What is Ethereum?

How to invest in Ethereum?

Another cryptocurrency that made huge growth in the financial world after bitcoin is Ethereum. It is a great alternative to Bitcoin, and after Bitcoin, it is being accepted by a lot of startups, businesses, and companies to complete the transactions. Some people often consider Ethereum as a diamond and much better than Bitcoin because it was developed after Bitcoin, and it overcame all the negative factors of Bitcoin. Also, it has both an industrial value as well as an intrinsic value. When comparing Bitcoin and Ethereum, Bitcoin is considered gold, and Ethereum is considered a diamond because people invest in Ethereum. After all, it has high industrial value and intrinsic value.

Because Bitcoin has been for more than a decade in the market, and Ethereum is comparatively new, people are enthusiastic to know about it, make investments in Ethereum and make it different from Bitcoin. Ethereum has its monetary value that is Ether, and like Bitcoin is mined, Ether is also mined. It provides an opportunity for people to create their own money by mining Ether. You can visit the immediate profit to trade Ethereum and other cryptocurrencies.

Like bitcoin, before you get into investing or mining Ethereum, a digital wallet is required to store and make transactions in Ethereum.

What is Ethereum?

Ethereum is a computer code or software that programmers develop and develop and run code of other applications. Similar to Bitcoin, Ethereum is also decentralized in nature. Now, you might be thinking if it’s a computer code, how it works or act can like money. Ethereum is based on blockchain technology that helps Ethereum conduct monetary transactions like bitcoin, making Ethereum a currency. Blockchain technology allows Ethereum to create applications that can work or be executed online on the cloud.

However, the monetary unit of Ethereum is referred to as Ether which is used to make transactions. There are various unique features of Bitcoin that make it different from Bitcoin, and all investors, hardware manufacturers, software developers, and businesses are attracted towards accepting Ethereum.

What makes Ethereum different from Bitcoin?

Bitcoin was designed to provide the general public with a medium of exchange. Therefore, it used the principles of blockchain technology and used them to provide a medium of transacting money. On the other hand, Ethereum is designed to smooth the progress of software processing by using make use of its monetary unit known as Ether. Ether isn’t designed with a motive to provide people with a currency. Still, it has become valuable because people are excited to learn about its technology and are eager to make investments in it.

The major features that Ethereum introduced were Smart Contracts and dApps or Decentralized applications. This has given developers a platform or technology to develop apps, and many apps have been developed by date on Ethereum. Today, Bitcoin’s value has reached the sky, whereas Ethereum is cheaper, and this made Ethereum better for financial companies to get involved in the crypto world.

How to invest in Ethereum?

Moving forward, after understanding the basics of Ethereum, let us now dive into the process or steps that are involved in investing in Ethereum.

Investing in Ethereum using Fiat Currencies

Through P2P Exchanges

The first way to buy Ethereum is through peer-to-peer exchanges by using fiat currencies. In P2P exchange, users can buy Ether anonymously without having to submit any personal details. P2P exchanges mean two parties are engaged, and both the buyers and sellers can decide on a price and way of making payment.

P2P exchange means buying Ethereum from a person or a party that has already purchased it and wants to sell it to another party. The best benefit of P2P exchanges is that buyers and sellers can agree on a price by negotiating with each other.

Broker Exchanges

Broker Exchanges allow Ethereum enthusiasts to buy or invest in Ethereum by using fiat currencies. There are only a few broker exchanges that are genuine and reputable and follow all the protocols or regulations. The top-notch broker exchanges that are across the world include Cex.io, Coinbase, and CoinMama.

Broker exchanges are the online marketplaces where the users need first to sign up, and then they need to confirm their identity by providing required personal details. After verifying your real identity, you can use fiat currencies and deposit funds in your broker exchange account. Once you have deposited funds, you can make purchases and then can transfer Ether into your digital wallet.

Investing in Ethereum using cryptocurrencies

Decentralized trading exchanges

The best way for users that want to stay anonymous can invest in Ethereum through decentralized trading exchanges. Decentralized exchanges mean no requirement of third parties, and in these exchanges, the Ether coins and private keys are not stored on servers but are provided to investors to secure them.

It is impossible for hackers to hack decentralized trading exchanges, and therefore, one must invest or trade Ether through decentralized exchanges. The transactions performed through these exchanges are completely anonymous as no third-party is involved in exchanges.

Centralized trading exchanges

Centralized trading exchanges are the exchanges that work or operate on regulations set by central authorities. If an investor already owns a type of crypto, they can consider buying Ether using that crypto tokens. Through centralized exchanges, a cryptocurrency can only be traded for another cryptocurrency, and that requires investors to pay a minimal transaction fee to make a purchase. The top-notch centralized crypto trading exchanges include GDAX, Kraken, and more.

The best thing about centralized exchanges is that it allows the trade of a variety of cryptocurrencies, and a huge number of investors can make trading coins easier.

The Bottom Line  The market of all the cryptocurrencies is volatile, and therefore, it makes Ethereum investments a risky investment, but sometimes it can be profitable if invested at the right time. It is an internet currency that can be transferred electronically with a volatile market; you must be careful while investing in it.

Source : https://www.planetcompliance.com/how-to-invest-in-ethereum/

Read More

Cryptocurrency for Beginners

Cryptocurrency for Beginners: 5 Tips and Tricks You Should Know

When people think of cryptocurrency, “complicated” is probably one of the first things that come to mind. The concept has been around for over a decade, but many still don’t have a complete grasp of it—and who can blame them?

When Bitcoin first emerged in 2009, it grabbed the attention of the finance and tech industries. For a while, people didn’t seem to care—until it started to cost $19,783 apiece back in 2017. This was perhaps the peak of the hype surrounding cryptocurrencies, and suddenly people wanted to be in on the trend.

Since the inception of crypto, other altcoins have appeared in the digital space to serve as competition. The likes of Ethereum, Ripple, Litecoin, and more have also become stable and worth investing in, as technology brings in the age of e-wallets and cashless payments.

What is Cryptocurrency Anyway?

Before moving further along, it would be helpful to get on the same page. Simply put, cryptocurrency is a type of money that only exists electronically—digital money, if you will. The technology behind it aims to solve some of the most significant pain points about traditional banknotes.

For one, it eliminates the need for having a governing body, such as a bank, to print and issue it. Transfers are done from person to person, not having to go through an intermediary. This also spells out instantaneous transactions that do not get imposed with high fees. Let’s run through the different advantages of owning cryptocurrency below.

Top Advantages of Cryptocurrency

Swifter, cheaper transactions – Instead of having to go through all the legalities and unnecessary steps when sending money to another person, a crypto transfer is relatively simple and straightforward. No agents, brokerage fees, commissions, and extra fees are needed, which just makes way for a fast, easy, and cheap transaction.

Secure and confidential dealings – Any transaction done with cryptocurrency is encrypted, safe, and basically anonymous. No one can get the chance to spy on your financial activity or get your details from your account history, such as banks would. Only you have the power to view your recent transactions.

Financial freedom for the unbanked – Globally, there are around 7 billion unbanked adults. This means they have no account with any financial institution or mobile money provider.

This could be because of the strict application process and requirements financial institutions require from their depositors, which can be a great hindrance to many. Since that does not exist with cryptocurrency, a person can easily make an account right away.

Quick international trade – What used to take days or weeks on end can be transferred in a matter of seconds with crypto. Since these are online transactions that do not need to be passed on from one bank to another, the waiting time for money transfers is reduced, no matter where you are in the world.

A growing investment opportunity – It has been a while since Bitcoin arrived, and now there are around 5,000 different altcoins in circulation today, serving over 20,000 markets.

This sector will only grow in the future as the world adapts and takes on the needs of the post-modern population. A number of these coins are already in use and circulation today, and it will be a great investment opportunity for those who want to participate in trading them.

5 Tips and Tricks You Should Know

If you are planning to invest in crypto for the first time, it is crucial to be aware of the new venture you are entering. Below are some of the things you should keep in mind to help you navigate the field better.

Find reputable news sources

There will always be lots of opposing opinions about cryptocurrencies, as well as the people who own them. Many think that crypto is just a fad, and those who engage in them will only find disappointment.

If you are already convinced that this can benefit you, then just stick to sources you can trust and avoid the noise of the non-believers. If you want to be a successful investor or altcoin owner, stick with the facts.

Be prepared for volatility

It is not a secret that cryptocurrency is still not as stable as the standard currencies—just go back to that inflation of Bitcoin to almost $20,000 apiece less than three years ago. You have to be agile with your decisions and think about what will be best for the current amount of assets that you have.

Even experienced crypto traders and owners still have no luck with mastering the trends of these virtual coins, so do not be shocked if you find yourself in the same boat.

Venture into other altcoins

Bitcoins are only one part of the story when it comes to cryptocurrency. Be careful to place all your eggs in one basket, as you may end up losing then gaining. Do your research and see which coins are thriving well, with the most-used cases that you can benefit from. What you will use your crypto for will be up to you—so choose your assets wisely.

