- Bitcoin - Everything you should know before investing in it In last few months we all have heard…
Bitcoin - Everything you should know before investing in it
In last few months we all have heard terms like bitcoin, cryptocurrency and blockchain. The hype itself has created curiosity amongst us about these terms. Well, not everything you hear is true about these but there are some major factors and forces which allure you and others to invest in it. Before you do that, build some understanding about these terms, how they work and which bitcoin sites you should trust for your investments.
What is Bitcoin & Blockchain?
Let's start with the first one first. Blockchain is the name given to the technology which has given us the valuable cryptocurrencies. Amongst all the available cryptocurrencies in the world, Bitcoin is the very first digital decentralized currency or you can say the best ever known cryptocurrency where blockchain technology is being used. It allows the user to enjoy fast transactions and transfers online.
Cryptocurrency is a way or medium for money exchange but available digitally only. It mainly relies on the encryption techniques which are used to create the monetary units as well as used for the verification of funds.
Blockchain is not limited to just bitcoin or cryptocurrency, it has far more applications. Blockchain is just like a digital, decentralized ledger which keeps track of all the records related to transactions which are taking place across the peer-to-peer network. The most important benefit of using such a technology is, users can transfer assets online without needing a centralized third-party.
Blockchain technology is a next-generation business process improvement software which businesses have started incorporating. Technologies like Blockchain are quite promising as they have the ability to improve the overall business processes which occur amongst the companies and lowers the cost of trust. That is the reason, it offers a higher return for every investment as compared to other traditional interval investments.
According to a recent survey, most of the experts think that by 2025, bitcoin and those currencies which comes under cryptocurrency will become mainstream.
Coming back to Bitcoins, no one knows who exactly created it but they appeared way back in 2009 from a developer named Satoshi Nakamoto. Though he disappeared after it, but left the bitcoin fortune behind. Since it was the first cryptocurrency, all other digital currencies created after it are named as alternative coins or Altcoins. Peercoin, Litecoin, Ethereum, Feathercoin, Monero, Bytecoin, Ripple, Reddcoin, Dash, etc. are some of the top 100 crypto currency in the world.
The biggest advantage of investing in Bitcoin is, it can be stored offline in a person's system. This is known as Cold Storage which secures the currency from being taken by anyone else. In case of storing the currency on the internet (hot storage), the risk of its being stolen is high.
But on the other hand, if the person lost the access to his hardware that stores the bitcoins, the amount or the currency will be gone forever. An estimate tells that till now, almost $30 billion in terms of bitcoins are being misplaced or lost by the investors and miners.
No matter what, Bitcoins are everywhere on the news, on the top list of every investor and is getting its popularity each day.
How Bitcoins work?
Bitcoins are entirely virtual coins which need no bank to store just like the ordinary money. One can self-contain it and still get the value for it. As soon as you own one, it behaves like a gold coin; they can be traded similar to the gold nuggets you store in your pockets. One can utilize bitcoins to buy goods as well as services online or you can simply invest in them and side it, so that as the value increases in the upcoming years, you can enjoy the profit.
Since these bitcoins are stored digitally in the digital wallets, one can transfer it one personal wallet to another. Consider the wallet as a small personal database which you can store on your computer drive as cold storage or you can store on your Smartphone or anywhere online as hot storage.
There is no forgery in the creation of bitcoin, as it is computationally intensive to create a bitcoin. It's not easy for the counterfeiters to manipulate the system. Though one can hack the wallet or your storage to get the bitcoins, it's very rare and is very difficult to do.
List of Top bitcoin wallets
Here is a list of some of the best bitcoin online wallets which you can use for storing, buying and selling the bitcoins. Have a look:
Mycelium Bitcoin Wallet
It is considered as one of the best bitcoin wallets available in the market. Using this app, one can easily send or receive bitcoins with the help of their smartphone. It allows cold storage integrations with some of the hardware bitcoin wallets like KeepKey or Trezor. It also has a feature to help you in managing the private keys along with the secret numbers which led you to spend the bitcoins.
If you remain confused with the private keys, then Copay is the best option for you. It works on open source and is a multi-signature wallet offered by BitPay, to help you by giving you greater control over your private keys. Its multi-signature technology makes sure that the bitcoin wallet is secured and controlled by more than one private key as well as a user. While performing a transaction, authorization will require either one, few or all of the private keys
It is the most popular bitcoin exchange service provider used globally by the users. Both merchants and consumers are using it to transact a number of digital currencies including the Bitcoin, Litecoin, and Ethereum.
