I am sure by now you have heard about Bitcoin. If you haven’t this article will keep you updated to this digital currency. And if you already know about bitcoin then this is a refreshing course and some things you may not know or have missed about the evolution of this new digital currency. In this article you will learn what is blockchain technology, you will learn a brief history of bitcoin. Also covered here is how to get started buying bitcoins and other altcoins. Continued coverage of where to buy and exchange your coins. And other ways you can make money with bitcoins. Grab your favorite drink and seat and let’s get started.
What is blockchain?
What is blockchain? According to Wikipedia a blockchain is originally block chain – is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data.
Cryptocurrency is digital money or digital assets. It’s a form of payment between peers, and establishments. Think of your physical dollars in digital form. The major difference is that as of now it isn’t taxed or governed by any governments. Thus the term “your money” it really means its your money.
Who is Satoshi Nakamoto? Satoshi Nakamoto is said to be the unknown inventor of bitcoin. Back is 2008 after the market crash. This mysterious person or group left a white-paper description of how to solve the double spending of digital money. Which was a problem with digital currency. In other words it solved the problem from “counterfeiting digital coins”. That’s why people can’t temper with Bitcoin transactions once they are made. His identity is still unknown but he or they have revolutionized a new era of currency paving a new possible future.
With all the talk of decentralize being tossed accompanied whenever you hear or read about Bitcoin or block chain. I feel it’s best to know what this word really means. According to Dictionary.com
Decentralize defines as, to distribute the administrative powers or functions of (a central authority) over a less concentrated area: to decentralize the national government.
To put bluntly referring to bitcoin is to take power away from the banks and governments to placing the power back to you. Like the preamble to the Constitution states, “We the people…” But Bitcoin and the entire blockchain technology has no boundaries or jurisdiction. It’s free for all.
Easy Blockchain Explanation
Upon my research to bring you the most up to date informative news about Bitcoin, blockchain technology and cryptography I have curated this video originally from SlideShare. Honestly this is a great presentation. I believe in giving you different perspective on one topic. Hence, you’ll be well-informed in however or whomever teacher-techniques makes you understand a new concept or idea. I believe the better information you have the better equip you are.
This video is very well done, Paul Brody explains blockchain in layman’s terms (I’m not affiliate with him or his services, this is just a great video to share). The slides he uses are well put together to give you a broad understanding of what a blockchain is and how it can change the very way we use the internet. You will have a more understanding of the implication of blockchain technology besides its being used only as currency. For there are more possible use for this new tech.
Living On Bitcoin For A Week.
Some people are apprehensive towards change. In this case I believe when you learn about a new idea with an open mind rather than fear, you will be less apprehensive to make the change even if its gradual steps. This next video is done with Morgan Spurlock the guy who brought us Super-Size Me and other great documentary films. In this video he goes on living on Bitcoin for a week. This video gives you an overall look at Bitcoin. It’s very informative and entertaining. You will get the concept very clearly plus with real life implications. The video is a few years old, yet you’ll see how Bitcoin have morphed into this great phenomenon. If you do watch it on YouTube, do head back to this website, Thirdshiftmillionaire.com to complete this article and if you are enjoying this share it with your friends or someone whom this content might interest. Here is the video in its entirety;
Now that you know much about Bitcoin and Blockchain technology, and I bet you want to get started. You can begin right now. One place to begin buying Bitcoins is Coinbase.com. This is the one I personal use and has been around since 2012, its been safe so far and it is growing. They have had over 50 billion dollars of transactions to date.
How To Get Started Buying Bitcoins
The process is very simple and easy, use this link to get started,
- The first thing you need to do is sign up, its free.
- After you enter your information, you will be prompt to verify your identity.
- After you get through the first identity check that’s great. You may be asked to upload a photo copy of your driver’s license. They will give you concise details of what you need to do.
- My suggestion is it’s best to set up a two login step for security measures. For this you will need your cell phone to receive a seven digit code in order to log in. This is great to protect your account from getting hacked and other forms of misdeeds.
- Next after all of that is set up, you need to link your bank account with Coinbase to buy Bitcoins. You can also use a credit card.
- Next purchase bitcoins with your funds from your bank account it takes up to 3-5 days to clear.
- After you purchase your bitcoins it will show when it will be available. That’s it you’re all done. Now you have bitcoins. Next you can keep them or use them to buy other alt-coins.
Why buy and trade altcoins? Although Bitcoins are the primary coins most people refer to.There are other coins hitting the market just about weekly. A lot of people, startups see the potential of the blockchain technology in currency. They figure hey why not get in the game too.
Think of it this way, in every era there was a competition between who would become the household name. Think back between the battle of Blue-ray vs HD DVD, VHS vs Beta Max and so on. There’s always someone or a group of people who wants their product and services to become the brand everybody trusts. Most importantly people and companies are providing services with their own set of coins. Hence altcoins.
Altcoins such as litecoin, dash, btc and others are coins you can find on Coinmarketcap.com to buy, sell, and trade. This is your chance to play in the “Coin Stock Market” you will own a share of that company. So imagine buying the right coin or coins and they become like the next google or Nike, or Amazon. In 5-10 years you could be very rich.
This is what is so special about Bitcoin and all the other coins coming into market. It literally gives you a chance to change your financial life. Now I must warn you. This is not a get rich quick Scheme. It’s investing. You should know that investments can either make you money or you can lose money. There are no guarantees, but there are opportunities. I repeat there are no guarantees, but there are opportunities. With any investments you need to do your research. Find out each companies “altcoins” mission statements, you can find all this information in coinmarketcap by clicking on the coins name it will take you to a next page. Here the companies graph and other info is displayed. On the left hand side you can click on the company website and other info to see what they are all about. See pictures below.
