Bitcoin – is the relatively new type of cryptocurrency, introduced in 2009. Nowadays its popularity rapidly increases among different countries. In spite of the absence of clearly established regulatory policy, BTCs are accepted by numerous stores, companies, casinos and etc.
In order to bet at the online bitcoin casinos for whales, a player should be aware of where BTCs are coming from. There are two main ways of getting them: to purchase for the real money or to earn.
Main Points of Mining
There is no central institution, such as bank, for example, which will control the issuance of bitcoins. This cryptocurrency is generated by solving complex math problems, using special software. Here are several steps how to mine:
- buy special equipment – ASIC device. Today the process of earning BTC is widespread and competitive. The more miners are involved in the process, the more difficult it becomes to resolve the algorithm (math problem). Thus, to be sure that the spent money and efforts will be compensated, make simple calculations;
- register bitcoin wallet – a special program for BTC storage. Each wallet possesses: the unique address which consists of set of characters and private key for access (password);
- start mining – after all, the process is simple: open the program for this process, enter your name and password for the pool. That’s all! The process of block creation begins. The remuneration depends on the chosen pool;
- chose mining pool – in other words, the server that distributes math problems among participants. Each pool has a particular number of miners that can create so called “block” together in order to get 12.5 bitcoins;
- install special software – different PC require special programs (Bitminer, MacMiner, BFGMiner, 50 Miner).
Difficulties of This Process For High Rollers
High rollers will be probably interested in the quantity of earned bitcoins, which directly depends on the amount of created blocks. The more blocks are generated, the more difficult this process becomes.
Term “difficulty” can be measured in mining and means how hard it is to find hash (special number) to each block. Every 2016th block changes the difficulty.
Hardware
With cryptocurrency appearance, a variety of special hardware for mining increases. Earlier, it was possible to get coins either with the help of usual computer or with the help of graphic card (GPU). Nowadays, a well-known device is ASIC-miner (Application-Specific Integrated Circuit), which is more profitable because of the small energy consumption.
Features of Exchanges
Bitcoins can be exchanged on: goods and services or other traditional currency. It can be performed through the online payment systems or with the help of platforms. The most popular of them are Bitstamp, Mt.Gox, Kraken, Cryptsy and many others. There are also some charges for BTC buying or selling, which depend on amount and trader.
How Do They Work?
The exchange is considered to be completed when the orders of both parts (buyer and seller) are executed. Limit order permits either to sell or to buy a number of bitcoins at the fixed price.
Market order sells or buys BTC at any offered price from the lowest to the highest.
Differences Between Bitcoin Exchange And Wallet Website
The difference between “Bitcoin exchange” and “Wallet website” is evident. The first term defines the site, where cryptocurrency can be changed for the traditional one (EUR, USD etc.). The second one is an application for mining, where BTCs are stored.