{"id":584,"date":"2019-08-14T10:56:10","date_gmt":"2019-08-14T10:56:10","guid":{"rendered":"http:\/\/167.71.175.137\/clue\/?p=584"},"modified":"2025-11-17T13:54:13","modified_gmt":"2025-11-17T13:54:13","slug":"what-is-bitcoin","status":"publish","type":"post","link":"https:\/\/coindataflow.com\/clue\/what-is-bitcoin","title":{"rendered":"What Is Bitcoin &#8211; 7 Advantages of Bitcoin Network"},"content":{"rendered":"\n<p>Bitcoin &#8211; is a decentralized digital currency. It is not subordinate to the bank or the state. Means send and receive without intermediaries from one user to another. Each transaction is recorded in the blockchain registry, so money cannot be used twice or canceled a deal.<\/p>\n\n\n\n<!--more-->\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_11 counter-hierarchy counter-decimal ez-toc-transparent\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Who-created-Bitcoin\" title=\"Who created Bitcoin?\">Who created Bitcoin?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#What-about-Bitcoin,-how-does-it-work\" title=\"What about Bitcoin, how does it work?\">What about Bitcoin, how does it work?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#The-Bitcoin-is-decentralized\" title=\"The Bitcoin is decentralized\">The Bitcoin is decentralized<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#The-Bitcoin-is-digital\" title=\"The Bitcoin is digital\">The Bitcoin is digital<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#The-anonymity-of-Bitcoin-users\" title=\"The anonymity of Bitcoin users\">The anonymity of Bitcoin users<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Transactions-%E2%80%93-private-keys\" title=\"Transactions &#8211; private keys\">Transactions &#8211; private keys<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#What-is-Bitcoin-mining\" title=\"What is Bitcoin mining?\">What is Bitcoin mining?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Bitcoin-Metrics\" title=\"Bitcoin Metrics:\">Bitcoin Metrics:<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Important-Bitcoin-Charts\" title=\"Important Bitcoin Charts:\">Important Bitcoin Charts:<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#How-can-I-store-my-Bitcoins\" title=\"How can I store my Bitcoins?\">How can I store my Bitcoins?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#How-do-I-buy-and-sell-stuff-things-with-Bitcoins\" title=\"How do I buy and sell stuff things with Bitcoins?\">How do I buy and sell stuff things with Bitcoins?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Can-Bitcoin-be-Converted-to-Cash\" title=\"Can Bitcoin be Converted to Cash?\">Can Bitcoin be Converted to Cash?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#How-do-I-purchase-a-Bitcoin\" title=\"How do I purchase a Bitcoin?\">How do I purchase a Bitcoin?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Bitcoin-Compared-to-Banks-and-Traditional-Currencies\" title=\"Bitcoin Compared to Banks and Traditional Currencies\">Bitcoin Compared to Banks and Traditional Currencies<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Is-Bitcoin-a-pyramid-scheme\" title=\"Is Bitcoin a pyramid scheme?\">Is Bitcoin a pyramid scheme?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Is-Bitcoin-a-bubble\" title=\"Is Bitcoin a bubble?\">Is Bitcoin a bubble?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#What-are-the-disadvantages-of-Bitcoin\" title=\"What are the disadvantages of Bitcoin?\">What are the disadvantages of Bitcoin?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Legal-questions\" title=\"Legal questions\">Legal questions<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Level-of-recognition\" title=\"Level of recognition\">Level of recognition<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Lost-keys\" title=\"Lost keys\">Lost keys<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Volatility\" title=\"Volatility\">Volatility<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Continuous-development\" title=\"Continuous development\">Continuous development<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#What-are-the-advantages-of-Bitcoin\" title=\"What are the advantages of Bitcoin?\">What are the advantages of Bitcoin?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Freedom\" title=\"Freedom\">Freedom<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#High-portability\" title=\"High portability\">High portability<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Choose-your-commission\" title=\"Choose your commission\">Choose your commission<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#No-PCI\" title=\"No PCI\">No PCI<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Safety-and-Control\" title=\"Safety and Control:\">Safety and Control:<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Transparent-and-neutral\" title=\"Transparent and neutral\">Transparent and neutral<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#It-can%E2%80%99t-be-counterfeited\" title=\"It can&#8217;t be counterfeited\">It can&#8217;t be counterfeited<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Why-is-Bitcoin-such-big-news\" title=\"Why is Bitcoin such big news?\">Why is Bitcoin such big news?