Blockchain Technology and How It Improves Your Business

What is Blockchain technology?

Is it the same as Bitcoin?

Actually, it is not.

Later, we will see the differences.

But, Bitcoin is what most people know.

Why is this so?

Well, something interesting is happening.

It seems as if everywhere we turn, there’s someone trying to get us to buy Bitcoin.

For example, many promotions fill the net.

You probably receive emails about it.

And, if we believe the marketers, all we need to do is invest in Bitcoin.

And soon, we’d be rich.

Well, today, keep your wallet.

Since this is not another plug for Bitcoin.

Granted, it is highly popular.

Since it was introduced in 2008.

But I believe it is not a good investment, and is risky.

Therefore, I am not the fan of converting your money to Bitcoin, or even Bitcoin Mining, because I believe it is not worth anymore.

It crashed very badly and dropped below $4000 while it had almost reached the $20,000 level.

The LuckScout Team warned the Bitcoin crash (for example here).

So, what am I going to talk about now?

Actually, my theme is its underlying technology:

It is known as Blockchain Technology.

The Blockchain technology is something that amazes me a lot, not the news of those who have lost their shirts because of converting their hard earned money into Bitcoin.

And Blockchain technology is the most exciting technology of our time.

So, one vital question to consider is:

Is It a Passing Fad or a Sustainable Revolution?

Blockchain Technology

In truth, it is here to stay.

It will remove intermediaries.

Paving the way for peer-to-peer transactions, Bitcoin is the first application.

It came first, while blockchain technology came second to lend some legitimacy to it.

And, it’s vital to note that apart from Bitcoin, there are other applications.

By the way, Blockchain Is a General Purpose Technology.

Therefore, it applies to many facets of life.

In fact, an expert says:

It currently has about 700 applications.

You can see that this is huge.

And smart folks ought to know about it.

Because it’s poised to change our lives.

It offers many opportunities.

But, it’d also eliminate a lot of jobs and kills many businesses 🙁

It’s so game-changing.

Microsoft and IBM invest millions of dollars in it and many start-ups are exploring it.

Even venture capital firms have invested over a billion dollars in it.

Ethereum is its second most popular application.

It executes peer-to-peer contracts.

In fact, many experts see Ethereum as “Blockchain 2.0”.

That is an advancement on Bitcoin at this point.

It’s pertinent to ask a vital question:

What’s the technology’s main benefit?

It enables the secure transfer of assets!

We all know the fact that distrust is a great barrier to economic activities.

This is the reason we have many intermediaries who seek to protect buyers and sellers.

Blockchain Technology Is the Technology of Trust

Fortunately, Blockchain technology ensures trust.

In fact, some call it “The technology of trust.”

In truth, it’s not a trust-based model.

Rather, it’s a proof-based model.

Its algorithm and cryptographic code provide the proof.

And it’s the proof which engenders trust.

Key Facets of Blockchain Technology

We’ll explore what it means, how it works, and its evolution.

And, we will learn about cryptography and Ethereum.

Finally, we will learn about how it’d benefit your business.

Ready?

Let’s get started.

What Is Blockchain Technology?

No Middlemen Transaction TechnologyMost transactions require some middlemen.

Especially, financial institutions and government.

But, we incur huge costs because of their role.

The costs are time and charges.

What are their key roles?

Intermediaries keep records of transactions.

They verify and validate their authenticity and that of the parties involved.

This is the way we have done things for ages.

We assumed there must always be intermediaries.

But, Blockchain technology upends this inefficient way.

It eliminates the need for intermediaries.

We’d see how, soon.

It solves a major problem with online transactions: The problem of trust

Let’s take a deep look at what the technology entails and how it solves that problem.

The blockchain technology is a combination of technologies itself.

Essentially, it has two parts.

A network that verifies and facilitates transactions and an immutable, decentralized ledger.

At this point, it’s akin to how the internet was in its early days.

The infrastructure is being built.

There’s still a lot of work to be done.

So, it’s hard to predict its future.

But we know for sure, it is the main technology for the next few decades.

Its effect will be like that of the Internet.

So, what exactly is it?

Many of us are familiar with databases and ledgers.

We use them on a daily basis.

So… what is blockchain technology?

Essentially, it is a secure, super-sophisticated database.

Is that not exciting?

And, what are databases and ledgers used for?

We use them for capturing and storing vital information.

But, our methods are inefficient.

Thankfully, blockchain rescues us.

– Open or Private Networks

It is a blend of algorithm and data structure.

Which removes these inefficiencies.

But, it differs from the databases and ledgers we are used to.

Because it is decentralized and distributed.

This means there is no single, central authority.

And yet, it is safe, secure, and open.

Such that all on the network can access.

And follow a trail of the transactions.

Its algorithm ensures the uniqueness of each transaction.

It also makes it extremely difficult for hacking.

Even though there is no central administrator.

The networks can be as open as the internet.

Or they can be private like an intranet.

– The Death of the Intermediary

The network updates the records in real-time.

And, simultaneously on all the nodes (computers on the network), and in a chronological order, it replicates databases.

Such that the same record can be accessed by different people at the same time.

And all records are identical.

All parties can update the records but they cannot edit or erase any.

The network is transparent and reliable.

It’s easy to understand.

That it’s almost impossible to perpetrate frauds since all records are available and accessible to all.

They leave a trail that can be checked if the above seems far-fetched.

Think of Google spreadsheet which many of us use.

Think of how people in different locations even in different parts of the world can access it and work on it in real time!

It shows their inputs and edits at the same time.

The blockchain encrypts transactions.

It maintains their integrity.

When a transaction occurs on a blockchain, cryptographic code records and protects it and it is captured in a block.

Then, Miners, computers with high power attempt to validate the transaction.

The network timestamps the validated transactions and they are added to the preceding blocks to form a chain.

Discrete data records are the “blocks” while, how they are linked is the “chain.”

This process is where the name, blockchain, is derived from.

In effect, this chain is a trail which is accurate, safe, secure and open.

The history is a constantly updated version of what happens on the network.

But, unlike what we are used to, the blockchain network is the intermediary.

In effect, blockchain technology eliminates middlemen.

It’s this chain of interlinked transactions that make it powerful.

How Did Blockchain Technology Evolve?

You’d probably agree that:

What’s been shared above is super exciting.

Because, we can imagine how it’d provide a basis for a democratic, distributed global marketplace, and how it can foster cooperation on a global level!

So, how did it all began?

Satoshi Nakamoto’s paper in 2008 led to Bitcoin’s evolution.

The name is a pseudonym for a person or a group of persons.

The paper proposed a peer-to-peer electronic cash transfer system.

Blockchain technology came into being to validate Bitcoin.

But, as time went on, many realized that the underlying technology is more valuable.

In effect, the servant is now the master.

And, it has many potential applications.

Furthermore, these applications show that it is even more valuable than Bitcoin which it came into being to serve.

Now, let’s look at how it will benefit your business.

But, first, we’ll learn about smart contracts.

What Are Smart Contracts?

It’s vital that we understand them since they will impact our lives, specifically, they are self-executing programs which help in the automation of processes.

As we explore them, you’d be seeing how blockchain technology offers benefits.

Essentially, contracts are converted into code, and then stored on and are reproduced by the network.

The network ensures there are multiple copies.

Smart contract’s main task is to transfer digital assets and currencies, once certain conditions are met.

In fact, anything that has value, such as money, shares, or property can be transferred.

Smart contracts stipulate the conditions and obligations of the parties to an agreement.

They also enforce the obligations.

Their value involves being able to execute many transactions and ensuring conflict-free transactions.

They will eliminate the need for intermediaries.

In fact, we can compare them to vending machines.

For example, when we put money into a vending machine, we get what we want.

In a similar vein, when we put bitcoin in the blockchain, we get what we want.

Smart contracts are stored on blockchain networks, because the networks are tamper-proof and secure.

Nick Szabo, a cryptographer, and legal scholar devised the concept of smart contracts in 1994.

He also laid the foundation for digital currencies.

What are the key benefits of smart contracts?

Beyond what was hinted at above.

They are accuracy, savings, and automatic backups.

While trust and autonomy are the rest.

– Benefits of Smart Contracts

Let’s look at each benefit.

The transactions are accurate.

Since there’s no need to fill a heap of forms, you save a lot of money.

Since you don’t have to pay any middleman, the network has multiple copies of the same records ensuring automatic backups.

Thus, transactions are trusted because of the encryption used.

And finally, you experience autonomy, since you are the one who initiates the transactions.

There’s no need for any intermediary.

Smart contracts mitigate litigations.

They save time because they are automated.

And, they operate on an if-then basis.

They are executed once the conditions are met.

Smart contracts are currently being used in insurance, financial derivatives, and property law, and in financial services, credit enforcement, and others.

Now, let’s explore what makes blockchain safe and secure.

Blockchain Technology’s Secret

We have been making references to it.

First, it’s an indispensable component of blockchain technology.

The network maintains the integrity of what’s transferred, and, it prevents hacking.

So, what is it?

Cryptography is derived from the greek, Cryptos which means hidden.

It is a means of encoding information, so that the recipient alone can access it.

Code encrypts plaintext.

It converts it to ciphertext.

And, the code converts ciphertext to plaintext.

Cryptography’s objectives are authentication, confidentiality, non-repudiation, and integrity.

Let’s look at what each entails.

Authentication means confirming the identity of the sender and recipient, and of the origin and destination of what’s to be sent.

Confidentiality means only parties involved can understand the message.

The message cannot be changed in transit or while it is stored.

This is what integrity means.

The network detects the changes if they occur.

And finally, non-repudiation means that the originator cannot deny their reason for creating and transmitting it, later.

The main types are:

Symmetric-key cryptography, Public-key cryptography, and hash functions.

In Symmetric-key cryptography:

The sender and recipient use the same key.

The sender uses it to encrypt plaintext into ciphertext while the recipient uses it to convert it back to plaintext.

In Public-key cryptography, Cryptography uses two keys.

A public key encrypts while private key decrypts.

The private key always remains a secret while the public key may not.

Hash functions do not use keys.

Their purpose is to ensure that the message remains unaltered.

How It’d Benefit Your Business

Security is one of the key benefits.

You know that cybercrime is debilitating and that this often leads to great losses.

Blockchain technology uses cryptography and is highly secure.

It’s almost impossible for a hacker to breach the system because of the way the network works.

It codes transactions as blocks.

Then it chains them to preceding ones.

In effect, the network connects all transactions.

It’s impossible to break this chain without detection.

Time savings and efficiency are the second benefits.

The network executes transactions faster since there are no middlemen.

And there are immense savings since there are no fees to pay.

The time savings are substantial.

For example, Blockchain reduced to four hours!

A transaction that would ordinarily take 7-10 days.

Don’t you think that is amazing?

The example, about time savings, is a graphic illustration of the immense benefits.

The technology will unleash smart contracts accelerate efficiency.

They eliminate many traditional processes because these programs automate many transactions.

We can rethink processes using smart contracts and improve key facets of a business.

This results in great savings.

Accuracy and speed of record keeping are the third benefits.

All economic activities require tons of records.

This is time-consuming and expensive.

And is prone to human error.

Blockchain timestamps all information.

Furthermore, it checks and links them to others.

The audit process is the fourth benefit.

As currently practiced auditing is prone to errors.

And it is often provided late.

But with blockchain the technology captures all transactions in a sequence.

And the parties involved approve all transactions.

Thus, a permanent, continuous audit trail is always accessible.

Now, let’s look at an advancement on Bitcoin.

What Is Ethereum?

Let’s explore “Blockchain 2.0”

In the past, coding, cryptography, and math skills are required.

Ethereum, an open software platform has changed that.

Now, developers use it for rapid application development.

It is what enables smart contracts.

How does it relate to Bitcoin?

Bitcoin’s blockchain technology is essentially about the mining.

And the transfer of the currency.

The Ethereum blockchain technology, on the other hand.

Executes decentralized applications.

Both are open source projects apart from being a blockchain network and a cryptocurrency.

It allows users to create their own digital tokens which represent valuables such as shares and assets.

Ethereum is also a programming language.

Vitalik Buterin’s team developed it in 2015.

The Ethereum network uses Ether as its currency.

In essence, it is the reward for mining.

Therefore users pay for services with it.

They also defray transaction fees with it.

Essentially, Bitcoin is a currency while Ethereum is a programming platform which enables fast application development.

And safe and secure peer-to-peer transactions.

Truly, we can see that it is superior to Bitcoin.

In conclusion, blockchain technology is changing our world.

Since it offers great benefits.

By the way,  its applications go beyond business.

For example, the health sector is applying it and government organizations can use it.

In fact, even charities can use it.

Interestingly, some firms are testing its use in the cloud storage sector.

If this works naturally, there will be no central administrator.

Furthermore, users can sell excess space and make more money.

Evidently, it is changing the economy.

Finally, there are near-limitless uses for it.

In fact, our imagination is the only limit.

So, what will you build with it?

Should You Invest in Ethereum?

Whether to invest in Ethereum or not is one of the most popular talks at the moment.

After the drastic drop in prices in January 2018, interest in this cryptocurrency is on the rise.

Almost inevitably everyone seems to be making a beeline for these alternative investments.

The future price predictions have made this gold rush even more pronounced .

Estimates indicate the Ethereum prices may top $2000 levels by 2018-end.

Should You Invest in Ethereum?So the question is, does it make sense to invest in Ethereum now?

With prices hitting a new high every few days, making an assumption can be difficult.

But at the same time, the lure is too strong.

This is because Ethereum has had an amazing run thus far.

As of now, it is the second largest cryptocurrency in terms of market cap.

The current market capitalization of Ethereum is almost $70 billion.

This is when this cryptocurrency is a relatively lesser known entity.

So many analysts expect a much higher price movement when more people start to invest in it.

If you study just the 2017 price moves, the numbers can be quite mind-boggling.

At the beginning of 2017, Ethereum traded around $7.98.

But by the time 2017 ended, the price was closer to $720 levels.

Now that’s a straightforward 8900% jump in prices.

It is needless to mention, that the euphoria understandable.

It is considered one of the best ways to invest in cryptocurrency.

In fact, Ethereum is considered one of the most promising investment avenue for technology.

Currently, though the process is lagging behind Bitcoin, most experts are optimistic.

They feel it is only a matter of time before this cryptocurrency overtakes Bitcoins.

Investing in Ethereum makes sense at different levels.

Here is a quick lowdown on the top reasons for the bullish stance.

Ethereum Boasts of Better Technology

Ethereum has come into existence many years after Bitcoin.

But most market analysts believe that it is, after all, an improvement on the Bitcoin.

In many ways that is also a reason why cryptocurrency experts are bullish about it.

It is expected to usher in the absolute disruption in the investment cycles.

Remember the original concept that led to the growth of blockchain technology.

Blockchain promised a decentralized and transparent financial dealing.

In many ways, it is considered that the Ethereum can help realize it best.

The Ethereum is a Turing-complete technology.

This means this technology is well equipped to run any program or contract.

They are also capable of solving complex equations as well.

It is complex and decentralized operating platform.

It enables easy payments across the internet without any third party intervention.

You don’t need either a bank or any other third party mediation.

Needless to mention that it is now considered one of the best options to invest in.

There is an unusual spurt in prices in the past 6 months or so.

What really makes it score over the Bitcoin is the ever-expanding eco-system.

While Bitcoin investments are nearing saturation, the equation is very different for Ethereum.

People are only beginning to invest in Ethereum.

It is a story that they are just discovering.

As a result, the eco-system has only begun expanding.

So there is a constant demand for this AltCoin and nowhere near saturation.

As a result, the price prediction is also extremely positive.

Assumptions of a price rise anywhere from $1500-2000 by 2018 is doing the rounds.

So when you are looking at options to invest in, this surely comes across as a positive story.

It highlights the latent profit potential in the cryptocurrency space.

Invest in Ethereum: Transactions Are Faster

What is particularly reassuring is that this price rise is backed by strong technology.

That makes it a very compelling story to invest in for long-term gains.

This also introduces a certain speed in the overall transactions.

The good news is that Ethereum sails through those comparison clouds.

It is significantly faster compared to Bitcoin, its nearest rival.

Moreover, the blockchain driving Ethereum is also significantly more advanced.

As a result, transactions happen at a much faster rate.

It also creates records in a matter of seconds compared to minutes in case of Bitcoins.

If you just consider the block generation time, it is the fastest cryptocurrency in the world.

In many ways, the relatively lower user base is working towards Ethereum’s advantage.

You have to understand that more the number of users, slower the transaction speed.

Given the huge number of Bitcoin users, the transaction speed is suffering at the moment.

But Ethereum is still a relatively new phenomenon for most investors.

They are still in the process of exploring its potential.

As a result, the number of users is significantly lower.

This also helps Ethereum maintain higher average speed.

This has a direct bearing on the overall transactions.

Users experience a distinct difference in speed.

It is needless to mention that this becomes another reason why you may invest in Ethereum.

After all, any investor will want to bet on a growth story.

There is no reason why you want to spend your resources on a saturated story.

It is always a better option to channelize your money in resources that promise better returns.

Investing in Ethereum makes sense in this context.

It definitely delivers better value at the current rate.

Bitcoin meanwhile is not seen as a value play at current levels.

Ethereum Has Wider Ambit of Operation

When you consider whether to invest in Ethereum, a comparison with Bitcoin is inevitable.

Ethereum score significantly higher than Bitcoin in this context.

Its broader ambit of performance is significantly large.

Moreover, the speed has enhanced its overall efficiency.

Its flexibility is also a big beneficial element.

This has also made the blockchain extremely adaptable for companies.

It is a rather attractive feature for corporates looking for efficient blockchain.

These can enhancing quality in a significant way.

Ethereum impacts process efficiencies in a convincing manner.

The smart contracts are also a major positive for improving cost-quality connect.

These Ethereum contracts are essentially decentralized.

In other words, these contracts coded in blockchain are often self-executing.

That means these completely obliterate the need for a third party intervention.

They are self-servicing, fast and do not need any third party players.

Transactions are complete without interaction with a third party.

Whether you want to trade or transact, you don’t have to go about establishing Ethereum.

This process is already incorporated in the way it is coded to the blockchain.

The adaptability is well borne out by the conceptualization of other new coin offerings.

Many times, you will notice that many new offerings are based on Ethereum.

Therefore, its blockchain becomes the mother source funding and sourcing new offerings.

This has also created significant momentum for this cryptocurrency.

The latent value base is distinctly greater.

In fact, experts believe that this can actually be the disruptive force in the financial market.

It may stir-up the market pretty much the way Uber or Airbnb has.

The issuance is limited to about 18 million tokens a year as of now.

But you can only gauge the potential on a longer-term basis.

It is primarily a function of the effective demand-supply matrix.

Ethereum Is Widely Accepted

Whenever you explore options about whether to invest in Ethereum, one basic factor comes to play.

The widespread acceptability of Ethereumis the biggest positives.

It has the backing of some of the biggest corporates in the market.

In fact, if you calculate, the Enterprise Ethereum Alliance is one of the world’s largest alliances.

This open-source blockchain groups together some of the world’s largest group of companies.

These are all primarily Fortune 500 companies.

But there are many start-ups, technology vendors and also academics in this alliance.

It is more or less a holistic alliance that is bringing together like-minded players from the world over.

That in itself is one of the most distinctive capabilities.

It has become instrumental in regrouping some of the best-known corporates from around the world.

Needless to mention, that creates a healthy playing field for most.

It’s capability in handling complex business processes scores significantly in bringing together the alliance.

It is decidedly aiding demand management and supply-side efficiencies.

Moreover, the Ethereum Alliance is an ever-growing phenomenon.

Increasingly companies are understanding its need and benefits.

As a result, the alliance now has close to 180 members.

What is particularly encouraging is this alliance is constantly expanding.

The list of members includes some of the marquee names in the corporate world.

It includes the likes of Mastercard, Microsoft, ING and JPMorgan.

But that’s not where this is ending.

For the corporates, Ethereum’s own platform is a major advantage.

It does not just enhance their efficiency but also rationalizes cost for them.

Moreover, when corporates lookout for reliable options, Ethereum surely presents a case.

Outside the conventional financial transactions, this is considered one of the best avenues.

It highlights a self-sufficient and reliable eco-system.

That helps them cover meaningful ground in terms of user appeal.

The Ethereum Contracts a Smart Option

One of the biggest factors abetting the popularity is the Ethereum smart contracts.

Many corporates see this as a convenient alternative to the conventional options.

These are essentially computer codes that execute on its own.

These automatic contracts are triggered by certain key programs.

When sufficient terms and conditions are met, it automatically gets started.

So it is not monitored by any single controlling body.

Therefore, in many ways, these smart contracts highlight the decentralized approach.

Let us remember that the cryptocurrency shot to popularity on this decentralized concept.

But most blockchains have a central power authorizing the Ayes and the Nays.

That, in many ways, defeated the core thinking.

Moreover, it also delayed the entire transaction to a large extent.

They are most times self-operated pre-programmed codes.

They do not wait for any third party authorization.

That, no doubt, adds a distinct layer of transparency to the dealings.

It also makes them terribly objective and fair.

The overall price determination is also market enabled.

That makes the core process terribly market focused too.

In many ways, that enables a better price discovery too.

Let us say ‘X’ and ‘Y’ undertake a transaction.

X bets Y that Ethereum prices will top $1500 by December 28, 2018.

Now they may put 100 Ethereum each to their respective escrow accounts.

On December 28,2018, Ethereum will validate the contract and transfer the money on its own accord.

You do not have a third party intervention.

If X loses the bet, Y gets 200 Ethereum.

If X wins the bet, X gets 200 Ethereum.

This smart contract clearly undertakes the appropriate transaction at the right time.

You don’t have to look at dealing only with trusted partners.

Anybody can undertake a contract.

The chances of misappropriation are fairly limited.

Easily Tradable on Exchanges

When you are looking at why you can invest in Ethereum, its availability is crucial.

This cryptocurrency is easily available.

What makes the deal even sweeter is that it can also be traded quite easily on the exchanges.

That means this is a decided game changer in the overall financial digital space.

Active trading will no doubt create a much better prospect for fair price discovery.

Moreover, the spikes in prices will become a lot less volatile.

A greater trading volume also enhances the credibility of the entire process.

The advantage is that the long-term prospects get enhanced.

There are several cryptocurrency exchanges that support Ethereum trade.

It does not just enhance the overall availability.

It also makes the cryptocurrency widely acceptable.

That simplifies owning and transacting using these.

In many ways, this is the key reason for Ethereum’s recent popularity.

Investors do understand that Bitcoin is nearing its saturation point.

The question is what will happen next.

In this context, Ethereum provides a simple and realistic solution.

It enables investors to access a stronger eco-system with assured gains.

In many ways, it is one of the best options now to take part in the cryptocurrency mania.

Alternative Transaction Opportunity

Often when you consider why you must invest in Ethereum, experts provide a comparison.

They highlight the multi-faceted advantage of this cryptocurrency.

Ethereum can be used for transactions too.

Increasingly you see corporates choosing Bitcoin as a mode of transaction.

Most times, these also support the use of Ether.

Needless to mention, this enhances the overall appeal of the cryptocurrency.

It creates a meaningful avenue for sustained gains and qualitative profits.

The wider use of Ethereum for transaction also enhances acceptability.

It is undeniably, the key to a greater and better price discovery process going forward.

Moreover, the use of Ether also works towards integrating cryptocurrencies in the mainstream market.

As more and more users get comfortable with the digital opportunities, the potential rises.

The financial market will experience a higher degree of transparency.

Also, the credibility of transactions will add to overall cryptocurrency acceptance.

The most important factor here is investors will not get saddled with a single AltCoin.

They can freely use it for future transactions.

So in many ways, Ethereum highlights the future of digital transactions.

It is a reflection of the time to come.

By investing in Ethereum, you get a better opportunity to play future challenges.

The Ethereum App a Game Changer

When you look at investing in Ethereum, the Dapps is also an important factor.

It is the decentralized Ethereum App.

In this app-driven mobile world, the Ethereumapp undeniably helps in its popularity.

In terms of functionality, the Dapps is more like a conventional app.

But the beauty is that this is decentralized like the core cryptocurrency.

It runs on the basis of a series of nodes strung in a network.

There is no central source monitoring the operations.

So the risk of a server crashing or being hacked is far limited.

It, therefore, creates a more dependable set-up.

Therefore, there is no chance of server downtime either.

So, Should You Invest in Ethereum?

In many ways, there is a lot of merit in investing in Ethereum.

It is a secure and reliable cryptocurrency with minimum run time errors.

It is better geared to tackle future demand comprehensively.

Furthermore, it reflects comprehensive value over an extended period.

Moreover, the reliability of the cryptocurrency makes it a value buy.

It is autonomous and decentralized.

As a result, you see a wider appeal for this cryptocurrency for an extended period.

Most experts feel you can invest in Ethereum now for realizing greater value in future.

That is one of the biggest factors in its favor.

If you want to have a meaningful role in future digital finance, invest in Ethereum.

Initial Coin Offering to Raise Money for Your Business

The world keeps buzzing with different kinds of technological development.

Technology is doing everything possible to invade every aspect of our lives.

And it seems to be doing it without any reservations or apologies whatsoever.

These tech lovers have also brought their cravings into the business transaction space.

Now, the business space is more aware of things like cryptocurrency, and people are getting more and more involved with the study of blockchain.

Initial Coin OfferingJust as the world is beginning to get used to these means of doing business, there is another investment means that is slowly coming up – initial coin offering.

For you to be reading this post, you must have heard of this term before.

What is uncertain is whether you know much about the term.

Well, that shouldn’t be a problem because this is what you are about to learn in this post.

You are going to know how initial coin offering can be used as a fundraiser for business startups.

Hang on as you embark on one of your most thrilling adventures in the area of seeking after fundraising strategies.

An excellent place to start from would be to know some of the reasons why companies and entrepreneurs across the world are now turning to initial coin offering for their business endeavors.

Simply put, here are some of the benefits of using initial coin offering as a fundraising means.

Benefits of Initial Coin Offering

First, it gives you a chance to do business with as many investors as you can imagine.

An incredibly 90 percent of European and American banks now explore blockchain.

Taking advantage of initial coins offering will merely mean more and more investors for you.

So you can decide to increase your customer base today by merely switching to using ICO for your business transactions.

Secondly, there is an increase in liquidity.

Now, it is not about doing business, but you can also trade initial coin offering.

The liquidity of this medium of exchange is one mystery that has kept the world guessing how it is done.

Don’t worry about that; it is a story for another day.

It is good that you now know some of the benefits that come with using initial coin offering for your business transactions.

But while you are still smiling at these incentives, it is good you know the challenges that accompany the use of such currencies.

