Bitcoin 101

1a – What is a blockchain? The blockchain is the technology that makes cryptocurrency possible. This is the first thing anyone needs to know in order to understand what Bitcoin is. In layman’s terms, a blockchain is a publicly accessible accounting book (ledger) that records all transactions made with a single currency. Blockchain technology can...

2a – What is Bitcoin? Bitcoin is the first ever cryptocurrency, supported by the first ever blockchain. It was created in 2008 by person(s) unknown named Satoshi Nakamoto, shortly after they published an academic journal article entitled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’. This article not only put forward the idea of cryptocu...

3a – How are bitcoins transferred? Imagine sending someone (e.g. your friend Sarah) an email that reads ‘1 bitcoin’. You would: Log into your email account Enter Sarah’s email address Type ‘1 bitcoin’ into the body of the email Hit send Sarah would receive a message reading ‘1 bitcoin’ A bitcoin transfer works...

Put simply, bitcoin mining is the process of verifying bitcoin transactions. It basically involves adding transaction records to the Bitcoin public ledger (the blockchain) to record the movement of bitcoins between wallets. The miners that do this job are rewarded for using their computer power to create new blocks on the blockchain...

Just as the name suggests: it’s hardware that is used to mine bitcoin. There are numerous different types of hardware you can use, such as GPUs, ASICs or FPGAs, and each has its own advantages and drawbacks. This page explains everything you need to know. Where can I find the best bitcoin mining hardware? Right here. We have found and reviewed all the o...

Mining Bitcoin without having to own and manage the hardware. Also known as cloud hashing, cloud mining is a service that allows users to lease mining capacity (hashing power) of hardware in remote data centers and earn bitcoins as the miners generate them. How does it work? In order get started with a service, you will need to take out a mining contrac...

Also referred to as a digital wallet, a bitcoin wallet is a program or software where bitcoins are stored, like a bank account. The wallets come in many forms, each providing unique features. There are web-based wallets, mobile wallets, and offline based wallets such as hardware and paper wallets. Why are they called wallets? Because, just lik...

A bitcoin hardware wallet, also known as a ‘hard wallet’, is a physical electronic device that stores your bitcoins. Hardware wallets are the most secure type of Bitcoin wallets and act like cryptocurrency safes, important for after having paid for your bitcoin. How do bitcoin hardware wallets work? Exactly how your hardware wallet will function de...

A bitcoin desktop wallet is a programme that you download and store on your computer. Once you have installed a desktop wallet, you’ll be able to access and transfer your coins using the app’s user-friendly interface. A wallet is usually necessary if you have already bought bitcoin. How do bitcoin desktop wallets work? Desktop wallets usually have intuitive...

A mobile wallet is an app on your phone that stores and moves your bitcoin. Mobile wallets can be downloaded through Google Play or the App Store and are completely free. It’s important to note that all your wallet details are stored locally using your phone’s memory rather than online, so having a secure password on both your phone and the wallet itself is...

Also known as a web wallet, an online wallet is a way of storing your bitcoin on the internet. In other words, it’s a wallet that runs on your browser, just like a website. Online wallets are regarded as more vulnerable to hacks than other types of wallet, but they are very convenient as you can access your wallet anywhere as long as you have an in...

A paper wallet is an offline wallet you can make yourself and keep on a piece of paper. This may sound a little confusing, but they’re actually one of the most secure ways to store bitcoins if you know how to make one. How do bitcoin paper wallets work? Paper wallets typically involve printouts of two QR codes, one for the public key (wallet addres...

5a – What is bitcoin used for? It’s now a decade since bitcoin was created, and you can now use it for almost anything for which you’d usually use ‘regular’ currency. To give examples, many Australians today pay their household bills using bitcoin, you can gamble with bitcoin in many online casinos and betting sites, buy furnitu...

A bitcoin debit card is a card that is linked to a cryptocurrency account or wallet, allowing you to spend your bitcoins both online and in real shops and ATMs. When you make a purchase, the bitcoins in your account are converted to fiat currency based on the current market rates, and that currency is used for payment – just like when you spen...