Bitcoin is a buzzing word these days. Everyone has started to learn what is bitcoin and how bitcoin works. Many are also exploring how to earn bitcoin and convert it into real money. We will cover all these questions on this blog.
Cars, houses, properties, and unbelievable gains keep people pondering on how to make that quick money with Bitcoin. What you need is the basic knowledge of what is bitcoin. Where to look, for the available opportunities online and offline to earn bitcoin.
Going into this article, you will learn different legit approaches possible for you to earn Bitcoin. We begin by having a brief knowledge of what is bitcoin. We will discuss some best ways to convert bitcoin into real cash.
- 1 What is Bitcoin?
- 2 How Does Bitcoin Work?
- 3 Is Bitcoin Legal?
- 4 How To Earn Bitcoin
- 5 How To Spend Bitcoin
- 6 What Is Bitcoin Wallet
- 7 Conclusion
What is Bitcoin?
Lets first try to understand what is bitcoin? Bitcoin is a new type of digital currency that is used for an exchange of services or products. Bitcoin does not have a physical form and it is not controlled by any government.
Bitcoin is a digital asset that is generated by solving a complex mathematical problem called mining. We can store bitcoins in a digital wallet called cryptocurrency wallet. In the coming section, we will explore some of the best bitcoin wallets.
How Does Bitcoin Work?
Bitcoin is based on blockchain technology. To understand how bitcoin works you need to know about Bitcoin Wallet and bitcoin transaction. A bitcoin wallet is a virtual entity where you can store your bitcoin. Everyone who wants to works on bitcoin must have a bitcoin wallet.
Bitcoin transactions happen between two bitcoin wallets. If you have 1 bitcoin in your wallet and want to pay it for a service you need to send the bitcoin to the receivers bitcoin wallet. This entire process is called a bitcoin transaction.
You can also convert bitcoins into cash by selling it. For instance, imagine if you have five bitcoins in 2010 at $0.003 worth $0.015. If you are selling it today at $10,000. You will gain five times the current value of bitcoin, which is roughly around $50,000 to $40,000 which is a gigantic profit in comparison to the initial amount.
Please note that the bitcoin price goes up and down frequently. You can check the latest bitcoin price to see the current conversion rate.
Now every transaction in bitcoin network happens peer to peer and securely. Bitcoin wallets keep an encrypted private key which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet.
We will talk about bitcoin wallet in the later section of the blog. Now let’s see the two most important questions for a bitcoin holder.
Is Bitcoin Legal?
Is bitcoin legal or is bitcoin safe to use in your country? These are the very basic question comes in our mind related to bitcoins. You must have an idea of these aspects before we start the discussion on how to earn bitcoin.
As bitcoin and cryptocurrency are new forms of exchange hence many countries are still trying to understand the pros and cons of using bitcoins. In some developed countries like Denmark, Canada, and the USA bitcoin is legal. Some Asian countries like India, China and Afganistan have restrictions on the use of bitcoin.
Despite restriction still, people are managing to earn bitcoin. Check out the complete list of countries where bitcoin is legal and illegal. You must do some research before you conclude if bitcoin is legal and if it is safe to use in your country.
Now the second question comes to our mind in terms of investment is that is bitcoin safe for investment. Note that bitcoin price fluctuates at a very high rate. The fluctuations of the bitcoin price make it a risky but high-profit investment program.
How To Earn Bitcoin
Due to its high profitability, like any other physical currency out there it is not easy to earn bitcoin. Therefore, there is a need for investing time and money to earn bitcoin. There are various ways to earn bitcoin online. We will discuss the most popular and low-risk ways to earn bitcoin.
Earn Free Bitcoins From Faucets
You can earn Bitcoins through free faucets websites. These faucets websites offer a small fraction of bitcoin as rewards to perform some tasks. Faucets website provides free bitcoin but a lot of faucets websites are just spam. Hence you need to do proper research on them before you invest your time on these free faucets websites.
Earning potentials from faucets websites are very slow but is the most risk-free way to earn free bitcoins. Below are some genuine free faucet websites which give free bitcoin every hour.
What is Bitcoin Mining
Another aspect to understand what is bitcoin is to understand bitcoin mining. Bitcoin mining is a process of validating bitcoin transactions by solving complex mathematical problems via high computing hardware and software. Anyone who solves this is called bitcoin miner and as a reward gets a part of bitcoins.
Setting up hardware and software for bitcoin mining is difficult and requires high investment. Hence you should join a cloud mining network or try free bitcoin mining tools to earn bitcoin.
One of the best and most popular free bitcoin mining software is crypto tab extension. This is just a browser like google chrome. Just install and it will do free bitcoin mining from your desktop and mobile.
Free bitcoin mining software gives a low amount of bitcoins. You can also join premium bitcoin mining to earn bitcoin quickly. Genesis Mining is the top premium cloud mining network. You can use a code 5Uhqoa to get a 3% discount.
