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Crypto Derivatives: A Corner of the Market or the Market Itself?

Emmanuel Goh is co-founder & CEO of Skew. – a monetary innovation startup headquartered in London given that 2018. These opinions are his and do not always show the view of CoinDesk.

The race is on. One business day prior to the much-awaited ICE/Bakkt launch, the CME announced it would be noting bitcoin options in Q1 2020. ICE returned the favor by announcing it would likewise be launching alternatives agreements but in December this year/

Why are 2 of the largest exchanges on the planet completing so openly for an area that was considered, until just recently, as secondary by a lot of market experts?

Nearly each week, a new gamer is revealing its objective to get in the increasingly congested crypto futures market. Most just recently crypto behemoths Binance and Bitfinex introduced their own futures items, with differing degrees of success.

This optimism wasn't always there. The increase of Hong-Kong based BitMEX – home to the most liquid bitcoin contract globally – was for a very long time met hesitation by market leaders, who dismissed the product as only serving betting addicts with the usage of high leverage.

The End Of Bitcoin’s Commencing


The next phase in the Bitcoin revolution will be the standardization of the exchanges where the coins are traded. They compare current phase of Bitcoin with golden days of Wild West – promising, but missing too much yet. According to some investors and economists, Bitcoin has some stored value, like gold and silver have throughout the times. But it’s a double-edged sword: that means that, without your audience’s confidence, a cryptocurrency can crumble. This has led to cheating since trading began. We had some troubles with miners and assayers – mainly in the first years and while mining cost keeps rising. So, even if some investors dislike government taking a position and acting on cryptomarket, it’s made to protect everyone and the economic ecosystem.

Like many alt coins, Bitcoin has a huge community and worries about government decisions. In one hand, digital coins are easier to store, buy and sell something. In another hand, its economic expansion depends on its acceptance by governments, businesses and people. It won’t be easy to solve, but offers too big rewards.

And if Bitcoin or any alt coin wishes to hit the jackpot and becomes itself a reference, it will face an unstable market. The “up-down” variation of crypto coins facing to regulatory laws doesn’t have been easy. The big bet is on swap agreements and how they can work in favor of new investor.

One of main challenges faced by Bitcoin is keeping or even increase its value, because it depends on value perceived by its users. Its creator, Satoshi Nakamoto, developed whole infrastructure aspect and gave your community a new way of purchasing, but when dealing with a “coin market”, it isn’t enough. Crypto-coin value depends heavily on its community.

So, if you like to high tech features, the “crypto world” can be perfect for you. First, because IT characteristics of blockchains and crypto coins are a disruptive innovation – but it’ll take some time to become a new standard. Later, for some time it was an opportunity to “miners”, people trying to decipher new Bitcoin blocks and make some extra money. But, the true challenge is getting people start to use them in their daily routine – mainly when there are so few stores and shops accepting them.

What Tends To Make Bitcoin So Volatile?

Some studies suggest that Bitcoin will pass for a profound standardization of coin trades in the next years. They compare current phase of Bitcoin with golden days of Wild West – promising, but missing too much yet. One strength of a cryptocurrency is value its users assign it – and some economists compare Bitcoin like gold or silver, even if its price isn’t so stable. But it’s a double-edged sword: that means that, without your audience’s confidence, a cryptocurrency can crumble. And some big players know how to use it in their favor. We had some troubles with miners and assayers – mainly in the first years and while mining cost keeps rising. This led to governmental oversight and the creation of centralized exchanges.

The Bitcoin dream has been to police its own community and remain beyond the physical scrutiny of any global government. But a security breach at Mt. Gox, a big Bitcoin exchange company, has exposed how far Bitcoin and other currencies are from finding this perfect, safe ecosystem. Such situation took off the sleep of many Bitcoin users – and not only those with deposits and wallets in Mt. Gox. But it’s really difficult if that big issue was really caused by a cyber security vulnerability. Despite this, most popular cryptocurrencies has shown great resilience – and it isn’t different with Bitcoin. This resilience could very well be just the boost needed to legitimize the currency and the lean towards governmental involvement that may actually help this fledgling store of value soar to its mainstream potential.

