FAQ – Frequently Asked Questions
What is Bitcoin?
Bitcoin is digital money used for secure and instant transfer of value anywhere in the world. It is not controlled or issued by any bank or government – instead it is an open network which is managed by its users. Much in the way email improved communication by making it fast and cheap, bitcoin is an improvement on existing payment methods which were not designed for the internet era.
Who invented it?
Satoshi Nakamoto is a pseudonym/name of a person or group of people who created the original Bitcoin client and author of the original reference white paper which details the protocol. Nakamoto participated in the network by helping with the code and mining until 2010 when he/they disappeared, never to be heard from again.
Who controls the Bitcoin network?
Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can’t force a change in the Bitcoin protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Bitcoin can only work correctly with a complete consensus among all users. Therefore, all users and developers have a strong incentive to protect this consensus.
What is Bitcoin Mining?
Bitcoin mining requires a computer and a special program. Miners will use this program and a lot of computer resources to compete with other miners in solving complicated mathematical problems. About every ten minutes, they will try to solve a block that has the latest transaction data in it, using cryptographic hash functions. the last Bitcoin will be mined in 2140 based on the block reward halving frequency of four years.
Do I need a Bitcoin Account Before Buying?
With Bitcoin, there are not really accounts. Instead, you should have a Bitcoin wallet. If you want to store bitcoins, then a wallet is where you keep them. In Bitcoin these wallets are not called an account but a wallet functions almost the same way. The only difference is you are responsible for the security if your wallet rather than placing the security in the hands of a bank or trust.
Where can I get a bitcoin wallet?
Dhicoins is not a wallet service – we simply send the coins to any wallet you choose. To download a bitcoin wallet for free, you can visit www.blockchain.info/wallet.
What is a Backup Phrase? How does it work?
The first thing you should do after creating a wallet is doing a backup. Losing access to your wallet is equal to burning your money. After you create your wallet for the first time, you are presented with a 12-word recovery phrase (The phrase may be between 12 and 24 words long). Some wallets display this phrase only once. Make sure you write down the words CORRECTLY and keep them safe. If somebody gains access to these words, he or she may be granted access to your funds (there are different scenarios which won’t be covered in this guide, but in general the phrase should be kept secret from other people). make sure you never share your private key with anyone or online.
Please consider the possibility of fire and other natural disasters. Having a fireproof storage box is a nice security add-on. If you ever need to recover your wallet from the 12-word phrase, you will only need to install a fresh copy of the wallet program on any device and enter the phrase at launch.
Then magic happens, and your wallet gets restored along with the funds in it. In the case of loss of the 12-word phrase, it is strongly advised to transfer your funds to a new wallet, which is properly backed up. Storing the 12-word phrase on your computer is dangerous because there will always be the danger of a security breach.
When is the Right Time to Buy&Sell ?
As with any market, nothing is for sure. Bitcoin is traded 24/7 and its price changes every second. Use tools like Bitcoin Wisdom or Cryptowatch to analyze charts from other Bitcoin trading sites. These charts will help you understand Bitcoin’s price history across the many global Bitcoin exchanges.
Bitcoin is also very unique compared to other markets in that it trades 24 hours a day and never stops. Most stock markets only open on weekdays from 9 AM to 5 PM. So many traders buy and sell bitcoins because it is a fun and fast market to trade.
Can I Buy Bitcoin Stock?
Bitcoin itself is not a stock despite it functioning somewhat like one. You can’t buy bitcoins through a traditional stock fund and instead have to buy bitcoins yourself. This may change in the future if a Bitcoin ETF ever gets approved.
What Happens When You Purchase Bitcoins?
Bitcoins are actually just secret digital codes. When you buy bitcoins, the seller is using a wallet to transfer the ownership of the coins to you. Once your purchase is complete, the codes are now owned by you and not the seller.
Can I Buy Partial Bitcoins?
Yes, of course! Each bitcoin is divisible to the 8th decimal place, meaning each bitcoin can be split into 100,000,000 pieces. Each unit of bitcoin, or 0.00000001 bitcoin, is called a satoshi. Most exchanges let you buy as little as $ 60 worth of bitcoins at a time.
How long does it take for a Bitcoin transaction to be confirmed?
