With the recent boom of Bitcoin, many people have begun looking at the industry as a potential asset in their portfolio. Furthermore, avid traders are attracted to the market because of its volatility and reward potential.Cryptocurrencies, in general, can be intimidating but that shouldn’t stop you from exploring and potentially benefiting from this new and expanding market. This article will give you five investment tips for those looking to enter this market for the first time.
INVESTMENT RISKS: All investments, including cryptocurrencies, are speculative in nature and involves substantial risk of loss. We encourage potential investors to consult an accredited financial advisor. Never invest more than you could afford to lose.
Tip 1: Understand The Technology
Before you invest in anything, it is important to understand why there is value in the asset. With Bitcoin and other cryptocurrencies, the goal is to eliminate the middleman and allow people to transact with each other, also known as peer-to-peer. Blockchain technology is the backbone of Bitcoin and is a secure and potentially effective way to transact on a global scale. There are other assets that use the blockchain technology and are also successful. So, it is your responsibility to figure out which coin is using this technology. Let’s not also forget XRP coin that uses the Ripple technology. Understanding the technology behind cryptocurrencies will show you the value they bring.
Tip 2: Choose The Right Means of Exchange
There have been many lesser quality exchanges out there and that is still true today. Cryptocurrencies are still new and maturing, and with that comes learning from growth. If you want to invest in Bitcoin or other cryptocurrencies, take time to find an exchange platform that is well known, regulated to an extent, and is transparent with their numbers. The last thing you want is to have an insolvent exchange and not be able to transact.
Tip 3: Use a safe storage method
If you want to invest you’ll need to decide how you want to store your coins. There are two types of storage, cold storage and online storage. Cold storage is when you take your coins off the computer and store them in a USB device or something not linked to your computer. Online storage would be using a trading platform or online wallets such as Coinbase or Poloniex. This boils back to the idea of not having all of your eggs in one basket.
Tip 4: Have a predetermined investment goal
Investing in Bitcoin or cryptocurrencies, you’ll want to decide what your overall investment goal is. It can be to obtain Bitcoin for spending, or the collecting of Bitcoin to invest and profit from the appreciation. You can utilize various trading calculators to assist you in calculating your investment goals.
Tip 5: Analyze the market
The fifth and final tip is analysis. Unlike a stock, there is no fundamental analysis in the form of analyzing a company. Cryptocurrencies are closer to Forex in analysis and investors can benefit well from technical analysis. Unlike mainstream markets, these markets are not littered with algorithm trading and high-frequency trading. Human emotions still play a huge role and should be utilized as such.
Cryptocurrencies are still in the infancy stage in the grand scheme of finance. If you are new, there are still plenty of opportunities to learn and gain exposure to the expanding cryptocurrency market.
Since it recently managed to surpass EOS by market cap, now sitting on the fifth spot in the top major cryptocurrencies, Stellar continues to draw increasingly higher attention. Let’s examine some critical aspects which could make Stellar the cryptocurrency of the year.
What exactly is Stellar?
Stellar.org, the organization currently supporting the cryptocurrency, is an open-source, distributed, and community-owned network that aims to facilitate cross-asset transfers of value. Although it can’t support any type of software like Ethereum, Stellar represents one of the options for Initial Coin Offerings.
The resemblance with Ripple is much more accurate. Stellar can also support exchanges between fiat currencies and between cryptocurrencies. Fast transaction speed, very low fees (0.00001 per transaction), and a centralized network operated by a non-profit organization make Stellar is a good alternative to Ripple and potentially could become the cryptocurrency which will revolutionize the cross-border payments system, which at the present time is very slow.
Price action is supportive
Although in the fourth quarter of the year, the price of cryptocurrencies tends to go on the upside (for the past four out of the five years, the Bitcoin price surged in Q4) most of the major cryptocurrencies did not manage to have impressive performances, even though we are now in November. Since Bitcoin trading continues to be subdued and the price performance does not look impressive, it is the right time for an outsider to kick in and gain significant traction. The seasonality applies to Stellar as well, which had appreciated in value by roughly 50% since September 11th. Looking at the chart below, we see three consecutive higher highs which communicate bulls have been stepping in on the dips.
