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What is Bitcoin and how it works?


NightWish
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Bitcoin is a decentralized digital currency that you can buy, sell and exchange directly, without needing a bank or a company. Bitcoin’s creator is Satoshi Nakamoto, originally described the need for “an electronic payment system based on cryptographic proof instead of trust.”

How it works?

Bitcoin is built on a distributed digital record called a blockchain. As the name implies, blockchain is a linked body of data, made up of units called blocks containing information about each transaction, including date and time, total value, buyer and seller, and a unique identifying code for each exchange. Entries are strung together in chronological order, creating a digital chain of blocks.

More details: https://bitcoin.org/en/how-it-works

How to Buy Bitcoin?

You can buy bitcoin on popular exchanges such as: Binance

How to Trade Bitcoin?

You can trade bitcoin on popular trade websites such as: Bybit

Most Important; Not your Keys, Not your Bitcoin

But what exactly does this mean?

1. A non-custodial wallet gives you full control of your funds… There are two major types of crypto wallet, a custodial wallet and a non-custodial wallet.

A non-custodial wallet (Private Key Wallet in the app) gives you full control over your money.  As an example; Electrum Wallet: https://electrum.org/

Many contemporary service providers only offer custodial services where your crypto often never actually leaves their platform, as they are the custodian of your funds.

2 …meaning you hold your private keys, not someone else. When you sign up for a wallet, a unique public key and a private key is created. You can think of the public key just like an email address, you can share it with anyone you want, but your private key is like a password that unlocks your ability to send crypto from your wallet. 

3. Never share your private keys with anyone “Not your keys, not your crypto” means that if you don’t hold your private key using either a self-hosted or private key wallet, then someone else actually has control of your money — like a third party crypto service provider.  Sharing that private key is basically like giving someone the keys to your safe deposit box or your house. For that reason, you should never share your private keys.

 

 

 

 

 

 

 

 

 

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