What You Need to Know

1. You Need to Choose a Jurisdiction

You do not just jump on this train because you feel it is okay without knowing the jurisdiction that will favor you.

Even if you have a tokenized asset, you still need to make sure you can find the appropriate jurisdiction that will be most suitable for you.

Some jurisdictions will regard your initial coins offerings as security.

Different places with their various jurisdictions, hence, you need to find the one that suits your needs the most.

2. Understanding Tax and Compliance Laws

Cryptocurrencies are yet to be recognized one hundred percent globally.

Ensure that you are only doing your transactions around places where initial coin offering has been thoroughly approved.

If it is going to help you understand this any better, some places are still adamant about the use of initial coin offering for business transactions.

But then, you can understand their position.

Most of this financial regulatory bodies still do not have a good understanding of how blockchain functions.

Laws for regulating cryptocurrencies are still very dynamic for now.

Until the world is prepared to ultimately accept it, you will need to make sure you aware of any changes that may arise.

Also, make sure you are well informed of the tax compliance laws.

Know your customer requirements

Here is another thing.

You need to know who you are dealing with.

Before you do any transactions, make sure the identity of your investors is fully verified.

While there are organizations that allow anonymous transactions, others advocate that you verify the identity of your business partner before you do anything.

Thank goodness a company like Civics was born to solve this problem.

No more hassles are arising from investors’ verification.

3. Blockchain Management Considerations

After your initial coins offering, there are still a couple of challenges that one has to deal with.

For instance, there are specific regulations that prevent investors from selling their tokens in their very first year.

Depending on the way you are structuring your offering, you may need to exclude investors from the United States of America from buying your tokens.

While fundraising through an ICO has to be carried out with great caution, the blockchain market is proliferating.

The blockchain technology makes life a lot easier when seeking for investors, but one still needs to be very careful, so you do not get burnt.

Initial coin offering only presents you with an opportunity to reach out to a broader group of investors.

What Initial Coin Offering as a Potential Fundraising Means

Fundraising

While it is natural for so many people to doubt the transparency behind blockchain technology still, some others are doing everything to get involved in the thick of the action.

With some level of optimism, people are beginning to believe that 2018 will witness the highest surge of initial coin offering.

How accurate this may turn out to be is entirely subject to past statistics as well as the will to believe in the future of cryptocurrencies.

According to a report that was published by LendEdu, out of the 79 percent of Americans that have heard of Bitcoin, only 14 percent own one.

This is what also tells you that there is more to come in the world of cryptocurrencies and initial coin offerings.

A lot of things are going to change with time, and that is for sure.

In the past entrepreneurs had to look for investors the hard way.

It was the scariest part of any business.

Hence, they were substantially limited in their quest to get reliable investors.

Virtual Currencies were the only source of investing.

But great thanks to young lads that came up with cryptocurrencies, they have done a lot of good to entrepreneurs.

Currently, a global exchange means in the form of initial coin offering has changed everything, and entrepreneurs are having a stroll in the park in the area of securing investors.

It is excellent to explore the opportunities that come with ICO but before you do that here are a couple of things you could do to keep you on the safe side of the bridge.

Testing the Water

There is no doubting it that exploring initial coin offering has turned out to be an exciting adventure for many businesses.

But making a direct move in this regards without considering how your business is going to fit nicely into ICO plans can be a disaster.

It is like jumping into a car and driving without actually checking the machinery of the vehicle.

You can tell where that car will land you.

You need to check if blockchain decentralization is going to provide any advantages for your product.

If your business is not ready for the volatility that comes with ICO, then it will be best for you to take a bow out of the race.

Initial coin offering is always going to be there for you to implement in your business transactions so do not rush into it and destabilize your business plans.

It is true that some businesses have experienced a sudden boost in their revenue, thanks to initial coin offering, but you still need to be very sure it is going to work for you.

Just because it worked for Storj does not mean it is going to work for you.

Storj had sold a lot of their tokens to investors and made over 30 million dollars in a brief time.

This is a simple thing to understand.

Their business model was suitable to work with initial coin offering.

Whether you agree or not, for now, ICO is not for all businesses. Not yet.

You Need to Be Prepared

Before you make any move for any ICO, you need to ensure that your product is up to it.

I mean you should have a mature product.

This is not something you want to try out for a product that cannot cut any ice or a new product that cannot impact the consumer community.

Businesses usually come out with one slogan.

This slogan is having a product that has come to change the face of the market.

They all say it, but at the end how many products revolutionize the market?

So many ends up not doing anything.

If this is the kind of impact you intend to make with your product, then you had better sit this one out.

You should see this as your traditional business plan where you state what your product can do regarding solving specific needs for customers.

Whatever you dim fit for any traditional business also fits for this before you move into exploring initial coin offering.

These detailed requirements are essential to your success in this regards

The reason is that it helps potential investors to relate to your product quickly and better.

Writing out those details goes a long way to tell them how they can trust in the product and how they will be duly rewarded for their investment efforts.

You should also have it at the back of your mind that if your product does not reflect any serious value, your chances of selling off any token will be low.

A low-value product will equally affect your token security, allowing the government to almost clamp down on your product.

This is not good for the brand you are trying to sell.

Hence, in all, you just need to be prepared before venturing into ICO.

Building a Community

Your token’s value is directly determined by how the community embraces it.

For you to make the most of your tokens, you will need to make the right impression on the minds of your potential investors.

Naturally, you need some time to create a community of this sort.

Do not be fooled by your fantasies to have a successful community pop out of nowhere.

That is hardly ever going to happen.

As it is with any other business, you need to carry out aggressive marketing to get this one done.

While you are at this, you should remember the essence of timing.

It is never too early to reach out to your community of customers and engage them on what they stand to gain with your product.

So if you want complete success with your initial coin offering, you need to start early enough.

Some of these hangouts include Facebook, Reddit, Slack, etc.

In these social media platforms, you can create a community without any hassles.

And with your forum kick-started, you can get people of like minds to engage on your ICO.

Try to be as open-minded as you can ever be.

It gives you the opportunity to entertain feedbacks from all over the world.

For instance, many countries are beginning to switch their allegiance in the area of supporting cryptocurrencies.

Always remain positive about achieving things, you should never be discouraged.

As for springing up a thriving community of your customers, you need to start from somewhere before it can become significant.

So get on with it and stop being cynical about how it is going to fly.

Be Aware of the Risks

Honestly, there are so many risks when it comes to initial coin offerings and cryptocurrencies.

Deregulation and volatility are just some of the areas you need to be informed of.

These are areas that are continually being worked upon to improve the cryptocurrency ecosystem.

So while you are aware of the risks, it is not the same thing as getting scared of exploring an ICO.

You should know by now that any revenue system does not support assets produced by an ICO.

So if anyone loses a token or loses an asset that is tied to a token, that currency cannot be accounted for.

Some people strongly believe that the whole cryptocurrency excitement is going to come to an end someday.

At least that is what they wish.

Others believe that there could be a small nip in the bud for cryptocurrencies because of their volatility.

But whichever side of the bridge you seem to find yourself, saying that cryptocurrencies will suddenly come to an end one day is some big joke.

Bitcoin is the most popular cryptocurrency, for now, so you can start from there.

There are times its value depreciates in the market, but on so many occasions it has bounced back.

You would naturally expect it to.

Therefore, if you are waiting for the cryptocurrency market to crash one day altogether, you may have to wait for as long as forever.

Not good news for the cryptocurrency and initial coin offerings critics, but that is the hard truth.

So if you are on that side of the bridge, you will have to swallow that bitter pill of truth.

Conclusion

In summary, you have heard what you needed to understand

Also you now know what you need to know concerning initial coin offering.

You now know that there are a lot of things one needs to take into account before jumping into these waters.

Otherwise, you hurt yourself in the process of trying to search for investors.

You also learned that there are some significant risks with ICOs, and as such, you have to be careful in the way you deal with them.

You have heard the good, the bad and the ugly.

But whatever you have heard, the fact remains that the grass is still very green for ICOs.

Also, every smart business owner is supposed to take advantage of it.

It is a risky wave, and it is a wave that is worth riding on.

Explore the ICOs and have your business moved to the next level.

Build a global presence by merely implementing ICOs in your business today.

You certainly have no idea of how much you can turn things around in this regards.

Move with the ICO trend and don’t get left behind.

Doing business is also about taking risk.

So don’t be afraid to take on new challenges and give your best shot.

Success is on its way!

How to Invest in Bitcoin Risk Free

Almost everyone now wants to invest in Bitcoin.

Actually, the entire cryptocurrency space has seen phenomenal rise in interest.

This is after the huge price rise in the recent history.

In 2017 alone, Bitcoin prices doubled in value.

But again in just one month, the value dropped by 50%.

So in many ways, investing in Bitcoin is all about grasping the basics of cryptocurrency.

Bitcoin InvestmentIt goes without saying that the Bitcoin rates are very volatile.

The Bitcoin market is largely unregulated.

Moreover, this cryptocurrency trade is banned in many countries.

So when you are looking at investing in Bitcoin, you have to consider many facts.

The most important elements are the risks that you have to consider.

In many ways, that will fashion the amount that you are comfortable in investing.

The kind of knowledge and insight that you have in the market determines your exposure.

The safety and security of your coins and the investment rationale is important.

Often this is the fundamental of Bitcoin investment.

This will be able to help fashion your investment in the right manner.

Moreover, the fund allocation too will depend on the overall investment rationale.

The degree of risk is a very important consideration.

You must understand that the endeavor has to be for no risk or low risk.

But the fact is that the volatility and uncertainty magnify the risk in Bitcoin.

So how do you invest in Bitcoin risk free?

Some will tell you that it is impossible.

But we believe that it depends on the depth of your insight.

You have to assess the extent of risk you are comfortable with.

That will help you take a balanced call on the overall risk exposure.

Making an Informed Choice

If you analyze the scams and frauds with regards to Bitcoin, there is a clear trend.

Almost invariably the premise is people aren’t sure about what’s happening.

Most times, scammers capitalize on this cardinal problem.

People have started to invest in Bitcoin only recently.

Moreover, the craze is more about the striking gains.

Investors have been mindlessly putting in money just to clock the gains.

That is often the biggest problem with the overall ecosystem.

You have to understand that the gains don’t come out of nowhere.

There is always a price and a degree of risk attached.

Of course, it is possible to manage the risk.

By this I mean you will have to assess the risk and take steps.

Let’s say if you can spare $1 and risk $1, that is all that you must invest.

Risking $100 when you cannot even hope to repay it if you lose is not worth.

Therefore the primary requisite is that of a well thought out decision.

You should be very sure about when and how much to invest.

In this context, you have to make knowledge your power.

This will ensure that the degree of understanding is deep and meaningful.

For example, a lot of Bitcoin losses are a result of ignorance.

Many times, investors are not careful about what to buy and who to buy from.

This is decidedly the biggest risk in any investment.

You hear of people mortgaging their houses to invest in Bitcoin.

But the question is where exactly are they putting their money in?

How credible is the price hike expectation?

How can they choose to recover the money in case there is a huge loss?

This is exactly where making an informed choice is important.

It reduces risk considerably.

Choosing the Right Index

When people ask how to invest in Bitcoin risk free, the first prerogative is choice of exchange.

Choosing the right exchange to buy or trade the Bitcoin can help reduce risk.

This is because theft is one of the biggest risks in Bitcoin.

Be it traders getting scammed or losing Bitcoin.

So when you invest in Bitcoin, this is the first step.

Avoid investing in a hurry.

Don’t decide to invest because someone else decided to.

If you invest in Bitcoin, it has to be a well-considered decision.

So, you should devote sufficient time in choosing the Index.

Given the popularity of cryptocurrencies, new exchanges are coming up every day.

But are all of these genuine?

Will you be able to get the kind of return that you envisage?

Well, getting an answer to all these questions are very important.

You have to undertake thorough research before choosing the Index.

For risk free investment, it is better to go with established names.

Stick to exchanges that have continued to be in operation for a while.

In this way, you can avoid getting stuck by fly by night operations.

A bit of research on the internet can help too.

Find out the turnover and the trading volumes.

This will give you a fair idea of the kind of trade they undertake.

Most credible exchanges will be able to provide these type of data easily.

You should also look for reviews.

Well, not all reviews will be favorable but try to get a sense of the trend.

Is the maximum number of users positive or negative about the exchange?

Find out the kind of customer support you can expect in times of dispute.

That is a very important concern and also reflects the quality of after sales service.

Choice of Wallet

When you want to know how to invest in Bitcoin risk free, this is the most important concern.

You have to understand theft in Bitcoin transactions are more than $4 billion thus far.

In January 2018, hackers stole $530 million from users of a Japanese Exchange.

This is one of the biggest after the 2014 theft at Mt Gox.

Detailed reports indicate that most f the theft was by accessing customer deposit.

This means that the customer wallet that most Bitcoin traders use needs to be up to the mark.

Most times, these wallets are the primary culprits.

Though the purpose of the wallet is to safeguard the customer’s money, they are compromised.

It can happen due to many reasons.

One of the biggest and most common is hacking wallet private keys.

Therefore, it is important to protect your wallets in a constructive manner.

You need to be careful about who you are sharing the password with.

Also, look for a strong alphanumeric passcode that is not easy to hack.

You have to treat this wallet like a bank safety vault and safeguard accordingly.

But there are some wallets where the exchange has the private keys.

You have to be very careful before you decide to choose any of these.

Often the reasoning that exchanges give is to protect customer interest.

But there are some unscrupulous ones who coolly escape with your money.

Consult users and read detailed reviews before you trust your money with them.

Moreover be careful about how you download wallets.

There are many fake and look alike wallets.

They make you believe they are genuine and escape with your money.

Phishing instances are also quite popular.

It is always better to download wallets directly from the website.

The Reputation of the Wallet Provider & Offline Options

Another important consideration is the reputation of the wallet provider.

As a rule, it is best to avoid exchanges unless you know them for sure.

Buying a Bitcoin is never a huge problem.

It is the storing part that gets really tricky at times.

So you need to take all of these factors into consideration.

Many established exchanges even provide insurance cover for their wallets.

This means that even in case of a theft, investors can hope to get some money.

Moreover, exchanges that have been in operation for long speak for themselves.

But if you ask and offline Bitcoin storage is always better.

There are many providers who provide secure Bitcoin storage systems.

So if you are a serious Bitcoin investor, the first step is investing in a secure system.

The cardinal rule of the game is that you must store Bitcoins where you have direct control.

Think about it, if you had an expensive jewelry, will you leave it with a friend?

The chances are that you will rather keep them on your direct watch.

You will guard it 24×7 and look out for a bank vault for safekeeping.

The same holds true for Bitcoin.

It is much simpler to steal them across the internet than in person.

Tracing them is also very difficult.

Therefore, the easiest route is to save them in offline storage hardware.

Remember you have to take every possible step in maintaining the full security of your investment.

This is undeniably one of the most important steps.

When you consider to invest in Bitcoin risk free, this is the most important risk.

Storage of Bitcoin is becoming a matter of concern world.

The rise in valuation is further exacerbating the problems.

Can You Time the Bitcoin Market?

Now, this is a fundamental question about any investment.

Can you really time the market and reduce risk?

Well, that is a tough ask across asset classes.

Think about any asset class, is there ever the right time to buy?

Mostly there is never.

It all depends on your investment objective and target.

Per se, there is no set rule to buy Bitcoins.

But the basic rule of investment stands true for this too.

It is never a good idea to buy during a peak in the market.

Buying an asset class when prices have depreciated is best

Remember what Warren Buffett said about investment.

Buy when the prices are cheap.

But at the same time, it is never a good idea to buy during a market crash.

It is always better to let prices stabilize and then buy.

But at the same time, don’t let prices rise too much.

‘Identifying a bubble from a genuine upmove is the challenge.

While in hindsight, everyone can tell you what’s a bubble, the reality is different.

Sometimes it can be an actual rally and sometimes you might be stuck in a bubble.

The broad rule is to not lose sight of your investment goals.

How much can you invest and where you need to put a stop loss.

Also, make a mental note of the kind of returns you seek.

But one standard rule is don’t compare cryptocurrency cycles with traditional ones.

The rate of changes, volatility and overall price swings can vary a lot.

Unlike conventional financial markets, the range of intra-day swings can be huge.

A dip may not be the floor.

That is why don’t buy when there is huge volatility.

Adopt a wait and watch approach.

This will inevitably yield the best possible results.

Bitcoin Mining Is Not for Amateurs

If you are curious to know how to invest in bitcoin risk free, avoid Bitcoin mining.

Most times Bitcoin mining is a very specialized area.

It needs detailed understanding and thorough idea of the sector.

There are some firms that may offer to undertake mining for you.

But beware; most times these are huge scams.

They run away with the fees money, and you have to reconcile to the losses.

The smallest of mining operations need more than million dollars’ worth investment.

It is not a profitable business for beginners and veterans as well.

Moreover, this is one of the biggest risk elements in the overall game plan.

Currently, you need huge datacenters and warehouses to make it profitable.

If you are just operating out of the home, it is not worth the effort.

As the reward for it also reduces every four years, it is more of a waste of time.

Even if you want to seek expert help, it may not bear fruit all the time.

The risk of being scammed is quite distinct.

What is more pertinent is that you can earn the better profit by simple trading.

The question then is why you would want to go through this trouble.

Taxing Times

Now, are you wondering how tax is a risk to Bitcoin investment?

Well, many people were initially attracted to Bitcoin because of lower tax liability.

But the truth is there isn’t complete clarity on the matter yet.

There are in fact, very few financial authorities who have complete clarity on this issue.

But let us understand something, there is no free lunch anywhere.

If you are earning money and profit through Bitcoin, you will surely have to pay tax.

But the good news is that in most countries Bitcoin is VAT exempt.

This means this does not attract tax for selling.

In many countries like US and Germany, it is considered at par with the property as an asset.

So as a result, this does attract taxes levied on financial products.

But that does not mean that the income generated is tax free.

In fact, that is still an extremely confusing area for financial consultants.

There are several loopholes that investors can take advantage of.

For example, you don’t have to pay any taxes for gains within a year.

In case you are not holding these coins for more than a year, tax liability is limited.

Moreover, there are many ways you can maintain anonymity in your trade.

That means you can avoid paying taxes in many ways.

But this will not be possible for long.

Most genuine exchanges maintain a record of all your transactions.

This means that sooner or later a more uniform tax regime is likely.

At that point of time, you have to work out ways to maintain gains.

The anonymity in trade is another big issue.

As of now, most of the tax advantage is derived primarily out of the anonymity in transactions.

Is Risk Free Bitcoin Investment Possible?

Apart, there is another risk when you invest in Bitcoin.

It is primarily the risk of regulation.

You need to understand that this cryptocurrency has been banned by many countries globally.

In that situation, it can impact your transactions as well.

So before you buy Bitcoins, it is important to verify its authenticity in terms of trading.

Therefore, it is very important to understand how Bitcoins make money.

It is still in a relatively nascent stage and requires lot more clarification.

Also, you need complete clarity on how to store them in a secure fashion.

Just buying them to take advantage of the spike in prices will not help.

You need a comprehensive view of how the currency operates.

Only then, you will grasp how to invest in Bitcoin risk free.

Details of the Bitcoin Scams that You Must Know

As the popularity of Bitcoins rises, Bitcoin scams are becoming equally rampant.

Bitcoins have seen a meteoric rise in prices in the recent past.

As a result, you have seen a renewed interest in them.

People for every walk of life are now trying to grab a part of this phenomenal pie.

Suddenly everyone is keen on investing in Bitcoins.

But popularity has its own unique problems.

The most pronounced one is that of scammers.

The moment an avenue comes up as a popular means of making money, scams come up.

Bitcoin ScamsThe idea being they can make a few extra bucks from investors who are not careful.

One of the biggest examples of Bitcoin scam is the huge fall in prices in January, 2018.

The value of Bitcoin plunged a whopping 50% from the 2017 values.

Even other cryptocurrencies like Ethereum and Litecoin felt the ripple effect.

An anonymous Bitcoin Exchange BitConnect also shut shop suddenly.

It has been alleged to encourage a Ponzi scheme.

Well, these are not just two isolated instances.

In many ways, they are strung by the common link of greed and volatility.

Well, that is another common term with reference to cryptocurrencies.

We often hear about volatility in prices.

Well, the volatility or the sudden swing in prices can also be due to the overarching fear factor.

Increasingly, you will notice countries across the world are formulating regulations.

These are all designed to bring in a semblance of discipline and credibility to Bitcoin trade.

As a result, the cryptocurrency industry is in the grips of huge changes.

Perhaps that is the reason you see the bubble bursting at many points.

You have many players wrapping up operations before they fall into the regulatory trap.

Prevalence of Bitcoin Scams

This is perhaps the main reason why you have to be aware of Bitcoin scams.

If you trace historic details, the current bubble is also an outcome of lack of regulation.

For so long, the Bitcoin industry has remained like an exotic island.

Very people accessed it; very few people traded in it.

The exchanges and operators were close-knit.

But as this cryptocurrency started gaining momentum, the demand also increased.

You started seeing more and more genuine and focused investors getting into the game.

So suddenly the questionable trading practices became a huge problem.

Artificial price manipulation, inflating Bitcoin rates and all such related issues were highlighted.

It is needless to mention that the Governments world over could not remain calm anymore.

As the global participation rate increased, the need to regulate it too became important.

Many large-scale manipulation techniques also came to the forefront.

Many countries openly termed these transactions illegal.

Bitcoin came to be banned in several countries globally.

As a result of this, the Bitcoin industry has suddenly woken up to the need for regulation.

Well, this does not mean that all manipulators will disappear on their own.

That will perhaps never happen.

But at the same time, a certain amount of accountability seeps into the system.

People recognize the need for better and long lasting regulations.

Also as every scam unfolds, investors also recognize the many ways they can be fooled.

This will make them more cautious while dealing with the money.

It is like forex trade scams.

Is forex trading a scam?

No, it is not, but at the same time, there are many who take advantage of general lack of awareness.

Well, with regards to Bitcoin trade too, this is one of the biggest problems.

Bitcoin Wallet Scam

Fake Bitcoin wallets are perhaps the most rampant Bitcoin scam.

Bitcoin users need these wallets to store their funds.

They need the wallet to undertake transactions as well.

Now we all know that there are many types of Bitcoin wallets.

  • Online Wallets like Web wallets
  • Mobile Wallets
  • Desktop Wallets
  • Offline wallets or hardware wallets

On an average, beginners try to go for the easy to use options.

In this regard, the mobile wallets are very popular.

This is predominantly due to the convenience and quality they represent.

Scammers too have taken note of this trend.

So their strategy is quite simple.

They want to take advantage of the trend and defraud people.

The anonymity that these wallets provide acts as an additional cover.

The modus operandi is quite simple.

They create fake mobile wallets for Bitcoin transaction.

They then use it to scam innocent and unsuspecting traders.

But the question then is why a trader or investor will fall into this trap?

Well, the scammers latch on to the credibility that certain established wallets have.

Think about a popular and well-known wallet like Coinbase or even Mycelium.

How do you establish its authenticity?

Well, normally by their logo or unique features.

The scammers often target these very credentials.

They trick investors by even using the same logo with a subtle difference.

To a beginner and sometimes even veterans, it is hard to distinguish the real and the fake.

The result is they lose their money thinking they are safeguarding it.

Most times, new users try to establish authenticity as per available data.

To make it worse, scammers are using increasingly more sophisticated system.

Some of these fake wallets have even found presence in Android and Apple play stores.

Transactional Anonymity

There is another popular Bitcoin scam using Bitcoin wallets.

Yet again, the peg for these scammers is quite simple.

They capitalize on your intent to make money faster using a popular medium.

Now they add another dimension to this.

They promise you greater transactional anonymity.

In simple words, it means that it helps you withhold your identity better.

While on the face of it, this seems like a decided advantage, there is another aspect to it.

What most users forget is that the anonymity is for both the sender and the receiver.

In fact, some recent studies revealed that most times the transfers are to the same account.

Victims do not realize it, but they are at the end of the day sending money to the same account.

So without any effort whatsoever, the money gets transferred to the scammer.

The victims meanwhile believe that their money is safe.

By the time they realize the scam, someone’s already disappeared with their money.

So the question now is how exactly does this Bitcoin scam work?

The user downloads the wallet and begins using it.

For sometimes at least, this wallet functions normally.

This is important because otherwise, you will lose the user’s trust.

The wallet user starts getting comfortable with the wallet and also starts becoming a little careless.

But once this wallet reaches a certain limit the scammer start their operation.

The moment they hit a pre-decided limit, the wallet is emptied out.

Thanks to the anonymity promised, users cannot trace the beneficiary at all.

One of the best ways to avoid this problem is to download the wallet from safe sites.

Identify some pre-decided and well-established wallet and download directly from the site.

This will make sure that you do not end up downloading a fake wallet.

Cloud Mining Scam

This is another Bitcoin Scam that you have to be wary about.

Bitcoin miners are essentially the people who look to enter a blockchain.

Every successful attempt is rewarded with new bitcoins.

In many ways, this is an important exercise.

It validates every transaction on the blockchain.

Moreover, it ensures that there can’t be a double transaction on the same formula.

Now you may not be a pro at it.

Or you may feel that a professional can do it with better success rate.

As a result, you may appoint a cloud mining company for it.

Most times, these cloud mining companies will levy a small fee.

In return of these fees, they will mine a bitcoin or any other cryptocurrency.

The advantage is you get the new bitcoin rewards but don’t have to invest in hardware.

But the advantage of this mining exercise is also misused.

This has become a hotspot for Bitcoin scammers.

In this case, the scammers float websites promising great service.

But the actual mining does not happen in this case.

However, investors do not realize it initially.

The fee for mining has to be paid upfront.

So they create fake mining contracts with the users.

The fake mining sites begin with paying much lesser than the contract value.

They start reducing the amount bit by bit.

Eventually, the mining firm stops paying to the customers.

Bit by bit, you will notice that your fund starts dissolving.

So in simple terms, this is more like a Ponzi scheme.

They get paid as long as they keep buying contracts.

Once that stops, they also stop getting paid.

Some of the best known Bitcoin scam involving mining include Cointellect, Hashinvest.

So you have to be very careful about select a firm for Bitcoin mining.

Thorough research is the key to best possible results.

Also, look for the past results to understand the potential.

Bitcoin Investment Scams

The Bitcoin industry has seen a phenomenal rise in interest.

People from all walks of life are looking to invest money in it.

But the problem is sometimes the investment schemes are actually scams.

They promise huge returns to investors to users.

But the payment is not as one lump sum.

They keep paying investors small amount daily, but it just stops suddenly one day.

The scheme founders simply disappear with the investor’s money.

The relative anonymity of transaction emboldens scammers even more.

This practically makes tracing them impossible.

