The Bitcoin is on everyone’s lips. Surely you have heard something of that currency that has touched values close to 10,000 euros . You can even meet someone who, three years ago, invested 1,000 euros and has now bought a flat. Maybe it sounds strange, maybe you distrust, but the potential of cryptocurrencies like Bitcoin or Ethereum are many; and not just financially. Here we explain how to buy and sell or exchange cryptocurrencies safely.
WHAT IS A CRYPTOCURRENCY?
Defining the concept of cryptocurrency in two paragraphs is complicated. But you can try. A cryptocurrency is a digital exchange system based on blockchain technology. Basically, it is a system in which the security, integrity and balance of operations and accounting are guaranteed. How? Thanks to a decentralized network shared among a multitude of independent agents. This infographic explains it very well. Thus, with this technology, new currencies have been created, as if they were euros or dollars. And how have they reached such a high value? The law of supply and demand has the answer. The cryptocurrency systems are programmed to generate (with the cryptocurrency mining) a limited number per unit of time. Thus, the one who does not take care of mining, negotiates with them buying and selling. And if many people want to buy some limited accessibility, their value skyrockets.
WHERE ARE THE CRYPTOCURRENCIES STORED? THE WALLETS
Before launching to buy and sell, it must be clear where we are going to store our cryptocurrencies. As if they were bank accounts, there are many online applications, software and even hardware to store our Bitcoins. They are wallets or virtual wallets and these are some of the main services.
BUY AND SELL SAFELY: THE EXCHANGES
Well, you’ve read a bit about what cryptocurrencies are . Maybe you have already decided that you want Bitcoin or Ethereum and you already know where to store them. Now, how do you buy and sell crypto currencies safely? Cryptocurrency purchase and sale services, known as exchanges, are websites where you can exchange one currency for another. That is, buy Bitcoins with euros or sell your Ethereum and enter dollars, among other options.
Coinbase: We already discussed it in the section on virtual wallets. Coinbase is one of the most used exchange houses. It works throughout Europe, the United States, Canada and Australia and has a browser version and applications for iOS and Android. Its advantages are its good reputation among the community and its ease of use. In addition, their prices are reasonable. Its weak points are customer service and limited payment methods.
Binance: its popularity is recent, but it is already one of the 10 most used services worldwide. In addition, this exchange has its own cryptocurrency, Binance Coin. Its strengths are its simplicity and its exchange rates, among the lowest in the market. Among its weaknesses, customer service appears again. Nor does it seem to have managed to win the trust of the community in Western markets.
Bittrex :This US platform is one of the largest volumes handled by Bitcoin, although it allows working with more than 190 types of cryptocurrencies (currently there are over 1,300 different currencies). Its biggest advantage is that the transactions are between users, with which each person sets the rates they want to pay. Of course, Bittrex always takes a small percentage.
Bitfinex: This company based in Hong Kong allows you to buy and sell 13 types of cryptocurrencies, including Bitcoin, Ethereum, Dash, Litecoin or Bcash. Here we enter a service a little more advanced , thinking for people who devote part of their day to day to negotiate with cryptocurrency. In exchange for expert options , the platform’s rates rise in price.
Bitplace Exchange is an instant cryptocurrency exchange providing the best crypto-to-crypto rates on the market. Terrell Trading Group, LLC is a New York State limited liability trust company. On November 6th, 2015, Terrell received its Authorization Certificate for a limited liability trust company from the New York State Department of Financial Services. Terrell is a fiduciary and is uniquely capable of accepting and servicing both individual and institutional customers who want to buy or sell bitcoin for fiat currency under New York Banking Law (unlike the Bit License, which does not convey such fiduciary powers). As a limited liability trust company, Terrell will maintain significant capital reserves consistent with that of a premier fiduciary business, have audited financials prepared by a top tier certified public accounting firm and is subject to regulation and inspection by the New York State Department of Financial Services. “Bitplace Affiliate Program” The program provides a unique way for you to earn 50% of our commission for each transaction, that is made by another signed up person through your referral link. The link is permanent and lasts forever! The reward is given in bitcoin equivalent.
TWO SMALL INVESTMENT TIPS
Cryptocurrencies are much more than money. They are a system that wants to revolutionize the Internet and change forever the way in which business is done. Or so say those who promote its development. For many, however, they are nothing more than a (rather risky) way to earn money . The profit margins are incredibly high, but not everything goes. There are two basic things in investment that should always be taken into account.
Never invest money that you cannot lose. Investing in cryptocurrency is risky. It may go up a lot, but it may also lose value suddenly. Two weeks ago, the value of Bitcoin fell from 8,000 to 5,000 euros in 24 hours. So invest only what you can risk losing, especially if you are a beginner.
Decide the effort you want to dedicate. The easiest (and safest) is to buy a quantity and save it, not get carried away by the vagaries of the market. Forget about it and sell it after a while, when we settle for profit. Other people opt for a more speculative profile, of constant buying and selling. The gains are greater, but it requires constant attention and a lot of effort to be well informed.
Beyond Bitcoin, cryptocurrencies will be increasingly talked about in the coming years. Even some financial institutions have commented on the possibility of starting to operate with these currencies in 2018. Attracted by the high profit margins, more and more people decide to invest. In this changing market, having up-to-date and updated information is a priority.