According to the coinmarketcap.com rankings, Stellar has a $5.13 in market cap at the time of writing, with $200 million more than EOS, and $4 billion less than Bitcoin Cash. Still, if we analyze all the cryptocurrencies from top 10, Stellar is the only cryptocurrency that banked a 50% gain in the last two months. Time is running out quickly and Stellar is on track to mark the best recovery of late 2018, as compared to the other major cryptocurrencies. It truly has the potential to compete with Ripple and any significant partnership with financial companies could further boost the Stellar price. Current performance is not an indication of future results but right now we have a majority of the market participants buying Stellar, which is price supportive.
Cryptocurrency trading carries risk and it might not be suitable for everyone. No information contained in this article should be regarded as an advice to buy or sell any particular cryptocurrency.
Ibinex, a New York-based white label cryptocurrency provider is all set to benefit its customers through its ‘Connect’ ecosystem. Connect is an innovative infrastructure of Ibinex which was built to connect the major exchanges and the Ibinex exchanges into a single trading network. It selects the best contracts from the existing premier exchanges and indexes them in the real time. This lets the buyers offer their investors the most appealing, live “top of the book” prices.
The lack of connectivity between different exchange trade books and due to the liquidity deficit, the traders are not getting the benefit of fair pricing. With the rising gaps in inventory and client demands, the market volatility is becoming more uncertain. To overcome the issue, Ibinex has come up with an advance Connect solution which allows any trader to see in real time how the trades are carried out and how coins are delivered. They can compare the services and offerings to evaluate their future action.
Ibinex was started in 2014 with an aim to provide simple and hassle-free platforms to the institutions which intend to offer cryptocurrency products to their investors. It provides the most trusted, reliable and diverse trading platform to the startups and existing financial institutions. The company CEO says, “The company helps its customers in launching a fully set up white-labeled cryptocurrency exchange in 45 days.”
The company’s automated KYC/AML makes the processing very fast. The company gives its customers the freedom to brand and customize their platforms. The company also liberates its customers from the hassle of technicalities and maintenance. The company manages everything for its customers; the only thing left for its customers is to customize the platform and to focus on the business.
The company also provides the advanced security in the form of impregnable hot and cold wallets. The company makes sure that the platform doesn’t have any weak links to threaten the safety and security of the platform. The EU license confirmation has made the company first-ever virtual license offering company. The company has become the member of the financial commission which represents its years of hard work. The company also offers its clients a mobile application which is customizable as per the requirement. The white label costs are variable and depend on the client’s needs.
A new businessman has been kidnapped and released in South Africa after paying a ransom of 50 Bitcoin, according to local reports. The information has been revealed by townpress on September 18.
Kidnappers Request Bitcoin Payments
The businessman known as Liyaqat Parker was released on Monday after being kidnapped two months ago. The captors demanded 50 bitcoins in order to release him. In a statement on Tuesday, the family of the businessman confirmed that he had been returned to his home.
In a statement on Tuesday morning, the family of 65-year-old Cape Town businessman Liyaqat Parker confirmed he had been returned home after two months. They expressed gratitude to… https://t.co/DzRhVS6CBo
Parker is the founder of the Food prop Group and part of other businesses. He was kidnapped in July by a gang at a parking lot. There is a worrying trend in the muslim business community in the country, according to the Muslim Judicial Council. For example, Sadeck Zhaun Ahmed was kidnapped from his business in Woodstock in 2017.
The statement released by the company reads as follows:
“The family is relieved that he is back and would like to request the media and public to respect their privacy during this difficult time.”
This is not the first time that kidnappers request a ransom to be paid in Bitcoin. We have written in the past that a South African kid known as Katlego Marite, was kidnapped when he was playing near his home. In a note to his family, the kidnappers demanded 15 Bitcoin to release him. As reported by Reuters Africa, the 12-years-old teenager was found close to the place he was kidnapped.
Bitcoin has been growing all over the world, but it has clearly affected South Africa. The country has seen an increased adoption from the general public and companies operating in the country. According to Google Trends, the interest for Bitcoin remains the highest in South Africa.
