The Bitcoin is an electronic currency alternative to conventional currencies and acts as a form of digital money. It is decentralized, not depending on any organization or country. both as an investment is used as a method of payment for goods and services, and is touted as a means to do so without involving third parties. Despite its growing popularity, most companies still do not accept Bitcoin, although its expansion is increasing. Its usefulness as an investment is highly questionable by some and perfectly understood by others. Before buying Bitcoin is important to understand what it is, its advantages and disadvantages.
1.1. Understanding the basics of Bitcoin.
bitnovo wallet card The Bitcoin is a completely virtual currency that allows consumers to exchange money for free, or at nominal prices. Without the use of a third party (such as a bank, credit card company or other financial institution). Bitcoins are not regulated or controlled by a central authority like the Federal Reserve or the European Central Bank and all transactions take place in a worldwide online market, where users are anonymous and mostly undetectable
- These transactions are publicly shared in procedure known as "Block chain". This reflects each transaction, and who owns each Bitcoin.
- Bitcoins miners are people who have computers that constantly check the "Block chain" to ensure that it is correct and updated. Individuals are confirming transactions, and in return, are paid in Bitcoins, which increases the supply of them.
- Because Bitcoin is not supervised by a central authority, mining ensures that the individual who makes the transfer of Bitcoins has sufficient funds, the agreed amount is transferred and the balance of each member to complete the transaction is correct .
1.2. Learn about Bitcoin mining.
Learn about Bitcoin mining. To understand the Bitcoin is important to understand Bitcoin mining, which is the process by which Bitcoins are created. While mining is complex, the basic idea is that each time a transaction Bitcoin between two people is done, the transaction is recorded digitally by computers in a transaction log in which all the details of the transaction are described (as the date, time and who owns the Bitcoins)
- The Bitcoin allows you to exchange money instantly with anyone in the world, without creating an account or using a bank or financial institution.
- Money transfers do not require names, which means that there is a very small risk of identity theft.
1.3. Familiar with the legal issues surrounding Bitcoin.
Becoming familiar with the legal issues surrounding Bitcoin. The Bitcoin is a legal currency in most countries, including Spain and Europe. However, some countries like Argentina, China or Russia, restrict or prohibit severely foreign currencies, including Bitcoin. Recently, the federal agency responsible for combating money laundering, announced new guidelines for virtual currencies. The updated guidelines will regulate Bitcoin exchanges, but leave the rest of the Bitcoin economy for now.
- The Bitcoin network is resistant to regulation by governments, and has earned a loyal following among people who engage in legal activities, leveraging their capabilities, but also the people who use them for illegal activities, taking advantage of the fact that the bitcoin can be exchanged anonymously, quickly and with less cost.
The Court of Justice of the European Union ruled on a dispute that took place in Sweden in June 2015. In its application, the Tax Agency of the country intended to levy a tax on transactions with Bitcoin being carried out in a dedicated forum this virtual currency. This decision makes European citizens can buy and sell Bitcoin without paying taxes on these transactions. Thus the Bitcoin received the same treatment as other currencies in circulation worldwide, and therefore this court equated with legal tender coins in this legal tender.
Moreover, the strengthening of federal law may conclude that the Bitcoin is considered a tool of money laundering and can find a way to make it disappear. Although this would be a challenge, increasingly intense federal regulations can get to push the system into the background, thus decreasing the value of Bitcoin as a legitimate currency.
2.1. Be aware of the advantages of Bitcoin.
Be aware of the advantages of Bitcoin. Be aware of the advantages of Bitcoin. The major advantages of Bitcoin include low rates, protection against identity theft, protection against fraudulent payments and immediate liquidation. And if what is intended as a financial background, there are many people who have earned a lot of money because of it.
- Low Rates: Unlike the use of traditional financing systems in which the system itself (such as PayPal or bank) is offset by a rate, the Bitcoin bypasses whole system. The Bitcoin network is maintained by the miners, who are compensated with new Bitcoins.
- Protection against identity theft: use Bitcoin does not require a name or any other personal information, simply use an identifier of your digital portfolio (the system used to send and receive Bitcoins). Unlike a credit card, where the sender has full access to all your data and information on credit, Bitcoin operates completely anonymously.
- Protection against payment fraud: Because the Bitcoins are digital, it can not be falsified, this protects against fraudulent payments. In addition, transactions can not be reversed as can happen on a credit card.
- immediate and settlement transfers. Traditionally, when money is transferred, this includes significant delays, delays or other problems. The lack of a third party means that money can be transferred directly between people easily, without complexities, delays or costs associated with carrying out purchases between participants using different currencies and suppliers.
