How to make money with bitcoins
What is a bitcoin?
Bitcoin (BTC or XBT) is a digital asset and a payment system invented by Satoshi Nakamoto. Nakamoto introduced the idea on 31 October 2008 to a cryptography mailing list, and released it as open-source software in 2009. There is no uniform convention for bitcoin capitalization. Some sources use Bitcoin, capitalized, to refer to the technology and network and bitcoin, lowercase, to refer to the unit of account.
Bitcoin has been here for a while. It is a virtual currency, totally disconnected from traditional banking channels, which since its launch on January 3, 2009, has spread globally as an alternative to traditional payment systems. To be precise, it is a “crypto-currency”: being virtual, its operation is based on a complex set of calculations that have to do with the encryption, so as to ensure its safety. A BitCoin, therefore, is not made of paper or some metal, but as the name suggests, it is made of bits, numbers and mathematical operations.
Unlike most traditional currencies, Bitcoin does not use a central body: it uses a distributed database between network nodes that keep track of the transactions, and uses encryption to manage the functional aspects such as the new currency generation and the assignment of bitcoin ownership.
The Bitcoin network allows to possess and transfer coins anonymously; the data referring to the use and ownership of bitcoins can be stored on one or more personal computers in the form of a “digital wallet”, or by third parties platforms that act similarly to a bank. In any case, the bitcoins can be transferred throughout the Internet to anyone with a “bitcoin address”. The bitcoin peer-to-peer network structure and the lack of a central authority makes it impossible to any authorities, governmental or not, to block the transfer and the use of bitcoins without the possession of the appropriate key or as a consequence of devaluation due to the placing of new currency.
The economy based on bitcoin is still small, but there is already a market where bitcoins are exchanged for goods and services such as, for example, used automobiles or software development contracts. The bitcoins are accepted for both online services and for tangible assets.
How much is a bitcoin worth?
Unlike all fiat currencies, the main quality of bitcoin is that no one can control its value because of the decentralized nature of the currency creation method. The value of a bitcoin may range from 300 to 700 euro.
How is bitcoin created?
Bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network. This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network. Only 21 million bitcoins can ever be created by miners. However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’, after the founder of bitcoin).
How can you accumulate bitcoins and how can you make money with bitcoin?
First you have to create a bitcoin wallet. We do not recommend installing it on your personal computer because in case of failure there is the risk of losing the entire content of the wallet. The most secure platform is Blockchain. The bitcoins are protected by multiple security levels, which are activated during the registration process. Once registered you are assigned a wallet ID and a bitcoin ADDRESS, where the BTC will be stored. The wallet is very easy to use and keeps a record of all incoming and outgoing transactions.
The following are the alternative and the easiest methods to collect bitcoins for free:
- The faucets, or web sites that give away small amounts of bitcoins (Santoshi) for free each time you access the site, solve a simple captcha, turn a wheel, push a button or do some other similar tasks.
Here is a list of safe faucets that will not make you lose your time, but will give you safe returns:
- “btc for clicks” or “ads for btc” services
But how can you use bitcoins and how can you make money with bitcoins?
Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally. There are more and more websites that accept bitcoin payments (ex. Amazon).
There are two ways to make money with bitcoin:
- trade bitcoins – there are several online trading platforms (binary options) that offer the possibility to trade bitcoins, one of these platforms is the IQ Option, a legal and trusted binary options broker;
- sell bitcoins, taking advantage of the exchange rate.
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