This bulf of this article originally appeared on Naughty Nomad.
What is BitCoin?
The concept of BitCoin is a little hard to wrap your head around at first.
It’s basically a digital currency that operates without a central bank. Much like gold or silver, there is a finite amount out there, and it also “mined”.
Mining is basically individuals offering up their computer power to process transactions, kind of like a decentralized server using 1,000s of computers worldwide. However, the payout for mining is virtually nothing and it involves a lot of expensive hardware. Don’t bother.
At present rates the last BitCoin will be mined in 2140.
This may all seem a little nuts, but think of how nuts it was when paper money first came out!
In case I’m not explaining it well here’s a little video to help.
How to I buy Bitcoin?
Setting up a wallet
The first thing you need to do is set up a wallet.
The easiest way to do this is be downloading the coinbase app. You can also buy several cryptos using this app.
I also recommend localbitcoins. Localbitcoins is also the largest and best p2p exchange on the market, allowing to buy and sell bitcoins easily and fast.
On both platforms I recommend using the two-step verification process, which not only uses a password, but a code on your phone that changes every minute. You’ll be pointed to the an app for that.
Buying and Selling
Users post free ads for buying and selling, and you deal directly with the other person. Localbitcoins holds your money in escrow during these transactions, so it’s completely secure. There is also a user rep system in place.
You can pay for BitCoin via a variety of methods, from bank transfers to Paypal to even cold-hard cash. I personally use EU SEPA transfers as they are cheapest.
What can I buy with BitCoin?
Although the list of companies accepting BitCoin has continued to grow, it still isn’t mainstream. However, right now you load bitcoins onto Bitpay visa card and use it like any other visa card.
Also, there are several online casino that specialize in gambling with bitcoin!