Bitcoins has over the last few grown in popularity and value as reliable form electronic money. In order to take advantage of the growing popularity, many individuals have begun bitcoin trading to try to make some money either part time or full time. One of the reasons why bitcoin trading has become popular with traders is the fact that it fluctuates a lot every day offering a perfect platform to make money. The way bitcoins fluctuate make them super exciting for everyone as no one can tell how high or low the coins can go. However, for beginners, bitcoin trading can sound confusing, which is the reason why we have compiled this bitcoin guide to help you trade safely like a professional.
The Bitcoin Trading Basics
What is Bitcoin? Bitcoin is a new and unique form of electronic money that uses cryptography to control the creation and transfer of money online. Bitcoins are peer-to-peer virtual currency, which means that no middle men or central authorities are required for a transaction to occur. Therefore, it is completely possible to send any amounts of bitcoins to any person in any part of the world without using third party intermediaries such as banks. Being a peer-to-peer currency, bitcoin allows individuals to bypass capital and AML restrictions. For you to send or receive bitcoins, you need a bitcoin address and internet access. With your bitcoin address, you can receive the coins even when you are offline, but you must have an internet connection to collect the coins.
How to Get Bitcoins
There are several ways you can get bitcoins, each method with its strength and weaknesses. The popular methods include:
Mining: Mining is the easiest and the cheapest method of getting bitcoins, but it is the slowest. To mine the coins, you should set up a dedicated computer and install bitcoin-mining software to decrypt bitcoin blocks. Unfortunately, to decrypt a single block fully with a mid-range desktop can take up to one year, which may not be worth the time and effort. To mine the coins faster, you may have to pay for purpose-built mining rigs.
Gang Up: In this method, you should join a mining pool. This method works by sharing the work of breaking the block into pieces among the group rigs. Once the block is decrypted, the resulting amounts are shared out based on how much every rig contributed. When joining a group, it is important to note that there are many groups with different model variations depending on how each group is setup. The variations include how each model operates, pays out, and taxes the users.
Buying: This is the fastest method, but the riskiest. You only need to go to one of the markets that offer bitcoin trading. However, for you to buy bitcoins, you should sign up to one of the markets with your details that include the real address and your residence. Once your account is verified, you should then deposit money into your account and carefully watch the market for the ideal opportunity to buy bitcoins. Once you purchase bitcoins, you can then use them any way you want including buying products online or selling the coins to other bitcoin buyers.