Tag: exchange

  • What is Bitcoin Wallet and How to Open It?

    What is Bitcoin Wallet and How to Open It?

    What is Bitcoin Wallet and how to open?
    The bitcoin wallet is a collection of private keys

    By Guy Avtalyon

    The answer is simple, a Bitcoin wallet is a collection of private keys. It may also refer to client software used to manage those keys and to make transactions on the Bitcoin network.

    But there is also the technical definition. The Bitcoin wallet is a software program that stores your private and public keys (they come in pairs). It enables you to send and receive coins through the blockchain, as well as monitoring your balance.

    How to open a Bitcoin wallet?

    The exchanges automatically create a bitcoin wallet for new accounts, almost all of them. All you’ll have to do to be able to use a bitcoin wallet is to load it with bitcoin or some altcoins. However, as wallet providers will charge fees for any outside transaction, it may be cheaper to examine the benefits of a non-managed opportunity.

    It’s easy to find plenty of free wallet options. When using a web-based wallet that means, you’ll have to share your private key with a third party. For the new users of crypto, this is maybe the easiest way to start using a bitcoin wallet. On the other hand, this isn’t suitable for privacy-minded users.
    Keeping your coins in an exchange can be risky. There is a potential of losing them all. Why? Simply because you do not technically “own” the coins you’ve bought in exchange. Exchanges operate like a bank. It represents a third-party service provider and you must trust they are able to keep your coins safe. Still, there is always a chance that exchange can be shutting down or be hacked. The result could be you end up in a loss of your coins. Given the lack of regulatory frameworks on exchanges and cryptocurrencies as a whole as well as the infancy of the industry, the best way to keep your coins safe is to have total control of your coins.

    How does the Bitcoin wallet work?

    Ownership of your private keys gives you total control over the funds associated with your matching public keys. That’s why it is vital to make sure you keep your private keys secretly hidden so that only you know your private keys. It is important to have a back-up of your private keys.

    Digital, and in the same way bitcoin wallets are different as compared to your physical wallet. Digital wallets don’t store real money, instead, they store private and public keys. Private keys are like your PIN number to access your bank account, while public keys are similar to your bank account number. When you send Bitcoin, you’re sending a value in the form of a transaction, transferring the ownership of your coin to the recipient. For recipient is important that his/her private keys must match the public address you used to send Bitcoin. Of course, if that one wants to spend transferred Bitcoin.

    Why would you need a Bitcoin wallet?

    Bitcoin, as a difference from traditional money, is digital money. Hence, access to this currency is totally different. Especially when it comes to receiving and storing it. To be clear, Bitcoin doesn’t live in any tangible form, it can’t be stored anywhere. What owners can store is the private keys to have access to the public Bitcoin address. Key is also necessary to sign the transactions that need to be securely kept.
    Only with this combination of recipient’s public key and your private key a Bitcoin transaction possible.

    You’ll find several different kinds of Bitcoin wallets, that fit different requirements and differing in means of safety and security, comfort, or convenience.

    By using the wallet software, you are able to send and receive Bitcoin. If you want to receive Bitcoin, a wallet is all you need. This means that you personally can send the Bitcoin to the address of your wallet.

    In case you want to send Bitcoins, you will need to have them first. To buy Bitcoin you’ll need to subscribe to one of the online exchanges. to authenticate yourself, you’ll need some ID card and proof of residence. When it is done, you can start to send money to that exchange and in return to receive Bitcoin for fiat money. The rest is simple. Just send the bought Bitcoin to your digital wallet. Never keep Bitcoin or any other digital currency for a long time. In fact, as long as your Bitcoin is stored on exchange it isn’t really yours. The exchange could be hacked or closed. Well, you’ll lose all your funds.

    What is needed to open it?

    Because Bitcoin is decentralized, you cannot just open an account and put money in and out. To put your digital coins somewhere, you’ll need a wallet or at least a Bitcoin address and a private key. On an elementary level, the address operates like a bank account number. The private key is actually similar to your signature or password to a netbank. To confirm the possession of your digital money you need a private key. Never ever share it with anyone!

    Okay, but how will you access your coins? You have to download a digital wallet on your computer/phone. Cryptocurrency wallets store your address and private key, they’re functioning like a netbank. You can receive and send amounts.

    It’s difficult to choose from the millions of Bitcoin wallets. Do some research and find the best for you. Maybe the most comfortable way is to add a wallet extension to your browser.

  • Bitcoin is Digital – How To Use It?

    Bitcoin is Digital – How To Use It?