On average, it takes about 10 minutes to find each block. The average block time can actually be slightly shorter or longer depending on if the total hash power of the Bitcoin network is growing or shrinking. transactions on the Bitcoin network itself aren’t controlled or confirmed by Dhicoins, However due to the increased popularity of the Bitcoin network confirmation times have increased quite a bit and can sometimes take op to an hour or more. If a transaction fails to confirm after 72 hours, the funds will be sent back to the original sender’s wallet.
How long does it take for Dhicoins to send my bitcoins once I’ve paid?
Dhicoins sends bitcoins immediately after both the client’s payment and wallet address have been confirmed. You may experience delays outside of business hours or in rare cases, regardless of the hours of operation.
What is a hash ID?
A hash (or the TX ID) is a unique address of your transaction in a blockchain. Mostly, the hash is a combination of digits and lower case (upper in Ripple) letters that represents a proof that money is sent. Whenever you make a payment, you receive a hash displayed in your wallet. It looks like this:
Hash should be located in a blockchain. Our support team may ask you to provide a hash. Sometimes it’s required to find your payment and resolve your issues, if any.
What To Do If You Have an Unconfirmed Transaction?
If your bitcoin transaction has not confirmed yet, you will need to wait for it to be confirmed by bitcoin miners. Since Dhicoins does not control confirmation times, there is unfortunately nothing we can do to speed up the process once your transaction has already been broadcast to the network. If the funds do not confirm in 72 hours, the mempool may drop the transaction and the coins should be returned to the wallet of the sender.
Can you cancel or reverse my bitcoin transaction?
No, bitcoin transaction can’t be canceled or reversed as it is directly connected to the bitcoin network.If you have sent the funds to the wrong bitcoin address by mistake, you may never see those funds again. The only way to get your funds back is if you know and have the contact information of the person who controls that bitcoin address. You can contact the receiver and ask to return your funds.
Bitcoin network transactions are designed to be irreversible and we don’t have control over them. Therefore, make sure you are sending your money to the right person and verify your transactions details before you click send.
Why does it say “Transaction does not exist”?
In the following cases, you may be told that your transaction does not exist:
1) Too low fee:
2) Node reboot: When a Bitcoin node is rebooted, synchronization of transaction data may be delayed. You can try again later. If the funds do not confirm in 72 hours, the mempool may drop the transaction and the coins should be returned to the wallet of the sender.
3) Previous transaction unconfirmed. Your transaction can’t be confirmed if previous transactions connecting to yours are unconfirmed. You’ll need to wait till all previous transactions are confirmed first.
How To Avoid Delayed Transactions?
Transaction fees vary by the size of your transaction, and not all transactions are the same size. The fee for same sized transactions also depends on how busy the bitcoin network is at the moment If you want very fast confirmations, set the dynamic fees to choose the fastest fee possible. Dynamic fees are calculated by the wallet by analyzing the current state of the network and determining an optimal transaction fee from there. Because the state of the network constantly changes, the optimal transaction fee calculated one day may not necessarily be the best fee for the next day. Most wallets have a feature which dynamically calculates the rate based on network congestion. you can look up the optimal fee rate on sites like bitcoinfees and set the fee rate for each transaction based on those sites.
How can I prove that a Bitcoin transfer was made?
By checking https://blockchain.info/ and copy and paste the TIN (Transaction Identification Number) you will be able to see the records of the coins that were sent to or from your address. You can also check any other site that offers bitcoin transactions also known as TIN’s.
How can I change Bitcoin into normal cash?
When deciding how to sell your bitcoin, you first need to consider which method best suits your situation: selling bitcoin online or selling bitcoin in person. Each option has its own advantages and disadvantages.
Why Should I Buy Bitcoin Instead of Mining?
A long time ago anyone could mine bitcoins on their computer at home. Today, only specialized computer hardware is powerful enough to do this.
Think about it like this: Should you buy gold or mine gold? Well, to mine gold you need big powerful machines, a lot of time, and money to buy the machinery. This is why most people just purchase gold online or from a broker. So Bitcoin is no different. You should just buy some if you want coins without trying to mine.
Why must I provide my personal details?
As part of dhicoins policy to prevent money laundering we request our clients to identify themselves if we cannot identify you we will not do business with you.