+) What is Bitcoin (BTC)?
Bitcoin or BTC is the first cryptocurrency in the world and lays the foundation for the development of the cryptocurrency market.
Bitcoin uses a peer-to-peer protocol for all transactions. And, that is why Bitcoin has eliminated the intermediary step in the process of making transactions.
This means that transactions will be made directly from the sender to the recipient with extremely low transaction fees (almost zero) without going through any intermediaries or organizations.
+) What makes Bitcoin different?
As mentioned above, Bitcoin is a digital currency so it has no shape. It is like all mainstream currencies like USD, Euro, VND ... but electronically encrypted.
What makes Bitcoin different is the following 6 factors:
1. Bitcoin is completely decentralized
Unlike paper money (Centralized), Bitcoin is not controlled by an organization like a bank or a government.
2. Bitcoin cannot be created but can be mined (also known as Bitcoin mining).
Listen to this sentence, do you think of something of a similar nature?
Exactly! It is Gold
3. Bitcoin cannot be counterfeited
4. Low transaction fee
5. The security of Bitcoin is very high
You can't hack into Bitcoin's network.
If you want to do that, you need to hack into all the nodes in the Bitcoin network at the same time.
And to do this is almost impossible!
6. You cannot get your money back once the transaction has occurred
Why is that? Because once the information has been written to the blockchain, no one can change or modify that information.
All the preeminent properties of Bitcoin are built on two new technologies: Blockchain technology and distributed ledger technology.
Blockchain technology is the financial breakthrough of the future. Blockchain is designed to resist data change.
Information in Blockchain cannot be changed and only added with the consent of all nodes in the system. This system is preserved even when a part of the system has problems.
And yet, Blockchain has the ability to transmit data without requiring intermediaries to confirm information.
It is useful that one person can share information for multiple units in the same network being built.
Bitcoin currency will show you its interesting with the concept of distributed ledger (Distributed Ledger Technology - DLT).
+) How many coins does Bitcoin have?
Next you need to know how many coins Bitcoin has and how to distinguish them.
That 21 million BTC is the total amount of Bitcoin created.
No one will ever change this number, not even the founder Satoshi Nakamoto.
Currently, the number of Bitcoin mined is around 17 million BTC, which means there are only 4 million BTC left to mine.
However, the actual number of Bitcoin circulated in the market will be less than 17 million due to a number of different reasons.
+) Unit of Bitcoin
Bitcoin, like other traditional currencies, has a Bitcoin unit.
Bitcoin's smallest unit is named after its founder, Satoshi. At a rate of 1 Bitcoin equals 100,000,000 Satoshi.
+) What is a Bitcoin wallet?
Like traditional currencies, you need a wallet when shopping. But for Bitcoin, as a cryptocurrency, must "contain" it like this here?
Each Bitcoin storage wallet will be treated as a Bitcoin account, just like your bank account or email.
Each wallet will include a public address (like the account number and owner name) called Bitcoin Address and a private key (like the password of an Internet Banking account) is a Private Key.
+) How to make a profit from Bitcoin
As I mentioned above, there are many people who choose Bitcoin as an investment channel like securities or Forex.
Now I will show you some ways to earn profits from Bitcoin.
Bitcoin Mining
bitcoin-mining
The first way to help you make money from Bitcoin is Bitcoin Mining.
In order for Bitcoin network transactions to work properly, it must be verified by so-called miners - miners.
Bitcoin mining or mining requires powerful configurations and a specialized Bitcoin miner called ASIC has been developed.
When you mine Bitcoin, the first consideration is how Bitcoin works, as well as the cost of Blockchain Technology.
Consensus guessing will tell you that!
Consensus algorithms are designed to ensure that transactions are valid and distributed across multiple participants to verify accuracy and create reimbursement of transactions.
There are four leading algorithms you need to know:
Proof of work PoW - Proof of Work
Proof of stake PoS - Proof of Stake
Delegated Proof of Stake
BFT - Byzantine Fault Tolerance consensus mechanism.
Bitcoin miners are similar to regular machines that have the specifications.
The unit of measurement to know how much bitcoins you dig is Hashrate. It is a measure of the computing power of equipment used to mine virtual currencies (Bitcoin Mining).
At the time of Bitcoin mining, it was necessary to solve a lot of problems, only then could it be earned. All previous transactions will be stored in the public area.
Miners gather the necessary hashes from different combinations, allowing access to secret keys and new transaction operations.
You should refer to some types of Bitcoin miners: Antminer S9, Antminer S7, AvalonMiner 761, WhatsMiner M3, AvalonMiner 821.
+) Buy Bitcoin for hoarding - HOLD
The second way I want to mention to you is to buy Bitcoin for hoarding (HOLD).
Hold is the most popular form of Bitcoin investment. And if you do not know about technical analysis, then perhaps you are suitable for this form. In essence, Hold Bitcoin is a form of buying at low prices and selling at higher prices for a long time.
+)Bitcoin investment
The last way that I would recommend to you is to invest in Bitcoin.
Trade Bitcoin is a form of making profit in a short period of time and usually hours or days.
This created a group of people called Trader. They use Bitcoin charting techniques. With the purpose of finding entry points at low prices and selling points at higher prices.
+)Summary
Hopefully today's article has brought useful knowledge for you. In the following articles, I will guide you to learn other cryptocurrencies and how to invest Bitcoin for newbies.