The timing of the Mt. Gox incident may prove to be a boon for the currency. Tera Group, a New Jersey organization, has planned and negotiated a bilateral agreement with CFTC to trade Bitcoins and other crypto coins through swap exchanges. The vast majority of commercial currency trading is done through swaps agreements which is why we follow the commercial traders in our own trading. A swap agreement is basically an insurance policy that provides a guaranteed value at a specific point in time to protect against currency fluctuations. For example, a company paying a variable rate of interest may swap its interest payments with another company that will then pay the first company a fixed rate. The swap markets are the superhighways of the financial industry. Crypto transactions cost a small fraction according to volumes processed. Therefore, the cost on the individual swap is small but the sheer volume of swaps processed makes it a huge revenue source for all of the major banks.

One of main challenges faced by Bitcoin is keeping or even increase its value, because it depends on value perceived by its users. Its creator, Satoshi Nakamoto, developed whole infrastructure aspect and gave your community a new way of purchasing, but when dealing with a “coin market”, it isn’t enough. Crypto-coin value depends heavily on its community.

Bitcoin is a global marketplace executing transactions on an electronic network. That sounds an awful lot like the forex markets. But, even if there are some troubles on the way with crypto transactions, it didn’t demotivate crypto users. However also “bitcoiners” wish some level of security in their transactions when buying or selling Bitcoins. Thus, some experts consider Bitcoin is becoming mature and, in a short future, we can see it in many local stores.

Thinking Of Investing? Feel The Bitcoin Way

We are living unique and transforming times and we wish big and quick profits, one of the most controversial new investment vehicles has been Bitcoins, the virtual currency. But not everyone agrees as a consequence of its volatility, partly through possible failures in transactions and due to their non-traceability meant they were a favored payment method for criminals.

Things are changing and after a particularly volatile spell in which one of the big exchange companies, MtGox, declared bankruptcy, the currency reached some maturity level permitting traders analyse how much risky that transaction is and whether to risk their money in a currency that technically doesn’t exist.

Volatility

The Bitcoin market is too small yet, so it’s important to understand that any news can have devastating effects on the price. And when analysing graphically, Bitcoin looks like to have a new chance to increase too much, and that’s why we have dozens of investors defending that coin and asking for legitimization. Most broker agents recommend that you consider Bitcoin a medium to long term investment because of its volatility. We can compare such investments with real estate. When purchasing houses and apartments, the long run can beat short run. The same can be said for Bitcoins. Whilst there is a significant daily trade in the currency, many Bitcoins are held as investments as analysts believe that it’s likely popularity increase of Bitcoin will help it to get better results in the long run.

Influencers

As with all financial instruments, prices are influenced by supply and demand. Bitcoins are no different but what has caused big fluctuations in price has been the unusual nature of the news that influenced the supply and demand:

• The bankruptcy of MtGox, one of the biggest Bitcoin exchanges

• The closing down of Silk Road which allegedly accepted Bitcoins for drug trading

• The disclosure by the US government that, despite the negative uses of Bitcoins, they believed that the currency had a future

• The media has also stirred up interest by reporting on milestones in the currency’s rise and fall, trumpeting the rise to over $1000 and its subsequent plummet on bad publicity.

Generally the advice on investing in Bitcoins is to sit and watch the market for a couple of weeks to get an idea of how the currency trades, its volatility and trends. Rumors can affect the value, and you should start investing a small amount and simply following for opportunities, a little similar with Forex transactions, you can do the same on Bitcoins; it’s just a bit longer process and a little less automated.

Just like with any investment, the value can fall, and events like the collapse of MtGox and the closing down of Silk Road, negatively affected Bitcoins; not just because demand was reduced but also because Bitcoins were falsely linked with the companies by urban myth. The market seems to be becoming more regular, but not necessarily regulated, as more exchanges come online. Some of the exchanges will go the same way as MtGox but others will consolidate and become stronger and more reliable. No doubt official regulation will be applied to Bitcoins in due course at which time the volatility is likely to reduce.