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Future-of-Bitcoin\" title=\"Future of Bitcoin\">Future of Bitcoin<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/coindataflow.com\/clue\/what-is-bitcoin#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<div class=\"wp-block-image naka\"><figure class=\"alignright is-resized\"><img src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-satoshi-nakamoto.png\" alt=\"\" class=\"wp-image-651\" width=\"307\" height=\"249\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-satoshi-nakamoto.png 898w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-satoshi-nakamoto-300x244.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-satoshi-nakamoto-768x623.png 768w\" sizes=\"(max-width: 307px) 100vw, 307px\" \/><figcaption> Satoshi Nakamoto<\/figcaption><\/figure><\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Who-created-Bitcoin\"><\/span>Who created Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An anonymous developer who first published the protocol of the new cryptocurrency on the Internet called himself Satoshi Nakamoto. The creator of Bitcoin proposed the first Bitcoin wallet and generated the first block in 2008. The loss of electricity calculated the cost of one coin. Nobody knows what is bitcoin at that time.<\/p>\n\n\n\n<p>The developer does not disclose his identity. In 2010, he transferred the project to others. The Bitcoin community is inclined to believe that the founder is English-speaking \u2014 currency descriptions and instructions in English evidence the opinion. <\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-about-Bitcoin,-how-does-it-work\"><\/span>What about Bitcoin, how does it work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The digital currency as Bitcoin or Litecoin or any other is a virtual link to a mathematical algorithm. You can buy or sell currency creating unique signed transactions. A worth set of people own coins.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"900\" height=\"563\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/how-bitcoin-work.png\" alt=\"\" class=\"wp-image-659\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/how-bitcoin-work.png 900w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/how-bitcoin-work-300x188.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/how-bitcoin-work-768x480.png 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption>How bitcoin work<\/figcaption><\/figure>\n\n\n\n<p>Getting any amount of crypto is like file sharing. A transaction is an exchange of digital signatures between electronic addresses. Bitcoin does not have a physical form. The circumstance must be taken into account since its value is the inability to fake a deal. Every investor wants to know that he will not be deceived when buying assets, and also that the state will not take most of it in the form of taxes.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"The-Bitcoin-is-decentralized\"><\/span>The Bitcoin is decentralized<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-is-decentralized.png\" alt=\"\" class=\"wp-image-663\" width=\"331\" height=\"331\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-is-decentralized.png 512w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-is-decentralized-150x150.png 150w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-is-decentralized-300x300.png 300w\" sizes=\"(max-width: 331px) 100vw, 331px\" \/><figcaption> The Bitcoin is decentralized <\/figcaption><\/figure><\/div>\n\n\n\n<p>No one regulates your account, other users and the entire <a href=\"https:\/\/coindataflow.com\/en\/currency\/bitcoin\" class=\"rank-math-link\">Bitcoin market<\/a> as a whole. Money is stored at private addresses. Each transfer is unique. And the transaction will take place only between two participants, without intermediaries and regulators. Also, no one influences price, except for a free market mechanism.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"The-Bitcoin-is-digital\"><\/span>The Bitcoin is digital<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Digital keys for the transaction are generated when entering a password. The transaction is processed and spend in a few minutes, regardless of how far the seller and the buyer are from each other.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"The-anonymity-of-Bitcoin-users\"><\/span>The anonymity of Bitcoin users<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One of the best characteristics of digital currency is its anonymity. In the transaction chain, you can trace the relationship of wallet addresses with sent coins. But the numeric address has nothing to do with the real name of the person, sending money.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Transactions-%E2%80%93-private-keys\"><\/span>Transactions &#8211; private keys<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Each sale requires a matching e-wallet address and a private key. A private key is a password or digital signature. After it has been entered in the appropriate field, the coins are sent to another wallet. Properties of operations with electronic currency:<\/p>\n\n\n\n<ul><li>The deal cannot be canceled. Before you start trading, you need to carefully analyze the buyer or service through which it is planned to work.