Bitcoin is becoming popular day by day and as we keep approaching the next bull run, more and more people are getting attracted to it. Mostly the youth is driven towards Bitcoin because the technology backing it looks promising. Today, we will learn how to get started in this entirely new field of digital money.
What is Bitcoin?
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.Source : Bitcoin WhitePaper.
Basically, it’s a form of money which is peer to peer. Let’s suppose you want to pay me $10, if you pay using Bitcoin, you essentially don’t have to depend on any government or bank to process this transaction. It makes you your own bank. It’s a tough job to be your own bank but if you follow the safety precautions, it’s not that difficult. To get started first of all let’s understand the basics of Bitcoin and how it works.
For a Payment to get processed successfully, we need someone to verify our transactions. In conventional payment methods, we have Banks to check the transaction details and they confirm whether the person sending the money actually has the money with him/her. In Bitcoin, that job is processed by miners. What Bitcoin Miners do is they keep verifying the transactions happening on the bitcoin blockchain. When someone sends money using bitcoin, miner’s verify whether the person sending bitcoins actually has it with him/her. This stops double-spending.
Private Key and Public Key Concept
When someone sends you Bitcoin, essentially they are sending it to a hashed version of what’s known as Public Key. There is another key known as “Private Key” which is used to derive the Public Key. You know your Private key and someone sending you Bitcoin knows their Private Key. You must never share your Private Key with anyone unless you want your money to be stolen.
” We define an electronic coin as a chain of digital signatures. Each owner transfers the coin to the next by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. A payee can verify the signatures to verify the chain of ownership.” – Bitcoin WhitePaper
How to make a Wallet to Accept Transactions In Bitcoin?
Thanks to the sponsor for this post WazirX India. WazirX is India’s most trusted Bitcoin Exchange. It’s available for all countries now. They have been acquired by Binance, which is the global leader in Cryptocurrency Trading sector. You can buy Bitcoin, Ethereum, Ripple, Litecoin and many more coins using their robust trading platform.
To accept payment in Bitcoin, follow these steps mentioned below.
STEP 1 : Sign up on WazirX here.
STEP 2 : If you are an Indian resident, submit your KYC documents like Pan Card and Aadhar Card for identity verification. This is an important step to prevent fraud and shady transactions on WazirX. It helps make the platform more secure. You also need to turn on 2-Step Verification for login to your account.
STEP 3 : Go to the Wallet Section of your WazirX App and click on Bitcoin. Tap on Deposit and you should see something like this.
Share the Wallet Address or QR Code with the person from whom you want to receive Payment using Bitcoin.
Thanks for Reading this, hope this was helpful !