There are quite a few exchanges as well as industries which are using Bitcoins as the default currency. Instead of just holding, you can deposit your Bitcoins on these websites on a daily interest. You can also withdraw your Bitcoins whenever you need them. Thus, instead of keeping the Bitcoins as it is in your wallet, you can opt for depositing the Bitcoins in these investment websites in order to get a consistent return.
We would today share with you some such options which would help you in investing your Bitcoins.
This particular website allows you to lend to other businesses as well as individuals using Bitcoins. Depending on the credit rating of the borrowers, you would be able to get interest on the Bitcoins which you are lending. This website is a form of peer to peer lending only the currencies in the form of Bitcoins.
This website offers you a return in the range of 15% on a monthly basis when you’re depositing your Bitcoins. They use the Bitcoins for trading purposes. They also provide you with a secure and easy interface when you’re depositing your Bitcoins or withdrawing your Bitcoins through this website. The website is consistently trading in different crypto currencies as well as Bitcoins. Owing to this very reason, it needs as many Bitcoins as it can get. That is why this is a good option when you’re trying to invest Bitcoins.
This website offers a platform for crypto currency trading. That is why they are looking for Bitcoin deposits. You would be able to get a monthly interest on your Bitcoin deposits. Currently, they are offering a very high-interest rate on Bitcoin deposits. That is why you should research very well before investing with this website.
This company is registered in the United Kingdom. They use Bitcoins to trade in stocks as well as other crypto currencies. They offer you up to 3% on a daily basis. They have different plans depending on the number of days for which you want to invest.
As you can see, when you’re looking for top Bitcoin investment sites, you have to look into these few options. You have to research the top Bitcoin investment sites carefully and after that, you would be able to get the correct website through which you would be able to earn interest by depositing Bitcoins.
Cryptocurrency is a digital electronic that’s not issued by a government, unlike traditional currencies; but rather created electronically as the generation of cryptocurrency units. The verification of transaction processes is controlled by complex encryption techniques performed by computers instead of a Central authority.
Bitcoin, the first cryptocurrency in the world, was lanuched in 2009 by an anonymous programmer (or group of software developers) who goes by the pseudonym ‘Satoshi Nakamoto’.
In this article we will be talking about Bitcoin; specifically as it is the first cryptocurrency created and #1 in the world of cryptocurrencies.
But first of all, we need to understand what distinguishes bitcoins; (or Cryptocurrencies generally) from conventional currencies and what are their distinctive properties.
So what makes Bitcoin or Cryptocurrency so unique?
Bitcoin is characterized mainly by being digital as it is produced by computers through a process that’s called “Mining”; which involves complex encryption techniques and has no physical properties.
“Bitcoin Mining” is the definition given to the process through which bitcoins are generated and the transactions are added and verified. ”Mining” is performed by special fast computers solving complex mathematical problems; using the appropriate software in order to create or “mine” bitcoins and get rewarded with bitcoins in return.
For each block that is generated the miner is rewarded with 25 bitcoins. This value is halved every four years until all bitcoins are mined (yes the total number of bitcoins to be ever mined is limited).
In the current financial system, central banks along with other political institutions are responsible for controlling and regulating the processes of monetary units generation.
On the other hand, Bitcoin is a decentralized cryptocurrency as the process of its generation is not controlled by any government or central authority. The supply of bitcoins depends solely on the efforts exerted by the miners.
Bitcoin is a virtual currency, as the private keys for your bitcoin addresses (which are used to access your bitcoins) are stored in digital wallets.
So a Digital Wallet is the first thing you need to have in case you want to buy bitcoin. There’s a variety of digital wallets to choose from.
You can have your digital wallet on your desktop or on your mobile or have an online digital wallet, or you can have it as a physical device (which is considered by many to be the safest and most secure storage option.
Another options for bitcoins storage include storing at an Exchange (which offers several services as well like exchanging, sending and receiving bitcoins) and there are many competing Exchanges and wallet providers at the moment so it won’t be difficult to find one nearby.
Bitcoin is a peer to peer currency, meaning Bitcoin operates on a network of user based computers, and the bitcoins are transferred from one party to another across the internet with no 3rd party needed for the transfer process to be completed but the whole network nodes are responsible for monitoring and verifying the transaction process and that is the main idea of the Bitcoin mechanism.
We mentioned before that miners and the connected nodes of the network are responsible for monitoring and digitally regulating the transaction processes that take place between senders and receivers.
And as we know now, bitcoins are stored in digital wallets. Each of these wallets has a unique private key used and known only by the user and a public key which is considered to be the user’s payment address.