There are also several firms that are working with blockchain technology, which is used to power cryptocurrencies. Criminals tend to use Bitcoin because it allows them to easily move funds all over the world with fewer chances of being tracked, recognized and captured. However, the police are able to easily discover individuals behind specific Bitcoin transactions.
In general, more sophisticated criminals use cryptocurrencies such as Monero or Zcash, that have enhanced privacy features.
Other Criminal Records Around the World
Back in December 2017, Pavel Lerner was kidnapped in Ukraine. Captors requested $1 million dollars to be paid in Bitcoin to release him. However, it was not clear whether the ransom for this case was paid by Lerner or other individuals paid for his release. In this way, we can continue commenting about other attacks in many cities all over the world. In the Indian state of Punjab, there have been several individuals kidnapped and released after paying a ransom in Bitcoin.
As cryptocurrencies expand, it is also necessary to control and regulate them as some countries are doing. The main intention is to protect investors from experiencing these situations. With clear KYC and AML rules, it is possible to blacklist addresses related to criminal activities.
Iran is one of the countries that decided to create a national cryptocurrency. The main intention is to avoid US economic sanctions, but that remains to be seen. Informatics Services Corporations (ISC), the banking services provider in the Asian country, has unveiled details about the country’s virtual currency.
Iran’s National Cryptocurrency
ISC has decided to reveal some attributes of the National Cryptocurrency of the Islamic Republic of Iran. The ISC is affiliated to the Central Bank and it has been established back in 1993. Apparently, the new crypto will be backed by Iran’s currency and will be based on Hyperledger Fabric.
The ISC explained about this virtual currency:
“It is rial-backed and has been designed and developed by Informatics Services Corporations based on Hyperledger Fabric platform technology.”
The Hyperledger Fabric is an important and recognized open-source permissioned blockchain that is hosted by the Linux Foundation. The platform has been built by IBM and Blythe Masters’ Digital Asset Holdings. Additionally, it specializes in smart contracts for supply chains and can have different other uses. This new virtual currency will be working for Iranian Banks and active companies in the crypto space. According to the ISC, the blockchain infrastructure is going to be developed in different phases.
The first phase will be as a ‘token and interbank payment instrument,’ and the second will be used as ‘an instrument for retail payments in a society.’ That means that the currency will be used, at the beginning, by banks and other financial institutions that need to process payments. After being deployed in the financial system, it will expand to the rest of the society.
The ISC commented:
“Iranian cryptocurrency has been developed under private blockchain infrastructure and it cannot be mined. The issuer is [the] Central bank of Iran and the volume of issuance depends on the bank’s decision.”
Iran has a very active crypto community that is searching for Bitcoin when the economy becomes fragile. Back in May, Mohammad Reza Pourebrahimi, head of the economic committee of Iran’s parliament, said that individuals and companies sent over $2.5 billion dollars to buy cryptocurrencies. At the same time, in July, he said that 500 BTC that belonged to Iranians were seized by the US government.
Since the US increased the pressure on Iran, the country has speeded up its plans to launch its own virtual currency. However, issuing a cryptocurrency as a solution to financial problems does not seem to be the best option to end with an economic crisis. We have as an example Venezuela, that issued the Petro and the economic problems seem to be even worse than in the past. According to the International Monetary Fund (IMF), the inflation in the South American country could reach 1 million percent.
Another thing to mention is that Iran wants to reduce its dependence on the US dollars as a currency. Something similar to what Turkey has hinted in the last weeks after a crisis with its national fiat currency the Lira.
Venezuela’s president, Nicolás Maduro, has ordered banks to start adopting the national virtual currency of the country known as the Petro. Banks should adopt it as a unit of account as the country is not able to put an end to its economic and social crisis.
Banks Obligated to Adopt the Petro
Venezuela has a very important economic, political and social crisis that has devastated the country. In order to be able to get additional funds, the government decided to launch a virtual currency known as the Petro. The national crypto is backed by natural resources of the country such as gold and diamonds. Now, the government guided by Mr. Maduro is pressing banks to use the Petro as a unit of account. Public and private banks will have to reflect all their financial information in bolivars and also in Petros.