Bitcoins can be an exciting and potentially lucrative medium to long term investment vehicle. Exciting because it hasn’t yet been accepted into the mainstream of currencies or investment vehicles. One thing investors like about Bitcoins is their conviction to prospects as was in gold.

How To Acquire Bitcoins?

Bitcoin is a payment system on the Internet and also works like a way to exchange foreign currency, which recently emerged as an open-source software. It is a cryptography of money transactions which includes creating, transferring and supporting all its control online. In this process the participant checks and saves payments through one transaction carried through the software’s on computers and mobiles. A similar process is also carried on the exchange of services, products and other currencies.

With the consistency of Bitcoins, a new issue arose about its security. Users of Mac who needs Bitcoins for their transactions can lose their money if they are not careful while installing the app , they can install accidentally a trojan. “OSX/CT” application is a Trojan virus similar to a Bitcoin application “StealthBit”. This seatbelt is operated by Mac users for their transactions. One can get confused while downloading the Trojan which looks exactly like Bitcoin.

This StealthBit application was first published on “GitHub”. A developer who has created this Trojan have used the source code from the StealthBit application which was uploaded to the Github. Once you install this model of StealthBit virus, it automatically installs some add-ons of the browser into your browser. These destructive add-ons on browser have then taken login information from you about Bitcoins including Blockchain.com, MtGox and BTC-e. When your login information received by extensions, it sends your login information to the hacker and you will lose your wallet without getting noticed.

A case about the stealing of Bitcoins also came up, when a person installed this app from Github and he lost his 20 Bitcoins (in that time, it should worth $ 13,480). So , if you use a Mac, please pay much attention! If you are using the Bitcoins app for your transactions , pay attention to your browser extensions and also “Pop-up Blocker” or even anything at all from it. After that. Clear all of them instantly.

Everything has pros and cons, same applies to Bitcoins, on one side web development have created a great platform for fully digital transactions and on the other side it has also given rise to cybercrime by creating malware of it. Web development and programming used in the best way can benefit lot not only in terms of programming, but also in the way you are thinking and creating a business for goodwill of others.

Marketing and Promotion for Bitcoin

Marketing and Promotion for Bitcoin

Innovative businesses accepting new payment ways can lead to successful Bitcoin Marketing models. In last years, Bitcoin and other crypto currencies appeared and marked their territories, helping many businesses to grow too. Many companies benefit themselves with (almost) non-existent fees and (almost) inability to roll back transactions.

Here are some of the businesses that have had great success with accepting Bitcoin as a payment method.

Bees Brothers

Bees Brothers was a business set up by three brothers that were learning about bees through farming honey. Over time, they ended up with more honey than they knew what to do with, and started to sell it locally. This eventually led to accepting Bitcoin for online purchases, being that it has no fees and is a very safe method for accepting payments (with no charge-backs), and their business exploded from there.

It is really safe to say that Bitcoin is what made their business as successful as it is today, and they, in turn, helped strengthen Bitcoin by accepting it. Both sides won and grow.

Expedia

This big booking travel website started to accept Bitcoin as payment method too. They tout over 290,000 bookable properties. As of yet, airline tickets and car rentals are not able to be paid via Bitcoin, but they have stated that they are working on it.

Expedia didn’t publish how much Bitcoin acceptance impacted its revenue, but they affirm they traced some estimates before. And, according to company, by accepting Bitcoin brought results better than they expected.

Dell

Now let’s talk about one of big IT company, known by everyone. Their acceptance of Bitcoin was a sign that it was going to make it mainstream, or at least gain more attention from those that otherwise are uncomfortable with the idea of cryptocurrencies.

Taking into consideration that company has as audience computer experts and people with good knowledge on cryptomarkets, that decision brought some good impact. In other words, it’s hard to go wrong with accepting Bitcoin as a technology company.

At this moment, there is almost no information about impact to accept cryptos like payment – and Dell didn’t say if its revenue increased or not like a consequence. But, even if they aren’t getting more sales due to it, each sale with Bitcoin like payment means less money lost in each transaction.

