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What is a Bitcoin Wallet?

What is a Bitcoin Wallet?

A Bitcoin Wallet is your digital wallet where you can store your bitcoins. In your wallet you can also send and receive bitcoins, it is very similar to online banking.

Basically there are two options to get a wallet. Option one is that you download a bitcoin client, or option two is that you use an online bitcoin wallet services. The difference between those two options is that with the bitcoin client all the coins are stored on your computer, or smartphone, and so on. On the online wallet service, all your bitcoins are stored there.

So which wallet is better to use?

Bitcoin Client:

You are your own bank, all coins are stored on your devices or on a paper wallet.

– It is all up to you to keep your coins safe, if you mess up you could lose all your bitcoins. So always make sure that you have a backup, and that your wallet key is password protected.

Online Bitcoin Wallet Services:

+ With an username and password you can access your wallet from any computer or smartphone.

– If the online service closes or fails, you could lose all your bitcoins. Before you use an online wallet service, make sure it is trusted. Especially wallet services that promise you a profit when you store your bitcoins on there, are very suspicious.

Bitcoin Trading

Bitcoin Trading

When it comes to bitcoin trading sites and services you really need to take a review on the site you want to trade on. Why? Because there are way to many sites, that will either scam you, or close down after a while. For example Mt.Gox, this was a big bitcoin trading site, and just decided to close one day, and they also got problems because of some manipulation on the bitcoins market price. This is why you should always take some reviews, before you send money or bitcoins to a trading website.

I have tested a few sites, also some Altcoin trading sites, where you can buy and sell other crypto-currencys as well. Most of them don’t even exist anymore, and i have also lost a few dollars and bitcoins.

The only one i have always trusted is Bitstamp. On Bitstamp you can buy and sell  bitcoins in realtime. This service is running since a long time, they serving the bitcoin industry since 2011 and they are the first fully licensed bitcoin exchange. Its probably the best bitcoin trading site so far. They also have a great support, that will always help you.

Why Bitcoins?

Why Bitcoins?

Payment freedom – It is possible to send and receive any amount of money, small or big instantly anywhere in the world at any time. No bank holidays. No borders. No imposed limits. The network allows its users to be in full control of their money. Very low fees – Payments are currently processed with either no fees or extremely small fees. Users may include fees with transactions to receive priority processing, which results in faster confirmation of transactions by the network. Additionally, merchant processors exist to assist merchants in processing transactions, converting btc to fiat currency and depositing funds directly into merchants’ bank accounts daily. As these services are based on Bitcoin, they can be offered for much lower fees than other services or credit card networks. Fewer risks for merchants – Transactions are secure, irreversible, and do not contain customers’ sensitive or personal information. This protects merchants from losses caused by fraud or fraudulent chargebacks, and there is no need for PCI compliance. Merchants can easily expand to new markets where either credit cards are not available or fraud rates are unacceptably high. The net results are lower fees, larger markets, and fewer administrative costs. Security and control – Users are in full control of their transactions; it is impossible for merchants to force unwanted or unnoticed charges as can happen with other payment methods. Payments can be made without personal information tied to the transaction. This offers strong protection against identity theft. Users can also protect their money with backup and encryption. Transparent and neutral – All information concerning the Bitcoin money supply itself is readily available on the block chain for anybody to verify and use in real-time. No individual or organization can control or manipulate the BTC protocol because it is cryptographically secure. This allows the core of Bitcoin to be trusted for being completely neutral, transparent and predictable.

Bitcoins and Satoshi

Bitcoins and Satoshi

Bitcoin or in short form BTC is a decentralized digital currency that enables instant payments to anyone, anywhere in the world, without any fees. Bitcoin uses peer-to-peer technology to operate without any central authority or bank. The transaction management and money issuance are carried out collectively by the network.

A satoshi (sat) is a small fraction of a Bitcoin (Btc). The unit has been named “satoshi” in collective homage to the founder of Bitcoin, Satoshi Nakamoto. Satoshi are to Bitcoin like Pennies are to Dollars. 1 Satoshi = 0.00000001 ฿ 10 Satoshi = 0.0000001 ฿ 100 Satoshi = 0.000001 ฿ 1,000 Satoshi = 0.00001 ฿ 10,000 Satoshi = 0.0001 ฿ 100,000 Satoshi = 0.001 ฿ 10,0000,000 Satoshi = 1 ฿