Learn the uses of both hot and cold wallets

While crypto exists digitally, you can still have a way of storing them online and offline—through hot wallets and cold wallets. If you are a beginner, the ease of access to hot offline wallets will prove to be more useful and versatile. Cold wallets, however, do offer more protection from hackers and other miscreants. As part of your journey into diversifying your assets, learn to use both types of wallets.

Be vigilant

While cryptocurrencies have higher safety ratings than traditional money, it still pays to be on the alert. If you want to trade or own large amounts of altcoins in your mobile wallet, you have to be prepared against the risks and vulnerabilities that you are opening up yourself to.

Try to study different ways of handling your newfound assets and see how you can manage your money in a way that is both responsible and convenient for you.

Conclusion

Mastering the world of cryptocurrencies will take a while, so don’t pressure yourself to become a whiz on day one. Like any skill, it takes time, practice, and constant learning to find out how you can maximize the potential of your virtual coins—whether you want to use it for trading or daily transactions.

Source : https://www.planetcompliance.com/cryptocurrency-for-beginners-5-tips-and-tricks-you-should-know/

Read More

Mine Bitcoin

What is mining?

Mining is the process of creating valid blocks that add transaction records to Bitcoin’s (BTC) public ledger, called a blockchain. It is a crucial component of the Bitcoin network, as it solves the so-called “double-spend problem.”

The double-spend problem refers to the issue of needing to find consensus on a history of transactions. Ownership of Bitcoin can be proven mathematically through public key cryptography, which cannot be broken with today’s technology. However, cryptography alone cannot guarantee that one particular coin hadn’t previously been sent to someone else. In order to form a shared history of transactions, one needs to have an agreed-upon ordering that is based on, for example, the time of creation of each transaction. But any external input can be manipulated by whoever provides it, requiring participants to trust that third party.

Mining (and blockchain in general) leverages economic incentives to provide a reliable and trustless way of ordering data. The third parties ordering transactions are decentralized, and they receive monetary rewards for correct behavior. On the contrary, any misbehavior results in loss of economic resources, at least as long as the majority remains honest.

In the case of Bitcoin mining, this result is achieved by creating a succession of blocks that can be mathematically proven to have been stacked in the correct order with a certain commitment of resources. The process hinges on the mathematical properties of a cryptographic hash — a way to encode data in a standardized manner. 

Hashes are a one-way encryption tool, meaning that decrypting them to their input data is near-impossible, unless every possible combination is tested until the result matches the given hash.

This is what Bitcoin miners do: they cycle through trillions of hashes every second until they find one that satisfies a condition called “difficulty.” Both the difficulty and the hash are very large numbers expressed in bits, so the condition simply requires the hash to be lower than the difficulty. Difficulty readjusts every 2016 Bitcoin blocks — or approximately two weeks — to maintain a constant block time, which refers to how long it takes to find each new block while mining.

The hash generated by miners is used as an identifier for any particular block, and is composed of the data found in the block header. The most important components of the hash are the Merkle root — another aggregated hash that encapsulates the signatures of all transactions in that block — and the previous block’s unique hash.

This means that altering even the tiniest component of a block would noticeably change its expected hash — and that of every following block, too. Nodes would instantly reject this incorrect version of the blockchain, protecting the network from tampering.

Through the difficulty requirement, the system guarantees that Bitcoin miners put in real work — the time and electricity spent in hashing through the possible combinations. This is why Bitcoin’s consensus protocol is called “proof-of-work,” to distinguish it from other types of block-creation mechanisms. In order to attack the network, malicious entities have no method other than recreating the entirety of its mining power. For Bitcoin, that would cost billions of dollars.

How Bitcoin miners are paid

The network recognizes the work conducted by Bitcoin miners in the form of providing rewards for generating new blocks. There are two types of rewards: new Bitcoin created with each block, and fees paid by users to transact on the network. The block reward of newly minted Bitcoin, amounting to 6.25 BTC as of May 2020, is the majority of miners’ revenue. This value is programmed to halve at fixed intervals of approximately four years, so that eventually, no more Bitcoin is mined and only transaction fees guarantee the security of the network. 

By 2040, the block reward will have reduced to less than 0.2 BTC and only 80,000 Bitcoin out of 21 million will be left up for grabs. Only after 2140 will mining effectively end as the final BTC is slowly mined.

Even though the block reward decreases over time, past halvings have been amply compensated by increases in the Bitcoin price. While this is no guarantee of future results, Bitcoin miners enjoy a relative degree of certainty about their prospects. The community is very supportive of the current mining arrangement, and has no plans to phase it out like Ethereum, another major mineable coin. With the right conditions, individual Bitcoin miners can be confident that the venture will turn a profit. 

Though mining is a competitive business, starting out is still relatively easy. In the early years of Bitcoin, hobbyists could simply boot up some software on their computer and get started right away. Those days are long gone, but setting up a dedicated Bitcoin miner is not as hard as it may seem at first.

How to choose hardware for mining

The first thing to note is that for mining Bitcoin, your only option is to buy an Application-Specific Integrated Circuit device, commonly referred to as an ASIC.

These devices can only mine Bitcoin, but they are highly efficient in doing so. In fact, they are so efficient, that their introduction around 2013 made all other types of calculating mining devices obsolete almost overnight.

If you are looking to mine with common CPUs, GPUs or more advanced FPGAs, you will need to look into other coins. Though these devices can mine Bitcoin, they do so at such a slow pace that it’s just a waste of time and electricity. For reference, the best graphics card available just before the rise of ASICs, the AMD 7970, produced 800 million hashes per second. An average ASIC today produces 100 trillion hashes per second — a 125,000-fold difference. 

The number of hashes produced in a second is commonly referred to as the “hash rate” and it is an important performance measurement for mining devices.

There are two other main factors that should be considered when purchasing a Bitcoin mining device. One is the electricity consumption, measured in watts. Between two devices that produce the same number of hashes, the one that uses the least electricity will be more profitable.

The third measure is unit cost for each device. It is pointless to have the most energy-efficient ASIC in the world if it takes 10 years to pay itself back through mining.

Bitcoin has a fairly vibrant ecosystem of ASIC manufacturers, which often differ on these three parameters. Some may produce more efficient but also more expensive ASICs, while others make lower-performing hardware that comes at a cheaper price. Before analyzing which device is best suited for your needs, it is important to understand the other factors influencing profits from Bitcoin mining.

The economics of mining Bitcoin

Like the real estate business, Bitcoin mining is all about location, location, location. 

Different places in the world will have a different average price of electricity. Residential electricity in many developed countries is often far too expensive for mining to be financially viable. With the price of electricity often ranging between $0.15 and $0.25 per kilowatt hour, Bitcoin mining in residential areas runs too high a bill to remain consistently profitable.

Professional Bitcoin miners will often place their operations in regions where electricity is very cheap. Some of these include the Sichuan region in China, Iceland, the Irkutsk region in Russia, as well as some areas in the United States and Canada. These regions will usually have some form of cheap local electricity generation such as hydroelectric dams. 

The prices enjoyed by these Bitcoin miners will often be below $0.06 per KWh, which is usually low enough to turn a profit even during market downturns.

In general, prices below $0.10 are recommended to maintain a resilient operation. Finding the right location for mining is largely dictated by one’s circumstances. People living in developing countries may not need to go further than their own home, while those in developed countries are likely to have higher barriers to entry.

Aside from the choice of hardware, an individual miner’s profit and revenue depend strongly on market conditions and the presence of other miners. During bull markets, the price of Bitcoin may skyrocket higher, which results in the BTC they mine being worth more on a dollar basis.

However, positive inflows from bull markets are counterbalanced by other Bitcoin miners seeing the increased profits and purchasing more devices to tap into the revenue stream. The result is that each individual miner now generates less BTC than before. Eventually, the revenue generated trends toward an equilibrium point where less efficient miners begin to earn less than they spend on electricity, thus shutting devices off and allowing others to earn more Bitcoin.

Usually, this does not happen instantaneously. There is a certain lag, as ASICs can sometimes not be produced quickly enough to make up for the increase in Bitcoin price.

In a bear market, the opposite principle holds: Revenue is depressed until miners begin to turn off their devices en masse.

To avoid being outcompeted, existing Bitcoin miners must find a winning combination of location and hardware that would allow them to maintain their edge. They must also constantly maintain and reinvest their capital, as more efficient hardware can throttle older miners’ profits completely.

Read more : Comparison of mining hardware profitability

Read More

Trading Forex With Bitcoin

By NATHAN REIFF

The forex market is the largest and most liquid market in the world. It's a truly global currency market, open 24 hours a day, seven days a week, everywhere.

As if forex was not dynamic enough, cryptocurrencies like bitcoin have added a fascinating new dimension to currency trading. In recent years, many forex brokers have begun to accept bitcoins for currency trading, with some accepting a variety of other digital currencies as well. 

Should you jump in and begin using your hard-mined bitcoins in the forex markets? Find out the risks and benefits first.

A Standard Forex Trade

Before you consider whether to trade forex using bitcoin, it's helpful to understand how a conventional forex trade works.

A forex trade is simply an exchange of one currency for another at its current rate. Unlike tourists who exchange their home currency for local spending money, forex traders are trying to make money off the continual fluctuations in the real value of one currency against another.