In order to understand how transactions work, there are 3 main parameters that are needed to be known and specified for a transaction process to be initiated
The address of the bitcoins sender
The address of the bitcoins receiver
The amount of bitcoins to be transferred from the sender to the receiver
The transaction carries a digital signature that is produced when the private key of the user is mixed with the data he wishes to send in a mathematical algorithm and each transaction has its own digital signature.
When sender “A” decides to send an amount of bitcoins games to receiver ”B” through Internet, the transaction with its data is combined with other requested transactions that are requested at the same time to be recorded in what’s called a “Block”.
Each block has its unique ID, time of the process and a reference to prior block.
The block is then broadcasted to each node in the network.
For a transaction process to take place, all the nodes of the network have to confirm the validity of the process and the authenticity of the digital signature using the public key of the user. This process also prevents
double-spending from taking place making Bitcoin a safe middle of exchange.
Once verified by the nodes of the network, the “Block” representing the transaction is then added to what’s known as the “Blockchain” which is a distributed public ledger shared by all the nodes of the network and functions as a database where all the transactions process are stored.
We can think of a blockchain as a giant ledge containing all the transactions that ever happened. Once a block is added to the blockchain, it cannot be modified nor can it be removed.
“We define an electronic coin as a chain of digital signatures. Each owner transfers the coin to the next by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. A payee can verify the signatures to verify the chain of ownership.” – Satoshi Nakamoto
How to acquire bitcoins?
Currently there are two methods to get bitcoins:
1 – Become a “Miner”: which is not recommended if you are a beginner as it requires expensive efficient mining hardware (like FPGAs and GPUs) for the mining process to be profitable because using slow CPUs is not a practical solution at all considering its poor output with respect to time.
2 – Buy them: You can buy bitcoins through an Exchange or online by yourself using your fiat money or credit card, but, as we mentioned earlier, you will need a wallet in which your bitcoins can be stored.
At the Exchange, things work the same way they work at Stock Exchange, a buyer offers to purchase an amount of bitcoins with the price that he wants to pay for each bitcoin, and a seller offers to sell an amount of bitcoins with the price at which he wants to sell each bitcoin.
When the price placed by a buyer matches the price placed by a seller a trade takes place automatically.
And this how the price of a bitcoin is determined (At least for now because the number of bitcoins generated is still increasing and will continue to increase till all bitcoins are mined, after that the value of the bitcoin won’t rely really on its Supply but might rely on its Scarcity or on other variables) with the exchanges being responsible for organizing the trades between buyers and sellers and fixing the price of bitcoin according to the supply and demand of the cryptocurrency.
Here’s a list of some famous Bitcoin Exchanges by country:
The United States
Bitstamp: recommended because of the low trading fees it imposes on Bitcoin trades
Coinbase: one of the top Bitcoin exchanges that offers wide variety of services including: storing, exchange, buying and selling bitcoins and other cryptocurrencies like Litecoin and Ethereum as well. It operates in 32 countries.
Cryptsy: platform that offers its services for different cryptocurrencies and not just Bitcoin.
Kraken : operates in the U.S, Canada, the E.U and Japan.
Peer to peer bitcoin lending platforms are places for the borrowers to borrow bitcoins and the lenders to lend bitcoins to borrowers at specific interest rates. As the name suggests, these are peer to peer networks; where the files and data are sent to and from nodes; without the need of a central server which provides security to the clients.
Peer to peer bitcoin lending platforms offer lenders relatively high monthly interest rates that range from 3% to 8%.Though Lenders don’t pay fees, however borrowers do (but they are considerably low).
And in case you’re looking for low-risk options, you can open a bitcoin saving account, deposit any amount of bitcoins into your account and earn interests.
Here the three current best peer-to-peer bitcoin lending platforms:
1-Loanbase : Based in San Francisco and launched in 2013; Loanbase is considered to be one of the world’s largest peer to peer bitcoin lending platform. Borrowers and lenders from all over the world meet there to borrow and lend bitcoins.
2- Bitbond : founded by CEO Radoslav Albrecht, Bitbond is one of the safest peer to peer bitcoin lending platforms. It has facilitated bitcoin loans for more than 1,500,000 USD and has over 80,000 registered users. It has the AutoInvest tool which makes auto-investing easier.
3- BTCPop : Based in the UK, BTCPop is the world’s largest peer-to-peer bitcoin lending platform , it operates in over 60 countries and it is the first Bitcoin bank in the world!
Bitcoins can be used in games and they can be mined too by playing games. There are two types of games that involve the cryptocurrency: Mining games, where you play mobile games, solve puzzles , and answer questions to get bitcoins in return,however you don’t really earn that much from mining games but in the end of the day you play games and get bitcoins in return so it doesn’t sound bad!