Why Bitcoin is Useful for Businesses

If you still have some doubt about accepting crypto currencies as payment method, maybe you didn’t understand the main motto. They offer reliable payments (that can’t be reversed or be found to be fraudulent), low fees (the acceptor pays absolutely nothing on their end) and quick transfers (there is no waiting for days or weeks to get the funds in).

So, it can increase productivity, profitability and security of any business. And those businesses don’t need wait for a long time to see “the color of money” they earned.

As more and more businesses jump on board with Bitcoin, it will help push others to get in on it as well. This benefits the entire community, by increasing the number of suppliers and consumers that are utilizing the currency, which in turn gives more uses and helps create more liquidity.

For a lot of businesses, the effects of Bitcoin acceptance still have not been seen. As the economy around it grows, however, this will change and great things will happen.

Why Is Bitcoin Cloud Mining The Way Forward?

Bitcoin is a payment system on the Internet and also works like a way to exchange foreign currency, which recently emerged as an open-source software. It uses a cryptography system to secure its monetary transactions which includes creating, transferring and supporting all its control on the Internet. Here, the participant checks and saves payments in exchange of transaction carried through the software’s on computers and mobiles. This process is also carried when purchasing services, products and other currencies.

Due to the growth of Bitcoins, a new threat arose about its security. Users of Mac who needs Bitcoins for their transactions have no idea that they are at threat of losing their money if they are not careful while installing the app which has a harmful programming code. “OSX/CT” application is a Trojan virus similar to a Bitcoin application “StealthBit”. This seatbelt is operated by Mac users for their transactions. One can get confused while downloading the Trojan which looks exactly like Bitcoin.

This StealthBit application was first published on “GitHub”. A developer who has created this Trojan have used the source code from the StealthBit application which was uploaded to the Github. Once you install this model of StealthBit virus, it automatically installs the extensions into your web navigator. These destructive add-ons on browser can take confidential data from you about Bitcoins including Blockchain.com, MtGox and BTC-e. If those extensions get to capture some important information, it sends your login information to the hacker and you start losing your bucks without getting noticed.

A case about the stealing of Bitcoins also came up, when a person installed this app and he lost his 20 Bitcoins which had value of $ 13,480. So , if you use a Mac, please pay much attention! If you like to use the Bitcoins app and you use Chrome , pay attention to your extensions of browsers and also “Pop-up Blocker” or even anything at all from it. After that. Clear all of them instantly.

Everything has pros and cons, same applies to Bitcoins, on one side web development have created a good app for transaction of money and on the other side it has also given rise to cybercrime by creating malware of it. Web development and programming used in the best way can benefit lot not only in terms of programming, but also in the way you are thinking and creating a business for goodwill of others.

Simple Methods To Acquire And Invest In Bitcoin

With the 21st century demand for quick and big profits, one of the most controversial new investment vehicles has been Bitcoins, the virtual currency. It’s some way controverse as a consequence of its volatility, due to as a result of possible cyber security issues and partly because their non-traceability meant not only stores would have interest on Bitcoins, but also criminals intending to request money unauthorized payment.

Things are changing and after a particularly volatile spell in which one of the huge players of crypto transactions, MtGox, filed for bankruptcy, the currency seems to have settled into a more stable pattern enabling traders analyse how much risky that transaction is and whether to risk their money in a currency that technically doesn’t exist.

Volatility

Although Bitcoins are becoming increasingly popular, the market is still quite small, meaning that good and bad news can have a negative reflection about prices. The long term outlook for Bitcoins is potentially good, and that’s why we have dozens of investors defending that coin and asking for legitimization. Most stockbrokers advise that you consider Bitcoin a medium to long term investment because of its volatility. Think of it in terms of real estate. No one buys and sells houses many times a day and there can be significant drops in property prices but the long term trend for property prices is usually up. Same way for Bitcoins. Daily, it’s achievable a good volume of transactions for each individual, but many analysts consider possibility to get that’s possible popularity increase of Bitcoin will help it to get better results in the long run.