Being user-friendly and open source wallet, it is best suited for beginners. It has a very easy design and intuitive software, which makes it the best option for those who are just starting to use bitcoin.
For those who want a little more privacy, Airbitz is the best option. The unique and best feature of Airbitz is, it is completely a decentralized wallet. In simple words, no one can access your money or data, whether it's third-party or the company behind the wallet. It is best in providing security and anonymity. So, if you are looking for the same then you are at the right place.
It is the very first mobile Bitcoin app which is designed to make the usage of Bitcoin easy. There was a time when the use of such apps was limited and only a few such apps were available in the market. It doesn't have any fancy feature like the bells and whistles available in the newer apps. While using this app, you can directly scan the QR code and can easily make the payment. One can go for instant bitcoin purchase with this wallet, which is another big advantage of using it.
It offers something to everyone. It is fast and easy to use. It also has multi-signature features along with top-notch security and privacy features.
It claims to be the most private and anonymous wallet available in the market. It offers a military level of encryption. One can avail it with the alpha release on Android phones.
Once you chose the wallet, you can make easy bitcoin purchase or can use it to spend bitcoin. more than 100,000 merchants now accept it worldwide, it will take more time to blend with the people. The value of a bitcoin is very volatile and it keeps on fluctuating on a daily basis. Therefore its suggested to survey the open market first, to know the price of bitcoin, so that you can have estimate that you will get this much while investing the amount or will get the amount while selling a bitcoin.
It helps the user to accept bitcoins for their business. It stores the bitcoin, helps in converting it as well as in spending them as dollars just with the aid of BitPay card feature. With it, it's very easy to manage you bitcoin finances and transactions. it is just like checking the TV for worldwide news.
List of best bitcoin sites
Since the bitcoins are so much in the hype, there are a number of sites which claims to be trading in bitcoins but in reality, only a few of them are genuine. It can even create confusion amongst the investors, therefore we are listing some of the best bitcoin purchase sites which you can use for trading bitcoins.
It is one of the most trustworthy websites available in the market for buying and selling bitcoins. The main reason for its popularity is the method it is using for its business i.e., dollar cost averaging. While using Coinbase, you can automate the purchase of bitcoins on a weekly or monthly basis. Its platform is quite simple to use even for the beginners. It won't support any kind of dubious activity so those who are having some crazy ideas in their minds, need to be aware of it. They have very strict policies and the owners of the websites make sure everyone abides them.
Its moreover a social media network for those people who are dealing in bitcoins. It provides a medium for the sellers to connect with the buyers. After signing up, you will be redirected to the page which will be country specific, so that you can easily choose the seller or the buyer. The site uses a built-in escrow system to provide protection to all the users and to make sure you get your payment.
It is a best place to buy bitcoins online for those who want to deal individually rather than getting involved with any company. But the only disadvantage of this site is, scammers can get in and allure users in their trap. Since, no one wants to get involved in a fake transaction, its suggested to be very careful while using this platform.
It's another bitcoin service provider which is solely dedicated to bitcoin trading. It's simple to use and used by various bitcoin traders worldwide. Don't worry about the legitimacy of the site. It is amongst the first bitcoin exchanges to clear any sort of autonomous audit, that means all your transactions will be safe on the site. Being a bitcoin trader, you will love this site.
You can even set up a 2-factor authentication for your account to keep it safe. In case you won't do that, chances of your account getting competing wiped out are high. Anyone can buy bitcoin instantly online from the site, just by registering on it.
It is the very first licensed operator or Bitcoin. It's been 5 yrs when it came into existence, since then, it has built its own reputation. Using this exchange one can buy bitcoin online with credit card or can even buy bitcoin online with a debit card. It is a huge plus point for those who are not using PayPal or any other payment method. Another advantage of using this exchange it, in case you want to withdraw your bitcoin, you will get physical gold in return. It is best for people who want to keep the gold, for any crisis.
It is a HongKong based company and best suited for buyers as well as sellers of bitcoin. You won't see any flashy logos or cool effects on this site. It's a practical site and easy to use. It won't take long to understand it's working. It's a better, much easier platform for those who are new in trading. It will help a novice to pick up at a fast speed.
Anyone can use any of these bitcoin purchase sites.
How to make anonymous bitcoin purchase?
There are people who want to buy bitcoins but don't want to use their ID's for the same. For such people, here are some bitcoin websites. They can use these sites to buy Bitcoins. Some of them also have bitcoin accepted here logo showcasing on their sites to tell people that they are into bitcoin trading.
CoinMama is the best option to purchase bitcoin with a credit card without any verification. Using this site one can buy bitcoin online instantly up to the first investment of $150. It is one of the credit card brokers which enables the users to buy bitcoins without taking any IDs.