So in many ways, this Bitcoin Scam is quite similar to the cloud mining scam.

Essentially this is also a type of Ponzi scheme.

Initially, they appear to be very promising, and the returns attract the users.

Just like in a Ponzi, often investors also reinvest the returns.

As a result of this, the resultant payout is much lesser than fund inflow.

Moreover, they keep paying small amounts on a daily basis.

This provides a certain amount of assurance for the investors.

They feel their money is in safe hands and are encouraged to invest more.

But eventually, the Ponzi scammer decides to fold up operation.

Payouts start lessening, and eventually, it stops suddenly.

As a result, the investor loses the entire investment.

This normally happens when an investor tries to withdraw the entire investment.

So if you want to invest in Bitcoin, thorough research is most important.

You have to make sure that a reputable company manages the scheme.

That is the primary requirement.

Moreover, be practical in your return expectation.

Don’t fall for schemes that promise spectacular returns or easy money.

Beware of Fake Exchanges

Credibility is one of the biggest requisites for safe Bitcoin trade.

The moment you tread out of the reputable and credible brand, you are exposing to risk.

The core idea to avoid Bitcoin Scam is to look for the right brand.

In this context, the choice of Bitcoin Exchange is also crucial.

The Bitcoin Exchange is primarily the marketplace that enables Bitcoin trade.

This is also the point that allows the exchange of Fiat currency for the cryptocurrency.

But this is also the point where there is maximum scope for fraud.

A fake bitcoin exchange frauds users by swindling the payment meant for Bitcoin trade.

They take the money but do not give any Bitcoin in exchange.

So the question is how they attract users?

Low processing fees and credit card transactions attract new investors.

Almost inevitably they are new players.

They do not have too much experience in dealing with exchanges.

So inevitably they easily get lured by the low processing rate.

So the best way to avoid this is to transact with a reputable exchange.

Look for exchanges that have good reviews.

If you can, try and connect with users who have dealt with the exchange.

Phishing Scams Using Bitcoin

When you consider Bitcoin Scams, practically any financial market scam can be replicated.

Bitcoin phishing scams are as much a reality as it is in case of other financial instruments.

What exactly do you understand by Phishing?

Most times in case of Phishing, personal information is stolen using emails.

In this case, a receiver gets an email claiming they have won a specific number of Bitcoins.

Many unsuspecting users fall into this trap.

They are so elated that they have won that they happily provide information that is asked.

Most times they have to access the Bitcoin wallet to collect the Bitcoins.

The link for this is provided in the email.

The email link is actually a fake link that instantly copies all the information provided.

As a result, the fake operator gets access to your personal Bitcoin wallet.

So now they transfer whatever funds you have in there to their account.

Therefore caution is the name of the game.

Do not disclose personal details on email links.

Always access your mobile wallets directly on the site.

Remember no genuine operator will ask you for these personal details.

Donations Doubling as Bitcoin Scam

Another Bitcoin Scam that’s gaining currency is donation scams.

Human emotions and feelings are the biggest targets for scammers.

They are experts at making the most of your emotions or nature.

It can be your greed, your need or simply the desire to own more money.

In case of donations, they capitalize on your compassion, your want to earn fame.

The mode of operation is similar to other donation scams.

They create a fake webpage pleading you for donation.

The only difference is in this case they ask you to pay in Bitcoin.

Invariably they target donation pegs based on recent news pegs.

For example, after the Orlando attacks, there was a fake page calling for the donation.

The page called for generous contribution to help the survivors.

But even in this case, thorough research is necessary.

Be very sure about the organization or people you are donating to.

If possible conduct a background search.

Be 100% sure about how genuine the organization is.

Conclusion

Bitcoin scams are the outcome of trying to latch on to the sudden rise in Bitcoin.

In many ways, you can liken it to the gold rush.

Everyone is running to grab a stake in it.

The sad part is anyone who fails to do the due diligence is exposed to the risk of a scam.

Therefore, we can conclude that human greed is the key trigger for Bitcoin Scams.

The Most Efficient Bitcoin Mining Hardware to Maximize Your Profit

Give the huge rally in Bitcoin; many people are interested in Bitcoin mining hardware.

But as you move ahead, there are many related questions like is Bitcoin mining profitable?

However, the most important topic at this juncture is what is Bitcoin mining?

In very simple terms, it refers to looking for new Bitcoin.

Essentially this is a process where the Blockchain verifies every new transaction.

This is a process where individuals manage to enter a Blockchain and get new Bitcoin.

Every miner gets a reward of 25 Bitcoins after managing to enter a blockchain.

Earlier in 2009, it was 50 Bitcoins.

So, essentially this number gets halved every four years.

So it is going to be reduced even further going forward.

Bitcoin Mining HardwareBut you must remember that you cannot mine an infinite number of Bitcoins.

Once the mining process hits the 21 million mark, there will be no new bitcoins left.

Every year the mining blocks are cut down by 210,000 blocks.

But that does not seem to deter new miners.

Often it may take close to 1,789,546,951.05 attempts before you crack one key.

So in many ways, it is almost close to looking for a needle in a haystack.

This is where the question about its profitability comes to play.

You have to take into consideration whether it is worthwhile to choose Bitcoin mining?

But before that, it is important to seek details about who can do this trade.

More importantly, the Bitcoin mining hardware.

That can often be the deciding factor for your relative rate of success.

Insight Into Bitcoin Mining Hardware

You do not have to be a computer expert for Bitcoin mining.

Even relative computer novice can start Bitcoin mining.

What they need is a basic computer, software and specific bitcoin mining hardware.

Most times, the software that you need is fairly straightforward.

But the bitcoin mining hardware is the key determinant of one’s success.

Once these are in place, you will also need a bitcoin wallet.

This is generally used to store the bitcoins that you earn.

But you have to be careful about storing these coins properly.

This is because the Bitcoin wallets are quite susceptible to theft.

At the initial stage in early 2009, the regular PCs had the reasonable speed to support mining.

But as more and more Bitcoins are generated, the process keeps getting harder.

This is why you now have ASIC or application specific integrated circuits.

In simple words, this is a specific hardware that does a specific job.

In this case, this hardware has only one function, mining Bitcoin.

A variety of mining startups are devising a range of options.

All of these are targeted towards mining faster and more effectively.

Most of these also involve considerable spending as well.

This is because bitcoin mining hardware involves significant cost.

In many ways, the more efficient hardware you want, the more you spend.

It is important to gauge the efficiency of the hardware because it can be a game changer.

Often it is the single most important factor that determines your success.

Bitcoin Mining Pools

But what if you are not in a position to afford this cost?

Does it mean you will have to forego this dream?

Well, this is exactly where the mining pools will help you.

The word pools indicate a group of miners from around the world.

They have all united with a common goal.

They want to pool their computer power for bitcoin mining.

There are many small time sites which facilitate this service.

Depending on the rate of mining your computer enables, you lend speed to the group.

Speed also ensures that you receive a larger share of bitcoins.

Technically bitcoins can be broken into eight decimal points.

The only problem is these pools are unregulated like the wallets.

So technically the pool is under no legal obligation to pay anyone their cut.

The only advantage from this is that your mining hardware is much cheaper.

In fact, USB ASIC miners can join a pool for as little as $20.

However, if the hardware is relatively low-end, you can lose money.

That is a huge risk on the efficacy of the mining process.

Moreover, the price volatility is a huge factor to ponder upon.

That also affects the rate of mining to a large extent.

So while the bitcoin mining pool is a convenient option, efficiency is a concern.

It surely provides a more affordable service, but the reliability is questionable.

Therefore, if you stable, safe and secure options bitcoin mining is not for you.

Individual PCs with special hardware is often the best bet to address this.

So then the question is what do you choose?

There are various parameters to base your choice:

  1. AntMiner S9
  2. Avalon 6
  3. AntMiner S7
  4. Antminer S5
  5. SP20

1. AntMiner S9

AntMiner S9

This is one of the most popular and user efficient mining hardware for Bitcoin

Even if you are a regular hobbyist, this hardware can be a game changer.

The hash rate at 14/THs is one of the best offerings across the industry.

It is needless to mention that this is one of the most efficient alternatives.

Its efficiency levels are at ~0.1 Joule per GH/s.

However, this does not come cheap.

This cost anywhere close to $3000.

But the advantage is lower the electricity cost, better is the efficiency rate.

The expectation is that as the bitcoin mining dynamics keep changing, it will be cheaper.

It has a definite edge over others on the basis of the nanometer technological advantage.

Existing power supply units are fully compatible with this one.

However, you will have to buy these separately.

It does not come with the hardware.

But the overall technological advantage makes it one of the most efficient one.

Compared to its immediate predecessor, it is almost 2.5x more efficient.

However, this one uses a large amount of electricity.

In fact, even if you compare with the S&, it is about 300W more.

Most importantly this system is easy to maintain.

The servicing and maintenance of the system are relatively simple.

Most times, all that you need is a well-ventilated room for it to function normally.

The only problem is that the power supply is sold separately.

But the question is does it make sense to invest in it.

It is ideal for more effective Bitcoin mining in the immediate present.

But at the same time, you have to take into consideration the impact in future.

Just like other effective options, this severely dents scope for profitability going forward, the overall return on investment in just above one year.

2. Avalon 6

Avalon 6

If Antminer S9 is the king, this one is an able deputy of Bitcoin mining.

This is, in fact, the second most efficient option.

One of the best features is the low noise levels.

Compared to most other variants available in the market, this one is comparatively silent.

You can easily run this on a reasonably good power supply unit.

Any unit that draws close to 1100W power is competent for this mining hardware.

It can run quite efficiently on these.

This hardware costs around $550 with a significant discount on bulk buying.

In many ways, this is one of the strongest rivals to the AntminerS7.

Though it is less energy efficient in comparison, the other features make up for that loss.

It is undeniably one of the best in terms of customization options.

No wonder it is inevitably one of the best bets for a wide range of hardware enthusiasts.

In terms of hash rate, the Avalon 6 has a reading of 3.50TH/s.

You may look at this as a demerit.

But the core efficiency is not hampered too much.

The other combination of features makes up for this one function in multiple manners.

The temperature control too is satisfactory.

You will see that the system is relatively cool and benign even after it is overclocked.

Though the system runs on a comparatively smaller fan, it can cool it sufficiently.

This is because the system has such a unique design that even a small fan can cool it.

Another important feature is the extreme user convenience.

Be the basic or advanced features; users can access these with relative ease.

The setup is so designed that it can access an IP address quite easily.

This further improves efficiency in terms of setting up the device.

3. AntMiner S7

AntMiner S7

The hash rate is one of the most important features of a mining hardware.

It essentially refers to the rate at which the mathematical formulas are being solved.

This hash rate keeps growing depending on the number of members who join.

This has the capacity of 4.73TH/s.

It has a power usage of 1300W.

The price of this mining hardware is north of $400.

It is one of the most popular ones since its release in 2015.

In case you see any recent mining operations, you will see tons of these S7.

The strong performance track record and the affordable price are the biggest triggers.

Moreover, this hardware is powered by a 28nm BM1385 ASIC chip.

There are a total of 135 chips, and these are spread across 3 boards.

There are two fans that keep the chips cool.

The strong case allows a unique arrangement system.

This facilitates multiple miners performing at the same instance.

Whether you are a professional or an amateur, the S7 can be a convenient option.

Its power supply unit is a relatively high-quality one at 1600 Watt.

The APW3 is specifically designed for Bitcoin miners.

It is needless to mention that it enhances their overall performance.

It is also a very efficient system.

At any given point of time, you don’t lose more than 7% electricity.

The electricity loss I am referring to is between the miner and the designated outlet.

It needs around 205 Volts for proper functioning.

Most importantly the manufacturers do not send the 16A power cord.

So if you are planning to buy this, you must keep it in mind.

Most importantly this set-up enables easily allows up gradation.

So if you need to upgrade to the next level, you can easily do so.

This one is, however, a bit noisy.

4. Antminer S5

Antminer S5

These Antminers undeniably have some of the most versatile range of options.

They variants are generally an improvement on the predecessor.

But at the same time, each one is fairly self-sufficient in providing maximum value to the user.

When you reach the lower end of the price spectrum, the Antminer S5 provides a good bet.

It is a fairly efficient and low-cost miner.

The specialty is that it uses very low power but has a reasonable hash rate.

This means this is an excellent option for beginners.

It helps them master the various challenges of bitcoin mining.

But at the same time, you are not spending too much trying to buy a hardware.

It is in fact, one of the best for experimenting with bitcoin mining.

However, this device is cooled by a single fan and can be quiet noisy at times.

It is one of the fastest ASICs available today.

The best part is it can be used efficiently by both new users and veterans.

But if you see the host of new variants, then the S5 has in many ways outlived its features.

So the question is why are we reviewing it?

Well if you are an occasional miner and not too keen on profit, you can use this.

For those who are operating on Budget, this is one of the best options.

It is slightly more expensive than the SP20, but you can still get it under $300.

That makes it a great option for the price-sensitive public.

When you compare this system to other options, power usage and profitability are in focus.

You must, however, remember that it is hard to mine bitcoins from a single S5.

Therefore it becomes necessary to join a pool.

That alone will help yield relatively better results.

5. SP20

SP20

If you just compare the hash rate, this one is similar to the Antminer S5.

Compared to the Antminer S5 at 1.16TH/s, it has a hash rate of 1.3-1.7TH/s.

But the cost is the biggest positive for this Bitcoin hardware.

It costs just a little over $100.

That means you can easily afford it even if you are an amateur player.

Despite the lower price, it is a very effective bitcoin miner.

The noise level too is quite okay for those looking to mine bitcoin at home.

It is fairly user-friendly and has some unique options.

It is a powerful and very neat device that can help you derive value.

The flexibility of design and usage are the best features for this device.

In terms of power supply, it is compatible with the ATX PSU.

But if you are looking at cheaper alternatives, you can also try dual wattage of 750+.

But this is not a very profitable device.

If you compare the ROI and the electricity consumption, it will be very clear to you.

The only way you can make it a profitable device is by making electricity free.

That by far is the only option that will help you get maximum value from this.

Otherwise, the average cost of mining and the relative operation cost will cancel each other out.

Repeated results indicate that you are not even mining 1 BTC a year.

The tally sometimes is even less than that.

In such a scenario, it is a sheer wastage of money and electricity.

Though the hash rate and price often attract users, you have to take a holistic view.

It is imperative that you create a tally of the pros and cons before deciding on it.

Conclusion: Looking for the Ideal Bitcoin Mining Hardware Is Tricky

You cannot judge by the sheer price of the product.

That will not be sufficient to get a value for money deal.

It is very important to take a comprehensive view.

Always judge the relative use and profitability of the device you are buying.

If the hardware you decide on is expensive but yields better profit, it is a good deal.

The core idea is to take a balanced view.

Also, it is important to take a view on the future implications.

For example, bitcoin mining rewards have now been halved to 12.5.

In another few years, it will reduce even further.

So, you have to take that into perspective.

Calculate if this will still be a value buy going forward.

Therefore the bitcoin market is extremely dynamic.

It is better to go for reasonably priced bitcoin mining hardware.

These will help you get better profitability from the hardware.

It will help you make money by acquiring bitcoin.

Bitcoin Price Prediction: Will Bitcoin Price Go up or It Will Hit Zero?

The Bitcoin price prediction has seen some wild swings recently.

Prices rallied to $9,000 levels and then fell.

With so much of price volatility, a lot of attention is diverted to Bitcoin price prediction.

The question is, will such high prices sustain over the longer term?

The prediction is that prices may go up as high as 200% in just one year.

This is after the recent 300% rally in Bitcoin prices.

Bitcoin Price PredictionIn fact, it has doubled its value in 2017 alone.

But most market players are questioning the sustainability.

Their fear is what if bitcoin prices crash?

Well, you must remember that the operation module of a Bitcoin is very different.

Unlike stocks or bonds, these are far more volatile.

Though investors are very excited about this space, they have to remember some basic facts.

  • It does not operate like most conventional asset classes.
  • There is a risk of many scammers and hackers attacking investors and exchanges.
  • Gains from Bitcoins are liable to be taxed.

There is a school of investors who believe that Bitcoin is the next big trigger in the market.

But there are others who are convinced that it is perhaps the biggest bubble.

1. The Goldman Sachs View on Bitcoin Price Prediction

The Goldman Sachs View on Bitcoin Price Prediction

In this context, let us analyze the prediction of some of the top brokerages and experts.

How is Goldman Sachs reading the Bitcoin price trend?

Despite the Bitcoin prices recovering after sliding to $6000, they sounded alarmed bells.

According to the expert here, most cryptocurrencies are likely to fall to zero.

Their contention is that the current iterations cannot be viable over long-term.

They consider these to be rather primitive.

Moreover, according to them, the transaction model is also flawed.

It is both expensive and time-consuming at the same instance.

But most importantly, cybersecurity issue is the biggest concern.

There are innumerable cases of hackers attacking a user account.

So the long-term viability is one of the most important worries at this juncture.

However, they have also highlighted a possibility of these evolving and surviving.

But the lack of appropriate intrinsic value is one of the major problem points.

Experts often use the dotcom bubble example from the late 1990s.

Many of early entrants like Pets.com and toys have vanished today.

But at the same time, you have the likes of Amazon taking giant leaps forward.

They feel something like this can be expected in the cryptocurrency space too.

If you take a look, there are very few companies that exist the way they began.

When we mention success stories like Amazon, this too saw significant evolution.

So, you can say that may be the biggest cryptocurrency winner is yet to be created.

But at the same time, the Bitcoin has every chance of slipping further.

It is all a matter of time and essentially a wait and watch game.

– The Need for Evolution

Therefore, Goldman clearly sees the need for urgent and meaningful evolution.

They feel the lack of a convincing player in the current scenario is a key factor to consider.

This also makes it quite risky to predict who the ultimate winner will be.

However that said, this is not a prediction on sharp price rise.

Even if this is a bubble, there is hundred percent chance of a price rise.

Experts feel that even a bubble expands, select players can see a distinct price rise.

It goes on to highlight the complex composition of the Bitcoin dynamics.

On the one hand, you have wild price swings.

On the other hand, there is every possibility that this product develops further.

As a result, a price prediction is a tricky business.

There is every chance that there is a huge escalation in prices.

But the road ahead for Bitcoin is difficult to predict.

However, in the current scenario, the risk proposition is very high.

Any prediction will be based on uncertain price moves.

It goes without saying that the Bitcoin market is very dynamic.

That means that you cannot completely rule away constructive changes.

In fact, it calls for a serious relook into future price prediction.

– The Key Metric Is Crucial

However, not everyone is that pessimistic.

Independent Bitcoin analysts like Ronnie Moas see some glimmer of hope.

They expect Bitcoin to reach $100,000 levels if they can maintain current market share.

This prediction is primarily based on the crucial Key Metric.

He goes on to point out that the sharp correction in Bitcoin prices was due to China.

There was the news that Chinese Government and Lloyd Bank may ban buying with credit cards.

But he feels that the current market share is the most important element.

He feels investors may use this current downtrend to increase market share.

He feels this can turn out to be an extremely profitable investment.

Large sums of gold, stocks and other investment resources may be redirected.

Just imagine close to $230 trillion is accumulated in stocks, bonds, gold, and cash.

What if this amount eventually found its way to Bitcoin?

I am sure you agree that the price is deeply dependent on the supply-demand ratio.

So, if you channelize even 2% of $230 trillion, you will be staring at a $4 trillion market.

This is the most important aspect of this price prediction.

So Moas insists that the pricing will be a function of the overall market share.

So at the current 36% market share, it can easily reach $100,000 price level.

Even if you see the recent high, it will provide you with some direction.

With just 36% market share in December, Bitcoin hit an all-time high of $19,535.70.

The math is out there for you to calculate if there is a greater market share.

At this rate, it is not difficult to fathom the $100,000 estimate.

– Diversify Your Portfolio

2018 is all about regulatory threats to the Bitcoin.

There have been threats from South Korea, China and a complete ban on Facebook.

Sentiment has taken a further beating with $500 m hack in Japan and the AriseBank scam.

All of these no doubt impacted sentiment a lot.

As Moas mentions, it is always a good idea to diversify the cryptocurrency.

In this way, you can preserve capital and limit losses as much as possible.

This is a fundamental requirement in any type of investment.

Be it gold, stocks, bonds or any other asset.

The principles of investment remain the same.

If you want to maximize your gains, you have to diversify your gains.

Imagine, will you make money if you only invested in small caps.

Aren’t there enough examples of small caps that go bust as well?

You also have a number of IPO scams.

But all of these never force you to stop investing in the stock market.

In many ways, the Bitcoin also reflects the similar sentiment.

So when you are predicting the price of Bitcoin, you have to consider all of these elements.

It is important to mobilize your Bitcoin investment in an appropriate way.

This is how you can make sure that this does not go hit zero.

Upswings and downturns are part of any investment cycle.

But if you want to come out of it unscathed, you have to undertake serious diversification.

Moreover, cryptocurrency as an asset class has to be seen in totality.

You cannot take a position on just Bitcoins in isolation.

It goes without saying that Bitcoins are the most popular of this tribe.

But any prediction about the prices will have to include the entire space.

2. Nouriel Roubini’s Bitcoin Price Prediction

Nouriel Roubini’s Bitcoin Price PredictionNow let us consider what Dr. Doom has to say about the future of Bitcoin.

It is important to take into consideration his views on this investment avenue.

Well, he predicts a crash in Bitcoin prices in future.

Roubini expects bitcoin prices to hit zero going forward.

With the US Congress addressing a hearing on this issue, this point of view is rather important.

Roubini has even warned investors to hold on for their dear life.

He expects severe selling in Bitcoin on the back of price volatility.

This is expected to lead to significant correction below the $6000 levels.

Bitcoins currently are close to the $5000 levels.

There is expectation of an even more serious correction going forward.

That is primarily the biggest concern as per Roubini.

He feels while scammers may sell out positions and book profit, genuine investors may get stuck.

According to Roubini, several techniques in Bitcoin trade are to be blamed as well.

Some traders use the ‘wash’ technique to push up prices.

This means that traders are buying and selling their own orders.

This is primarily done to push up prices.

As the price dips further, the fear is wash traders become more active.

For example, now that the prices are below the $5K mark, wash traders may try to push up rates.

The lack of regulatory move on this regard is a concern.

But if you pay heed to Roubini’s view, his call is a SELL on Bitcoin.

3. Coindesk Chief Silbert Predicts Crash in Bitcoin

Coindesk Chief Silbert Predicts Crash in Bitcoin

Here is another influential view on the Bitcoin Prediction.

Often we believe that industry veterans have the best view.

This is because they are constantly going through the various ups and downs in the market.

That means they have the exact pulse of the industry dynamics.

So who better in this case than the Coindesk chief?

So what does the CEO of cryptocurrency holding company Digital Currency Group says?

Well, the bad news is he too warns investors about a potential crash.

Not just Bitcoin but also Ethereum and Zcrash are likely to crash as per Silbert.

His prognosis is based on the fact that most of these tokens don’t have actual utility.

Most of these are not very different from each other.

What may stand the test of time is perhaps digital gold.

He feels that this is perhaps the only counter that can see considerable appreciation.

He feels this is the only privacy-focused token.

However, he claims all this is simply a prediction about the long-term trend.

Nothing is going to happen overnight on this count.

Perhaps, in this case, he is looking at a 20-30 year timeline.

But you can also gauge the sentiment with the latest offerings from Coindesk.

Despite this long-term warning, they are investing in new tokens.

They are looking at new tokens like Civic, Blockstack, Colu, Unikoin Gold and many others.

This proves that despite the notes of caution, the immediate future looks promising.

Otherwise one of the best known Bitcoin Exchanges will not deploy resources for newer tokens.

Another interesting fact is that they also anticipate user demand.

Otherwise what will be the point in developing new currency?

As of now, Bitcoin on CoinMarketCap around $8300 is one of the most valuable cryptocurrency.

4. Bitcoin Price Prediction: The ECB View

Bitcoin Price Prediction: The ECB View

Now let us train our guns on the Bitcoin prediction by the ECB.

According to the European Central Bank, all cryptocurrencies are volatile.

Their prices are cardinally speculative in nature.

The question then is what kind of value you can ascribe to these AltCoins.

Well as the concerns about Bitcoin grow, the ECB is planning more regulation.

The ECB says that it is not advisable to ignore the threats posed by cryptocurrencies.

They feel if the bridge between virtual and real collapse, there will be a huge liquidity drain.

That can never be good news for global currencies.

While there is no clear prediction on price movement, there is an emphasis on information.

That alone is expected to safeguard real currency value for people.

They are worries that these virtual currencies can cause huge disruption.

The question now is how much will be the extent of this.

Moreover, the psychological and the social impact of this is important.

The timeline for this is also extremely crucial.

Often the timing of the crash more than the actual extent of it causes the damage.

Moreover, it is extremely important to assess the damage on liquidity situation.

This is perhaps why the ECB viewpoint is so important at this juncture.

It highlights the complex nature of the overall dynamics.

In fact the ECB chief, Draghi has called Bitcoins as high-risk investment.

He also emphasized that the European Central Body is working to assess the overall risk.

Given the challenges revolving around virtual currency, this is particularly worrying.

This clearly highlights the associated risk in the entire dealing of the currency.

In many ways, it is also an indication of the global uncertainty about Bitcoin.

This particularly makes it important to have a clear handle on the price outlook.

5. Bitcoin: Prediction of Overall Prices

If you compile the views of a range of analysts, Bitcoin price prediction is really interesting.

By 2022, this cryptocurrency may actually be nearing the $100,000 mark.

While leading experts have raised concerns, the average sentiment on street is buoyant.

Regular investors are working with $76,000 target by 2022.

That means it will be wrong to prepare for a crash anytime soon.

Moreover, the street expects Bitcoin prices to treble in one year.

They expect the prices to rise to $24,000 from $8000.

Now this will be interesting after prices already doubled in 2017.

These prices can work to douse the flames of uncertainty around Bitcoin.

Most analysts feel that a Bitcoin crash is unlikely in the near future.

But yes, like Silbert mentioned value erosion could happen.

But none of it will be an overnight development.

These are gradual, tried and tested routes to mobilize resources.

In fact, a group of experts sees Bitcoin prices scaling $50,000 is little over a year.

This goes on to highlight the relative market excitement about this currency.

Perhaps it also explains the higher highs it hits after every crash in prices.

Overall the Bitcoin Is Not Expected to Hit Zero

The question then is why is there so much of negative sentiment about Bitcoin?

If the street does not predict prices hitting a zero, why is the investor community so worried?

I feel the relative lack of awareness about Bitcoin is a key catalyst for it.

People are primarily unaware of the dynamics of Bitcoin trade.

Additionally Bitcoin prices are very volatile, and they have wild swings.

