Bitcoins have been the decentralized form of crypto currency. It implies a financial institution or the government does not regulate them. However, unlike traditional bank account, you may not require long list of paperwork such as an ID for establishing what has been called as bitcoin wallet. The bitcoin wallet could be used for accessing your bitcoins and sending bitcoins to various other individuals.

Setting up an account

You could acquire a bitcoin wallet from a bitcoin broker such as Indacoin, Coinmama, Coinbase, Coinhouse or BitQuick. When you open up the bitcoin wallet through a certified broker, you would be given a bitcoin address. It would be a series of numbers and letters. It would be similar to an account number for a bank account along with a private key. It would be a series of numbers and letters as well. It would serve as your password.

Buying bitcoins instantly

Are you wondering on buying bitcoins instantly? The most common method of getting bitcoins will be from friends, buying them from bitcoin exchanges for real money and online giveaways. Nonetheless, using real money for buying bitcoins will defeat the purpose of anonymity. You will need to add your bank account to the third party site. Yet another medium of buying bitcoins will be by using the mobile phone. You can also buy bitcoin through several cash deposit establishments made available in the market. However, new bitcoins are created through ‘mining’ proves. Several servers and computers will do it automatically. It should not be compared to real world mining where people need to dig underground for unearthing different commodities. However, the concept is very similar to it. As you will need to put in additional efforts for digging gold, you will need spending time with the computer for recording and verifying bitcoin transactions.

Bitcoin working as payment processor

You would be able to do three things with bitcoins. You could purchase, send money anonymously to someone and utilize it as an investment. Several merchants would accept bitcoins as a form of payment. By making use of bitcoins rather than cash, you would be essentially making that purchase anonymously. The same thing would go for sending money. It is because you do not have to submit a huge amount of payment for establishing a bitcoin anonymously. You could also send money to someone else anonymously.

Process of sending bitcoins

Paying for several goods and services or sending bitcoins to an individual, you would require three things. It would be inclusive of your private key, your bitcoin address and the bitcoin address of the individual. From this point and through your bitcoin wallet, you would be required to put three pieces of information. It would be inclusive of input, balance and output. The input refers to your address. Whereas, balance would refer to the amount of bitcoins that you intend to send and output has been the address of the recipient.

However, it should be borne in mind that price of bitcoin fluctuates regularly. Therefore, you should have comprehensive knowledge about the prevalent price of bitcoins before actually purchasing them.

Author Bio

Melvin Draupnir has been providing comprehensive reviews and knowledge on using bitcoins in trading. His articles and blogs have in-depth knowledge on the various modes of buying and sending bitcoin currency suitable to your needs.