The Basics Of Bitcoins

Bitcoins are a type of electric money that cannot be put in the pocket. You can’t go in the bank to withdraw bitcoins either because they only exist in the internet cloud. So how do you use them?

Bitcoin address

If you have bitcoins, you will need a bitcoin address. Sad thing is that they are so unfriendly to the eye with their long alphanumerical characters that are generated at random. Each bitcoin has a private digital key which ensures that only the owner can access it so no one can send bitcoins from another person’s bitcoin address. You must keep the private key to yourself otherwise; your bitcoins will be stolen. The private key is another long string.

Bitcoin wallet

The long strings are hard to remember so it is not really the kind you would want to store in your head. Luckily, there is the bitcoin wallet that are meant to keep track of your addresses so you will not need to write them down in a list. You also need the bitcoin wallet because you need to tell other bitcoin networks when you send bitcoins. For this reason you require a software to help. The status of the whole bitcoin network is stored in a ledger called blockchain. Everyone shares on blockchain so whatever transaction was made, its location and time is all captured on blockchain.

You bitcoin wallet communicated to the ledger to update the status of your bitcoin transactions whenever you send bitcoins to someone. The other bitcoin software then confirms that the transaction happened and it is updated on the ledger.

There are a number of bitcoin addresses that you can use to transfer bitcoins to bitcoins, so it’s upon you to decide which one suits your needs best or which one has the best rates.