Initially, Bitcoin was started privately by an individual in 2009. However, contrary to conventional currencies used in various countries, it isn’t controlled by a central monetary authority. Instead, it works similarly to a video chat through a peer-to-peer network of the computers of the people currently using it.
For the Bitcoin currency, the Bitcoin is the basic unit and is subdivided into satoshis which are in turn equivalent to one hundred millionth of a bitcoin.
You can use Bitcoins to transact for services and goods by transferring them from one internet user to another at virtually zero cost. This has enabled companies from across the globe make global transfers without having to continuously worry about exchange rates and bank transaction charges.
For you to use Bitcoins, it’s imperative to have a Bitcoin safe which in essence, is a special type of software with which you can store, send and receive Bitcoins. There are three types of Bitcoin safes, and they include software safes, mobile safes, and web safes.
Software Bitcoin safes can be installed on the PC to give you full control of it. As for mobile Bitcoin safes, they are usually installed on your smartphone or tablet and make it possible for you to use Bitcoin for daily transactions in shops and supermarkets by scanning a quick response (QR) code. The web Bitcoins Safes on the other hand usually store Bitcoins on the cloud servers.
It is nowadays very easy to pay for goods and services using Bitcoins, and you just have to input the recipient’s address on your computer or smartphone, the amount and then press send. Smartphones may also obtain a receiver’s address by scanning a QR code or by bringing two smartphones that use the near-field-communication (NFC) technologies, a form of radio communication, close to each other.
Protecting Your Bitcoins Safes
A Bitcoin safe resembles a pocket filled with cash. For you to reduce the chances of you losing your Bitcoins, it is advised to keep only small quantities of Bitcoins on your computer and smartphone and keep the rest somewhere safe like in an offline safe. Provided your wallet was encrypted, then an offline back-up will permit you to recover your safe, should you misplace your smartphone or PC.
Encrypting your Bitcoin Safes allows you to set a password that must be input before funds can be withdrawn. It’s critical to note that recovering a Bitcoin safe password once its lost is very difficult and is why it is essential to use a password that you can easily remember.
In order to be as secure as you can, you should store off-line back-ups in many locations using a variety of media like USB flash drives and CDs.
Because Bitcoin runs on software you download to your computer (PC or laptop) or smartphone, you have to update this software frequently so as to keep your Bitcoin transactions and safes secure.