Bitcoin, Bitcoin, Bitcoin everywhere right? Whether you meet your friend or log into Facebook, a discussion about Bitcoin is waiting for you. What is Bitcoin and how to get them, how to make money with Bitcoin, what is Bitcoin wallet there are tons of questions knocking at your mind right? Let’s make this Bitcoin thing simple for you and answer all the questions about Bitcoin.
Table of contents
- 1 What is Bitcoin?
- 2 The Characteristics of Bitcoin
- 3 How to Get Started with Bitcoin
- 4 What is Bitcoin Mining?
- 5 How to set up a Bitcoin Wallet
- 6 How to Invest in Bitcoin
- 6.1 Easiest Way to Buy Bitcoins
- 6.2 Alternative ways to Purchase Bitcoins
- 6.3 How to Invest in Bitcoin 2018
- 6.4 Why invest in Bitcoin?
- 7 The Bitcoin Price
- 8 How to Make Money with Bitcoin in 2018
- 8.1 1. Buying and Holding Bitcoins
- 8.2 2. Bitcoin Mining
- 8.3 3. Bitcoin Cloud Mining
- 8.4 4. Day-Trading Bitcoins
- 8.5 5. Bitcoin Affiliates
- 8.6 6. Completing a Bitcoin Task
- 8.7 7. Sell Service and Goods in Exchange for Bitcoins
- 8.8 8. Investing in Bitcoin Peer-to-Peer Loans
- 8.9 9. Gambling
- 8.10 10. Be a Market Maker
- 9 Conclusion
What is Bitcoin?
Bitcoin is kind of digital currency which is created and held electronically. Bitcoins are different from other forms of currency like Euros or Dollars, it is not printed. They are produced by people. In-fact is the first type of growing category of money called as “Cryptocurrency”.
What is the difference between Bitcoin and Normal Currencies?
Bitcoins are used to buy things electronically. For instance, it is just like conventional euros, dollars or yen that are traded digitally too. The prime feature of Bitcoin which makes it distinct from all other conventional money is that is decentralized. The Bitcoin network is just like Robin Hood which is not controlled by any institution. It is a sign of ease for most people because it indicates that a large bank is not able to control their money.
Who Prints Bitcoin?
The truth is no one prints Bitcoin. This type of Cryptocurrency is not physically printed by a central bank monitoring team and it is not accountable to the population. Bitcoin create its own rules. Bitcoin is a digitally created currency by a people community that anyone can join. Bitcoin is “mined” by a process with the help of computer power in a distributed network. The network has the feature of processing transactions made with the virtual currency. It effectively makes Bitcoin its own payment network.
Satoshi Nakamoto a software developer proposed Bitcoin for the first time. It was an electronic payment system based on a mathematical proof. The basic purpose of introducing Bitcoin or Cryptocurrency was to create a currency free from central authority which can be transferable electronically with very less transaction fees.
What is Bitcoin Based on?
Conventional currency is commonly based on silver or gold. For example if you handed over a Euro or Dollar at the bank, you could get some gold back. But the case it different with Bitcoins, they are based on mathematics.
People around the world are using different software programs which follow a mathematical formula to create Bitcoins. The mathematical formula is available freely which can be checked by anyone.
The Characteristics of Bitcoin
Bitcoin has many significant features which make it distinct from government-backed currencies.
1. Bitcoin is decentralized
The Bitcoin network is not controlled by single central authority. A machine which mines Bitcoin and process transactions make up a part of the network and the machines work together. It simple means that a central authority cannot cause meltdown or take your Bitcoin at any point. If any part of a network goes offline for any reason, your money still keeps flowing.
2. Bitcoin is easy to Set-up
You have to go through hoops to create an account at Conventional banks. You can simply set up Bitcoin address in seconds with no questions and not a single penny payable fee.
3. Bitcoin is anonymous
A single used can hold various Bitcoin addresses which are not linked to addresses, names or other personally identifying information.
4. Bitcoin is completely transparent
One of the best features of Bitcoin is that it stores every single transaction detail that happened in the network in general ledger known as the “blockchain”. This blockchain tell you all information about transactions. For instance a publicly used Bitcoin address can show anyone that how many Bitcoins are stored at this address. But they don’t know that it’s yours.