The information has been released on Monday by Sudeban, the banking regulator of the country. This year, the inflation in the South American nation will reach 1 million percent and in the last months, over 2 million citizens left the country. As the crisis is deepening, some individuals are moving out from Venezuela by feet trying to reach Colombia, Peru, Brazil, or even Chile and Argentina.
Just some weeks ago, Venezuela decided to devalue the bolivar by stripping over five zeroes. The new currency is known as ‘sovereign bolivars.’ Other important economic measures taken in the last months were an increase in the minimum wage of over 3400%, more taxes for petrol and a higher VAT that climbed from 12% to 16%. Additionally, the government took the decision to fix the currency to the Petro, which, as mentioned before, it is already linked to the price of a barrel of oil. At the same time, Maduro launched an offer of bonds that are backed by small gold bullion and that would help Venezuelans store their funds and save money. However, the minimum wage was just $1 USD and now it grew up to $30.
According to some citizens that were able to escape, a doctor with years of study could pay with its salary just a kilogram of meat. In the South of Argentina, for example, they are searching doctors with a minimum wage of over $2,100 USD, and Venezuelans are good candidates for these positions. It is not clear how the intention of the government to link the Petro with financial institutions will help the country solve the country’s economic problems. In the past, the government tried to contact the Argentine and Polish government in order for them to accept the Petro as a means of payment for medicines and food. Nonetheless, both countries rejected the offer. The United States has also warned its citizens urging them not to buy Venezuela’s national cryptocurrency.
Another country that is trying to release its own virtual currency is Iran, which is having troubles with its currency and it has been affected by US sanctions in the last months.
The lightning network (LN), the ultimate scaling solution for Bitcoin (BTC) keeps growing at very fast rates. There have been several developments around it and the network capacity continues to grow.
Lightning Network Grows Fast
Since very long time, Bitcoin developers are working day after day in order to release and improve the so called Lightning Network. This is the most important scaling solution for Bitcoin that aims to end with the scalability problems that the network is facing since a very long time.
With this implementation, it will be possible to send and receive Bitcoin almost immediately and with very low fees. After a number of transactions is processed, then, they are broadcasted into Bitcoin’s blockchain. Meanwhile, transactions will be made outside the main blockchain. At the moment of writing, there are 11,374 channels, something that represents an 11% increase in the last 30 days.
There are 3,208 nodes (10.83% increase compared to one month ago), and the network is able to handle 85 Bitcoins ($572,391 dollars). It is important to mention that the median base fee is 1 satoshi.
Until now, the lightning network is not available to use in day to day purchases or exchanges. However, there are some companies and firms that are trying to test how the LN works and help
BitMEX Sets Up a Lightning Network Node
For example, one of the most important things to mention is that the famous virtual currency exchange BitMEX has set up a lightning network node. More specifically, the decision has been
taken by BitMEX research and announced it on Twitter on August 21, 2018.
BitMEX Research has set up a lightning network node:
The public Key has also been uploaded: 0287416bd553ff2630ff54640e3a7e4230d632387039313bf5a24d7df2006e13c2
The company explains that deposits and withdrawals are still far from happening, but they are working to have them functioning in the future with the network already running. Additionally, the exchange explained that all other lightning network nodes with the word ‘BitMEX’ on their alias, have nothing to do with the famous platform.
In a blog post uploaded by BitMEX at the beginning of the year, they explained that they have a real motivation behind the Lightning Network. The company believes that the LN is a superior way to scale the network and it can result in a transformational improvement for the market.
The exchange explained on the matter:
“The Lightning Network does appear to potentially offer significant and transformational improvements with respect to scalability. As a result, transaction speeds and transaction fee rates should dramatically improve, without impacting the underlying security of the core protocol.”
However, the exchange explains that LN have inferior security properties that would make it not suitable for larger payments. Currently, retail payments are relatively small in comparison to bigger transactions between financial institutions, big buyers, exchanges, and other important bitcoin users.
