Bitcoin Learning Center
- Learn about where to buy Bitcoin
- How to open an account on an exchange
- Choosing the best purchasing method
Bitcoin is a digital currency that facilitates peer-to-peer transactions. The Bitcoin network is maintained by miners who add blocks to the blockchain. Bitcoin’s supply is predetermined and cannot be changed.
Learning how to buy Bitcoin is simple. Bitcoin can be purchased in a variety of ways using brokerages, exchanges, and peer-to-peer networks.
Bitcoin’s unique features make it valuable in the eyes of its holders. Notably, its scarce, auditable supply is not controlled by a government or other monolithic entity.
Backing a currency is a method to control the value of its price by connecting it to another commodity. Bitcoin is not backed by any other asset. Gold and fiat currencies are not backed by anything either.
Introduction to Bitcoin Wallets
Bitcoin wallets store and protect the public and private keys, allowing you to send, receive, and store bitcoin. Bitcoin wallets can come in the form of software or hardware devices.
Bitcoin wallets hold a user's keys, allowing them to sign transactions on the Bitcoin blockchain. Wallets also allow users to receive bitcoin and store it securely.
Bitcoin mining secures the Bitcoin network, confirms transactions and releases new coins into the Bitcoin ecosystem. Here is a brief look at how it all works.
The Bitcoin halving is an event that happens approximately every four years, when the bitcoin reward miners earn for finding a new block is cut in half. This algorithm reduces Bitcoin's inflation rate and enforces its scarcity.
Bitcoin Taxes and Estate Planning
Filing taxes on bitcoin losses, gains, and any bitcoin earned income is necessary to avoid additional taxes or penalties by the IRS. Different bitcoin activities create different taxable events.
Bitcoin investors looking to pass their wealth on to future generations, while keeping their bitcoin private and secure, should consider investing bitcoin in a trust.
Bitcoin and Blockchain Technology
Blockchain is the technology that underpins Bitcoin and allows its users to exchange value without a central intermediary. A blockchain is a database containing the entire history of Bitcoin transactions.
Bitcoin is a peer-to-peer currency that is a network of nodes running Bitcoin software. A node is able to receive and communicate transaction information with other nodes in the Bitcoin network. Bitcoin nodes store and verify the blockchain.