Rabu, 07 Oktober 2020

Trading Forex With Bitcoin: Benefits and Risks

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

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/

Which is the Better Investment, Bitcoin or Gold?

 Bitcoin is the first implementation of a concept called "cryptocurrency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing much about himself. The community has since grown exponentially with many developers working on Bitcoin.

Bitcoin Versus Gold: Which is the Better Investment? 

By NATHAN REIFF

For hundreds of years, gold has dominated the safe-haven asset arena, while bitcoin was launched just over a decade ago and has only achieved widespread recognition in the last few years. Below, we'll compare these two investment options head-to-head:

1. Transparency, Safety, Legality

Gold’s established system for trading, weighing and tracking is pristine. It’s very hard to steal it, to pass off fake gold, or to otherwise corrupt the metal. Bitcoin is also difficult to corrupt, thanks to its encrypted, decentralized system and complicated algorithms, but the infrastructure to ensure its safety is not yet in place. The Mt. Gox disaster is a good example of why bitcoin traders must be wary. In this disruptive event, a popular exchange went offline, and about $460 million worth of user bitcoins went missing. Many years later, the legal ramifications of the Mt. Gox situation are still being resolved.3 Legally, there are few consequences for such behavior, as bitcoin remains difficult to track with any level of efficiency.

2. Rarity

Both gold and bitcoin are rare resources. The halving of Bitcoin's mining reward ensures that all 21 million Bitcoin will be out in circulation by the year 2140. While we know that there is only 21 million bitcoin that exist, It is unknown when all the world's gold will be mined from the earth. There is also speculation that gold can be mined from asteroids, and there are even some companies looking to do this in the future.

3. Baseline Value

Gold has historically been used in many applications, from luxury items like jewelry to specialized applications in dentistry, electronics, and more. In addition to ushering in a new focus on blockchain technology, bitcoin itself has tremendous baseline value as well. Billions of people around the world lack access to banking infrastructure and traditional means of finance like credit. With bitcoin, these individuals can send value across the globe for close to no fee. Bitcoin's true potential as a means of banking for those without access to traditional banks has perhaps yet to be fully developed.

4. Liquidity

Both gold and bitcoin have very liquid markets where fiat money can be exchanged for them.

5. Volatility

One major concern for investors looking toward bitcoin as a safe haven asset is its volatility. One need look only to the price history of bitcoin in the last two years for evidence. At its highest point, around the beginning of 2018, bitcoin reached a price of about $20,000 per coin. About a year later, the price of one bitcoin hovered around $4,000. It has since recovered a portion of those losses, but is nowhere near its one-time high price point.

Besides overall volatility, bitcoin has historically proven itself to be subject to market whims and news. Particularly as the cryptocurrency boom swept up a number of digital currencies into record-high prices around the end of 2017, news from the digital currency sphere could prompt investors to make quick decisions, sending the price of bitcoin upward or downward quickly. This volatility is not inherent to gold for reasons mentioned above, making it perhaps a safer asset.

In recent years, a number of alternative cryptocurrencies have launched which aim to provide more stability than bitcoin. Tether, for instance, is one of these so-called "stablecoins." Tether is linked with the U.S. dollar in much the same way that gold was prior to the 1970s. Investors looking for less volatility than bitcoin may wish to actually look elsewhere in the digital currency space for safe havens.

Rabu, 03 Juni 2020

Get Free 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

Best 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.

Sabtu, 09 Mei 2020

Bitcoin Vocabulary

Bitcoin has created a new world of vocabulary to articulate its universe. Some terms are completely new (ex. Blockchain, Cryptocurrency, Proof of Work) while others adapt existing words for new purposes (ex: Wallet, Address, Mining). 

Formal Vocabulary

ASIC: An acronym for “Application Specific Integrated Circuit”. ASICs are silicon chips specifically designed to do a single task. In the case of bitcoin, they are designed to process SHA-256 hashing problems to mine new bitcoins.

BTC:  A common unit to describe one bitcoin, as USD represents one United States Dollar.

Bit:  There are 1,000,000 bits per bitcoin so 1 bit = 0.000001 BTC.   Cheaper items are denominated in bits.

Blockchain:  type of distributed ledger, comprised of unchangeable, digitally recorded data in packages called blocks (rather like collating them on to a single sheet of paper). Each block is then ‘chained’ to the next block, using a cryptographic signature. This allows block chains to be used like a ledger, which can be shared and accessed by anyone with the appropriate permissions.

Bitcoin:  Bitcoin with a capital ‘B’ is used to describe the network or protocol that bitcoin runs on, bitcoin with a lowercase ‘b’ represent the digital token or money that is used on the Bitcoin network.

Bitcoin Address:  Also known as a public key, is similar to an email address.  Give your bitcoin address to anyone who you want to receive a payment from.  It is best practice to use a new bitcoin address for each of your transactions.

Block:  A block is a group of bitcoin transactions that are being processed & confirmed.  Roughly every 10 minutes a miner will find a new block, which will confirm any bitcoin transactions that were processed during that 10 minutes.


Confirmation:  A confirmation means your transaction was processed by bitcoin miners and added to a new block on the blockchain.  It is generally accepted that after 6 confirmations your transaction has been set in stone globally and cannot be reversed by anyone.

