Bitcoins are a decentralized form of cryptocurrency. That is, they are not regulated by a financial institution or government. As such, unlike a traditional bank account, you don’t need a long list of paperwork such as identification to establish what is known as a bitcoin wallet. The bitcoin wallet is the one you will use to access your bitcoins and send bitcoins to other people.
How to set up an account
You can purchase a bitcoin wallet from a bitcoin broker like Coinbase. When you open a wallet through a certified broker, you are provided with a bitcoin address that is a series of numbers and letters, similar to the account number of a bank account and a private key that is also a series of numbers and letters, which serve as your password.
How Bitcoin works as an anonymous payment processor
You can do three things with bitcoins, make a purchase, send money anonymously to someone, or use it as an investment. More and more traders have accepted bitcoins as a form of payment. By using bitcoins instead of cash, you will essentially make this purchase anonymously. The same goes for sending money, based on the fact that you don’t have to send any payment to set up a bitcoin anonymously, you can essentially send money to someone else anonymously.
How Bitcoin works as an investment
The price of a bitcoin fluctuates from time to time. To put things in perspective, in early 2013, the average price of a bitcoin was about $ 400 per bitcoin, but by the end of 2013 the price of bitcoin rose to more than $ 1,000. This meant that if you had 2 bitcoins worth $ 800 in early 2013 and stored them as an investment in late 2013, those two bitcoins would have been worth more than $ 2,000 instead of $ 800. Many people store bitcoins because their value fluctuates.
Bitcoin poker and casino sites
Due to the anonymity of bitcoin, the gaming industry has taken bitcoin as a payment method. Both bitcoin casinos and bitcoin poker sites come to life and offer their players income, play bitcoin at the tables and retire directly to their bitcoin wallet. This means that there are no taxes or possibilities for government control. Like a normal Nevada casino, where you don’t have to register anywhere and all your transactions are anonymous.
How to send Bitcoin
In order for you to pay for goods and services or to send bitcoins to a person, three things are needed. Your bitcoin address, your private key, and the person’s bitcoin address. From now on, through your bitcoin portfolio, you will put 3 data, which are: entry, balance and exit. The entry refers to your address, the balance refers to the amount of bitcoins you send, and the exit is the address of the recipient.