People can take measures to make their activities more ambiguous on the network like avoiding same Bitcoin address continuously and also not transferring lots of Bitcoins to one address.
5. Transaction fee is Nano-scale
A bank can charge you $10 fee for international transfers. But Bitcoin doesn’t charge you.
6. Bitcoin is Fast
The Bitcoin transfer or transaction is fast from other payment methods.
7. Bitcoin is non-Repudiable
If you sent a Bitcoin, you will not get it back unless and until the Bitcoin recipient returns it to you. If not, say good bye to the sent Bitcoins as they are not coming back.
How to Get Started with Bitcoin
Things you need to Know about Bitcoin
Before getting started with Bitcoin, there are many things you must know about Bitcoin. As we mentioned earlier Bitcoin is a different way of exchanging money than usual bank. You must inform yourself before making any serious transaction.
Secure Your Wallet
Just like real life, you must secure your wallet. Bitcoin makes it possible to transfer value everywhere in very simple way and it is in control of your money. But these great features also come with serious security concerns. But on the contrary, Bitcoin provides a high security level when used correctly. You are responsible to adopt good practices to keep your money secure.
The Price of Bitcoin is Volatile
The Bitcoin price an unpredictably decrease or increase in a short time period due to various reasons. In-fact it is one of the high risk assets and one should avoid storing money which you cannot afford to lose with Bitcoin. After receiving your payments, you can convert them to your local currency with the help of service providers.
Bitcoin Payments are not Reverse-able
Yes, the payments made with Bitcoins are irreversible. Only the person receiving the funds can refund it if he wants to, otherwise you cannot get it back. It means that you need to do business with trusted people and organizations or established reputation.
Bitcoin is not anonymous
Various efforts are essential to secure your privacy with Bitcoin. The transactions made with Bitcoin are stored permanently and publicly on the network. It means that anyone can see the transactions and balance of any Bitcoin address. But don’t worry the user identity behind the address remains hidden. It is one of the prime reasons that people avoid using same address for multiple transactions.
How to make Money off Bitcoin
Bitcoin is one of the best ways to make money nowadays. When we think about earning money with Bitcoin, the first two things that comes into our mind is Mining and Investing in Cryptocurrecny. However there are various other methods that people are suing to generate Bitcoins and cash.
What is Bitcoin Mining?
Bitcoin mining is the oldest way to make money with Bitcoin. Bitcoins are created by solving complex algorithms which create blocks that are added to the public ledger. The public ledger is the history of each and every transactions conducted with Bitcoin.
Briefly speaking, miners build the public ledger and permit the entire Bitcoin system to function. When they create new blocks, miners are awarded with new Bitcoins. It stimulates more miners to get it on the action that indirectly helps the Bitcoin community to grow.
Once there was time when Bitcoin mining was done by using home PC but nowadays mining is one tough task as the algorithms are more complex as compared to the past ones. You can perform mining in following ways.
Buy a special built mining rig
Join up a Bitcoin mining pool
There are perceptions about the Bitcoin mining that it no more profitable due to the high energy cost. But mining is still performed at even more larger scale using numerous mining equipment.
Couple of years ago, no one was interested in buying Bitcoins but nowadays, I think there is no one that doesn’t want to invest in Bitcoins. The price of a Bitcoin is increasing day-by-day. Today the price of a single Bitcoin is $14000, yes it is true. Imagine if you had invested in Bitcoin when it worth $250, today would be a millionaire. Think wise before investing in Cryptocurrecny because the price can boost and fall too in few minutes.
How to set up a Bitcoin Wallet
What is Bitcoin Wallet?
A Bitcoin wallet is just like a bank account which allows you to receive and store Bitcoins and also send them to others. There are two types of Bitcoin Wallets.
It is wallet that can be installed on a computer or a mobile device. Such type of wallet gives you complete control over your coin’s security. However, sometimes they can be tricky enough to install and maintain.
A Web or Hosted Wallet is wallet which is hosted by a third party. This type of wallets are simple to use but you need to find a trusted provide to maintain proper security to protect your coins.
Here are four main wallets for beginners.