This also makes it easy for speculators to take positions and route illegal money.

However, with better regulation, this problem can be weeded out.

Overall the Bitcoin is not expected to hit zero.

A fresh high and trebling of current value is the most common Bitcoin price prediction.

The market also predicts Bitcoin hitting north of $76,000 by 2022.

How to Buy Bitcoin Instantly, Secure and Risk Free

Bitcoin is one of the biggest investment crazes at the moment.

It is one of the most popular destinations to put your money in.

Given the recent rally in Bitcoin prices, almost everyone wants to buy Bitcoin instantly, securely and safely.

But the problem is where to buy Bitcoin?

This is because the moment you decide to buy Bitcoin, there are many concerns.

You inadvertently come across a series of negative publicity.

There are several concerns about how secure the transaction is.

This is because Bitcoin is a largely decentralized and unregulated market.

There is also a certain degree of insecurity that goes with these transactions.

This is because the Bitcoin market lends relative anonymity to the trader.

As a result, many times you see many illegal trades also happening this way.

Buy Bitcoin InstantlySo people are often risk-averse.

The relatively scarce information about Bitcoin often leads to these concerns.

Many beginners just jump into this bandwagon on hearsay.

As a result, they do not have any clear idea about what they are getting into.

Not every Exchange or software can be trusted.

But at the same time, you can experience relative gain if you make a wise choice.

Often if you want to look for a secure way to buy Bitcoin instantly, you have to make an informed choice.

Well, that’s similar to most other investment alternatives.

Think of the safety advice that goes with most Mutual Fund investments.

It says Mutual funds are subject to market risk; please read the offer document carefully.

Most investment opportunities are fraught with risk.

This is completely up to you about how you manage the overall risk.

A lot of it depends on your individual risk appetite.

Moreover, your investment target is crucial at all cost.

How to Buy Bitcoins Instantly

Now when you take into consideration all these points, they are multiple avenues.

You can buy it like stocks from an exchange or mine it on your own.

Broadly there are four alternatives that you can choose between

These include:

  • Mining for bitcoin
  • Buying directly from exchanges
  • Buying from traders directly
  • Selling products and getting paid in Bitcoin

So, you have to take a call on the kind of Bitcoin savings that you will like.

You can even look at getting your own PC for mining it.

But you need to make sure you create proper contracts before you commit any cash.

Even when you buy them using hard cash, be careful about the various methodologies.

This is because it is not just a virtual concept.

It is hard cash that you are committing.

You need to store it appropriately in digital avenues.

You can create these digital wallets the same way as a bank account.

Most times you are using an easy to operate interface.

It can be something as simple as an app on your smartphone or even on your computer.

These online digital wallets are cheap and easy to operate.

But at the same time, they can have many security concerns.

There are many instances of theft.

Overall, close to 4 million Bitcoins are lost globally.

A lot of it is as a result of a variety of safety issues.

This is due to the privacy policies of these bitcoin sellers.

As a result of this, you have to be very careful about the way you buy the cryptocurrency.

Different options can be suitable for different individuals.

A lot of it is also an outcome of your understanding.

For example, if you have detailed knowledge, you can even go for mining bitcoin.

1. How to Get Bitcoin by Mining

Creating bitcoin or mining for it is one of the most basic ways.

For this, you have to invest in a reasonable amount of hardware.

You need to have the right type of hardware as well as mining sources.

You have to understand the market well and also the technologies.

You can look at exploring various blockchains and ways to attract funds.

You can get Bitcoins or also get bitcoin as transaction fees.

Once you have got the required amount in your account, you can transfer in wallets.

But mining bitcoins also entails relatively detailed know-how.

You have to undertake studies about the market dynamics.

Let’s say that you want to buy a TV from me but want to pay in bitcoins.

But let’s assume I want to make sure that this is genuine bitcoin.

So. I start verifying the overall transaction.

Now there is not just this transaction.

There are many such transactions happening at the same time.

They get collected in a box that can often be likened to a conventional padlock.

This essentially is the Bitcoin blockchain.

A resourceful miner will look for keys that can open this blockchain.

Once you are able to get a handle of these keys, you enter the blockchain.

It is literally like looking for a needle in a big pile of hay.

This is exactly why the blockchain network rewards anyone who manages.

Every new miner gets a reward of 25 bitcoins for achieving this feat.

If you are wondering why a reward, some numbers should clarify this figure

You can take close to 1,789,546,951.05 attempts to actually get the desired result.

But that is not a deterrent.

Every 10 minutes someone somewhere gets this 25 bitcoin reward.

2. How to Buy Bitcoin from Exchanges

Buying Bitcoin from exchanges is similar to how you buy stocks.

First of all, you have to look for an exchange that accepts fiat currency.

This is important because otherwise, you will not be able to buy Bitcoin instantly.

Coinbase in that context is a reliable option.

Especially if you are a newcomer in the world of Bitcoin, this is a great option.

The exchange is user-friendly, provides reasonable security and has a proven track record.

So this is your fundamental criterion for deciding where to buy Bitcoin instantly.

The reliability and the track record of the exchange are most important.

It will make sure that your money is in safe hands and you get the right investment value.

Let’s assume if I zero-in on Coinbase, the reason I will go for it is it has support in 32 nations.

Moreover, the overall traded volume is close to $20 billion worth in Bitcoins.

So once you fix the exchange, the next step is about buying it physically.

For this, you have to create an account and then go ahead and get it verified.

You can start transaction once this verification is done.

You can link either a bank account or a PayPal account to the exchange.

So this, no doubt, gives you relative flexibility in taking positions in the market.

Also, look out for the mode of payment available.

If you ask me, I will go for options where I can make payment via credit as well as debit cards.

This is always an added advantage.

In this way, your savings are never dependent on available funds.

You can even pay through your credit card and look at generating more money.

3. Buy Bitcoin Via ATM

Buying bitcoin from an exchange is one of the most common ways.

But there are many other ways of buying it too.

One option for you is approaching a Bitcoin Depot.

Essentially this comprises of a large number of ATMs that facilitate Bitcoin transaction.

But this facility is mostly available across the United States.

In terms of convenience, this is one of the best ways to buy bitcoin instantly.

But this also means that you need to stay in some place close to the Bitcoin ATM.

Additionally, you need to stay in a country where it is allowed.

The process is rather simple in this case.

All you need to do is deposit cash, and you get the Bitcoins deposited in your account.

This transaction happens in a matter of hours.

But the problem, in this case, is the high transaction fees.

This entire transaction costs close to 9% every transaction.

As a result of it, people are not too keen about using this mode.

Moreover, there is absolutely no customer support in case of any dispute.

Another major concern is the sub-par dollar-bitcoin rate.

This can significantly compromise your investment.

Moreover, these details are never discussed upfront.

So there is a huge amount of uncertainty in the complete transaction.

But at the same time, users are quite excited about its potential.

As a result, you have more than 1600 Bitcoin ATM now globally.

Of these, over 900 of them are in the United States.

You will be surprised to know on a daily basis there are more than 2 ATMs being added.

When you consider this ATM addition on a global scale, you can work out mathematics.

So in the not so distant future, you may well have one near you.

4. How to Buy Bitcoin via Investment Fund

But if you are looking for options to buy Bitcoin instantly, there are many still.

If you think buying these from ATM or an exchange is not personal enough, try LibertyX.

This helps you buy bitcoin in retail stores.

Have you ever made any transaction via Western Union money transfer?

Well in many ways, this is similar to that type of transaction.

Needless to mention this is significantly up close.

But as of now, this service is limited only to the United States.

Users can access this by entering their zip code and looking for a reliable retailer.

The zip code enables you to easily look for someone closer to home.

There are a few more variants in this category.

Have you noticed how a Mutual Fund works?

Investors derive value from the value of the underlying stock.

They do not have any direct exposure.

This is no doubt one of the most attractive forms of owning bitcoin.

It facilitates adequate exposure but at the same time limits risk.

This particular Bitcoin Investment Fund is traded on OTCQX exchange.

This particular fund started in 2013 September.

Since then, it has managed to muster popularity in a slow and gradual manner.

Its current valuation is north of $800 million.

The YTD returns, in this case, is almost as much as 300%.

However, some have however raised a word of caution against it.

Many have even termed the fund speculative in nature

However, the robust returns work in its favor.

This often convinces many seasoned investors to bet on this.

Moreover, it is an indirect exposure in Bitcoin.

So, the relative amount of safety is much pronounced in this case.

Is Buying Bitcoin Safe?

But even when you are faced with these many options to buy, concerns remain.

The question is, should you buy Bitcoin at all?

Is it safe to buy this cryptocurrency?

Though you have options, will it be reliable to commit your cash?

The primary point, in this case, is utmost care.

Indeed care is the most repeated buzzword when you are dealing with Bitcoin.

It is a wide and hugely unregulated market.

The value of the Bitcoin is never extremely stable.

Volatility is the name of the game in most cases.

They are like the whimsical small caps.

Price can go up really sharply, but at the same time, they can nosedive as well.

For example, the entire investment community saw the price volatility in early 2018.

The markets turned jittery when Coinmarketcap decided to exclude South Korea.

Global process fell over 20% the world over.

The risk of hackers and theft is quite real.

If you make a simple back of the hand calculation, theft leads to huge losses.

Over $4 million worth of Bitcoins is lost today globally.

No one really knows how or why.

But the fact is that much of bitcoin is unaccounted for today.

Another risk factor is in the peer to peer transfer.

You have to be very careful about who or what you are transacting with.

This is exactly where the Bitcoin verification plays a crucial role.

It makes sure that you are very clear about the whereabouts of your partners.

Unpredictability When You Buy Bitcoin

This is another primary risk irrespective of where you buy Bitcoin instantly.

The huge price volatility is primarily on account of uncertainty.

The lack of accountability plays a very important part in it.

As a result, the swing in prices can be huge in a matter of days.

So if you are planning to buy Bitcoin instantly, you also have to assess this.

This is also a kind of security breach.

If you cannot follow a clear direction, how will you take a call on next Bitcoin movement?

In the most recent bout, we saw a swing comprising of $9000 in a matter of days.

This means it is a pronounced risk when you are dealing with Bitcoin.

As a result, a lot of people are asking investors not to get involved.

Now as a result of this, no one knows how it can affect the future.

Will the market turn jittery and collapse eventually?

Well, it is this kind of unpredictability that makes this cryptocurrency very unstable too.

This is the key reason why there are many naysayers dissuading people from buying it.

It is surely an extremely time consuming and tedious exercise.

The risk is the reward potential despite all of it is very bleak.

Role of Technology

Another important factor in assigning the safety of Bitcoin is the role of technology.

Technology empowers investors.

But at the same time, it can be an immense risk too.

The anonymity of Bitcoin trade often encourages many illegal traders to use this route.

This means that you have a host of illicit trades being planned and manipulated.

Therefore when you consider the relative safety of Bitcoins, you have to factor in these elements.

Additionally, the ownership of the private keys and the public keys also make a difference.

For example, if an exchange has the right to private keys, are your investment safe?

Theoretically speaking the Bitcoin exchange can simply walk away with your money.

Perhaps this is why it is extremely important to consider precautions.

Take a Comprehensive View If You Want to Buy Bitcoin Instantly

Therefore, if you want to buy Bitcoin instantly, you have to take a comprehensive view.

It is not just important to determine where to buy and how much to buy.

The most important factor is the security of the vendor you are buying from.

Think about the amount of risk that you are exposing yourself to.

It is essential that you consider the pros and cons of this investment carefully.

This will make the foundation of your investment in Bitcoin strong.

It will also be an impetus to help you buy bitcoin instantly.

How Many Bitcoins Are There and What Happens When All Are Mined?

There are many Bitcoins in circulation right now.

Given their huge popularity and investment potential, there is a growing demand for it.

They have yielded 1600+ annual returns in 2017.

The valuation doubled in a matter of one month in December, 2017.

It is now seen as a convenient alternative to fiat currency.

If you see the December data, the cryptocurrency market saw a huge surge.

The total market capitalization surpassed $600 billion in December 2017.

This alone goes on to highlight the latent demand for this currency.

In fact, in many ways, Bitcoin is quite similar to gold.

You cannot create gold in a factory.

You have to dig deep and mine gold out.

Bitcoin too has to be mined, albeit digitally.

So just like in case of gold, there is only a finite supply of gold.

So if you are wondering how many Bitcoins are there?

There are 21 million Bitcoins that can be mined in all.

According to the situation now, that is the extent of Bitcoin supply.

Once miners have exhausted this supply, the planet’s supply will be totally sapped out.

Basically the Bitcoin creators again followed the gold example.

They believe a fixed supply of this cryptocurrency will keep world markets in control.

This is exactly why there is a ban on arbitrary creation of Bitcoin.

It helps maintain a specific level of sanity in the market.

There is no mindless rush for creating more of it.

Moreover, this is an extremely expensive business.

Bitcoins- The Mining Dynamics

But as the popularity of Bitcoin rises, it is important to take stock of the current state.

Many companies and products are adopting Bitcoin as a form of payment.

So you can easily understand that the Bitcoin is spreading its wings pretty fast.

The most important fact is there is no Central Bank monitoring this currency.

In case of Fiat currency, there is a centralized control.

However, there is no such regulation for Bitcoins.

As a result, the Bitcoin operation is completely decentralized.

The creation of Bitcoin is based entirely on mathematical calculations.

So again, the similarity with gold comes in play when you assess how many Bitcoins are there.

You can only mine Bitcoin; you cannot print it like currency notes.

All the new Bitcoin that is in operation is based on the core mathematical formula.

By this, I am referring to the formula that Satoshi Nakamoto devised.

All the new software that is created is a derivation of this core formula.

These are recorded and verified at every single step on the Blockchain.

But the blockchain is just a record keeper.

It does not have the capability to create fresh Bitcoin.

But mining Bitcoin is far easier than mining gold.

The question then is how you can bring in a semblance of regulation here?

Well, this is where the Bitcoin protocol kicks in.

According to the Bitcoin protocol, only 21 million bitcoins can be created by a miner.

So there is a cap on the total number of bitcoins that can be created.

But this was not such a huge problem till 2011.

Till that time, Bitcoin was just another uncharted territories.

But as the popularity increased, cryptocurrency variants also kept getting added.

As a result, over 1000 cryptocurrencies were created and started circulation.

The Current Bitcoin Supply

As of October 2017, there are 16,654,762 bitcoins.

Now I am sure that you remember the bitcoin supply is capped at 21 million.

But that does not mean that the Bitcoin chain will remain static.

This is an extremely dynamic space.

There is some change that takes place every passing moment.

Supposing a really hard bitcoin fork takes place, the number can vary to a large extent.

The first outcome will be it will create a brand new set of dynamics.

It can even result in a completely new cryptocurrency.

Moreover, the bitcoin market is extremely volatile.

So if you are asked, how many bitcoins are there, it can be a difficult situation?

This is primarily because when you mention ‘how many’, you also need to specify when.

Some new development is practically taking place at every juncture.

This makes a realistic assessment rather complicated.

Supposing Exchange A says that x number of Bitcoin is traded, it provides a fragmented picture.

Whenever there is any mention of current figure, it barely refers to 24 hours.

Also, there is a huge difference between what is in circulation and how much is mined.

The number of bitcoin in circulation is normally the number available.

But whenever you consider bitcoin mining, it refers to how much is mined till date.

In this context, you also have to take into consideration individual behavior.

There are many users who can accumulate a huge number of Bitcoins but keep it static.

So the difference between these actively traded and static ones also have to be considered.

There are many bitcoin users who have static volume.

If too many users have the same policy, it can even create scarcity in the market.

Demand-Supply Dynamics

Now that brings us to another unique phenomenon in the Bitcoin space.

There are many different aspects of Bitcoin trade.

Perhaps this is why there cannot be a direct response to the total number of Bitcoins.

You have to consider several elements in this context.

A scarcity phenomenon is one of the biggest realities of the Bitcoin trade.

If there is even notional scarcity in the overall Bitcoin eco-system, prices can go up.

This is exactly why Bitcoin owners technically have to trade their coins as often as possible.

This regular trading helps in creating a reasonable Bitcoin momentum.

Often this momentum has a direct bearing on how many Bitcoins are there.

In this context, you also have to consider the number of lost bitcoins.

Let me illustrate this point with a small example.

Consider the case of Bitcoin exchange, Mt Gox in 2014.

The world’s largest Bitcoin exchange becomes offline in one masterstroke.

Along with that, 850,000 Bitcoins also get lost.

So when you are trying to assess how many are there, do you consider these?

Till date, at least 4 million Bitcoins are lost.

So when you are mining fresh ones, do these lost counters matter?

Another interesting aspect of this supply-demand matrix is the anonymous trade.

In fact, this is one reason that Bitcoin trade is often looked down upon

But at the same time, you cannot deny its existence.

The question is how you can consider this transaction in your total count?

Black marketers and drug sellers are often seen as misusing this route.

The anonymity and lack of control both act in favor of the eco-system.

But the question is how can you include this key factor in your calculation?

When you are calculating how many, this also matters.

Bitcoin Market Realities

Perhaps this is the reason that these questions are so pertinent.

The future is an extremely important consideration.

When you think about the future, there are some very pertinent issues.

The current market capitalization of Bitcoin market is over $300 billion.

But 40% of this trade belongs to the opaque segments of the economy.

So the dark unaccounted segments trade here actively.

The question is roughly 1000 users primarily control this unregulated market.

These people can coordinate their actions.

They can even preview this activity to a select list.

The question is how they can impact the overall trade if the mining limit is hit?

They have the capacity to make or break the market.

This is why the regulator’s role is extremely crucial.

But the reason why it is an area of concern is that of the tie lag.

Typically you will see regulations lagging behind technology.

Perhaps in this context, this is a very important factor.

How are we prepared to tackle the Bitcoin challenge in future?

The protocol caps Bitcoin creation at 21 million.

But is that the only way to mine for new Bitcoins?

The threat of a heightened price escalation and demand scarcity has to be weighed.

Volatility & Bitcoin Mining

The number of Bitcoins that are there is a very important consideration at the moment.

Almost every second person on the street considers buying Bitcoin is the best way to be rich.

But it is a very unstable asset class.

There are no clear rules or limits in place.

It is also extremely susceptible to the boom and the bust cycle.

In this situation, I am sure that traders are already factoring in extreme situations.

How will they take trade forward when suddenly the 21 million mark is reached?

The Bitcoin prices shot up to $1000 levels, and then the 2013 crash happened.

Prices at that juncture fell as low as $300.

Again the prices rallied back to $1000 level.

But that said there are any fence sitters at the moment.

They are waiting for the most appropriate moment.

At the same time, it is almost as important to know how many bitcoins are there.

The Current State of Affairs

Bitcoins are typically deflationary in nature.

The 21 million mark is not unattainable by Bitcoin miners.

But there is no way to calculate the exact amount that is there.

In fact, even at the current stage, the active Bitcoins are a lot less than mined limits.

This is primarily because of the lost and any forgotten wallets.

Some recent studies say as much as 25% of the bitcoins in circulation are lost.

That is a scary condition.

It means that the 21 million mined bitcoin limit is that easily achieved.

So the question that comes to play what exactly the timeline is?

When will that last Bitcoin be mined?

In this context, you will have to consider the ‘Bitcoin halving’ concept.

Almost every 4 years, the number of new bitcoins created and mined is cut to half.

This is primarily because of the new transaction blocks created.

Well, this is also an extension of the Bitcoin policy.

It is predictable and transparent and easily verifiable.

Currently, the Bitcoin market is about 3 years away from another cut.

The mining reward is likely to be reduced further in about 3 years.

Till date, you have over 33 reward eras.

In each of these, you have seen significant value depreciation.

Initially, the reward was close to 50 bitcoins.

This number has been reducing significantly to 25 and then 12.5.

The assumption is by 2020, it can be as low as 6.25 bitcoins.

So if we continue with that maths 2140 may be the last year for Bitcoin mining.

If the current trend of rewards continues at that juncture, you will not have any fresh offering.

The overall depreciation impact will also kick in.

This can then have a domino impact.

Effects on Bitcoin Miners

The biggest impact will be seen on Bitcoin miners.

These people are directly affected by the limit or the scarcity in Bitcoin supply.

So will these miners be forced to move away from their block rewards?

How will they sustain the overall chain when they hit the 21 million mark?

There are some who maintain that the miners may still remain afloat.

This is primarily on the basis of the transaction fees.

They will have to rely on that to keep their operation afloat.

But that is only one unique school of thought.

There are others who argue that miners may find the cost of maintaining operations too much.

One direct impact is possibly a drastic cut in a number of miners.

There are many miners who may find the entire operation unaffordable.

The worry is that this type of experience can spike up the negativity in the entire system.

This can result in the severe shortage of responsible and resourceful miners.

The argument for this contends on two basic factor.

The transaction fee amount and the future chances of Bitcoin forks.

Most importantly ways to be financially solvent is primary in this case.

Or is there a possibility that mining costs may offset transaction fees?

Well, all that is in the realms of possibilities with no clear outlook on the future.

It is also possible that mining chips become less expensive and more efficient.

This can be a very important piece of development.

It will reduce the monetary burden on miners to a large extent.

They may even adjust to a new eco-system lower threshold limits.

The lower initial cost may go a long extent in keeping miners afloat.

It will provide them with an impetus even when there is nothing new to be mined.

Bitcoin Pricing

If you are wondering how many Bitcoins are there?

Or if you are trying to peep into the future when every iota of Bitcoin is mined?

You cannot ignore one key element.

This is primarily the price of the Bitcoin.

You have to remember that this market is also driven by demand-supply dynamics.

The huge price swings in recent times have made you aware of the extent of the impact.

No one can really tell with precision about the future course of action.

Will Bitcoin prices continue to rise?

Well, your guess is good.

But at the same time, there is vault after vault of inactive bitcoin.

When there is no new Bitcoin to mine, will these become active?

Will users introduce it in circulation to tide over the mining stagnation?

Well, the largest supply of inactive Bitcoin is with the creator himself.

Satoshi Nakamoto has close to 1 million inactive bitcoin.

Till date, this is more as insurance to deal with demand spike.

The aim is to address global supply issues in future whenever it happens.

This is simply an example of how many million bitcoins are not accounted.

They are floating somewhere in the Cloud.

Conclusion

Therefore, the question remains what will happen when all bitcoins are mined.

If you calculate how many bitcoins are there, roughly 2140 is when you will reach that limit.

Ideally, transaction fees are likely to keep the bitcoin momentum intact.

Though there is no more creation of new Bitcoins, prices will not come crashing down.

There are many stabilizing factors.

The million coins stashed away by Nakamoto is another example of this key fact.

In fact, Bitcoin value may continue to remain high.

Trade and online transactions are based on actual supply.

They have very little correlation with the future amount.

The idea is Bitcoin fees may become the most lucrative bet.

Higher money supply may also keep the bitcoin boat afloat.

The Best Bitcoin Wallet to Store Your Bitcoins

If you are dealing with cryptocurrency, it is necessity to choose the best bitcoin wallet.

You have to store your bitcoins in bitcoin wallets.

So, you secure the wallet using a private key and can access it through this key.

You can have many bitcoin wallets, and every wallet has many private keys.

Best Bitcoin WalletsMost well-designed wallets make bitcoins very intuitive and convenient to use.

There are many types of Bitcoin wallets.

Types of Bitcoin Wallets:

There are several types of bitcoin wallets.

First, let’s learn what they are.

Then we will help you choose the best one:

  1. Electronic Wallet
  2. Software Wallet
  3. Hardware Wallet
  4. Online Wallet
  5. Mobile Wallet
  6. Paper Wallet

1. Electronic Wallet

You can download this software or host it on cloud.

This can be formatted and stored on your computer and device.

These wallets are normally very user-friendly.

You become a third party holder of the wallet.

2. Software Wallet

You control the keys directly by installing a wallet.

Most of these wallets have a relatively simple configuration.

However, the problem is they need regular maintenance, and you need backup.

The problem is if your computer is lost or stolen, you may lose your bitcoin.

3. Hardware Wallet

These are very small devices.

They are very secure and can’t be hacked easily.

They are offline, but the only threat is these can get lost.

You can, of course, choose to keep these wallets in secure places like the bank vault.

4. Online Wallet

As the name indicates, this bitcoin wallet is stored in cloud.

With the proper password combination, you can access it from anywhere world over.

This is designed to enhance user convenience.

5. Mobile Wallet

These are like simple apps on your mobile phone.

They work the same way like other mobile wallets

You can use these for making an online payment via bitcoin.

6. Paper Wallet

In very simple terms, it is a piece of paper.

The private and public keys of a bitcoin address are printed on this.

They are ideal for long-term storage.

What Are the Best Bitcoin Wallets and How Safe They Are?

Here is the list of the best Bitcoin wallets that we chose to analyze:

  1. Hardware Wallets- Ledger Nano S
  2. Hardware Wallets- Trezor
  3. Hardware Wallets- Opendime
  4. Online Wallet- Coinbase
  5. Online Wallet- GreenAddress
  6. Software Wallet- Electrum
  7. Mobile Wallet- Jaxx
  8. Blockchain Wallet
  9. Paper Wallet- MyEtherWallet

Given the huge demand for Bitcoin Wallets, there are many of these variants.

Rankly, there is no way to identify which is the best one?

This is because every type of Bitcoin wallet has its own set of advantages.

However, safety is one cardinal issue that you must keep in mind.

You have to ensure that you choose a secure wallet.

The security of these wallets is most important.

Especially if they are not insured, you can lose your entire savings.

As a result, you need to look out for options that promise maximum security.

In that context, the safest one is hardware bitcoin wallets.

You don’t have the risk of hacking in these.

Neither is there any risk of the key being stolen or you losing the entire money.

But if you lose the key or lose the wallet, all your money is gone.

This is, of course, if you do not have the required backup in place.

In this context, the online wallet is the riskiest of the lot.

The keys are held by a third party, and you practically have zero control on your wallet.

However, if you see, most seasoned Bitcoin traders use a mix of these.

They have an offline and another online account.

The idea is they store the bulk of money offline.

Only a limited amount of spending is put in these online accounts.

Of course, your technical understanding plays a crucial role in this too.

Needless to mention, the online ones are definitely for people with better technical skills.

But, care is necessary at all times.

Whatever bitcoin wallet you might choose, you have to be careful.

Maintain proper backups and be cautious at all times.

This will help you maintain better track of your bitcoin wallet.

1. Hardware Wallets- Ledger Nano S

Ledger Nano S

This is perhaps one of the most popular Bitcoin wallets.

Almost anyone who is dealing with Bitcoins knows about it.

This is also because this wallet has a unique feature.

It provides you a strong amalgam of some of the best features of various types of wallets.

It is essentially a smartcard based hardware wallet.

