Beginners Guide to Bitcoins
- It is digital currency.
- not owned by a central government or a central bank
- it is decentralized which means it can be sent from any point in the world to another.
1) Before a Bitcoin can be purchased a user must install a virtual "wallet" onto a personal computer or mobile device. The wallet, which is similar to personal finance software, keeps track of your Bitcoin balance and all transactions.
2) To buy a Bitcoin, real money must either be deposited through an online payment company or transferred directly from bank account into an account on a third-party website that connects bitcoins buyers and sellers.
3) Once the funds are available, a buyer can place an order for a bitcoin, similar to trading stocks, through an exchange.
4) Bitcoins can also be purchased from third parties, which sends the coins directly into the virtual wallet.