Difficulty: In Proof-of-Work mining, is how hard it is to verify blocks in a blockchain network. In the Bitcoin network, the difficulty of mining adjusts verifying blocks every 2016 blocks. This is to keep block verification time at ten minutes.

Double Spend:  When a malicious user tries to send their bitcoin to two different people at the same time to pay for several services with the same bitcoin.  It is up to miners to decide which of the transactions are accepted into the network.   One transaction will receive confirmations, the other will be rejected by the network.  Most users never have to worry about double spend attacks, they are rare and difficult to pull off.

Mining:  Bitcoin mining is making computers do complex mathematical calculations for the Bitcoin network to confirm users bitcoin transactions in a block.  Bitcoin miners greatly increase the security of the network and are rewarded with new bitcoins and transaction fees for their efforts.

Full node: A node that fully enforces all of the rules of the blockchain.

Gas: A measurement roughly equivalent to computational steps (for Ethereum). Every transaction is required to include a gas limit and a fee that it is willing to pay per gas; miners have the choice of including the transaction and collecting the fee or not. Every operation has a gas expenditure; for most operations it is ~3–10, although some expensive operations have expenditures up to 700 and a transaction itself has an expenditure of 21000.

Hash Rate: Is a measurement of computer processing power of bitcoin miners.  Miners earn bitcoin for their share of the network hash rate, so they are incentivized to have the highest hash rate possible.  This works out for everyone because the security of the Bitcoin network increases as the network hash rate grows.

Node: Any computer that connects to the blockchain network.

Private key:  Every public key (bitcoin address) has a private key associated with it.  A private key is a secret piece of data that proves your right to spend bitcoins from your wallet.  Your private key(s) are stored in your computer if you use a software wallet; they are stored on some remote servers if you use a web wallet.  If you don’t encrypt your bitcoin wallet it makes it easier for someone to steal your private keys.  Anyone with access to your private keys can spend your bitcoin from any computer worldwide.

Proof of Authority: A consensus mechanism in a private blockchain which essentially gives one client (or a specific number of clients) with one particular private key the right to make all of the blocks in the blockchain.

Proof of Stake: An alternative to the proof-of-work system, in which your existing stake in a cryptocurrency (the amount of that currency that you hold) is used to calculate the amount of that currency that you can mine.

Proof of Work: A system that ties mining capability to computational power. Blocks must be hashed, which is in itself an easy computational process, but an additional variable is added to the hashing process to make it more difficult. When a block is successfully hashed, the hashing must have taken some time and computational effort. Thus, a hashed block is considered proof of work.

Protocols: Sets of formal rules describing how to transmit or exchange data, especially across a network.

Satoshi:  The penny of bitcoin.  1 Satoshi = 0.00000001 BTC  This is the smallest measurement of bitcoin.

SHA 256: The cryptographic function used as the basis for bitcoin’s proof of work system.

Smart contracts: Contracts whose terms are recorded in a computer language instead of legal language. Smart contracts can be automatically executed by a computing system, such as a suitable distributed ledger system.

Softfork: A change to the bitcoin protocol wherein only previously valid blocks/transactions are made invalid. Since old nodes will recognize the new blocks as valid, a softfork is backward-compatible. This kind of fork requires only a majority of the miners upgrading to enforce the new rules.

Token: A digital identity for something that can be owned.

Transaction block: A collection of transactions on the bitcoin network, gathered into a block that can then be hashed and added to the blockchain.

Transaction fees: Small fees imposed on some transactions sent across the bitcoin network. The transaction fee is awarded to the miner that successfully hashes the block containing the relevant transaction.

Wallet:  Where you store your bitcoins. A bitcoin wallet is a program that manages all of your bitcoin addresses and allows you to save or spend your bitcoin.

Common Slang

ALTCOIN = Any cryptocurrency other than bitcoin.
ASHDRAKED = A situation where you lost all your money.
BAGHOLDER = A person who buys and hold coins in large quantity hoping to make good profits in the future.
BEAR/BEARISH = Negative price movement
BTFD = Buy The Fucking Dip (an indication to buy a coin when it has dumped so hard)
BULL/BULLISH = Positive price movement
DILDO = Long green or red candles
DUMP = To Sell off a coin
DUMPING = Downward price movement
DYOR = Do Your Own Research
FA = Fundamental Analysis
FOMO = Fear Of Missing Out (A coin is pumping and you get the feeling it’s gonna pump more, so you buy high)
FUD = Fear Uncertainty & Doubt
HODL = Hold On for Dear Life
JOMO = Joy Of Missing Out
LONG = Margin bull position
MCAP = Market Capitalization
MOON = Continuous upward movement of price
OTC = Over The Counter
PUMP = Upward price movement
SAJ CANDLE = Huge green candle
SHITCOIN = A coin with no potential value or use
SHORT = Margin bear position
SWING = Zig zag price movement (Upwards and downwards)
TA = Technical Analysis
REKT = When you have a bad loss
REVERSE INDICATOR = Someone who is always wrong predicting price movements.
RSI = Relative Strength Index
WHALE = Very Wealthy trader/Market mover

Sources
https://steemit.com/blockchain/@mio31337/69-common-terms-in-blockchain-vocabulary 

http://bitcoindaily.org/bitcoin-vocabulary/

Is Bitcoin a 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.

All About 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.