Bitcoin

Will Bitcoin’s Rebound Return to Previous Heights?

May 14, 2018 By Tamila McDonald Leave a Comment

Bitcoin is rallying again: Over the past few weeks, the value has risen from below $6,700 in April to just shy of the $10,000 mark. However, it still has a long way to go to reach the high of more than $19,000 reached in December. The question now is: Will Bitcoin continue to rise?

Will Bitcoin Continue to Rise?

To understand whether Bitcoin will continue to rise, you first need to know why it fell so dramatically in the first place.

Over the past year or so, the cryptocurrency landscape changed. Countries began exploring regulations, and banks began restricting the use of credit cards to purchase cryptocurrencies.

Overall, these developments harmed Bitcoin and other cryptocurrencies that are available today. But then things turned around more recently with some positive events that sent the value back up again.

Positive Developments

Among the more significant of them, Goldman Sachs stated it was working on setting up a desk for cryptocurrency trading.

Regulators have also required cryptocurrency exchanges to register with entities like the Securities Exchange Commission, which provides stability and increases confidence among investors.

Intercontinental Exchange, which owns the New York Stock Exchange, is also working on a trading platform for cryptocurrencies, representing a significant step forward for the industry.

Ultimately, Bitcoin’s value is a reflection of supply and demand. And when investors’ confidence in the currency goes up, that usually brings up demand too. If all of these trends continue, Bitcoin just return to its previous highs.

But Are Bitcoin Investments Safe?

Even though Bitcoin is recovering, that doesn’t take away any of the risks. Cryptocurrencies are still relatively new, and there’s a lot yet to be worked out. For example, further regulation changes could hurt the market.

Similarly, some other types of cryptocurrencies have turned out to be scams, and this hurts the overall perception of them, impacting demand for Bitcoin.

Additionally, it’s important to remember that Bitcoin and other cryptocurrencies still aren’t backed by a government or a physical commodity. Without that backing, if prices tumble and the cryptocurrency fails, you lose your money, and there’s no way to recover it.

In the end, Bitcoin is still a very high-risk investment.

So Is Now the Time to Invest in Bitcoin?

If you’re comfortable with the risk, then now may be a good time to invest in Bitcoin. However, it shouldn’t be the only thing you invest in.

Committing your entire retirement savings to cryptocurrencies would be incredibly dangerous. It wouldn’t be unlike taking all of that money and heading to a casino.

But, there is some potential. If you have a bit money to spare and aren’t afraid to lose it all, then you could have a lot to gain if Bitcoin keeps going up.

Just make sure to be smart about how much you invest, because it could all be gone in an instant.

Readers, have you been curious about investing in cryptocurrencies? Tell us about it in the comments section beneath this post.

Looking for more articles about Bitcoin? Give these a try:

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Anonymous Crypto Exchanges

April 23, 2018 By Susan Paige Leave a Comment

anonymous cryptocurrency exchanges

Demand for decentralized crypto exchanges seems to be on the rise. Governments around the world are cracking down on centralized exchanges and demanding that they enforce anti-money laundering rules. Most exchanges feel threatened and some have already started closing down.

A lot of crypto traders are also against the idea of governments regulating exchanges, and they are looking for alternatives. Decentralized exchanges seem to be an ideal option for many traders who want to trade anonymously. However, there are also several centralized exchanges that require no registration or verification of any kind. Here is an overview of the most private crypto exchanges and how they operate.

Peer to Peer Exchanges- Buy in Cash

The easiest way to buy bitcoins anonymously is to use cash. Access a website like Localbitcoins.com and look for a customer willing to buy bitcoins in cash within your locality. Local Bitcoins holds the coins in an escrow account until the seller confirms they have received the payment. Since you will be using cash and trading with a stranger, none of your personal details will be used anywhere. However, keep in mind that buying or selling Bitcoins with cash has several limitations:

Safety- how much cash can you carry when meeting a stranger? Buying bitcoins is not safe, especially where large sums of money is involved
Liquidity- in most P2P exchanges, traders sell low amounts of coins. On Localbitcoins, for example, it’s hard to find someone willing to buy more than 50 Bitcoins
Trust-buying cryptos on P2P exchanges means you have to trust other traders to honor their side of the deal, and this doesn’t always happen

Centralized Anonymous Exchanges

Some cryptocurrency exchanges offer a great deal of anonymity when trading on them. Take ShapeShift, for example. The exchange is owned by Erik Voorhess, an American. ShapeShift works as an altcoin exchange that can be used as an API on a wallet, as an app or as a web-based exchange. ShapeShift offers one of the easiest ways to trade coins while keeping you anonymous.

