As far as the value of Bitcoin can rise, no one really knows, so it may never be too late to buy some (satoshi). In addition, it has been declining recently and the purchase may pay off again. There are basically two ways to get Bitcoin: Either you extract it or buy it from someone.
If you decide on the first option, you need a powerful computer with an even more powerful graphics card, preferably in larger numbers. In addition, a powerful source and especially cheap electricity, because after the installation of “mining software” will go fully and the bill from the power plant may be unpleasantly surprised.
How to extract Bitcoin
If you do not have a really strong performance on your side, it is more convenient to log into a pool, where you combine your computing power with others and share the bitcoins. It works on a similar principle to the former SETI @ Home, where computers around the world analyzed signals from space.
How to Buy Bitcoin
Compared to the beginning, when it was perhaps the other way around, buying Bitcoin for money today is easier than mining (unless you already have a gaming computer). Basically, you can buy Bitcoin from anyone who has it and give it as much as you ask for it. Perhaps from a neighbor for a bottle of plum brandy, but rather it will be owned by strangers you would have to trust. The record that they send money through their account exists, but their Bitcoin path is no longer able to follow you. Therefore, when buying from a natural person, trust comes first.
If you do not know anybody, it is very easy to use bitcoinomats, which are terminals similar to ATMs, but they are operated by private companies and the rate in them is less advantageous than other methods. You simply come to such a bitcoinomat, see the current exchange rate on the screen, choose how many crowns you want to buy and enter your wallet address. Vending machines are operated by multiple companies and can be found in larger cities.
Obviously, it is best to go to some proven stock exchange. There are many, some are Czech. Registration is not that simple, you have to prove your identity and often send a scanned ID or identify yourself that it may not be more pleasant to a person more careful about personal information.
Once you are on the stock exchange, you pair your bank card and shop. You will have bitcoins in your virtual wallet on the stock exchange, where you can operate with them quickly, but you can also download them to yourself. Each transaction costs a fee, mostly smaller percentages directly from the cryptocurrency.
I didn’t mention one important thing. You need a bitcoin wallet. Bitcoins are unique sequences of numbers and cannot be stored on multiple repositories other than as a wallet backup. Wallet is actually an application that generates a unique address – entry into your wallet. You will then communicate it to the Bitcoin sender – real person, stock exchange or bitcoinomat. The wallet address is a number you cannot remember. For payment purposes, you can copy it through the Ctrl + C Ctrl + V box, or have a QR code created.
The most secure and robust solution is the official Bitcoin Core application, which downloads the entire blockchain to your computer. It currently has about 160 GB, so it’s not a solution for everyone. You can also have your wallet on your mobile, and there are many apps for it. It is important to back up your wallet. You only need one small file that you can hide somewhere well. Advance is actually access to a specific wallet. How many Bitcoins are there is information stored in the blockchain.
In addition to the normal application, there is good experience with hardware wallets. For example, the Czech product Safe, but you have to pay for it (about 2900 CZK).
How to make money with Bitcoin
Payment in bitcoins is not immediate, but takes a while. The transaction must check and acknowledge a certain number of nodes on the network. There’s a small fee, and if you’d like a faster confirmation, the fee tends to be higher.
So you have purchased Bitcoins, or rather some Bitcoin company and what to do with it now. If you enjoy it, watch the exchange, exchange rate fluctuations and trade. You can convert Bitcoins to other cryptocurrencies and back again, you can sell them for regular currency. And you can sell them directly to your neighbor without the participation of any exchange. Only if you make a profit by doing so should you properly pay the tax.