It is web wallet with a simple design and various very handy features which makes it an excellent choice for beginners. You can receive and send Bitcoins using email and sell and buy Bitcoins directly from Coinbase. This full-featured android app allows access to all account features on the go.
It is a software wallet which enables user to set-up a high level of security quickly. User is given a twelve word phrase during the installation process that allows him to recover all your Bitcoins in the process that your computer fails. By default, your wallet is also encrypted which helps to secure your coins from hackers. Electrum is available for Linux, Windows and OSX.
Bitcoin Wallet for BlackBerry and Android
Such type of Bitcoin Wallet mobile app is best for those who are out for mobility and security. The versions are available for both Android and BlackBerry OS. This software wallet helps you to retain complete control over Bitcoins. It works well with NFC and QR codes. Always backup your wallet using the “Backup Wallet” feature or your coins is in high risk.
Blockchain.info is one the easiest and quickest ways to get Bitcoin Wallet. It is another web wallet just like Coinbase which provide simple and quick setup along with mobile access through their Android app. The wallet also provides various other useful features to the Bitcoin community.
How to Invest in Bitcoin
If you don’t know about the benefits and risks of investing in Bitcoin, this is guide will help you about how to invest in Bitcoin. As we all know Crypto-currencies exist in an unregulated and decentralized digital world without any protection or involvement by a central bank. It is most appealing aspect of Bitcoin trading. You can buy and sell Cryptocurrecny anonymously. There are very few middlemen taking a cut of transactions.
The good news is you can buy fractions up to the eight decimal place of a Bitcoin. It means that you don’t need to invest $17000 for a Bitcoin. In order to invest in Bitcoin, you need to set a Cryptocurrecny wallet first. Coinbase, Bitfinex and Bitstamp are few well-known sites for setting Bitcoin wallet. After establishing your wallet, connect your payment source to it such as a credit to debit card, a bank account via two factor authentication. Use tool like Google Authenticator as it is important to rely on text-based authentication which can be weaker to cyber theft while investing in Bitcoin.
When you purchase a Bitcoin, it stays in your digital wallet until you trade it in various ways.
Easiest Way to Buy Bitcoins
The popular and easiest ways to buy a Bitcoin is through digital wallets, Bitcoin wallets. There are different types Bitcoin-based wallets available and you need to be seriously careful about the selecting according to your needs. Some wallets are device-specific whereas others are web-based.
Coinbase is amongst the most famous digital wallets used worldwide to buy Bitcoins. All you need is to sign up and connect a bank account to it. A user can buy using a valid credit card number. Coinbase accepts Visa and MasterCard.
Before a Bitcoin transaction, Coinbase always show a user the current value of digital currency in U.S dollars. If you are making a withdrawal from your Coinbase account, you can select the funds to go to either a PayPal account or linked bank account.
The third-party Cryptocurrecny wallets are known to be hacked which results in permanent loss of funds. So it is necessary to protect your Bitcoin wallet properly. Security is vital for Bitcoin wallets or you will lose everything. Create back-ups for stolen wallets or computer crash problems. Wallets should be encrypted as if anyone wants to withdraw Bitcoins, they must know a password. Don’t forget your password in any case. Bitcoin passwords are critical because unlike bank accounts, there no customer services line where you can reset your password.
Alternative ways to Purchase Bitcoins
There are many other ways to buy Bitcoins. Bitcoin Depot, in conjunction with Bitcoin Wallet Airbitz offer users to purchase Bitcoin with cash. All user need is to set up an account and deposit cash in the ATM. Scan a QR code using special scanner linked to the ATM and within few minutes, your purchased Bitcoins will be present in the Airbitz account. You can also use Bitcoin Investment Trusts to buy Bitcoins.
How to Invest in Bitcoin 2018
Are you thinking of investing in Bitcoin in 2018? There are basic fundamentals of Bitcoin trade you need to know before investing in Bitcoin. In this short informative article, we are going to share following aspects of Bitcoin.
The Basics of Investing in Bitcoin
Why you need to take it seriously
How to Buy Bitcoin
How to protect and secure Bitcoins after investing
Why Bitcoin is getting Popular?
The world is relying on the internet nowadays. So it is no surprise that Cryptocurrecny like Bitcoin is getting more and more attracting for investors. Bitcoin is open to the entire world and provide opportunity to everyone to probe into the new asset class.