<\/li><li>Hacking or picking up the private key that you own is almost impossible. To prevent attackers from finding your secret key, set strong passwords on hardware wallets, update the antivirus program on software in time. In this case, investing and storing any number of coins will be safe. <\/li><\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-Bitcoin-mining\"><\/span>What is Bitcoin mining?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"1024\" height=\"682\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-mining-1024x682.png\" alt=\"\" class=\"wp-image-693\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-mining.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-mining-300x200.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-mining-768x512.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption> Bitcoin mining<\/figcaption><\/figure>\n\n\n\n<p>Mining is a new Bitcoins making process. In simple words, to mine new coins, you need to solve math problems. The algorithm is configured so that over time, the tasks become more and more complicated. At the same time, the number of Bitcoins in circulation that can ever be mined is limited to 21 million. The safety precaution is done to prevent inflation.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin-Metrics\"><\/span>Bitcoin Metrics:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"1024\" height=\"284\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-metrics-1024x284.png\" alt=\"\" class=\"wp-image-710\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-metrics-1024x284.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-metrics-300x83.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-metrics-768x213.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-metrics.png 1204w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Bitcoin metrics (aug 2019)<\/figcaption><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Important-Bitcoin-Charts\"><\/span>Important Bitcoin Charts:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-gallery has-nested-images columns-1 is-cropped aligncenter\">\n<figure class=\"wp-block-image size-large\"><img width=\"800\" height=\"427\" data-id=\"705\"  src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-price-chart.png\" alt=\"\" class=\"wp-image-705\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-price-chart.png 800w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-price-chart-300x160.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-price-chart-768x410.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption> Bitcoin Price History Chart<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"800\" height=\"452\" data-id=\"706\"  src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-dominance-chart.png\" alt=\"\" class=\"wp-image-706\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-dominance-chart.png 800w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-dominance-chart-300x170.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-dominance-chart-768x434.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><figcaption>Bitcoin Percentage of Total Market Capitalization (Bitcoin Dominance)<\/figcaption><\/figure>\n<\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-can-I-store-my-Bitcoins\"><\/span>How can I store my Bitcoins?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The owner can store his coins in several ways:<\/p>\n\n\n\n<div class=\"wp-block-image typewallets\"><figure class=\"alignright is-resized\"><img src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-wallet-types.png\" alt=\"\" class=\"wp-image-673\" width=\"315\" height=\"315\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-wallet-types.png 760w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-wallet-types-150x150.png 150w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-wallet-types-300x300.png 300w\" sizes=\"(max-width: 315px) 100vw, 315px\" \/><figcaption>Types of wallets<\/figcaption><\/figure><\/div>\n\n\n\n<ul><li>Write down the digital private key on paper. When it becomes necessary to make a deal, you will have to use a unique exchanger like Coinbase. To choose the most effective service, you need to study the reviews on the forum.<\/li><li>Coins can be encrypted in a hardware wallet. Different brands make them. These wallets are like flash memory or a credit card with a button. The degree of convenience and reliability are directly proportional to the price.<\/li><li>Software wallets for storing coins are computer programs. They can be installed on a PC or smartphone. The former is more reliable. The latter has a simple interface and fewer functions. <\/li><li>Private services on the Internet also offer to keep your finances. There is the easiest and at the same time, the most unreliable option. Since your secret key is known to a third party, nothing will prevent the owners of the service from appropriating your money. <\/li><\/ul>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>To learn more about wallets you can check our <a href=\"\/clue\/best-bitcoin-wallets\">Bitcoin and cryptocurrency wallets guide<\/a><\/p><\/blockquote><\/figure>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-do-I-buy-and-sell-stuff-things-with-Bitcoins\"><\/span>How do I buy and sell stuff things with Bitcoins?