Why Bitcoin is needed and what you can do with it

In September 2021, bitcoin received official currency status in El Salvador. This country was the first where cryptocurrency can be used to pay for goods and even pay taxes. Is it really so convenient and profitable to use bitcoin? Let's look at the features of the most popular cryptocurrency and the possibilities of its use.

Why Bitcoin is needed

The aim of the developers was to create a virtual currency that does not depend on inflation, restrictions of states and to provide anonymity to participants of transactions. To make a transaction with cryptocurrency, you only need the Internet. Bitcoin can even be sent to an isolated North Korea, and even more so to any other country

Bitcoin features:

• Very low commission with no fixed rate. Its size depends on how quickly the request for a transfer or other operation will be processed. User assigns the rate himself.
• No passport data authentication is required. Although the history of transactions is public, any user can see the account and wallet address in the system, but no one will know who owns it.
• It is more convenient and profitable for electronic payments than fiat money. If the transfer of large amounts of euros to another country can take several weeks through the banks, the cryptocurrency usually occurs in a few minutes.
• Security. Hacking into the system is too difficult for anyone to take on. It's impossible to tamper with a transaction. Records are stored on hundreds of thousands of computers, so they can't get lost.

To profit from bitcoin, you have to keep an eye on its value. It can change several times during the day. There was a time when a tweet from Elon Musk instantly changed the rate of the cryptocurrency.

What to do with bitcoin

Cryptocurrency is purchased for cash or received as payment for services. It is primarily an investment vehicle. Bitcoin is held in an electronic wallet account or on cryptocurrency exchanges, waiting for it to rise in value and sold or exchanged for money. Some companies accept bitcoins as payment for goods or services.

How to exchange bitcoins

In order to get for bitcoin hryvnia or other currency you need an electronic wallet and a bank card Visa or MasterCard. Cryptocurrency wallets come in the form of an application, an online service, and a program for the computer. Large assets and savings are often kept on a thumb drive. To exchange and pay for purchases with bitcoins, it is most convenient to use a mobile app or online service as a wallet.

The easiest way to exchange bitcoins is to use exchangers. They work according to exchange rates of the Central Bank and stock exchanges. The exchangers have their own advantages:

• Filling out an application is fast, on average a few minutes.
• Reliable services work at any time of the day, they have sufficient currency reserves.
• Simple registration and procedure. No document verification required.
• Small commission, 1-2% on average.

To exchange, the client fills an application where he chooses a currency pair, such as bitcoin-dollar or bitcoin-euro and specifies the amount. After confirming the request, it receives the status «Completed». The speed of the process depends on the workload of the service, can take several minutes. Funds will be credited to the card after the bank processes the transfer. Often this happens in minutes, up to half an hour.

Bitcoin is profitable as a means of passive income from the difference in price between the amount bought and sold. In some countries, certain types of businesses accept payment in bitcoins: cafes, stores, cabs, etc. Bitcoins can be quickly and easily converted into dollars or other currencies through exchangers.