Anyone who thinks about acquiring bitcoins should be aware that he lives in the digital world from then. His bitcoins are not in the wallet with a seat in his pocket, but they are in the wallet. Although this is also a wallet, but just a virtual (see glossary left). But even on the World Wide Web are criminals around, who do everything to disappear with an unattended wallet on Nevermore.

To buy bitcoins, interested parties need to register on Bitcoin marketplaces like bitcoin.de or MtGox.com. Then you get a wallet, where you keep the purchased Bitcoins. You can also sell them again. Important! Payments with bitcoins that have been authenticated can not be undone. Although this reduces costs, the word “certified” shows that this business does not go without a lot of time.

As new as the business is, blogger Henry Blodget calmly voiced a truth about bitcoins: “Prizes could literally go to 1,000 or 10,000 or a million per coin, and there would be no way to prove that those prices were silly . “Then the bubble does not burst.

On marketplaces like bitstamp.com bitcoins can be bought and exchanged into other currencies.

The digital currency has also arrived at some brokerage houses and Contractsfor Difference specialists. But beware! The Bitcoin world is full of reports that point to risks.

One of the Bitcoin start-ups, the company Alydian, recently filed for bankruptcy. Alydian offered “scrap” capabilities to the bitcoin industry. Thailand banned Bitcoin trading because effective oversight is not guaranteed. And – of course – it is teeming with concepts that not everyone can classify immediately.

Cryptographic key

Bitcoins are transferred electronically between two participants. Each transaction is provided with a digital signature. The persons prove the possession of the virtual coins by means of a cryptographic key. In the simplest case, this is nothing more than a somewhat more extensive password.

Wallet

the wallet in bitcoin trading. There are the bitcoins. If users buy new ones, they too end up in the wallet. For sales or transfers, of course, the digital wallet empties again. Users always make sure that their wallet is not left unattended for too long.

Mining

Bitcoins are dug out or “minted” in German. This allows the user to earn money. It is reminiscent of the gold rush atmosphere at the end of the 19th century on Klondike. A large mining pool can be found at BTC Guild. Prerequisite for mining is a powerful computer. Only in this way can valid blocks be found and thus new bitcoins produced. However, the more people deal with this phenomenon, the harder it is to find bitcoins. Another Handicap – Government agencies are already considering how to tax this business.

The birth of a bitcoin

When a network node finds the solution to a complicated mathematical problem, it generates a bitcoin. The system is programmed to try to provide a block of new coins to the digital world every ten minutes, on average. It is envisaged that the number of new bitcoins will halve every four years.

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