Bitcoin: Top 5 tips for beginners in the extraction and purchase of crypto currency Buy or drop

Monday, August 21, 2017

Bitcoin: Top 5 tips for a newbie
Bitcoin: Top 5 tips for a newbie
The Bitcoin (bitcoin) rate suddenly began to grow rapidly from the beginning of the year, breaking the $ 2000 mark for 1 BTC a month ago. Naturally, against the background of such unprecedented growth, the public has increased interest in this crypto currency.

For those who decided to purchase or most "namaynit" bitcoin, I will give five practical tips for beginners.

What is Bitcoin ?

Bitcoin is a digital crypto currency created in 2008 by some mysterious mathematician Satoshi Nakamoto.

 Bitcoins are not controlled by anyone, but are accessible to everyone
Bitcoins are not controlled by anyone, but are accessible to everyone

Live them you can not touch - they are exclusively in the World Wide Web, like your bank account. But at the same time, they are not controlled by anyone (even the inventor himself), open and accessible to everyone. They are distributed and stored on the principle of p2p networks, like Torrent.

Anyone can track all the transactions of any Bitcoin, which makes them transparent, but at the same time, the owners can not be found, which makes them attractive to those who like anonymity.

A robust encryption mechanism that is used in SSL, in SSH and even in banking networks, has a 100% resistance to hacking, which means it guarantees that even the Pentagon will not be able to get to the bitcoins.

For example, to crack the network bitcoin, there will not be enough power for all supercomputers in the world.

These coins have nothing to do with crypto currency - it's just a souvenir
These coins have nothing to do with crypto currency - it's just a souvenir

The biggest surprise is that the number of Bitcoins is limited and they can not be extracted indefinitely. It is estimated that the total number of available bitcoins should be 21 million , and by 2025 the last BTC will be produced.

The catch is that the Bitcoins get harder every year (mining), it's made more difficult - it's done specifically to constantly increase the value of the crypto currency.

From 2009 to December 2012, the amount of remuneration for one extracted block was 50 BTC. Then this number dropped to 25 BTC. When the number of produced bitcoins passes through half, the reward is reduced by 2 times. When their number reaches 75%, the reward will fall another 2 times, and so on.

Based on the above facts, it can be assumed that the Bitcoins value will only grow, especially when more and more people start using them, and the new BTC will appear less and less until it runs out and will have to use what will be available in circulation.

The cunning move of bankers and politicians with a printing press for banknotes in the case of Bitcoin will not be possible. This fact only increases the value of the crypto currency and causes hatred on the part of the powerful.

Bitcoin Mining

The main way to extract Bitcoins is still "mining" (mining). Obtain them with a special utility installed on your home computer. Their list can be viewed here - they are all free.

NiceHash Miner. Extremely simple interface. Information about the computer's power and approximate production per day is displayed.
NiceHash Miner. Extremely simple interface. Information about the computer's power and approximate production per day is displayed.

You need a gaming desktop (notebooks are not absolutely suitable) with a powerful video card , at least GeForce GTX 1060 or ATI Radeon RX 480 with good cooling, because the video card will be loaded 100% day after day. It's the video card that decrypts the Bitcoin data.

But even if you have the same configuration, and have already decided to become a "miner" - not so simple.

The above configuration is the minimum tool for mining. Profitability of production in the above-described computer will not exceed $ 2 per day (0.000794 BTC).

Therefore, to increase the production speed, crypto currency is usually bought by special "farms" - bundles of several video cards connected with each other (from 3-5 and more). The price for such a kit comes to the cost of used foreign cars. Payback in about 2-3 years and this with a round-the-clock "mining" and a load on the grid 800-1500 watts.

A simple "farm" for mining Bitcoins
A simple "farm" for mining Bitcoins

For those who are looking for "mining" faster, you can pay attention to ASIC-miners . The cost of such computing "monsters" starts from $ 2500 - they are created exclusively for "mining" and outperform the farms of 30 video cards, but they are no longer suitable.

Bitcoin wallet

To get Bitcoins, you need an electronic wallet. All types of purses can be studied on the official website . There are a lot of them, with different interface, advantages and disadvantages. Therefore, better study them in detail, before creating a purse. We can recommend Simple Bitcoin, Electrum or Breadwallet.

Example of a purse for Bitcoins
Example of a purse for Bitcoins

Important: when creating a purse, securely store your login and password, otherwise it will not be restored in any way.

To receive Bitcoins, you will need the recipient's address-it is issued in text format as a random sequence of numbers and letters, and also in the QR code version. This is convenient when someone wants to send a crypto currency through a smartphone or simply write down the address for the future.

The wallet can not be cracked with the selection of keys, since it is generated in a reliable way using the SHA-256 encryption method.

Buy Bitcoin

If "mining" for you is more expensive than money, then you can purchase Bitcoins on reliable resources. As practice shows, bitcoin will only increase in time, but it is subject to currency fluctuations. 

Bitcoins sell and buy several online exchangers: UkrCash , E-BTC , Let'sPay , Bitcoin24 .

What can I buy for Bitcoin ?

In the world, bitcoin can already be paid for almost any services and goods in which this currency is not yet banned. Very often bitcoins are calculated on the Internet for goods that are difficult to obtain or require complete anonymity - yes, they are often used for any criminal transactions, since it is impossible to track the seller / buyer.

The list of what to spend bitcoins, you can see here - the site is a modular hodgepodge of everything, for which you can pay off the crypto currency. And those interested in luxury goods for bitcoins can look on this site - here you can buy everything from gold watches to the island in the Caribbean Sea.

Bitcoin: Top 5 tips for beginners in the extraction and purchase of crypto currency

 
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