What is Bitcoin … بیت کوین چیست و چگونه کار میکند؟

What is Bitcoin?

Bitcoin is a digital file or ledger that contains names and balances. People exchange money by changing this file. Everyone has an account. When they buy something and pay by Bitcoin; their balance of Bitcoin go down. (Pretty much like a bank account).

When you sell items through internet and receive Bitcoin instead of it. Your balance of Bitcoin in your account goes up. (Like you have deposited more money into your bank account) but here; there is no money or gold transferred between the seller and buyer. 

The seller trusts the system and sells items and is satisfied with the increase of Bitcoin in his/her account. The seller will be able to change the Bitcoin to any other currency and turn them into money. 

Is there a bank or a centralized system to check and maintain Bitcoins?

The answer is NO. There is no bank or centralized system that controls Bitcoin. Every user maintains a copy of ledger. So; everyone can see everyone else’s balance. 

Note: The ledger only contains the account numbers. No name is shown in the ledger.

How are the ledgers sync on all computers in the world?

When a user starts sending a money; a broadcast is being sent to everyone and informs them about “the Bitcoin Sender, receiver and amount of Bitcoin”. Then all the ledgers are being updated.

How to ascertain that no one can spend other’s money?

When a new Bitcoin account is created, a private key (Cryptography key) is being linked to that account number. This private key is being used to create a signature on the transactions.

A similar method then checks the signature and confirms that the signature was created by the account holder.

Each signature is unique and cannot be used in other transactions (Unlike the handwritten signature)

Bitcoin price is Volatile



Bitcoin price can increase or decrease overs a short period of time due to its young economy and novel nature. Bitcoin is a high risk asset and you should not consider it as a safe place to store money. 


What is a Bitcoin Wallet?

Bitcoin wallet is like your online bank account. It is an interface that gives you the ability to receive, store, buy and spend bitcoins. The wallets contain private keys (Secret codes that allow you to spend your coins. 

So we can say that a wallet is a website, hardware or an application that manages private keys for you.



Bitcoin Wallet types:

Working with Bitcoins you will have a similar wallet as you have in your pocket. 


The Bitcoin wallets are in different forms and shapes. (More information:

Desktop wallets

Hardware wallets

Mobile wallets

Web (Hosted wallets)


There are different Websites that you can create your wallet with. Some examples of Bitcolin Wallet providers are

 Hardware wallet service providers: provide users with a hardware to keep the Bitcoin Wallet even more secure.


How to buy Bitcoin? How to Sell Bitcoin? And how to change it into money?

 Download the app “Coinbase.” 

Coinbase is the world’s most popular way to buy and sell bitcoin, ethereum, and litecoin. Coinbase is a bitcoin wallet. With Coinbase, you can easily and securely buy and use bitcoin. 

Getting started with Coinbase is easy! Sign up with Coinbase and convert any supported currency to bitcoin with your bank account.

After creating an account in Coinbase and you logon; you can add your bank account and start buying bitcoins. The Bitcoin, Ethereum and Litecoin prices are all shown on your dashboard and updated at every moment.



in website you can both buy and sell bitcoins. That means that the Bitcoins in your account can change into money and deposited into your bank account. There is some fee involved.




Hot to send Bitcoins to another user?

Send money with a software wallet:

 Open your software wallet and click on the send tab. Type in the destination address for your intended recipient’s wallet.

 Try to choose a descriptive label so that you can track your bitcoin transaction. 

 Type in the value (Amount of money) you would like to be transferred.


Note: The transactions are irreversible!


Send money through a hosted wallet:

The transfer of money via a hosted wallet is almost the same as the software wallet. You log on to the website of your wallet and send money through it. The catch is that you will always depend on the security, reliability and availability of that hosted website. If the website is hacked or goes away; you will lose all of your money.





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