The private keys, in this case, are generated and signed offline.

This smartcard takes backup offline.

This enables a more secure operational benefit in this system.

You can also assign a PIN code to the smart card.

This provides a second layer of security to the whole set-up.

It also avoids the risk of potential physical theft or hacking.

The best part is this bitcoin wallet is compatible with a huge range of device.

Starting from computers to Android phones with Myceium or Green Bits, the range is huge.

As a result, a significantly large number of people can access this wallet.

2. Hardware Wallets- Trezor

Trezor

This particular Bitcoin Wallet resembles a tiny computer.

Unlike Nano, this is not a smart card.

This one operates as a standalone self –sufficient unit.

However, the private keys for these have to be generated offline.

Additionally, a 24-word seed is generated once you set it up.

During back-up, this seed is copied and displayed in the Trezor’s inbuilt screen.

You can also add an additional passphrase if you see the necessity.

As this seed is not displayed directly on online computer, it provides complete security

This also acts as a second layer of security.

This is because anyone can misuse the account once they find the 24-word seed.

However, this additional passphrase will make sure no one else can access the fund.

But you must remember that you need this seed and passphrase always.

You cannot access the funds without this seed and passphrase.

In the absence of these two, your fund is lost forever.

So you have to be careful in terms of creating this passphrase.

Most importantly, you must take care to store these in a safe place.

If someone gets access to your seed and passphrase, then the security can be compromised.

3. Hardware Wallets- Opendime

Opendime

This is a first of its kind, a Bitcoin Stick.

This USB Still enables you to spend the Bitcoin the same way as dollar bills.

You can connect it to any USB port t check the balance.

All you have to do unseal and you it when you need to,

So practically, it is like taking money out of your wallet.

So it can work on your laptop, desktop, phone, practically everywhere.

Normally this USB has a QR Picture or text file inside.

The Bitcoin address and support are stored within this.

The private is self-generated, no one knows including you.

So, no risk of forgetting the private key and passing it onto someone else.

The biggest advantage is this wallet is based on the primary Bitcoin features.

So, it has been able to adjust to the various changes in the Bitcoin world quite easily.

You can physically transfer this Bitcoin from one to another.

So you don’t incur any additional expense in the transfer of these either.

Moreover, there are no confirmation delays as well.

This particular Bitcoin Wallet uses message signing and normal Bitcoin payment address.

This particular wallet simplifies Bitcoin transfer to a large extent.

It actually becomes as simple as handing over a $10 Bill to someone.

There are no additional hassles or charges associated with it.

So even if you are not very technology savvy, you can use this Bitcoin Wallet with ease.

4. Online Wallet- Coinbase

Coinbase

This is a unique wallet provided by the Coinbase exchange.

Just like the exchange, this Bitcoin wallet is specially meant for beginners.

Needless to mention that it is easy to use and extremely convenient operationally.

As a result, accessing this wallet as well as using it is extremely convenient.

As this is an online wallet, you can use it from anywhere across the world.

But the point here is how safe is this online wallet?

Well, for beginners, this could be one of the most user-friendly alternatives.

The icing on the cake is you are not compromising the security of the user either.

There is a two-step verification process that makes it difficult for hackers.

You can also choose to use the convenience offered by Coinbase Vault.

This will add another much-needed layer of security to the users.

They can be relaxed about the way to store their currency as well.

All the Coinbase wallets are insured by the FDIC.

As a result, there is a basic minimum guarantee associated with them.

This means that users can have greater trust in accessing the account.

Moreover, you can transfer funds from these instantly without any associated fees.

You can also use the same wallet to buy fiat currencies.

But the only problem is that the options are limited in this case.

Coinbase allows only Bitcoin or Ethereum wallets.

So if you are invested in any other cryptocurrency, you have to transfer it first.

5. Online Wallet- GreenAddress

GreenAddress

In case you are looking for other convenient online option, you can consider this.

This too is an extremely user-friendly alternative for cryptocurrency users.

This is a multi-signature Bitcoin Wallet.

You can access it through any desktop or other Android devices.

The additional advantage is that this type of wallet is compatible with some hardware wallets.

Several popular hardware wallets like Trezor, Ledger Nano are compatible with it.

So, a seasoned user will mostly access these in tandem.

They mostly store a bulk of the Bitcoin in a hardware wallet.

Only a limited sum is kept aside in the online wallet.

This is one of the best options of hybrid wallet.

In this way, you are not exposing your entire Bitcoin savings to potential theft.

You can maintain a healthy balance between available options.

The multi-signature element improves the security of the wallet as well.

In very simple terms, it means that you need manual confirmation.

So no transaction can happen without your manual intervention.

This is one of the most important aspects of this online wallet.

Most times, security is the biggest threat to any online wallet.

The multi-signature feature addresses just this factor in a concise manner.

It makes sure that your wallet has sufficient protection.

The relative chance of a theft is reduced to a large extent.

But at the same time, it remains a hot wallet.

Therefore, it is always advisable to use it in sync with a hardware wallet.

In that way, you can help protect your relative safety.

6. Software Wallet- Electrum

This is an extremely fast and effective wallet.

It is lightweight so you can easily install it on your desktop and mobiles.

It does not take up too much space, and at the same time, you can easily access it any device.

Needless to mention, this is also a very flexible wallet.

Most importantly, this also provides hybrid opportunities.

This means you can use this wallet in sync with hardware alternatives.

This software wallet is compatible with Nano Ledger, KeepKey, and even Trezor.

This means that it offers users the benefit of a dual wallet.

So you can easily maintain a secure online and offline wallet simultaneously.

This wallet too supports multiple signatures.

This means you can easily create a convenient safety net for your Bitcoin.

Moreover, it is not tied up with any centralized server.

So the potential hacking chances are minimized to a large extent.

This wallet has been operational for a long time.

This makes this online wallet even more credible.

7. Mobile Wallet- Jaxx

Jaxx

Well, carrying your Bitcoin is no longer a complicated process.

It is as far away as your mobile.

Now you can carry your Bitcoins pretty much in your pocket.

In fact, this is one of the world’s first mobile Bitcoin Wallet.

In terms of functionality, it is similar to other mobile wallets.

As a result, you have a variety of versions for different operating software.

So be it iOS or Android, desktop or laptop, there is a Jaxx variant that you can install.

Like many other online wallets, this one also uses a unique mnemonic seed.

You can use this to create a back-up or transfer wallet to another device.

So you can receive funds, transfer them and even make transactions using them.

Just like in case of a conventional wallet, you have a QR code to authenticate transactions.

Using these same QR codes, you can also take stock of your crypto holdings.

Many tech-savvy users prefer this wallet.

It has many interesting features like multiple platforms..

This one also enables shapeshift integration.

But as of now, stability is a major concern for this wallet.

The creators of this wallet need to look at achieving a better fit.

If these concerns are addressed, it can turn out to be an effective and efficient alternative.

8. Blockchain Wallet

Blockchain Wallet

It is one of the most popular Bitcoin wallets.

But at the same time, this is also relatively risky.

In many ways, its popularity can come in the way of its security.

Being very popular, a large number of Bitcoin users prefer it.

As a result, you have an equally large number of hackers targeting this wallet.

But the creators of this wallet addressed this concern using the AES encryption.

This also provides a double encryption initiative.

The biggest benefit of this wallet is it has numerous backup opportunity.

Users of this Bitcoin can create the backup in Google Drive or Dropbox as well.

Now we all understand the relatively better security prospects of these options.

This wallet also has a mobile wallet extension.

As a result of this clients get a more flexible and safe option to store bitcoins.

9. Paper Wallet- MyEtherWallet

MyEtherWallet

If you want a private wallet without investing additional money, this is an option.

This helps you in creating a secure personal option like hardware wallet.

But at the same time, you don’t have to spend additional money for it.

You can just generate a wallet online on the company’s website and then note down your private keys.

Though paper wallets are free, there is a reason why it is not that popular.

The sole reason is you need to undertake detailed studies to master it.

Without the sufficient and requisite know-how, you can compromise your account quite simply.

In short, this is not a wallet for Bitcoin newcomers.

This is ideal for seasoned Bitcoin users who want to save every additional penny and invest it.

So, How to Choose the Best Bitcoin Wallet

So, on an average, you have a wide range of Bitcoin wallets now.

But choosing the right one can be tricky.

You have to look for the best fit in terms of usability as well as security.

These two factors alone can help you make the best choice.

Most importantly, you will have to look at your technological competence.

All of these considerations together can help you choose the best bitcoin wallet.

IOTA Coin: How to Buy IOTA Coin and What Is This Cryptocurrency?

IOTA coin is one of the largest cryptocurrencies by market capitalization.

The term IOTA coin is an abbreviation for Internet of Things Application.

This is also an introduction to a brand new technology in the world of cryptocurrency.

As the name indicates, this facilitates transactions on the Internet of Things.

The transactions take place between machines.

This has been created to specially address the scalability issue.

IOTA CoinThe idea is if you get rid of a block and a chain you can resolve blockchain issues.

You can submit a transaction to the IOTA coin ledger by verifying two other earlier ones.

So neither do you have a central ledger nor the need for miners to the power network.

The technology is created in a manner that devices verify one another randomly.

The IOTA coin creators term this verification method as Tangle.

In the world of cryptocurrency, it is also called Directed Acyclic Graph.

The Tangle’s computing power is directly proportional to network growth.

This will mean customers will have free and relatively fast transactions.

So, it can go on to develop a complete chain of micro-economy.

This micro-economy will be sustained through the machine to machine interaction.

Needless to mention that this is a fairly new technology.

So, the jury you have different opinions whether you need to invest in this.

Buy IOTA Coin: Technical Details

This cryptocurrency was launched in June 11, 2016.

The overall coin supply is nearly 2,779,530,283,277,761.

As we mentioned, there is no specific block in place.

You will have to verify transactions to authenticate this one.

1 IOTA coin equals 1.96 US Dollar, nearly 12.90% higher.

In terms of market cap, it ranks 11th among cryptocurrencies.

Volume wise, it is about $5.44 billion.

This cryptocurrency is powered by CoinMarketCap.

In fact, the Internet of Things is one of the most striking forces in the global economy.

In fact, a Gartner study indicates that the Internet of Things is growing at a fast pace.

It has risen to 8.4 billion devices in 2017, and the outlook for future is extremely bright.

This technology is likely to register phenomenal growth going forward.

IOTA coin aims to cash in on this technology growth and become a top-rated platform.

The fundamental pre-requisite for this technology is all devices have to share resources.

This will also make sure that resources are allocated efficiently as well.

So, this will mean that devices can buy additional resources as per their need.

They can also sell it off when they don’t need it.

As a result, this ensures optimum utilization of resources at all times.

You do not end up either wasting resources or under utilizing it.

So, even you execute this concept on a smaller network, it will generate several transactions.

The result is a significantly higher number of transactions will happen at a much faster pace.

The concern is that a conventional blockchain may not be enough for this.

This is exactly where IOTA coin aims to make a difference.

Blockchain Scalability Issues

Given the rise of cryptocurrencies, the blockchain scalability is a key concern.

As popularity grows and more people access it, the concern is if blockchains support?

You often see even relatively large blockchains suffering as a result.

The result is often there are talks about bitcoin forks.

Many times, miners need to pay additional fees to make space for additional transactions.

This is what IOTA coin intends to address.

It plans to solve both these problems.

The scalability and fees aspects are both addressed in this way.

IOTA coin plans to introduce a wide number of transaction nodes.

This is probable to address this key factor and take forward the trade.

It is so designed that the processing capability will grow with the growth in the network.

So it does not become a limiting factor as the network expands.

This is where the Tangle comes to play.

You can say that the Tangle, in many ways, helps in building consensus.

So when a device is submitting a transaction, it is verifying two earlier ones.

So, at every step, the users are adding to the overall chain.

In a way, every user links the next one and so on and so forth.

So just by a single step, you completely rein in one of the classic cryptocurrency problems.

I mean scalability issues and its many repercussions.

The network, in this case, does not have to rely on a centralized blockchain.

Needless to mention the Tangle then also increases the pace of transactions.

Every new device that participates chips in with its own capacity.

Additionally, every device that participates gets verified also.

The Tangle also completely resolves the block mining issues.

All the coins on the IOTA coin are created right at the genesis of the network.

No Transaction Fees, You Are Free to Use IOTA Coin

Whenever we discuss cryptocurrency, the transaction fees play a crucial role.

Often a particular network scores over another on the basis of this crucial fees.

Users have to pay the cost of using the network.

But the IOTA coin is set to change all of that for good.

The Tangle only needs you to verify two transactions.

Apart from that, all you need to invest is in the electricity or the charges for internet.

This means the IOTA coin operates without a fee.

This means that the distribution will be also at a much higher scale.

Every participating machine gets connected to the main network.

So in many ways, it is much better distributed compared to a conventional blockchain.

There is also a practical angle to the no fees policy.

The IOTA coin does not undertake transactions like a conventional blockchain.

This means that most times, the transactions take place in a fraction of time and money.

As a result, even if you levy a fee, it will be very small.

This type of micro-fees is extremely difficult to track.

It also creates unnecessary blockages in the overall economy.

The idea is to create a smooth and hassle-free economy.

This primary idea is serviced at every single point.

The idea is to create a permanent and efficient environment.

That alone is expected to enhance the overall function of the network.

Moreover, the no fees policy also goes on to attract price-sensitive customers as well.

IOTA Coin Uses Trinary vs. Binary Logic

IOTA coin has also garnered praise for the use of this unconventional technology.

It uses a proprietary innovation to add credibility to this novel concept.

In simple layman terms, IOTA coin uses the trinary logic.

This is very different from the binary logic that networks use.

Essentially then these processors use three states instead of two.

Needless to mention that this then enhances the overall efficiency.

It also adds to the speed of transactions.

The overall computing power of the network also increases manifold.

The hardware for Internet of Things is crucial here.

In this context, the IOTA coin is working closely with an organization JINN Labs.

This is likely to create hardware that is best suited for this technology.

It does not just create a superior sense of compatibility but performance too.

As a result, the pace of transactions also gets a huge fillip.

In compliance with this technology, users also experience a much-enhanced service.

How to Buy IOTA Coin

However, despite these huge positives, the biggest problem is availability.

Often you will notice that people are unaware of how to buy these.

Even for many who dabble in cryptocurrency quite often, it is not clear at all.

There are huge pockets of doubt and uncertainty.

As of now, you can buy IOTA coin only from two exchanges.

What further exacerbates the problem is that neither of the two accepts fiat currencies.

So, if you don’t have deposits in another cryptocurrency, you will not be able to access it.

So you have to first get Bitcoin or Ethereum deposits and then look for buying IOTA coin.

Both the exchanges that offer investors accept any of these cryptocurrencies.

In many ways, that has also limited access to this cryptocurrency.

It is needless to mention that this has also created a sense of mystery about this currency.

In fact, a quick search on the internet about IOTA coin, maximum queries are on buying.

Investors are confused about where to buy and how to buy.

Binance and Bitfinex are the main two exchanges.

You can buy IOTA coin from any of these two exchanges.

However, if you are a US based customer, your options reduce even further.

Bitfinex has stopped servicing US investors as of now.

Exchanges to Buy IOTA Coin

So, let us first examine the two exchanges where you can buy IOTA coin.

1. Bitfinex

This exchange is based out of Hong Kong.

This exchange records one of the largest daily transactions.

The amount of cryptocurrency turnover also establishes this as a credible source.

However, as we mentioned, this exchange does not service US customers anymore.

But other investors from across the world can easily access this exchange.

They can use the conventional format to buy, sell and transact in IOTA coin.

2. Binance

This is a relatively new exchange that came into being.

But the company’s financials are worth taking note of.

They raised as much as $15 million through their Initial Coin Offering in flat 3 minutes.

It went live in less than two weeks after this, around July 14, 2017.

But Binance has not let its relative novelty get in the way of business.

Within this short period, it has created a huge user base.

Nit just that, even in terms of daily trades, it has created a distinct mark for itself.

It ranks in the top 10 daily trade list consistently.

This list essentially ranks exchanges on the volume and turnover recorded every day.

This goes on to highlight the kind of popularity it has gained.

So if you own Bitcoin, Ethereum or any other cryptocurrency you can start trading.

You can also use these currencies to start buying IOTA coin.

Given the huge trade volumes on both these exchanges, you are sure to gain value.

The idea is to garner as much possible value from these positions.

An exchange with high turnover also helps in creating a credible trade.

How to Buy IOTA Coin on Binance

So, let us first understand ways to buy IOTA coin on Binance.

This is a fairly easy procedure.

In many ways, it is similar to buying cryptocurrency on any exchange.

Needless to mention, you have to first register yourself on the exchange.

Once you fill up the registration form, you have to give your email ID and password.

It is always better to create a strong alpha-numeric password.

Also, avoid common dates like birthday or anniversary.

Once you verify your email account, you will get a prompt to log-in.

Clicking on this helps to activate your account.

This exchange also helps you enable 2-factor authentication.

This introduces even better security measures.

The Google Authenticator is one of the simplest and safest alternatives.

This helps reduce the vulnerability of your account.

The initial withdrawal limit is set at 2 BTC every 24 hours.

But once you complete the identity authentication, you can raise this limit.

The next step is, of course, depositing the money.

You can deposit any kind of cryptocurrencies like Bitcoin, Ethereum and Tether.

Now you can buy IOTA coin using this fund.

You can then continue trading in any Bitcoin or Ethereum markets

On an average, Binance charges about 0.1% fee per trade.

Traders can decide how much percentage of cryptocurrency they want to use.

So once you place the market order, the exchange will buy maximum possible IOTA coin.

Additionally, the exchange also looks for the cheapest possible option to deliver value.

Once you have the requisite balance, you can then transfer this amount to a wallet.

Traders normally choose a wallet they like.

How to Buy IOTA Coin on Bitfinex

More or less, all exchanges function in the same way.

So buying IOTA coin on Bitfinex is not very different from Binance.

So you create a login and activate it by verifying the email.

After that, you can enable a 2-factor verification.

You can easily click on the deposit tabs and choose the cryptocurrency you like.

So you can now use the fund to buy IOTA coin.

You can create a variety of market order.

Depending on your requirements, you can easily choose the amount of IOTA coin.

Bitfinex also allows users to store the IOTA coin in a wallet of your choice.

Though most times buying IOTA coin is very simple, the availability becomes an issue.

Concerns About IOTA Coin

Despite the obvious advantages, there are some concerns with IOTA coin.

It is almost impossible to consider that there is no weakness at all.

You have to remember that you are dealing with multiple technologies.

As a result, there are some obvious implementation issues.

In fact, security concerns are the biggest issues with IOTA coin.

There are major concerns about the cryptography principles in use.

As a result, the pricing is fairly unstable in this case.

You can factor in these as initial technical hurdles and teething troubles.

But the security concerns are of primary importance.

On an average, blockchains are vulnerable if one party controls 34% or more.

Therefore it is not impossible to launch this against the Tangle either.

Unlike a conventional blockchain, this one has myriad nodes.

In the early days, this network is still in a controlled atmosphere.

It is much simpler for an attacker to gather 34% or more of this computing power.

But IOTA coin already factored in this concern.

It created a Coordinator within the system early on.

This is supposed to make sure that the security is not compromised.

IOTA Has Huge Potential

Therefore, we can conclude that this cryptocurrency has huge potential.

Therefore, if the makers are able to get past these initial hiccups, the future looks promising.

It can even give the conventional blockchain a run for its money.

There is no stopping the internet of things or microtransactions.

But the fact is this strategy is fairly new.

It still needs a significant amount of testing.

The creators need to invest a significant amount of resource into research.

For the present, though you have to agree that this is still early days.

It is, therefore, a risky investment as of now.

Though it is one of the largest cryptocurrencies in terms of market cap, the risk profile is high.

So, it does not make sense to put all your eggs in this basket.

The concept is novel and has potential to grow.

But at the same time, it is not wise to take a big bet on this.

As the demand for cryptocurrency grows, IOTA coin has strong growth potential.

Right now most investors are deterred by the availability issue.

One of the most searched options is how to buy IOTA coin.

That needs to be addressed first with respect to IOTA coin.

GDAX Review: Is GDAX the Best Way to Buy Cryptocurrencies?

As per GDAX review, it is currently one of the most popular cryptocurrency exchanges.

The term GDAX stands for Global Digital Asset Exchange.

An US-based exchange, it is regulated and backed by some of the best known financial giants.

The key funding institutions include New York Stock Exchange, Andreessen Horowitz.

The FDIC insures customer funds in this exchange.

Created by the makers of the Coinbase Exchange, it became functional in 2016.

GDAX ReviewIt is, in fact, one of the most powerful names to reckon in the world of cryptocurrency.

GDAX offers a compelling variety of cryptocurrencies and currency pair.

It includes Bitcoin, Ethereum and all other important cyrptocurrencies.

It offers you trade options over fiat currencies like US dollar and Euro.

Flexible and convenient trading is the hallmark of this exchange.

Most GDAX reviews indicate that low fee is one of the most striking element of this exchange.

Mostly used by professional and institutional investors, this exchange offers volume discounts.

The fees start from as low as 0.25% and go even lower based on the trading volumes.

But there are many other compelling features that you can explore.

GDAX Review: Competent Trading Platform

The GDAX trading platform is exemplary.

Globally, it is one of the most striking and efficient platforms.

It has an intuitive interface that allows better response rate.

Moreover, the real-time order book and charting features add to the convenience.

Users can easily access the trader history for greater accuracy.

It also helps process orders with greater clarity.

The order processing is quite simple and extremely fast.

This enables users to take advantage of swift price movements.

Moreover, GDAX empowers users with a higher degree of accuracy in order execution.

But most times, a GDAX review is silent about the limit order efficiency.

That is undeniably an area of slight concern.

Quite recently, the company partnered with Trading Technologies.

Needless to mention, it further enhanced the trading prowess of this exchange.

This integration enables Trading technology to also access the spot and futures market.

The firm is also in the process of developing specific solutions for specific assets.

This is being done to address the concerns of the institutional investors.

GDAX has been aligned to the interest of institutional investors from the word go.

This step further seeks to strengthen the expertise in this area.

This partnership also improves the data access of GDAX.

Investors and traders using this exchange will be able to access a variety of charts.

They can also freely use market data and a gamut of trading tools.

Needless to mention this further enhances the cryptocurrency trading experience.

In many cases, this partnership is also seen enabling spreads.

So, all in all, the recent additions go on to help make trade more focused.

This also improves the relative result from these investments.

Invariably there is a much higher chance of investors deriving increased value.

This will also make them choose this index for future transactions.

Quality API Support

GDAX also boasts of a superior API support.

API stands for Application programming interface.

It is that key link that connects the customer order to the exchange.

So in many ways, the API is the messenger who communicates your order to the exchange.

In this context, the GDAX API is one of the best.

Both in terms of functionality and market preparedness, this API improves the efficiency of service.

It makes the GDAX one of the fastest cryptocurrency exchange at the moment.

Both regarding providing feed and trading, the APIs help users get a superior experience.

The trading APIs help in providing access for placing orders.

The feed APIs help in bringing updated fast to the consumers.

As a result of these, consumers can execute their trade a lot faster.

It helps them get more information a lot faster.

Moreover this API allows GDAX to serve on a first come first serve basis.

The pace of order execution is also much faster.

It allows them to cater to a large volume of traders as well.

For most professional traders this creates a huge time advantage.

It helps them to take advantage of price-time priority.

Reasonable Currency Support

But when you consider any GDAX review, the currency support is a key feature.

In fact, this exchange supports one of the most extensive ranges of fiat and cryptocurrency pairs.

From Bitcoin to Bitcoin Cash, Litecoin to Ethereum and dollar, euro pairs are all very popular.

Cryptocurrency pairs with the British pound are also extremely popular.

In effect, this exchange has some of the most compelling currency pairs.

So as an experienced trader you can make deposits in any of these cryptocurrencies and fiat currencies.

Traders can even choose to work in the conventional mode as well.

You can pair Bitcoin with any of the available Fiat options.

Needless to mention that this advanced feature enhances the charm of this exchange.

It makes this exchange way more acceptable globally.

People from across the world find convenient fiat and cryptocurrency pairs.

This enhances the acceptability of the exchange on the global front.

Now, given the rising popularity of cryptocurrencies, this is a key factor.

Let’s face it; the cryptocurrency market is unlikely to be limited to United States or Europe.

A global acceptance is crucial for a broad-based operational success.

The wide range of currency facilitates exactly this factor.

It provides a global identity to the cryptocurrency medium.

A Worldwide Trading Exchange

Another fact that enhances the global appeal of GDAX is the reach.

This is a worldwide trading exchange.

You see acceptance of this trading platform the world over.

That is what makes this exchange extremely functional.

Even investors in Singapore and Australia find the desired support for the currency.

Though they may not be trading in their fiat currencies, there are sufficient alternatives.

The complete list of currencies enables investors from across the world to participate in this trade.

Needless to mention, this also adds to the credibility of the GDAX Exchange.

It is no fly by night operator in some small town in Iowa.

This exchange is operational 24×7 across the world.

The exchange has introduced myriad elements to maintain this global charm.

A wider reach also ensures better trading volumes.

As a result, users are more convinced about the authenticity of trades.

Large trading volumes also attract better quality trades.

As a result, you will notice that users are more than happy in joining this exchange.

This helps in the overall performance and popularity of Bitcoin and other cryptocurrencies too.

Needless to mention that it is another positive tick in the GDAX review.

Favorable Fee Structure

But it all boils down to the money as they say.

In this department, the GDAX exchange scored a decided brownie point.

In many ways, this is one aspect where it even scores above Coinbase.

The trading fees are as little as 0.25% and keep getting smaller with larger volume.

In fact, if you see GDAX trading fees are amongst the lowest in the industry.

So, if you want to trade in cryptocurrency and reduce expenses, GDAX is often the best option.

It allows you to experience the top class exchange experience at a reasonable rate.

Even compared to its sibling Coinbase, its expenses are significantly lesser.

You will notice that an average transaction fee on Coinbase is as much as 4% using credit cards.

However, on GDAX you can get it for as little as 0.1%.

You can deposit money through bank transfers and cryptocurrency deposits.

But the deal gets much sweeter if you have a Coinbase log in too.

In that case, you can take advantage of Coinbase Merchant service and wallet solution.

However, you do not have to pay the high trading fees there.

You can align your trade with the GDAX fee structure.

Transferring funds from Coinbase to GDAX is also simple.

In that case, you can easily take advantage of the Coinbase features without the high fees.

The fee savings is huge when you compare these two offerings from the same team.

Needless to mention, you see a larger number of institutional investors using this exchange.

This is one of the biggest distinguishing factors.

The lower fee is a key reason why a lot of professionals use this exchange.

They are not investors.

