What Is Bitcoin And How Does It Work?

Bitcoins are a decentralized form of the cryptocurrency. Meaning, they are not controlled by a financial organization or the government. As such, dissimilar a traditional bank account, you do not require a long list a paperwork such as an ID in order for you to build what's known as a Bitcoin wallet. The bitcoin wallet is that you will use to access your bitcoins and to send bitcoins to other individuals.

How to Setup an Account

You can get a Bitcoin wallet from a Bitcoin broker. When you open up a wallet by a certified broker, you are provided a bitcoin address which is a set of numbers and letters. Similarly to an account number for a bank account and a private key, this is a set of numbers and letters as well, which works as your password. You can also use smart bitcoin ledger wallet to secure your bitcoins.

How Does Bitcoin Work as an Anonymous Payment Processor

You can do three things with bitcoins, you can shop, send money anonymously to someone or use it as an investment. More and more merchants have been taking bitcoins as a form of payment. By using bitcoins instead of cash, you are actually making that purchase anonymously. The same thing goes for sending money, based on the fact that you do not have to submit a range of payment in order for you to build a Bitcoin anonymously, essentially you can send money to somebody else anonymously.

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