Investing in Bitcoin is a tricky task but if you are smart enough to understand how Bitcoin works, you are almost there.
Why invest in Bitcoin?
Isn’t it silly to assume that a single Bitcoin worth thousands of dollars? So the question is what makes it valuable?
Bitcoins is scarce and useful?
For example, the amount of gold is limited on the earth. With new mining of gold, there is less gold left behind and naturally it is harder and even more expensive to find and mine.
Same is the case with Bitcoin. There are only 21 million Bitcoins available. So with the passage of time, it is becoming harder and harder to mine. Besides being scarce, Bitcoin is very useful. It provides sound and predictable monetary policy which can be verified by everyone. The sound monetary policy of Bitcoin is one of the most essential aspects of the Cryptocurrecny. It is possible for anyone to see when new Bitcoins are created or how many of them are in circulation.
Bitcoins can be sent from any part of the world to anywhere else in the world. No bank has the authority to block your payment or close your account. In-fact, we can call Bitcoin censorship resistant money”.
If you are able to understand the potential impact of Bitcoin, then it is not difficult to understand why investing in Bitcoin is a handsome idea.
The Bitcoin Price
There is not official price set for Bitcoin. The price may increase or decrease with time. CoinDesk’s price index is a useful resource. Nowadays the price of Bitcoin is over $16000.
What is the proper time to invest in Bitcoin?
To be honest, there is no predicted time to invest in Bitcoin. There are slow downfalls and very fast increase in the price of Bitcoin. Tools like Cryptowatch and Bitcoin Wisdom can help to analyze charts and understand the price history of Bitcoin.
Bitcoin is global digital currency which can’t be affected by any country’s financial stability or situation. If you are thinking about investing in Bitcoin then it is necessary for you to think on a global scale. Don’t make a decision on what is happening in a single country.
How to Invest and Buy Bitcoins
Well, buying a Bitcoin depends on your country. Developed countries like the United States offer more option with less difficulty. For instance, Coinbase is one of the world’s largest Bitcoin brokers which are available in Canada, United States, Singapore, United Kingdom and most of the Europe.
How to Protect Your Bitcoins?
Scammers, hackers and thieves are always after precious things like Bitcoin. So it is vital to secure your Bitcoins.
Here are recommended ways to protect your Bitcoins using Bitcoin wallets.
TREZOR is hardware wallet made to secure Bitcoins. It helps you to generate Bitcoin private keys offline. You can visit official website of TREZOR for more information.
Ledger Nano S
It is a Bitcoin security company which offers a large range of secure Bitcoin storage devices. Ledger Nana S is the most secure Bitcoin wallet of Ledger. You can visit official website of Ledger for more information.
Always use a Bitcoin wallet to keep your Bitcoins which you control only. For example, if you give $5000 worth of gold coins to your friend. He can easily disappear with these gold coins forever.
As we know Bitcoins are on internet, so it is even easier to steal and very hard to trace and return. Storing Bitcoin in a wallet is the only way to protect and secure them.
Investing in Bitcoin Mining
The Bitcoin mining industry is getting bigger day-by-day. Once there was a time when mining was done with home computers but now there are specialized data centers for mining. Such datacenters are warehouses filled with professional computers for Bitcoin mining purpose only.
If you are new Bitcoin user then it is not a profitable investment in Bitcoin mining.
As we mentioned above, it is essential to know how Bitcoin works before investing money. Take a sometime to research about Bitcoin, how it works etc and then invest wisely to get more out of the Cryptocurrecny.
How to Make Money with Bitcoin in 2018
New Year 2018 is about to knock and everyone has his own new plans. If you are planning for how to make money with Bitcoin in 2018, this article can help you a lot. Almost everyone knows about the increasing demand of Bitcoin. A person who is not aware about the worth of Bitcoin probably wonders “why people are so crazy about Bitcoin”. Well Cryptocurrecny is still a mystery for most people. Here are top 10 ways to make money with Bitcoin in 2018.
