Good Mullah How to start and run a bitcoin account

  • Published:

One bitcoin is worth a lot of Kenyan shillings.

play (Allswalls)

For eight years the Bitcoin cryptocurrency has played a key role in shaping how financial transactions take place. Though Bitcoin is still under experiment many people in the world over have embraced it. Moreover the young currency described as “novel” and is still under development.

One Bitcoin has an estimated value of Ksh. 830,631.03

Therefore here are simple steps that you can take to begin and rum your own Bitcoin account according to Bitcoin organization.

  1. You have to install a Bitcoin wallet on your phone or computer.

There are different types of wallets based on the platform you choose. These are:

Computer

  1. Linux-: Arcbitz, Bitcoin Core, Green Address, mSigna, Bitcoin Knots, BitGo, Armory Bither.
  2. Mac-: Arcbitz, Bitcoin Core, Green Address, mSigna, Bitcoin Knots, BitGo, Armory and Bither
  3. Windows-:Arcbitz, Bitcoin Core, Green Address, mSigna, Bitcoin Knots, BitGo, Armory Bither

Hardware

Ledger, Nano S, Trezor, Digital Bitbox, KeepKey

Mobile

  1. Android-: Airbitz, Arcbit, Bitcoin Wallet, Bither, breadwallet, Coin.space, Electrum, Green Address, GreenBits, Mycelium, Simple Bitcoin
  2. Blackberry-: Bitcoin Wallet
  3. iOS-: Bither, breadwallet, Coin.space, Green Address, Airbitz, Arcbit
  4. Windows phone-Coin.space

Web

Green Address, Coin.space, Coinapult, BitGo

Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.

  1. How to use Bitcoin

Bitcoin is a different way of transacting that can help you acquire goods and services. On the flip side you can get Bitcoin by accepting it as payment for goods and services.

  1. Processing payments-You can process payments and invoices by yourself or you can use merchant services and deposit money in your local currency or bitcoins. Most point of sales businesses use a tablet or a mobile phone to let customers pay with their mobile phones.
  2. Accounting and Taxes-Merchants often deposit and display prices in their local currency. In other cases, Bitcoin works similarly to a foreign currency. To get appropriate guidance regarding tax compliance for your own jurisdiction, you should contact a qualified accountant.
  3. Gaining Visibility-There is a growing number of users searching for ways to spend their bitcoins. You can submit your business in online directories to help them easily find you. You can also display the Bitcoin Logo on your website or your brick and mortar business.

Things you need to know before you start transacting with Bitcoin

1. You need to secure your wallet

 Bitcoin makes it easy to transact by exchanging money easily. It also gives you control of your money. However it may raise serious security concerns. Therefore Bitcoin says, “At the same time, Bitcoin can provide very high levels of security if used correctly. Always remember that it is your responsibility to adopt good practices in order to protect your money.”

2. Bitcoin price is volatile

Bitcoin prices can keep fluctuating therefore every user should keep themselves updated regularly on the current value.

 Consequently, keeping your savings with Bitcoin is not recommended at this point. Bitcoin should be seen like a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers can convert them to your local currency.

3. Bitcoin payments are irreversible

Transactions cannot be reversed once they have been made. You can only get a refund from the person who is doing business with you. Therefore it is highly recommended that if you are using Bitcoin, you should do it with trusted business partners. Another recommendation is that Bitcoin transactions must be confirmed six times. However it is required that every transaction be confirmed once.

Unconfirmed transactions are not secure.

4. Bitcoin is still experimental

Bitcoin is an experimental new currency that is in active development. Each improvement makes Bitcoin more appealing but also reveals new challenges as Bitcoin adoption grows. During these growing pains you might encounter increased fees, slower confirmations, or even more severe issues. Be prepared for problems and consult a technical expert before making any major investments, but keep in mind that nobody can predict Bitcoin's future.

5. Government taxes and regulations

Bitcoin is not an official currency. That said, most jurisdictions still require you to pay income, sales, payroll, and capital gains taxes on anything that has value, including bitcoins. It is your responsibility to ensure that you adhere to tax and other legal or regulatory mandates issued by your government and/or local municipalities.

Subscribe to the Pulselive Newsletter!
Do you ever witness news or have a story that should be featured on Pulse Live Kenya?
Submit your stories, pictures and videos to us now via WhatsApp: +254708994405, Social Media @pulselivekenya: #PulseLiveEyewitness & DM or Email: eyewitness@pulselive.co.ke.

Top 3

1 Life hacks 6 things you should stop doing if you want to be successfulbullet
2 Saving Tips Things you should never do with your savingsbullet
3 Life hacks 6 things you should stop doing if you want to be successfulbullet

Money