Bitcoin 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 can be bought on exchanges, or directly from other people via marketplaces. You can pay for them in a variety of ways, ranging from hard cash to credit and debit cards to wire transfers, or even with other cryptocurrencies, depending on who you are buying them from and where you live.
A growing number of people are using Bitcoin to send money to family and friends overseas, as it is faster and cheaper than traditional money transfer companies such as Western Union or MoneyGram. It is also becoming increasingly popular as an investment; investors buy bitcoins and hold them in the hope that their value will increase over time.
The first step to buying bitcoins is to set up a bitcoin wallet. This can be done easily enough by downloading a bitcoin wallet app such as Blockchain or Coinbase onto your phone or computer. Once you have set up your wallet, you will need to find a place to buy bitcoins.
There are several exchanges available, such as Bitstamp, Kraken, and Coinbase. However, be aware that each exchange has its own process for purchasing bitcoins, which may take some time.
Once you have found an exchange and set up your account, you will need to verify your identity before you can start buying bitcoins. This usually involves providing some personal information such as your name and address, as well as uploading a photo ID.
Once you have been verified, you will be able to purchase bitcoins through the exchange using your credit or debit card.
The process of buying bitcoins is relatively simple once you have found an exchange that suits your needs. However, it is important to remember that bitcoin is a volatile currency and its value can fluctuate dramatically.
This means that if you are not careful with your money, you could lose everything you invest.