What Are Bitcoins and How They Work

What Are Bitcoins
What Are Bitcoins

What are bitcoins and how they work are two common questions flying around the internet as bitcoin becomes twice as popular on a daily basis.

Its wise for one to know what bitcoins are and how they work and for someone that wants to get into investing in  bitcoin, these questions must be answered correctly.

Let me explain it simply and in few words

What Are Bitcoins?

The best Answer:  Bitcoins is a currency just like the naira and dollar, but instead of been printed in papers, it’s a digital currency that can be spent online and without a central bank. Just like

You spend Naira, bitcoin is money that is spent as well and globally it is starting to gain ground online and offline for payments. No banks are involved and so there are no transaction fees.

Another good thing is that it’s just too secure and you can register with no name which means you can transact anonymously.

Related: How to go beyond Bitcoin and make money with the blockchain

How Bitcoin Works

As I said earlier, bitcoins or bitcoin is a currency as well. It is spent the same way we spend cash, but in the case of bitcoin you acquire it by buying it with existing money. or

How To Acquire Bitcoins

There are many ways to acquire money and same is the case for bitcoin, but in bitcoins case, you would have to earn it online or if you have cash with you, you can buy bitcoins with your money as there are many sites where you can buy bitcoin.

Before I forget, you will have to create a bitcoin wallet  because that is where your money(bitcoin)  will be saved.

It is from this wallet that you can now start transacting with bitcoin. You can buy bitcoins in Nigeria on major bitcoin sites.

You can also ask your friend to transfer bitcoin to you as well, because it is a digital currency just like asking your friend to transfer airtime to you.

Making Money With Bitcoin

It’s a rampant idea to try and make money with bitcoins but its  simple and straight forward – buy and keep for some time

Recommended: Here’s how to do bitcoin investment in Nigeria with real example.

That is a little about bitcoin. You can share how you have been using bitcoin in the comment box below.