A guide to Ripple - cryptocurrency

A guide to Ripple - cryptocurrency

Ripple has recently been getting quite popular in the media and the cryptocurrency space. Ripple is a cryptocurrency, which means digital currency. It is however, quite different from other cryptocurrencies in various ways. It is more like a protocol, rather than a currency. It allows financial institutions like banks, to transfer money between different countries in a matter of a few minutes. Not only does it allow the transfer of funds between branches of a bank, but also within different banks. This helps to reduce the time it takes in the standard money transferring process.

Consequently, it opens up new opportunities for the banking sector as well as for the entire financial industry. For this protocol, the cryptocurrency is known as XRP. The fees and the processing charges of this cryptocurrency are also very low. It is quite different from how Bitcoin works. Bitcoin is only a cryptocurrency which is based on the technology known as blockchain. Ripple, on the other hand, is more of a protocol also based on the blockchain technology and its cryptocurrency is known as XRP.

Ripple is a privately owned company, and their main aim is to enable a global network of banks and financial institutions, and they call this worldwide network which is using this software the ‘Internet of Value.’

It was founded in 2012 and as such, it is one of the oldest cryptocurrency-based technology company. It was released by Ripple Labs Inc by Chris Larson and Jed McCaleb.

Banks have already taken a liking to Ripple, and even payment providers are coming on board due to the future prospects of Ripple cryptocurrency. It can be used person to person as well as for an enterprise as the primary purpose of Ripple is to move money around the world as rapidly as possible. 

How to buy Ripple

Many people are now considering buying cryptocurrencies since they are touching all-time high values. There are many other useful aspects of these digital currencies as well. The Ripple currency, known as the XRP, is not mined like the rest of the cryptocurrencies but it is owned and released periodically by the Ripple Labs. Mentioned below is a quick guide for a first-time user to buy Ripple with US Dollars and with other cryptocurrencies, as well as through peer-to-peer networks. 

Where to buy Ripple

In order to buy Ripple, you would, of course, need a Ripple wallet first, where it can be stored. Then you need to know which cryptocurrency exchange the XRP can be bought from. You can buy Ripple from Kraken, Bitstamp, Bitsane, Cex.io, Gatehub, Exmo and Bitfinex.

How to buy Ripple on Bitstamp Exchange

First, you must create an account on the Bitstamp exchange. For this, you would need to fill out a registration form where you need to provide personal details. The details required would be your name, e-mail address, and country. Then you would be sent an e-mail offering you with a user id and a password. You need to then go to the website and log in. You must, however, remember to change your password as soon as you sign in.

Then you verify your account where you will be asked for more personal details, such as an ID document or a proof of residence like a bank account statement, a copy of a utility bill or a certificate which may be issued by the government.

As soon as your account details are verified, you would be able to deposit funds. You can do that through a bank transfer, by entering your bank account details in the ‘deposit’ section. You can then deposit funds from a bank account which is in your name. As soon as your Bitstamp account is credited with the amount, you would receive a notification.

In order to buy Ripple XRP on Bitstamp, you would need to select the correct market, for example, XRP to USD and select ‘buy XRP.’ Then you need to mention how much you want to spend. This completes the transaction, after which you can check how much XRP has been added to your balance.

Bitstamp exchange, like many other cryptocurrency exchanges, will allow you to purchase Ripple with credit or debit card and also through an international bank transfer. Other exchanges, like Kraken, which also sells Ripple XRP, only accept wire transfers while the buying method is similar.

How to buy Ripple with Bitcoin, Ethereum and other Altcoins

You can also buy XRP with the use of other cryptocurrencies as well. For this too, you would need a cryptocurrency wallet. You can buy the altcoins from different exchanges such as Coinbase and others which sells Bitcoin or Ethereum. You can send the cryptocurrency from the exchange to your wallet where you store your digital currency. Various cryptocurrency exchanges such as Poloniex, Bittrex, and Changelly allows the users to change their Ripple XRP with other cryptocurrencies (not with USD though).

With a similar process as mentioned above, you can create your account and then deposit your cryptocurrency and then go ahead and purchase Ripple XRP with it. You can then withdraw your XRP into your wallet.

How to buy Ripple peer-to-peer

If you do not want to buy the cryptocurrency through currency exchanges, then you have the option of buying it through peer to peer (P2P). Most of the P2P exchanges are run by software which connects the buyers and sellers automatically without any human intervention. There are of course not many options to buy XRP in direct trade even though there are many options to buy Bitcoin and other cryptocurrencies. The P2P exchanges, however, do not store the money for the user. Instead, they merely connect one user to a peer to buy or sell. In this way, they are quite safer as compared to the regular cryptocurrency exchanges as you will not ‘lose’ your money, and neither will they charge additional fees. However, if you do get scammed by a peer, there would not be anyone to intercede for you. There are however a few rules in place in the P2P exchanges, to avoid fraud.

Why are there so few direct ways to buy Ripple (XRP)?