“Because of that, lightning may not be as big a game changes as some imagine, at least in the medium term,” explains BitMEX. “While enthusiasts appear likely to adopt this technology
quickly, widespread adoption may take considerable time.” Lightning Network Gets Hacker Camp Chaincode Labs and its developers want to offer a place for developers to build their own Lightning Network apps in order to accelerate its adoption around the world. According to Chaincode’s engineer Marco Falke, there is missing infrastructure in the space. About that, he commented:“There aren’t many apps and you can’t go into a shop and pay with bitcoin. There’s all this missing infrastructure. We thought it would be great to get some app developers involved that have experience building websites, but don’t have to have any background in bitcoin or lightning.”
The program related to the Lightning Network is called ‘residency’ but it is quite similar to a coding bootcamp. The team will be taking applications until they reach 12 students, that do not necessary need to know about Bitcoin. After that, the class will be focused on lightning network specifically.
The instructors will be explaining how the protocol works and help students answer the questions they have. During the residency, participants will have to work on a specific application they desire. We are talking about funny or simple games or more serious apps such as a payment gateway for daily purchases.
Chaincode wants to make developers involved in the ecosystem. By working with application developers that may be a good way to to improve the code usability. “Personally, I think every day we wait for lightning applications will delay lightning and bitcoin. It’s really important to do this app development thing as soon as possible,” explained Mr. Falke.
At the same time, James O’Beirne, another engineer at Chaincode, believes that these applications could help change the public perception of Bitcoin. In the past, and during the last
years, Bitcoin has been considered as a speculative asset with high volatility. Falke said that there are people that do not believe in the future of the Lightning Network as a possible solution to Bicoin’s scaling problems.
“A lot of people outside of bitcoin don’t understand it’s capabilities, including lightning. By facilitating app development we’re spreading awareness of what bitcoin is actually capable of,” explained O’Beirne. “People have turned to other smart contract platforms because they don’t understand how powerful bitcoin can be.”
Bitcoin needs to address scalability issues as soon as possible if it wants to reach an important number of individuals all over the world. The Lightning Network has been proposed as the most important scaling solution for the Bitcoin network and accepted for most of Bitcoin enthusiasts. However, it will need some more time for it to be implemented as a whole and officially launched.
Of course, there are some critics to it related to privacy and security. Developers are working in order to solve these issues and find solutions.
Those who did not support a second layer solution to the scalability issues presented by Bitcoin, decided to fork and create the so called Bitcoin Cash (BCH). BCH, compared to Bitcoin, offers
an on-chain scaling solution with larger blocks. At the same time, Bitcoin Cash is going to offer more private payments and the possibility for developers to launch tokens based on the BCH
On August the 3rd, the Intercontinental Exchange (ICE), a very important operator of global exchanges, announced that it is planning to create the company Bakkt, with the intention to create a regulated and global ecosystem for digital assets. In order to do so, ICE will be leveraging Microsoft cloud solutions and will work with organizations such as BCG, Starbucks, and many others. The purpose of this agreement is to enable consumers and institutions to buy, sell and store virtual currencies seamlessly.
Jeffrey C. Sprecher, Founder, Chairman, and CEO of Intercontinental Exchange, commented on the matter:
“In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets.”
Bakkt has been designed to work as a scalable on-ramp for institutional, merchant and consumer participation in digital assets. The platform will be promoting greater efficiency, security, and utility in the market. It will help in building an open platform that helps unlock the transformative potential of digital assets across global markets and commerce. Investors in Bakkrt will be more than just Intercontinental Exchange and Microsoft’s venture capital arm. Other companies will be an affiliate of Fortress Investment Group, Eagle Seven, Galaxy Digital, Horizons Ventures, Alan Howard, Pantera Capital, protocol Ventures, and Susquehanna International Group.
“As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks,” explained Maria Smith, Vice President, partnerships and Payments for Starbucks. “As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.”
Starbucks Not Accepting Cryptocurrencies
Cryptocurrency users and enthusiasts were very excited about this information because they thought Starbucks was going to start accepting Bitcoin (BTC) as a means of payment for its products. But it is important to mention that Starbucks will not be accepting virtual currencies at its stores. In an , Starbucks informed that it will not work with Bitcoin, at least for the moment.
