Bitcoin was started as a private entity about eight years ago. It is now known that it is not regulated by any central monetary authority in the world like the other currencies do. Instead, it has its own regulatory mechanism that involves peer-to-peer network of its users’ computers.
For the Bitcoin currency, the Bitcoin is the basic unit and is subdivided into satoshis which are in turn equivalent to one hundred millionth of a bitcoin.
Bitcoins and satoshis can be transferred from one internet user to the next supposing he or she is buying a certain good or service at no extra charges. This has allowed many people from across the world to make international transfers without having to worry about exchange rates and extra bank charges.
For you to use Bitcoins, it’s imperative to have a Bitcoin safe which in essence, is a special type of software with which you can store, send and receive Bitcoins. Some of the Bitcoins safes that are available currently are the software safes, mobile safes, and internet Bitcoin safes.
Software Bitcoin safes can be installed on the PC to give you full control of it. The Mobile Bitcoin Safes are installed on a user’s smartphone or tablet computer to allow them to use the Bitcoins when shopping around in the supermarkets. Internet Bitcoin safes are located on the World Wide Web, are a kind of cloud storage.
It is without a doubt that paying for goods and services using Bitcoin has become super easy since all you have to do is enter the recipient’s address, the number of Bitcoins you want to transact and press send. Smartphones can also nowadays obtain the receiver’s address by simply scanning the QR code.
Protecting Your Bitcoins Safes
A Bitcoin safe resembles a bank’s safe that is full of cash. For you to reduce the chances of you losing your Bitcoins, it is advised to keep only small quantities of Bitcoins on your computer and smartphone and keep the rest somewhere safe like in an offline safe. Provided that your wallet has been encrypted, then an offline backup will allow you to recover your wallet, should your smartphone or computer be stolen.
Encrypting your Bitcoin Safes allows you to set a password that must be input before funds can be withdrawn. However, recovering a bitcoin password is impossible if it is lost and is why you want to be totally sure that you can recall your password easily.
In order to be as secure as you can, you should store off-line back-ups in many locations using a variety of media like USB flash drives and CDs.
Because Bitcoin runs on software you download to your computer (PC or laptop) or smartphone, you have to update this software frequently so as to keep your Bitcoin transactions and safes secure.