There are only a few exchanges which are selling XRP to USD directly or Ripple to USD. Ripple is still quite small in comparison to other cryptocurrencies like Bitcoin or Ethereum and neither does it target the same market. It is merely a platform that offers an inexpensive and speedy system of settlement to significant financial service companies. It is like a protocol which enhances the global financial system and does not aim to make people independent from it. Ripple XRP is not an open source and decentralized blockchain cryptocurrency, and as such, most people are not sure whether it will reach the level of popularity as Bitcoin and other altcoins. As such, those exchanges which are willing to offer Ripple XRP for sale are quite a few. So users can change XRP to USD and also make Ripple to USD exchanges, but the options are limited.

Ripple Wallet

When you do buy Ripple XRP, you may wonder where you would store them. In that case, you would need to get a Ripple wallet or an XRP wallet. Even though the Bitcoin wallets are free, the XRP wallets are not. A user is required to have at least 20 XRP for booking their wallet address. This is why it is essential to have the right wallet and not spend 20 XRP on multiple Ripple wallets. There are plenty of options to choose from when getting a Ripple wallet for yourself. Many cryptocurrency exchanges do offer to let the user store their currency on the exchange itself, but it is not recommended as your coins would be the property of the exchange.

Software XRP Wallets

Currently, the most common way of storing cryptocurrency is by using a software wallet. The software wallets are available in different shapes and forms. There are online wallets, which can be accessed from almost any device. These are not very safe as it stores your private keys online and it can be subject to a cyber-attack. There are also many applications available for mobile devices, and computers which are running on different operating systems, browser extensions and more. For the safety of the cryptocurrency, it is advisable to use software wallets which only store your private key offline and on the particular device which you are using currently.

Mobile XRP Wallets

Mobile wallets are apps which can be used on smart phones. There are of course a large variety of such apps to choose from, and one must be very careful due to security reasons. As such, only those apps are recommended which store your private key exclusively on the device on which your app is installed on. The app should not be storing your private key on some server online. This also means it is better to avoid using the mobile wallet apps which are associated with exchanges.

Desktop / Web Wallets

The desktop wallets are apps which can be downloaded on your desktop computer. Many companies have both desktops as well as mobile versions of their wallets where you have the option to sync both. Online wallets are sometimes referred to as web wallets as well, and these are websites. It also includes the wallet services which are offered by exchanges, and they are not a very secure form of storing your cryptocurrencies. If you do decide to use this form of wallet for storing your XRP Ripple, then you must know that your private key will be stored on the company's server. This means that you are not in control of your wallet or your Ripple XRP currency.

Some of the best wallets for storing Ripple XRP

  • Rippex

This can be used on the operating system like Mac, Linux, and Windows. The operational costs include 0.3% of your Ripple/brl or 0.2% in case it is Ripple/BTC or 0.2% of Ripple/LTC.

  • Exarpy

This is yet another Ripple wallet which can be used on any web browser. The operational cost is 0.025 XRP per transaction.

  • CoinPayments

This is another Ripple wallet which can be used on any web browser. The operational cost is 0.5% flat.

  • Cryptonator

This XRP wallet for your Ripple currency can be used from any web browser from a laptop, desktop or mobile device. The operational cost of using this XRP wallet is 0.10000000 XRP for sending money.

Hardware XRP Wallets

The hardware Ripple wallets are compact and tamper proof USB devices which are specially made to store the cryptocurrency online. They are able to generate the private keys as well as digital signatures offline and on the device itself, which makes them immune to hacking. Many versions of the hardware wallets have security grid cards, and the modern ones have a screen where you can double check and sign for your transactions as well. There is also added security known as the recovery phase, where you can restore your XRP currency even if the wallet gets lost, stolen or damaged. The best hardware wallet for Ripple XRP is Ledger Nano S, and it can be used on any operating system as well as on chrome/chromium 50+ browsers. The price of this hardware XRP wallet is 79 Euros.

Paper Wallet

When it comes to storing funds safely, paper wallets are also a good choice. Even though they are less significant due to technological advancement. These wallets are generally a piece of paper with the wallet's private and public keys which are printed out on them. The keys are usually generated offline, so hackers would not be aware of its existence. There is, however, one major disadvantage to paper wallets. They can be easily lost, damaged or misplaced by water, fire and so on. There are some steps through which you can ensure the safety of the keys. You can order a wallet with a tamper proof seal, laminate it and bury it in your garden or even put it in your safe deposit box.

The future of Ripple XRP and price prediction

The future of Ripple XRP like many other popular cryptocurrencies is a hotly debated topic. Many investors and potential investors are interested to know the Ripple price prediction and which direction it would go. One of the factors which makes this cryptocurrency secure is that it has a large community and substantial user base. Moreover, the Ripple team has proven their capability many times, and they continue to do so. Ripple may open the market rate at about $0.78, and it can reach $1.10 till the middle of 2019. Over the next year, it may have different trading platforms and investment routes such as Ethereum and Bitcoin and closing the rate to $1.20 by the end of the year. Other cryptocurrencies like Litecoin and Dash may expect fierce competition from Ripple XRP. Moreover, Ripple plans to distribute about 2 million tokens to the Indian economy in 2019.