To use the exchange:

Visit ShapeShift
Select the cryptocurrency in your wallet
Select the altcoin you want your cryptos exchanged to
Enter the amount of cryptos you need exchanges and appropriate wallet addresses
Visit your personal wallet and initiate the payment to an address provided by ShapeShift
Expect to receive your converted coins within hours

Flyp.me

Flyp.me is one of the most private exchanges. Like ShapeShift, this exchange is owned by someone. However, it’s designed in such a way that you control your trading activities. You hold your cryptos in a personal wallet and only use the exchange to buy and sell altcoins. You don’t need an account or verification of any kind.

Thanks to its focus on giving your privacy when trading, there is little chance of you losing cryptos to the exchange. Flpy.me can’t suspend your account because you don’t need one. In the unlikely case, the exchange gets hacked, you still wouldn’t lose your cryptos because they don’t store cryptos for you. The only issue you would have trading on the exchange is delayed payments, like when the Bitcoin blockchain is overloaded.

Changelly

Changelly and ShapeShift go hand in hand. They work in the same way, allowing you to exchange altcoins instantly with no verification needed. Like ShapeShift, Changelly can be accessed online, on apps or on their partnering crypto wallets and sites. The only difference between Changelly and ShapeShift is their owners. While Erik Voorhees own ShapeShift, Changelly is owned by MinerGate, a mining pool for Bitcoins.

Changelly also asks for registration; an email address where a password is sent to help you secure your account. Other than that, there is no verification required even when buying cryptos using fiat on the exchange. Using Changelly works in more or less the same way as on ShapeShift.

Decentralized Exchanges

In the spirit of decentralization, some exchanges allow traders to participate in managing the exchange through computer nodes installed in different parts of the world. This way, decentralized exchanges cannot be regulated or be required to enforce anti-money laundering rules. They don’t require users to create accounts or give in any form of personal information.

Traders on decentralized exchange trade with utmost anonymity. Despite this, however, decentralized exchanges have issues as well. Some exchanges are often criticized for poor management. Because the exchanges are still involved in the trading process, poor management of poorly programmed codes can affect efficient trading on the exchange.

BitShares

BitShares is a popular decentralized exchange built on a blockchain-graphene. The exchange requires users to create a simple account but no further verification is required. The exchange ranks 83rd on Coinmarketcap.com and has a daily trading volume of $7.7 million. BitShares lists a wide range of cryptos as well and allows trading with fiat currency. Keep in mind, however, that verification may be required when buying large amounts of Bitcoins using fiat.

Etherdelta

Etherdelta was among the most popular decentralized crypto exchanges in 2016 and 2017. The exchange was designed to cater for Ethereum and ERC-20 token traders. It’s built with smart contracts and the ethereum blockchain in mind. While Etherdelta allows you to make trades while remaining anonymous, it’s affected by all issues currently facing decentralized exchange.

Slow trades- Trades on decentralized exchanges have to go through blockchains, and this can take hours for a trade to be completed
Not user-friendly- many decentralized exchanges are not easy to use, at least not to beginners
Possibility to make mistakes- due to lack of ease of use to beginners, a lot of traders make mistakes when trading, often losing their funds
High Fees- most decentralized exchanges offer higher than average fees, which can be inconvenient to low-volume traders
Most decentralized exchanges are dependent on the Ethereum blockchain. If anything happens to Ethereum, it may affect a lot of trading on decentralized exchanges.
Low Liquidity- since decentralized exchanges are still a new thing, they have low liquidity compared to other types of trading platforms

What’s the Best Exchange with great anonymity? It’s difficult to decide the best exchange. If you want to trade cryptos anonymously, you have to research more and make the choice on your own. However, keep in mind that a centralized anonymous exchange like Binance or Flyp.me will be easier to use than a decentralized exchange.