Influencers

As with all financial instruments, basic rules like supply and demand tools . and even if you consider Bitcoin has caused fluctuations, understand that ups and downs of the :

• The bankruptcy of MtGox, one of the biggest Bitcoin exchanges

• The closing down of Silk Road which allegedly accepted Bitcoins for drug trading

• The disclosure by the US government that, despite the negative uses of Bitcoins, they believed that the currency had a future

• The media has also stirred up interest by reporting on milestones in the currency’s rise and fall, trumpeting the rise to over $1000 and its subsequent plummet on bad publicity.

Generally the advice on investing in Bitcoins is to sit and watch the market for a couple of weeks to get an idea of how the currency trades, its volatility and trends. Rumors can affect the value, so many suggest investing a small amount and simply following for opportunities, a little like setting take profit levels with shares and Forex, you can do the same on Bitcoins; it’s just a bit longer process and a little less automated.

Just like with any investment, the value can fall, and events like the collapse of MtGox and the closing down of Silk Road, negatively affected Bitcoins; not just because demand was reduced but also because Bitcoins were falsely linked with the companies by urban myth. The market seems to be becoming more regular, but not necessarily regulated, as more exchanges come online. Some of the exchanges will go the same way as MtGox but others will consolidate and become stronger and more reliable. No doubt official regulation will be applied to Bitcoins in due course at which time the volatility is likely to reduce.

Bitcoins represent an exciting and potentially lucrative medium to long term investment vehicle. Exciting because it hasn’t yet been accepted into the mainstream of currencies or investment vehicles. One thing investors like about Bitcoins is their conviction to prospects as was in gold.

Can You Produce A Fortune Through Bitcoin Mining?

If you want to learn more about bitcoin, buying some and use it can be a good idea to get started.

And it’s possible you have read in many websites or heard some friends commenting that purchasing bitcoins can be complicated or dangerous, but it isn’t so difficult – actually, you can figure it like easier than you imagine. In a lot of ways, it is probably easier than opening an account at a traditional bank. And, given what has been happening in the banking system, it is probably safer too.

Three is the number of situations to consider about purchasing bitcoin: how to create and use a wallet, send or receive money and buy from other person or exchange.

Preparation

Before getting started, you will need to get yourself a wallet. And it isn’t so difficult to get, because you can do it through one exchange selling cryptocurrencies. And, although I think you are going to want to have one or more exchange wallets eventually, you should start with one on your own computer both to get a better feel for bitcoin and because the exchanges are still experimental themselves. Later, when you feel comfortable, you’ll probably have several wallets in several exchanges and transfer your money between them to keep it safer.

What is a wallet?

It works like a real wallet, by storing “bitcoin money”, but it exists only digitally. In this case, imagine it as a software written to store bitcoin, can run on almost any device – desktop computer, laptop or mobile device – and be stored on small devices like pen drives. If you are concerned about being hacked, then that is a good option. Even the Winklevoss* twins, who have millions invested in bitcoin, put their investment on hard drives which they then put into a safety deposit box.

*The Winklevoss twins are the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.

Tips to have your wallet on computer

If you use a Windows or Mac compatible device, you’ll find several exchanges offering a bitcoin wallet. These are not just wallets, but are in fact part of the bitcoin network. In that software, you can create one or more addresses, that you’ll use to send or receive money, each address is a big sequence or letters and numbers, something like: 1TyFcQatbg4BvL9gGTz6VdqqNKpPn5QAuk. There, you can see a place to paste addresses from other people when you wishing to send money and that value will be transferred directly to that person’s wallet. Some wallets let you create a QR corde, becoming easier to share that information with other people want to send you some bitcoin.

NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as a number across the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). This way, any computer or device can be part of that network, needing only that software. It explains why your wallet will take up 8 or 9 GB from your device storage. And in first time, it will take several hours to create that local register and sync with the network. This is normal, does not harm your computer, and makes the system as a whole more secure, so it’s a good idea.