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The network allows you to buy any items and pay bills without using the physical currency. The transaction process takes place in several stages:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"900\" height=\"419\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-buy-stuff.png\" alt=\"\" class=\"wp-image-716\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-buy-stuff.png 900w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-buy-stuff-300x140.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-buy-stuff-768x358.png 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/figure>\n\n\n\n<ol><li>The buyer sends the seller a signed transaction in exchange for the goods. A cipher consists of a sequence of characters and numbers. The information on the current transaction, the number of coins and the address of the recipient&#8217;s wallet are encoded in a signed deal.<\/li><li>The seller of the goods scans the received secret key using a web application or computer program. That is, his wallet recognizes the received cipher. <\/li><li> All other participants in the blockchain algorithm can track the transaction. <\/li><li> The algorithm will confirm the deal in a few minutes. <\/li><\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Can-Bitcoin-be-Converted-to-Cash\"><\/span>Can Bitcoin be Converted to Cash?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are official and unofficial ways to get cash in exchange for cryptocurrency. Some private individuals build their businesses on this. But in this case, you need to be careful not to give the savings to fraudsters.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"1024\" height=\"576\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-exchange-1024x576.png\" alt=\"\" class=\"wp-image-718\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-exchange-1024x576.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-exchange-300x169.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-exchange-768x432.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-exchange.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Specialized exchanges and exchangers are a more reliable option. Not all exchanges trade in fiat currencies. You will like <a href=\"\/clue\/goto\/kucoin\">Kucoin<\/a>. The process of buying dollars, euros, yuan or rubles consists of several stages:<\/p>\n\n\n\n<ul><li>You need to register on the exchange;<\/li><li>Choosing the right cryptocurrency and the number of coins in your wallet;<\/li><li>In the &#8220;Bidding&#8221; section, you need to select the currency pair that interests you;<\/li><li>Set your price;<\/li><li>Another bidder arranged by the price will confirm your transaction;<\/li><li>In the &#8220;Finance&#8221; section, send the received fiat currency to your bank card.<\/li><\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-do-I-purchase-a-Bitcoin\"><\/span>How do I purchase a Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To enter the community of cryptocurrency owners, you need to purchase coins for fiat money on the exchange or in specialized ATMs. Fiat is ordinary paper money, such as dollars or euros. It is not necessary to deposit cash, and credit card payment is suitable.<\/p>\n\n\n\n<p>Popular exchanges that trade Bitcoins for fiat money:<\/p>\n\n\n\n<ul class=\"listexch\"><li><a href=\"https:\/\/www.okx.com\/join\/1940857\" rel=\"nofollow noopener\" target=\"_blank\">Okex<\/a><\/li><li><a href=\"https:\/\/partner.bybit.com\/b\/coindataflow\" rel=\"nofollow noopener\" target=\"_blank\">Bybit<\/a><\/li><li><a href=\"https:\/\/accounts.binance.com\/en\/register?ref=49163033\" rel=\"nofollow noopener\" target=\"_blank\">Binance<\/a><\/li><\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin-Compared-to-Banks-and-Traditional-Currencies\"><\/span>Bitcoin Compared to Banks and Traditional Currencies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main difference of any cryptocurrency is the lack of central control. Markets of cryptocurrencies are developing spontaneously. All transactions are free of state or bank fees. There is no inflation at all.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Is-Bitcoin-a-pyramid-scheme\"><\/span>Is Bitcoin a pyramid scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image piramid\"><figure class=\"alignright is-resized\"><img src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-piramid.png\" alt=\"\" class=\"wp-image-720\" width=\"354\" height=\"134\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-piramid.png 451w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-piramid-300x114.png 300w\" sizes=\"(max-width: 354px) 100vw, 354px\" \/><\/figure><\/div>\n\n\n\n<p>The participants in the financial pyramids receive income after the introduction of new participants into the scheme. Bitcoin owners do not receive any profit if they do not play at the auction or invest their currency. Moreover, due to the limited amount of money, every year, it becomes more valuable.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Is-Bitcoin-a-bubble\"><\/span>Is Bitcoin a bubble?