What is Bitcoin and other CryptoCurrencies? Explained in Simple Words
Hi,
When you are new to the world of CryptoCurrency or Bitcoin, more so likely you never heard the Cryptocurrency, but Bitcoin. Bitcoin is a cryptocurrency, which was released via a software by Satoshi Nakamoto(a pseudonym) in January 2009. This guy never came out in public and somewhere in 2010 transferred all his work to various community developers and ceased his involvement in the project.
Bitcoin.talk is the forum which is also said to be created by him. Now Bitcoin is almost 9 years old, and its value has risen from almost 0 to $15000. There is this Pizza story, which you would like to hear.
The names or address or identity of the user is secret, only a string of alphanumeric characters which form the wallet addresses are visible. This string addresses are form of 26-35 characters, in general 34.
There is a small transaction fee and transaction time(about half an hour these days.) and that is all it takes to transfer your funds to any person in the whole world who has a Bitcoin wallet. Watch this video for better understanding.
Is Bitcoin the only CryptoCurrency?
No, as of today there are more than 1400 cryptocurrencies registered on the website called coinmarketcap. Most famous other than Bitcoin are Ethereum, Ripple, Litecoin, Steller Lumen, TRON, NEO and Dash etc which have their total market capitalization in Billions of Dollars.
If you want to use your local currency to buy the Bitcoin, then you have to use a wallet or exchange which must support this function. For example the users from United States use Coinbase, and users from India mostly use Zebpay. Now there can be several exchanges out there in various countries. For Indian users, Zebpay is known as best. It is available only in app form, not in desktop format.
Download the zebpay wallet here.
Go to Coinbase
Exchanges
Most exchanges don't allow direct withdraw or deposit of fiat currencies, so in order to trade on exchanges, one has to transfer the Bitcoin or other currency which you bought from wallet to exchanges.
Centralized Exchanges with transaction and trade fee
Coinbase and Zebpay have their exchanges as well, where you can trade also, but there is more to it. Gdax is the name of Exchange owned by Coinbase, while Zebpay as of today trades only Bitcoin, Litecoin and Bitcoin Cash.
So if you want to trade other currencies, use the exchanges such as Binance, Bittrex, Kucoin and Hitbtc. These are best rated exchanges and till now there are no issues of fraud or hacking with them. You have to pay small fee for transactions and trading there.
Join Now:
Binance (best rated)
Bittrex
Kucoin
Decentralized Exchanges
There are so many other exchanges, and few new decentralized are also coming. The first one in market is known as Openledger which is also known for Bitshare tokens. New projects are also in line, and even big exchange Binance's CEO Changpang Zhao said that when the time comes, they will convert into the decentralized model.He is a big supporter of cryptocurrencies and strongly disagrees with the remarks made by Warren Buffet.
When you are new to the world of CryptoCurrency or Bitcoin, more so likely you never heard the Cryptocurrency, but Bitcoin. Bitcoin is a cryptocurrency, which was released via a software by Satoshi Nakamoto(a pseudonym) in January 2009. This guy never came out in public and somewhere in 2010 transferred all his work to various community developers and ceased his involvement in the project.
Bitcoin.talk is the forum which is also said to be created by him. Now Bitcoin is almost 9 years old, and its value has risen from almost 0 to $15000. There is this Pizza story, which you would like to hear.
Bitcoin Pizza Story
Back in 2010, a florida based bitcoin miner named Laszlo Hanyecz paid 10,000 bitcoins in exchange for 2 pizzas. Today that guy would have been worth more than 100 millions dollars. This is how crazy the price of Bitcoin has blown up.How to use Bitcoin and how does it work
Now to use Bitcoin, one does not have to understand the whole math and science behind it. In simple words it is a digital currency which can be used to transfer money from one user to other without any intermediaries such as big banks. The transaction gets recorded in the blockchain, which is a permanent record and can not be altered.The names or address or identity of the user is secret, only a string of alphanumeric characters which form the wallet addresses are visible. This string addresses are form of 26-35 characters, in general 34.
There is a small transaction fee and transaction time(about half an hour these days.) and that is all it takes to transfer your funds to any person in the whole world who has a Bitcoin wallet. Watch this video for better understanding.
Is Bitcoin the only CryptoCurrency?
No, as of today there are more than 1400 cryptocurrencies registered on the website called coinmarketcap. Most famous other than Bitcoin are Ethereum, Ripple, Litecoin, Steller Lumen, TRON, NEO and Dash etc which have their total market capitalization in Billions of Dollars.
Wallets
There are several wallets and exchanges which you can use to keep and transfer your funds, or even trade with other currencies in case of exchanges.If you want to use your local currency to buy the Bitcoin, then you have to use a wallet or exchange which must support this function. For example the users from United States use Coinbase, and users from India mostly use Zebpay. Now there can be several exchanges out there in various countries. For Indian users, Zebpay is known as best. It is available only in app form, not in desktop format.
Download the zebpay wallet here.
Go to Coinbase
Exchanges
Most exchanges don't allow direct withdraw or deposit of fiat currencies, so in order to trade on exchanges, one has to transfer the Bitcoin or other currency which you bought from wallet to exchanges.
Centralized Exchanges with transaction and trade fee
Coinbase and Zebpay have their exchanges as well, where you can trade also, but there is more to it. Gdax is the name of Exchange owned by Coinbase, while Zebpay as of today trades only Bitcoin, Litecoin and Bitcoin Cash.
So if you want to trade other currencies, use the exchanges such as Binance, Bittrex, Kucoin and Hitbtc. These are best rated exchanges and till now there are no issues of fraud or hacking with them. You have to pay small fee for transactions and trading there.
Join Now:
Binance (best rated)
Bittrex
Kucoin
Decentralized Exchanges
There are so many other exchanges, and few new decentralized are also coming. The first one in market is known as Openledger which is also known for Bitshare tokens. New projects are also in line, and even big exchange Binance's CEO Changpang Zhao said that when the time comes, they will convert into the decentralized model.He is a big supporter of cryptocurrencies and strongly disagrees with the remarks made by Warren Buffet.
Exchanges with no trade Fee
Now these are interesting ones and are somewhat new, so they will take time to build the trust. The best available as of today is Cobinhood.
The one with a big hype that is going to launch probably soon in February is Robinhood, but this one I guess is only for US citizens.
That is all for today, I will try to write frequently here, so please stay connected by following the blog. This is the first post in the blog, and your review is important. So if you have anything to say, please leave a comment.
Thanks!
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