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Bitcoin Mining 101 – Top Facts You Should Know About BTC Mining

What are Bitcoins and where do they come from? Governments of various countries decide where and when to print paper money. They also decide the procedure of its distribution. However, Bitcoins aren’t governed by any central or national government authority at all. These are virtual currencies which can’t be printed on paper but are “mined”.

BTC mining involves a process where miners deploy particular software for solving math problems. Thereby, they are issued a few numbers of Bitcoins in exchange. This is the smartest way of issuing the currency. It also creates incentive for other people to mine as well. Mining is undoubtedly an important part of Bitcoin which assures fairness and transparency while securing Bitcoin network safe and stable. There are a few facts that you need to know about Bitcoin mining. The following post might be helpful for this matter.

What is Bitcoin mining?

Bitcoin mining is an important process of adding transaction records to Bitcoin’s public ledger of past transactions. These are technically known as Blockchains. These blockchains are used by Bitcoin nodes for separating the legitimate Bitcoin transactions from endeavors to reuse coins which have been used elsewhere already.

  • Verification: Bitcoin mining is designed as resource intensive and complicated. This is made intentionally so that the number of blocks which are found by the miners everyday might remain steady. Individual blocks would be considered valid only if they have proof-of-work. Proof-of-work is verified by other Bitcoin nodes through hashcash proof-of-work.
  • Profit making: Bitcoin functions as a currency and miners operate through mining as a business process for making profit. For some, it might be a risky business since the Bitcoin prices fluctuate widely. Investment costs for mining business can be around tens of thousands of dollars. If you are able to work efficiently, then you may be able to mine for profit making. However, you need to make your homework properly in order to make any big purchases.
  • Anonymity: A major aspect of Bitcoin mining is the anonymity. Mining is an important process of obtaining Bitcoins in a completely anonymous way.
  • Combination of Three: Bitcoin is basically three things. First of all, it is a protocol or set of rules that defines how the network has to operate. Secondly, it is a software project which implements this protocol. Thirdly, it is a network of computers and devices running software which uses the protocol to produce and manage Bitcoin currency. Mining can be defined in the protocol, implemented in the software and is an essential function for managing the Bitcoin Network. Mining verifies various things such as, transactions, double spending, collection of transaction fees et cetera.

Cryptocurrencies like Bitcoin show the future. If you are looking forward to upgrade your life, count on BTC and other such digital assets. Bitcoin regained a bull run lately which has drawn more aspiring traders to Bitcoin trading. The Bitcoin Revolution is an automatic trading tool for cryptocurrency trading, including Bitcoin. This software enables manual as well as automated trading and assures predicted income for just any level of trader.

The best and most Convenient Buying Methods for Bitcoins today

Learning how to invest in bitcoin requires you to know how to buy some. And with the popularity of BTC, it’s not difficult to buy some for you to trade. You can also simply use them for buying commodities, instead of engaging with complicated trading and investing. 

Bitcoin is certainly moving on a positive direction as an alternative currency. So, it’s wise to know how to get some for you to use. 

How to Purchase Bitcoins today 

There are several options in buying bitcoins. These options refer to the method you want to use to get bitcoins and other cryptocurrencies. These methods are: 

  1. Bitcoin Exchange 

This is the best and most regulated option in buying bitcoins. In fact, bitcoin exchange and broker platforms are used for trading and investing too. You only have to open an account on a reliable bitcoin exchange, then purchase bitcoins using your credit or debit cards. 

  1. LocalBitcoin 

LocalBitcoin is an online platform for selling bitcoins and other cryptocurrencies.  But you don’t need to open and verify an account to use it up. All you need is to browse the site, and see a lot of people wanting to trade or sell their bitcoins. Communicate with one of them, then begin negotiating. 

When a deal is closed, you can pay the seller through credit cards or debit cards. However, you can choose to meet with the seller, and pay them through cash. Another option is to pay them using bank transfer, PayPal or other payment methods suitable for both of you. 

  1. Bitcoin ATM 

Yes, there’s such as bitcoin ATM. 
They operate in countries where they are permitted. Similar to traditional ATMs, they help you get currencies, in their case bitcoins, conveniently.  

Assuming you’ve found one, you only have to use it by clicking on its menu to buy bitcoins. Most bitcoin ATM would ask for your mobile number for verification purposes as well. Once you’ve entered the verification code, it will ask for your bitcoin wallet address. 

If you don’t have a bitcoin wallet yet, the machine would create one for you. It will print a small sheet of paper carrying your bitcoin wallet info, and it’s important for you to not lose it. Remember that’s where your bitcoins would go. 

Next, place your cash into the ATM machine. Finalize the process by clicking send, and the machine would send bitcoins to your wallet right away. 

What to do after buying your First Bitcoins 

Say, you’ve already got your bitcoins in your bitcoin wallet. Be sure to take care of it to avoid losing your BTC. So, be sure to transact only on secured sites, and always keep your computer well-protected against malware and spyware. You wouldn’t want hackers to catch your BTC wallet credentials and open it up. 

Moreover, consider using a hardware bitcoin wallet. These are portable storage devices which only goes online when plugged to a computer. Hackers won’t have access on it when offline, which keeps your bitcoin data much safer. 

Using online security features are helpful too. 2-Factor Authentication is a popular example which you must use. This are those which requires you to enter a verification code sent through text before logging into an account. In fact, you must never use any bitcoin related accounts that doesn’t implement this security procedure. 

These are the simple methods for you to buy bitcoin. Take note of them accordingly, so you can get your first bitcoin and use it up.