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some researchers, including Nobel laureate Robert Schiller, suggest that interest in cryptocurrencies is artificially inflated. However, after the crash of the Chinese exchange <a href=\"https:\/\/en.wikipedia.org\/wiki\/Mt._Gox\" target=\"_blank\" rel=\"noopener\">Mt.Gox<\/a>, the cue ball regained its position in just three years.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-are-the-disadvantages-of-Bitcoin\"><\/span>What are the disadvantages of Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Legal-questions\"><\/span>Legal questions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Some countries have chosen to ban the use of cryptocurrencies. Others, on the contrary, legalized Bitcoins to be able to levy taxes on them as well as on any other assets. But most states ignore the cryptocurrency settlement system.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"1024\" height=\"722\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-map-legalize-1024x722.png\" alt=\"\" class=\"wp-image-730\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-map-legalize-1024x722.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-map-legalize-300x211.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-map-legalize-768x541.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-map-legalize.png 1165w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>  Legality of bitcoin by country<\/figcaption><\/figure>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Level-of-recognition\"><\/span>Level of recognition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The first to recognize the solvency of cryptocurrencies on the black market. In most countries, you still cannot pay with Bitcoins in a store. It is unlikely that digital coins can displace fiat money from circulation entirely.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Lost-keys\"><\/span>Lost keys<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A unique private key is an analog of the password from your wallet. If you have lost or forgotten your password, no one will be able to regain access to your coins. Therefore, you must use the private key backup function.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Volatility\"><\/span>Volatility<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is impossible to predict how much <a href=\"https:\/\/www.mexc.com\/exchange\/BTC_USDT\" target=\"_blank\" rel=\"noopener\">Bitcoin <\/a>will cost tomorrow or in a year. Throughout its history, one coin has a value equal to the energy spent or several thousand dollars.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img width=\"1024\" height=\"589\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-volatility-chart-1024x589.png\" alt=\"\" class=\"wp-image-728\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-volatility-chart-1024x589.png 1024w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-volatility-chart-300x172.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-volatility-chart-768x441.png 768w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-volatility-chart.png 1209w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption> Bitcoin Volatility vs Other Assets  (1 Year Volatility)<br> (source: charts.woobull.com)<\/figcaption><\/figure>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Continuous-development\"><\/span>Continuous development<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is difficult to predict the event of any cryptocurrency. The situation will fundamentally change if the state or the central bank wants to take control of Bitcoins. Also, a new round of changes will occur when it becomes impossible to mine new coins.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"752\" height=\"291\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-gihub-activity.png\" alt=\"\" class=\"wp-image-731\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-gihub-activity.png 752w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-gihub-activity-300x116.png 300w\" sizes=\"(max-width: 752px) 100vw, 752px\" \/><figcaption>Screenshot: Bitcoin <a href=\"https:\/\/github.com\/bitcoin\/bitcoin\/graphs\/contributors\" target=\"_blank\" rel=\"noopener\">github <\/a>activity<\/figcaption><\/figure><\/div>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-are-the-advantages-of-Bitcoin\"><\/span>What are the advantages of Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Freedom\"><\/span>Freedom<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>More and more online sites accept payment in Bitcoins. Given that the bank cannot control you, this is beneficial. Also, no one can track that it was you who made the purchase. The real name has nothing to do with the digital wallet.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"703\" height=\"392\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-compare-bank.png\" alt=\"\" class=\"wp-image-734\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-compare-bank.png 703w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-compare-bank-300x167.png 300w\" sizes=\"(max-width: 703px) 100vw, 703px\" \/><figcaption> Banking middleman in Money Transfer<\/figcaption><\/figure><\/div>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"High-portability\"><\/span>High portability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You do not need to carry thick wads of cash. Any amount of coins is placed on a hardware wallet the size of a USB flash drive. To complete the transaction, enter the symbol key in the required field.