Bitcoin in simple words – instructions for «dummies»

Bitcoin in simple words

Recently, “bitcoin” and “cryptocurrency” terms are quite famous. They are pronounced at least once during the news release, while being used in newspapers and magazines. It’s quite complicated for older people to realize Bitcoin concept while for youth, being aware of computer technology, it’s quite simple.

 

Whether it is possible to talk about Bitcoin in simple words? There is a risk of getting confused even more in the event of looking for multiple articles, published on the Internet, since they are oriented towards people, having got certain idea of ​​the cryptocurrency industry. Login Casino editors are ready to be responsible for sorting through the basic concepts as well as explain Bitcoin goal in simple words. So, you may easily open the multifaceted and crypto industry and blockchain complex world for both yourself and your grandparents.

 

Bitcoin for dummies or what to start with

Is better to start with the simplest aspects for everyone while explaining Bitcoin concept and goal is for dummies. Bitcoin is the same currency as the ruble, dollar, euro or yen. However, it has got one significant difference. Bitcoin is decentralized and refers to digital money, created, stored and spent in electronic format only around the world. I.e. Bitcoin can’t be taken or put into a wallet.

Bitcoin purchase manual

Surely everyone, including the older generation representatives, is aware of the transfers from one bank card to another one online. Cryptocurrency operates in the same way – you can use it to buy goods on the Internet or cash it in another currency form. The main digital money difference is the intermediary absence: banks and payment companies, which charge fee for own operation within an ordinary transfer process from one card to another. There is one more difference, namely time, spent for transferring money. You will have to wait a few days before the recipient gets your payment in the event of international transfers, while this happens in just a few minutes in Bitcoin. Thus, the main cryptocurrency benefits are both high cross-border payments speed and the minimum fee due to the intermediaries absence.

 

Bitcoin purchase manual for dummies

Here you can draw a parallel with everyday things, known to everyone. What do people do when they want to buy foreign currency? They go to the bank, open an account, and then buy foreign money in order to keep it in the current account. It’s required just to perform the same actions without the need to go anywhere while using cryptocurrency. So, you just register on the cryptocurrency exchange, open an electronic account and then purchase cryptocurrency for fiat money. I.e. this is tantamount to a bank account, but bank-free way.

 

The way to earn on cryptocurrency

The way to earn on cryptocurrency

It’s possible to refer to Forex trading example, which almost everyone has heard about, in order to discuss the money earning way on bitcoins in simple words. People just buy currency at a low price, then resell it during the its rate growth period. The same may be applied to Bitcoin. The experts are engaged in analytics daily and submit forecasts for cryptocurrencies, helping traders to timely buy bitcoin and sell during the growth period. Accordingly, the trader’s income is the difference between the current two prices.

 

Mining concept

There is one more way to get bitcoins in addition to their purchase – digital coin mining. I.e. this is the network operation support by resolving computational issues. The user gets a reward in the tokens form for this work. Bitcoin mining complexity is increasing every day. Therefore, a special powerful equipment is required to perform the current tasks.

 

What to spend cryptocurrency for

What to spend cryptocurrency for

Once more question arises while answering the bitcoin concept one for «dummies» – what can cryptocurrency be spent for? For example, our parents used to come to a shop and use either bank card or money to pay for the goods and services while using a card or cash. So, they can’t imagine what to spend bitcoins for. However, all is simple. The cryptocurrency industry is gaining momentum. Therefore, multiple companies may no longer ignore its existence, that’s why they provide a chance to use fiat money to pay for their services on own website.

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