“It is important to clarify that we are not accepting digital assets at Starbucks. At the current time, we are announcing the launch of trading and conversion of Bitcoin. However, we will continue to talk with customers and regulators as the space evolves […] Customers will not be able to pay for Frappuccinos with bitcoin.”
Additionally, Starbucks commented in a statement that the closest that customers would be to pay for their coffee in Bitcoin is by purchasing US Dollars from the exchange and then use them at the stores. At the moment there are just some shops and stores accepting bitcoin or any other virtual currency. But for example, the Brisbane Airport in Australia is the first in the world accepting Bitcoin and other virtual currencies.
In this way, it became a crypto-friendly airport. In order to do so, Brisbane Airport Corporations’ (BAC) partnered with the payment provider TravelByBit back in May the 29th.
During the last years, we heard about the virtual currency market, how it evolved and how it grew everywhere. But it may be somehow complicated to start investing in Bitcoin (BTC) and other cryptocurrencies. And yes, we are living a revolution of money. Virtual currencies work in a different way compared to other fiat currencies, but they are very effective and useful in many different fields.
If you haven’t yet invested in virtual currencies, the best what you can do is search information about them and take a decision on whether it is a good idea or not place your funds in this volatile market. In this article, you will have some simple rules that would let you know how to start investing in digital currencies such as Bitcoin, Ethereum (ETH) or Litecoin (LTC).
How Much to Invest?
This is a very interesting point. How much should I buy in virtual currencies? Do I really need to invest in a whole coin if I want to enter the market? Where can I do it? This is very simple, and all these questions have clear and simple answers. The first thing we need to mention is that you should never invest more money than you can afford to lose. This is the golden rule that must be respected at all times.
Do not take a credit to invest in this market and do not try to sell goods that you do need just to bet in cryptocurrencies. The price of most of the digital currencies tends to fluctuate abruptly. In some cases, the numbers can be huge (more than 20% or even 100%!).
The CEO of Debt Rescue, Neil Roets, commented on the matter:
“Some of them [investors] had gone as far as pawning their vehicles, taking out second bonds on their homes and borrowing money on credit cards in order to buy cryptocurrencies.”
The answer to the second question is also very simple. Most of the cryptocurrencies allow users to buy small fractions and part of them. For example, Bitcoin is currently being traded at around 108,000 ZAR. Buying an entire BTC would be very expensive for most of us. Instead, it is possible to purchase 0.001 BTC for just 108 ZAR.
If you are already decided to purchase some fractions – or maybe a whole Bitcoin – there are different virtual currency exchanges that would let you do so. Here is a list of trusted ways you can buy Bitcoin. Those are the most known and the best in terms of security and usability.
Which Currency Should I Buy?
This is also a good question that is related to the kind of investor you are. If you are in the game for the technology, then, those projects that offer the latest improvements in blockchain technology may be great for you. In this case, the flagship is Bitcoin (BTC) and a currency that should be in your portfolio.
If instead, you are a developer, EOS, Ethereum, Stellar (XLM), Tron (TRX), or Cardano (ADA) may be a great choice for building up your crypto portfolio. Instead, if you prefer to use virtual currencies to have important returns in a short period of time, you should be looking at tokens from ICOs or not so known virtual currencies.
If the main intention is to hedge your funds against an international or economic crisis, another good thing to do is buy Bitcoin (BTC), which tends to be more stable than the rest of the alt-coins. Cryptocurrencies are not related to any government and most of them are decentralized, like Bitcoin or Litecoin. These are great options for people that do not agree with the current financial and economic system and wants to stay away from it.
Other investors want to preserve their information and process private transactions. There are some virtual currencies such as Monero (XMR) and ZCash (ZEC) that allow people to send and receive payments without giving personal information or the amount of money transacted.
Where to Learn About Virtual Currencies?