Ripple XRP News

Ripple is mostly known for its RippleNet technology which facilitates the bank to bank and cross border payments. In the year 2019, it is expected to stretch out further to more countries and will aim at doubling the market inflows, as compared to the $2 million in 2018.

More recently, they have also announced plans about convergence into one stack. It is expected to be implemented in 2019 with institutional funds to flow in for the XRP, and its growth is expected. This will surely make Ripple stand out within the different cryptocurrencies. If such advancements do take place, then XRP price prediction is expected to be $1.20 by the end of the year 2019, and that is also a conservative figure. It may even reach $2.

Ripple XRP and SEC Regulation

There is however one uncertainty that can affect Ripple reaching $1 before 2020. It is the overarching SEC regulation. The SEC is still uncertain whether the Ripple XRP is a security or not and they have yet not provided any solid opinions. If the XRP is ruled out as a security, then this will have an adverse effect on the price. It can make the service inefficient due to an increase in the compliance and because of tax burdens which this regulation will provide.

The CEO of Ripple labs have mentioned time, and again that XRP is not a security. He claimed that if the Ripple labs even shut down, Ripple XRP will still be in circulation and will always be used without any hassles. This means that the future of XRP Ripple currency is not tied to the Ripple labs and as such, should not be considered as security.

Conclusion

So far, the Ripple has been quite stable, and they have had more than 35 million transactions processed without any problems. It is able to handle 1500 transactions per second, as compared to Bitcoin which can handle 3-5 tps and Ethereum which can handle 15 tps. Overall, Ripple cryptocurrency is well positioned as a dominant player in the industry which is expected to grow in the upcoming years and give tough competition to other cryptocurrencies.

A guide to IOTA

What is IOTA?

Iota is a German designed and high technology distributed ledger. The cryptocurrency associated with it is called MIOTA, which stands for Millions of IOTA or Mega IOTA. This cryptocurrency is designed specifically for the IoT (the internet of things) and when it comes to market capitalization, it currently has a spot in the top ten cryptocurrencies globally. As of July 8th, 2018, the total market capitalization of MIOTA was $3,158,185,693, which is based on its entire supply of 2,779,530,283 MIOTA. This is at the exchange rate of $1, 14 per coin. The peak price of iota coins reached as far as $5.24 on December 20, 2017. Iota coins are supported by all the famous and significant crypto exchanges including Binance. 

About IOTA

The IOTA project was created by David Sontesbo, Sergey Ivancheglo, Serguei Popov and Dominik Schiener in 2015. Since its launch, it has been managed by the IOTA foundation which is located in Germany. Similar to other cryptocurrency projects, the IOTA project aims to facilitate the financial system. It seeks to make the process of payments cheaper, faster and secure.

Moreover, IOTA goes one step further from the regular cryptocurrency projects and does not limit itself to financial transactions alone. Iota also allows the movement of data from one machine to another. The IOTA cryptocurrency is called MIOTA or the IOTA coins. It raised funds through an ICO, which is the initial coin offering before it was launched. This whole project received about 3,000 bitcoins in total which were worth around $434,000 at that time. Another thing which makes the iota coin different from the other digital currency is that this project does not use the blockchain technology like the rest. Instead, it uses another form of technology which is the DAG that is ‘Directed Acyclic Graph’ and is also called the ‘Tangle.’

Tangle technology

Through the use of the Tangle technology, the IOTA transactions are free. This is possible as the transactions happen peer to peer. The payment of one transaction is the confirmation of the two transactions previously. The process may seem slow, but within the network, there are thousands of transactions occurring per second. The verifications are spread over the system randomly which means one node would be verifying any two transactions from the whole network and then sending a transaction, which means that the network is completely tangled.

IOTA Mining

An interesting thing about Tangle system is that it does not use miners. For example, when it comes to bitcoins, some people volunteer their computer skills in confirming other people's transactions and are rewarded with bitcoins for using their resources. They are not involved in the transactions itself but are only confirming other people's transactions. This mechanism is called the Proof-of-Work (PoW). The main problem with this mechanism is that it gets more expensive to confirm transactions over time, because of the difficulty in mining becomes harder as more electricity and computing power is required. It eventually leads to slow and expensive transactions, and this means that the bitcoin blockchain is only able to confirm about seven transactions per second. When it comes to the IOTA network, things work differently. On this network, if anyone wants to send funds, they must also contribute to the network by confirming other people's transactions. The whole idea behind this is to have more people use the IOTA system so that it becomes more scalable. This also means that in reality, there is no limit on the number of transactions which can be processed by the network each second, making it infinitely scalable.

What is IoT?

