What is bitcoin cryptocurrency? In simple words for dummies, the principle of Bitcoin, ways of earning, about Bitcoin exchange rates against the dollar and ruble

25.03.2017
Posted by: Ganesa

Bitcon cryptocurrency

What is Bitcoin cryptocurrency, I say in simple words about the trend of recent years and what effect the BTC has formed on the entire financial market of the world. Bitcoin cryptographic technology has allowed to create a currency that does not obey anyone, and therefore is independent of the laws, the mood of politicians and the situations in the markets: stock and sales of goods. I answer important questions: What is a cryptocurrency? How to earn bitcoin? How does bitcoin work?

Behind Bitcoin, other currencies appeared that differ in algorithms, methods and tools for mining, emissions, rates and even quantity. Today I talk in detail about “cryptocurrency gold” and talk about mining methods, where to store the coin, how to work on the stock exchange and the principles of replenishment from different sites.

What is bitcoin in simple words?

Bitcoin is a digital coin that has become even easier to buy due to the fall in the exchange rate. Virtual money is distinguished by its decentralized nature, which means that nobody controls it. It is often said that the PTS is a mathematical code - a set of numbers and signs that are responsible for a place in a certain environment - the blockchain. The most popular way to get a coin Bitcoin mining remains, and I wrote about the main types in my material.

Bitcoin cryptocurrency

Bitcoin is a virtual currency that exists decentralized and does not have a single issuing center that would control it, and the size of the issue of bitcoins is 21 million.

Bitcoin history cryptocurrency

Just a month ago, the whole world celebrated 10 years of white paper coins. Due to the fact that the author of the paper is the latent genius Satoshi Nakamoto, they are considered the elementary unit of the PTS (penny), and there are special calculators that allow you to calculate how many kopecks in a certain part of the coin. Speaking about the main points of development of the coin, I will highlight:

  • the blockchain technology was based on the work of Adam Beck and Nick, prepared at the end of 90-x;
  • 2011 year - public resonance and the emergence of MtGox, the exchange that allowed to trade cryptocurrency;
  • publication on the PTS and technology in the magazine Time;
  • Spring 2013 of the Year - the price of the BTC crosses the first important milestone in 100 dollars.

Over time, new trading platforms began to appear and ratings were formed, that describe the best cryptocurrency exchanges. The material on iqmonitor.ru collected many sites with a detailed overview.

How much is bitcoin 1?

Today, many are talking about how much it can cost and in fact, how much bitcoin costs. Since the market is not controlled by anyone, it is difficult to predict the course even for tomorrow. Speaking about the physical price, it is worth transferring coins to Satoshi - a universal way. I propose a quick way to determine how many “bitcoin kopecks” are in a coin. It is convenient to estimate the amount of investment or production.

How much is bitcoin

BTC Translation in Satoshi

BTC Satoshi
1 +100 000
0.5 +50 000
0.1 +10 000
0.01 +1 000
0.001 100 000

Bitcoin exchange rate to the dollar

Most often, Bitcoin is tied to the exchange rate specifically for the dollar, like the rest of cryptocurrencies; The current rate and schedule of changes is also formed to the USD. In his material, how and where to buy cryptocurrencyI clarified the platforms with which it is worth working to determine the current rate for traders. At the time of preparation of the material for 1 BTC gave 3713 dollars. In the best of times, it was approaching 20 thousand dollars.

Bitcoin online course

Bitcoin exchange rate to the ruble

Increasingly, traders are wondering how to convert Bitcoin into a national currency, for example, rubles. Interestingly, both the PTS and RUB have been falling lately against the dollar. For the calculation, you can use the converters on the sites (including some exchanges have their own branded ones), or first convert BTC into dollars, and then at the current exchange rate into rubles. In preparing the material, she clarified that the exchange rate fluctuates around 245-250 thousand rubles for the 1 coin.

Bitcoin exchange rate to the ruble

Bitcoin exchange rate forecast

Economic and cryptoexperts were divided into 3 camps based on their opinions: how much bitcoins will cost in the near future.

  1. The price will go even lower, and the maximum threshold per coin is 500 USD.
  2. The price will be in the area of ​​10000-2000 dollars per coin.
  3. The cost will exceed 100 thousand dollars.

Since Bitcoin has not just fallen sharply, but continues to fall, it’s too early to talk about which camp will be right.

How and where can I buy Bitcoin?