2.2. But we must also be aware of the drawbacks of Bitcoin.
Aware of the negative aspects of using Bitcoin. Aware of the negative aspects of using Bitcoin. With traditional banking, if someone makes a fraudulent transaction on your credit card or your bank fails, there are laws to limit consumer losses. Unlike traditional banks, the Bitcoin does not have a safety net in case your Bitcoins are lost or stolen. There is no intermediary power, you reimburse them.
- The reality is that the Bitcoin network is not immune to hackers, and an important mean of Bitcoin accounts are not fully insured against cyber criminals or security breaches. But the truth is that in his short life can say objectively that every time this accounts safer.
- The price volatility is also a major drawback, provided they do not count on it. This means that the price of Bitcoin fluctuates wildly. For example, in 2013, one Bitcoin had an approximate value of $ 13. Suddenly she rose to over $ 1200, and now its value is approximately $ 573 (as of 08.28.2016). Because of this, if you buy Bitcoins, it is important to keep in this currency, because if you change back to USD this could result in a significant loss of funds.
2.3. Bitcoin understand the risks of an investment.
Bitcoin understand the risks of an investment. Bitcoin understand the risks of an investment. One of the most popular Bitcoin uses, this deserves a word of caution before proceeding. The main risk of investing in Bitcoin is its extreme volatility. With moving rapidly up and down prices, the risk of loss is considerable.
In addition, since the value of Bitcoin is determined by supply and demand, if the Bitcoin ends up being subject to government regulation in any way, this could reduce the number of people who want to use Bitcoin, which could theoretically make the coin remain worthless.
3.0. INTRODUCTION: Bitcoin storage.
Almacenar tus Bitcoins online. The portfolio is a computer file that will store your money in Bitcoin format, similar to a physical, actual portfolio, but this is virtual. In order to buy Bitcoins, you first need to create a portfolio, and have a place to store them, this is the first before buying Bitcoins step. Basically, there are 5 types of purses to store Bitcoins although it is true you could get to combine some together.
3.1. Online: store your Bitcoins online through a third party in the cloud.
Almacenar tus Bitcoins online. You can create an online wallet through a third party site such as Blockchain.info. You can save your Bitcoins in the cloud. This is easier to set up, but you're depositing your confidence to a third party. It is certainly the most commonly used method, you can access the website, from where you can manage shipments and receptions. Actually they are just as simple that emails. It is probably the most advisable to start with small purchases of BTC purse.
3.2. Mobile: App storage on your mobile device.
App storage on your mobile device The difference between a computer and a mobile know that today is low. The app that allow you to place Bitcoins are quite similar to the technologies used in computers. Are basically Light Clients, app size reduced in some cases allow customers to synchronize with your computer or webs of cross-platform operation and purses.
3.3. Computer: hardware uses a wallet to store Bitcoins.
Using a hardware portfolio to store your Bitcoins. This option allows us to dump our Bitcoins to your computer. But we must be prudent, if your computer has been hacked by a virus or trojan, or if you misplace files you may lose all your Bitcoins. You should always back up your folder on an external hard drive to avoid losing your Bitcoins. Currently there are two types.
Full Clients That was created by the team of Satoshi Nakamoto (https://es.wikipedia.org/wiki/Satoshi_Nakamoto) They block the entire chain is discharged. LIGHTWEIGHT Clients on which private streets locally stored differently purses via the web.
3.4. Hardware: hardware portfolios, the least known.
Using a hardware portfolio to store your Bitcoins. They are physical devices that store private keys and send and receive Bitcoins in them. They have advantages over standard software portfolios.
3.5. Role: a portfolio on paper for your Bitcoins.
Create a portfolio on paper for your Bitcoins. Paper portfolio actually is not really a purse, is a key printed on paper. You can be encrypted or unencrypted, depending on the security level. It is the most uncomfortable of all options but the advantage you have is that you have all the security against hardware or software problems. Also known as "Cold wallets" that are used to fund purses that are rarely used. It is important to understand that this type of portfolio may receive funds without stopping.
4.1. Choose a sharing service.
Choose a sharing service. Get Bitcoins through an exchange service is the easiest way to get it. Exchange service works like any other currency exchange: Just register and convert the desired currency Bitcoin. There are hundreds of exchange services available, and although the best option changes depends on where your location is found, the services change are known:
- Bitnovo: Yes, our company, the most reliable and powerful company operating from Spain. Emphasizing the ease of purchase and a great support service can bring you close and agile solutions from Spain.
- Coinbase: This popular service portfolio and exchange also trades US dollars and euros with Bitcoins. The company has web and mobile applications to facilitate the purchase and trade with Bitcoin.