IoT stands for the ‘Internet of Things.’ It is an upcoming technological evolution which is quite complicated but easy to understand. It provides machine to machine communication but without any human interference. This means that every object which is connected to the internet is able to communicate with each other. For example, if you get a soda out of a vending machine, paying through your phone, this transaction would be added to your daily budget app. The vending machine, on the other hand, will process the payment and decrease the amount of inventory that it holds by one soda can that is bought by you. The cost of electricity is already included in the price of the soda can, and in case the inventory levels fall below the required threshold, it would automatically send a request to the supplier to replenish the stock. Through a drone or an autonomous car, the vending machine will be restocked with the inventory as required. In this whole scenario, there is no human interaction. One problem of this IoT system is that it was a micro-transaction on the machine to machine and did not ensure efficiency and cost-effectiveness at the same time. The tangle technology and IOTA are providing a method to make all of this happen for free!

How to buy IOTA

If you are interested in investing in iota markets and buying it, then Binance and Bitfinix are your best cryptocurrency exchange options. The Bitfinex exchange has the most substantial amount of trading volume; it is not available to buy for United States citizens. So for the U.S citizens, Binance is a better option. Even though IOTA coins have the largest market capitalization, there are only a limited number of exchanges where IOTA coins can be bought. The two exchanges where you can trade significant volume of IOTA currency do not accept fiat currency (USD, EUR) as such you may not be able to find the IOTA price as iota to USD. As such, if you want to buy IOTA, you would need to first buy bitcoin or ethereum and then trade it for IOTA.

  • Bitfinex

This is based out of Hong Kong, and this exchange has one of the most significant daily trade volumes of all major cryptocurrencies. They have however discontinued serving the citizen of the United States.

  • Binance

This is a relatively new exchange. The company had successfully raised about $15 million through their ICO (initial coin offering) in just three minutes on the 3rd of July 2017. The exchange went live only two weeks later on the 14th of July. Binance has quickly built up a user base, and their name is consistently on the top 10 daily trade volume of the digital exchanges. 

How to buy IOTA on currency exchanges

If you’re buying IOTA on the cryptocurrency exchange, you first need to register an account for yourself. For this, you need to provide a username and password. You will then be sent an e-mail where you would have to verify your user id to sign up and activate your account. Once you have activated your account, you are logged in.

There are plenty of options for the user to deposit cryptocurrency into their account, but the most popular ones are bitcoin and ethereum. Once you choose, you can then deposit and send funds to the given address, and it will show up as your available balance. Once your deposit is complete, then you can exchange that cryptocurrency for IOTA cryptocurrency. For this, you have to press on the exchange button and place your order. Binance charges 0.1% fee for a trade. The amount of IOTA you get will depend on the price of IOTA coins as per the bitcoin or ethereum you had chosen to exchange for it. Once this transaction is complete, the IOTA coins show up on your exchange account as a balance. From there, you can withdraw your IOTA coins from the exchange to the wallet of your choice.

Buying iota coins in the market is quite easy; the only hassle is that you would only be able to get some if you already have either bitcoins or ethereum with you already.

How to store IOTA

When you are purchasing cryptocurrencies from a centralized exchange, you are putting your trust in someone else to take care of your funds. The most significant risk is that in case their servers get hacked, their entire database is at risk. There have been many incidents of exchanges getting hacked into where a large number of bitcoins and ethereum were stolen. There is no guarantee that the exchange will give it back to you; that is why it is essential that you move your funds to a safe wallet, which is your own. There are two options which you can consider for storing your IOTA coins, the Trinity Wallet and the official desktop GUI.

Desktop GUI

The desktop GUI is what is suggested by the IOTA team to store your currency safely. It is available on Windows, Linux and MAC devices. When you are using this wallet, you have the option to access it as a full node or a light node. A light node will suffice if you are using the wallet for storage and transactions.

Trinity Wallet

This wallet is much simpler to use as compared to the GUI. It is in Beta, which means you can encounter some bugs. No matter which device you use your wallet on, there are many options to choose from. It can be used on Mac, Windows, Linux operating systems as well as on Android and IOS devices.

IOTA wallet for android

This is a mobile iota wallet but gives you a lot of conveniences. You can download this from its official app, and it can then send, hold as well as receive your iota coins wallet to wallet. It also has a QR Scanner, iota to fiat currency exchange rate and other password tools.

Nelium IOTA Wallet

This is another iota wallet which is quite user-friendly and being developed. This would be compatible with IOS and with Android once it is released, making it a mobile-only wallet. The best part about this wallet is that it is perfect for beginners since the interface is straightforward.

Different types of wallets

Web Wallet

This type of wallet is the least secure one in the market, and it means you can have access to your coins through the internet browser. These are very convenient even though they are very risky. If you want to send somebody funds quickly, then web wallets are quite simple and easy. 

Mobile Wallet

A mobile wallet is where you hold your cryptocurrency on your mobile device. The sending and receiving of funds through this type of wallet are very convenient. Moreover, it also gives easy and instant access to your funds at all times, and you can also use the features of QR scanning. This is a barcode that your phone scans and then it can automatically convert your barcode into a unique wallet address. For example, in places like Japan where the cryptocurrency is actually accepted in real world stores, you can simply scan your phone at the checkout and the funds would be transferred directly to the vendor. However, there is a risk in case your phone gets stolen or gets a virus.