1. Buying and Holding Bitcoins
Buying and holding Bitcoin is one of the wisest ways to make money. Take a look at past few months’ reports about people who bought and held Bitcoins. They are now enjoying the fruit of their wise investment and patience. The price of a Bitcoin was $0 in 2009 and now it is crossing $17000. Yes it is true you can check its rate online. Buy a Bitcoin and hold it for the right time. You will surely earn healthy amount with this Bitcoin money making method. We have mentioned about both the online and the offline Wallet methods to keep your Bitcoins secure.
2. Bitcoin Mining
For beginners, Bitcoin mining can be a complex task. That’s why it is not advisable for Bitcoin starters to begin with mining. Bitcoin mining involves complex machines which are expensive in terms of money and electricity. The consumed electricity permits it to solve mathematical algorithms in exchange for Bitcoins.
3. Bitcoin Cloud Mining
Bitcoin cloud mining is another best way to make money with mining. Such type of mining is a simple process of mining Bitcoins but it involves a remote data center and shared processing power for mining activities. The benefit of Bitcoin Cloud mining is that you don’t need expensive mining hardware for the process. It helps you to make money with Bitcoin mining without investing in mining hardware, software, hardware and all related things. User can also use online mining calculator to estimate one’s profit easily.
4. Day-Trading Bitcoins
Day-trading Bitcoin can help you to make money with Bitcoin. It is very significant to know about the Bitcoin financial market. Also keep tab of the latest updates about the market to buy or sell Bitcoin on right time. It is essential to know the trends and dynamics of the market for day-trading. It involves buying the Bitcoin when the currency is low and then you wait for the Bitcoin price to increase before selling it.
5. Bitcoin Affiliates
Bitcoin affiliate may not be the fastest way to get Bitcoins quickly but it is a trusted way to get some of them to your wallet. All you need to refer a friend to the Bitcoin world. The reward may be small for this action but you can get some part of the cake for sure.
6. Completing a Bitcoin Task
The method is just like the Bitcoin affiliates but there is a small difference. The user has to create videos, games, complete online promotional offers, fill out surveys, tests app and so on to engage users. As soon as you complete the certain task, you can make money.
7. Sell Service and Goods in Exchange for Bitcoins
This technique is quite easy and perhaps one of the best ways to make money. All you need is to sell your goods and service and you are get paid in Bitcoin. You can sell anything you want in exchange for Bitcoins.
8. Investing in Bitcoin Peer-to-Peer Loans
All you need is to lend money to beginners or small-scale entrepreneurs without any intermediary. The person you lend your Bitcoins in turns pay back as per agreement you made with him.
For gamblers, this option can be very best. There are various Bitcoin casinos offering the Bitcoin services. Winning can take you to gain some Bitcoins easily.
10. Be a Market Maker
The option is ideal for you if you like to trade your Bitcoins for fiat currencies. All user need is to sell their Bitcoin in exchange for the local currency. There are many sites that offer such services.
Making money with Bitcoin is neither easy nor hard. It needs your time and investments. You can use the above mentioned ways to make money with Bitcoin or can create your own way to jump into the Cryptocurrecny world.
Bitcoin is indeed one of the wisest invest one can make nowadays. But just like every other things there are some drawbacks of it. There are certain things which can keep you in the game. You must be aware of the current market status of Bitcoin if you are interested to invest in Bitcoin. For example, few weeks back the price of Bitcoin was moving around $12,000. But then suddenly it started climbing. The current price of Bitcoin is over $18,000 and Crypto Experts are predicting that it will cross the line of $20,000. Now image a person that invested in Bitcoin few weeks ago will be enjoying his right investment. Secondly you must have proper information about how to secure and maintain your Bitcoins. We have discussed this in detail in above section. If you follow the right directions, you will be soon enjoying the magic of Bitcoin.
Remember, there are no check and balance in the prices of Cryptocurrecny. They can be touching the bottom at one minute and next minute it will sky rocketing. So, never jump into the ocean without knowing its depth. The easiest way is to following those who successfully invested and got profit from Cryptocurrecny like Bitcoin. There are tons of online blogs and printed magazines available in markets that can help you understand about the logic of Bitcoin. You can join discussion forums like Bitcoin.reddit.com to get latest updates about Bitcoin. So, keep your eyes open, think before investing, protect your Bitcoins with Bitcoin Wallets and enjoy the Bitcoin World.