How Do I Earn Money Fast and Securely Online?

March 21, 2018 By Susan Paige Leave a Comment

Making money has always been the driving force for most of us. We are driven to always look for new and innovative ways to earn that extra penny. Therefore in the search for more money, more and more people have come up with more and more ways to earn money. Thus the conception of the idea of making money online.

There are various forms of online businesses that one can rely on to earn a living or merely make more money on the side. A perfect example of an innovative online company would be a custom term paper writing online service. Online writing has become an alternative or supplementary source of income for most industry professionals.

However earning money is only half the battle, getting paid on the other hand is a challenge for some. For one to get paid online, you have to have any one of the conventional payment systems available and acceptable by online writing companies.

Most, if not all, of the time these conventional payment systems such as banks often charge large levies on your hard earned money just to allow you to transact with them. As such you only get a fraction of what you have worked for. What if I could tell you, with Bitcoin you can overcome all the challenges you experience while transacting online.

Bitcoin is an ideal and relatively new technology that can be used by an individual as a simple way to transact online at minuscule costs. Also, businesses prefer to use Bitcoin as a mode of payment because it is an economical option of handling payments online. Bitcoin has also been integrated into various organizational structures to facilitate day to day activities. Bitcoin is a new kind of currency created in 2009 by an unknown developer and released to the public, for free, by an individual using the code-name “Satoshi Nakamoto.”

What Is Bitcoin Why Is It A Big Deal

Bitcoin was conceptualized during the collapse of the US financial and economic markets, when an inventor and software developer released a paper on Bitcoin, terming it as a viable P2P payment system. For now, Bitcoin can only do so much in the current markets and is still a long way from competing with world currencies such as the US dollar ($) and euros (£).

However, Bitcoin is on the right track, and that is why it has caught the attention of so many people who have considered it a world-changing technological breakthrough. Therefore this is why Bitcoin as a crypto-currency, matters and what needs to happen for it to succeed. Bitcoin offers users a new and innovative payment system.

The system operates without any centralized authority; that means no middlemen such as banks or any other financial institutions. Bitcoin is so popular due to it lacking a centralized authority, which ultimately means that you do not have to pay intermediaries to get your earnings. The network collectively manages the managing, transaction and the issuance of bitcoins. Nobody controls own or can lay claim to the design of bitcoin.

Another contributing factor that could explain why Bitcoin is so popular is because of its use as a universally accepted mode of payment for both products and services rendered and received. Bitcoin has surpassed most previous payment systems through its many exceptional properties not limited to anonymity and global acceptance as the leading factors. With bitcoin, you can pay for your hotel room, buy Xbox games, and shop for furniture… you catch my drift.

But there is a catch, the service provider or employee must be willing to accept it as a mode of payment. You can pretty much do anything with bitcoin, and best of all no hefty conversion fee that is usually charged by financial institutions who are in it to make a profit from the transactions you make.

As a way of introducing the currency to the people, mining the crypto-currency has been made easier. One is required to set your clients to a specific node and decipher a puzzle. Successfully deciphering the puzzle earns you 50 Bitcoins. The Bitcoins awarded are sourced from the small fees charged on verified transactions on the network.

Is Bitcoin Legal Currency Worldwide?

By definition cryptocurrency, such as Bitcoin, is a digital currency that employs various encryption methods to regulate its generation and also verify transactions. All these operations are independent of a centralized banking system and not monitored by any financial bodies. Bitcoin provides an outlet for decentralizing personal wealth that is beyond scrutiny, constraint, and confiscation by any government or security agents.

The legality or illegality of Bitcoin varies from one country to the next as either undefined or changing. A majority of the global economy does not make the use of Bitcoin illegal. However, its status as money is faced with regulatory implications while in others it’s openly accepted. You are permitted to use Bitcoins in the US, provided the transactions are taxed, and reporting is done; as is the case with any other financial institution in the US.

