Bitcoins — What is it, where to get, how to earn money?
Bitcoins (singular: Bitcoin, short BTC) are an uncommon electronically currency, having unbelievable potential for earning money. The most important fact is, that no one have control about them. The price depends only on supply and demand. Bitcoins are available at most places in the world — including the United States, Belgium and France. Please read this post carefully, it is very important that you don’t miss this opportunity. Congratulation, if you already invested into them. The price breaks all records, but it is still not too late to enter.
Who generates Bitcoins?
Other than regularly currencies, created by banks to follow their rules and back upped with Gold, are the incoming and outgoing money transactions just in a shared database, called the Blockchain. All unconfirmed transactions become appended to a found block. The first transaction of a block is the coinbase transaction, a special one, generating coins from nothing. Bitcoin uses mainly SHA-256 two times, which generates a fingerprint of a stream of bytes. There is except trying no way to figure out the fingerprint of bytes. Each block contains the hash of the previous block, that is where the name of the database come from. Hence, it becomes harder to change any block in the chain, the more blocks become appended. To append a block to the Blockchain, the fingerprint need to be smaller than a number. This numbers, called target, is calculated from the previous blocks to find the next 2016 blocks in around two weeks, hence around one block each ten minutes. Searching for a Block with a matching fingerprint is called mining. The today difficulty of Bitcoin is very low, since there are many miner searching for blocks. It is not possible to mine Bitcoin effectively with ordinary computer hardware. (Nevertheless, other algorithms like Scrypt are often mined by such hardware). Bitcoin are mined by application-specific integrated circuits (ASIC), a devices, special created to search for blocks. Another way to earn money with Bitcoins is to buy and sell them directly.
History of Bitcoins
The Bitcoin protocol was mainly designed by an anonymous supposedly Japanese guy calling himself Satoshi Nakamoto. He found first Hacker and similar to helps him to develop the Bitcoin system. It was at begin easy to generate Bitcoins, but they were nearly worthless. Some tried to sell ten of thousands for around $50 and found no buyers. Day for day learned more people about them, and some black markets used the currency for anonymous payments. The biggest market place was the Silk Road, that got busted in 2013. With this bust, the average people learned about the coins, bought them and raised the price to $300. In the last four years continue the incrementing price to nearly $3.000, meanwhile reached it $5.000. That is, why it’s important to invest fast as possible into Bitcoins.
Why will the price raise?
That is pretty simple: The number of Bitcoins is technical limited to only 21 million (21.000.000). It becomes harder after each generated Bitcoin to generate the next one. That means the supply slow down while the currency is on demand. But no problem, you have not to pay up to $5.000 to invest. Bitcoins can become split up in fractals of at least one hundred millionths. This unit is called Satoshi, named after the inventors’ pseudonym. That mean, the lowest amount of you (theoretical) can buy and transfer are 0.00000001 Bitcoin, which is least than one US cent. A Satoshi/Bitcoin conversion table do you find at the end of this page. Bitcoins is not investment like a typical asset, you can always use them to buy stuff and services. More and more online shops accepting this kind of payments, for example the German computer hardware shop caseking.de, only to name one.
Advantages of Bitcoins compared with regular currencies:
- Sick of greedy broker and banks? The money is always yours. Unlike bank accounts can you always use immediate your Bitcoins and transfer to another wallet.
- It is privacy. The Bitcoin became popular as a currency for dubious goods and services. While we use it only for 100 % legal ways, it’s good to know that we are not controlled by a government.
- Your Bitcoins are safe. Nobody will have access to your money. On the other hand can nobody help you, if you lose access to your wallet. It is a usual way to split your Bitcoins between different wallets. When you transfer them, please check the target address two times. If you use a wrong address, you have no way to get the Bitcoins back, if the target doesn’t send them back.
Which trading strategies are possible?
Basically both short- and long term investments. Short term are more recommend, you will earn faster and more profits. It is pretty simple: Buy Bitcoins, sell them when the price is higher. You should currently not sell, until a plus of at least 5 %, better 10% price change. It is in fact so easy that anybody could do, you just also. When you buy Satoshi or Bitcoins with a price of $4.000/BTC, keep them in your wallet until the Bitcoin price reaches $4.200, better $4.400. When the price fall temporary, it is a great setting to buy more. Long term investment is the typical “Setup and forget”-strategy. You could buy Bitcoins today and look at your capital in one week or month. While it is possible, you will miss a lot of money, if you don’t react to the recently price changes (price peaks in both directories).
Can I trade Bitcoins with CFD?
CFD (contract for difference) are like Forex trading. You tell buying or selling an asset and get profits basing of the price change, but you do not own the asset. The current best platform to trade is the Calloway Crypto System.
How to get my first Bitcoins?
The first step is to create a free account at coinmama.com. This is the current most trusted market place for buying the encrypted money. This take fewer than two minutes and is a good preparation in the future. Please note, that you don’t need to deposit money or similar. It is a pure market place where you only pay when you purchase them. To buy Bitcoins, you must according to laws first prove your Identity. This take on average a quarter of an hour.
Get your wallet
Read now the full article: → Online Bitcoin wallets in the test. Which is the best one?
There are two usually ways for getting your personal wallet: Using an online service or a local client. We recommend an online service. The transactions are stored in a global network database, called the Blockchain. They have current a size greater than 100 GiB. A client need steadily to sync download the newest transactions. This causes in big harddisk space usage, traffic and is on most mobile devices impossible.
Get an online wallet
A free, easy and secure wallet is greenaddress.it. It doesn’t need any personal details to use. When you join, you get a long random passphrase. Please store this on a safety place. Then set up a PIN (password of 4 to 15 digits) and you get access to your personal wallet with an address to receive payments. Please note, that greenaddress shows your available money by default in milli-Bitcoins. 1 BTC is 1000 mBTC.
Creation of a local wallet
Please make sure to steadily backup your wallet to a safe place. When you harddisk get damaged, you may lose all your money. Using a crap software like Microsoft Bitlocker extreme increment the chance to lose it. The free open-source software ProxyCrypt is a safe alternative for additional security on Windows.
To get your local client, please visit bitcoin.org and download the client, depending on your operating system (Linux, Windows, Mac). Once you installed and started the software, it asks for the target storage location of data and start immediate to download the whole Blockchain. This can take up to 24 hours, but you can always close the app and resume later. The Application is self-describing. It contains only 3 tabs: One for sending, one for receiving and a transaction overview.
Satoshi/Bitcoin conversion table