Desktop Wallet

This is slightly more secure as compared to the mobile wallet but less convenient of course. The wallet is downloaded on your laptop or your computer, and it stores your IOTA coins offline. The only time your wallet needs to be online is when you have to send the funds to somebody. Your private keys are also not held by a third party server, and only you have access to them, this also means if you misplace them, you lose your cryptocurrency forever!

Hardware wallet

The hardware wallet is almost like a real world safe for your IOTA currency which means it is held offline in a physical hardware device and only when you plug it in, is when it is connected to the server. In order to transfer funds, you would need a pin code. In case it gets stolen the hackers wouldn’t get access to your coins, and you can recover your coins through the password recovery phase. Unlike the other wallets though, this one needs to be paid for, and it is well worth the investment, especially if you own a large number of coins.

Pros of IOTA

  • The transactions are free
  • Unlimited scaling
  • It can process any data and not just financial transactions
  • It allows instant transactions to take place
  • There is no IOTA mining, and everyone contributes

Cons of IOTA

  • Not a finished product yet
  • It is unclear when the whole project will be ready
  • There should be a centralized coordinator
  • There have been quite a few technical flaws and bugs
  • Many people think it has terrible security

IOTA Price Prediction

The security issues which are mainly faced by the blockchain based cryptocurrencies is eliminated in the IOTA system. This is through the DLT, the distributed ledger technology which reduces the issues of privacy in the blockchain technology. IOTA coins have quite a lot of potential for giving high returns, and it may reach $4.20 by the end of 2019. IOTA cryptocurrency is an excellent option if someone is looking to invest in a digital currency with a promising return. Moreover, the IOTA foundation has signed an MOU with the city of Taipei where around 3 million residents will be able to have transactions of data and money with the help of their ID cards and built-in Tangle IDs. This year holds a lot of development for IOTA and as such the price is expected to rise, based on the IOTA price predictions for the coming months.

IOTA price prediction for five years

It is expected to grow exponentially in the next five years and beyond. There are going to be many upcoming projects associated with the IOTA network which is expected to take it to a higher level. By the end of 2023, the IOTA price is expected to reach $9.87, and by the year 2025 it is supposed to be around $15, and it may even create history by reaching $20 by the year 2030!

Is it safe and secure?

This project of IOTA is still in the infancy stage and has experienced a few technical issues. The coordinator protocol is centralized which means if it does not work correctly, it could put the entire network at risk which has happened already a few times. This made the IOTA system unusable for a few days. Many people are also concerned that the IOTA system can be at risk of a replay attack where hackers are able to repeat a transaction without the sender knowing about it and if they are successful, they can steal other people's coins without them finding out.

Conclusion

Globally there are about 1 billion objects which are expected to be connected to the IoT by the year 2020. For this innovation, the IOTA cryptocurrency will be aiding this change. Through the tangle technology, the IOTA team has guaranteed zero fees for transactions. The IOTA team is working all ready to tackle any issues which may arise and to have a sustainable strategy in the long run. The IoT is expected to change the world with its futuristic technology, and it has a lot of potentials to be used on a global scale. If you are however thinking of buying IOTA, it is indeed a great choice. You must, however, remember that cryptocurrencies are well known to be extremely volatile and they experience substantial fluctuations, making them speculative and risky. There are many internal as well as external factors which impact the value of the cryptocurrency as such it is essential to consider these issues before you invest.

 

A Beginner’s Guide to Bitcoin

There has been a lot of buzz around Bitcoin for the past few years all over the world. It is a new form of currency, a cryptocurrency, and is being considered as the future of money. It is used and distributed electronically.

What is Bitcoin?

Bitcoin is a digital currency that first came into existence in 2009 and is now being used all over the world. Since then, there have been many other forms of assets that have been developed in blockchain technology. Bitcoin can be explained as a peer-to-peer network in which there is no single person or institution that controls it. Bitcoins cannot be printed out in physical form and their amount is limited. Only 21 million bitcoins can ever be created.

Who Created Bitcoins?

Bitcoin was first created as an open-source software by a programmer or a group of programmers who chose to be anonymous but used the alias Satoshi Nakamoto. There have been a few rumors about the real identity of Bitcoin creators, but all those people mentioned in the rumors have publicly denied being Nakamoto. In 2010, Bitcoin came into the hands of a few prominent members and Gavin Anderson was named as the lead developer. It has been estimated that Nakamoto owns around 1 million bitcoins, which is about $3.6 billion as of September 2017.