Trading a 'Pair'

Imagine you are an American trader betting that the British pound will lose value compared to the U.S. dollar. This is called trading on the British pound/U.S. dollar currency pair (GBP/USD).

You deposit $100 with a forex broker. Assuming the rate of $1 = £0.5, you will receive £50 for your $100. If the GBP/USD rate changes to 0.45, you close the position to 50/0.45 = $111.11. That is, you make an 11.11% profit over your initial $100 deposit.

Most forex trading is conducted in a decentralized fashion via over-the-counter markets. However, the fact that the forex market is decentralized and that bitcoin is considered to be a decentralized digital currency does not mean that the two are equivalent.

The Impact of Decentralization

The key distinction is that, though forex exchanges might be decentralized, the currencies themselves are backed by central banks in the countries that issue them. It's the job of those banks to stabilize the value of their currencies and keep them stable.

Bitcoin and most other cryptocurrencies do not have that support.

A Forex Trade Using Bitcoin

Now consider an example of a forex trade using bitcoin. First, you open a forex trading account with a broker who accepts bitcoins. These include AvaTrade,1 eToro, and LiteForex.2 You then transfer 2 bitcoins from your digital wallet to the forex broker’s digital wallet.

If you want to trade using bitcoin, use only a locally regulated forex brokerage. And avoid using leverage until you know what you're doing.

Assuming the current bitcoin to U.S. dollar rate is 1 bitcoin = $7,500, your deposit of 2 bitcoins is worth $15,000. Now, assume that you want to take a position in British pounds. If the exchange rate is £0.5 = $1, you will receive £7,500. After some time, the GBP/USD rate changes to 0.45, and you square off your position to get $1,666.65 in your trading account. You have made a tidy 11.11% profit and you are ready to cash out.

The Bitcoin Effect

However, suppose that the bitcoin to U.S. dollar rate has changed during this period of time to 1 bitcoin = $8,500. When you withdraw your money in bitcoins, you receive ($16,666.65/$8,500) = 1.961 bitcoins.

Despite the fact that your bet on British pounds earned you an 11.11% profit (from $15,000 to $16,666.65), the fluctuation in the bitcoin to U.S. dollar rate means that you sustain a loss of 0.039 bitcoin or about -2.%. (Initial deposit of 2 bitcoins — 1.961 bitcoins = .039 bitcoin).

However, had the bitcoin to U.S. dollar exchange rate changed to 1 bitcoin = $7,000, you would realize a profit from both the forex trade and the bitcoin exchange. You would have received ($16,666.65/$7,000) = 2.381 bitcoins, a profit of 19.1%.

Increased Unpredictability

This hypothetical example illustrates the big reason to exercise caution when using digital currencies for forex trading. Even the most popular and widely used cryptocurrency, the bitcoin, is highly volatile compared to most traditional currencies.

In the year ending July 24, 2020, the value of a bitcoin ranged from $5,532 to $11,982.

This upredictability means that the risks associated with trading forex using bitcoin are that much greater.

Beyond the exchange rate fluctuations impacting profit and loss, there are other benefits and risks to consider before trading forex with bitcoin.

Benefits of Trading Forex With Bitcoin

Decentralized Valuations: A major advantage of trading forex with the bitcoin is that the bitcoin is not tied to a central bank. Digital currencies are free from central geopolitical influence and from macroeconomic issues like country-specific inflation or interest rates.

High Leverage: Many forex brokers offer leverage for bitcoin trades. Experienced traders can use this to their benefit. However, such high margins should also be approached with great caution as they magnify the potential for losses.

Low Deposit Amount: A trader can start with as little as $25 with some bitcoin forex trading firms. A few forex trading firms have even offered promotions like a matching deposit amount. Traders should check that the broker is legitimate and appropriately regulated.

Low Cost of Trading: Most forex brokers that accept cryptocurrency are keeping brokerage costs very low to attract new clients.

Security: You don’t need to reveal your bank account or credit card details to make a bitcoin transaction. This is a big advantage in terms of cost and financial security.

No Global Boundaries: Bitcoin transactions have no global boundaries. A trader based in South Africa can trade forex through a broker based in the United Kingdom. Regulatory challenges may remain a concern, but if both traders and brokers are willing to transact, there are no geographical boundaries.

Risks of Trading Forex with Bitcoin

Different Exchange Rates: Bitcoin trades on multiple exchanges and exchange rates vary. Traders must ensure they understand which bitcoin exchange rates the forex broker will be using.

U.S. Dollar Rate Risk: While receiving bitcoin deposits from clients, almost all brokers instantly sell the bitcoins and hold the amount in U.S. dollars. Even if a trader does not take a forex trade position immediately after the deposit, he or she is still exposed to the bitcoin-to-U.S. dollar rate risk from deposit to withdrawal.

Danger of Volatility: Historically, bitcoin prices have exhibited high volatility. In the absence of regulations, volatility can be used by unregulated brokers to their advantage and a trader’s disadvantage. For example, assume the intraday bitcoin rate fluctuates from $5,000 to $5,300 U.S. dollars per bitcoin. For an incoming deposit of 2 bitcoins, the unregulated broker may apply the lowest rates to credit the trader $10,000 (2 bitcoins * $5,000 = $10,000). However, once the trader is ready to make a withdrawal, the broker may use the lowest exchange rate. Instead of the original 2 bitcoins deposited, the trader receives only 1.88679 bitcoins ($10,000/$5,300 = 1.88679 bitcoins). The unregulated broker may be exchanging bitcoins and dollars at, say, $5,150, and pocketing the difference at the expense of the client.

Security Risks Inherent to Bitcoin: Deposited bitcoins are prone to theft by hacking, even from a broker’s digital wallet. To reduce this risk, look for a broker who has insurance protection against theft.

Risk of Leverage: Using leverage is risky for new traders who may not understand the exposure. This risk is not unique to cryptocurrency forex trading and comes into play in traditional forex transactions as well.

Asset Class Mixing: Cryptocurrency is a different asset class altogether and has its own valuation mechanism. Trading forex with bitcoins essentially introduces a new intermediate currency which can impact profit and loss in unexpected ways. Any money that is not locked down in a trader’s base currency is a risk.

Although cryptocurrencies like bitcoin are gaining popularity, there are still many associated risks. In forex trading, dealing in a decentralized currency that offers global transactions with no fees is an advantage. But the tradeoff is essentially adding a third currency to what was a trading pair.

Traders who want to take on that risk should use only a locally regulated forex brokerage.

Source: https://www.investopedia.com/articles/forex/081815/benefits-risks-trading-forex-bitcoin.asp

Read More

Bitcoin Worth Thousands of Dollars

By Scott Steinhardt

In March of 2010, an enterprising early Bitcoin adoptee named “SmokeTooMuch” offered to sell 10,000 bitcoins for $50. No one took them up on their offer. At the time, Bitcoin was worth almost nothing for more than a year. No markets existed to exchange bitcoins. Few people actually knew about or used the cryptocurrency. Bitcoin existed as little more than a really cool idea and nothing more.

Around May and June of the same year, the cryptocurrency became worth around 1 U.S. cent. As more people learned about the technology behind cryptocurrencies, Bitcoin’s value grew until it was worth one U.S. dollar in Spring of 2011.

Now, Bitcoin is worth roughly $2700. SmokeTooMuch’s $50 offer would be worth $27 million today. The cryptocurrency has seen rises, crashes, and everything in between. Yet in the last month, the cryptocurrency increased by a whopping $600+ in value.

But how did this new currency grow so fast in such a short amount of time. Better yet, why is it currently more valuable than gold?

1. Cryptocurrency adoption is up.

Thanks to apps and exchanges like Coinbase, cryptocurrencies are easier to buy now than ever before. These services also increase the profile of cryptocurrencies as viable, tradable assets, not unlike other currencies and securities. With an increase in accessibility and popularity comes an increase in demand, which the current supply of bitcoins can’t seem to keep up with.

2. Other cryptocurrencies are up.

Bitcoin isn’t the only cryptocurrency around. New rules governing Litecoin make it faster and easier to exchange. Ethereum, another popular cryptocurrency, recently split into two different currencies, raising its profile and lowering its price of entry. As Bitcoin grew in popularity, so did all cryptocurrencies, which are cheaper than 1 BTC.

3. Politics causes people leave traditional currencies.

The U.S. election, the British “Brexit” vote, and heightened regulations on Chinese money made people consider alternatives to their country’s currency. Since Bitcoin is decentralized and not governed by any one country, it’s not susceptible to major changes in valuation should a country do something that could make their money less valuable. Many people are using the cryptocurrency to keep their money safe from devaluation, or even to use it as they would paper money.

These are far from the only reasons for Bitcoin’s surge.

Like stocks, there are a million different factors that could impact Bitcoin’s price. For instance, popular cryptocurrency exchange Bitfinex is having trouble moving money from its Taiwanese based bank. Experts actually believe this is causing the cryptocurrency to increase in value instead of drop. This and many other related news items contribute to the rapid change in Bitcoin’s price.

Should you invest in Bitcoin?

Bitcoin is at all-time highs right now. Many cryptocurrency investors feel that it could come crashing down, as it has in the past. If that’s true, investing in cryptocurrencies now could mean losing a good chunk of your original investment. At the same time, the cryptocurrency could keep rising without fail, which would make your investment worth significantly more than before.