Perhaps the most notable of all of Bitcoin’s features is that the economics of the currency is not controlled by any one individual, institution, organization or even government. The economic functions are embedded into Bitcoin protocols developed by S. Nakamoto. Nonetheless, it is due to the uncertainty of the supply and lack of government control in the use of Bitcoin, that it is not considered a legal currency. Some authorities, such as the government of Ecuador, have gone as far as banning the cryptocurrency and others like it.

Why Is Bitcoin Prevalent As A Preferred Online Payment Method?

Bitcoin has taken the world by storm as being the simplest way to transact and interchange money with the added benefit of having most of the overhead costs slashed. The most crucial aspect that Bitcoin is its decentralized nature, though this has been the reason for it being banned in several countries worldwide. The reasons why Bitcoin became popular is mostly as a result of its characteristics. They include;

Availability at any time and any place
Easy setup as a mobile payment system
Anonymity, transparency, and security
Fast and reliable international payments
Miniscule and manageable fees
Has a wide range of applications

How Do I Earn Bitcoins As A Writer?

While working as a writer, there are various ways in which you can get your hands on some bitcoins; the first and obvious method is to mine them yourself by completing complex mathematical puzzles. This task is tedious and not preferred by most. On the other hand, you can visit online marketplaces known as “Bitcoin Exchanges.”

On these marketplaces, writers can buy any amount of bitcoins online using different currencies, probably earned from your work as a writer. Online writing companies have come to embrace the use of cryptocurrency and offer their writers the option to get paid with Bitcoin. The recipient need only have a digital wallet, stored in the cloud or on their computer as a kind of virtual banking system, to help him or she receives payments in the form of Bitcoins.

What Are The Different Payment Methods For Buying Bitcoin?

March 15, 2018 By Susan Paige Leave a Comment

Bitcoin is the most popular cryptocurrency and the biggest by market capitalization according to statistics on CoinMarketCap.com. Although the current BTC price of over $10,000 is lower than it was at its all-time high of $20,000 in December 2017, it’s still quite appealing for investors who believe the coin will reach mainstream adoption. If you are new to the cryptocurrency world, then it would be good to know that there are different payment methods for buying Bitcoin.

Buying bitcoin entails exchanging local fiat currency for this digital payment currency. For that reason, exchanges that allow you access to various methods of buying BTC will also indicate different payment methods.

This is important

One important piece of information you need to have is that authorities are getting very tough on Know-Your-Client (KYC) and Anti-Money Laundering (AML) regulations. As a result, most of the sites that provide bitcoin buying services have put in place measures to ensure you verify the authenticity of your account details. As such, you will be asked to provide details like a valid photo of yourself, a valid ID/DL, and sometimes utility bills as proof of residence/address.

The most common payment methods include credit or debit cards, bank wire transfers or bank accounts, and cash. There are a few sites that allow you to buy bitcoin with PayPal.

Here’s is a brief overview of the above payment methods suitable for buying Bitcoin.

1. Credit or Debit Card

Credit/debit cards offer one of the most common methods of payment when it comes to buying Bitcoin at exchange sites. It is popular because the use of credit or debit cards happens to be common among online shoppers. Buying bitcoin with Credit or Debit card requires that you fund the card and you are good to go.

What are the pros of buying bitcoin with a credit/debit card?

Credit card/debit card is easy and familiar as it is widely used in online shopping.

You can get instant bitcoin buy if you have verified the card.

What are the cons of buying bitcoin with a credit/debit card?

Buying bitcoin with credit or debit cards attract high fees compared to other payment methods.

It doesn’t guarantee your privacy and anonymity due to the requirement that you must verify your account using an ID.

There are many sites that accept Credit/debit card as payment methods when you want to buy bitcoin. The best thing is to check out the sites and compare fees before committing to buy bitcoin.

Some of the well-known sites include the popular US-based Coinbase, Bitfinex, Coinmama, CEX.IO, and BitPanda.

