Bitcoin Usage Tips (Benefits also Included)

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There was this mania called the ‘Dutch tulip mania’ recorded to be the first ever speculative bubble. It saw people even going to the extent of even selling the homes they were living in, just to invest in the tulip flower. Same speculative bubbles have been suggested about cryptocurrency ever since their introduction into the market. Despite the speculations and controversies, investors have poured money into the digital currency.

What is Crypto Currency:

It is a digital form of currency that works on an encryption technique. Bitcoin is a type of Cryptocurrency. There are nearly 7000 cryptocurrencies, but only 10 of those are very prominently used. Though there are many risks and controversies around the Cryptocurrency people, look up through various crypto news website and educate themselves on the trading of Cryptocurrencies.

How Is Bitcoin Worth Determined?

To tell the truth, a bitcoin has no intrinsic value. It is one of the important reasons why investing in bitcoins is considered to be very risky. The worth of the bitcoin is what you assume it to be.

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Tips For Safe Usage Of Bitcoin:

  • Encrypt your wallet; the password is protecting and encrypting your wallet will protect your bitcoins from getting stolen.
  • Back up your wallet, this helps in recovering your wallet even after its loss. Back up your wallet including the private key this helps in recovering your whole funds instead of recovering only some part of your funds.
  • Opt for multiple signatures; this means multiple persons own a single address. This is kind of the joint account that we hold in banks. To complete a transaction, you will need the signature of the complete parties involved in the account. This gives your wallet an additional safety. But not all wallets feature this facility.
  • Use cold wallets instead of hot wallets; hot wallets are always connected to the internet, whereas the cold wallets are not. So opt to store your cryptocurrency in a cold wallet.
  • Use paper wallets; paper wallets are nothing but your private key will be in the paper and will not be in any form of digital platform. This is the cheapest way to keep your cryptocurrency But in case if you should lose the paper with the private key, it means that you have lost a fortune by losing a paper.

Bitcoin on Dollar

Benefits In Using Bitcoins:

  • Freedom in making payments, you can make payments anywhere in the world.
  • You are absolutely in control of your money because there are no central authorities in bitcoin.
  • All information is transparent; all transactions will be entered in the chronological order in the blockchain. Anyone can see it at any time.
  • Very low fees; there are either no fees or very low fees charged for the trading of bitcoin.
  • Many people lack awareness and understanding about the cryptocurrency making it easier for the scammers to swindle way their money which puts a negative impact on the digital

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Paschal Okafor is NaijaTechGuide Team Lead. The article Bitcoin Usage Tips (Benefits also Included) was written by Paschal Okafor. The article was last modified: September 19th, 2018

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