Trading Bitcoin (BTC): Easy As Ordering Pizza
As much as Bitcoin has experienced high volatility over the past few years, it remains one of the most popular cryptocurrencies in the market today. As they say, Bitcoin is not for the fainthearted. It has experienced wide-range swings over the past few years but experts in cryptocurrencies are saying that there is a bright future. With the increased popularity of Bitcoin, do you know how to buy and sell Bitcoin? Well, trading with Bitcoin should not be more difficult than ordering pizza.
What is Cryptocurrency?
So that we're on the same page, basics should come first. A cryptocurrency is an electronic medium of exchange stored in the blockchain. It leverages encryption techniques to not only control the creation of monetary units but also verify and authenticate the transfer of funds. Cryptocurrencies operate independently of central banks and other regulatory bodies. It is based on blockchain technology, distributed ledgers networked together through cryptography.
Bitcoin mining was highly lucrative when the cryptocurrency first came into existence. Nevertheless, Bitcoin mining is still lucrative and it involves adding transactions to the distributed ledgers otherwise known as a blockchain. Mining in this context involves attempts to crack complex puzzles which often leads to authenticated transactions. If you come first in cracking the complex puzzle, you will get a chance of placing the block on the blockchain and get a reward in return.
The rewards are designed to encourage mining and they usually include transaction fees and the bitcoin which was released as a reward. You will need specialized hardware, software and technical know-how to even start making a penny from Bitcoin mining per year.
It is important to note that you don’t have to mine Bitcoin to own Bitcoin but it is the way to get Bitcoin without spending money directly to buy them. The point here is that you don’t have to be a miner to own crypto. You can always visit a bitcoin exchange in Canada to trade Bitcoin.
Additionally, you should note that enriching yourself is not the sole purpose of the existence of crypto mining. From the other end, crypto mining serves to introduce new cryptocurrency into circulation. The Bitcoin that are in existence today have been mined. However, they would be in existence even without mining, only that they will not increase in number.
How To Buy Bitcoin
By now, you understand that Bitcoin is a trustless and decentralized system enabling individuals and organizations to transfer value through the internet. With Bitcoin, you can transfer value instantly without middlemen through an instant bitcoin exchange or any other related exchanges.
Everyone in the crypto network behaves in a productive manner with miners aiming at earning the block reward. The end result is the most efficient way to transfer value among individuals and organizations on the internet. Having looked at how to mine Bitcoin, it is only fair to also look at how to buy these precious cryptocurrencies.
As said above, buying Bitcoin is as easy as ordering a pizza. You don’t need to be tech-savvy to buy or own Bitcoin. However, there is a level of tech skills you will need to do it successfully. First, you will need to create a Bitcoin wallet on a trustworthy site.
After filling some few personal details on an online Bitcoin exchange in Canada, you will be ready to add a payment method including bank transfer, credit card, debit card or any other traditional payment methods. With the payment method set, you can now easily purchase Bitcoin with real money and they will be transferred to your wallet.
With an instant bitcoin exchange wallet, you will receive your payments promptly. It is important to note that the availability of certain payment methods is subject to the area of jurisdiction as well as the Bitcoin exchange in Canada.
To be crystal clear, a Bitcoin exchange is different from a Bitcoin wallet. Bitcoin exchanges are more like foreign exchange markets. In other words, they are digital platforms where you can exchange Bitcoin with for flat currency such as Bitcoin to dollars.
They offer wallets but they are not their focus. The exchanges usually encourage their users not to store large amounts of Bitcoin for long periods. In a nutshell, you can invest, purchase services or goods online or even transfer funds to friends instantly with an instant bitcoin exchange. You can pay for Bitcoin in a variety of ways depending on who is selling them. You can buy and sell stuff with Bitcoin as well.
How To Sell Products and Services For Bitcoin?
Selling your stuff for Bitcoin is pretty much like accepting cash/PayPal/etc payments for them. The only difference is that you won’t receive the payment in the form of CAD/USD or any other conventional currency.
Just like you don’t have to meet someone who sold you a gadget that was shipped to you, you can buy or sell stuff the same way for Bitcoin. You don’t have to meet the buyers in person to get your products. Instead, they can be shipped to you, especially if they are small enough to be shipped to you.
You could be asking yourself who is supposed to go first, the seller or buyer? As a seller, you can make terms for your sale. You will require the buyer to send bitcoins first before you ship the product. The good thing about Bitcoin for sellers is that the transactions are irreversible. However, it is only a good thing when you look at it from the point of view of a seller. There is no buyer protection involved in bitcoin transactions against sellers who don’t deliver products.
How to protect your Bitcoin?
You should keep in mind the fact that wallets are usually not designed to store Bitcoin. However, if it happens that you’ve some Bitcoin to safeguard, make sure you don’t keep large amounts on your mobile, computer, or server. Store small amounts of Bitcoin for your daily needs. Store the remaining funds in a safer place.
You should backup your wallet regularly and encrypt your smartphone or wallet with a very strong password to control its access. For added security, you can consider storing some of the funds in an offline location away from an internet connection or a network for that matter.
The rule of thumb is to keep a small amount of Bitcoin in your wallet. Additionally, make sure your software is up to date. You will also want to leverage the multi-signature feature of Bitcoin to set up multiple independent approvals before your funds are spent.
How to invest in Bitcoin
With the rise of Bitcoin, many investors have thought of ways to invest in the cryptocurrency. Simply, investing involves buying Bitcoin and holding on to them with the hope that it will appreciate in value. However, you should be careful here because it is somehow a risky endeavor. You must have a vast knowledge of the crypto and how it works.
In the recent past, it has experienced swings that few could predict. Therefore, the rule of thumb when it comes to not only investing in Bitcoin but also in any other cryptocurrency is to invest what you can afford to lose.
When you are at it, it is important to keep in mind when buying bitcoin, go for reputable as well as a trustworthy bitcoin exchange in Canada such as MyBTC.ca. You could also opt for an instant bitcoin exchange which will help you to exchange your Bitcoin with flat currency instantly.
After extensive research, it has been found that buying all of your Bitcoin in one trade will not work to your advantage. You should try to buy a fixed amount of Bitcoin every day, week, or even month throughout the year. That way, you will be able to minimize buying when it shows a downward trend in price and buy the most when it is on the rise.
Interesting Facts About Bitcoin
Did you know that the first thing which was purchased using Bitcoin was pizza? Now you know. When it was first developed, they were almost worthless. It was a big deal then because there were very few retailers who could accept bitcoins for products and services. The first documented purchase of goods with Bitcoin was a pizza exchange for 10,000 BTC.
Another interesting thing to note is that the person who invented them is not known. Started in 2009, there have been many speculations about the person or group of people who started Bitcoin. The closest it got to uncovering the father of Bitcoin is pseudonym Satoshi Nakamoto whose identity is a mystery.
If you ever lose your Bitcoin private key, you will lose your bitcoins. One perfect example of how this can be disastrous is James Howells’s story of throwing away his hard disk containing the private keys accidentally. Up to today, it has been found that more than 25% of Bitcoin have been lost forever.
The mining of Bitcoin will stop when the 21 million mark is reached. In other words, there will be only 21 million bitcoins. There are about 16.3 million bitcoins in circulation today and by 2140, the mark will have been reached. Additionally, they are not subject to any regulation and therefore, they can’t be banned by anyone.
From the above information, you will realize that Bitcoin and cryptocurrencies as a whole are more than just an investment. They are revolutionizing how people receive and make payments with security and speed concerns addressed. They are among the greatest inventions of all-time, at least according to some experts. Join the revolution and be part of the ever-growing bitcoin community.