Bitcoin FAQ

What is Bitcoin?

Bitcoin is a digital currency that is transferred via the World Wide Web. This is the first electronic currency that was decentralized. Bitcoins have numerous advantages over other types of electronic money.

Bitcoin transactions between users are performed via the Internet. This process is very simple and is very similar to emailing. There is no need going to a bank which gives additional benefits:

• lower fees
• worldwide circulation
• account that can be not frozen
• absence of arbitrary limits and prerequisites.

How Does Bitcoin work?

Bitcoins are generated online by a free application known as abitcoin miner. The process of bitcoin generation is called mining. Mining of each block of coins involves a particular work amount that is appointed by the network. Therefore, bitcoins are generated at a limited and predictable rate.

Bitcoins are stored on an electronic wallet, the usage of which resembles online banking. Bitcoin transactions are followed by the addition of a digital signature. Each transaction is verified by the miner and stored on the network. Of course, information about transactions is reliably protected.

The bitcoin software is open for users, which means codes can be reviewed any time. Bitcoins are widely used today. This type of e-money is used for purchasing a wide variety of goods and products, including clothes, autos, servers, real estate property, gift cards, computer games, books, etc. Of course, bitcoins are transferred between users and used when playing poker.

Bitcoins can be exchanged into EUR, USD and other decentralized currencies. This type of e-money is a real catch for freelancers and small business owners. There is no need investing

How can I open the wallet?

There are three types of wallets you can have: offline wallet, online wallet and a paper or printed wallet. Each has its advantages and disadvantages.

Here are some online wallets:

coinbase is especially popular in the USA. This is the site where you can exchange bitcoins into USD. This service is tied to a bank account and has a two-factor authentication.

blockchain - the "chain" for coins knows this wallet for its two-factor authentication and direct connection. The wallet offers mobile client service and can be also backed up and stored offline.

The main drawback of the online wallet is its dependence on the site. If the site goes down, accessing your online wallet will be impossible.

An offline wallet is the safest place to store your bitcoins. This type of wallets is attached to a user's hard drive and takes bitcoins off the Internet.

These are some of the most reliable offline wallets:

Armory

bitcoinarmory
If you are looking for encrypt or backup options, this wallet might be the best choice for you.
Armory allows users printing their wallets.

Multi Bit

multibit
The wallet is tied directly to the blockchain. It does not require much time to get downloaded and is very easy to use and synchronize with the online block.

Where do I buy and sell Bitcoins?

Many users sell bitcoins online. So, you can buy them wherever you find a suitable offer. One can choose between decentralized and centralized options. If you prefer centralized wallet services, you can visit Coinbase. This USA-based wallet service allows selling and buying coins for a minimal fee and with the help of your checking account. There are services, like Localbitcoins, that unite local buyers and Bitcoin sellers across the world.

Other popular and reliable exchanges are BTC-E, Bitstamp and BTC China. By studying the market data on websites like BitcoinAverage, you will find the most popular exchanges rated by volume per currency.

When looking for places to buy or sell bitcoins, it is necessary to be very mindful and selective.

I'm interested in playing poker. This information seems too difficult.

This information is posted for those who are interested in it. There is no need understanding the nature of Bitcoin to start playing on Cruel Poker. You can play normal poker once you have an account balance. Playing normal poker with quick cashouts and low rake is easier with Bitcoin.