Bitcoin terminologies for every investor to know.

The 7 Best Bitcoin Wallets That You Should Use For Storing BTC

Even though it is over 10years since Bitcoin came to the limelight, a lot of things about it remain a mystery.  Many experts say that the mystery of the crypto currency is what makes it secure, free from government intervention, and more. There is a lot to be said about BTC transaction. Besides being unregulated, they are irreversible. The latter is also still a mystery to many people. In this article we will describe the various BTC terminologies you need to know. 

What is Bitcoin?

Bitcoin is a crypto currency that runs on the blockchain application. The digital currency is supported by a source code that generates very complex algorithms by the use of cryptography. The latter ensures users get security and scalability when using the BTC systems. It is something that best bitcoin mixers guarantee as well.  I will use the analogy of computer and applications that run on it to illustrate BTC concept. The computer will be the blockchain technology. The application that runs of it will be blockchain. Since you computer uses many applications, so does many cryptocurrencies run on the blockchain application

What is blockchain?

You cannot talk of Bitcoin and leave out blockchain network.  Blockchain is the nerve center of bitcoin and other cryptocurrencies. You should note that these cryptocurrencies run on the blockchain network that uses cryptography and best bitcoin mixers technology to guarantee security of their systems. The term blockchain is made up of two words. The first one is the block and the second one is the chain. You will need to add the block on the chain to get rewarded with BTC. It is the only way of generating BTC. The person who gets rewarded will sell the cryptocurrencies to other people. 

What is a private key?

Also known as passwords, private bitcoin keys are numbers that ranges from 1 to 78. Each user will have his or her own private key that will be used in the sending or receiving of BTC. You should note that minus the private keys, BTC transactions will be incomplete. Therefore, if you have lost your private key, you will need to recover it to enjoy many of the bitcoin features. Similar to the setting of passwords, you will need to set strong private keys.  

What are Bitcoin wallets?

Another key bitcoin terminology is the wallets. You will use the private keys to access your wallets. They are nothing else but place to store your Bitcoin.  There are different types of wallets that include, but not limited to software wallets, hardware wallets, cloud wallets, paper wallets, and more. Paper wallets and hardware wallets are preferable to use. They are not affected by cases of hacking and phishing since they are offline. On the contrary, software wallets are prone to cases of hacking and phishing. But the good news is that the use of best bitcoin mixers reduces the latter cases.

Leave a Reply

Your email address will not be published. Required fields are marked *