What is Bitcoin? Do I Need a Bitcoin Wallet?

"What is Bitcoin?" is a question asked by many new investors and traders, as well as by some veterans of the trading markets. If you're one of them, then this article will give you some useful information on the subject. This article will examine what is" Bitcoins," as well as how" bitcoins" are transferred throughout the global marketplace. Finally, we'll review some recommendations about trading with and investing in bitcoins. 

First, what is a digital currency? Simply put, a virtual currency is one that can be traded easily through an online computer program such as the Internet-based BitPay system or the PayPal Internet Wallet. Bitcoins are considered to be the most popular virtual currency in the world because it is faster and more secure than traditional currencies. In fact, many experts predict that it will surpass traditional currencies within a few years. Before you start using bitcoins for transactions though, you should familiarize yourself with how these currencies work, so you know what to look for when you want to start a transaction.

There are two ways to go about getting bitcoins: mining and exchange. Mining, which are done by people like you and me who are participating in the mining process for the purpose of raising the value of the bitcoins in their possession, and exchange, which are accomplished by your computer in exchange for an actual wallet. The process transactions are completed through the use of a transaction processor, which will allow you to complete your transaction and move your money to your new address. Both of these methods have their pros and cons.

First of all, mining is the oldest and the most effective way of getting to have your own bitcoins. The older the block chain - the older each block of transactions that were performed - is, the higher the odds that at some point in the future those old transactions will be able to be redone and have your balances increased. This also allows for much more secure transactions as well. If you're looking for a good place to start researching about how to get started with this process, check out some forums that focus on the subject and you just might come across a couple of miners who are willing to give you some help in exchange for some advice about the best places to mine.

On the other hand, this transaction fees can really put off people who are just getting started. Because the transaction fees required for mining are high, a lot of miners (including yourself) choose to stay away from the market until there is a significant increase in the value of the system, at which time they'll join the bandwagon and pump up the value of the bitcoins. You might think that you can take advantage of this situation, but this usually doesn't work out. For one thing, it's difficult to coordinate with a large number of miners, and you also have to pay their fees in order to get your hands on those bitcoins. This can get expensive.

It can be a great concept, though, if you're going to try and make use of the block chain to secure your transactions over the internet. But you still need to find a place to store your bitcoins safely, so don't spend too much time learning what is bitcoin when you're just getting started. Instead, just download a desktop wallet like Electrum or Jaxx, and get started using it to protect your transactions. You can learn more about the technology behind these secure, instant wallets by watching the video below. You can find bitcoin wallets for sale here.