     

    2 min read

    Bitcoin is both: currency and commodity

    What bitcoin is maybe the best describes this. Bitcoin cannot be held or kept in a pocket or wallet like currency.

    Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country’s central bank or government. You can trade Bitcoin for goods or services with vendors who accept it as payment.

    What is bitcoin else? Bitcoin is a worldwide payment system and decentralized virtual currency.  It offers quick, cheap, and highly private payments for everyone.

    Do you see? Bitcoin is both of this. How?

    As Bitcoin is separated into two components, it might cause some confusion.

    Bitcoin – with a capital letter is a decentralized P2P network which helps to facilitate transactions between people without a middleman. The Bitcoin protocol is openly published. Developers can review the code as well as easily adapt an open source software and modify it to their own needs.

    bitcoin – with a lowercase ‘b’ is the coin which exists on the Bitcoin network. It can be perceived as a currency for the internet. In the same way as dollar or euro are currencies for the United States and Europe. Bitcoin-the-coin is the first cryptocurrency.

    Also known as virtual or digital currency and BTC is an abbreviation of it. 

    What is Bitcoin?

    In 2009, Bitcoin was developed and launched as an open-source protocol. It was based on a whitepaper written by Satoshi Nakamoto. He described the bitcoin as a digital currency. That is to say, backed up by the idea of an electronic payment system. But such that should be secure, verifiable and independent of any central authority. The first Bitcoin transaction was for two pizzas costing 10,000 BTC (a cool $190,000,000 at the high point of 2017).

    Since the Bitcoin release, it has experienced highs and lows. However, it stayed as the preeminent cryptocurrency in the world.

    Unlike regular fiat currency, there is no central Bitcoin bank to print and regulate the flow of currency. Bitcoin is held by users linked together by a central ledger. The ledger is a core Bitcoin feature known as the blockchain. The blockchain records every single transaction made using Bitcoin. It validates transactions and ensures the integrity of the network.

    Bitcoin is Digital - How To Use It?

    What is bitcoin in comparison with fiat currencies?

    It’s like an online version of cash. You can use it to buy products and services. But not many shops accept Bitcoin yet.  And some countries have banned it altogether.

    The physical Bitcoins you see in photos are a ornaments. They would be worthless without the private codes printed inside them.

    Fiat currencies are a physical medium of exchange with an unlimited supply. It is issued and controlled by a government. Bitcoin, on the other hand, has a set maximum supply of 21M coins.  And as on first place, it is not controlled by any government or entity. Both crypto and fiat currencies coexist alongside each other. And have their advantages and disadvantages.

    Bitcoin is digital

    Bitcoin has some resemblances to fiat money: value changes according to market variables.  As Bitcoin is digital people can use them to buy things or pay for services. Also, people already use it in their daily lives as any other fiat currency, but this is where similarities end.

    Bitcoin has several attributes that set it aside from traditional currencies as a pan-global means of exchange. Central banks or monetary authorities do not control the number of Bitcoins.

    It is decentralized making it global. Anyone with a computer can set up a Bitcoin address to receive or transfer Bitcoins in seconds.

    Bitcoin is anonymous.

    The cryptocurrency allows users to maintain multiple addresses and setting up an address requires no personal information.

    DLT technology makes Bitcoin completely transparent. It stores complete details by an address of every transaction that ever occurs. Transfers of Bitcoin are immediate and when you make it once, they are final. At the same time, there are some fees.  And international and domestic transfers are not subject to foreign currency exchange rates and fees for the transfer. There are no borders when it comes to Bitcoin. 

    Bitcoin is a fixed asset.

    However, Bitcoin is divisible so the growth potential for the exchange medium is unlimited. Certainly, one of the most interesting inventions that came alongside Bitcoin is blockchain or distributed ledger technology (DLT). DLT has amazing potential when it comes to traditional operations.  And also as settlement results for businesses in the financial as well as other industries.

    What bitcoin is maybe the best describes this. Bitcoin cannot be held or kept in a pocket or wallet like currency.

    So, what is bitcoin if you can’t touch it?

    It is purely a computer-based means of exchange. Bitcoin has morphed from a fledgling digital currency into an asset or commodity. In fact, Bitcoin somewhat straddles the median. Its use of a currency is limited, it is too volatile to be considered a solid asset. But it is traded similarly to regular stocks and shares.

    Golden rules for investing in stock market for beginners 2

    Can we, on the question what is bitcoin, say it is currency?