They are committing serious money on a sustained basis.

The GDAX exchange rewards them with super cheap rates.

Safe & Trusted

However, theft is one of the biggest scourges in the cryptocurrency world.

The GDAX helps its users experience distinct safety and credibility.

In many ways that is the most important double tick on GDAX reviews.

In fact, GDAX draws heavily from the Coinbase legacy.

Coinbase in many ways pioneered safety standards for cryptocurrencies.

The company holds all customer funds in a separate account.

This means in case of operational capital; this amount is never touched.

Close to 98% of the customer funds are secured in offline cold storages.

This goes a long way in reducing instances of theft.

The only way, you can lose fund in cold storage is by forgetting the access password.

Well, that essentially depends on the individual users.

The chances of these are seen as relatively less.

The 2% funds that are stored online are also secured very well.

In fact, these are also insured by the FDIC.

That means even if there is any potential theft, the consumer does not lose everything.

A basic minimum guaranteed by the insurer is stable.

In this case, the US FDIC insures as much as $250,000.

However, that said, the users have to keep in mind some basic safety measures.

If their account is compromised as a result of those lapses, GDAX is not responsible.

In fact, the GDAX offers some unique safety features.

These include

  • 2-factor authentication of your account.
  • You authenticate through SMS and also the Google Authentication.
  • Being part of the same group, you can also store funds in the Coinbase Vaults.
  • You have multiple signer options to make these vaults more secure.
  • Moreover, you have to verify every new device you access from.
  • This means you get instant alert for any new access.
  • That can alert you about any theft attempt.

Margin Trading Advantage

This is another interesting feature of the GDAX Exchange.

It offers investors up to 3x leverage for margin trading.

Investors get this leverage for up to $10,000 when pairing with US dollar.

In case of Euro pairs or while using Litecoins or BTC, you get 3x leverage for up to $5000.

That means investors get a decided incentive to increase their exposure.

This also helps them enhance trade meaningfully.

How GDAX Fares Vs. Competition

Well, we identified the various unique features of this exchange.

But the fact is no GDAX review is complete without an adequate assessment of its performance.

How does GDAX fare vs. its competitors?

Well, in many ways that is the ultimate litmus test.

In this context, I feel that GDAX has one distinct advantage over the competition.

This is primarily in terms of the level of safety it provides.

A straw poll of cryptocurrency users will indicate that the relative trust is most important.

The GDAX users can always sleep better in this regard.

The account is well protected, and their trades get executed pretty fast.

This means if they want to make a meaningful income by cryptocurrencies, GDAX helps.

It does not just provide them with the related know-how but creates a conducive environment.

It also incorporates a variety of steps to keep the user accounts safe.

As a result, it has gained complete user trust.

That goes a long way in wooing new customers to cryptocurrency.

Moreover, their security standards are one of the best in the Industry.

So if you are dealing with cryptocurrencies, it is always better to deal with the best.

This will make sure that you can extract maximum value from your investment.

While there are many others which are constantly battling trust issues, GDAX remains safe.

This has decidedly helped it to maintain its lead.

Coupled with the user safety are the lucrative trading fees.

It goes without saying that we all like bargain rates.

So if I am trading in cryptocurrencies, I might as well go for the cheapest.

The icing on the cake is that the cheapest one is also the safest.

This further enhances its appeal amongst investors.

These coupled with consistency in delivery is a big positive.

The GDAX Review: The Main Demerits

That said, there are some elements which have room for improvement.

GDAX can work on these to maintain its lead with a decidedly higher margin.

The limited payment method is seen as a major handicap.

Unlike the Coinbase, you don’t have Credit Card access.

Of course, you can argue that if you sync a Coinbase log in with this, you can address this issue.

Also, GDAX is decidedly not for those looking at a huge variety.

Though this is a very liquid exchange, it has 4-5 cryptocurrency offering.

Now compare this with over 80 cryptocurrencies that are in circulation now.

That highlights the gap and the range of possibilities in future.

That apart the public opinion is mixed about the Ethereum Flash Crash.

Traders of this cryptocurrency saw a sharp dip in fund value.

The funds became as little as $0.10 from $300 due to a huge selloff.

Kudos to the company for managing to handle the situation stoically.

Prices recovered quite fast, and many who lost money were refunded.

While the electronic medium will have some glitches, the company’s response is crucial.

Many times, that single-handedly decides how customers react to an emergency.

The Ethereum Flash crash was one such technical glitch.

GDAX may work towards limiting the prospect of such glitches in future.

But their response to a crisis is most important.

GDAX Review: Conclusion

In this context, I always look at user reviews.

What is the GDAX review as per its most dedicated users?

It is very comforting to see a more or less positive approach to this digital asset platform.

That goes on to emphasize that the company is surely doing something right.

Moreover, you will see most questions about GDAX scam dismissed.

That means that many people have enough reasons to believe it is genuine.

But for me, the biggest thumbsup is from the GDAX investors.

From NYSE to FDIC, you have a host of regulators and financial majors supporting GDAX.

That undeniably goes on to support all the positive GDAX review.

It encourages you to use this exchange to trade cryptocurrencies.

GDAX vs Coinbase: Which One Is Better?

If you dabble in Bitcoin, it is essential to understand GDAX vs Coinbase.

These two are undeniably some of the best-known exchanges in the world of cryptocurrency.

For many newcomers, these two exchanges are often the first port of call.

They offer easy options in crypto investments.

However, a lot of beginners are confused about GDAX and Coinbase.

GDAX vs CoinbaseThey are not sure about which exchange they should approach.

Both the exchanges have some distinct advantages.

Depending on the kind of returns you need, you can make an informed choice.

The world of cryptocurrency has different types of investors.

Each different exchange caters to different kinds of traders and investors.

Perhaps we can make the task easier for you with this GDAX vs Coinbase comparison.

We compare various parameters of the two exchanges.

But first of all, it is important to know about the founders of both companies.

That will give you important insight into the fundamentals of the company.

In many ways, the operational module of the company is dependent on that.

GDAX & Coinbase Have the Same Parent

Though GDAX and Coinbase are separate entities, they have the same parent.

Coinbase was created in 2012 by Blockchain champion Brian Armstrong.

This was a result of his keen interest to create an easy to use Bitcoin platform.

Soon Coinbase was selling Bitcoin worth $1 million a month.

It gained extreme popularity within a short time.

If you wanted a position in cryptocurrency, this often became the easiest alternative.

But Armstrong did not stop there.

In 2016, the Coinbase parent came up with a new offering.

A new platform came into being.

It was specially created for professionals with expertise in cryptocurrency.

This platform came up with some specific features.

It was especially for experts and professionals.

This was a clear move away from the company’s earlier offering.

While Coinbase has a decidedly retail base, GDAX was for experts.

The hardcore traders can look at GDAX for additional advantage.

The term GDAX stands for Global Digital Asset Exchange.

It created a window of opportunity for Ethereum access too.

More or less, both these new age exchanges set to change the dynamics of Bitcoin trade.

But the point is when you compare both, how do they stand?

1. The Coinbase Review

A comparison of GDAX vs Coinbase is possible only with a detailed understanding of both.

Let us look at Coinbase first.

It is older of the two exchanges.

In terms of popularity, this is talked about more often.

Perhaps in terms of absolute usage, it is also used more often.

The fundamental aim of Coinbase is simplifying the user experience.

Whether you consider buying, selling or even storing cryptocurrencies, coinbase undeniably offers a superior experience to its users.

Most importantly, there is no distinction between new and experienced users.

In fact, this exchange went on to open up the cryptocurrency to the entire world.

With the ease of use and friendly operational module, it is an instant hot.

You can even use your credit card to fund these transactions.

This is in addition to the cryptocurrency deposits and bank transfers that most enable.

What makes the deal even sweeter is the withdrawal facilities.

Well, here is an exchange that allows you to use PayPal as well.

Coinbase has gradually won investor trust the world over.

Today it is considered way more than a mere Bitcoin exchange.

It is also an important and buzzing Bitcoin wallet solution.

Additionally, it provides merchant facilities too.

The business terms are extremely lucrative, and it opened up access dramatically.

Needless to mention that it has also strengthened the Exchange’s position.

In the world of Bitcoin trade, it has overhauled the overall approach.

It will not be wrong to say it introduced a humane element to cryptocurrency.

It is sensitive to consumer needs and offered an appropriate solution.

2. GDAX Review

So Coinbase is doing fairly well, so why do you need a second exchange?

You can be questioning the parent team’s decision is creating a new exchange.

You can even argue that there is no need for an additional Exchange.

But a little study will highlight that the GDAX is a well thought out concept.

Coinbase is all about creating user appeal.

But the GDAX is minus all that charm, meant for very serious players.

It is primarily meant for cryptocurrency users who mean serious business.

The idea is to provide a meaningful platform to experience Bitcoin users.

It is for hardcore professionals who actively trade in digital assets.

Needless to mention that GDAX does not have any frills attached.

No wallet service, no merchant services either.

It is created purely for sophisticated market players.

Though the same team conceptualized both the exchanges, they are poles apart.

While Coinbase is created to woo new users, this one is only for those who choose it.

Therefore, in many ways, both these exchanges deliver value to the target user base.

But you must remember that the user base for GDAX is very different.

The parent team understood the necessity for a well-focused opportunity.

It provides a professional and well-regulated exchange to users.

Coming on the heels of Coinbase, GDAX takes the user experience a notch higher.

In many ways, the idea was to tap all types of cryptocurrency users.

In this context, GDAX covers an equally important user base.

So now is the time to compare these exchanges individually.

We bring forth to you the pros, cons and unique elements of both these exchanges.

Ease of Use in GDAX vs Coinbase

In terms of ease of use, the Coinbase is a sure winner.

But the fact is that is also part of the game plan.

The Coinbase has been created especially for beginners.

It seeks to address newcomers who are unsure of the cryptocurrency environment.

The idea is to make it as accessible as possible.

So needless to mention, Coinbase is every beginner’s first approach road.

Coinbase is also a retail-specific exchange.

Attracting consumers is one of the cardinal concepts driving the design.

In comparison, GDAX is a far more refined offering.

It is typically for the veterans.

It is direct and on your face.

If you don’t know how to trade Bitcoin, you are in for a hard time with GDAX.

GDAX is not user-friendly at all.

It is categorically designed to service professional traders.

Moreover, Coinbase becomes a one-stop shop for most beginners in Bitcoin.

From Bitcoin trading to merchant services and even a wallet, Coinbase has it all.

So if you are looking for convenience, Coinbase is a sure winner.

Most importantly, GDAX can be rather intimidating to beginners.

For the uninitiated, GDAX can pose more problems than solution.

Further, Coinbases minimizes the need for vaults for storing cryptocurrency.

Their online wallets heighten the overall experience for beginners.

They don’t have to constantly worry about their money being stolen.

The Coinbase wallet makes the task relatively simple for you.

So GDAX vs Coinbase comparison highlights the latter is way more convenient to use.

It is equally effective for newcomers as well as professionals.

The GDAX, in comparison, is undeniably expert material.

Monetary Transactions in GDAX vs Coinbase

When you compare GDAX vs. Coinbase on this feature, Coinbase emerges a clear winner.

Bank transfers and cryptocurrency deposits are common to most exchanges.

The Coinbase, however, offers ways more than this.

You can pay via credit cards and withdraw using PayPal.

That means users get a definitive advantage.

Moreover, statistics indicate that credit card payments typically attract more spending.

This means Coinbase brings more business its way as well.

Additionally, these features make it way more attractive for beginners.

The GDAX in comparison is pretty conventional in this department.

It essentially relies on the bank transfers and cryptocurrency deposits.

However, the game changes completely when you discuss fees.

Suddenly you can see the logic and brilliance of the GDAX offering.

It is meant for serious and steady investors in cryptocurrency.

Well, that is best borne out in the way the fee structure is designed.

Compare GDAX vs Coinbase fees anywhere across the world.

You will be surprised to see how GDAX shines through in this case.

The GDAX trading fees are around 0.25% or even lesser in some cases.

When 30-day user volume increases to 20%, it slides to 0.1%.

However, in comparison, Coinbase charges start from 1.49% and goes up to 3.99%.

Essentially that makes it more expensive in comparison.

But clearly sets the focus and target customers for each product too.

On the one hand, you have Coinbase meant for beginners.

It has a relatively simple payment method.

On the other hand, you have GDAX; its trading rates are dirt cheap.

So it encourages professionals to undertake more trade.

The more you trade, the lesser you pay.

That is sure to encourage an awful lot of Bitcoin users to maximize trade.

Execution of Buy Orders in GDAX vs Coinbase

This is the defining moment when you compare GDAX vs Coinbase.

First and foremost, the high fees in Coinbase erode a significant amount of profit.

That said Coinbase also displays a high slippage rate.

If you compare, the overall market order is much higher than GDAX.

So traders using this exchange will be at a disadvantage.

This slippage rate can be often a major factor in determining the final profit.

Moreover, in some case, you see the final figure is rounded off.

This again eats into profit for most users.

Now let us look at GDAX trade execution.

One advantage is the login details are common for both exchanges.

The execution of the market order is smooth and fast.

The immediate execution ensures that customers get the best possible price.

That helps in keeping the profit percentage intact for users.

The relative slippage rate is much lower.

This is also because the trading fees are much lower in case of GDAX.

You may find the entire operation confusing at the beginning.

But once you get used to trading on GDAX, you will enjoy the smooth experience.

However many times, users may run into trouble executing limit orders.

This can be for a variety of reasons.

Volatile pricing and high volumes too can be a trigger.

However, the GDAX experience is far superior in this case.

This is perhaps primarily because of the lower transaction and trading charges.

It allows investors to keep the maximum amount of profit intact.

They are able to confirm to trading basics without compromising their profit.

But hang on, does that make GDAX a better option than Coinbase?

Availability of Various AltCoins in GDAX vs Coinbase

This is an important consideration when you compare two exchanges.

But, in this case, there is hardly anything to compare.

Both GDAX and Coinbase offers the same currencies for trade.

They offer

  • Bitcoin
  • Ethereum
  • Litecoin

For the Coinbase exchange, this is an okay offering.

However, this is often seen as a limiting factor for GDAX.

It is seen as a solution for sophisticated and seasoned traders.

So the offer of just three currencies means that traders have to limit their game.

They cannot experiment with currencies as much as they will want to.

You can argue that these three are amongst the most popular.

But the question is for how long.

The way the cryptocurrency sector is developing, it is a tough call.

The situation is quite fluid, and you never know how this can limit future growth.

GDAX perhaps can add on support for some other cryptocurrencies as well.

But at the moment users on both these exchanges have to suffice with just three options.

The only positive is so far the turnover has not been seriously affected by this.

But that said, it also introduces a certain degree of discipline in trading.

Both the exchanges offer stable and unhindered trading in the currency options they provide.

Security Element in GDAX vs Coinbase

In this regard, there is hardly anything to compare.

It is a clear tie between GDAX vs Coinbase on the security front.

Security of user interest and security of funds is high on their agenda.

Both the exchanges have incorporated several steps to ensure utmost safety.

Almost 98% of the funds handled by these exchanges are in offline cold storage.

The remaining 2% that is there online is secured by some of the best-known names globally.

As a result, investors never run the risk of losing their money completely.

They can store their money relatively safely and without worry.

In this case, the common parent is a big benefit for both Coinbase and GDAX.

The security policies are similar.

They are able to provide maximum security to their users.

This also helps them to maintain credibility in the investor community.

Users feel safe in undertaking transactions with these exchanges.

Moreover, there is a lesser chance of investors losing their wealth in one blow.

That also encourages investors to walk down the Bitcoin road more often.

The instances of theft in online storage often deterred candidates from investing in these.

But with a greater degree of safety introduced now, it is all changing.

Customer Support in GDAX vs Coinbase

Here again, the scores are tied for Coinbase and GDAX.

In many ways, customers enjoy the benefit of both exchanges having the same parent.

Both the exchanges have 24×7 customer support.

Online reviews are mixed in terms of response time.

But for an exchange with close to $1 million turnover, it is difficult to judge.

On an average, reviews indicate satisfactory and prompt service.

The quality of service also appears up to the mark.

In many cases, you even see the company stepping in with a comment.

So, that means both GDAX and Coinbase take the reviews seriously and act upon it.

The result is that the overall quality of customer support is fairly good.

So… Which One Is Better?

So the question is when you compare the two exchanges, which is better?

Well, that will be a difficult answer.

If you compare GDAX vs Coinbase, each one has some distinct advantages.

GDAX makes clear trading sense while Coinbase with its flurry of offers is lucrative.

The option is to combine the advantages in both for long-term gains.

GDAX does not have trading fees on limit orders and nominal fees on market order.

You can, therefore, buy cryptocurrency from GDAX.

Now the Coinbase wallet is the best way to safeguard these coins

Both Coinbase and GDAX have the same login, so you can sign-in just once.

You can then transfer the coins to a safety vault.

In this way, you maximize your payment and withdrawal options.

But at the same time reduce transaction fees.

Therefore both GDAX and Coinbase have specific advantages.

You have to compare both and see what addresses your investor interest most.

GDAX is keener on sophisticated traders while Coinbase targets beginners.

So if you ask me, it is a clear tie between GDAX and Coinbase.

Coinbase Review: Is Coinbase Legit and Safe?

Coinbase is one of the best-known cryptocurrency exchanges.

In fact, it is supposed to be one of the world’s largest bitcoin brokers.

They are currently serving 32 countries.

This exchange based in San Francisco currently has over 7 million users.

In fact, Coinbase is one of the most active exchanges providing cryptocurrencies.

It has several advantages and attracts huge traders.

Therefore, a Coinbase review is very relevant at the moment.

The question that most beginners want to know is Coinbase legit?

Is Coinbase safe?

It is pertinent to ascertain whether this currency is legit and safe?

Origin of Coinbase

Is Coinbase Safe and How It Works?This California based Bitcoin exchange is currently worth $4 billion.

The exchange is operational from 2012.

Brian Armstrong and Fred Ehrsam are the key founders..

They have served about 4 million customers.

Their largest customer base is in US, UK and Brazil.

It is often seen as the most convenient way to take a position in Bitcoin.

They are famous for the smooth and painless quality of service.

From Credit cards to PayPal, SEPA transfer and EFT, they have a huge network of partnerships.

These bank partnerships facilitate the easy transaction of money.

For many first time Coinbase users, this is one of the primary catalysts.

Then I am sure you will wonder why does it attract such animosity?

Time and again, there are questions about how safe and legit it is?

Well, in many ways Coinbase acts like a conventional bank.

Therefore, needless to mention that not everyone will like it.

A lot of people turn to Bitcoin as an easy money making opportunity.

So in that case, many people may not like the additional accountability.

Therefore the animosity is quite natural.

Therefore some Coinbase reviews also raise concerns about how legit its operations are.

The Coinbase Operation Module

So how exactly does Coinbase work?

The interface is relatively simple.

This makes it a convenient option for beginners.

When you are a first-time bitcoin buyer, this gives a safer alternative.

You can buy bitcoins using a credit card, debit card and even bank transfer.

So as an exchange, it provides sufficient flexibility without compromising security.

It provides a wide range of deposit and withdrawal options.

It also facilitates instant transfer between Coinbase users.

Overall, the user experience ensures a smooth and hassle-free experience.

This is also a one-stop shop for all kinds of cryptocurrencies.

You can even buy Ethereum and other Alt Coin apart from Bitcoin.

Is Coinbase Safe?

An important part of the Coinbase review is to know is Coinbase safe?

A pool of stable investors support this Exchange.

The list includes Reddit co-founder, Alexis Ohanian.

It also includes Bank of Tokyo and the Digital Currency Group.

There are three elements to it.

1. How Safe Is Your Fund?

Available details indicate that Coinbase keeps your money separately.

Their operational fund is in a separate account.

In fact, the customer’s funds are kept in different bank accounts.

So the advantage is they don’t deploy your funds for their operation.

The customer funds are returnable even in case of Coinbase bankruptcy.

In fact, over 98% of the customer money is offline.

You have a wide range of vaults and safe deposits world over.

So the chance of hackers getting access and potential theft is much lesser.

The entire online deposit is insured by Lloyd’s.

In fact, US residents who have Coinbase wallets get a FDIC insurance cover.

The maximum FDIC cover is as much as $250,000.

2. Is the Operation Legit?

This is another major concern in terms of safety.

Compliance with US laws is mandatory.

This is because it is operational in the United States.

So, this cryptocurrency exchange complies with Bank Secrecy Act.

It also adheres to USA Patriot Act and is registered as a Money Service business.

As a result, Coinbase has to follow a certain set of rules and regulation.

Moreover, it operates in 31 other countries.

So it has to follow a certain set of norms in most of these countries as well.

Every country has its set of regulations.

A company has to follow these for effective operation.

3. Are Your Personal Details Safe with Coinbase?

If you want to know is Coinbase safe, it is important to figure out personal safety.

In this context, it offers some distinct security features.

It offers users 2-factor authentication.

You can even use third-party alternatives for maximum security.

This also gives you the option to track all activity online.

You can also get a notification about any new login.

Moreover, the Coinbase support system is available 24×7.

So you can report any unauthorized login attempt instantly.

That increases the relative accountability.

Needless to mention that it makes these accounts safe too.

Users can be confident about avoiding any breach.

This is particularly useful for newcomers.

They are prone to making mistakes and Coinbase offers sufficient security against most.

Frozen Account Controversy

One of the biggest concerns with Coinbase is the closed accounts.

There are many complaints about the forcible closing of accounts.

But this is also because the company’s operation is strictly linked to banking norms.

Coinbase practices anti-money laundering and KYC regulations.

So in many ways, it operates just like your conventional bank.

In fact, this is one of the few Bitcoin exchanges with regulatory approval.

Therefore, it replicates the operation module of the bank.

Moreover, Coinbase also tracks the spend trends of the clients.

So many users look at this as an invasion into their privacy.

In case, it creates a dispute with their algorithms, they can shut the account.

So if you want to gamble or buy contraband, this may not be the best fund source.

Though you will get your money back in case of account closure, it can be difficult.

Moreover, recovery of the money is both time taking and costly.

Another steady complaint that you hear about Coinbase is withdrawal difficulty.

Almost every third or fourth review online is about how difficult it is to withdraw money.

Given the strict KYC they follow, any type of discrepancy can add to your woes.

You will end up with your account blocked or completely shut.

This kind of blacklisting also affects your credit history as a bitcoin trader.

So one advice to all Coinbase users is they should read the FAQ clearly.

Make sure that you follow every pre-condition properly.

Also, avoid steps like resale of bitcoin to other exchanges.

This will make sure that you have a glitch-free user experience.

The Pros of Coinbase

On an average, the internet community has the varying opinion on the Coinbase review.

There is a segment that highlights the superior user experience.

But at the same time, there are equal number of voices raising concerns about how safe it is?

So a simple option is to tally the pros and cons of using this Bitcoin exchange.

Let us look at the advantages first.

A convenient and simple user experience is the biggest advantage undoubtedly.

But that apart, there are many others as well.

In many ways, they also help address the various concerns.

1. Widespread Availability

The Coinbase exchange is functional in 32 countries.

This means it also operates in multiple currency zones.

As a result, any Bitcoin/Cryptocurrency trader can access it from anywhere.

Moreover, you can undertake transactions in the dollar, euro, pound and many others.

Your geographical position does not impact your transaction.

Their software can address the different demands of international customers.

For beginners, this can be of particular advantage.

It helps them create a wide variety of deposit and withdrawal opportunities.

If you know other coinbase users, you can easily undertake instant transfers too.

2. Ease of Operation

Users have to undertake a series of verification steps to set up an account.

But once that is over, accessing the account is quite simple.

If you verify your ID, you can buy as much as $1000 worth bitcoins on a weekly basis.

You can use any type of payment method from credit card to bank transfers.

Also, you can even use this Exchange to buy other AltCoins.

You can buy Bitcoin Cash or Ethereum as well.

However, you must remember that Coinbase will not convert to Bitcoin Cash.

You have to undertake proper procedure to convert in case of fork.

They also enabled Bitcoin Cash availability by PayPal.

3. Range of Wallets

This is another big advantage when you are dealing with Coinbase.

You have a wide range of wallets.

So whether you are a beginner or a pro, you can use it with convenience.

In the first type, Coinbase handles the wallet key security.

This means that even beginners can use it without worry.

You can store your coins here conveniently without worrying.

The Multisig Vault is the other option for Coinbase users.

As the name indicates, it needs multiple-signature authentication.

So if you are asking is Coinbase safe, this will assuage your fear.

4. Well Insured Deposits

This is another important feature of this Bitcoin Exchange.

All deposits on this exchange are insured.

So even if you lose your password or account hacked, you have insurance cover.

This is, in fact, one of the biggest concerns with bitcoin transaction.

A simple miss can result in deep losses but not anymore.

So in case of a theft, you don’t end up losing everything.

You can hope to get back some amount of money.

Moreover, the insurance covers also address your concerns about is Coinbase legit.

Insurance companies have strict compliance norms.

They are unlikely to provide cover to an illegitimate organization.

Moreover, for beginners, this makes the transaction safe.

For beginners especially, this is a big advantage.

It instills confidence in their overall operation.

5. Active Customer Support

It is one of the first Bitcoin Exchange with active customer support.

The Coinbase representatives are available 24×7.

So Coinbase users can easily access the exchange for any type of help.

This is a big advantage to new users.

Often the lack of understanding can result in serious problems.

Coinbase in this context works like a conventional financial agency.

They actively help users in understanding the various nuances.

However, the overall rating is fairly mixed.

But, in many ways, it also reflects the increasing user base.

However, on a 7 million user base, it is difficult to please all.

6. Wide Spread Partnership

Well, the superior user experience is surely commendable.

But a major trigger for this is the strong network of partnerships.

This means that customers are able to get a smooth and glitch-free service.

As a result, the offering is aligned better with customer needs.

Some of their biggest investors include NYSE, BBVA and Andreessen Horowitz.

You get the advantage of professional and technical expertise in one go.

This also answers questions about is Coinbase legit?

Such big names are unlikely to back an organization that is not legit.

Needless to mention that it is a major advantage.

The Coinbase Review: Cons

But that said, there are some pockets of concerns as well.

Coinbase users have posted mixed reviews.

Often they have been impacted by their own success as well.

When an organization grows at a phenomenal pace, there are problems.

The huge user interest can also lead to significant issues.

You have to make a careful consideration about the efficiency of the resources.

The pace of additional resource addition is also crucial.

In many ways, it can go a long way in creating a better balance.

1. Tackling the Huge Inflow

Given the recent Bitcoin performances, Coinbase is seeing huge demand.

This means a relatively large number of people are gathering to sign-up.

That can surely slow down the approval process.