Who Controls Bitcoins

Gavin Anderson claims that as soon as he became the lead developer, his focus was on decentralization. His main aim is for Bitcoin to continue its existence autonomously. For most people who invest in Bitcoin, the main reason is its independence from world governments, corporations and banks. No single authority can have a say or interfere in the transactions related to bitcoins, nor impose any fees or take people's money away. Moreover, the whole process of a bitcoin’s movement is quite transparent as each transaction is stored and recorded in a distributed public ledger called the blockchain.

How Does Bitcoin Work?

Bitcoins make use of the blockchain technology. Blockchain is a shared public ledger on which the bitcoin network relies upon. If there are any confirmed transactions or any newly added bitcoins, they are added into the blockchain. All transactions which the user initiates, where they send or receive the bitcoins, are verified on the blockchain network. Blockchain is public ledger which records all transactions and can be explained as a physical ledger maintained by banks. The difference, however, is that in this case it is being maintained publicly and anyone can use it to match a transaction. Bitcoin uses public key cryptography and the system uses two pieces of information in order to authenticate messages.

The digital records of the transactions on the blockchain ledger are combined into blocks. So if anyone tries to change a single number or a letter in the block of transactions, it ends up affecting the rest of the blocks. Since it is a public ledger, any mistake or any attempt at fraud can be spotted easily and corrected by anyone. The users have wallets where they store their currency and the wallet can verify the validity of each transaction. The digital signatures help to protect the authenticity of each transaction that corresponds to the sending addresses. Due to the verification process, and depending on the platform where they are trading, the bitcoin transactions may take a few minutes to be completed. The bitcoin protocol is designed in such a way that it takes around 10 minutes for each block to mine (or store).

How to Get Bitcoins?

Bitcoins are available at many different cryptocurrency exchanges and can even be bought directly from people through the marketplace. Bitcoins can be paid for in cash, debit card transfers, credit cards or with other currencies as well. For this, a user would need a bitcoin wallet.

How to Mine Bitcoins?

Even though the term "mining" may suggest the coins being dug out from the ground, in reality, bitcoin isn’t a physical asset. A bitcoin exists in the protocol's design and have not been brought out physically in the market yet. As per the protocol, there are 21 million bitcoins and the miners bring out the bitcoins in the "light" a few at a time. The miners get the bitcoins as a reward for creating blocks of transactions which are validated and then included in the blockchain.

Bitcoin Mining

The miners use special software to solve the problems and are then rewarded with bitcoins as a reward. This is done as an incentive for more and more people to mine and is a smart way of issuing the currency. Following steps are included in the process of bitcoin mining:

 

  1. Verify that the transactions are valid.
  2. The transactions are bundled in a block.
  3. Select the header of the transaction which is the most recent and inserts it in a new block as a hash.
  4. Solve the PoW (proof of work) problem.
  5. When the solution is found, a new block is added to the blockchain and then propagated into the network.

What is PoW?

PoW stands for "proof of work" which is a method that helps to make sure that the information that is being created in a new block was difficult (costly and time-consuming) to make. The processing power can be converted into hardware, energy and time.

Bitcoin Cloud Mining

The concept of cloud hashing or cloud mining enables a user to purchase the mining capacity of hardware in data centers. This helps people earn bitcoins without having to manage hardware, software, bandwidth, electricity or any other issues. This way, all bitcoin mining is done on the cloud. This prevents the users from facing problems associated with conventional mining of bitcoins such as hosting issues, heat, electricity, upkeep trouble or installation problems.

How to Buy Bitcoins?

Bitcoins is still the number-one cryptocurrency in the market, even after all the highs and lows. It is the easiest and the most convenient digital currency to purchase. You do not have to spend months mining bitcoins if you want to own them, you can directly purchase them in a matter of minutes and can be used as an investment or just as a currency. If you want to know how to buy bitcoins, you would need a place where you can access them from or store them in. This is where a bitcoin wallet comes in.

Where to Buy Bitcoins?

Since bitcoin is a digital currency and not a tangible "coin", they are not something that can actually be "stored". So a bitcoin wallet is not an actual wallet that you can attach on your jeans. It is merely a public key and a private key which allows a user to buy and sell bitcoins easily. Since it is just a series of keys, there is a large variety of different types of bitcoin wallets and different levels of security.

When selecting the best and the most reliable wallet to store your bitcoins, one must consider the following points.

  • Control Private Keys: It should be a wallet where you can own and control your keys.
  • Security and Back Up: It should have reliable features for seed backup keys and pin codes.
  • Developer Community: It should have an active developer community for better maintenance.
  • Ease of Use: It should be fast and easy to use.
  • Compatibility: The wallet should be compatible with different operating systems.

Bitcoin Wallet

Online and Mobile Bitcoin Wallets

When it comes to convenience, the best ones for the casual bitcoin buyers are online and mobile wallets. They allow quick and easy access to the digital currency but it does put your money in the hands of a third party as it stores it on a cloud based system. These wallets are fairly secure, but one must still be vigilant. 