Another site which enables the investor to buy bitcoins directly by depositing cash at a number of banks across the US or can buy bitcoin online with a bank account. In this, the buyer agrees on a trade price and the seller sends the bitcoins to BitQuick which acts as an escrow. As soon as the seller gets the money and confirms the payment, BitQuick releases the set bitcoins to the buyer's account.
Wall of Coins
It is currently available in the US, Poland, Philippines, Latvia, Germany, and Argentina. It is mainly a peer-to-peer exchange in which a phone number is required and the transaction is processed with an SMS. No other verification is required. It can be used for instant bitcoin purchase via credit card.
It is available only in Europe. it allows the users to purchase bitcoin with a debit card, or credit cards in just 10 minutes. For the first 25 Euros worth bitcoins, no ID will be required, still, you will need to fill some the personal details on the form.
These are similar to the normal ATMs but instead of giving out the local currency, they deliver bitcoins to your wallets as soon as you insert cash in it. One might find various bitcoin ATMs made by several companies but no one requires a verification.
Buyer can easily purchase a bitcoin from ATM but make sure to check the ATM's price as per the Bitcoin price index. Since the bitcoin ATMs sells bitcoins at a markup of 5-10%.
Each one of these has their pros and cons, so it's better to have some prior knowledge about them, before investing in them.
How to buy bitcoins online in India?
As the crypto prices are rising, the investor base in India is also rising, but there are not many genuine sites where Indians can buy or sell Bitcoins. Here is a list of bitcoin sites which are genuine and are used in India.
It enables the Indians to store, sell, buy and accept bitcoins. It was founded in 2013 and became one of the first bitcoin exchange in India. They are providing a platform for the users as well as driving various bitcoin awareness programs in India. They are encouraging cashless Indian economy. There are several payment methods available with Unocoin, most people prefer buying bitcoin online with PayPal. Especially those who are working as a freelance and getting the amount in their PayPal accounts. It's very convenient for them to invest the money directly from their PayPal account to Unocoin to buy bitcoins.
It is India's first bitcoin firm which launched their mobile bitcoin wallet. It allows the user to perform bitcoin transaction using their mobile number without dealing or understanding the technicalities of bitcoin addresses, etc. It guarantees a secure and fast transaction. Zebpay is meant for those who want to start trading in bitcoins and want to accept bitcoins in their businesses. One can buy wallets online to store, sell & buy bitcoins.
It is the first bitcoin exchange in India which offers real-time, secure trading platform. It also follows all the AML and KYC guidelines and allows a user to make instant INR deposits for buying the bitcoins and instant withdraws as well. It can also refer to the first crypto token exchange which has its own wallet too. For Indians, it offers real-time trading amongst the crypto tokens and rupees. It's easy to create an account on the site, after which the user can trade crypto tokens as well as INR and will have a secure wallet for all the transactions.
It is a bitcoin marketplace in India, which helps the user to buy as well as sell bitcoins using their wallet app. The app enables the user to perform quick peer-to-peer transactions as there will be no intermediary used in between. That is the reason, one can easily make a national or international payment. In order to verify the account, a user needs to link it to his/her PAN card. Flitpay is 100% legal and 100% authentic.
Use any of the above mention sites to invest in bitcoins in India.
Last but not the least, we would like to discuss few pointers which every bitcoin buyer or holder need to keep in mind:
Invest as per your budget, don't invest more than what you are willing to lose; since it's a risky investment and anything can happen anytime.
Once you have bought the bitcoins, move them to your personal wallet, without leaving them at the exchange. Recommended wallets to use are hardware wallet, and paper wallet for those who can't afford the former one.
Always buy the bitcoins from those exchanges which have their reputation in the market and are legal.
Use Dollar Cost Averaging while buying bitcoins. It means, instead of investing the whole amount at once, try to invest a fixed amount every month or week or day for a year to get the maximum profit.
Bitcoin trading is different and merely buying it and keeping it in your wallets. Trading needs knowledge as well as practice, so before thinking to do so, gain some knowledge first, else the big players will eat all your money.
Don't fall for any scam sites which says we will double your bitcoins in a day or promise to give you a huge interest. Stay away from them.
Whether to invest or not in bitcoin is totally up to you. But in case you decide to invest in it, first learn how to invest by educating yourself. Learn about the currency, its merits, demerits, what affects it, etc. Understand about the bitcoin sites, their working and terms, then only choose the suitable one for your investment.
- Date of publication:
- Thu, 11/25/2021 - 20:49
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