Does your cat say "meow" too often? Ask if she wants some bitcoins.
Bitcoin is on the rise these days, so no wonder your cat can't sleep at night and surfs through bitcoin-related media. As we know, cats are not allowed to have a bank account, so cryptocurrencies may look like a silver bullet for them.
I bet you don't want your little ball of fur to face dangers of the modern financial world. That's why I compiled this guide, so you can explain him the basics of bitcoin right from the beginning. The simplest way.
Explaining Bitcoin to your cat
First of all, Bitcoins do not exist in a physical sense. It is money for the 21st century designed to be found and spent online. The word "Crypto" in the name refers to the encryption, which system uses to provide secure and safe transactions between users and to establish the required level of trust.
The system is decentralised, which means no one, but the network of users control the flow of funds. The level of trust required is guaranteed by the blockchain technology, which ensures the transaction and the person on the other side are valid.
Confirmations are provided by other users called "miners" who generate a small amount of BTC as a bounty. Each time a miner's machine solves a mathematical equation, a pool of transaction is processed and confirmed. Resulting solutions from a bitcoin basis - the ledger, which is a huge log of all operations processed by the network. The total amount of bitcoins is capped by 21 million coins, which expected to be mined in the next decade.
The first cat's wallet in the world
The very important thing your cat needs to operate with bitcoins, is a wallet. The wallet is a user interface, which is connected to the network and able to collect and represent the data related to your balance and transactions. The Ledger data transforms into the numbers that you see on your screen.
There are three types of bitcoin wallets:
It's time to compare web-based to software products and make a conscious choice of which one to use. As always, a big amount of possible flaws and cons is involved, so make sure your cat understands them all.
Then let him find a reliable bitcoin wallet provider by using the guide. Remember, since bitcoins are digital only, the security is the key to the safety of finance.
You (or your cat) can also enhance the wallet security by following this simple instructions.
Shopping with BTC isn't always easy, because even though a lot of merchants now accept it, many still don't. Bitcoin debit card can be useful here to quickly exchange funds and spent fiat currencies instead.
Exchange fiat to BTC
The second big thing your cat should learn is how to exchange fiat currencies to BTC. Cats are in a great danger in this area, since a lot of scamming or suspicious services are involved.
The best way to find a reliable exchange is using Butty Bot: specify the country and choose from the list of exchangers. The biggest flaw of exchanges is increased rates and fees, so you need to check if your wallet provider already has his own exchange service to find more affordable rates and possibly escape fees.
If you're lucky to be our client, you can load the account by the direct bank deposit and then exchange fiat currencies to BTC for further shopping. You and your cat can be surprised by the bitcoin rates fluctuations - it can grow or fall by 10% in just a few hours. Bitcoin isn't controlled by anyone, but users tend to accuse services in influencing the prices. We've researched who really affect the price, so follow the link to learn more info on the matter.
Look for a catnip
Once all preparations are done and your cat has some BTC, it's time to purchase something. Although bitcoins are designed for online shopping, they can also be spent offline if you have a debit card or able to sent BTC directly to the merchant's wallet.
Try finding some shops around with Coinmap or use Coin Radar to find ATMs around the world and withdraw BTC from your card as a fiat currencies.
We also baked an Ultimate Bitcoin Traveller Guide to help you and your cat to prepare a trip using BTC only. You may want to also check it out to avoid landmines. Although bitcoin sometimes considered as money for criminals, there are a lot of legit merchants who accepts bitcoins on daily basis. Make your own research and don't let the gossips make a fool of your cat!
Welcome to the cat 2.0
Now, your cat is fully equipped to start it's own new cryptocurrency life and also aware of some specific details on bitcoin.
Use links from this article to find more information about each step and don't hesitate to share your questions about the cryptocurrency world in the comment section below.
Of course, cats can't use bitcoins and regrettably don't even think about it. Please take your sense of humor with you and use this guide for establishing your own happy experience with bitcoin. Or literally give it to your cat, who knows what may happen.