If you want to know more about a specific virtual currency, there are different ways to do that. For example, you can go to the official website of the currency and read the latest news or read their white paper. A useful way to see how the development of a token is going on is to check the roadmap and compare it with the white paper to see if developers are working on it as they should. The social network Reddit is a good place to be in touch with the community of a specific currency. There are subreddits specifically designed for each virtual currency and they have, in general, very active and kind communities.
Where to Store Cryptocurrencies?
If you have bought virtual currencies in an exchange, then you may be wondering: ‘Which is the next step?’ Things are simple, but having your cryptocurrencies in an exchange is not the best decision you can take. These platforms are user-friendly, but they are very unsafe. Hackers and stealers may be able to attack the exchange and take away an important number of cryptocurrencies from individuals. Here is our article dedicated to ways you can securely store your crypto.
If you want to avoid it, the best would be to send the virtual currencies you bought to another wallet. Crypto wallets that work in desktop computers or in your smartphone are much better than exchanges, but they are not as safe as cold or hardware wallets. Hardware wallets allow investors to have their funds completely secure. As they are not connected to the internet, it is impossible for an external party to access the funds stored on the device. There are different hardware wallets in the market, the two most famous are Ledger and Trezor, and both can be bought on their official site.
To buy cryptocurrencies it is very important to be informed about what virtual currencies are and how they work. But it is also a key point to accept the risks associated with the market, the volatility, the difference between cryptocurrencies and more.
The internet has been revolutionizing multiple areas of the economy and Bitcoin is the revolution in currency made possible by the fast-growing internet. Bitcoin is the digital currency which is created and held electronically and is the first successful digital coin that can be transferred over the web.
Though Bitcoin doesn’t have any physical existence, it is safer, faster and easier than traditional money with advantages for both consumers and business owners. This cryptocurrency doesn’t rely on governments or central banks but is instead managed ideally via a network called blockchain. The blockchain is essentially an online ledger that keeps a secure record of every transaction made at one place so that every time anyone makes a transaction or exchange using Bitcoin, it is recorded safely and securely.
Bitcoin is a peer-to-peer payment network which in simple words means that it can be transferred from a person to another directly over the internet. This permits users to avoid using a middleman such as a credit agency or bank and it provides them more control over their funds digitally. This peer-to-peer system creates a new way of transacting and with Bitcoin at the forefront of the digital currency market; it is creating a new way to make online payments.
How is Bitcoin Changing the Online E-Commerce Market?
Bitcoin is a very dynamic and interesting technology that will surely change how e-commerce will be conducted in the near future. And here’s how Bitcoin can accomplish such a feat. Bitcoin is progressively infiltrating the E-commerce industry because it is an innovative, viable and somewhat sexy solution. More and more companies today understand this and are drawing many customers attention towards it like by introducing different methods to purchase Bitcoins like you can buy Bitcoins by converting your Amazon gift card into Bitcoin. Well now purchasing Bitcoins is not a difficult task.
Bitcoin Provides Instant Gratification:
In this fast-paced world, we as users want everything to be done instantaneously and in minutes, but that’s still superior compared to what we were used to be. And Bitcoin certainly fits that mold. Instead of letting customers wait for hours, days, and even weeks for a payment transaction to go through, Bitcoin is for the most part instant.
This gives a user the peace of mind in knowing that products and services have instantly gone through instead of keeping it pending, waiting for approval or anxiously figuring out why the PayPal account is blocked. This will continue to be approved on so that transactions will literally be instant which we are almost at now. However, it could also speed up the transaction process further since merchants are waiting days for a payment to get clear so that they could ship out the products instantly.
Bitcoin Establishes Trust:
Unlike traditional banks and financial institutions, Bitcoin puts the customer first. Banks may try to state otherwise, but there aren’t any other financial institutions that allow people complete access and control over their finances. As mentioned, you can receive and send payments instantly through Bitcoin. This allows you to have access to an updated budget. More important, however, is that this allows you to run your business the way you want because you don’t have to follow the regulations laid out by banks or other financial services.
The availability of Bitcoin — the Superman in Digital Currency — also creates a possibility for small businesses to engage themselves in the global e-commerce business. This is truly a good way to make sure that business transactions are carried out safer considering that, once an asset is digital, moving it is easily done automatically.