If you want to play it safe, you could wait for Bitcoin to come down in price, or invest in another, more affordable cryptocurrency. If you really want to invest in the cryptocurrency and think it might keep breaking records, you could always buy some ‘coins through Coinbase.

Source: https://moneybadger.stocktwits.com/why-is-bitcoin-so-expensive/

Read More

Get Bitcoins

Now that you’ve learned how to get bitcoin, you must be wondering if there is an easier way. To be fair, there are quite a few ways to get free BTC, but honestly, they are unlikely to make you prosperous.

Most common activities to get free bitcoin include:

• Bitcoin faucets
• Bitcoin reward programs
• Completing microtasks
• Affiliate programs
• Working for bitcoin

If you ever stumble upon a message that says, “Send me a certain amount of bitcoin or ether, and I will send you ten times that!” that’s just a fraud. Do not believe it, and if you can, report the post to the social media platform it was published on. How to get free bitcoins is a common question, but it is widely misunderstood — in most cases, no one will just hand you their money over.

However, you can earn free bitcoin, although working for it may not make it free. The first source of “free bitcoin” you’re likely to encounter is some sort of bitcoin faucet.

Bitcoin faucets

BTC faucets are websites that dispense small amounts of bitcoin every few minutes. It’s a PTC business (pay-to-click) that works the following way: a faucet attracts visitors to the website to generate views for ads, and in turn rewards users with a fraction of ad revenue. Naturally, you have to disable your ad-blockers and be ready to engage with an enormous amount of ads.

Faucets are the easiest, but also the cheapest way to earn BTC. You will get anything from few cents up to a dollar per hour. In most cases, getting enough bitcoin to be able to withdraw them will require a lot of your time, too, so you need to do your math whether it’s worth the effort.

Most free bitcoin faucets come and go, so finding a reputable one is like looking for a needle in a haystack. Yet, there are few which are more popular than others:

Cointiply

Moon Bitcoin

BonusBitcoin

FreeBitco.in

Bitgames.io

You need a bitcoin wallet to use a faucet. See our guide on how to store cryptocurrency safely to learn how to get one. A complete and up to date list of bitcoin faucets can be found at the Mac Observer.

Bitcoin rewards

Bitcoin reward (cashback) apps are the best-kept secret to earning free bitcoin. Whenever you buy something online, you may use one of the following apps to get back a percentage of your purchase in BTC:

- Fold app

- Lolli

- BitcoinRewards.com

- Coin Rebates

- Pei

Bitcoin cashback rewards are not only a great way to stack sats but also save money on your purchases. Be sure to check them out!

Completing microtasks

Completing microtasks, games, or other tasks to get free bitcoin are simply more advanced forms of faucets. For example, you can solve puzzles — there are several of those that if you solve, you get a certain amount of bitcoin. In this way, you’re not only watching ads for bitcoin but also are competing for it. If you don’t mind it, enjoy small games, and have plenty of time to kill, you just might fill your wallet with a few extra satoshis.

Working for bitcoin

We already established a notion that there’s no such thing as free bitcoin. In most cases, you have to trade your time and effort for it, and there is no easy way around it. So instead of chasing minuscule earnings, you might also try to get paid in bitcoin for your talents.

It is especially viable if you’re a freelancer, but you might also ask your regular employee to pay you in BTC. Alternatively, you can try one of these methods:

• Ask for bitcoin donations on your website or blog.
• Offer your services to companies do business in the crypto space.
• Look for a job ad at sites like Crypto.jobs, Crypto Jobs List, Cryptogrind, Jobs4Bitcoins, and similar.
• Ask for tips under your online posts or other contributions. For example, Tippin.me extension is a great way to receive bitcoin micropayments on Twitter.

Getting free bitcoin via affiliate programs

An often overlooked way to get a fair share of free BTC is to participate in affiliate programs. Like work, it will consume your time and energy, but if you’re committed, you’re likely to earn a full salary or even more.

Many bitcoin exchanges, wallets, and other products and services offer affiliate programs for everyone who can bring them paying customers. How you promote your affiliate links is a matter of your imagination — you can share them on Facebook, run ad campaigns, set up a niche website or enticing video blog. The only limit is your creativity and imagination.

There is no such thing as free bitcoin

Of course, there are many more alternative ways to get bitcoin. We’ve barely scratched the surface here, but other forms of obtaining bitcoin require more capital. For instance, you might want to become a crypto trader using platforms like eToro, Binance, HitBTC, BitMEX, and others. Alternatively, you can mine bitcoin using your own or rented mining gear. Last but not least, there are plenty of bitcoin casinos or lending services where you can earn interest on your BTC. However, these options are high-risk activities and should be treated with caution.

As you can see, there are many ways of getting “free” bitcoin. However, money doesn’t grow on trees, and if someone makes it look so, it actually isn’t free at all. Even getting free BTC from faucets, games, or microtasks takes time and effort. Meanwhile, the most profitable ways to get BTC require capital and sufficient knowledge of online marketing, blockchain technology, and cryptocurrencies. Remember to invest your time and money not only in bitcoin but also in learning.

From cryptonews,com

Read More

Bitcoin Wallets

By ERIC ROSENBERG, thebalance.com

While the concept of Bitcoin may be new to some people, this well-known cryptocurrency has been around for more than a decade. Bitcoin is one of many digital currencies that have become fairly common holdings among tech-savvy households.

Proponents of cryptocurrencies argue that digital currencies are easier and safer, and come with better privacy than traditional currencies. Because of its limited supply, Bitcoin has shown up on some people’s radar as an investment opportunity as well. However, it should be noted that cryptocurrencies are still risky investments.

If you understand the risks and you’re ready to move forward, the following best Bitcoin wallets can serve as good options for storing your bitcoins.

Best Bitcoin Wallets of 2020

1. Coinbase: Best Overall
2. Trezor: Best for Hardware Wallet for Security
3. Ledger: Best Hardware Wallet for Durability
4. SoFi: Best for Beginners
5. Robinhood: Best for Free Buying and Selling
6. Edge: Best for Mobile
7. Exodus: Best for Desktop

Coinbase

Coinbase is one of the easiest ways to buy, sell, and hold cryptocurrencies. With Coinbase, you can connect a U.S. bank account and easily transfer dollars in or out of your wallet. You can use those dollars to buy Bitcoin and other cryptocurrencies.

This digital exchange and online cryptocurrency wallet provider is great for people new to Bitcoin. It makes buying and selling very similar to buying and selling stock through your brokerage account. Coinbase wallets can hold more than 20 cryptocurrencies including U.S. dollars and the USD Coin pegged to the dollar.1

Another great feature is Coinbase Earn, which gives you free cryptocurrencies in exchange for watching videos and taking quizzes.

If you use Coinbase, watch out for high fees and costs. There are flat transaction fees plus a spread Coinbase charges when converting between currencies. Those can add up quickly. Also, while they are definitely not a common occurrence, Coinbase has experienced outages in the past that left users unable to buy or sell.

Type of wallet: Mobile and web

Purchase cost: None

Incorporated exchange: Yes

What We Like

Easy to start

Best known cryptocurrency exchange

Strong security track record

What We Don't Like

High transaction fees

Past incidents of downtime

Trezor: Best for Hardware Wallet for Security

Just like cash in your wallet, if someone steals your cryptocurrencies, you are probably out of luck. After high profile cryptocurrency hacks and losses in the past, it’s wise to keep a strong focus on the security of your cryptocurrency.

The Trezor hardware wallet is a device you store your bitcoins on. It plugs into your computer or smartphone. The device has a small screen you can use to manage your secure connection. Current models sell for $55 to over $500 depending on which one you choose. The cheapest version, a black or white plastic device called the Trezor One, is an incredibly secure device that includes multi-factor authentication and supports more than 1,000 digital coins.

Just make sure you never lose your Trezor or your Trezor password, otherwise your bitcoin could be gone for good.

Type of wallet: Offline hardware for desktop and mobile devices

Purchase cost: $55 and up

Incorporated exchange: Yes

What We Like

Ultra-secure offline storage

Supports more than 1,000 currencies

Easy-to-use touchscreen

What We Don't Like

Complex setup for less tech-savvy users

Cheapest version has fewer features

Ledger: Best Hardware Wallet for Durability

The Ledger Nano X and Ledger Nano S are hardware wallets that keep your bitcoins safe in an offline device. About the size of a USB flash drive, Ledger devices connect to your phone or computer to store and access your digital holdings. The device is surrounded by a stainless steel cover, which makes it very durable.

With the included Ledger Live software, you can check your balance, and send and receive currencies. Ledger supports over 1,200 digital coins and tokens, so you are far from limited to Bitcoin. Ledger Live even supports coin staking, in which you can earn rewards based on your balance.

The basic Ledger Nano S and Bluetooth-enabled Ledger Nano X cost $59 or $119, respectively.4 Nano S supports up to 20 currencies at a time while Nano X holds up to 100 at a time. Both use highly secure chips similar to the ones used in a chip-based credit card or passport.