How To Buy Bitcoin
Now we do have some knowledge of what is bitcoin and how we can earn bitcoin. Now let’s see how to buy bitcoins. Yes, it is correct you can also buy bitcoin with the dollar or with your local currency.
There are two ways to buy bitcoins. The first way is to buy bitcoin from cryptocurrency exchanges. In cryptocurrency exchanges, you can not only buy bitcoin but also many other cryptocurrencies. You need to join these cryptocurrency exchanges and complete your identity verification to buy cryptocurrency.
You can use a credit card or direct bank transaction to earn bitcoin. In some of these exchanges, you can buy bitcoin through PayPal. Below are some top international cryptocurrency exchanges where you can buy bitcoin.
The second way to buy bitcoin is through peer to peer (P2P) bitcoin trading. In P2P trading you can directly buy or sell to a real person. There are some international companies where you can join for P2P trading. Once you join you can start contacting persons who are willing to sell or buy bitcoin from you.
Considering the nature of P2P you may encounter many scammers. Hence we suggest choosing any one of the below companies for P2P bitcoin trading. These companies go through a series of background checks of the users before allowing them to trade.
How To Spend Bitcoin
Till now we discussed what is bitcoin and how to buy bitcoin. Now, this is the time to discuss how to spend bitcoin. There are many ways to spend bitcoin but we will discuss some popular ones.
Convert Bitcoin Into Cash
The first option is to convert the bitcoin into cash and transfer it to the bank account. The best way is to do it by selling your bitcoin in P2P networks such as LocalBitcoins.
Online shopping has become our first choice for day to day needs. You will glad to know that you can spend bitcoin for online shopping. You can purchase a variety of products with bitcoin from Overstock and Purse.io. Purse.io is popular because you search and buy amazon products in exchange for bitcoins.
Not only on online shopping but also you can spend bitcoin on travel costs. Expedia and CheapAir accept bitcoin as a valid payment option. MoreStamps is also another travel website that accepts bitcoin.
Buy Gifts And Gift Cards
Another way to spend bitcoin is to buy gifts for your loved ones. There are many websites where you can buy gifts for bitcoin. Two popular websites that accept bitcoin as payment options are Gyft and eGifter
If you feel you are lucky for Gambling then there are sporting websites where lovers of sports can gamble on their favorite teams. However, while platforms like this seem profitable, the risks involved is similar to using the real physical money to bet.
What Is Bitcoin Wallet
At this point, I hope you are clear what is bitcoin and how to earn bitcoin and some ways to buy bitcoin. So now you are ready to understand what is bitcoin wallet?
The bitcoin wallet is a program or software which stores bitcoin. The bitcoin wallet is also designed to send, receive, and store bitcoins through a wallet address.
Every bitcoin account you create with exchanges and faucets websites comes with a bitcoin wallet. Still, it is a best practice to store bitcoin in a secure wallet other than the exchanges.
The wallets can come in various forms or categories. The best and popular for bitcoin wallets are Desktop, Hardware, Mobile and Web. We will discuss some of the best bitcoin wallets in each category.
Bitcoin Wallet For Desktop
Bitcoin wallets for desktop are very easy to use. You need to download the software and install it. You can also manage many cryptocurrencies in the same desktop wallet. Exodus and Electrum are the best bitcoin wallets for desktop.
You can also explore below some best bitcoin wallets for desktops which are easy to use and secure.
Bitcoin Hardware Wallet
You can also use a hardware wallet to store bitcoin and other cryptocurrencies. Bitcoin hardware wallets are more secure than any other form of crypto wallet. You need to purchase hardware wallets from official websites or Amazon Websites. Now let’s take a look at some of the best hardware wallets for bitcoin.
Best Bitcoin Wallet For Mobile
You can also make your mobile a crypto wallet. You need to download bitcoin wallet for mobile from Google play store and Apple Store. Below are some of the best bitcoin wallet for mobile. Click on the image for more details.
Bitcoin Wallet for Web
Now the last form of bitcoin wallet is the Web wallet. This is very much similar to a wallet address that you get with bitcoin account on crypto exchanges and faucet websites.
In this field, I suggest going with a wallet that comes with a Coinbase account. Coinbase is secure because it is US-regulated and backed up by highly reputed financial firms.
Along with the Coinbase account, you can also use the Freebitco account to store your bitcoin. Freebitco is there in the cryptocurrency world for many years. You can earn daily compound interest on your bitcoin in Freebitco.
Finally, let us conclude on our discussion on what is bitcoin and how to earn bitcoin. Bitcoin is a new digital currency and with a little bit of knowledge, bitcoin can be a huge passive income source.
You can do more research to know what is bitcoin and how to earn bitcoin. Then you can finalize a bitcoin earning source and select one of the best bitcoin wallets to store it.
You should also be aware of the legality of bitcoin in your country. Due to the high fluctuation rate of Bitcoin price, it is a risky option to earn money.
Now in the comment section give your opinion on what is bitcoin. What is your source of bitcoin earning? Is bitcoin legal in your country and do you think it is safe to use bitcoin? Finally what the best bitcoin wallet you use to store bitcoin.
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