A lot more people are applying, but the relevant rate of signups are taking time.

But this is not a Coinbase problem alone.

In fact, most major exchanges are going through this problem.

They cannot ramp up their service suddenly.

This is a gradual process and takes time.

As a result, it is a wait and watch policy and needs gradual service enhancement.

This is not something that can be addressed in a hurry.

2. The Price of Safety

In many ways, Coinbase also has to pay the price of being super safe.

As a result of the strict regulatory compliance, customers get flagged down easily.

As a result, their accounts also get frozen quite easily.

While the additional safety norms help, they also annoy those impacted.

Therefore, it is natural the extra vetting is time-consuming.

So there is a lot of anomalies in the system.

The Exchange needs to incorporate some meaningful awareness campaigns.

They have to make customers aware of the extent of safety and legitimacy. There

3. Tracking Transactions

This is one of the most common concerns in Coinbase reviews.

The average allegation is that Coin can be tracked even after withdrawal.

Many investors look at it as a breach of privacy.

They question the need for such extensive monitoring.

Well, the fact is that Coinbase is part of the Blockchain alliance.

This means they actively prevent the use of cryptocurrencies for illegal purpose.

So you cannot hope to use the money you make on Coinbase for illegal activities.

You cannot use it for gambling or any other unlicensed act.

So this is what makes your transaction safe and legit.

If you ask me, I will rather go with this disadvantage.

It guarantees long-term safety of my transaction.

That apart, there are concerns about Coinbase addressing investor concerns.

But those types of discussion are in the realms of assumptions.

There is no distinct proof of this.

You cannot ascertain these in any way.

Overall Conclusion of Our Coinbase Review

Therefore, we can conclude that a Coinbase review will at best be mixed.

You cannot look at any one factor in isolation.

There is a mix of some extremely positive elements and some pockets of concern.

Remember every exchange will be more worried about attracting and making money.

It is wrong to expect any exchange for that matter to act on behalf of the customers.

For me, Coinbase holding the private keys is a major worry.

Remember whoever holds the private key controls the money after all.

The multi-sig Vault surely offers additional security, but it is never same as personal holding.

But one thing is for sure.

You cannot use Coinbase for illegal activities.

But that said, Coinbase hardly conforms to the Bitcoin principles.

Though it is convenient, cheap and popular, it works like a conventional bank.

However, it is a great option for newcomers to enter the cryptocurrency space.

It is not strictly for Bitcoin users, but Ethereum owners can use its relative success.

A lot of people seek comfort in this conventional charm.

It is no doubt a very safe and legit opportunity.

It is well capitalized and safe.

But at the same time, it is a convenient investment opportunity.

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What Is Bitcoin Fork and How to Benefit from It?

If you want to understand a Bitcoin fork, imagine a dinner fork.

A straight line diversifies into multiple ones.

Similarly, a Bitcoin fork is a software change in this cryptocurrency.

A single blockchain gets divided into two.

For a certain period, these both operate simultaneously.

So, you have two versions with a shared history.

These forks can sometimes be temporary.

In an infrequent situation, the split can be so deep-rooted that it is permanent.

Bitcoin ForkAs you can imagine, a split in the blockchain also results in the creation of two currencies.

As a result of this separation, the blockchain ledger will list two chains for a while.

While a group will believe in one block, the other half will believe in the other one.

The only positive in the entire problem is most times these get resolved quickly.

The probability of two block forks is relatively rare.

However, these single forks emerge every once in a while.

The problem is generally resolved by the network that spots it first.

One of the blocks becomes redundant, and the entire network adopts the other one.

The redundant is then stored in pool as an orphan one.

The block time is the key determinant in this.

The shorter the time, the higher is the probability of the problem resolving on its own.

Different blockchains have the different operational matrix.

These factors define the efficiency and as a result, speed up or reduce forking prospect.

So in many ways, you can look at forks at protocol changes.

It is, in many ways, a protocol upgrade as well.

In this, a new set of rules is adopted while another set is made redundant.

Types of Forks

There are two types of Bitcoin forks.

The differentiation is on the basis of time duration for the forks.

The final time duration also decides the longevity of the forks.

In many ways, this creates the relative extent of risk in the fork as well.

1. Hard Fork

As you can understand from the name, the Hard Fork is a relatively long-standing change.

This change makes the previous one redundant.

Every node and user in the blockchain has to adopt this upgraded version.

So, you can even look at this as a relatively permanent alteration in the blockchain.

So, if you have any node running on the previous blockchain, they will be redundant

These won’t be accepted any further.

To maintain the continuity, the old blockchain quickly adapts to the changed protocol.

Often this is a convenient way to introduce newer features in the blockchain.

If there are any security risks in the older blockchain, the hard fork can resolve these.

At other times, the hard fork can introduce functional elements.

So, in many ways, this is the best way to introduce long-term innovation.

It helps the blockchain to reinstate a new protocol.

2. Soft Fork

In comparison, the soft fork is a temporary change.

This necessitates backward compatibility of the various nodes.

In this case, only a majority of users have to upgrade.

A complete adoption is not necessary.

New transactions can be easily added with the sender and receiver’s consent.

So in this case, only the concerned participants have to understand the protocol.

A soft fork can be due to non-compliance with upgrades as well.

This is predominantly a temporary divergence.

But remember, you need a hard fork to reverse a soft fork.

Key Bitcoin Fork Thus Far

There are some key splits in the Bitcoin world thus far.

These splits can be divided into soft forks and hard forks.

Some of the most striking Soft Forks include:

1. Bitcoin XT

This was created in mid-2015.

This is after a proposal to increase the block size to 8 megabytes.

The Bitcoin Core is the parent blockchain here.

However, it did not manage the requisite support.

The protocol is on the decline since 2016.

2. Bitcoin Classic

This is another noteworthy fork of the Bitcoin Core.

Its aim was to increase the transaction processing.

Just like the Bitcoin XT, it was a move to decentralize the governance.

It aimed to enhance the scalability of the Bitcoin

Several governance initiatives were included.

But this too failed to garner the supermajority.

As a result, it became an orphan block.

By the end of 2016, it went out of circulation.

3. Bitcoin Unlimited

The aim of its creation was to address scalability issues.

The aim was to empower users with preference power.

The ultimate target was to increase the transaction limit of the Bitcoin node.

There is a variation of this in the Bitcoin Cash network.

It operates as the BU cash.

However, the developers of Bitcoin Core are not too keen to increase the size.

The Hard Fork Thus Far

There have been some hark forks in the Bitcoin world as well.

These are primarily with the objective to create greater transparency.

Here is a list of some of the most striking ones.

– Bitcoin Cash

This is perhaps the most important hard forks.

This Bitcoin fork was undertaken at Block 478558

The fork came into operation on August 1, 2017.

Again it was a 1:1 fork.

By this I mean, users get 1 Bitcoin Cash against 1 Bitcoin.

Bitcoin Gold

This started operation from October 24, 2017.

In this case, the Bitcoin was forked at Block 491407

This fork was also envisaged with a 1:1 ratio.

You get 1 Bitcoin Gold for every Bitcoin.

It was primarily to address the scalability concern.

Increasing the block size capability was the primary motive.

Soon after its inception, it was yielding 30% more returns.

– Bitcoin Diamond

This is perhaps the most recent one.

This started operation on December 12, 2017.

The Bitcoin Fork was created at Block 495866.

You get 1 Bitcoin Diamond for every 1 Bitcoin.

Two mining pools, Team EVEY and Team 007 created this one.

Information about the long-term sustainability is crucial.

In many ways, these hard forks are created intentionally as well.

Wave of Bitcoin Forks

So you can sure that there has been a wave of Bitcoin Fork.

In 2017 alone, there have been three forks.

So it is quite evident that this trend is here to stay.

The question is what’s the next step for Bitcoin investors?

Quite evidently, it becomes important to identify how to gain from it.

In fact, there are quite a few that have yielded better returns than the parent.

So you saw a phenomenon similar to a stock split in the Bitcoin world.

So if you held one Bitcoin earlier, you now held 1 Bitcoin Cash.

Now consider how it impacted the Bitcoin value.

From August 2017 till date, the Bitcoin Cash in circulation is worth $20 billion.

By sheer networth, The Bitcoin Cash is now the third most important cryptocurrency.

It ranks just after Bitcoin and Ethereum in absolute terms.

But the fact is the parent Bitcoin did not experience that kind of value depreciation.

The current Bitcoin value is close to $150 billion.

But with that amount of money at stake, this fork is inevitable.

For example, the more current fork Bitcoin Gold yielded 30% more return.

As a result, the Bitcoin Gold is worth $270 per Bitcoin.

But the Bitcoin Gold saga does not end right there.

They mined close to 100,000 Bitcoins themselves before making it public.

Bitcoin Gold network is now worth $4.5 billion.

This is the sixth most valuable cryptocurrency currently.

It is even slightly ahead of Litecoin, another Bitcoin fork.

As any astute investor than it is important to play these carefully.

Think about a conventional stock split.

You have to take a well-calibrated call to gain most from it.

This is how you can make a meaningful impact.

Prospects of Bitcoin Fork Failure

The problem with a Bitcoin Fork is there is no guarantee of sustenance.

You can never be quite sure whether this will create sustainable value.

Moreover, how do you decide which one is a serious play?

For example, if you see Bitcoin Uranium, it does not seem believable.

Many similar options are there.

There isn’t anything more than the mere mention of these Forks.

There is actually a huge potential for free money.

This is what also creates a considerable blip in the overall scheme of things.

Just look at the Bitcoin Gold for that matter.

In just a few months, this yielded a turnaround of $27 million.

But at the same time, you have some plays like Uranium.

Moreover, for many Bitcoin Forks, they try cashing on the Bitcoin name.

Obviously, these forks involve a lot less work than any new currency.

People often pay attention because of the Bitcoin mention.

Perhaps the authentication issue is the primary cause for concern.

In case of a Bitcoin fork, the exchange controls the private key.

As a result, the exchange has the capability of underlying cash.

This means the investor is pretty much at the exchange’s mercy.

So theoretically, the exchanges can simply pocket this money and be done.

They can pocket a huge amount of cash on their own accord.

But, this can also impact the credibility of an exchange in the long-term.

It can cost them precious customers.

That means even the sustainability is at stake.

So for any new Bitcoin fork to sustain, you need the support of multiple exchanges.

So only when a collection of exchanges offer support, you can create a meaningful lobby.

They should at least offer the capability to withdraw.

You can well imagine without withdrawal power, a Bitcoin is not sustainable.

Key Advantages of Bitcoin Fork

If you want to extract value from a bitcoin fork, you have to know the pros and cons.

There is a reasonable motive behind the creation of every bitcoin fork.

If you want to draw benefit from that, you have to understand it.

The cardinal element in this is the intrinsic concept.

The final value is based on the overall potential of the concept.

For example, when you look at Bitcoin Cash, the technological potential of it is the driving force.

Similarly, the core concept is the most important factor.

It helps you to derive long-term value from it.

1. Scalability of Transaction

This is perhaps the most important advantage of Bitcoin fork.

If you see, most hard forks are an outcome of this core consideration.

The ever-increasing volume of Bitcoin users is a matter of huge concern.

This volume of users has a significant impact on the transaction efficiencies to.

The limited amount of transactions in the current block is the biggest restraining factor.

It has resulted in easy replication.

This is one of the biggest concerns that led to the formulation of forks.

Often the thinking is that hard forks are the best option to enhance scalability.

2. Increasing the Blocksize

Talks about increasing the Bitcoin block has been underway for a while.

Though there have been some temporary soft forks, most have been terminated.

Perhaps the Bitcoin Cash is the first notable hard fork that yielded value.

The idea is to increase the blocksize to 2MB or more.

But increasing the blocksize is never an individual decision.

The entire community has to be considered.

At least a few exchanges need to come together.

But if done, it can significantly enhance the value.

This is because a blocksize with higher capability will return more value.

This can directly boost the overall return on the Bitcoin investment.

3. Higher Returns

Lets’ assume you took a stake in a Bitcoin fork like Bitcoin Cash.

In a matter of few months, you got $270/Bitcoin.

This is because you got Bitcoin Cash for every Bitcoin.

Now even without any well-charted investment strategy, you could extract value.

So this can be one of the best triggers for choosing a fork.

But you have to carefully study the concept before taking a call.

The downside is if you end up with something like Bitcoin Uranium.

It can yield little or no value at all.

But if you can invest in sustainable options, it will generate good value.

4. Benefit for the Network

The bitcoin fork can provide reasonable value to the network.

At the current 1 MB size, you can process a maximum of 4 transactions per second.

Now if the size is doubled to 2 MB, the transaction volume can also increase.

Imagine if the transaction value is doubled, the volume of the transaction will also increase.

This is a big positive for regular users.

Because the higher number of transactions will reduce the charges involved.

This is because the volume of transactions will increase relatively.

This will result in a significant drop in the transaction rate.

It will definitely be at a much lower level than now.

So the broad user base will gain significantly from it.

On the other hand, also watch out on the earnings of effective bitcoin miners.

Moreover, it is a crucial step to enhance global payment network.

If you refer to the original white paper by Satoshi, he targeted 100 million transactions daily.

Bandwidth usage was expected to reach 100 GB.

As a result, volume is expected to rule over value.

But really small miners may lose out some bit of margins.

5. Higher Risk Reward Ratio

This is perhaps the oldest truth of investment.

If you want greater rewards, you need to take up higher risk.

Needless to mention that Bitcoin fork represents significant risk.

The only solace is the higher reward that it represents.

The fork opens up significantly larger opportunities to make money.

Look at the simple statistics of the hard fork in August 2017.

In a matter of 6 months, investors have almost realized 3x the value.

Now this means the next fork could raise the relative value.

Investors will go into the fork with the expectation of higher returns.

However, you need to balance between perception and reality.

Bitcoin Fork Can Be Hugely Rewarding Exercise

This is true that Bitcoin Fork can be so profitable.

However, you have to be careful in avoiding potential scams.

This is because when a new fork is undertaken, the private keys are held by exchanges.

So there is 100% chance of anyone tricking investors into revealing their private.

The private keys are the only way to get access to the fund.

One of the safety options could be creating new addresses.

Before you try out cash from a new Bitcoin, better to shift your investment to the new address.

However, given the increasing number of transactions, Bitcoin forks are here to stay.

Decide carefully about investing in a Bitcoin Fork.

Look at all elements before committing your money in these.

Cryptocurrency Investment Strategies Every Investor Should Learn

Cryptocurrency investment is quickly becoming one of the most sought after ventures of our time.

Much like the rise of global internet, experts are foreseeing a world that will rely on blockchain technology to solve various organizational and security issues that have been plaguing our society for centuries.

Investing in the crypto market is also extremely profitable if Bitcoin’s success is anything to go by.

But you can also lose a lot of green in a flash if you take the wrong approach.

That’s why nothing beats having an investment plan and sticking to it in this highly volatile market.

Let’s check out a few basics first for the sake of new investors in the cryptocurrency space.

What Is a Cryptocurrency?

Cryptocurrencies or alt coins are a form of virtual currency with many applications that use cryptography – an advanced encrypting technique –  to keep transactions secure on the blockchain network.

Bitcoin, which has increased in value by over 1500% in the last couple of months, is a good example of a cryptocurrency.

Following the mass adoption of Bitcoin as an investment, more people are starting to shift focus to other coins as well.

This is a great way to diversify your cryptocurrency investment portfolio and minimize risk.

As the blockchain starts to heat up, here are some alternatives to Bitcoin which have had impressive runs as well:

  • Litecoin

2017 was a big year for Litecoin as it skyrocketed alongside many of its crypto peers.

This coin was introduced back in 2013 as a silver bullet to many of Bitcoin’s problems.

What makes Litecoin so unique is its ability to use the blockchain technology more efficiently than Bitcoin.

This makes transactions using the coin lightning fast and super secure.

  • Ethereum

A relatively new coin but one that’s poised for even more dynamic growth in the coming months.

Since being launched in 2015, Ethereum has surged over 1000% and is now listed on coinmarketcap as the second most valuable alt coin.

Here are 3 reasons why this cryptocurrency investment is worth closer scrutiny.

  • Compared to Bitcoin and other coins, Ethereum has more applications and unrivaled precision in solving complex problems.
  • Dozens of Fortune 500 companies are backing Ethereum and collaborating to further its technology. Some of these blue-chip companies – known for only taking calculated risks – include Microsoft, Intel, and BP. Their ultimate goal? to incorporate the Ethereum network technology into their businesses.
  • Financial institutions are also starting to incorporate Ethereum into their business models.
  • Stratis

This one seems undervalued because there hasn’t been much awareness surrounding it.

But it’s backed by strong infrastructure, many future applications we can rely on, and an interesting business model that’s rivaling Ethereum.

  • Ripple

Ripple and its technology network, XRP, is a revolutionary way of sending and receiving money regardless of your location or where you bank.

It’s a real game changer in how we conduct business across borders.

Disclaimer: The listed coins above are for informational purposes only and shouldn’t be taken as financial advice.

It’s advisable to carry out your own thorough research before settling on a particular coin as an investment.

Cryptocurrency Investment Step by Step:

Now that we’re done covering the basics, let’s get down to the nitty-gritty of cryptocurrency investment.

Step 1: Before Pulling the Trigger, Have a Solid Plan in Place

The easiest way to lose money on your cryptocurrency investment is to randomly expose yourself to the market and buying when the price is at an all-time high.

It may sound like a cliche but always aim to buy low and sell high.

Some of the most profitable investment strategies are based on this simple principle.

But you’ll be surprised that over 90% of investors in the financial markets do the exact opposite.

The logic behind it? No one wants to buy into a cheap market.

It’s only when a market is hot and rising that it grabs everyone’s attention.

I think it all comes down to how well tuned your trading psychology and emotional intelligence is.

And, more importantly, which living strategy you choose to follow.

Take the case of Bitcoin for example.

Back in 2013 when Bitcoin was ranging below $1000, many investors didn’t consider it a worthwhile investment.

Fast forward 4 years later, and everyone now wants to board a train that’s already left the station.

Forget about Bitcoin for a second.

Right now your aim should be owning a low-risk cryptocurrency investment which earns you consistent profits in the long run.

So it’s more prudent to pick a smaller coin.

Choose something that’s dirt cheap right now – like Bitcoin was back in 2010 – and you should expect a good ROI.

Here’s a checklist you can use if you’re having trouble getting your crypto investment plan off the ground.

a. Risk vs. Reward

Proper risk management is one of the most important yet least understood elements to profitable cryptocurrency investment.

Sometimes you might think that you’ve found a kick-ass buy set up but history reminds us nothing is ever guaranteed when investing in risky digital assets.

Every trader, even the more experienced ones, can’t completely avoid taking a hit from time to time.

The only effective solution that guarantees you won’t blow up your investment is to strictly follow your risk management strategy.

This is, especially, true if you’re using margin to buy dips. (I’ll cover more about buying dips in the next section)

The beauty of margin trading is using the leverage advanced to you to help boost your earnings.

But margin trading – which is basically using borrowed funds – should be approached with caution.

It’s a good example of a double-edged sword.

Because if you’re not careful with how you leverage your investment, it can all go horribly wrong.

And nothing is as horrifying as waking up to a margin call when price crashes against you.

A risk: reward ratio of 1:3 is a good place to start.

This simply means that you make $3 every time you’re right and you lose $1 when you get it wrong.

b. Identifying Entry Points

Successful investing in crypto has many things in common with most other financial markets.

It’s a waiting game most of the time.

If you sit back and watch any of the coin charts, volatility is certainly a good sign and might present an even better buying opportunity.

A good entry point will help you squeeze in some more profit from your investment and limit its drawdown.

An unwritten rule that most experienced traders are using to profitably manage cryptocurrency investments is only buying the dip and working their way into a portfolio over time.

When prices go down, they buy more and are usually fully invested in a coin within a couple of months.

Take the case of Bitcoin, for example.

On its way up, Bitcoin had to endure hit after hit in the wake of negative publicity from governments, banks, and the effects of technology updates.

But every time it rode right through the punches before hitting new highs.

In hindsight, all these dips were perfect buying opportunities.

The most notable Bitcoin crash was after the massive 2013 China bubble.

Price fell from a record high of $1242 to $480 in the US when China’s largest exchange ordered a block on new deposits.

But after consolidating for a couple of months at those levels, Bitcoin has been on a bull run ever since.

To sum it up, never sell the dip as counter-intuitive as it may sound.

And for a less risky buy entry, it’s advisable to stay out of the market for at least 48 hours after price tanks.

c. Mapping Out Your Profit Targets

Anyone who’s ever lived through a “bubble” knows why taking profits consistently as an investment grows is important.

Though the crypto train is nowhere near being considered a “bubble”, the principle still applies.

A conservative recommendation is to liquidate a slice of your cryptocurrency investment with every 100% gain it makes.

Eventually, you’ll have to scale out of your cryptocurrency investment completely.

When in a bull market, your game play is to hold your coins until you feel the bulls are now exhausted.

One of the most liberating things you can do as an investor in crypto is learning to give up the chase for that last or first eighth change in price in a quest for more gains.

Step 2: Stop Overtrading Your Cryptocurrency Investment

One mistake to avoid as a new investor in crypto is the allure of chasing and trying to profit from every move.

In reality, you only need 1 or 2 big trades a year to make a significant amount of money.

A good example of this is STRAT/BTC which has been on a strong uptrend for a couple of months now.

In October 2016, STRAT/BTC was accumulating at 6 cents per coin.

At the time, this was only a $3 million valuation.

Within 6-9 months price had soared to $10 per coin which was an incredible gain of over 1000%.

A prior investment of $1000 would now be worth over $100000.

As a percentage gain, this is very impressive and shows you don’t have to day trade your investment to make a career’s worth of money.

Why Overtrading is Risky for your Cryptocurrency Investment

If you try to trade every move the market makes, you’ll only end up burning money on commissions and fees and slippage – which is the bid/ask spread.

That’s one of the reasons why I never day trade my cryptocurrency investment or advise anyone to do so.

Typically, swing trading the market yields more consistent profits.

These are bigger moves that can offer at least 15-30% ROI.

Step 3: Trying to Pick Tops in a Market is a Bad Idea

This applies to both sides of the spectrum.

Some investors/traders often try to short (sell) against a strong trend anticipating a reversal.

Others get out too early and leave money on the table after a slight pullback even when they’re on the right side of the trend.

The main problem with trying to pick a top in any market is how easy it is to get run over and lose money if the market moves against you.

This is, especially, true if you’re actively trading your crpyptocurrency investment as opposed to buying and holding your coins in an online wallet.

The best approach for cashing out a crypto investment is to scale out of your long positions gradually at pre-defined price points.

Step 4: Managing Your Cryptocurrency Investment

Just like we can’t pick tops in any market, you never know for certain when the market will roll over or if you short when it will bounce.

Let’s say you buy Ethereum or any other alt coin and you’re trying to find an exit point and lock in some profit.

You want to manage your investment in such a way that you’re going to be okay with any kind of price action.

Because let’s face it, we can’t control the outcome of any market.

And if you try to force your will on a market, you’ll only get more out of sync with it.

I’ll use the STRAT/BTC example from earlier to illustrate how managing your cryptocurrency investment well can translate to more profit for you.

When STRAT/BTC finally started exploding upwards in March 2017, I decided to close out a big chunk of my position with a 900-1000% gain.

Because if the market had crashed before I’d taken some profit, I’d still be kicking myself in the foot for letting all those gains fizzle out.

Step 5: Don’t Chase the Hype

If you’re not very green in the financial markets, you’ve probably heard the phrase “the trend is your friend” before.

Having such a sentiment before getting into any market is a subtle sign of herd mentality.

Herd mentality or mass-generated hype creates an environment where participants in a market simply follow the buying pattern of the majority.

Sometimes you’ll even find there’s no sensible reason behind such moves.

Herd mentality in cryptocurrency investment is currently being driven by the fear of missing out (FOMO), greed, and a bit of excitement.

Investors who missed out on Bitcoin are now busy looking for the next alt coin that will replicate Bitcoin’s success.

And that’s why you should treat ICOs with extra caution.

New alt coins are flooding the market every other week in an effort to raise funds and attract new investors.

Some of the cryptocurrency projects behind these new coins actually look promising and profitable in the long haul.

But most of them are a bad buy and won’t be worth much once the market starts to correct.

Quick Give Away

As you navigate through the cryptocurrency space applying the above strategies and learning the ropes, these key lessons will also come in handy:

a. Nothing Beats Doing Your Own Research.

Like any other investment, it’s best to start your cryptocurrency investment with a fact-finding mission.

This will help you to form an unbiased sentiment about the alt coin you’d like to invest in.

In summary, here’s what you’re looking to discover from your research:

  • Are people mining the coin?

If techies behind the coin are willing to invest in mining hardware, this is a good sign that’s it’s generating interest and a vote of confidence to its growth.

  • If more businesses are willing to use the coin in their operations, the better it is for its future potential growth.
  • Look at how much effort the development team is putting in in terms of innovation and improvements and that their track record is squeaky clean.

We look at this metric because some coins are no longer being maintained by the pre-launch development team.

This is a bit retrogressive to the coin’s future growth plans.

  • Make sure there are no loopholes which hackers or scammers can manipulate.

Once investors start losing trust in an alt coin, it will quickly become worthless.

b. Get Familiar with the Different Cryptocurrency Exchanges or Wallets

How frequently you plan to trade your crypto investment and how much money you’re willing to invest will often dictate which exchange or online wallet you end up settling on.

As the blockchain technology becomes more mainstream, chances are we’ll also start seeing new and more advanced platforms popping up.

c. Create Rapport with Peers

Cryptocurrencies have a tendency to experience exponential growth when there’s a strong community backing them.

Find a strong online community like cryptocompare where you can discuss recent developments in the crypto space and how to make the most out of your investment.

You might be surprised by the number of crypto-enthusiasts out there sharing your views and looking for like-minded investors to connect with.

Conclusion

Hopefully, the strategies we’ve covered here will help you navigate through all the “noise” and promise surrounding cryptocurrency investment.

Also, be on the lookout for those self-proclaimed experts in crypto and pesky scammers as well.

These are just guys trying to leverage the excitement we’re seeing in an attempt to profit.

That pretty much sums it up.

Feel free to share with us your thoughts, future predictions, and questions about cryptocurrency investment in the comment box below.

What Is Cryptocurrency and How Can You Make Money with Cryptocurrency Investment?

Have you ever wondered about cryptocurrency investment strategies?

If not, then it is the time that you should.

Money is an important thing in the world.

While it is not something that you can directly consume, it acts as the medium that people use to get what they need.

Every day, money is exchanged between buyers and sellers.

This is in order for a person to have what he wants.

Money can buy every material thing.

From food to shelter and clothing, money is used every single day.

