What’s Bitcoin?
Bitcoin is really a decentralized, peer to peer, digital currency system, meant to give web users the ability to process transactions via digital unit of exchange generally known as Bitcoins. Put simply, it is just a virtual currency.
The Bitcoin system was made in the year 2009 by an undisclosed programmer(s). Ever since then, Bitcoin has garnered huge attention as well as controversy rather than US dollar, Euros and commodity currencies for example precious metals.
Rise to Popularity
Bitcoin had not attained much attention in the world of business and finance before the year 2009. It rose to prominence from the 2011-2012 period if it gained over 300%. Bitcoin has received a 400% rise in its value because the August of a year ago. As a result, investment capital firms and investors around the world continue to pay importance on the cryptocurrency.
In the first 50 % of 2014, investment capital firms invested $57 million in Bitcoin from the first quarter, followed by another $73 million from the second quarter amounting into a total of $130 million, which can be 50% more than last year’s total of $88 million. This can be a complete contrast on the scenario this year where Bitcoin firms amassed a relatively meagre sum of $2.2 million.
These statistics prove definitely that Accept Bitcoin may be worth your investment, which begs the question, how can you buy and spend money on Bitcoin?
A guideline for novice investors in Bitcoin
Easy and simple and least difficult solution to spend money on Bitcoin is as simple as purchasing bitcoins. There are tons of established firms, mainly in the usa as well as abroad, who will be active in the business of shopping for and selling bitcoins, abbreviated as BTC.
Coinbase
If you are moving into the U.S. then Coinbase is where you are considering. Coinbase provides it’s clients with BTC with an estimated mark up of 1% within the existing rate. Residents of america have the option to sync their Coinbase wallets using bank accounts. As a result, future payment transfers are created simple. This company also gives you the option for automatic bitcoin purchasing from day to day. As an illustration, should you be interested to get $50 in bitcoins at the start of each month, Coinbase lets you set up a motor vehicle buy for that amount.
Keep in mind the conditions and terms before you start to work with the service. For those who have subscribed to an automated bit coin service, you will not be able to control the value where the BTC is bought monthly. Observe that Coinbase is will not be the Bitcoin exchange i.e. you purchase and then sell the coins directly from the firm. Since firm has to source the coins business buyers, you could face delays or disruptions when laying orders during fast market moves.
BitStamp
BitStamp suits the requirements of a standard bitcoin exchange. Bitcoin works as a middleman which allows you to trade with other users instead of the business itself. Here the liquidity is higher and you also have a good chance to find someone who is willing to trade with you. There is an initial fee of 0.5% which is often reduced to 0.2% should you trade $150,000 in a period of Thirty days.
Alternative routes to get Bitcoins
Local Bitcoins
Exchanging is not only way of acquisition of bitcoins. Local Bitcoins is often used to buy BTC offline. The website was designed to link potential buyers and sellers. The bitcoins are locker from your seller in the escrow and can only be released to buyers.
Buying bitcoins offline is not always very reliable or safe. Hence it’s far better fulfill the sellers during daytime and let a buddy tag along with you in the event things lose their freshness.
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