December 10, 2024

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How To

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How to trade Bitcoin?

Bitcoin is king of the cryptocurrencies and it is unique as it uses blockchain technology, which needs no intermediary like banks for transactions to happen. Bitcoin transactions are safe and cheaper than the traditional method of transactions, such as bank wire transfers.

Here are few widely used options that you can use to start trading in Bitcoins:

  1. Bitcoin brokers – You can purchase or sell BTC and altcoins on crypto brokers. The main advantage of brokers is that they are regulated in different countries, which means that funds kept here are safe. They offer multiple options for deposit funds, along with great support. The biggest con is that brokers don’t allow you to withdraw your coins.
  2. Crypto Exchanges – BTC is bought using a crypto-exchange like Coinbase, Kucoin, Binance, etc. You have to go through a KYC verification and register yourself with the exchange.
  3. Peer to peer – Some peer to peer avenues offers you an user-friendly option to buy BTC. You will have to register on their platform to buy Bitcoin. Sellers and buyers register themselves for Bitcoin trading.
  4. Bitcoin ATM – The option of BTC ATMs are also getting popular in major countries like America, Europe and South Africa. You need to get your account barcode scanned at the ATM and buy the Bitcoin quantity you like.

How to mine Bitcoin?

There are three main ways to get Bitcoins, which are buying from crypto-exchange, mining them, and accepting them as a payment for your services and goods. Mining is simply the process of verification of BTC transactions. All the transactions need verification, and miners run software to find the key which can verify the transactions. Once it finds out, the transactions are verified, and the miners get the reward of a few Bitcoins. Bitcoin mining requires software and a specialized hardware. Software is free to use and easy to download. A miner should have a BTC wallet to keep his Bitcoins that he earns. A mining software, when it launched, starts to begin mining on its own. The program keeps on running, and the faster the PC, the faster is the mining.

From the recent years, the miners are investing in faster hardware to keep mining new BTCs. ASICs are used these days.

Another simple way is to join a mining pool. Mining Pool is a group of miners from all over the world who pool their computational power together to mine Bitcoins. Few popular sites allow the miners to get a small percentage of Bitcoins when they add their PC’s power to the group.