2. Bank Account /Bank Transfer

The use of bank transfer as a payment method for buying bitcoin is one of the most common and widely used methods globally. Many buyers have bank accounts and, therefore, find it easy to transfer funds to their online accounts for the purpose of purchasing bitcoin.

What are the pros of buying bitcoins using a bank account/transfer?

Offers higher buying limits on most exchanges around the world.

It is slightly cheaper compared to credit/debit card. If your bank doesn’t charge high fees, then you will likely incur less on the purchase.

What are the cons of buying bitcoins using your bank account/transfer?

Less privacy and anonymity due to the requirements of ID verification.

It is usually very slow; bank transfers in some countries can take as many as 5 days to reflect in your online account.

Just like I pointed out with the use of credit/debit card, some of the best sites that allow you to buy bitcoin with a bank account or bank transfers include Coinbase, LocaBitcoins, BitPanda, Paxful, Virwox, and Gemini.

3. Buy Bitcoin with PayPal

Buying bitcoin with PayPal is not as easy and straightforward as it may sound. In fact, there’s no way you could exchange your PayPal funds directly with Bitcoin. It is easier and cheaper to buy bitcoin with a bank account or bank transfer than with PayPal. The main reason why PayPal isn’t a popular option is due to the issue of chargebacks. Bitcoin transactions are irreversible, but PayPal is. So, merchants (including exchanges) are a little reluctant to accept this method of buying bitcoin.

However, this doesn’t mean that it is 100% impossible to purchase Bitcoin with PayPal. The process is quite demanding, but it can be done. Sites like Virwox provide a way for you to get bitcoin using funds from your PayPal account. On Virwox, buy Second Life Lindens which you can then use to buy bitcoin. Read this guide to find out you can buy bitcoin with PayPal.

4. Buy Bitcoin with Cash

If you are looking for the fastest and often most private method of acquiring bitcoin, then go for cash deposits. Sites that offer instant bitcoin buying usually prefer cash deposits. With this method, you can buy and access your bitcoin, all within an hour. It usually does not require verification.

What are the pros of buying bitcoin with cash?

Cash deposits offer more privacy because most transactions do not require the buyer to provide personal information

Buying bitcoin with Cash allows for instant buying

What are the cons of buying bitcoin with cash?

Fees charged can rise up to 15% depending on the site. Most sites set a fee of between 5-10%, which is still high.

Chances of fraudulent transactions are very high; you will need to be extra careful with whoever you deal with on the exchange.

If you are looking for the best sites that offer you a chance to buy bitcoin with cash, then consider the following reputable platforms: localBitcoins, Paxful, BitQuick, and Wall of Coins.

5. Bitcoin ATMs

Bitcoin ATMs work more like normal automated teller machines; the only difference being you may not withdraw bitcoin from the machine. There are several Bitcoin ATMs located in major cities and suburban areas in over 50 countries around the world. You can buy BTC with cash at a Bitcoin ATM.

To access a bitcoin ATM in your location, use Coin ATM Radar.

What are the pros of Bitcoin ATMs?

Provides some degree of privacy and anonymity.

It’s a convenient way to get bitcoin without much struggle.

What are the cons of Bitcoin ATMs?

High fees; up to 15% above normal rates in the market.

Conclusion

There are several different payment methods of buying bitcoin around the world. As an individual, it is for you to decide which method suits you. Remember you can also buy bitcoin using international wire transfer, gift cards and an assortment of other online payment systems like Neteller and OkPay. Lastly, once you have bought your bitcoin, keep it away from online wallets that are prone to hacking.

The Cryptocurrency Business: Investment Option or the Next Bubble?

March 10, 2018 By Susan Paige Leave a Comment

The business of cryptocurrencies has been increasing during the last years, creating a universe around them, with a large number of products. There are different types of virtual currencies and they all start from different values. To this day, and studying their behavior, some experts consider them the currencies of the future.

What are cryptocurrencies?

It is a digital means of exchange. That is, buying and selling. The first of its kind was the Bitcoin that was born in 2009 and since then other virtual coins of different value have appeared.

How is the operation of cryptocurrencies?

