In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation.

Small businesses may like them because there are no credit card fees. Coinbase is a leading exchange, along with Bitstamp and Bitfinex.

But security can be a concern: bitcoins worth tens of millions of dollars were stolen from Bitfinex when it was hacked in People can send bitcoins to each other using mobile apps or their computers.

This is how bitcoins are created. Currently, a winner is rewarded with The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money.

Unlike bank accounts, bitcoin wallets are not insured by the FDIC. Wallet in cloud: Servers have been hacked.

Wallet on computer: You can accidentally delete them. Viruses could destroy them. Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed — only their wallet IDs.

Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.

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If you are found to be breaking any of the above rules or trying to gain an unfair advantage to abuse the service, your account will be deleted and your account balance forfeited.

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