Bitcoins are created through mining process. Bitcoin mining is the process of adding records of a new transaction to the Blockchain. A Blockchain is an electronic ledger of digital records, events, or transactions that are cryptographically hashed, authenticated, and maintained through a “distributed” or “shared” network of participants using a group consensus protocol.
The Bitcoin system allows six blocks to be mined every hour. Because it gets more difficult over time, the system is expected to generate fewer Bitcoins over time.
At first you need to set up a wallet for storing your bitcoin – you will need one, regardless of your preferred method of purchase. This can be an online wallet (either part of the exchange platform, or via an independent provider), a desktop wallet, a mobile wallet or an offline one.
The wallet stores your secret key, the secret number is a 256-bit string that gives you access to your bitons. Your private key also allows you the freedom to move across marketplaces. Just because you bought bitcoins on a certain exchange, this does not mean that you have to stick to it; your private key ensures that you can always access your wallet, no matter what market you use.
Open an account
Visit the exchange you’ve picked out. Cryptocurrency exchange will buy and sell bitcoins on your behalf. Currently, there are hundreds of platforms with varying degrees of liquidity and security.
Cryptocurrency exchange will buy and sell bitcoins on your behalf. Currently, there are hundreds of companies with varying degrees of liquidity and security, while new ones continue to appear, while others are closing.
Each exchange has a different procedure for both setup and transaction, and should give you sufficient detail to be able to execute the purchase.
Choose a purchase method
There are platforms that will help you to find individuals near you who are willing to exchange bitcoin for cash and vice versa. Some will direct you to a bank branch near you that will allow you to make a cash deposit and receive bitcoin a few hours later. And ATMs that will send bitcoin to your wallet in exchange for cash. One thing to bear in mind though, is that there have been several reports of quite high transaction charges when using the machines. So, if you do want to get your Bitcoin from a hole in the wall, be sure to check what it will cost before you begin.