The big question is what is Bitcoin and how can I safely use it.
I put this post together as a resource for understanding and using Bitcoin
1. What is bitcoin?
Bitcoin is a form of digital currency, created and held electronically. No one controls it.Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
2. Why use bitcoin? ·
There are no chargebacks
People can’t steal your payment information from merchants
It’s as private as you want it to be
Read this excellent article
How do bitcoin transactions work
Bitcoin transactions are sent from and to electronic bitcoin wallets, and are digitally signed for security. Everyone on the network knows about a transaction, and the history of a transaction can be traced back to the point where the bitcoins were produced.
Holding onto bitcoins is great if you’re a speculator waiting for the price to go up, but the whole point of this currency is to spend it, right? So, when spending bitcoins, how do transactions work?
How bitcoin mining works ·
In traditional fiat money systems, governments simply print more money when they need to. But in bitcoin, money isn’t printed at all – it is discovered. Computers around the world ‘mine’ for coins by competing with each other
Read this excellent article How to buy bitcoin
OK, so you’ve learned the basics about bitcoin, the next step is to get some bitcoins.
But how? This guide below will tell you what you need to know.
You can buy bitcoins from either exchanges, or directly from other people via marketplaces.
You can pay for them in a variety of ways, ranging from hard cash to credit and debit cards to wire transfers, or even with other cryptocurrencies, depending on who you are buying them from and where you live.
I use Coinbase and Coinpayments for bitcoin payments and requests for payments
Of these two Coinbase will allow me to send US dollars to my bank account
Of course you can transfer funds back and forth between instantly with little or no fees
What I like is once you get a bitcoin address you can use it anywhere that accepts bitcoin
Here is an excellent guide for Bitcoin providing a lot of information including legalities. Bitcoin information Guide
I only use bitcoin get paid or to pay someone and send what is left to my bank. This is the legal and safe way to go.
I report the earnings as income just like it is any other transaction.
If you want to invest in Bitcoin read the guide.
If you want to mine Bitcoin read the guide.