How to get crypto currency and Bitcoin

worker bee

Hello Reader,

In the last article we explored the different types of Bitcoin wallet and took a look at some recommendations for each of them. However, having a new fangled digital wallet isn’t all that exciting if you don’t have any bitcoin to store in it!

In this article, we are going to explore the different ways that you can get hold of bitcoin (and by extension, other crypto currencies too).

There are four main ways that you can get hold of crypto currency and bitcoin:

  1. Be given a small amount via a tip or from a faucet
  2. Mine as part of a mining pool
  3. Earn bitcoin as payment for work under taken
  4. Purchase bitcoin directly

Let’s explore each of these in more detail…

Continue reading

What types of Bitcoin wallets are available and which should I choose?

Hello Reader,

We’ve already explored what a bitcoin address is and how they are protected by cryptography. Now we will learn what bitcoin wallets are, which options are available and how you go about using one. Yes, this is the post that gets you on board the digital currency train.

A wallet is simply a collection of bitcoin private keys which enables you to use multiple bitcoin addresses with ease

Continue reading

Mining in crypto currency and Bitcoin

Mining

Hello Reader,

We’ve now covered how bitcoin addresses are secured and become acquainted with the blockchain. In this post we are going to learn about the process known as mining which acts to secure the network.

What is bitcoin mining?

Miners are the engine that powers the blockchain. They check transactions are valid and then record them into blocks to be added to the chain.

There are two key questions that mining answers.

Bitcoin uses a peer-to-peer network, with no central authority issuing transactions. As a result, each node is likely to include different transactions in their respective blocks.

(1) How does the network decide which block to add to the chain?

Furthermore, computers are expensive to buy and operate.

(2) Why would anyone spend their resources running a node?

Continue reading

What is a blockchain?

Hello Reader,

In the last post, we uncovered exactly what a Bitcoin address is and how one can be secured using modern cryptography.

In this post we are going to delve into the database underpinning bitcoin and learn how it is structured. That database is known as a blockchain:

A blockchain is simply a distributed database

For many years, it was thought that fully decentralised digital currencies were impossible. The reason being the problem of double spending. How do you ensure that a digital coin has not been copied electronically and therefore spent repeatedly without the use of a central authority for verification?

Continue reading

What is public key cryptography and how does it relate to Bitcoin?

Hello Reader,

In this post we will take a closer look at the magic of cryptography and how it features in Bitcoin.

Bitcoin begins with public key cryptography

As I’ve touched on in my previous posts, the Bitcoin protocol is essentially a record of transactions between addresses. For simplicities sake you can think of an address as being akin to an online bank account. The Bitcoin ledger contains records of the coins that each address has sent and received.

But what actually is an address? Public key cryptography was published in the 1970s and provides a method for asynchronous encryption and decryption of information.

What on earth does that mean?

Continue reading

What is crypto currency?

crypto currency

Hello reader… yes, you. Come closer and I’ll tell you the story of one of the most captivating inventions of the 21st century… crypto currency.

In the simplest terms, crypto currency can be thought of as digital money. That is, money which is generated and governed by computers over the internet.

In reality however, the story is far more interesting and complex than can be conveyed in a single sentence. Indeed the topic will be the focus of the majority of the posts on this site.

This post is the first of an introductory series which will take a look into the origin and mechanics of crypto currency.

Continue reading