The current situation on the market is beneficial to “whales” - large players, on the other hand, you can buy Bitcoin, regardless of the pessimistic news and wait for its growth. In order for a purchase to be quick, it is worthwhile to understand the main stages of the process, and besides that you have your own cryptographic chain. You can buy a coin:

  1. through the exchange, waiting for the right quotes;
  2. choosing an exchanger and buy Bitcoin without losing a lot of time and waiting more profitable course;
  3. direct transaction. I’ll clarify that this is a rather risky way and you have to be sure that your partner is honest.

How to buy bitcoin

Bitcoin wallet selection

First you need to decide on its form: • online (work with browsers, speed of transactions, access from any gadgets, but at the same time high hacker vulnerability).

  • Cold wallets like bitcoin core (often referred to as "official" because it was developed by the British corporation Bitcoin Foundation). The principle is that the entire network is downloaded, an additional password is applied and at least 200 GB of free space is required for operation.
  • Desktop wallets presented in the form of a flash drive with a password and a display.

Hardware wallet

Key features of popular hardware cryptocaps

Model name cost of Pros Cons
Ledger 65$
  • Supports ATS and Altcoins.
  • High security (activated by pin code and 24 words).
  • Clear interface.
  • Safety certificate EAL5 +.
  • Full set.
  • 3 times the incorrectly entered PIN code erases the device.
  • The possibility of theft, loss, mechanical damage ..
Safe deposit 105$
  • Intuitive interface and the possibility of "independent" signature of the transaction.
  • Wide compatibility with different software.
  • A wide list of supported cryptocurrencies.
  • High protection (pin code, 12 control words).
  • False key phrase to enter in case of extortion.
  • The possibility of theft, loss, mechanical damage.
  • Scanty model range and plastic case.
  • No security certificate.
KeepKey 110$
  • Stylish glossy black design.
  • Security with built-in number generator.
  • In fact, this is an improved model TREZOR 1.3.3.
  • Sending is done using the Chrome extension.
  • The possibility of theft, loss, mechanical damage.
  • No ability to check current balance.
  • Supports a small amount of Bitcoin, Testnet, Litecoin, Namecoin, Dogecoin and Dash.
Blockchain wallet
Blockchain.info became one of the most popular online wallets for 2017. Only in a month more than 300 thousand new clients are registered on it.

Online wallets

Pros:

  • Take up little memory;
  • Work with browsers;
  • Management from various gadgets, including portable and points of the planet;
  • The speed of operations.

Cons:

  • May succumb to hacker attacks;
  • It is important to remember the password.

Ideal for traders. The most popular is called Coinbase, Blockchain.info, Bitpay. It should be understood that the data of the wallet, the history of replenishment and withdrawal is contained on an external resource, and, therefore, it is a risk. Experts recommend using this view for small amounts and for frequent operations.

Cold wallets

By law belong to the most reliable. But it is necessary to download all the blocks and verify their authenticity. To keep all block chains intact, we recommend backing up keys from time to time. Sometimes they say that the "cold" form is represented as follows:

  • Paper version of the document;
  • Directly a special resource.

Many people use Bitcoin Core with a high level of security due to the additional password and stable operation. Wallet.dat is used to store addresses, passwords, and keys. He is considered an official VTS client.

Desktop wallets

Presented in the "thick" and "thin" form, and the difference is not in the limit for storage, but in that - the whole chain or fragment can be downloaded for work. Using these programs, you constantly need to increase the amount of storage space. If you make a bet on "thin", then you can lose in security, because the missing blocks the computer will look for with foreign services. It binds to a specific computer, so all operations will be carried out strictly through it.

Top up bitcoin wallet

Despite what your wallet is, replenish it in several ways. Choosing the most suitable, I recommend to take into account the commission, the processing speed of the application, supported fiatnye currency, reputation, security, convenience. 6 ways to replenish a BTC wallet:

  • online exchangers;
  • self-service terminals;
  • Bitcoin ATMs installed in 60 countries of the world;
  • payment systems, for example, through Yandex money, you can buy satoshi;
  • bank cards;
  • withdrawal from exchanges. For example, the Bitcoin locale offers the possibility of working with rubles, and its operation is based on the principle: person-to-person.

When there are already enough funds on your account, it’s worth understanding how transactions take place.

Cryptocurrency exchanger

Working online, the system is no different from the classical scheme: there is Bitcoin - you can sell it or buy it for another currency, moreover, both real and crypt. I recommend to follow the reputation, reserve, time of work, courses and the number of transactions performed - these factors will help you to minimize the risk of cooperation with unscrupulous companies.

Bitcoin wallet replenishment

An important point: specialized resources constantly update the ratings of verified exchangers, point to commissions, add news about the introduction of a new pair for work. It is not enough to know where to buy bitcoins, it is important to understand how safe it is. Plus, an important point that hackers are trying to make the most similar copy of the official page of the exchange; I recommend to check - always pay attention to the search string and the active security certificate.

