Cryptocurrencies are all the rage now and no other cryptocurrency is as popular or as valuable at the moment as the mighty Bitcoin. But what if you have no real concept of cryptocurrencies yet, but would like to join the trading game and make some cash like so many others are doing right now? Well, you can start by going through the following points to get introduced to the basics.
What is a Bitcoin?
Bitcoin is the world’s first cryptocurrency which was created by Satoshi Nakamoto back in 2009. Powered, maintained and secured by a peer-to-peer network, Bitcoin is completely decentralized and all blockchain transactions involving Bitcoin are encrypted. While it is considered to be a form of currency, there is no approved physical version of Bitcoin (aside from these collector editions), unlike the Dollar, Euro, Gold or any other form of traditional currency. Any transaction done via Bitcoin is private and happens directly between the buyer and the seller, therefore, cutting out the need for a middleman.
How Do You Accept Bitcoin for Your Business?
If you start accepting Bitcoin in return for your service or products, you will need to open a Bitcoin wallet. There are many of these wallets in Australia and some of the more reputable ones include Coinbase, Ledger, Keepkey and Trezor. Almost all of them allow bank transfers once the balance reaches a certain amount, but there will likely be a fee associated with the conversion and transfer process.
How Do You Trade in Bitcoin?
You will need to open an account in CoinSpot if you wish to buy and sell Bitcoin in Australia. There are certainly other legal Bitcoin exchanges in the country as well, but CoinSpot is one of the better ones -you can check the review of the exchange over on CryptoHead for more details. All Bitcoin and other cryptocurrency exchanges work more or less similar to the stock exchange; you buy and sell the currency, in the hopes of making the right calls and earning a profit. Bitcoin can even be stored on the exchange itself, but a wallet gives you more options in terms of using your cryptocurrency more flexible.
How Do You Spend Bitcoin?
If you are planning to use Bitcoin as a currency as well and actually spend it, instead of only trading, then you have options for that as well. However, due to the same fluctuations in Bitcoin’s value that has made so many people rich overnight, a lot of businesses have also pulled support for the currency as well. Microsoft is the biggest name in Australia right now that still accepts Bitcoin for online purchases, but there are actually a number of smaller businesses that accept cryptocurrency payments, particularly in Melbourne and Sydney.
Bitcoin and blockchain technology, in general, is going to change how we do business forever, but as of now, there’s still a lot of room for improvement and stability. Nevertheless, this same unreliable nature of the cryptocurrency has made exchanging it quite a challenging and lucrative moneymaking option at the moment. In fact, a lot of experts are of the opinion that Bitcoin is more an asset than a currency right now.