What is Bitcoin and How to Buy Bitcoin?

 Bitcoin, a decentralized cryptocurrency, captivates investors globally. Uncover its intricacies, from buying and selling to mining. Delve into the safety measures and grasp the dynamics influencing its value.

1. What is Bitcoin?
2. How to Buy Bitcoin?
3. How to Sell Bitcoin?
4. How Is Bitcoin Made? What is Bitcoin Mining?
5. How to Open a Bitcoin Account?
6. How Many Dollars is 1 Bitcoin?
7. How Is The Bitcoin Price Determined?
8. Is Bitcoin Safe?

In addition to financial products such as stock markets, foreign exchange and commodities, the demand for Bitcoin, which is one of the virtual currencies used to make profit, continues to increase day by day. Bitcoin prices cannot be intervened from outside due to the lack of a specific center and no connection with the country, person or institutions.

 In this way, unlike other investment products, Bitcoin prices become an objective and reliable virtual currency by staying away from speculative and manipulative actions. Let's take a closer look at "What is Bitcoin and how to buy bitcoin" which is one of the most used virtual currencies.

What is Bitcoin?

 Bitcoin is one of the cryptocurrencies encrypted with complex codes based on cryptographic protocols. First of all, a document containing all the technical details is published on October 31, 2008 with the signature of Satoshi Nakamoto. Then, it comes to life as a public network on January 3, 2009.

 Although there are various estimates as to who exactly the Nakamoto name was created and by whom, it is still a mystery who he really is. The first bitcoin transfer takes place between Satoshi Nakamoto and the cryptographer Hal Finney, who contributed to Bitcoin development. On May 22, 2010, the first Bitcoin purchase was made by buying pizza in exchange for Bitcoin.

 The amount of Bitcoin is limited and specified in the genesis block to a maximum of 21 million. Looking at the bitcoins in circulation, it is observed that the total value was $ 1.2 billion in 2013, while it is seen that this value reached $ 182,967,290 billion as of 2020.

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How to Buy Bitcoin?

 There are many digital platforms for bitcoin trading. Since most of these digital platforms comply with the principles of Know Your Customer (KYC) and Anti-Money Laundering (AML), you can shop safely in the virtual environment.

 There are 2 methods to own Bitcoin. The first method is to buy Bitcoin for real money. The second method is to win the prize Bitcoin by solving cryptographic ciphers by producing blocks (mining).

 Whether you want to buy Bitcoin with real money or earn Bitcoin with Bitcoin mining, you need to have a virtual wallet in both methods. With the addresses of these virtual wallets, both crypto money exchange and shopping transactions can be performed.

 Bitcoin transfer transactions are sealed with a complex and asymmetric encryption method, and each transaction is announced on the Bitcoin network. In this way, it is included in the Blockchain, namely the Bitcoin chain. Thanks to this encrypted signing method, multiple use of the same Bitcoin is prevented.

How to Sell Bitcoin

  There are multiple methods that can be used to sell bitcoin. These methods include Stock Exchange, direct trading, online p2p method, ATM and one-to-one bitcoin sales. Since each option has its own characteristics, people can choose the most suitable one and perform Bitcoin sales.

• Stock market sale: An exchange account is opened with an identity document and a bank account statement in exchanges that mediate Bitcoin trading. Through this account, the amount of Bitcoin, currency and fee requested by the sellers are offered to the buyers as a price offer. When there is a buyer who accepts the offer, transactions are carried out automatically through the exchange.

• Direct Trading: Transactions can be carried out through websites that bring together Bitcoin buyers and sellers, as in stock market sales. The buyer and the seller, who accept the price offer, can complete the sales process as one-to-one contact. Websites only offer brokerage services at this point.

• Online P2P: The sale of p2p bitcoin, which is known as the abbreviation of the words 'peer-to-peer' in English, means 'peer-to-peer' trading market. With the offered shopping services, the person who owns Bitcoin purchases the product and extracts the Bitcoin in his hand.

• Atm: Thanks to Bitcoin ATMs, which offer manual services outside, such as bank ATMs, Bitcoin can be sold via online internet connection. Cash flow can be made from ATMs as well as transfer to wallet account.

• One-to-one Bitcoin: One-to-one Bitcoin sales are very easy and inexpensive compared to other methods. By scanning the QR code on the phone of a friend or acquaintance who wants to buy Bitcoin, it can be transferred to the Bitcoin virtual wallet account.

 

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How Is Bitcoin Made? What is Bitcoin Mining?

 There are 3 different methods to own Bitcoin. The first is to buy on the Bitcoin exchange, the second is to accept Bitcoins for goods and services, and the third is to produce new ones by mining Bitcoin. It is possible to quickly answer the question of how Bitcoin is produced and what is Bitcoin mining.

 As the name suggests, bitcoin mining is the process of uncovering Bitcoins on the online platform, just like gold mining. What is meant by disclosure here is the process of adding the transaction records made with this crypto currency to the blockchain that is, the public ledger.

 These operations can be carried out by computers with powerful processors. Those who make a profit by producing Bitcoin are called miners. With each confirmed transaction, a block is formed and the more blocks completed, the more Bitcoin the miner gets.

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How to Open a Bitcoin Account?

 In order to buy and sell cryptocurrencies such as Bitcoin, you must first have a virtual wallet. There are many websites that provide Bitcoin virtual wallets. You can open a Bitcoin account on these sites by registering on the relevant platforms. Membership to Bitcoin platforms can be made quickly and easily by entering user information online.

  Although declaration of credentials is mandatory by platforms that offer transactions based on KYC and AML principles, some platforms allow users to make Bitcoin transactions without revealing their identity information.

How Many Dollars is 1 Bitcoin

 1 Bitcoin is worth $ 13,110 when viewed at the current rate (29.10.2020). Btc usd price is frequently followed in the world Bitcoin market. Bitcoin trading is indexed to the US dollars.So 1 Btc Usd price is 13,110 dollars.

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How Is The Bitcoin Price Determined?

 The answer to the questions of how the Bitcoin price is determined, what is Bitcoin indexed to, is that the prices are determined according to free market movements. Bitcoin prices, which vary according to the supply and demand created by buyers and sellers in Bitcoin exchanges, are formed organically by itself. When the demand for BTC increases, prices rise, and when demand for BTC decreases, prices decrease.

 People who want to sell btc bid with a high price, while people who want to buy btc offer a low price. At this point where supply and demand come together, the agreement price determines the btc price. In summary, the price is determined according to the buying and selling activities that occur within the exchange's own ecosystem.

Is Bitcoin Safe?

 Bitcoin security derives its strength from cryptographic codes linked to bitcoin blockchain technology. Each bitcoin is registered on the blockchain and its repeated use is prevented. Nevertheless, although there are cases such as Bitcoin fraud and Bitcoin theft, which we often hear in the news, none of these news are directly happening over the Bitcoin network.

 In order to ensure the security of Bitcoin, it is recommended to be careful about the selection of stock exchange and brokerage websites that offer Bitcoin services. If the organization you work with is a broker that attaches importance to security and performs identity verification during account opening, it is not possible to encounter any security problems.

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