Exchange crypto

The main array is concentrated in the Asian region, although recently the situation in it has been a little shaken. Often they say about the "four sharks":

  • Hit BTC;
  • Bitfinex;
  • Kraken;
  • Bittrex;
  • bitFlaer is allowed in the US, Japan, and from January 23 in the EU.

It is their indicators that are important in shaping the average rate, and the number of transactions per day is really massive. Each crypt market has its own trading conditions and the number of added crypts for operations, but everyone works with Bitcoin.

Exmo

The size of commissions, as a rule, as a percentage of transactions. All of them are designed to make money on Bitcoins, and since the rules of working on a crypto trading are almost identical to the classic stock, then no specific skills are required: get a wallet, pick a convenient pair for trading and just watch the quotes of “Japanese candles” and choose the direction in time - to buy or to sell.

How to make transactions in the blockchain network

I said in my material What is the crypto currency and it is the nature of the mathematical code that underlies each transaction. According to the technology, this resembles an ordinary bank transfer, but it happens much faster, and all data is in the network in the public domain. The key feature is anonymity. In order to conduct a transaction, the recipient’s wallet address is required. According to technology, this process consists of the following stages:

  1. entrance to a personal wallet;
  2. Enter through it the address of the purse of the recipient;
  3. amount indication;
  4. confirmation of the transaction with a private key.

The average speed for processing a transaction due to the need to receive confirmation in the blockchain from 20 minutes to an hour.

First transaction
The first transaction went through 12 on January 2009 of the year, but actually it was on January 10. Computer specialist Hal Finney after the birthday of his son followed the link sent to him by Satoshi Nakamoto, and thus received the 10 BTC.

How can you earn Bitcoins without investments

The most effective way to get a coin is to use mining equipment. You can also purchase currency on the exchange or in the exchanger. It is possible to receive VTS in the form of salary, payment for goods or services. Cryptocurrency charges are available if you choose to invest in it in different projects.

Carlson Wee
Olaf Carlson Wee for 3-x years (2013 – 2016 g) conducted an experiment: the purchase of goods and services exclusively for the PTS. In such a currency, he received a salary in a start-up project. For payment, he used direct transactions from the wallet to the wallet of companies and stores (20% of transactions), used the services of exchangers (40%) and paid friends for direct transfer. At that time, the coin to dollar rate was on the order of 25-50 dollars.

Bitcoin investment

Considering such Internet earnings, I’ll clarify that by investing in Bitcoin, you can make a profit in the PTS. You can use in different ways depending on the level of risk:

  • companies - cloud mining with official registration;
  • HYP projects.

You can also consider the option of investment purchases for the purpose of resale - the strategy of HODL. The direction is especially effective when the rate to the dollar is low, there are available funds to buy Bitcoin and just wait for the onset of a profitable quote.

Mining Bitcoin and other cryptocurrencies

To get bitcoin, you need to run mining. Self-mining is quite expensive because:

  • farm cost increases;
  • salary increases;
  • The price of electricity is rising.

The cost is quite high, so miners are looking for countries with loyal tariffs and a legislative field that allows this type of activity.

New block
Each new block is “solved”, which means it is confirmed on average every 10 minutes.

Bitcoin mining farm

Bitcoin cloud mining with attachments

Quite a popular way to buy virtual power by choosing cloud mining. The principle is simple: a customer buys power for a certain period of time, actually rents equipment installed in one of the countries, and regularly makes a profit. This is one of the most effective and safe methods how to earn bitcoin, and about other options - in the already prepared material on my blog.

Cloud pools
An interesting point is that until the end of 2017, cloud pools with a Chinese residence permit were controlled by more than 80% of all new coins mined.

Cranes

These are special platforms that allow for the performance of small tasks to make a profit. Among these tasks are:

  • input captcha;
  • solving simple rebuses;
  • click.

It is unlikely that it will be possible to acquire a whole bitcoin on one resource, so it’s worthwhile to work in parallel on several sites. On average, for 8-mi hour day, you can increase profits by 10-15 dollars. It is necessary to follow the history and reputation of sites and how they pay a profit. In some ways the taps are like bitcoin games, and about the most popular resources - already ready material on the GQ Blog Monitor.