    There is a great deal of debate about whether Bitcoin is a currency. We called The Merriam-Webster Dictionary for help and found that this dictionary defines currency as:

    Circulation as a medium of exchange
    General use, acceptance, or prevalence
    The quality or state of being present
    Something (like coins, treasury notes, and banknotes) that is in circulation as a medium of exchange
    Paper money in circulation
    A comment article used for barter
    A medium of verbal or intellectual expression

    The official definition of currency may leave you more confused about whether what is bitcoin. Is it a currency or something else? It certainly meets some of the characteristics in the definition, but not all.

    In September 2015, the Commodity Futures Trading Commission (CFTC) in the United States officially designated Bitcoin as a commodity.

    What is Bitcoin? The Guide to Cryptocurrency 1

    Can we, on the question what is bitcoin, say it is a commodity?

    Bitcoin is one of those assets that does not quite fit well into any definition. In addition, and a historical understanding of what is a currency and what is a commodity.

    While throughout history, many commodities and even some manufactured products have served as currency. The best examples are gold and silver. Central banks and monetary authorities around the world continue to hold vast gold reserves. Moreover, they are categorizing their holdings as “foreign exchange reserves.” Hence, both gold and silver are off in the same class as Bitcoin. 

    As you can see, the classification what bitcoin is as a commodity is both dubious and understandable, at the same time. It is not easy to categorize Bitcoin. Because it is so new and different from other assets available to the market participants.

    What is bitcoin in the future?

    Bitcoin is a child of the technological revolution.

    As the first global currency that people can use all over the world as a method of exchange without involving governments. This cryptocurrency will continue to attract interest and resistance.

    For people in countries where currency flows are subject to stringent government control, bitcoin offers a method to transfer fortune to parts of the world where restrictions are less difficult.

    Bitcoin appears here to stay, at least for the time being.

    Risk Disclosure (read carefully!)

  • Do You Need A Broker To Trade Crypto?

    Do You Need A Broker To Trade Crypto?


    Read to the end.

    By Guy Avtalyon

    Do you need a broker to trade crypto?

    Nowadays, everything revolves around Bitcoin and cryptos. Due to the exponential increase in the price of most cryptos, an increasing number of people are considering how they can profit from it. So far, you’ve only been watching from the side of the other, watching others fill their pockets … it’s certainly an unpleasant feeling. It’s time for you to start trading!

    When you first start taking an interest in cryptocurrency you may think you are so lost in this huge sea of unknowns.

    Do you know how does the cryptocurrency market work? FIND HERE

    Where do you start? What are the useful keywords to look up and keep in mind? What are the available helpful resources?

    The question: Do I need a broker to trade crypto is the mother of all questions.

    To whom I can trust is the main and most powerful weapon when you have to choose the way to trade crypto.
    Over time, many have proven themselves to be scammers, and people lost trust. But you still have wonderful platforms. So, the answer is:

    No, you DO NOT need a broker to trade crypto.

    And of course, you may trade bitcoins with anyone without having to pay fees to a centralized exchange. True is that you don’t need any kind of mediator or agent between you and the crypto seller. I think the big advantage of bitcoin is no middle man.

    You don’t need a broker to trade crypto

    All you have to do is to use one of the trading platforms’ equipment with very good software. And there are scores of trading platforms. Powerful, to which you can trust.

    The most common place where people buy and trade cryptocurrency is on the exchanges. Those are places where you may buy and sell your crypto, using fiat. There are multiple measures to judge the reliability and quality of an exchange, such as liquidity, spread, fees, purchase and withdrawal limits, trading volume, security, insurance, user-friendliness.

    The first thing you really need is access to the “marketplace” from where to buy these cryptocurrencies. In other words, if you want to trade cryptocurrency you need:

    1) cryptocurrency wallet
    2) cryptocurrency exchange to trade on.

    Simple as that.

    Choose some respectable exchange and follow instructions. It mostly comes down to the following. After setting up an intermediary bank account and verifying your details, you are only five simple steps away from a Bitcoin purchase:

    1) Access the ‘Buy/Sell Bitcoin’ tab
    2) Select the payment method using the drop-down menu
    3) Enter the desired amount
    4) Click ‘Buy Bitcoin Instantly.’
    5) View your credited Bitcoins on your dashboard

    This process sometimes should be repeated several times.

    But it’s worth it in the end. Of course, it isn’t without any fees but fees are much lower than if you use a broker.

    If you’re interested in trading Bitcoin then you have a broad range of cryptocurrency exchanges from where to choose. But first make sure the exchange you pick accept fiat deposit so you can buy Bitcoin directly with your fiat money (US Dollar, Euros, etc.). Secondly, you want to make sure your preferred cryptocurrency is listed on the exchange. The most popular Crypto Exchange is CoinBase. But you can also use GDAX, BitFinex, Wirex, Binance, Coinmama, Bitpanda, or similar.