Type of wallet: Offline hardware for desktop and mobile devices

Purchase cost: $59 and up

Incorporated exchange: No

What We Like

Extremely secure offline storage

Supports many currencies

Highest-end version includes Bluetooth

What We Don't Like

Complex setup for less tech-savvy users

No incorporated exchange

SoFi: Best for Beginners

SoFi is a financial company that offers banking, investing, lending, and other products. Within SoFi Invest, you can buy, sell, and hold bitcoins and other cryptocurrency. There is a $1 minimum to open an account.5 When buying crypto, SoFi charges up to 1.25% of the transaction as a markup. 

As of May 2020, SoFi supports five different currencies. That’s not as impressive as some of the digital wallet providers and dedicated crypto exchanges that offer hundreds or more. But the most popular coins are supported. SoFi Invest supports Bitcoin and four other cryptocurrencies.5

SoFi offers a great user experience and works well for crypto beginners. It’s good for buying and selling, but not as much for transfers to other wallets. Advanced users may find the platform and trading system at SoFi limiting. Fees are average.

Type of wallet: Mobile and web

Purchase cost: None

Incorporated exchange: Yes

What We Like

Easy to get started

Manage investments and crypto with one account

Many additional free finance tools and features for customers

What We Don't Like

Limited currencies available

Robinhood: Best for Free Buying and Selling

Robinhood started as a free stock trading platform and has expanded to include Bitcoin and other cryptocurrencies. Robinhood is both a wallet (to store currency) and an exchange like Coinbase (to buy/sell currency), so everything is in one place. However, you can't transfer coins to and from Robinhood with another wallet.

Robinhood is a mobile-first platform but has a desktop version, too. And what really sets Robinhood apart is that it’s completely free to use. There are no commissions when buying or selling Bitcoin.

Robinhood customers can currently buy, sell, and hold Bitcoin, as well as six other cryptocurrencies.

Also, it’s important to note that Robinhood has experienced some outages in the past, so it may not be quite as reliable as some other wallet providers.

Type of wallet: Mobile or web

Purchase cost: None

Incorporated exchange: Yes

What We Like

No transaction cost

Quick to get started

Manage on desktop or mobile

What We Don't Like

History of downtime

Limited currencies available

Edge: Best for Mobile

Edge is a mobile wallet for iOS and Android devices. You can quickly install it from the Apple App Store or Google Play Store to get up and running in just a few moments. Edge allows you to buy, sell, and exchange fiat (“real” money) and cryptocurrency from your phone.

One username and password gets you into your secure Edge account. Once logged in, you can access more than 30 different coins. These include top coins like Bitcoin, Ethereum, Ripple, Stellar, Tezos, and more.6

Integrations with the app allow you to do more than just exchange currency, which makes it a strong choice for mobile users. It taps into blockchain services that allow features like discounted gift cards. Its login system is very secure—so secure, in fact, that some other online sites use it as an authentication system.

Type of wallet: Mobile

Purchase cost: None

Incorporated exchange: Yes

What We Like

Easy to get started on mobile

Two-factor authentication supported

Support for more than 30 popular currencies

What We Don't Like

No desktop/web interface

Exodus: Best for Desktop

Exodus is a software wallet that lives on your laptop or desktop computer. There’s a mobile app version available as well. This digital wallet includes an attractive user interface that puts many investor-focused tools in your hands.

The desktop-first wallet, which also integrates with Trezor wallets, turns your digital currencies like Bitcoin and many others, into a portfolio with graphs and charts. You can exchange and store coins right on your desktop or in the app. It supports more than 100 different digital assets, too.7

There is no account setup, so your currency and wallet are just for you. Exodus gives you a private key to access your bitcoin, as well as other useful security tools to keep your assets as safe as possible. Remember, though, that your private key is stored on your computer. Make a backup of the key to ensure it’s safe just in case your computer is stolen or dies.

Type of wallet: Desktop and mobile

Purchase cost: None

Incorporated exchange: Yes

What We Like

Desktop and mobile versions available

Integrates with Trezor

High-quality user interface

What We Don't Like

No two-factor authentication

Sometimes high transaction fees

How Do I Use a Bitcoin Wallet?

Bitcoin wallets act like a virtual wallet for your digital currencies. Just as you could put dollars, euros, pounds, and yen in your physical wallet, you can put Bitcoin, Ethereum, Litecoin, and Ripple in your Bitcoin wallet.

Some wallets featured in this list allow you to buy and sell bitcoins with an integrated platform. Others are only made for storage. There are pros and cons to keeping your cryptocurrencies online or in an offline wallet. It’s up to you to decide on the right mix of security and convenience for your needs and comfort.

How Much Money Do I Need to Invest in Bitcoin?

If you’re looking to buy Bitcoin, it’s important to understand the costs and risks involved. There is no minimum purchase rule for digital currencies, but some exchanges have minimum order sizes and, when you take fees into account, small purchases may not always be practical.

Examples of places you can buy small amounts of Bitcoin are Coinbase ($2), Robinhood (0.00001 BTC minimum purchase), and SoFi (minimum $10 purchase).

It’s not a good idea to put more money into Bitcoin than you can afford to lose. While many people made millions when Bitcoin skyrocketed to nearly $20,000 in 2017, the price dropped below $3,500 one year later.8 Bitcoin is highly volatile and not backed by any specific company or government.

Pros & Cons of Digital Bitcoin Storage

Pros

Securely store Bitcoin and other digital currencies

Ability to buy and sell coins to take advantage of market fluctuations

Flexibility to keep your coins online and accessible, or offline and ultra-secure

Cons

Some exchanges charge high fees

Setting up some wallets can be complex

Hardware wallets require an initial cost

How Should I Choose a Bitcoin Wallet?

The best bitcoin wallet for your needs depends on your comfort with technology and your goals. Here are some of the best types of wallets for different situations:

Advanced users: Hardware wallets offer the best security and people very comfortable with computers should have no problem navigating the additional complexities. Trezor and Ledger are great choices for this group.

Beginners: Consider starting with an online wallet that charges very low fees for transactions. SoFi, Robinhood, and Coinbase are best for this group. If you have a strong investment background, SoFi, Robinhood, and Exodus are good choices.

Crypto enthusiasts: Consider a dedicated cryptocurrency wallet that gives you either added security or enhanced features. Coinbase, Trezor, Ledger, Edge, and Exodus are solid options.

Read More

Bitcoin a Very Good Investment

By Bitcoin.com

Note: This article is not investment advice. Instead, it aims to give you a better understanding of what Bitcoin investment involves.

The basics of Bitcoin investment:

You can invest in both Bitcoin Cash (BCH) or Bitcoin Core (BTC). They’re two separate digital currencies which can be bought and sold online.

There’s no single definition for Bitcoin investment: it depends on what you decide to do. For instance, you might be buying coins to store or trade, or you might try to earn coins by getting involved with Bitcoin mining.

As with any type of investment, do your research before spending any money on Bitcoin-related investments and make sure you never spend more than you can afford to lose.

Is Bitcoin investment safe?

A quick look at our Bitcoin price charts will tell you that both Bitcoin Cash (BCH) and Bitcoin Core (BTC) can have periods of high volatility.

That’s because they’re both new investment opportunities and, as market sentiment around the potential of cryptocurrencies fluctuates, so too does the price of every coin within the space.

Predicting these periods of volatility is hard even for experienced traders. But, by doing your research and learning about the different types of Bitcoin investment opportunities (and scams), you can make more educated investment decisions.

Investing through buying and storing Bitcoin

Most new investors simply want to purchase Bitcoin and, once they own it, they store it securely for the foreseeable future (aka ‘hodling’).

The goal here is that the Bitcoin bought will appreciate in value and, if this happens, the investor can sell their Bitcoin on for a profit.

There is no way to predict whether the Bitcoin you buy will increase in value. One of the biggest factors impacting price is usability, so keep up to date with industry news to learn more about the potential of different cryptocurrencies.

To purchase Bitcoin, you exchange fiat currency (e.g. USD) for either Bitcoin Core (BTC) or Bitcoin Cash (BCH).

Investing through active Bitcoin trading

Trading Bitcoin involves buying either Bitcoin Cash (BCH) or Bitcoin Core (BTC) and, instead of storing it, trading it frequently.

The goal here is to buy when the price is low and sell when it rises, meaning a profit is made when the Bitcoin is sold.

Bitcoin traders often do this over relevantly short periods of time, closely tracking the market price to determine when to buy and sell.

Since there is no way to predict the market, it’s wise to trade with caution and be aware that there are never any guarantees of making a profit.

Investing through Bitcoin mining

Bitcoin mining involves trying to ‘earn’ Bitcoin Core (BTC) and Bitcoin Cash (BCH) by lending computational power to the networks.

In short, when a computer successfully processes Bitcoin transactions, it’s rewarded with newly-created coins—meaning the owner of the hardware earns Bitcoin.

To start mining, you can either buy your own mining hardware or you can rent hardware through a cloud mining contract. Either way, joining a mining pool means you’re more likely to successfully mine Bitcoin (i.e. shared efforts for shared profits).

The profitability of Bitcoin mining depends on various factors. Above all, the value of the mined Bitcoin needs to be greater than the cost of running the mining hardware for miners to see a profit.