- Circle: This sharing service gives users the ability to store, send, receive and exchange Bitcoins. Currently, only US citizens are able to link their bank accounts to deposit funds.
- Some services also allow you to exchange trading in Bitcoins. Some exchange services act as portfolio services with limited capabilities for buying and selling. Most exchanges and portfolios will be stored amounts of digital or fiat currency, like a regular bank account without maintenance fees to have your bitcoins deposited in them. The Exchanges companies and portfolios are a good choice if you want to participate in the standard trade and do not need the complete anonymity.
4.2. Provide proof of your identity and contact information for service.
Provide proof of your identity and contact information for service. By registering for an exchange service, you'll need to provide personal information to the platform to create an account. Most countries legally require any individual financial system or using a Bitcoin exchange service to meet the requirements against money laundering. You are are legal standards imposed by the laws, not exclusive criteria of the exchange companies.
- Although they are required to provide proof of their identity, portfolio services do not offer the same protection as banks. You are not protected with insurance against theft, and to be honest, you will not receive a refund if the exchanger gets stolen or simply goes out of business.
4.3. Buy bitcoins with your trading account.
Using a hardware portfolio to store your Bitcoins. Using a hardware portfolio to store your Bitcoins. Once you set up your account through an exchange service, you'll need to link it to an existing bank account and arrange to transfer funds between it and your new account Bitcoin. This is usually done through a bank transfer and extra costs.
Some trading platforms allow you to make a deposit in person to your bank account. This will be done face to face, rather than through an ATM.
If you need to link a bank account to use the service change, it is likely to only support the banks in the country in which the service is based exchange. Some trading platforms allow you to transfer money to overseas accounts, but the rates will be much higher and there may be a delay when changing Bitcoins back into local currency.
In addition to bitnovo sell Bitcoins with bank transfer, credit card also.
5.1. Use an exchange platform for sale between individuals.
Find a dealer LocalBitcoins. Currently there are platforms that allow -Sales buying Bitcoins between individuals. We do not recommend this option if you are buying for the first time. They are platforms that require a degree of medium-high to have guaranteed success in your purchase knowledge. They are like a complex thousand ads, but specialized in Bitcoin.
5.2. Use Meetup.com to find sellers.
Use Meetup.com to find sellers. You can use Meetup.com to find a group of meetup Bitcoin. As a group they may decide to buy bitcoins and learn from other members who have used sellers to buy bitcoins before.
5.3. Negotiate the price before the meeting.
Negotiate the price before the meeting. Depending on the vendor, you can pay a premium of about 5-10% of the price change in a face to face treatment. You can check the current exchange of Bitcoin online before accessing the fee the seller.
- You should also ask the seller if you prefer to cash or through an online payment service. Some vendors may allow you to use a PayPal account to pay, although most prefer a non-reversible method of payment.
- A reputable dealer will always negotiate the price before you meet. Many will not wait too long to meet once the price is determined by whether the value of Bitcoin undergoes a change.
5.4. Meet the seller in a busy public place.
Meet the seller in a busy public place. Meet the seller in a busy public place. Avoid meeting in private homes. You must take every precaution, especially if you bring cash to pay the seller for Bitcoins. And the truth is that it is much safer and comfortable choose to purchase professional sites like bitnovo, but we understand you can do the test and make the purchase from a private seller.
5.5. Access your Bitcoin wallet.
Negotiate the price before the meeting. When you meet the seller face to face, you'll have access to your portfolio Bitcoins through your smartphone, tablet or laptop. You will also need access to the Internet to confirm that the transaction has been successfully completed. Always check that Bitcoins have been transferred to your account before paying the seller.
6. Using ATM Bitcoin
6.1. Locate a Bitcoin ATM near you.
Locate a Bitcoin ATM near you. Locate a Bitcoin ATM near you. Bitcoin ATMs are a relatively new concept, but are growing in number. You can use a map of Bitcoin ATMs online to find an ATM nearby. Here we leave a map so you look closest to your population. Bitcoin ATMs .
- Many institutions worldwide now offer Bitcoin ATMs, from universities to local banks.
6.2. Withdraw cash from your bank account.
Withdraw cash from your bank account. Most Bitcoin ATMs only accept cash because they are not ready to process transactions debit or credit card.
6.3. List your cash at the ATM.
Using a hardware portfolio to store your Bitcoins. Using a hardware portfolio to store your Bitcoins. Then scan the QR code in your portfolio or access the necessary codes from your account via your smartphone to load the Bitcoins in your wallet.
Exchange rates ATMs Bitcoin may vary from 3% to 8% over the standard exchange price.