    If you want a bunch of fancy tools with which you can buy and sell cryptocurrencies you’ll want to use one of the exchanges that offer you a large variety of order types.

    An important factor when deciding your preferred cryptocurrency exchange is to research it thoughtfully and also listen to other user reviews and experiences.

    So, the answer to the question is – NO!

    If you want to invest in cryptocurrency, and not just buy/sell/trade, then you have a few options:
    a) New investors can choose an exchange to buy coins on and a wallet to store the coins in.
    b) An exchange-broker-wallet hybrid that allows customers to buy/sell/store cryptocurrency or some else options which I don’t want to recommend one until I reviewed them.

    But that is a completely different story.

  • 10 Things You Need To Know Before Choosing A Broker

    10 Things You Need To Know Before Choosing A Broker

    10 Things You Need To Know Before Choosing A Broker
    One of the biggest decisions you’ll have to make is which exchange or broker to deposit funds with.

    By Guy Avtalyon

    What do you need to know before choosing a broker? A decision to choose the broker may be a nightmare for traders. If you read about them on various forums or read paid bad reviews, you can really find yourself stuck in that. One of the biggest decisions you’ll have to make is which exchange or broker to deposit funds with.

    If you’re looking to buy a cryptocurrency in an ICO, the advice is to read the company’s prospectus for this information:

    a) Who owns the company? A recognizable and popular owner could be a positive sign.

    b) Are there other major investors who are investing in it? It’s a good indication if other famous investors want to invest in the currency.

    c) Will you own a stake in the company or just currency or tokens? This distinction is important. Holding a stake means you’ll get to share in its earnings, while buying tokens simply means you’re allowed to use them, for example, like chips in a casino.

    d) Is the currency already developed, or is the company looking to raise money to develop it? The further along with the product, the less risky it is.

    What things you need to know before choosing a broker

    Before you jump in all of this you have to check:

    1) Demo Account: Before risking your own money, it is absolutely crucial you trade with a demo account. You need to know before choosing a broker if it offers a demo account Demo accounts are the best option a trader has to test a trading strategy and evaluate how they are as a trader. It might not be perfect, but it is better than the alternative of jumping straight into the deep water.

    2) Accessibility: Before you sign a contract with a  broker, test out their customer service and support. Are they accessible? If you have a problem whether it is technical or general, is there someone there whose only job is to provide you better service?

    3) Legitimacy: It is important to check on the broker’s website for any additional financial information and statistics about the brokerage. If it is not there, check on the parent company’s site, and if you cannot locate this information, this should raise a red flag. This is information you need to know before choosing a broker. 

    Also, you can CHECK HERE

    4) Resources: It is important to ensure that the platform competes with the market standard of including real-time charts, integrated technical analysis tools, live news, and updated market data, and sometimes support for trading systems.

    5) Foundation: The number of online brokers is expanding fast, so you’ll need to check and double-check before signing anything. Particularly if it involves very large amounts of money. It is therefore important to investigate who and what is behind the brokerage and how strong its foundations are.

    6) Competitive Spreads: After determining the integrity of the online broker, now you need to evaluate the quality of their offering.  It is of absolute importance to find a broker with the smallest spreads. That will warrant maximum profit for you.

    What else is important when picking a broker?

    7) Leverage Flexibility: is one of the most important advantages of the market. But large leverage is not always the top option for all traders. The larger the leverage involves the higher risk. So if you have limited money, higher leverage will increase your opportunities, that’s sure. On the other hand, if money isn’t a problem, lower leverage is better to pick.

    8) Account Types: Alike with the leverage, the type of account you choose will depend on your needs in trading. When choosing a broker, it is important it offers several types of trading accounts.

    9) Lenient Margin Rules: If a brokerage has strict margin rules, you might encounter a sharp decline in one of your positions. So, before it gets a chance to recover and make you some profits,  your broker can make a margin call. That can liquidate your account. This will result in great losses for you. It is important to know that broker’s margin rules are not too severe.

    10) Emotionless Trading Features: You need to trade in a cold and calculated way so as not to let your emotion get the best of you. One of the guiding principles in successful trading is “Leave emotion out”. This is done by setting a broker’s trading platform and under no circumstances deviating from them. The main advice is don’t rush into it, check your broker against the above criteria, establish a trading strategy, examine the market using technical and fundamental analysis.

    And experience of other traders too.