CryptoZiller Bitcoin Dashboard

BITCOIN

What is Bitcoin?

Bitcoin is a cryptocurrency and global payment system. It is the first decentralized digital currency, as the network works without a central bank or single authority. The network is peer-to-peer and the exchange take place between users precisely, without any mediator. These transactions are verified by the network nodes over the use of cryptography and registered in a unique and public distributed ledger also known as blockchain.

Who invented Bitcoin?

No one knows when Bitcoin was invented but, it is known that it was published in 2009 as open-source software by Satoshi Nakamoto, the inventor and developer that left the Bitcoin project in late 2010 without exposing his true identity. Since then the community has grown exponentially with numerous known and unknown developers working on the project.

Who controls the Bitcoin network?

The Bitcoin network is controlled by all Bitcoin users around the world that are free to choose between different versions of software developed by the developers of Bitcoin and therefore a change in the protocol can't be force even by the developers themselves. However, in order to be compatible, all users have to use software that complies with the same rules, for the reason that Bitcoin can only perform in a correct way with a complete consensus among all users.

What is the process for creating Bitcoins?

Bitcoins are created by a decentralized and competitive process that is called mining.


What actually happens is that individuals or groups of people which have the necessary hardware, suitable for solving complex computational problems, provide to the network their services for keeping the network secure and processing transactions in exchange for new generated bitcoins. These services always come to a cost, and that is, the electricity consumed for running all the specialised hardware involved in the mining process.


Bitcoin mining is a competitive process due to the fact that Bitcoin protocol is designed to generate new Bitcoins at a fix rate and the total supply of Bitcoins ever created will stop at 21 million.

How to mine Bitcoin?

There are two ways to mine bitcoin and that is the traditional way, by buying specialised equipment like ASIC miners or, the easier but riskier way like cloud mining. In the early stages of Bitcoin you could have mined with only a desktop computer or a laptop but now, because the difficulty of mining has exponentially increased it is impractical to do so taking into consideration that the energy cost would be much higher than the mining return.

  
While with specialised equipment some of you might have inconveniences like the loud sound of the hardware, having to configure by yourself the mining software, monitor the mining process and many other issues that might occur along the way, with cloud mining it's more like "plug and play" mining due to the fact  that somebody else owns the equipment and deal with all the issues previously stated.

 
Cloud mining it's much riskier because you need to trust a third party in order to get paid and all the time exist the possibility for the cloud mining service company that you have chosen to not be able to fulfill their payment obligation, and therefore to go bankrupt. Before you start your venture in both or one of the two mining ways already described, please conduct your own due diligence.

How to buy, sell and exchange Bitcoin?

If you are not mining Bitcoins, there is another alternative in owning them and that is by buying directly with cash from a Bitcoin ATM if you can find one in your vicinity, by buying directly from other individuals that own them, or by finding an already established cryptocurrency market in the form of online platforms and exchanges, such as Coinbase, Coinmama, Binance and many others.

If you ever take the decision to buy Bitcoins, be sure to always document yourself about the place or marketplace where you are about to do so, and all the commision and exchange rates that are involved in the exchange process.

How can you enter on this market with Bitcoin price so high?

Some of you might not know, but Bitcoin is divisible to the eighth decimal place, the smallest subdivision being called a Satoshi which is equal to 0.00000001 Bitcoin. Just for the exercise purpose, if one Bitcoin would ever worth one million dollars, a Satoshi would be worth one cent. So, to answer the question, by buying small subdivisions of Bitcoin you can enter this market at all times. 

What is a cryptocurrency wallet? 

A cryptocurrency wallet is a software that stores all the necessary information in order for you to perform send and receive transactions with any type of cryptocurrency. As Bitcoin was designed, the Bitcoins are not stored in the wallet but rather they are stored on the blockchain. A wallet grants you access to unique private keys that gives you the possibility to write in the blockchain and therefore access to your cryptocurrency. 


Be very careful how you secure these private keys, if you lose them or they are compromised, you lose the access to your wallet and all the cryptocurrency associated with it.  

How to best secure your wallet private keys?

First of all you need to encrypt your wallet with a strong password that you will never forget and please try use at least 16 characters and a combination of both capital and small letters combined with numbers and punctuation marks. After this first step you should backup your entire wallet which will protect you from any computer failures or human mistakes that might occur over time. It is advisable to store your backed up wallet and private keys in different secured locations and on media like USB flash sticks, external hard drives, solid state drives and any other media that you consider as safe. 

 

Another common way to secure your wallet and private keys is thru hardware wallets like Ledger and Trezor 

 
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