Hardware and Software Bitcoin Wallets

The hardware wallets are very secure and the best choice for your bitcoins, especially if you are buying them as a form of investment rather than for spending. The hardware wallets, also known as wallets on a secure device, are the safest choice for cryptocurrency wallets. The only drawback is that they cost money, unlike the popular apps and software wallets. Trezor is one such type of a hardware wallet for bitcoins that requires 2-factor authentication with a password and a PIN code that the Ledger wallet requires for access. The software bitcoin wallets, on the other hand, are not as secure as the hardware ones. If a hacker manages to get into your computer, they can steal your bitcoins. As such, you need to be careful and keep the laptop safe and malware-free. The popular software wallets are Electrum, Copay and Jaxx.

Paper Wallets

In paper wallets, you have your public and private keys printed on a piece of paper which cannot be hacked into. You can use your printed QR codes on an online or a software wallet for using. The risks involved in paper wallets is you losing the paper, the paper getting damaged or someone stealing it from you. As such, one has to be very careful with the paper wallets and keep them sealed tightly. It should be kept in a secure manner and folded in such a way that the private keys cannot be seen.

Buying Bitcoins

The first step in deciding where to buy bitcoins is to find a bitcoin exchange. If you want to buy bitcoins with cash or cash deposit, then it is the most private way of buying bitcoins. If you're going to buy a large number of bitcoins, such as 25 or more, then using a digital exchange is the best bet. The following are some of the best bitcoin exchanges:

Coinbase

This is one of the biggest and the most reliable platform for buying bitcoins in the US. It offers services of exchange as well as a wallet, both in one. This makes it quite easy for a first timer. This exchange also supports many other cryptocurrencies, such as bitcoin cash, ethereum, and litecoin. Once the user has signed up with the exchange and connected it with their bank account, they can easily transfer their funds in and out of their account and convert bitcoin to dollar or USD to bitcoin at their will. Coinbase exchange charges a percentage of a fee that is variable of 1% for US transactions, from a bank account or a USD coinbase wallet. A further $2.49% is added as a fixed fee if the transaction is being done through a debit or a credit card.

The coinbase wallet is also quite secure and can be accessed from a website or even through a mobile app. Moreover, cash balances are insured for up to $250,000 against a breach of online storage or theft. They also hold 98% of customer currencies offline to keep them safe from hackers.

Binance

Binance is yet another bitcoin exchange that also supports a wide range of other cryptocurrencies as well. They charge a low fee of just 0.1% for trades. This exchange has a large variety of digital currencies that goes beyond the popular ones. They also offer to trade coins into a broad range of currencies at a competitive rate. There are, however, a few complaints that users have reported, such as bugs in the Android mobile app or delays in withdrawing certain currencies. This exchange is not insured and it could be a concern to many users.

CoinMama

This is an all-in-one exchange which provides a digital wallet as well. It is easy to buy bitcoins from this exchange along with a few other digital currencies as well. This website is quite popular all over the world and claims to be present in more than 188 countries and has a customer base of more than one million users. It allows the user to buy bitcoin in $100, $200, $1,000 or $5,000 increments with just a few simple clicks on their website. Their fees, however, are a bit on the higher end, around 5% and an additional 5% if you buy through a debit or a credit card. They do not have a mobile app, but their website is user-friendly and of high quality. The CoinMama exchange is registered in the US which provides legitimacy and recognition to the exchange as compared to many other cryptocurrency exchanges.

How to Buy Bitcoins with Cash?

It is good to know that you can also get bitcoins from hard cash. You may need to go out of your way for it, but sometimes it is worth it for the security. You may also have a chance of buying bitcoins from an ATM; Coin ATM Radar, has a map of all bitcoin ATMs all over the world. There are many such ATMs in major cities in the US, such as New York, Chicago, Atlanta, Los Angeles, Miami and Philadelphia. The other way of buying bitcoins for cash is through local bitcoins which connects the buyer and seller. Through this, you can potentially meet them in person and you can then pay them money directly. There are also specific websites such as Paxful and Bitquick which connect the buyer and seller where the seller provides their bank details and the buyer makes a cash deposit at the bank.

How to Buy Bitcoins from an Exchange?

Once you have decided on which exchange you want to buy bitcoins from and have already gotten yourself a bitcoin wallet to store your funds in, you are ready to buy bitcoins from a cryptocurrency exchange. You can buy from the exchanges mentioned above among the many options that you have. You would need to open up your account at the exchange in order to buy and sell the bitcoins. Most of the exchanges require verified identification for your account to be set up, due to the anti-money-laundering regulations. This means that you should have a photo ID and a proof of your address.

Most of the exchanges do accept payment through credit cards or bank transfers and some even accept Paypal transfers. Once you have signed up with your information and bank account details and the exchange has received payment, it will purchase the corresponding amount of bitcoins on your behalf which will be automatically deposited in your wallet on the exchange. This process can take minutes and sometimes even hours, depending on the network. Once you have the funds on your exchange, you should (if you prefer) move your funds to your own personal wallet. 