Bitcoin Qt

It’s the first and original wallet. This is a full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and back up your wallet. Outside of the time it takes to sync, this is a very easy to use option. Search for Bitcoin Qt wallet download to find their site.

Armory

Armory runs on top of Bitcoin Qt, so it offers same features – and also requires syncing time. Armory allows you to back up, encrypt, and the ability to store your bitcoins off line. Look for “Bitcoin Armory wallet” and you will find more info and where to download. Now, if you don’t want to wait for wallet syncing or don’t have enough storage for it, there are some options you can consider.

Multibit

New users like this wallet because it’s lightweight and syncs quickly. You can find it searching for “Bitcoin Multibit wallet”.

Electum

In addition to being quick and light, this wallet allows you to recover lost data using a passcode.

Search for Bitcoin Electum Wallet to find their site.

After you get the wallet set up, take a few minutes clicking around. Things to look for:

o There will be a page that shows you how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).

o There will be an area showing what your recent transactions are.

o There will be an area where you can create an address and a QR code (like the one I have above). You don’t need the QR code if you don’t want it, but if you run a business and you want to accept bitcoin, then all you’ll need to do to accept payment is to show someone the QR code, let them take a picture of it, and they will be able to send you some money. You will also be able to create as many addresses as you like, so if you want to track where the money is coming from, you could have a separately labeled address from each one of your payees.

o There will be an area with a box for you to paste a code when you want to send money to someone or to yourself on an exchange or different wallet.

There will be other options and features, but to start out with, these are the items that you should know about.

Getting Your First Bitcoins

Now that you have a wallet, you will, of course, want to test them out.

The very first place to go is http://faucet.bitcoin.st/.

This is a website that gives out small amounts of bitcoin for the purpose of getting people used to using them. The original version of this was run by the lead developer of bitcoin, Gavin Andreson. That site has since closed and this site operates by sending out one or two advertisements a month. You agree to receive those messages by requesting the bitcoins. Copy and paste your new bitcoin address and enter a phone number to which you can receive an SMS. They send out an SMS to be sure that people are not continuously coming back for more since it costs nothing to create a bitcoin address. They will also send out once or twice a month advertisement to support their operation. The amount they send it trivial: 0.0015 BTC (or 1.5 mBTC). However, they process almost immediately and you can check to see that your address and wallet are working. It is also quite a feeling to get that portion of a bitcoin. (Non-disclaimer: I have no connection with this site and receive nothing if you use them. I simply think they are a good way to get your feet wet).

Congratulations! You have just entered the bitcoin economy.

To get your feet a little wetter, you can go panning for gold. There are a number of services and websites out there that will pay you in bitcoin to do things like go to certain websites, fill out online surveys, or watch sponsored videos. These are harmless, and you can earn a few extra bitcoins this way, but it is important to remember that these are businesses that get paid when people click on the links on their sites. They are essentially kicking back a portion of what they get paid to you. There is nothing illegal, or even immoral about this (you might like what you see and make a purchase!), but they are frequently flashy and may not be completely straightforward. All the ones that I have tried (particularly bitvisitor.com) have paid out as advertised. It is interesting to experiment with these, but even with the likely rise in the value of bitcoin, you won’t become a millionaire doing this. So, unless you are an advertisement junkie, I would recommend you move on. If you would like to try, simply Google “free bitcoins” or something along those lines and you will find numerous sites.

Buying Bitcoin Hand-to-Hand

Finally, this is going to be the real test of bitcoin. Can people easily trade them back and forth? If this can’t happen, then there can’t really be a bitcoin economy because retailers won’t be able to use it. If retailers can’t use it, what earthly good is it? Fortunately, this is not really a problem. iPhone is a bit of a hold out, but many smartphones have apps (mobile wallets) that will read QR codes and allow you to send bitcoin to whomever you want. You can also display a QR code of your address, or even carry a card in your wallet with your QR code to let people send bitcoin to you. Depending on what kind of wallet you have, you can then check to see if the bitcoins have been received.