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Choose-your-commission\"><\/span>Choose your commission<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Most digital wallets allow you to configure and modify this option. If transaction speed is essential to you, increase the commission. If speed is not crucial, you can save on it.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img width=\"780\" height=\"346\" src=\"\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-payout-comparison.png\" alt=\"\" class=\"wp-image-736\" srcset=\"https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-payout-comparison.png 780w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-payout-comparison-300x133.png 300w, https:\/\/coindataflow.com\/clue\/wp-content\/uploads\/2019\/08\/bitcoin-payout-comparison-768x341.png 768w\" sizes=\"(max-width: 780px) 100vw, 780px\" \/><\/figure><\/div>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"No-PCI\"><\/span>No PCI<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>PCI is the data security standard of the payment card industry. When using a regular bank card, its holders provide the bank with their data. Thus, there is a risk that someone else will intercept this information. Also, cardholders are forced to pay bank fees. When using Bitcoins, all these inconveniences are not.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Safety-and-Control\"><\/span>Safety and Control:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>\u2022 No matter what type of wallet you use, back up your private key.<\/p>\n\n\n\n<p>\u2022 Store most of your coins in a cold store (hardware wallet without internet access or paper).<\/p>\n\n\n\n<p>\u2022 Create a secure password for your desktop and mobile wallet.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"Transparent-and-neutral\"><\/span>Transparent and neutral<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>All Bitcoin coins users have access to a standard transaction log, or rather, to their addresses. To remain completely anonymous, you need to change the address after each transaction. To prevent other users from tracking your balance, open several digital wallets for different purchases.<\/p>\n\n\n\n<h3><span class=\"ez-toc-section\" id=\"It-can%E2%80%99t-be-counterfeited\"><\/span>It can&#8217;t be counterfeited<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Cryptocurrency wallets use private keys to complete the BTC transaction, which is generated in conjunction with the address at which the coins are placed. It is impossible to fake such a key. Thanks to the recording of each transaction in the Blockchain BTC algorithm, no one can use the same coins twice.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Why-is-Bitcoin-such-big-news\"><\/span>Why is Bitcoin such big news?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Digital currency is ideal for international transactions. Transactions are fast and free of charge. When you purchase costly items, you remain anonymous. Many investors regard Bitcoins as an additional tool for trading on exchanges.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Future-of-Bitcoin\"><\/span>Future of Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Japan, Belarus, United Kingdom, United States, Australia have already legalized Bitcoin. See the full list <a href=\"https:\/\/en.wikipedia.org\/wiki\/Legality_of_bitcoin_by_country_or_territory#East_Asia\" target=\"_blank\" rel=\"noopener\">here<\/a>. Their policy means that the currency and transactions with its use will be taxed. In the future, other countries may also want to take control of digital currencies.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bitcoins and other altcoins are now the perfect means of payment on the Internet. They can also be included in the investment portfolio of a stock player. The main thing is to choose a reliable wallet for storing coins and not lose your private key.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin &#8211; is a decentralized digital currency. It is not subordinate to the bank or the state. Means send and receive without intermediaries from one user to another. Each transaction is recorded in the blockchain registry, so money cannot be used twice or canceled a deal.<\/p>\n","protected":false},"author":2,"featured_media":614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[4],"tags":[],"modified_by":"Alex","_links":{"self":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/584"}],"collection":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/comments?post=584"}],"version-history":[{"count":74,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/584\/revisions"}],"predecessor-version":[{"id":2710,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/posts\/584\/revisions\/2710"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/media\/614"}],"wp:attachment":[{"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/media?parent=584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/categories?post=584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coindataflow.com\/clue\/wp-json\/wp\/v2\/tags?post=584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}