The world’s economy has no option but to acknowledge the practicality of digital currencies. With digital currencies, we have means of trading that are above our self-imposed differences. No matter who you are, or where you’re from, digital currencies have leveled the playing field.
The most popular digital currency is obviously the Bitcoin. Did you know that you could make dough trading bitcoins with other peers stationed elsewhere in the world? The market prices of bitcoins may be hard to guess, but this price oscillation is what adds to the fun in trading; you get a blend of both big wins and big losses.
How to Get Bitcoins
There are three major ways to receive bitcoins. You could toil for hours on faucets, go into minefields, or trade. Faucet bitcoins are a waste of time. Move on, son. You get micro-payments here for doing tasks like watching ads for many hours.
Mining had been a viable method of making bitcoins in the past, but due to the emergence of new technologies, coupled with the tenfold increase in bitcoin popularity, mining bitcoins has become more and more difficult. Nowadays, mining is a reserve of companies that come together to form pools. They have advanced hardware to help their mining.
So, your best chance at getting bitcoins is through trade. Buy bitcoins on exchange sites like LocalBitcoin and Remitano. These two wallets are hands down the best bitcoin exchanges because they have localized their portal so you can trade with peers from your country and facilitate local payment options.
Things You’ll Need
- Bitcoin wallet
- An address
- An exchange
What is the Best Bitcoin wallet?
It depends on your needs. If you’d want to trade in large quantities, then you may want to choose wallets that boast of high liquidity and a large subscriber base.
You must ensure that your wallet of choice does support your local currency. But this is hardly going to be an issue; if a wallet allows you to trade on their platform, it almost always means they can support your currency too. But better check first.
Check also the payment options at your disposal. Does the wallet support synchronizations with third parties? Does it allow bank transfer? And what is the quality of their services?
Face to face
If you want to eliminate the risk factor, the most convenient way to buy bitcoins is through face to face. The face to face option has not much hassle as all it asks is a meet up between peers and a subsequent transaction. You may meet peers on forums or websites or they may actually be your real friends. So you both come along with your devices (in order to access your wallets) and give out your address so that the seller may send you the bitcoins, and then basing on the local exchange rate, you can pay out amounts owing.
Most buyers do business on the internet, though. The internet is a most favored platform for the simple reason that markets are ready. You just have to sign up for your favorite exchange and do business.
The best exchanges like LocalBitcoins and Remitano act as intermediaries between the buyers and sellers. This reduces any fears either party may have. As a buyer, you create a campaign that is advertised to sellers, who then contact you. The seller deposits the agreed bitcoins to the exchange (intermediary) and then you are to deposit the agreed money into the exchange too, and now that both of you have fulfilled your obligations, the transaction is made.
You can rate what your experience has been like with an exchange or with a particular seller.
Buyers should not worry about getting scammed. It’s standard practice for exchanges to verify the users that they allow into their platform. And beyond that, transactions are only completed once the dues owed to both parties are in the hands of the intermediary.
Now that you have bitcoins on you, what should be your next step? Of course, do what feels right to you. But you’d do well to reinvest the bitcoins, either in the short term, or long term. Bitcoin prices against the local economy are ever changing. It could be worth little now, and be worth a fortune months later. And so, if you’re good at forecasting, or “reading into economies”, you might want to hoard bitcoins in anticipation of price booms or sell them all when you sense danger ahead.
Selling bitcoins is pretty much a reverse of buying them. Sign up for an exchange, view the ads of buyers, and contact them; deliver your end of the bargain, and wait for the buyer to deposit your money. Close the deal.
Things You Should Know About Bitcoin Wallets & Transactions
Some wallets are uninsured. This means that if they ran into trouble and went under, your bitcoins would be lost for good.
A wallet or exchange can file for bankruptcy, and when it does so, the company would be immune from court wars started by aggrieved customers.
The Bitcoin system has no king. Mark Zucks is the king of Facebook. Steve Jobs had been the king of Apple. Bitcoin operates in a way that makes all users every bit as focal. The system is decentralized; which means, there’s no bureaucracy.
Bitcoin transactions are irreversible. Transactions are published on the common ledger known as blockchain. The blockchain is simply uneditable.
Although transacting parties may remain unknown, the transaction itself will be made public. In that sense, bitcoin transactions are not wholly untraceable.
The story of Mt. Gox
See also: More Things to Know about Bitcoin
Bitcoin is a digital currency that seems to have a place in the future. I’m not too sure whether other digital currencies like Litecoin and Ether are gonna survive their infancy, but as for Bitcoin, you better start riding the wave.
- Bitcoin faucets are for losers
- Bitcoin mining is for the big players
- As for you, your grandma, and me let’s stick to buying