Another way to do research is to go to Reddit in the subreddits, look for Blockchain technology or the altcoin you want information on (for example type “bitcoin” in the search menu). People are honest on Reddit, you can get a feel for a certain coin or the company behind it. Again, do your own research. There is an app called robinhood you can also install on your phone to get information. Lastly YouTube is another great place to get information and Facebook groups.
With all the research you will be doing. I must say, don’t get overwhelmed. If you need to walk away for a while do so. Please, I repeat please don’t just read and research without taking any actions. Actions gets you real life results. Research only fills your head, not your pocket.
Finding A Good Digital Currency Exchange
After you’ve bought your Bitcoins and have familiarize yourself with coinmarketcap. Now its time to buy, sell or trade your coins on the market. For this you will need a digital currency exchange. A digital currency exchange is similar to the stock market. Where you can buy, sell and trade your coins. This is a great place to make some money. You can either buy a set of coins let them sit and mature or you can use the exchange as a day trader trying to make as much money as you can by buying, selling, and trading.
One trade I personally use is Bittrex, there are others out there you can research. Bittrex is free to sign up. Here’s a quick walk through on how Bittrex works.
How To Use Bittrex
1. First you need to sign up. its free, here is the link
2. Second, you need to move money into the exchange. The coins you previous bought from coinbase can be added here. **important** You must only send bitcoins to bitcoins wallets, not litcoin to bitcoin or vise versa. It must be the same currency coins. Then you can exchange them on the Exchange. After you sign up you need to go to the wallet icon.
3. The next screen should have all the coins you can buy sell and trade. If you bought bitcoins from coinbase this is what it should look like. Tap the plus sign to add your bitcoins from coinbase or other place you bought your coins. Send a little amount to make sure it works.
4. After tapping the plus sign a menu will pop up for you to generate a new address. What this means is that it will give you a random set of numbers and letters which will be your account number. This is the address you will need in Coinbase to send your bitcoins to. The picture below is an example. If you want to send me some bitcoins that’s my personal address.
5. After you send the bitcoins you will see a pending transaction on the bottom right corner. You can refresh the page after you send it if it’s not showing up. It may take a few minutes.
6. Buying other altcoins. For this example I will use Lisk. You can buy and trade any coins to do your research first.
7. The simplest way to buy altcoin is to use the max buy option. Located on the Trading column are your current coins. Tap the max icon, numbers will populate next to the max icon. Then Tap the price icon. A drop down menu will pop up. Next tap bid. Finally tap Buy “coins”. A confirmation screen will generate, click to confirm on your purchase. Now you have a new coin up for trade, sell or let it grow. It all depends on your goal.
That is the simplest way to get you started on trading crypto currency. Before you move on to the next part, I highly suggest you pick up a hardware wallet. Even though Bitcoin is safe, from what you have seen there is still threats to this new currency. Hackers seem to find a way to just hack stuff. So getting into the Bitcoin game I highly suggest you pick yourself this hardware wallet. It will keep your coins off your PC or third-party sites from being stolen. You can purchase it through this link.
Another opportunity with the BlockChain Technology, is called mining. Mining is simply a computer that mines for bitcoins. A lot of people made great money on mining. Some were using their own personal PC’s now there are services where warehouses are stock pile with CPU’s to do the mining. A friend of mine told me he wished he started mining back in 2013, he was an early adopter to blockchain. If he had started mining back then, he would have a few thousands of dollars coming to him monthly. But he still fare well because he bought bitcoins around that same year when only a few people knew about it
Think of mining like the gold rush back in 1848-1855 where over 300,000 people went mining for gold. In today’s Digital gold rush people are setting up warehouses with CPU to mine for gold, others are simply signing up to be part of it with these companies. You can get in on this digital gold mining too. One respected mining company is Genesis Mining. They are well-known in the industry for mining Bitcoins, litcoin, dash and others.
This is a great opportunity to get into if you want to own more coins at the same time earning money. You can sign up for Genesis Mining for free, use my code sOLGNC to get 3 percent off when you buy or upgrade hashing power. Mining for Bitcoins is one of the many ways you can make good profit all the while bringing new coins to the market. It’s a win-win combination. Genesis Mining is a very reputable company. If you’d watch any of the videos in this article you can clearly see that mining for coins is indeed a “gold mine”.
On another note if you are the techie type and want to build your own mining rig. Setting up your own mining station won’t be too difficult if you enjoy changing bios, or upgrading graphic cards to making your own PC. You can check out this great video from Angry Chicken. He covers what you need to get started and he’s very knowledgeable.
Building Your Own Mining Rig
Many people decide to go this route because it falls under a passive income route. I mean after you build a good quality mining rig, it has the potential to earn you money daily. If you have the start-up capital and want to get into this kind of income stream by all means jump in.
As you can see Bitcoin and the Blockchain Technology isn’t going anywhere anytime soon. Many people are making great stride with this currency. This article is to give you an understanding of what Bitcoin is and the blockchain technology. I believe no one should be left behind unless they want to. Staying with the latest in your industry will only serve you long-term.
How ever you use this information is up to you, this is a new turn in our financial system. You should take as much advantage as you can. In a smart way though. Personally I’ve already open myself to this new currency where ever it may go, I’m in it for the ride. Remember what I stated earlier, there are no guarantees, but there are opportunities.
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Continue to inform yourself and increase your self-worth, until next time.