With the advancements in the internet, purchasing products online are now possible.

Users can simply link their credit cards to an online site.

They can then use this to get whatever product or service they want.

In seconds, transactions are made.

For a lot of people, this has been a great advancement.

Especially if you have a busy and hectic schedule.

Online transactions have truly made things easier.

You can get whatever you want through your computers or smartphones.

But have you ever heard of cryptocurrency?

In the recent years, this term has been gaining more popularity in the digital world.

In 2017, cryptocurrency has boomed even more.

Because of this, even the news media and governments pay attention to it.

What Is Cryptocurrency?

Different Cryptocurrencies

In simple words, cryptocurrencies are virtual currencies.

There have been numerous attempts since the nineties to create a digital currency.

However, these attempts failed for various reasons.

Most common reasons are fraud, company issues, and financial problems.

It was only in 2008 when a person under the alias Satoshi Nakamoto introduced Bitcoin.

He was able to create a digital currency successfully.

Bitcoin is a ‘peer-to-peer electronic cash system’.

Unlike the first attempts at creating digital currency, Bitcoin was able to continue running up to present.

The main reason is that there is no single authority that controls everything.

This process is “decentralization”.

Every user is responsible for everything that is happening.

In essence, Bitcoin sharing is like sharing files in between peers.

Cryptocurrencies are created through the process called “mining”.

Mining involves powerful computers to solve algorithms and numbers.

Currently, for Bitcoins, they are solved and created at the rate of 25 coins every 10 minutes.

The number of Bitcoins will reach its cap at 21 million which is expected to be reached by 2140.

During this time, it is expected that all algorithms would have been solved.

What Can Cryptocurrencies Do?

When cryptocurrencies started, there was not much it could do.

Online merchants and sellers seldom accept cryptocurrency as a medium of payment.

Nowadays, however, cryptocurrencies has become widely accepted.

For example, the Apple store has authorized at least 10 types of different cryptocurrencies.

You can use these cryptocurrencies to purchase anything from the Apple App Store.

In some countries, cryptocurrencies can even be used to make offline purchases.

You can use them as payment in bars, restaurants, hotels, etc.

There are even marketplaces like OpenBazaar that exclusively accepts only cryptocurrencies.

It can be seen that from 2009, this medium of payment has become widely used and accepted.

Should You Engage in Cryptocurrency Investment?

A lot of individuals believe that cryptocurrencies are the newest investment opportunity.

If you watch the news, cryptocurrencies made the headlines of news channels.

This is because of the high value that they have.

There have been numerous stories of individuals becoming millionaires just by investing in cryptocurrency.

Currently, Bitcoin is still the most popular cryptocurrency all over the world.

It had the value of about $800 per bitcoin at the beginning of 2017.

This value spiked to $7,000 by early November of the same year and continues to spike.

The second most popular cryptocurrency, called Ethereum, has also received a fast increase in value.

Accordingly, Ethereum had a 2,700 percent increase from its past value in 2016.

If you have been asking yourself whether you should join in on the bandwagon of engaging in cryptocurrency investment, there are a few things you must know.

People from various countries have started investing in cryptocurrency for investment.

They see this as a way of protecting their assets from the continuing devaluation of their currencies.

Businesses and companies have also realized the importance of cryptocurrency.

They understood that having a cryptocurrency investment will give them an edge.

As an individual, you should realize beforehand that this is not a normal type of investment.

It is not something that you can have on paper.

When you lose your investment, you cannot get it back.

  • Cryptocurrencies Can Be Outlawed

Cryptocurrencies are not regulated by a central authority like the government or a bank.

Because of this, governments can easily outlaw them.

In this case, it will be difficult to use cryptocurrencies in your country.

Furthermore, the value of cryptocurrencies will also decrease.

Countries like Bangladesh, China, Bolivia, Kyrgyzstan, Nepal, Morocco, and Ecuador have banned using digital currency.

A country that bans a cryptocurrency means you cannot use it for any type of transaction.

Recently, the governments of Russia and Korea are also considering banning cryptocurrency.

  • Cryptocurrencies Can Be Stolen

While cryptocurrency uses cryptography or encryption, it is still susceptible to hacking.

There are numerous instances of cryptocurrency owners whose coins are stolen.

Once cryptocurrencies are stolen, there are no chances of getting them back.

  • Cryptocurrencies Are Unstable

With cryptocurrencies, you will never have the assurance and stability.

The value of coins that you have in your wallet will always change.

One day it can have a high value, but it can go down to zero the next day.

The value of cryptocurrencies is wholly dependent on the amount that investors are willing to pay.

Because of this, you should never invest a huge portion of your money or your savings on cryptocurrency.

Doing so can lead to losing all your money once the value goes down to zero: Is Bitcoin Mining Profitable or It Is Wasting of Time and Money?

What Are the Cryptocurrency Investment Strategies?

If you want to invest your money in digital currency, you should know various cryptocurrency investment strategies.

This can prevent you from losing all your digital currency investments and going bankrupt.

As we have said, the fluctuation of cryptocurrency is faster than regular currency.

A coin that is worth $100 can increase to $1000 in a few days.

In the same manner, it can crash down to having a value of a dollar the following day.

It is then important that an investor is aware of the risks with cryptocurrency investment.

Cryptocurrency is like a game where you can either win or lose.

1) Learn Everything About Cryptocurrency

The first and most important cryptocurrency investment strategy starts with education.

You cannot expect to join the world of cryptocurrencies without understanding anything about it.

It may be tempting to just go ahead and invest.

This is true especially if you have the money to purchase coins.

But not knowing about this type of market will only lead to losing thousands of money.

Learn about cryptocurrency, how trades and investment work, and the purpose of digital currency.

Since you will be buying coins with real money, you should understand the risks of investing.

You should understand as well as what you can do to avoid losing your investment.

There are millions of forums and articles explaining everything you need to learn about cryptocurrencies.

Take the time to read them and understand how they work fully.

If you know someone who has been investing in cryptocurrency for some time, seek advice from him.

He will be able to explain things to you and show you what to do.

If you are unable to understand the basics of cryptocurrency, you should avoid investing in this market altogether.

2) Invest Only in What You Can Afford to Lose

The first cryptocurrency strategy that you should understand is that you should only invest the amount you are willing to lose.

Since investing in cryptocurrency is very much like gambling, you won’t know what will happen.

You can either win or lose everything.

Steep crashes in cryptocurrency have happened before.

As such, there is no assurance that it won’t happen again.

Given this, you should never invest all your saving in cryptocurrency.

You should start out by investing a small amount then gradually increase.

Never place all your savings on investing in cryptocurrency.

3) Research the Cryptocurrency You Will Be Investing In

There are thousands of cryptocurrencies that people can use currently.

With this, it is easy to become a victim of a scam.

There are hundreds of crypto projects that only have the aim to deceive investors.

A beginner can easily buy coins from a crypto project and end up losing all his investment.

To prevent this, it is important that you choose the right cryptocurrency.

It can be tempting to invest in cheap coins.

One may easily think that the value will increase after some time.

However, new cryptocurrencies that have not been around for long tend to lose value easier.

To prevent this, research about coins that have good track records.

Make sure that they have lasted for at least a year and have a good number of users.

Reviews of cryptocurrencies are available everywhere online.

You must always take the time to read them.

4) Buy Low Then Sell High

For this cryptocurrency strategy, one must have extreme patience.

The key to this is simple, buy coins when their prices are down or at their lowest.

Wait for a time when the value of the coin has increased.

When it has,  use this to trade or sell your coins.

This strategy may sound simple.

But you have to know that values can take some time to increase.

You cannot expect to have your purchased coin increase its value in a few days.

Most successful investors have had their coins stored for a period of time.

They wait for it patiently to increase its value as more individuals are willing to invest.

5) Don’t Try Day-Trading

In line with holding your investment, you should stop yourself from day trading.

This means trading a number of your coins within just a number of days.

You should be patient and learn to hold your investment in your wallet.

Wait until the value has significantly increased.

While it may be enticing to trade coins on a daily basis, doing so will only make you lose your money.

No matter how the value of coins increase or decrease in a  single day, you should learn to leave it be.

Stop yourself from constantly watching your coins and investment.

6) Have a Secure Wallet

When you buy coins or exchange them, it is never safe to keep them there.

Keeping your coins on an exchange site is very susceptible to hacking.

Make sure that you have the right device to keep your coins safe while waiting for the value to increase.

The best way to do this is by getting a cryptocurrency hardware wallet.

You can have this as an addition to your online wallet.

Hardware wallets keep your coins and your keys safe.

This keeps them secure to prevent hackers from accessing them.

The reason behind this is that you can store your cryptocurrency offline.

7) Track Your Coins

Since you will be investing your money into cryptocurrency, you should know how to track.

An important cryptocurrency investment strategy is knowing how your coins are doing.

You should have a software or site that will let you keep track of all the trades and investment that you contact.

Sites like CryptoCompare will let you easily monitor your trades.

Doing so will let you easily account your investments and transactions.

8) Never Buy or Sell Based on Your Emotions

For first-time cryptocurrency investors, the constant changes in the values of coins can easily affect you.

Watching the changes in value can tempt you to buy or sell coins on impulse.

As such, never let your emotions get to you.

You should not panic and sell all your coins when you see that prices have been dropping.

Investing in cryptocurrency means you are willing to wait for long-term results.

The right cryptocurrency investment strategy is to wait for the price to drop.

When this happens, you should buy more.

You should never risk selling when prices are low.

Simply put, if you cannot manage your emotions with this type of fluctuating market, you should not invest at all.

Being emotional in investments is a sure way of losing money in a matter of days.

9) Have a Diverse Portfolio

If you are really keen on investing in cryptocurrency, you should have a diverse portfolio.

This means you should not invest in a single place.

While it seems right to invest everything in the most valuable cryptocurrency like Bitcoin, doing so can be very risky.

As we have said multiple times, the value of one cryptocurrency can change drastically.

If you place all your investments in a single cryptocurrency, you can lose all of your money when it goes down.

To prevent this, diversify your portfolio by investing in various types of cryptocurrency.

Take note that you should not go ahead and invest in ALL the cryptocurrencies.

It is important to be picky when investing.

The right cryptocurrency investment strategies entail that you invest on the right ones.

This means you should only invest on those listed on the Top 10.

Doing this strategy will lower your risk of losing your investment.

When one cryptocurrency loses value, you won’t risk all your investments.

There is also the chance that when one goes down, another will go up.

In this manner, you will always have coins that have a high value.

10) Join Cryptocurrency Forums

Joining cryptocurrency forums is one way you can keep watch over what’s happening in the cryptocurrency market.

You cannot simply invest and not know what is happening in this market.

Cryptocurrency forums will let you see new projects.

You will also see how other users are faring with their own investments.

If you have been wondering why coins are staying low for some time, you should browse online forums.

It is most probable that these topics are already being tackled in them.

Doing so will help you understand things better.

You will also have a better peace of mind on what to do.

Use a two-factor authentication

If you think that having a password to any of your online accounts already provides you security, then you’re wrong.

Passwords can be easily hacked especially if you open your accounts across multiple devices.

To prevent hackers from accessing your accounts, use a two-factor authentication.

This type of authentication provides double protection from hacking.

Two-factor authentication involves entering the first password like you always do.

After this, you will enter the second one.

The second password is given to you by authenticators like the “Google Authenticator”.

The codes that you receive changes every 30 seconds.

This means that no two codes will be given to you whenever you log in.

In this manner, hackers cannot easily access your cryptocurrency wallet.

The only way they will be able to do so is if they manage to steal or access your phone.

Should You Invest in Cryptocurrency?

This article has been saying from the start that investing in cryptocurrency is a  risky matter.

It is not something for someone who makes drastic decisions.

Cryptocurrency investment is not for someone who does not have the patience to wait.

The cryptocurrency investment strategies above serve as a  guide that beginners can use and apply.

Following each strategy will increase the chances of a new investor to increase the value of his investment.

You need to prepare yourself to face the risks and changes in cryptocurrency.

If not, you better stay clear of this market than risk losing valuable money.

Cryptocurrency as an investment is something that can either make you gain or lose money.

It is important that you understand everything before jumping in.

Is Bitcoin Mining Profitable or It Is Wasting of Time and Money?

Maybe you’ve already heard a lot about bitcoin mining.

But you are curious to know is bitcoin mining profitable or not.

Some people say it is so profitable and it’s already made so many people millionaires.

Well, it is true that it’s already made so many millionaires.

But it doesn’t mean that it can make the others millionaires too.

And, it doesn’t mean that you can make a fortune through it if you don’t know what bitcoin is and how bitcoin mining works.

Therefore, before I answer this question that whether bitcoin mining is profitable or not, first I am explaining what bitcoin mining is exactly.

What Is Bitcoin?

Some people say that bitcoin will become the global currency and it will become the easiest way to make the payments worldwide.

Some others say that they have become millionaires through bitcoin mining from their homes.

Is it really that easy to do bitcoin mining from home and to become a millionaire?

If bitcoin is a digital (not physical) money, then how can you “mine” it from home?

Does it mean that you create or produce bitcoin?

Well, indeed bitcoin mining is not as easy as what most people claim.

If I explain what bitcoin mining is and how it has to be done, then it will be easy to guess whether it is profitable or not.

This is what you are here to find out.

You are here to find out whether bitcoin mining is profitable or not.

Most probably because you want to start a bitcoin mining business, and so you want to know whether it is profitable or not.

It is the right time to focus on this subject, because the bitcoin’s price has moved dramatically up.

It is possible that it keeps on going up, but it is also possible that it collapses at anytime.

The Bitcoin Increasing Price

Every year, banks spend billions to facilitate the money transfers and transactions.

Therefore, they have to charge fees when they wire or transfer money.

However, this is completely different in bitcoin.

Indeed, with bitcoin, the charges and profits are calculated and processed when each unit or block of bitcoin becomes produced.

Bitcoin miners make a lot less profit compared to the banks.

Above all, bitcoin mining is hard and needs expensive equipments, computers and lots of electricity.

What Is the Difference of Bitcoin and Regular Money?

The main difference is that governments are behind the regular money, but they have no control on bitcoin.

They print the money and give it to the central banks.

And, it is the centrals banks that manage and control the regular money and its value.

They can easily higher or lower the value of the regular money by changing the interest rate.

However, there is no bank or even a regulator organization behind bitcoin.

Bitcoin miners produce bitcoin with the computers and inject it to the bitcoin system.

There is no printed money in this case.

Therefore, bitcoin is accessible only through the computer and Internet.

Anybody can produce bitcoin from anywhere in the world.

Therefore, bitcoin has no owner, nor is there any bank that controls the bitcoin’s value and its distribution.

Bitcoin miners produce bitcoin and deposit it in their accounts.

They can transfer the produced bitcoin to anybody who also has a bitcoin depositing account.

But…

What Is Bitcoin Exactly?

Bitcoin is a fully-digital currency.

By “fully-digital” I mean you don’t see any printed form of this currency.

The other currencies like US dollar or Euro, can be transferred electronically while there is the printed form for each unit that becomes transferred.

At the same time, there is a central bank behind them who is able to control the value of these currencies.

But, there is no printed form of Bitcoin, nor is there any bank who controls its value.

It is completely digital and can only be transferred electronically and through the Internet.

Therefore, you can’t withdraw any cash from your bitcoin account.

You can only save your bitcoins in your online account.

Of course you can buy and sell bitcoins against the other currencies like US dollar.

The good thing with bitcoin is that you don’t pay any fees when you send or receive bitcoin.

The Bitcoin’s Value

There is no bank behind bitcoin that wants to charge you for the services it offers.

It is strange, isn’t it?

As this currency is still so new, there is a very limited number of merchants who accept it.

It means you can’t buy anything you want with bitcoin.

They say a so-called mathematician, Satoshi Nakamoto, has invented bitcoin.

However, nobody knows who this person is really and whether he is a real person or not.

Most people say there is no such a person.

Therefore, nobody knows who’s the bitcoin inventor really.

By the way, bitcoin started working in 2009 officially.

The value of bitcoin goes up and down based on supply and demand.

Therefore, when those who produce and accumulate bitcoin, start selling it at the same time, the value collapses.

It means the bitcoin’s value depends on fear and greed.

Nowadays, the bitcoin miners greed in producing and accumulating of bitcoin to make more profit, has increased its value dramatically.

However, when something happens and fear takes the control, they will start selling their bitcoins, and so the price will collapse.

What Is Bitcoin Mining?

Bitcoin mining is the process of solving some special mathematics problems and getting rewarded with one bitcoin once each problem is solved.

The above sentence is almost all people like you and me can understand from bitcoin mining.

There are so many unanswered questions about this process:

  1. What kind of math problems have to be solved to produce bitcoin?
  2. What is the advantage of solving these math problems?
  3. Who creates these math problems?
  4. Where does the value of bitcoin come from?

And… so many other questions that have no answer.

Even those who have made millions through bitcoin mining, can’t answer the above questions.

A precious metal like gold, which is tangible, has a value that can be paid and bought by a currency like US dollar which is also backed by precious things like gold as well.

Therefore, when you pay US dollar to buy gold, indeed you are giving the paper form of gold to buy the real form of gold.

Everybody can understand this very easily.

But what about bitcoin?

There is nothing that you can understand about bitcoin.

It is all mystery and confusion.

How Can You Solve the Math Problems and Receive Bitcoin Rewards?

You can’t do it with pen and paper.

Computers can only do it.

Here is where the problem comes.

Bitcoin mining needs strong and fast computers.

The reason is that the more bitcoin becomes produced, the longer the process of bitcoin mining will become.

You could easily produce bitcoins with your desk computer when bitcoin was introduced to public in 2009.

But it is now far beyond the ability of a desk computer to do it.

Indeed, you need a big network of strong and fast computers that are specially designed for bitcoin mining, to produce a reasonable number of bitcoins every day.

You need a huge space for these computers.

They utilize a huge amount of electricity and produce a lot of heat.

Therefore, not only bitcoin mining is not free, but also it is too expensive now.

You have to be able to afford the equipments, as well as the space, electricity and the Internet connection.

The number of the bitcoins you can produce every day, depends on the number of the strong computers you use.

The higher number of the strong computers, the higher the number of the produced bitcoins, and so more profit.

However, as I mentioned above, it becomes longer and longer to produce bitcoin.

Therefore, the amount of the profit you make goes lower every day, unless you add more computers.

Now that you know what bitcoin and bitcoin mining is, I can tell you whether bitcoin mining is profitable or not.

Bitcoin Mining Equipments

Is Bitcoin Mining Profitable Now?

Bitcoin mining was so profitable when people started mining the bitcoin back in 2008 and a few years after.

Those who were on time enough, started mining and accumulating bitcoins.

Therefore, the bitcoin value went higher and higher and it became harder and more time and energy consuming to mine bitcoin.

This simply means that the bitcoin mining profit goes lower as the time goes on.

It also becomes more expensive to start a bitcoin mining business.

The only way of making profit through bitcoin is buying it from the bitcoin miners and holders.

It means you have to pay the currencies like US dollar or Euro to buy bitcoin.

Then you have to hold your bitcoin and wait for its value to go higher.

If so, you can sell your bitcoin and make some profit.

Now the question is whether it is the right time to buy bitcoin now that the bitcoin price is so high?

Will the Bitcoin Price Go Higher?

The answer is, it can go much higher than what it currently is.

Nobody knows how higher it will go.

But what I do know is that this market will collapse sooner than later.

I don’t know when and at what price, but I do know that the bitcoin market will crash finally.

Therefore, buying and holding bitcoin is all the matter of taking risks.

It is like buying and holding the other things like stocks, currencies and real estate properties.

But in case of bitcoin, the problem is, it looks riskier and less protected.

Therefore, it is only your excessive greed that can push you to buy bitcoin.

I will never do it, simply because there are much better and safer ways to invest and make profit.

Also I won’t invest my time and money on running a bitcoin mining center.

The reason is that it is a lot of work and needs a lot of time to maintain the system and keep it up and running.

Also, as I explained above, the profit of bitcoin mining goes lower and lower every day.

To maintain the same amount of profit, you have to make your computers network bigger.

Update – 6th February 2018:

The Bitcoin market that went as high as $19,343.04, finally collapsed and is now at $7,370.95:

The Bitcoin Market Crash

What Is the Advantage of Bitcoin?

There is always a question here:

Does bitcoin mining have any other advantages for people like you and me, other than making some profit for the bitcoin miners?

Definitely not.

Producing bitcoin and making profit through it, looks like the most ridiculous businesses one can ever have.

Who needs bitcoin?

Nobody.

We won’t have any problems without bitcoin.

Bitcoin hasn’t come to resolve any of our problems.

It seems it was created just to make some people rich for doing nothing.

If it has come to enable everybody to pay online and electronically, we are already doing it.

I mean we send and receive money electronically without having to have bitcoin.

So, bitcoin looks useless.

But the question is what is really the point of inventing and introducing of bitcoin?

Is Bitcoin a Scam?

There are so many who believe that bitcoin is scam, because of the reasons I explained above.

Nobody knows what bitcoin is exactly.

It is not something necessary and it is not clear why it has an increasing value.

There are only some people who are making money with it.

They produce something useless and sell it to people who believe bitcoin is going to be the world’s future currency.

Who takes the advantage of the bitcoin’s value crash?

Those who’ve been mining bitcoin and selling it to others, have already made a lot of profit.

They’ve already converted millions or even billions of their bitcoins to the regular currencies like USD.

Those who buy and hold bitcoin will lose a lot if the bitcoin market crashes.

That is why some people say that bitcoin looks like a Ponzi or Pyramid scheme.

In a Ponzi or Pyramid scheme, only those who are at the top, will make money.

The others only lose.

Even when the market crashes, only those who are at the lower levels will lose a lot.

Those who are at the top, have already made their profit.

There are some differences between bitcoin and Ponzi or Pyramid schemes.

Therefore, I can’t say bitcoin is a typical Ponzi scheme.

But I can say that it is the modern form of the traditional Ponzi scheme.

For some people, it is a new way of making money from something that is useless.

It is selling thin air to get real cash.

Therefore, it is a scam and it can’t be profitable for the public.

Bitcoin mining is risky for the majority and profitable only for a very low percentage who are strong bitcoin miners.

Bitcoin Mining Side Scams

While it seems bitcoin is a scam itself and bitcoin mining isn’t profitable for the public, there are some other scams who make the most of this opportunity.

Bitcoin mining is a great opportunity for some people to sell the bitcoin mining computers and equipments and make a lot of money.

The question is, if bitcoin mining is really profitable, then why don’t these people do it themselves to make profit, and they sell bitcoin mining equipments instead?

The answer is, there is more profit in selling bitcoin mining equipments than doing bitcoin mining.

You have to spend thousands of dollars to buy the bitcoin mining computers when you want to start a bitcoin mining business.

This is an instant profit for the sellers.

But it can take you a long time to recover the money you’ve spent to buy the bitcoin mining computers.

As it becomes harder and takes longer to produce bitcoin as the time goes on, you will have to buy more and more computers.

Is bitcoin mining profitable under such a condition?

I don’t think so.

Are You Really After Making Profit with Bitcoin Mining?

I know that you want to make profit through bitcoin mining.

However, as I explained above in details, it is not worth to start a bitcoin mining business now.

You have to spend a lot of time and money to run a bitcoin mining center which is strong enough to produce bitcoins reasonably.

There is no doubt that you won’t make any profit for such a long time.

The system has to work nonstop to recover the money you’ve spent to buy the equipments, rent or buy the space they need, and the electricity and internet they utilize.

If the bitcoin market crashes while you are still trying to recover the money you’ve spent, then the business will be a total loss.

Therefore, if you ask is bitcoin mining profitable or not, I have to answer not for you and not now.

It is profitable only for those who’ve started it such a long time ago.

Is There Any Other Options to Make Profit or Become Rich?

Now my question from you is that do you really have to do bitcoin mining if you are after making profit or getting rich?

If you’ve answered yes, then the good news is that there are much better, more profitable and less risky ways to make profit and get rich.

You don’t have to do it through an unknown way that looks like a scam while it is risky, expensive and has no clear future.

You can join our fully-automated high-ticket affiliate system.

It is much more profitable than bitcoin mining.

It is too hard and time-consuming to start making profit with bitcoin.

Still it is not clear whether you will make profit with bitcoin mining finally or not.

I’ve explained my reasons above.

However, our high-ticket affiliate system is so profitable.

It makes much more profit and it is much easier to become profitable with it.

Indeed, you will become profitable almost instantly and once we set up the business for you.

At the same time, our affiliate system is not too expensive to start.

It doesn’t need any physical space to set up any hardware or computer network.

You won’t have to pay a lot of money for the electricity.

So, our affiliate system is not risky at all.

You will join a fully-automated system which is already set up, active and up and running.

It is fully-automated, because you don’t even have to create any website or do any marketing and generate any sales.

They system does everything for you.

It may look too good to be true.

However, our system is designed like this.

All you have to do is joining the program and licensing the products.

You will hire the system and it makes money for you automatically.

Unlike bitcoin that not only can’t be profitable anymore, but also looks like a scam (I’ve already explained why), our affiliate system is fully legitimate and legal.

Update – 6th February 2018:

On December 2nd, we published an article on bitcoin mining and whether it was still profitable or not (the above article.)

At that time, the Bitcoin price was going up like crazy and was $8,075.02.

However, in the same article, we explained that the Bitcoin price could go much higher, but it would crash finally:

“Will the Bitcoin Price Go Higher?

The answer is, it can go much higher than what it currently is.
Nobody knows how higher it will go.

But what I do know is that this market will collapse sooner than later.

I don’t know when and at what price, but I do know that the bitcoin market will crash finally.”

Indeed, Bitcoin did exactly as what we predicted: It went as high as $19,343.04 but then it collapsed and now it is $7,370.95:
The Bitcoin Market Crash

While it was going up, some people were buying it like crazy. That’s why it was going up like crazy. But, once “fear” took the control, everybody started selling, and so, the price collapsed and is still going down.

Imagine those who bought it when it was $18-19,000…

If you had bought only 100 Bitcoins at for $18,500 which is $1,850,000 in total, now its value would be $737,095 which means a $1,112,905 loss:

$1,850,000 – $737,095 = $1,112,905

This is how those who want to get rich fast and even many of those who want to make a living, will lose their shirts.

This is NOT the right way of making a fortune or even making some money just for the purpose of having an extra or passive income.

Making money and building wealth and financial freedom has a different way.

If you are really serious about becoming rich and successful, you have to forget about the stupid ways of making money that are 100% based on luck and chance.

You have to follow the way that the real and successful people like Warren Buffett follow.

This is clearly explained in our Wealth Building Strategy:

It is also explained in our eBook in details. You can download it here.

Click Here to learn more about our Wealth Building Strategy.