Unlike exchange in real life, the digital one can come with its fair share of challenges.

One of this is determining how the exchange of ownership can be confirmed and whether or not the previous owner had shared it with someone else or in public. This raises the concern of double spending, which has been a challenge yet to be solved.

Well, some measures such as digital ledgers can be used to counter this problem. In such a case, a third party will have to be involved to oversee the transactions carried out.  However, this comes with its downside as well. The person responsible for tracking the sales can interfere with the process by creating more bitcoins.

This issue can be avoided by making the whole process public, where such a ledger can be shared on everyone’s computer. The process will involve the use of open source codes and rules that will help achieve a more secure and improved surveillance of the transactions and monitoring of the entities in question.

This remedy comes in handy, thanks to three crucial aspects. One of them is the main idea that everything is in public domain, where everyone knows the number of pieces available, which is the amount in the case of Bitcoin.

Secondly, upon a transaction, anyone will understand that the transfer of ownership has been completed, as the public ledger will update and verify the process.

Lastly, with the ledger shared by all, there is no need for a third party to oversee your transaction, the owner cannot sell it twice or more, just as it would be the case in a physical setting. 

 Bitcoin involves a simple process that does not have to be complicated. Despite people finding it difficult to understand, looking at it this way makes things easier and clear.

Eight Steps to Earning Bitcoins

There are many ways in which someone can trade bitcoins and make money. Each of the following ways enables the users to earn.

1.       Accept them as a means of Payment

If you run any kind of business whether wholesale or retail, earn through accepting Bitcoin as a means of payment. There are various steps in which you can register to earn from Bitcoin. First, register for an online Bitcoin wallet from Coinbase.  Second, display a QR base on my wallet section to allow you to add or receive funds. Lastly, include the Bitcoin accepted here logo in your online business.

2.       Complete tasks Online

Most websites offer free bitcoins from people visiting their sites.  Once you get to their sites, before earning the free bitcoins you will get to see adverts or a music clip.  Still, there are sites where you complete analytical tasks while on others free bitcoins is an additional gift on some kind of purchase made.

3.       Earn from interest on payments

If you already have some bitcoins you can earn through lending them out and earning interest. Still, you should be careful to whom you are lending to avoid losses. 

4.       Bitcoin mining

Mining refers to the process where bitcoins are generated. During mining, each new transaction is recorded in a block chain where the old and new searches are stored. Mining hardware is expensive having most creators to join a mining pool. Here, you do not need to earn your new mining area.

5.       Earn Bitcoins from getting tipped

Earning through tips is similar to earning while one is receiving payments. Open a Bitcoin wallet, a QR code with your bitcoin address on it. People potential to tip you need to know your bitcoin address. One can be tipped through their online shop or a blog. Since there is no substantial amount of tipped bitcoins, a QR code is sufficient for knowing what transaction took place on a specific day.

6.       Earn through trading

Arbitrage trading is a way in which various traders can earn money. A trader spots an opportunity for purchasing an item in one location and selling it on another location at a higher price.  Bitworld trading comes with its set of difficulties. It is not easy to find trading opportunities. Yet sometimes when the opportunities are available they are not open to everyone. Traders need to keenly look into each opportunity.

7.       Earn Bitcoins as a regular income

Just like other forms of monetary payments, if your organization allows you can be paid by bitcoins. Still, there are only a few organizations that can accept payment through bitcoins.  Freelancing is one way in which someone can be paid through bitcoins. Jobs for bitcoin on Reddit are a good platform for freelancers to work on.

8.       Earn through gambling- not suitable for all

Despite the cons of gambling, there are many bitcoin gambling sites where someone can earn money through gambling.

The eight listed methods are a sure way of earning through bitcoins. Some methods are simple while others call for skillful users to succeed.

Leave a Reply