A couple of things to note:

When you set up your wallet, if you click around a bit, you will see an option to pay a fee to speed transactions. This money becomes available to a bitcoin miner as he/she/they process bitcoin information. The miners doing the work of creating blocks of information keeps the system up to date and secure. The fee is an incentive to the miner to be sure to include your information in the next information block and therefore “verify” it. In the short term, miners are making most of their money by mining new coins (check the section on What Are Bitcoins for more information about this). In the long term, as it gets harder to find new coins, and as the economy increases, the fees will be an incentive for miners to keep creating more blocks and keep the economy going. Your wallet should be set to pay 0 fees as a default, but if you want, you can add a fee to prioritize your transactions. You are under no obligation to pay a fee, and many organizations that process many small transactions (like the ones that pan for gold described above) produce enough fees to keep the miners happy.

In clicking around your wallet, on the transactions page or linked to specific transactions, you will see a note about confirmations. When you make a transaction, that information is sent out into the network and the network will send back a confirmation that there is no double entry for that bitcoin. It is smart to wait until you get several confirmations before walking away from someone who has paid you. It is actually not very easy to scam someone hand-to-hand like this, and it is not very cost-effective for the criminal, but it can be done.

Where can you buy bitcoin like this?

You may have a bitcoin Meetup in your area.

You can check out localbitcoins.com to find people near you who are interested in buying or selling.

Some are trying to start up local street exchanges across the world. These are called Buttonwoods after the first street exchange established on Wall Street in 1792 under a buttonwood tree. See if there is one, or start one, in your area.

See if you have any friends who would like to try bitcoins out. Actually, the more people who start using bitcoin, the larger and more successful it will be come. So please tell two friends!

Some people ask if it is possible to buy physical bitcoins. The answer to this is both a yes and a no. Bitcoin, by its very nature, is a digital currency and has no physical form. However, there are a couple of ways that you can practically hold a bitcoin in your hands:

Cascascius Coins: These are the brainchild of Mike Caldwell. He mints physical coins and then embeds the private keys for the bitcoins inside them. You can get the private key by peeling a hologram from the coin which will then clearly show that the coin has been tampered with. Mike has gone out of his way to ensure that he can be trusted. These are a good investment strategy as in the years to come it may be that these coins are huge collector’s items.

Paper Wallets: A paper wallet just means that rather than keeping the information for your bitcoin stored in a digital wallet, you print the key information off along with a private key and keep it safe in a safe, in a drawer, or in your mattress (if you like). This is highly recommended and cost effective system for keeping your bitcoin safe. Keep in mind, though, that someone could steal them or if your house burns, they will go with the house and there will be no way to get them back. Really, no different than cash. Also, as with Casascius Coins, they will not really be good for spending until you put them back into the computer.

* There is software to make printing your paper wallets easier. bitcoinpaperwallet.com is one of the best and includes a good tutorial about how to use them.

* The bitcoins are not actually in the wallet, they are still on the web. In fact, the outside of the wallet will have a QR code that will allow you ship coins to the wallet any time you like.

* The sealed part of the wallet will have the private key without which you cannot access the coins. Therefore, only put as many coins on the wallet as you want to be inaccessible. You will not be able to whip this thing out and take out a few coins to buy a cup of coffee. Rather, think of it as a piggy bank. To get the money, you have to smash it. It is possible to take out smaller amounts, but at this point the security of the wallet is compromised and it would be easier for someone to steal the coins. Better to have them all in or out.

* People who use paper wallets are usually security conscious, and there are a number of ways for the nefarious in the world to hack your computer. Bitcoinpaperwallet.com gives a lot of good advice about how to print your wallets securely.

Some people have also asked about buying bitcoins on eBay. Yes, it is possible, but they will be far overpriced. So, selling on eBay might seem to be a better option given the extreme markup over market value you might see. But, as with anything that is too good to be true, this is too good to be true. As I will explain in the next section, selling bitcoin this way is just way too risky.

How Not to Buy Bitcoin

In the next section, I am going to explain a couple of key points about buying from Bitcoin Exchanges. Before I do, let me give you a warning.

