Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

Bitcoin mining is a process of adding transaction records to Bitcoin’s public ledger of past transactions. This ledger of past transactions is called the blockchain.

Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid.

This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a “subsidy” of newly created coins.

This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system through mining.

Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.

Assuming you already have a Bitcoin wallet, adding money to it is pretty straightforward. The vast majority of wallets today are what’s called “hot wallets,” meaning they’re connected to the internet.

That makes them easy to use but also somewhat vulnerable to hackers. Cold wallets, on the other hand, are offline and much more secure — but also much less convenient.

If you’re using a hot wallet, there are generally two ways to add money to it. The first is to simply buy some Bitcoin (or other cryptocurrency) and have it sent to your wallet’s address.

This is pretty easy to do on most major exchanges; all you need is your wallet address and some fiat currency (like USD) to buy with.

The second way is to accept Bitcoin as payment for goods or services. This usually requires setting up a merchant account with a Bitcoin payment processor, but once that’s done you can start accepting payments just like any other merchant.

Again, all you need is your wallet address — no need for a bank account or credit card.

Once your Bitcoin arrives in your wallet, it’s up to you what you want to do with it. You can hold onto it as an investment, spend it on goods and services that accept Bitcoin, or even convert it back into fiat currency if you need to.

No matter what you do with it, though, your Bitcoin is always just a few clicks away.

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary.

These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin can be purchased 17 on online exchanges and some physical stores.

The owner of a bitcoin transfers it by digitally signing it over to the next owner using a bitcoin transaction, much like endorsing a traditional bank check. A payee can examine each previous transaction to verify the chain of ownership. Unlike traditional check endorsements, bitcoin transactions are irreversible, which eliminates risk of chargeback fraud.

A wallet stores the information necessary to transact bitcoins. While wallets are often described as a place to hold[98] or store bitcoins, due to the nature of the system, bitcoins are inseparable from the blockchain transaction ledger. A better way to describe a wallet is something that “stores the digital credentials for your bitcoin holdings” and allows one to access (and spend) them.[7]:ch.

1, glossary Bitcoin uses public-key cryptography, in which two cryptographic keys, one public and one private, are generated.[99] At its most basic, a wallet is a collection of these keys.

There are several ways to buy Bitcoin at 17:

1) Directly from another person via marketplaces and peer-to-peer platforms;

2) Indirectly through an exchange; or

3) Using Bitcoin ATMs.

Each method has its own pros and cons. For example, buying Bitcoin directly from another person can be cheaper than going through an exchange but it may be riskier and less convenient.

Going through an exchange may be more expensive but it will likely be easier and more convenient. using Bitcoin ATMs may be more expensive than going through an exchange but it will likely be more convenient.