Bitcoin Value

As of 30th March 2019, the value of bitcoin is $4,093.87, which has increased by about 0.4% from the last price. It mostly has an upward trend in rate and is expected to grow and stay around $4000 to $4100 price range. At present, the total supply of bitcoins remains at 17.62 million and its market capitalization is at $72.14 billion. When it comes to price expectation for bitcoin and its value in the future, most people expect it to rise further. One of the traders claims that it will go at least $100,000 within four years and could even reach $150,000 in that time.

Bitcoin Converter

This guide will help you know more about Bitcoin and how to trade in this digital currency. Whether you want to buy it and keep it as an investment, sell it or trade it, there are plenty of options. When you do decide to buy bitcoins, you should be aware of the current prices, as per any currency you want. This leads you to the Bitcoin calculator or Bitcoin converter which is readily available online.

As per the bitcoin converter, it states that the value of bitcoin has remained high and will continue to do so, as expected. The bitcoin converter is like a calculator which gives the user the latest rates to convert any amount of bitcoin into any world currency.

Bitcoin Trading

Since most investors are aware of the importance and the value of Bitcoins, it has become a rapidly growing currency against the dollar. Many traders, as such, prefer to trade in the bitcoin derivatives because of its highly volatile nature which also makes it the best choice for bitcoin CFD trading.

How Does Bitcoin CFD Trading Work?

There are two ways through which a trader can deal in bitcoin. They can either buy the currency or hope for it to increase in value so that they can sell it on a profit. Alternatively, they can speculate on its value without knowing the token; this is how CFDs work. It enables you to trade a contract that is based on prices in the market. You can put down a small initial deposit, making it a leveraged product and still be able to gain exposure of a more significant position. This can increase the profits and may even have an effect on the losses.

How to Trade Bitcoin CFD?

  • First, you would have to open your trading account and it only takes a few minutes to set up.
  • Fund your account.
  • Fill in the amount that you prefer to trade in.
  • Buy (go long) or sell (go short) on bitcoin.

Bitcoin Trading - Bitcoin Futures

When it comes to bitcoin trading, it is important to mention another vital development of bitcoin - Bitcoin Futures. Bitcoin Futures have been available since the end of 2017 and are readily available on regulated cryptocurrency exchanges. They may also have an impact on the regulatory decisions on other instruments for bitcoins such as bitcoin ETFs. For the investors, who want to speculate on the price of bitcoins without actually buying any directly, Bitcoin Futures is their ideal choice. It provides them with a regulated and viable means to do so quickly. Bitcoin Futures also help to hedge against risk during volatile price fluctuations of bitcoins. One of the most popular Bitcoin Future trading platforms is "Bakkt" which offers physical delivery of the asset for the contracts, but it remains under their custody, rather than in the custody of the purchaser, which eliminates the need to purchase the bitcoins on the exchanges. 

Bitcoin ETF

ETF, which stands for exchange-traded funds, is an investment vehicle that tracks the performance of a specific asset or a group of assets. Through this, the investors can diversify their investments without owning the assets tracked by the ETF. For those people who are only interested in gains and losses, this form of investment is better than the actual buying and selling. A Bitcoin ETF means it mimics the price of bitcoin and allows the investors to buy the ETF without actually going through the process of buying bitcoins and not worry about the lengthy process of doing so and there is no need to learn about the cryptocurrency at all.

Bitcoin in the News

There have been plenty of times when there has been a lot of bitcoin news. This included the many breakthroughs that it has had, such as:

  • November 2012 – WordPress started accepting bitcoins as a means of payment.
  • July 2013 – A joint project in Kenya was launched, that linked bitcoin with M-Pesa, which is a popular East African mobile payments system.
  • September 2014 – TeraExchange, LLC, received approval from the United States Commodity Futures Trading Commission began listing an over-the-counter swap product that was based on the price of a bitcoin currency, which marked the first time in the US a regulatory agency had approved a financial product based on bitcoin.
  • March 2016 – virtual currencies were recognized by The Cabinet of Japan such as Bitcoin for having functions which are similar to real money.
  • August 1, 2017 – The first fork in Bitcoin was launched, known as Bitcoin Cash
  • October 24, 2017 – The second fork in Bitcoin created: Bitcoin Gold
  • December 10, 2017 – CFE (Cboe Futures Exchange) started offering Bitcoin Futures trading
  • December 28, 2017 – Third fork in Bitcoin launched: New coin on SegWit2x chain called B2X

Conclusion

Bitcoin is one of the pioneers in the cryptocurrency market. It has seen many highs and lows when it comes to its value and price, and yet, its price has maintained an upward trend. Bitcoin is a unique form of an alternative currency which is free from any interference from a third party and lets a user have complete control. It is true when it is being called the "future of money." The influence of bitcoin on international trade, however, is still in its infancy, but it will surely have an important role to play in it. The international trade is a multi-trillion-dollar industry which needs a financial system that is robust and secure. Bitcoin may not be there ultimately, but as the technology stabilizes, it will eventually become a top player. It is only a matter of time when bitcoin takes over the entire world.