Bitcoin is a digital cryptocurrency priced in dollars/dollar equivalent in your local currency. With bitcoin e-currency, you can buy things over the internet, shops, malls, supermarket without the need of the traditional bank anywhere in the world where they collect bitcoin. You simply transfer the bitcoin equivalent of whatever you are buying to the receiver’s bitcoin wallet.
There are various platforms, website where you can create and manage your bitcoin account or wallets. One popular site is BlockChain platform.
There are some terms in bitcoin that you need to be familiar with, they are outlined below:
1. Bitcoin Address
This address is what is used to receive bitcoin unit/money from a sender. This address is a string of character that you can give to anybody that wants to send bitcoin money to you. Example is: 1Hp47Xkmuozjf6W48UKXnUNdw7hg1JL54A
2. Wallet Id
This ID is generated for every registered user. It is usually a long string of characters that is generated upon your registration. It is used as part of your login details with your password instead of your easy to get email address. An example is: 7eb93grf-ehy0-41e-bhg76-77aa8a6jep1d. It is a secured string that cannot be figured out except by the person it was generated for. You are not supposed to give anybody this ID or set of character.
3. Bitcoin merchant site
These are platforms where you can create your own bitcoin account and manage it. There are various merchant site, but I am personally used to blockchain platform. On this platform, you can create a bitcoin account, you are immediately given bitcoin wallet id that you can use to login at anytime, send, receive bitcoin money and you are also charged transaction fees for each transaction. That is how this platforms are run profitably and you know you are secured to perform your transactions.
How to make money as a buyer and seller of bitcoin currency
Some people will be wondering what is the craze about this bitcoin of a thing? It is just like the normal buying and selling.
You buy bitcoin currency in dollar or the exchange rate of dollar in your local currency. Bitcoin value rises and falls. When bitcoin started some years ago, 1bitcoin or 1btc was valued below 1$ dollars but as of today, 1 bitcoin is around $857 dollars. What I am trying to say is that the value of bitcoin have been increasing for a long time now.
You buy bitcoin from seller by paying for it in dollars or your currency equivalent of dollars at an agreed price, then you can sell bitcoin anytime especially when it value have increased thereby making huge profit. You can easily know the current bitcoin value/dollar amount on merchant site like blockchain.
You can ask questions or contribute in the comment section. Thank you.