Avoiding Bitcoin investment scams

As with any financial landscape, the crypto space is rife with scammers looking to take advantage of new investors.

As a rule of thumb, any investment opportunity that seems too good to be true probably is. For instance, if a site or company claims it can double your Bitcoin or offers high interest rates if you ‘lend’ them your coins, they’re a scam.

Likewise, if you’re unexpectedly approached by somebody out of the blue promising to send you more Bitcoin if you first send them some, ignore it.

Many people fall victim to scams—especially when the fraudsters pose as well known figures in the crypto space through fake social media and email accounts.

Before committing to any investment, thoroughly research the company or website involved to establish whether they’re trustworthy.

Read More

Bitcoin Cash

What is Bitcoin Cash (BCH)?

In simple terms, it’s an online currency formed out of a dispute between Bitcoin (BTC) miners and developers. Now, that doesn’t mean it’s a poor imitation of the original cryptocurrency. In fact, when you really ask the question "what is Bitcoin Cash about", you’ll see why it’s a strong crypto in its own right.

Perhaps one of its greatest strengths is that it’s universal. Unlike many modern utility tokens that focus on one particular market, BCH as a currency token, is for everyone. Therefore, if you’re interested in how to get Bitcoin Cash and why it might be a positive investment, the following guide is for you.

Some key takeaways for Bitcoin Cash:

BCH was formed out of a hard fork on the original Bitcoin blockchain

Active since August 1, 2017

Larger block sizes mean BCH can process more transactions per minute than BTC

Just as BTC, the maximum number of BCH tokens is capped at 21,000,000

BCH is an offshoot of Bitcoin. In general terms, Bitcoin Cash performs a similar function and has the same overall goals as its predecessor. To put it another way, BCH is designed to be a digital decentralised currency unconstrained by governments or geographical borders.

Why was Bitcoin Cash Invented?

While BCH and BTC share many similarities, they’re also different. To examine this difference, we must look to the creation of this altcoin.

Despite being the most valuable cryptocurrency, some Bitcoin developers were unhappy with the state of the project. With other blockchains such as Litecoin (LTC) able to process transactions cheaper and more efficiently, many thought that a change was necessary.

In 2017, a hard fork was discussed. All blockchains have the ability to be forked, which basically means part of the original code is changed in some fundamental way. A perfect fork is where the entire community will shift to the new, improved blockchain. A split, is where there is a disagreement among members. This is what happened with Bitcoin in August 2017.

After developers found a way to increase the size of a block (i.e., the amount of transactions a block can hold), a fork was agreed. Those in the community who thought a new system was necessary moved over to Bitcoin Cash, while those loyal to the original system stayed with Bitcoin. The end result was a new digital token that was based on Bitcoin but had some important differences.

The Team Behind Bitcoin Cash

In practice, no one person is behind Bitcoin Cash. The decision to implement a hard fork on the BTC blockchain was a community decision taken by those working on the project.

How does Bitcoin Cash Work?

Before we look at how to get Bitcoin Cash, it’s important to understand how it works as a cryptocurrency and, in turn, an investment opportunity.

Comparable to the function that Bitcoin performs, BCH tokens are a form of digital currency. Thanks to decentralised technology, cryptography and Proof of Work (PoW) protocols, a network of miners can process transactions without requiring a single point of authority. This system is almost identical to Bitcoin. However, the main difference is that the blocks can handle more data (transactions) which, in turn, mean it’s easier and faster to process payments.

The end result is that, in some people’s minds, BCH is more effective as an online currency. In other words, it’s easier to send, receive and spend BCH tokens than BTC tokens. That makes it a better option for those wanting to pay for goods and services using crypto.

From an investment perspective, that’s important. As the world becomes familiar with digital currencies, more people will want to use it. That makes it an interesting alternative for those who’d previously considered buying Bitcoin.

How does Bitcoin Cash Compare to Bitcoin and How Safe is BCH?

As previously mentioned, the fundamental processes for BCH are the same as Bitcoin, with the main difference being the size of a block and the speed at which transactions take place. Bitcoin Cash has a devoted community and ranks in the top 5 crypto at the time of writing. The token has a tendency to mirror the price movements of its parent Bitcoin. If you feel that feel that Bitcoin is safe, you can be confident to extend this sentiment to BCH.

Can Bitcoin Cash (BCH) be used Anonymously?

Bitcoin cash can be used anonymously when transacting directly on its network. If you wish to exchange your BCH for other crypto or fiat currency, then you will have to go through an exchange. Many of these require you to provide evidence pertaining to your identity. AML (Anti-Money Laundering) and KYC (Know Your Customer) regulations exist to protect the interests of all parties and should be welcomed if we are to see the mass adoption of crypto for everyday use.

How can you Get Bitcoin Cash?

Now that you know how BCH came about, let’s look at how we can acquire this valuable, digital asset.

How can I Buy Bitcoin Cash?

There are two ways to get Bitcoin Cash: You can buy it or you can mine your own. If you’re technically minded, mining cryptos is a great way to obtain Bitcoin Cash, though it isn't really free, as mining hardware and electricity required to perform the task all costs money. The process of mining BCH isn’t overly complex, although it does take time and is beyond the skillset of most casual investors.

Therefore, the simplest way to get Bitcoin Cash is to employ the use an exchange. As one of the leading crypto coins on the market, you can buy BCH via any of the leading online exchanges. Regardless of whether you want to buy it with another digital coin via a crypto-to-crypto exchange or make fiat transactions, all the options are available.

How to Store Bitcoin Cash

The best way to store BCH tokens is via an online or offline wallet. Because this coin is linked to Bitcoin, you can use all the same crypto wallets for BCH as you would BTC. Some of the leading options are:

Ledger Nano S

Trezor Wallet

Exodus

BTC.com

Guarda

Alternatively, you can trade Bitcoin Cash CFDs (Contracts for Difference) via the eToro platform. If you do that, you won’t need to own the underlying asset, therefore, don't need to go through the complex process of setting up a wallet. CFDs allow you to earn money based on the price fluctuations of BCH.

Bitcoin Cash Price, Market Cap & Supply

Other than being more efficient than Bitcoin, the main advantage BCH has over its peer right now is its price. Unlike its older brother, Bitcoin Cash doesn’t cost thousands. Although it’s far from the cheapest crypto, you could pick up a single BCH token for around $311 in February, 2020. When you combine this with a supply cap of 21 million coins, there’s a lot of potential to make a handsome profit when you buy Bitcoin Cash.

Bitcoin Cash Advantages & Disadvantages

Advantages of Bitcoin Cash:

Based on well-established technology

More efficient than Bitcoin

Cheaper than BTC

Can be used by consumers

Disadvantages of Bitcoin Cash:

Still in the shadows of Bitcoin

Competing with other Bitcoin forks, such as Bitcoin Gold (BTG)

Should you Invest in Bitcoin Cash or Not?

If you’re a fan of Bitcoin then you’ll love Bitcoin Cash. Essentially the same but better in some respects, BCH has all the makings of a world-class cryptocurrency. When you combine that with fairly affordable prices and its potential in the ecommerce space, it’s certainly a crypto worth considering.

FAQ – Frequently Asked Questions about Bitcoin Cash

What is Bitcoin Cash?

Bitcoin Cash is an offshoot of Bitcoin that’s designed to be more efficient.

How can I buy Bitcoin Cash?

All the top cryptocurrency exchanges currently offer BCH trading options.

How much does Bitcoin Cash cost?

The price of BCH is always changing. In this guide, we can only cover what Bitcoin Cash is about and how Bitcoin Cash works.

Can I get Bitcoin Cash with a fiat currency?

Yes. Many major platforms give you the option to buy BCH fiats such as EUR, GBP and USD.

Will I make money if I buy Bitcoin Cash?

As a general rule, all crypto invests carry some degree of risk. However, this is a well-established project that has a lot of positive attributes.

Read More

Tips You Need to Know Before Investing in Bitcoin

2017 was very much the year for Bitcoin. It experienced exponential growth of around 1,400%, making early adopters of the cryptocurrency millionaires in the process. Although the value of Bitcoin dipped and plateaued slightly later, Bitcoin remains a hugely lucrative market to invest in. There must be a reason why Bitcoin has been the buzzword on the lips of many economists and financial traders, right?

Nevertheless, if you’re a novice when it comes to investing in Bitcoin and cryptocurrency in general, it’s vital that you do your research before parting with your hard-earned money. Our seven priceless tips will help to minimise the mistakes you make with your cryptocurrency trading.

1. Learn how to properly store your Bitcoin first

It’s important to learn to walk before you can run. Begin by learning the basics about the mechanics of buying and selling Bitcoin. You’ll need to read our reviews of all the leading Bitcoin exchanges first to discover the easiest and safest platforms to start buying Bitcoin. Coinbase tends to be a good starting point for any beginner investor, due to its intuitive interface and the ability to start purchasing other leading cryptocurrencies too such as Ethereum, Bitcoin Cash and Litecoin. As with all financial investments, it’s vital that you learn how to protect your assets. In this case, you’ll need to ensure your digital assets are comprehensively guarded against the threat of cyber-attacks and scammers. There are purpose-built Bitcoin wallets designed with security at the forefront. Ledger Nano S is the world’s most secure Bitcoin wallet, while TREZOR is also popular as it generates private keys to your Bitcoin wallet offline, away from prying eyes.

