Bitcoin was started as a private entity about eight years ago. However, as opposed to the usual forms of currency we use nowadays, it is not controlled by any central monetary authority. Instead, it works similarly to a video chat through a peer-to-peer network of the computers of the people currently using it.
The Bitcoin is the basic unit of value, but it is subdivided into satoshis that are equal to a bitcoin divided by eight decimal places.
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 enabled companies from across the globe make global transfers without having to continuously worry about exchange rates and bank transaction 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. There are three types of Bitcoin safes, and they include software safes, mobile safes, and web safes.
Software safes are set up on your computer to provide you with complete control over your Bitcoin safe. As for mobile Bitcoin safes, they are usually installed on your smartphone or tablet and make it possible for you to use Bitcoin for daily transactions in shops and supermarkets by scanning a quick response (QR) code. 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 may also obtain a receiver’s address by scanning a QR code or by bringing two smartphones that use the near-field-communication (NFC) technologies, a form of radio communication, close to each other.
Protecting Your Bitcoins Safes
One might compare Bitcoins Safes to wallets filled with cash. For you to ensure you Bitcoin funds are secure, it is imperative to stash small amounts of Bitcoins in your PC or Smartphone and the rest to an encrypted offline Bitcoin 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 safe means setting up a password that must be input before accessing and withdrawing the Bitcoins you have stored. It’s critical to note that recovering a Bitcoin safe password once its lost is very difficult and is why it is essential to use a password that you can easily remember.
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.
It’s imperative to make sure that you have updated your Bitcoin Safes software to make ensure their security alongside transactions.