This monetary system guarantees the security and integrity of the statement of accounts of its value through agents that verify it. These agents protect the value of a cryptocurrency to keep your rate high. Therefore, breaking the security of these currencies is practically impossible. The agents that protect them are professional IT professionals who work to maintain their security. For example, if someone wanted to break this barrier, they would need an operational capacity superior or similar to that of Google.

The cryptocurrency business allows you to save on intermediaries when you want to carry out an operation

There are notable differences between this type of currency and the payment through Paypal. While it is true that they all have their virtual environment in common there are also some differences. For example, the payment with Paypal requires that the process is done through private networks of banks. In contrast, payments with cryptocurrencies do not need intermediaries. Your income goes directly from the buyer to the seller.

The benefits of the operation of cryptocurrencies are:

– Reduce transaction costs.
– Reduce management time. The settlements are made automatically.
– It does not require a financial agent to review the good conduct of the operations.

Bitcoin, the best-known one

Bitcoin is the best-known electronic currency so far. It is a coin without owners. Acts in a decentralized manner it is a cryptocurrency that is produced by people and companies that are dedicated to mining resources (the famous “cryptocurrency miners”, who are not humans but machines). The agents that work to create them use a security system that makes their forgery impossible.

Other characteristics of bitcoin are that its transactions are irreversible and that in its realization the identity is not made public, therefore it can be operated while maintaining privacy.

The cryptocurrency market never stops. The price of its value is in constant movement so specific traders are needed to control its value. If you are someone who wants to take risks in price fluctuations of a commodity then bitcoin (or other cryptocurrencies) is an area that suits you.

You need to know the best cryptocurrency exchanges before joining the business world of cryptocurrency. Maybe you should spend a lot of time researching but you will get a good result then. But if you do not pay investment time before investing in cryptocurrency then you might be stuck in the wrong investment.

When Do You Pay Taxes on Bitcoin and Other Cryptocurrency?

January 24, 2018 By Jackie Cohen 3 Comments

pay taxes on bitcoin Taxation of bitcoin and other cryptocurrencies is pretty similar to the way you pay taxes on any other type of investment — and regulators are slowly but surely making it harder and harder to evade this type of tax.

You pay capital gains taxes when you sell a cryptocurrency like Bitcoin, whether you harvest into dollars or any other currency.

If you had held the cryptocurrency for less than a year, the sale is taxable as income tax; hold it for more than a year before selling it, you pay the capital gains tax rate, which is lower.

Pay Taxes on Bitcoin

The only thing related to cryptocurrency that you need to report to the Internal Revenue Service concerns sales of cryptocurrency into any other currency — you get to declare a loss or a gain.

(If you own any cryptocurrency funds and they paid dividends, you’d have to pay taxes on those dividends — but it’s highly unlikely that a cryto fund would be paying dividends anytime soon.)

You report this activity in Schedule D of your tax return; there you input the difference between what you paid for the currency and what you sold it for — if you made money, it’s a capital gain and if you lose money it’s a capital loss.

The IRS Always Knows

Like it or not, the IRS will eventually get wind of your crypto trading profits, as it is now privvy toinformation from any U.S. exchange you might have transacted on; the agency essentially won the right to this data in court in November.

Spare yourself the interest and penalties you might end up owing from attempting to not report capital gains on cryptocurrencies — the IRS typically takes at least six months to catch up on nonpayments, so you’ll end up owing extra money as interest or penalties.

And even if you did a cryptocurrency transaction on a site that is not based in the U.S., and even if you move the funds into a currency other than the dollar, these sites aren’t immune to the tax treaties that the IRS has already been brokering with foreign countries.

It might take longer for the IRS to obtain information on activities on foreign sites, but eventually the prevailing trend in the IRS’ fact-finding will play out here as well.

Although cryptocurrencies’ origins included a lack of real taxation on them — and policies to support that — slowly but surely regulators around the world are making it harder for people to dodge this type of tax.

For more information on how the IRS handles cryptocurrencies, click here.

Readers, are you still confused about whether there are taxes on bitcoin or other cryptocurrencies?