2. Keep your eyes peeled on the market cap

A common mistake newbie crypto-traders make is to make investment decisions based purely on coin price. In reality, the value of a cryptocurrency is only valid once you’ve taken into consideration the current circulating supply. If you’re considering buying Bitcoin, try not to focus too heavily on the current value of the coin and instead consider the percentage of the total market cap you are purchasing. The closer a cryptocurrency gets to its market cap, the greater the demand will be to sell at a later date.

3. Is it worth investing in Bitcoin mining?

The industry for Bitcoin mining has accelerated at a rapid pace. In the earliest days of Bitcoin, the average home computer could be used to crack the cryptographic puzzles and earn new Bitcoins. Unfortunately, in 2018, the only way Bitcoin mining is done profitably is within specialised data centres. These warehouses are jam-packed with machines built solely for the purposes of mining Bitcoin. A home mining operation would cost in the millions to set up today, which means it’s probably best to consider investing in Bitcoin that’s already in circulation instead.

4. Consider diversifying your crypto investments

It’s all too easy for Bitcoin investors to become infatuated with the cryptocurrency. The reality is that Bitcoin is just one of thousands of other cryptocurrencies available to invest in that could be used to offset some of your risk in Bitcoin. Smart cryptocurrency investing is the same as trading the stock markets or forex – you need a risk management strategy. Don’t put your eggs in one basket! Instead, hedge your bets by investing in some of the up-and-coming altcoins experiencing growth equal to or better than Bitcoin.

5. Set a clear profit target when opening a trade

As Bitcoin is still a relatively new market to invest in, it’s very difficult to know when the right time is to buy and sell your Bitcoin. The volatility in the value of Bitcoin is unlike anything you’re likely to have experienced before with financial investments, so it’s important that you set clear profit and loss targets when opening a trade on Bitcoin. Most beginner Bitcoin traders fail because they fall in love with their investments and don’t know when to let go of a bad position. By setting an exit point for profits and a stop loss should the trade go against you, it’s easier to minimise losses and live to fight another day. Typically, the most extreme daily movements in the value of Bitcoin can be up to 3%.

6. Be prepared to handle FOMO

The dreaded fear of missing out (FOMO) is also another newbie mistake among Bitcoin traders. Should newcomers to trading Bitcoin log in to their chosen cryptocurrency exchange and witness double-digit growth in Bitcoin in the last 24 hours, they will invest regardless in fear of missing out on further price moves. What these investors don’t consider is that they have often missed the value in the price move that day – buying the asset high, rather than the old adage of buying low and selling high. The most profitable Bitcoin investors accept that they cannot catch every positive market move on Bitcoin. Instead, they will bide their time and strike when the market conditions are most favourable e.g. the price has bottomed out and is ready to move up again.

7. Accept that Bitcoin is a volatile, high-risk opportunity

Finally, if you’re going to handle Bitcoin investing mentally, you need to get your head around the fact that it’s going to be a bumpy ride. The volatility in Bitcoin is enough to scare off even the most experienced of traditional investors. Nevertheless, if you’re prepared to adopt a strict risk management strategy and consider diversification in other cryptocurrencies when necessary, there is no reason why you cannot turn this high-risk investment opportunity into a profitable one.

Be sure to review the top 40+ exchanges available to buy Bitcoin from here. The platforms ranked at the top of the table will have the best user ratings and are therefore considered the most trustworthy exchanges to trade Bitcoin using fiat currencies. Kickstart your crypto-trading journey today and choose the Bitcoin broker that’s best for you at Best Bitcoin Exchange!

Read More

Biggest Cryptos

What is Сryptocurrency?

Сryptocurrency is a digital currency designed to function as a medium of exchange for financial transactions. Cryptocurrencies work in tandem with the so called ”blockchain technology” which is a secure public ledger that holds records of transactions in a decentralized way. The first cryptocurrency that came into existence was Bitcoin. Today, it is the world’s most valuable cryptocurrency in terms of market capitalization and you can buy it at almost every exchange out there. But the 5 Biggest Cryptos includes, in addition to Bitcoin, a few other interesting projects.

There are thousands of crypto coins and crypto tokens out there and each of them serves a particular purpose. This fact has made the cryptocurrency sector a new breeding ground for investors. However, it is not always easy to know which coins that are the best crypto coins to invest in.

Why Are Investors Flocking to Cryptocurrency?

In less than a decade, cryptocurrencies have grown to become one of the world’s fastest-progressing sectors. The total market cap for all cryptocurrencies is currently at $216 billion. That figure was under $15 billion in 2017. This represents an increase of almost 2,000% in just a year. There is no doubt about it – cryptocurrency attracts investors in great numbers. The unregulated nature of most cryptos affords them the opportunity to increase in value at unprecedented rates. In 2017, the value of Bitcoin increased to $19,783 making a ton of regular investors millionaires. Other factors inciting investors to cryptocurrency include:

Cryptocurrencies are decentralized;

Cryptocurrency transactions are highly secure and almost instant;

Transferring cryptocurrency does not require the participation of a third party.

It is established that cryptocurrencies are a quick and accessible source of investment. Let’s take a look at the 5 biggest cryptos out there today.

5 Biggest Cryptos – No. 1 – Ethereum

Currently trading at around $490, some say that Ethereum is a better version of Bitcoin. A primary merit of this cryptocurrency is the fact that it allows users to digitize any form of financial/business instrument on the almighty blockchain. Given its advanced functionality, not only investors favor the Ethereum, but the whole cryptocurrency community do so as well. Another killer feature of Ethereum is that start-up companies frequently use it for initial coin offerings and also developers use it for creating multi-purpose apps. This set of features makes Ethereum highly valuable and increases the probability that its price will go up.

In the same vein, there are a couple of improvements in place that set Ethereum ahead of other cryptocurrencies according to investors. Ethereum is well on the way to Proof of Stake, a streamlined approach to validating the transactions on the network. The Proof of Work algorithm that is utilized by most cryptocurrencies consumes a whole lot of energy and power during mining. The Proof of Stake system, on the other hand, is cost- and energy efficient. Once this system is in place, the price, security, and applicability of Ethereum is bound to go up.

Where to buy?

These exchanges are currently the top 5 exchanges at Cryptowisser where you can buy Ethereum:

PrimeXBT

BaseFEX

Simex

BitMax

Binance

5 Biggest Cryptos – No. 2 – Litecoin

Litecoin is another cryptocurrency that most investors are interested in holding. The current value of Litecoin sits around $100 and investors seem to think that it will only increase. Last year, Litecoin successfully debuted its Lightning Network. As a result it takes about two-and-a-half minutes to approve a Litecoin transaction, while in the case of Bitcoin you will be waiting for nearly ten minutes (i.e. four times longer).

Aside from this, investors lean heavily towards Litecoin due to a statement made by its founder Charlie Lee earlier this year. Charlie Lee tweeted that a huge surprise was on the way as regards Litecoin. This has definitely increased the hype and excitement surrounding Litecoin.

Other factors attracting investors to Litecoin include:

It is used for 30% of transactions on the dark web;

With Litecoin, transaction fees are almost zero;

Litecoin enjoys a high trading volume, which means that it is easy to find buyers and sellers for it.

Where to buy?

These exchanges are currently the top 5 exchanges at Cryptowisser where you can buy Litecoin:

PrimeXBT

BaseFEX

Simex

BitMax

Binance

5 Biggest Cryptos – No. 3 – Ripple

Ripple is another favorite among cryptocurrency investors in 2018. Unlike other cryptos, Ripple is still trading for less than a dollar, and it has the potential to increase in value exponentially. Ripple’s secure channel makes it a suitable pathway for the exchange of money, information and anything in digital form. Many banking institutions have also endorsed and adopted Ripple. Some of the banks that allegedly currently use Ripple are;

Axis Bank;

Cambridge Global Payments;

BBVA; and

Star One Credit Union.

Where to buy?

These exchanges are currently the top 5 exchanges at Cryptowisser where you can buy Ripple:

PrimeXBT

BaseFEX

BitMax

Binance

Changelly

5 Biggest Cryptos – No. 4 – Stellar Lumens

Stellar Lumens have come under the scrutiny of many cryptocurrency investors this year. Stellar’s scalability, speed and almost zero fees on transactions have endeared it to a large number of investors and traders. Despite being a freshman in the cryptocurrency space, Stellar has already partnered with the tech giant IBM to create a blockchain network that will unite banks worldwide. Since 2017, Stellar has managed to grow from $0.002 to $0.22. A lot of investors definitely still keep an eye on this cryptocurrency.

Where to buy?

These exchanges are currently the top 5 exchanges at Cryptowisser where you can buy Stellar Lumens:

BitMax

Binance

Changelly

CEX.io

CoinMetro

5 Biggest Cryptos – No. 5 – Bitcoin

Finally, this list wouldn’t be complete without mentioning the all-powerful Bitcoin – the first cryptocurrency that was introduced to the world. Bitcoin experienced a price increase of over 2,000% last year. Although is currently around $7,900, many investors believe that it is only bound to go up again. Some even predict that the price of Bitcoin can go as high as $250,000 by 2022. Bitcoin can be used at a lot of places where “ordinary money” was previously used. One of many such arenas is ' gambling industry. You can use Bitcoin to play Bitcoin Dice, a Bitcoin Crash Game, or essentially any other game you might prefer.

