Bitcoin is a cryptocurrency, a form of electronic cash. It is a network that does payment through digital money. The transaction is peer-to-peer without the interruption of middlemen.
As the transactions occur without middlemen, there is no brokerage fee. This makes the transaction transparent between the buyer and seller. Bit coin has emerged successfully in a relatively short period of time.
All over the world, popular companies such as FedEx, Walmart, Microsoft, IBM etc accept its currency.
How do you Buy Bitcoin:
- Inorder to buy Bitcoin, you have to install wallet software such as Coinbase, Trezor, Robinhood etc in your computer. This Wallet allows you to send, receive and transfer bitcoins.
- To purchase bit coin, you have to deposit money into an online exchange that connects Bitcoin buyers and sellers.
- Once the exchange has accepted your currency, you can place order for Bitcoin.
It is explained as following below.
- The sender starts a transaction. Hence, the sender’s bitcoin wallet validates the transaction.
- The transaction is sent to the Mempool. Mempool, known as Memory Pool is used to store the bitcoins in transaction.
- The Miners fetch the transactions from the Mempool and pass it on through the Consensus Algorithm.
- The Consensus algorithm breaks the transaction into blocks.
- These blocks are stacked into the chain of previously validated blocks. This is called as Blockchain.
- Thus, the bitcoin is delivered to the receiver through the Blockchain.
Where to Find Bitcoin:
- Bitcoin Exchange:
To buy bitcoin from exchange centers, you can trade it with the regular currency you carry in your bank accounts.
Binance - It is the world's biggest bitcoin exchange Coinmama - It is used for quick purchases of bitcoin Bybit - It is preferred by advanced users
- Bitcoin ATM:
They are similar to the regular ATMs except that the bitcoin ATM connects the user to a bank for cashless purchase of bitcoin.
There are 7104 Bitcoin ATMs in the world with 4742 in the United States, 755 in Canada and 308 in UK.
- P2P Directory:
This is the traditional method where the buyer gets to meet the seller and carry on with the transaction.
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