CoinHunter789 reports: Bitcoin is a decentralized virtual currency, also known as digital cryptocurrency. As a “network currency” that is different from physical currency, it is used to transfer funds over the Internet. In recent years, the status of Bitcoin has gradually risen among consumers, governments, and financial traders. Now, Bitcoin is the largest digital cryptocurrency globally, not only in terms of market value but also in terms of popularity and attractiveness.
Bitcoin is a form of decentralized virtual currency, also known as digital cryptocurrency. As a “network currency” that is different from physical currency, it is used to transfer funds over the Internet. In recent years, the position of Bitcoin among consumers, governments, and financial traders has gradually risen. Now, Bitcoin is the largest digital cryptocurrency globally, not only in terms of market value, but also in terms of popularity and attractiveness.
The significance of Bitcoin can be understood from two perspectives: as a currency itself, and as a P2P peer-to-peer network that supports the entire system.
For example, you can hold Bitcoin to buy a new car, or hope that Bitcoin’s infrastructure can be updated.
The concept of digital cryptocurrency was first proposed by Wei Dai in an email exchange on the network forum Cypherpunks in 1998. He believed that the application of cryptographic principles would drive social change and improve privacy in the information age. However, it took ten years for Bitcoin to develop from an idea to a product. A person named Satoshi Nakamoto published a paper on another cryptographic website, describing the working principle of Bitcoin.
Who is the inventor of Bitcoin? People believe that Satoshi Nakamoto is the inventor of Bitcoin, but this is just a pseudonym. No one knows who Satoshi Nakamoto is. People only know that in 2008, this name proposed the concept and specifications of Bitcoin in the Bitcoin white paper “Bitcoin: A Peer-to-Peer Electronic Cash System.”
Satoshi Nakamoto, who left the Bitcoin project in 2010, did not reveal much about his identity. However, for the developers and programmers who continued to adhere at that time, the departure of the person or group behind Bitcoin did not have much impact. “Therefore, the identity of the Bitcoin inventor may be as irrelevant today as the identity of the inventor of paper,” the Bitcoin website wrote.
Bitcoin continued to develop without Satoshi Nakamoto and reached the height of global currency in 2013. It is estimated that there are about 1 million Bitcoins in Satoshi Nakamoto’s account. At the 2021 price, it should be worth hundreds of billions of dollars.
There are many doubts about the legitimacy and compliance of Bitcoin in the market, and the supporters of Bitcoin have strongly resisted these doubts.
Bitcoin alternatives
Bitcoin is the first digital cryptocurrency, but since its birth, hundreds of competing new forms of digital cryptocurrency and technological applications have emerged. These other currencies are collectively referred to as “altcoins” and differ from Bitcoin in one or more key features:
Namecoin was the first altcoin to appear, and its working principle is exactly the same as Bitcoin, but it can be used as an alternative domain name registration system.
Ripple is the largest altcoin by market value. The developers of Ripple claim that this digital cryptocurrency can complete transactions in 2-5 seconds, much faster than Bitcoin.
Litecoin is the first attempt to improve Bitcoin’s cryptocurrency: that is, to reduce the time required to mine a single equation and increase the quantity that can be mined.
Conditions for buying Bitcoin
The basic conditions and process for buying Bitcoin are as follows:
Basic conditions
Internet connection: You need a stable Internet connection to access Bitcoin exchanges or other purchasing platforms.
Digital wallet: You need a Bitcoin wallet to store your Bitcoin. Wallets can be online, mobile, desktop, hardware, or paper-based. Common wallets include:
Software wallets: such as Electrum, Mycelium, etc.
Hardware wallets: such as Ledger Nano S, Trezor, etc.
Online wallets: such as Blockchain.com, Coinbase Wallet, etc.
Trading platform account: You need to register an account on a Bitcoin exchange or platform. These platforms allow you to purchase Bitcoin with fiat currency (such as US dollars, RMB). Common exchanges include:
Binance
Coinbase
Kraken
Huobi
OKEx
Proof of identity: Many exchanges require users to undergo identity verification (KYC), which usually includes providing identification such as an ID card, driver’s license, or passport, as well as proof of address in some cases.
Payment method: You need a payment method to purchase Bitcoin. Common payment methods include bank transfer, credit card, debit card, PayPal, etc.
How to buy Bitcoin domestically
In China, the process of buying Bitcoin is relatively complex because the Chinese government has strict regulations on cryptocurrency trading. However, there are still legal ways and methods to purchase Bitcoin.
Basic steps
Choose a purchasing platform: In China, due to policy restrictions, mainstream exchanges such as Binance and Huobi may not support direct RMB transactions, but Bitcoin can be purchased through over-the-counter (OTC) platforms.
Register an account: Register an account on the chosen platform. You need to provide some basic information and undergo identity verification (KYC).
Set up a wallet: Choose and set up a Bitcoin wallet. You can use software, hardware, or online wallets to store your Bitcoin. Common wallets include:
Software wallets: Electrum, Mycelium
Hardware wallets: Ledger Nano S, Trezor
Online wallets: Blockchain.com, Coinbase Wallet
How to buy Bitcoin?
Using over-the-counter (OTC) platforms: Through these platforms, you can conduct peer-to-peer transactions with sellers and purchase Bitcoin with RMB. Common OTC platforms include Huobi OTC, Binance OTC, etc.
Using third-party payment: Some platforms support transactions through Alipay, WeChat Pay, etc.
Detailed process
Choose and register an OTC platform: Choose a reputable OTC platform, such as Huobi OTC, Binance OTC, etc.
Register an account on the platform and complete identity verification (usually requires uploading ID card photos).
Find sellers: Look for sellers with good reputations on the OTC platform. You can check the seller’s transaction records and ratings to judge their reliability.
Place an order: After determining the transaction amount and amount of Bitcoin, place an order with the seller. Pay attention to the exchange rate and transaction fees.
Payment: Use the payment methods supported by the platform (such as Alipay, WeChat Pay, or bank transfer) to make payment to the seller.
After completing the payment, upload the payment voucher and confirm the payment.
Receive Bitcoin: After the seller confirms receipt of the payment, they will release the Bitcoin to your OTC account.
You can transfer the Bitcoin from your OTC account to your personal wallet to ensure security.
Through the above steps, you can safely purchase Bitcoin in China. Due to the rapid changes in policies, it is recommended to pay attention to relevant regulations and platform announcements at all times to ensure legal and compliant operations.