Where to buy?

Most exchanges offer trading in Bitcoin. You can actually almost pick any exchange in the world and you fill find Bitcoin-trading pairs there. These are currently the top 5 exchanges at Cryptowisser where you can buy Bitcoin:

PrimeXBT

BaseFEX

Simex

BitMax

Binance

Read More

Tips Trade Bitcoin

With Bitcoin’s growing popularity, trading in it can bring more profit. However, the process of how to trade Bitcoin is not necessarily easy. You need to get a hold of some of the essential tools available in the market. Aside from your knowledge, taking advantage of investment strategies are also crucial.

If you want a fast and simple way to wealth, here’s everything you need to learn about Bitcoin and the essential tips for trading in it successfully.

Bitcoin: What Is It?

Created in 2009, Bitcoin is the world’s first digital currency in the financial community. Along with blockchain technology, it runs through a peer-to-peer network of computers around the world.

As a first-time user, you need to install a Bitcoin wallet where you can make transactions in Bitcoin through the combination of encrypted numbers and figures. You can also use the wallet of an exchange you sign up with. Moreover, Bitcoin’s growth in the cryptocurrency market is due to its unique and distinct characteristics. As most money is digital these days, Bitcoin can also be used in different ways.

Reasons for its Popularity

Below are a few of the reasons why more people are becoming interested in Bitcoin:

Decentralized System – It means that transactions made in Bitcoin don’t have to go through a third party. You’ll have full control over your funds, and you don’t need to seek your bank or government’s approval before you can use your Bitcoin funds.

Anonymous and Private – Unlike the traditional currencies, Bitcoin is in the form of encrypted codes. This means that your identity will remain anonymous when making a transaction. Also, dealing with Bitcoin doesn’t require you to provide personal information. The Bitcoin address you generate is enough to complete a deal.

Volatile – Bitcoin prices can change rapidly and unpredictably. This can be the reason why it’s a popular investment vehicle, particularly in trading. Although the price has its ups and downs, Bitcoin’s volatility can still drive your profit and let you earn more, if you trade carefully.

Fast – The way Bitcoin works is quick and easy. This is especially helpful when making international payments. With Bitcoin, money transfers would typically take a few minutes before the money is received by someone on the other side of the globe.

Irreversible – When you send Bitcoin to someone, the process then becomes irreversible. This characteristic is crucial when it comes to trading. It means that anyone you’re trading with can’t defraud you by asserting that they never received the money.

How Can You Trade Bitcoin Successfully?

Given the characteristics mentioned above, Bitcoin has attracted many people to take an interest in the trading industry. Ultimately, a considerable number of people want to trade Bitcoin, even if they don’t have trading experience.

However, trading isn’t just a fancy thing. Aside from knowledge, you have to equip yourself with the essential techniques to carry out a successful trade.

Below are the essential tips you need to know before you trade Bitcoin:

1. Know The Reason For Every Trade Before You Trade Bitcoin

You can’t start trading successfully if you don’t know the reason why you’re doing it. For instance, you should have a goal for every trade in order to come up with a clear trading strategy. Even if you want to execute a trade on a daily basis, sometimes it’s more beneficial to do nothing than to make trading mistakes and incur substantial losses in the long run. To protect your profits, find a reason for every trade you make.

2. Only Invest What You’re Comfortable With Losing

Again, there are so many risks involved in Bitcoin trading. If you don’t plan your trades well, you find yourself losing a lot of money for nothing.

To avoid financial losses, you should never invest more than what you can trust to lose. Don’t go so far as lending money to trade in Bitcoin. Even if your first trade may seem profitable, don’t put all your funds at risk. This is one of the great tips to remember before trading.

3. Learn The Basics Of Chart Reading

If you’re a new trader, learning the basics of technical analysis can be helpful. Then, you must know how to read charts and analyze the market trends. If you’re knowledgeable in chart reading, you’re able to execute your trades successfully. Consequently, you can generate more profits, rather than incurring losses.

4. Stay Updated With Bitcoin News

Like in any battle, you should arm yourself with adequate knowledge before getting started with Bitcoin trading. This can mean keeping yourself informed and updated with the latest Bitcoin news.

By educating yourself with Bitcoin, you’re able to plan out the trading strategies to implement when you begin carrying out your trades.

5. Build A Group With Your Trading Partners

News surrounding Bitcoin isn’t the only way to learn information about the cryptocurrency world. For instance, you can create a reliable group of trading buddies with whom you can share your trading ideas. Regardless of how you build the group, connecting with other members can help you trade Bitcoin successfully. After all, the crypto community in general is a helpful community.

6. Don’t Let Emotions Overpower You

Trading Bitcoin comes with a significant challenge. You have to study the market to make sure you’ll gain profits. Also, when dealing with a highly volatile Bitcoin market, always keep in mind that Bitcoin price value fluctuates from time to time, within 24 hours. And when this happens, you have to handle your emotions very well and never panic if you’re unable to make profits. That way, you can carry out your trading efforts successfully.

7. Don’t Have Time? Try Auto Trading!

It doesn’t matter whether you are completely new to crypto or have been trading crypto since 2010. It is equally important for all of you to choose the best cryptocurrency exchange site for your individual needs. There is no “one size fits all”-solution, no single answer that is correct in all conceivable circumstances. None of the top 10 Bitcoin exchanges may be good for you, even if you just want to trade Bitcoins. Different people should trade at different exchanges. The absolutely easiest way to find the best cryptocurrency exchange site for you is to use the Exchange Finder. It’s a free tool that matches you with the best cryptocurrency exchange site for you based on your answers to a few questions.

However, if you have chosen your cryptocurrency exchange but you don’t have all the time you need to engage in trading, maybe you should go with an auto trading software, like Bitcoin Rush. By using trading software, you can get the most out of sophisticated toolkits with charts, training programs, and much more.

Conclusion

Ideally, these are the vital tips you need to remember when trading Bitcoin. Although you’ve probably heard this, it’s important to remember that investing in Bitcoin can be a risky undertaking. However, with the considerations mentioned above, you’ll get yourself ready before placing your trading position in the market.

Read More

Bitcoin Trading Mistakes

We first learned about blockchain in 2008. The source code was released as open-source software. The principles of the technology and operation of the first crypto were also made public. The first BTC transaction was made by American programmer Lazlo Khanesh. He paid 10,000 BTC for two pizzas! By today’s standards, the transaction’s value is over USD 82 million!

The use of BTC has evolved over the years. It has created an era of bitcoin investment or bitcoin trading. Forbes named bitcoin the best investment of 2013. Although Bloomberg named bitcoin one of its worst investments in 2014, the digital asset topped Bloomberg’s currency tables in 2015.

Bitcoin Trading Mistakes

Bitcoin trading is often mental warfare. You have to go against your inclinations or follow your gut. The crypto trading market is one of the volatile market in the world. For both new and experienced traders, making stupid decisions is not far off. So what are the horrible bitcoin trading mistakes you must avoid to make?

1. Not studying the market

This is the easiest trap to fall in. It is largely due to the fear of missing out or FOMO. It manifests itself in an early sale of your asset due to the fear of losing your profits. Other times, it is buying at the maximum because of the popular gut feeling. Relying primarily on your experience is not often accurate. Moreover, it is difficult when you involve shifting moods. Boredom or the need to trade can easily cloud your judgment and cause you to trade when you should not.

2. Over-studying

This is a n00b mistake and even experienced traders fall for that too. Especially during the crypto winter last year. Over-studying might result in the wrong trades.

3. Holding or Over-investing

Especially in an unpredictable market. Holding on to your asset may seem like a smart move. Buying low, holding and selling for a high price may work. After the first few times, it starts to feel natural. That is until you lose most of your investment.

4. Catching the bottom

This is when you monitor a plummet in price, wondering when it will stop. Traders do this in an attempt to enter into a trade at the bottom of a downtrend. It is not easy to catch the exact bottom of a trade. You might as well try to catch a falling knife.

5. Lack of Security

This is the most serious mistake possible in crypto trading. Hundreds of millions of dollars have been lost because traders left their digital assets on an exchange for too long. In the event that someone hacks the exchange or the exchance is subject glitches, you may lose your stake. Even if you have no plan to stay in the trade for a long time, you should carefully approach the security of your digital assets.

Concluding Thoughts

Recently, crypto traders have resorted to automation in order to minimize errors. Bitcoin trading software is now commonplace in the crypto trading industry. It is preset with rules such as timing, price or volume. This tool also analyzes historical data before trading. Trading software is automatic to analyze and find trading opportunities. The software automatically places orders helping the user to profit from the spread.

Asides minimizing horrible trading mistakes, crypto traders use bitcoin trading software for a number of reasons. This includes ease of use and lack of human error. Furthermore, there are several free digital assets trading software out there. A good example is Bitcoin Superstar.

Read More