Guide for beginners regarding bitcoin
In this Bitcoin guide for beginners, we are trying to explain about bitcoin and how we can use it.
Q. What is the mechanism of bitcoin?
It is a network of peer-to-peer, a set of protocols (standards for interoperability), client interfaces (called wallets). This includes currency that operates on top of all of those technologies. The system of bitcoin allows you to send or receive a bitcoin fraction (the currency unit) to any other person of your choice, residing worldwide anywhere in the world. The bitcoin system operates on the Internet without the need for banks or bank accounts and allows people to send money like they send email.
In the beginning if you want to start using bitcoin, you need a bitcoin client, or “wallet” application. (these wallets are not only online wallets, but they are offline wallets too. these are called Bitcoin Paper Wallets) This client or wallet application allows you to use the network of bitcoin. It is just like a web browser that allows you to navigate or use the websites. There are several makers of bitcoin wallet and types of wallets. These are available for desktop and mobile operating systems and also available as web applications. If you are receiving bitcoin, you need an address of bitcoin. This alpha numeric address is a bit like an email address or bank account number.
Giving Bitcoin Address to Someone – Bitcoin Guide
If you are giving your bitcoin address to someone, then S/he can can send you bitcoins (Satoshis) money. He can’t do anything more than this. He can not identify you or the place where you are. Therefore, you can freely share your bitcoin addresses with anyone without fear of security risk. There is another benefit of bitcoin wallet. It can create any number of bitcoin addresses for you, even one per transaction, so that you may record your transactions separately. Just generate the addresses and give those addresses to any person you are willing to get you bitcoin.
Tip: These addresses are created by your own wallet. It does not need to be registered with anyone. No need to linked your identity or email address.
These addresses can be used to receive bitcoins immediately from any person sending you money. This wallet also allows you to send bitcoin to another bitcoin address. If your friend or family member has bitcoin address, and you want to send them money then you can ask to show barcode (QR code) or address line. This barcode (QR Code) can easily scan through mobile camera. (if you have mobile wallet).
Receive Bitcoins through Address – Bitcoin Guide
This bitcoin guide will tell you, once you have an address to send bitcoins, you can then use your wallet to create a “transaction”, which is like writing a check. You tell your wallet which address should receive the bitcoin (your friend’s address) and how much bitcoin you want to send. You can send a whole bitcoin (about $660 at this time), but that’s usually too much! Instead, you can send a small fraction of a bitcoin, for example 0.001, which is 50 cents.
When you send bitcoin, your wallet will also calculate a small fee that is paid to the bitcoin network in order to process your transaction, usually half a cent ($0.005 US dollars). Hit send, and your friend will see their wallet receiving 50 cents, in a matter of seconds. Within 10 minutes the transaction will “confirm” (like a check “clearing” in your bank) and your friend can then spend it.
Bitcoin transactions are “push” transactions, meaning that you are always in control of your wallet. No one can “deduct” bitcoin from your wallet, you have to explicitly sign a transaction to send it out. This makes bitcoin much safer than credit cards when shopping online, as your transaction only authorizes a single payment and never reveals your private identity.
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