What is Bitcoin? A Look at the Digital Currency

Although, being everywhere for certain ages, Bitcoin suddenly came into the headlines. So, to help you out, in this article we will let you know what is bitcoin, how does it work and how to use it safely. Let’s take a look-

What is Bitcoin?

Bitcoin is a new currency which was discovered in the year 2009. In bitcoins, transactions take place with no intermediates which simply means while making transactions, any role is not played by the banks. Bitcoins can be used to book hotels on Expedia, shop for furniture on Overstock and buy Xbox games. As per the research, the price of bitcoin rise into the thousands in 2017.

How does it Work?

Bitcoin works well like other currency-people can buy goods and services and money can be bartered on the foreign exchange market too. Coins are reserved in the digital wallet (Software program where bitcoins are stored), which occurs either on the user’s smart device or in the cloud. Unlike other bank accounts, bitcoins are not insured by FDIC (Federal Deposit Insurance Corporation).

Bitcoin Security Tips

Security and safety are really important when transacting with bitcoins. Therefore, sharing with you a few bitcoin security tips one should always keep in mind when it comes to securing your bitcoins.

• Say ‘No’ to Web Wallets

A web wallet also known to be as a hosted wallet is a type of bitcoin wallet, which is hosted by a third party. These wallets are much easier to use but do not offer a high-level security to the bitcoins which you have given them to be stored. Well, web wallets are like a magnet for cyber-hackers. Therefore, stay away from them and if necessary, choose the company which can provide the highest level of Bitcoin security and safety by reading its terms and conditions.

• Stock Confidential Keys Offline

Every bitcoin user should keep in mind to store their private keys (secret code which allows someone to spend bitcoins) confidential while offline. While making a payment of a transaction which is generated online, bring it to the offline computer with the help of a USB stick, and when it’s already on the offline computer, then you should enter the private key. After that, bring it back to your online computer and then complete the transaction, there to stay safe and secure.

• Use a Hardware

Make it a point to make use of a hardware while making bitcoin transactions. Using USB keys helps to reduce the risk of cyber-attacks.

• Have a Backup Plan

What if your computer system accidentally gets lost or stolen? Then, you won’t be able to get access to your wallet, especially the bitcoins on the wallet. Therefore, keep a backup plan of your wallet on a regular basis to keep it updated with the latest private keys.

Apart from the above-mentioned tips, it is advisable to run the best antivirus software for all your smart device. Having an antivirus software provides protection against malicious e-threats.

Don’t get hooked by cyber-crooks!