Work on the cryptocurrency exchange

Traders buy, and then, after waiting for a favorable rate, they sell coins, thus, they earn money on time: on bitcoins and on the difference of the course. Often, experts work in parallel at different sites, choosing exchanges that support different cryptocurrency pairs, as well as fiat money. Repeatedly, transactions are executed exactly in a pair with other digital coins, for example, according to the principle: to give part of the PTS to buy a cryptocurrency Ripple. And more about its prospects, in particular in the Arab banking market, in a review of the GQ Blog Monitor.

How to mine bitcoins at home?

To start the process, you need to purchase an asic miner, build a farm and monitor its work. Finding a new unit in the chain, receiving confirmation, it is fixed to the miner and falls on a bitcoin wallet. Then you can carry out various transactions with the coin. For the extraction of cryptocurrency, it is initially necessary to invest a lot of money to purchase equipment, it is important to understand the technology and to monitor the continuity of work. It is advisable to do this in countries whose legislation is loyal to mining and offers low-cost electricity tariffs.

Cryptocurrency Creator Satoshi Nakamoto

The author and cryptogenic, revolutionary, phenomenal creator of the PTS consider Satoshi Nakamoto, whose identity has not yet been confirmed, and many guesses about who it may be: starting from Nick Sabo and ending even with Ilon Mask. Mr. Nakamoto’s fortune is estimated to be about 1 million bitcoins, and it is his pen that owns the described technology and, in fact, an official document. Many journalists, in particular Liya Goodman from Newsweek, found the address of a certain Satoshi Nakamoto, knocked on the door, an elderly Japanese man opened it, but immediately threatened to call the police.

Activity of the author
An interesting moment of social activity of the author of Bitcoin. LinkedIn has an account with Satoshi Nakamoto, who calls himself the creator of Bitcoin and lives in Japan. But authenticity is virtually impossible to verify.

Satoshi Nakomoto

Bitcoin cryptocurrency cost forecast

It’s too early to say what bitcoin will be even by the New Year, and a certain downward trend automatically throws us a couple of years ago, when they only talked about what it was and explained the complexity of the mathematical calculation in simple words. I cannot say that I believe in a miracle, but I really want that at least the military-technical cooperation should rise to its already fixed historical record, which will allow working on the crypto market not only for “whales”, but also for “hamsters”.

Bitcoin cryptocurrency seemed something scary, fantastic and unattainable even 5 years ago, and during that time it was able to increase its popularity and become understandable, and more recently financially accessible to many. Despite the fact that the course is going down, other coins also suffer: ethereum, ripl, monero, but there is always hope for the best. To summarize, I wish that Bitcoin did not turn out to be a “bubble” and had all the bases for a stable course and a decrease in market volatility, while you and I received a steady income.

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Add your comment
Comments (37) (Comments)
Ivan (15.04.2018 to 12: 29)
I would like to know how much you now need to invest in equipment to ensure profitable mining of bitcoin. Assuming that bitcoin will not fall sharply.
Misha Ogurtsov (12.04.2018 to 22: 42)
Bitcoin can be safely called the king of cryptocurrencies, the most expensive and most developing currency that simply conquered the market.
Dima (09.04.2018 to 09: 46)
There is a great hope that when those with cryptocurrency go downhill, Bitcoin will die the next and very slowly.
Nikita (06.04.2018 to 20: 48)
Bitcoin is already at this level for the course that you can already safely sell it and make a big profit on it. Three months ago he was still in decline, and today he is growing like mad.
Irina (02.04.2018 to 11: 45)
Bitcoin has firmly entered our lives, many are already earning on it. And you need to hurry to earn now, its price is constantly growing. What if in the future it will reach the mark in 10000 $?
Dmitriy (01.04.2018 to 13: 58)
I also do Bitcoin mining, but I am not worried about the decline in his course, because I am sure that the time will come when the cost of Bitcoin will rise again!
Alexandra Sinitsina (29.03.2018 to 15: 41)
I would never have thought before that Bitcoin would be our future, and that it would be profitable, but we need to know more about it, to be in all weapons.
Eve (26.03.2018 to 18: 40)
Bitcoin is the best for me at the moment. Personally, I have never been disappointed. There are both disadvantages and advantages, but still not inferior to other monetary units. I am satisfied! It began to earn from this cryptocurrency on the exchange.
Michael (24.03.2018 to 03: 25)
To buy Bitcoin, it is not necessary to transfer rubles to dollars, you can transfer them to another supported crypt, which are numerous.
Irina (21.03.2018 to 08: 09)
Thank you for the information! I have long wanted to learn more about Bitcoin, quite an interesting earning tool.
All Namaste!
About me:

I am the author and the ideological mastermind of the GQ Blog Monitor, one of the TOP articles on money and economy came out of my pen. I work with more 10 investment tools and teach people to become rich and free.

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