A short history lesson: When people first started setting up actual business based on bitcoin, they used all of the tools available to any merchant. They sold by credit card and PayPal. The problem with this business model was quickly spotted: bitcoin transactions are not reversible by anyone except the recipient of the money. Credit cards and PayPal have strong buyer protection policies that make it relatively easy for people to request a chargeback. So, nefarious individuals realized this and began making purchases of bitcoin and then sooner or later requesting a chargeback. And, since bitcoin is a non-physical product, sent by new and poorly understood technological means, the sellers were not able to contest this. Because of this, sellers stopped accepting credit cards and PayPal.

This was a big problem for the currency: How to move money between buyers and seller? Some business emerged that would credit you with bitcoin if you wired them money. Very often these businesses would give addresses in Albania, Poland, or Russia. The fact is that many of these did work and there are a lot of stories on the forums of people who bought bitcoins this way. But it took a lot of time and in the meantime the buyer just had to bite his or her fingernails wondering if they would get their bitcoins or kiss their investment goodbye.

I expect that as bitcoin becomes more acceptable and valuable, we are going to see a version of the Nigerian Prince scam. So the warning is this: we now have exchanges and other businesses that allow for moving money easily onto and off of exchanges. Never wire money for bitcoin. It was a short-lived, and well-forgotten, moment in the history of bitcoin.

Bitcoin Marketing Strategy

Successful Bitcoin Marketing often results from innovative businesses simply accepting payments to open up new niches. In last years, Bitcoin and other crypto currencies appeared and marked their territories, helping many businesses to grow too. Many companies benefit themselves with (almost) non-existent fees and (almost) inability to roll back transactions.

So, by accepting Bitcoin and other cryptos was a good challenge for some business. Let’s see some of them.

Bees Brothers

The story behind Bees Brothers foundation talks about three brothers learning how to create bees and farm honey. So, something started almost like a hobby became a money making opportunity. This eventually led to accepting Bitcoin for online purchases, being that it has no fees and is a very safe method for accepting payments (with no charge-backs), and their business exploded from there.

And, while that decision was very important to their business, it was important for own Bitcoin too, strengthening it. It is a win-win for everyone.

Expedia

This big booking travel website started to accept Bitcoin as payment method too. They tout over 290,000 bookable properties. As of yet, airline tickets and car rentals are not able to be paid via Bitcoin, but they have stated that they are working on it.

Expedia didn’t publish how much Bitcoin acceptance impacted its revenue, but they affirm they traced some estimates before. And, according to company, by accepting Bitcoin brought results better than they expected.

Dell

Dell is a major computer company that pretty much everyone should already be familiar with. By accepting Bitcoin as a payment method brought more attention to – both your company and that crypto currency.

It’s hard to say exactly how their business accepting the coins is going to affect them, but it is important to take into consideration the fact that their clients largely include computer experts and other knowledgeable people. In other words, it’s hard to go wrong with accepting Bitcoin as a technology company.

As of yet, no information has been released as to what effects the move to accepting Bitcoin has had on Dell, though it is safe to assume it is going to at least be helpful. Even if the sales for the business don’t increase, every sale that happens through Bitcoin means less money is lost due to fees and fraud.

Why Bitcoin is Useful for Businesses

If you still have some doubt about accepting crypto currencies as payment method, maybe you didn’t understand the main motto. They offer reliable payments (that can’t be reversed or be found to be fraudulent), low fees (the acceptor pays absolutely nothing on their end) and quick transfers (there is no waiting for days or weeks to get the funds in).

So, it can increase productivity, profitability and security of any business. On top of this, all funds that are taken in are held by the businesses themselves, rather than having to wait for a third party to release (or not release) them.

As more and more businesses jump on board with Bitcoin, it will help push others to get in on it as well. And, consequently, it’s good for crypto community too, creating a real market around it – becoming it a real currency.

Unfortunately, many businesses didn’t realize the benefits of accepting crypto currencies like a payment method. But, it’s just a time’s sake, and while economy grows solidly, startups and old companies will realize that crypto transactions can be a great choice.