Everything you need to know before investing in Bitcoin

How does bitcoin work?

This is a question that often causes confusion. Here is a quick explanation!

The essentials for a new user

As a new user, you can start with Bitcoin without understanding the technical details. Once you have a wallet installed on your computer or mobile device, your first Bitcoin address will be generated and you can create more when you need it. You can give your address to your friends to get paid or vice versa. In fact, it is similar to how email works, except that Bitcoin addresses should only be used once.

Balances – block chain

The block chain or “block chain” is a shared and distributed public accounting on which the entire Bitcoin network is based. All confirmed transactions are included in the block chain. In this way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified, ensuring that the payment is being made to the person making the payment. The integrity and chronological order of the blockchain are enforced with cryptography. “The distributed public accounting technology that underlies bitcoin … could change the financial system, think of the Internet before Internet browsers existed.”

Transactions – private keys

A transaction is a transfer of values ​​between Bitcoin purses that will be included in the chain of blocks. Bitcoin purses have a secret fragment called a private key, used to sign transactions, providing mathematical proof that the transaction is made by the purse owner. The signature also prevents the transaction from being altered by someone once it has been issued. All transactions are disseminated among users and usually begin to be confirmed by the network in the next 10 minutes through a process called mining.

Processing – mining

Mining is a distributed consensus system which is used to confirm the pending transactions to be included in the block chain. It enforces a chronological order in the chain of blocks, protects the neutrality of the network and allows an agreement between all the teams on the state of the system. To confirm transactions, they must be packaged in a block that conforms to strict encryption rules and will be verified by the network. These rules prevent any previous block from being modified, since doing so would invalidate all the following blocks. Mining also creates the equivalent of a competitive lottery that prevents anyone from easily adding new blocks consecutively in the block chain. In this way,


  • Mildred Mill

    I had no idea how bitcoin worked

  • Benjamin Cobb

    Awesome

  • Ruka

    Thanks for the info. The high volatility of bitcoins price does not seem attractive to me so I won’t be investing in them.

  • amy

    Ummm too complicated

  • Janet Graham

    Interesting read

  • Darlene Harding

    Informative

  • Benjamin Reveles

    Hmmm

  • Kathryn Clark Ingersoll

    I hope you give me the diamonds that I was promised for reading this article because I only do business with honest companies

  • Alecsandra Ribeiro Cavalcante

    Interessante

  • Melanie Roy

    Excellent

  • CEM

    Learned something new.

  • Ellen Little

    Informative but complicated

  • Yours Truly

    Learned a lot of from this article.

  • Jane doe

    Learned a lot

  • Darcy Stephen

    Here

  • Yt

    Interesting

  • Ellen Little

    Fascinating

  • Brittany

    This is great info! Thanks for sharing

  • Loraliforanimals

    I have always wondered aboutl bitcoins

  • Donald

    Thanks for the info

  • Nérd Marshall Houle

    That’s good

  • Kristen Clougherty

    Cool.

  • adele

    Hummm ok

  • Julie-Anne Trottier

    Great article

  • Interesting

  • Janet Marie

    Humm

  • kathie

    oh ok

  • Sadie Taylor Bippies

    Very informative

  • Wanda M. French

    Ok

  • Jessie

    Good

  • Jessie

    Good deal

  • Jessie

    Dkne

  • Jf

    Jj

  • Tonya Matthews

    Very imformal

  • Audra Chelise Marie

    Interesting

  • Tina

    Cool

  • Jennifer Keown

    Technology is amazing. I will consider investing in Bitcoin. Thanks!

  • Bo

    Cool

    • Kwistine

      Yep

  • Colld

    Cool

  • Katty

    good

  • Jack

    GOOD

  • Kwistine

    Hello

  • Mia Rue

    Very interesting, technology is rapidly changing and this is an investment that seems to have an additional advantage financially.

  • curtis dreger

    Good info

  • Carlos Robinson

    Advice

  • Jhon

    Nice

  • Kwistine

    Very interesting, Now I can say that I know how bitcoins work

  • Patrick

    Very informative, thank you!

  • Pamala Plechus

    Very informative.

  • Rime

    Interesting

  • Janet

    Now I think I understand. Good article.

  • Gina Q

    Very interesting

  • carol

    Great article

  • Remma

    Interesting

  • Remma

    Very interesting

  • vinooo

    rshdhdgr sgdgdgd ddvd

  • Skylar

    Good to know, been hearing so much about Bitcoin except how it works exactly

  • Kim Oliva

    Thanks for the info, although I find it very risky.

  • Chandra Hicks

    Interesting article

  • Annettw

    Very interesting reading. I’ve seen headings regarding Bitcon in magazines, wondered what it was all about, & I actually passed this info. on to my husband. Thank you

  • Maiah Clark

    Wonderful article

  • Lowly Carb

    Good info

  • Patricia Hughes

    Great article

  • Andrée Naud

    First I hear about it

  • Lora Stone

    Good info

  • Jp

    Great

  • LaTonya N Rencher

    I always wanted to learn the in’s and out’s of bit coin . Thank you for your very useful information.

  • Nads La Tannante

    Cool info

  • Shiny

    Greag

  • Beatrice Coleman

    Bitcoin article completed reading.

  • Carolle Moosaie

    Good to know!

  • Judith Wash

    Thinking about investing

  • Kim

    Always interesting to learn where to invest

  • Xori

    Intersting investment idea

  • Katty

    good

  • Juan

    Real interesting. Thanks a lot.

  • Judy Sparks

    Interesting

  • Shirley

    Great to know

  • Val

    Intriguing! It’s always good to have knowledge of what’s new to invest in and/or look out for!

  • Cathy Flory

    Interesting

  • Donald

    Looking for my diamonds

  • Czee

    Good info

  • Randy Smith

    Awesome

  • Quayshana Alexander

    Interesting

  • Denzel Jolliff

    Not sure about this, but it is interesting.

  • Kim Winkelman

    It’s always interesting to read about bitcoin

  • Judy Sparks

    I learned a lot with this article.

  • Darlene Daniels

    Good info

  • Luna Mccoy

    Not for me but interesting read

  • Celeste Dias

    Still like real coin

  • Ellen Little

    Great article!..ALOT of information to think about!