Here’s a list of the best Bitcoin Faucets
And there are Gambling games and Casino games like Poker, where you use bitcoins instead of traditional money.
Challenges facing the fast-growing cryptocurrency
Bitcoin and cryptocurrencies face a number of massive challenges due to their unique characterstics.
The biggest challenge with Bitcoin is the extensive energy consumption of Bitcoin mining process. According to Digiconomist, the amount of energy consumed in Bitcoin mining process combined with the amount of energy consumed in Ethereum mining process exceeds the amount of electricity used by Jordan , Syria, and Iceland all combined. However ,according to researchers, modifications to the PoW systems is one way to reduce high-energy consumption.
Renewable energy sources can be used in the future for the Bitcoin mining process to be more efficient and sustainable.
Since the mathematics behind the Bitcoin system limit the number of the bitcoins to be created; the maximum number of bitcoins to be ever generated is fixed (It is said to be around 21 million); which consequently means that the value of bitcoin will eventually rely solely on its demand which in turn depends on several factors like the trust in the Bitcoin system , the utility and flexibility of Bitcoin as a currency, the investors , the governments, and the energy needed to keep the system going (which one of the major challenges facing the fast-growing digital currency at the moment ).
By the end of 2009, the year in which the bitcoin was launched, over 1.6 million bitcoins have been generated. The number of generated bitcoins increased dramatically to reach 5 million by 2010. And by 2012 the total number of bitcoins that have been mined reached 10 million.
As of April 2014, the total number of Bitcoin users surpassed 2.5 million with a monthly average growth of 5.46%
The number of merchants, businesses and retailers who accept bitcoins as payment is increasing as well. According to Overstock.com Inc. board member Jonathan Johnson , the cryptocurrency transactions processed had tripled since the Internet retailer decided to recognize Bitcoin as a method of payment.
Legal Status of Bitcoin
Many governments have serious concerns regarding the anonymity aspect of bitcoin. Despite the fact that each of the transactions that happen in the Bitcoin system is recorded in a public ledger; the identities and names of buyers and sellers remain secret (except their wallet IDs of course) . While that protects bitcoin users’ privacy, officials are concerned about the possibility that Bitcoin makes money laundry and the transactions in underground economies easier . And unfortunately Bitcoin ,since its creation, has been used widely by criminals to trade illicit goods and fund their illegal activities.
Some governments are working toward imposing regulations on Bitcoin and the other cryptocurrencies, which in turn strengthen the legitimacy of digital currencies. While some others adopted an unfriendly attitude towards the fast-growing digital currency. Russia has taken an action against Bitcoin banning the digital currency and the government prohibited individuals and entities from using cryptocurrencies.
The E.U recognizes the cryptocurrency as a convertible currency. A few days ago, the government of Australia has introduced a bill that would impose regulations on the decentralized global digital currency in an effort to counter money laundering and terrorism funding. And earlier this year, Japan recognized Bitcoin as a legal method of payment.
In China ,the country whose mining pools control about 70% of the Bitcoin network’s hashrate, possession and trading of bitcoins by individuals is totally legal, however the government did not impose regulations in favor of Bitcoin, yet.
For more information about Bitcoin mining in China , check this link. https://www.buybitcoinworldwide.com/mining/china/
In the United States, a congressional hearing was held in November 2013 to discuss the legitimacy of cryptocurrencies including Bitcoin. At the hearing, a federal judge representing the Department of Justice described the virtual digital currency as a “legal means of exchange”.
In March 2014, the IRS (Internal Revenue Service) which is responsible for collecting taxes released guidance regarding possession of virtual currencies, and the guidance recognized “Bitcoin” as “property”. In July of the same year, the New York State Department of Financial Services imposed regulations in favor of Bitcoin. Bitcoin is accepted as a method of payment by many U.S based retailers and companies; such as: Dell Inc, Overstock.com, WordPress , GYFT and Amazon.
In India, there are many Bitcoin exchanges that operate in the country and Indian authorities are researching Bitcoins and holding hearings to discuss the future of the legal status of the virtual currency in the country.
According to Sandeep Goenka , the CEO of Zebpay, the number of Indians interested in investing in Bitcoin is increasing rapidly.
The Future of Bitcoin
The 7 years following the creation of Bitcoin proved that cryptocurrencies have the potential to replace traditional currencies; and could be the next big thing of the 21st century. With their values skyrocketing and rising up after each drop they experience. 2017 was a great year for cryptocurrencies and Bitcoin specifically, as Australia and Japan recognized Bitcoin officially as a method of payment; to impose regulations on the digital currency and the value of promising currency hit an all-time record high climbing above $4500 just a recently.
Bitcoin is still in its infancy and still has a long way to go before it can replace traditional currencies but it did prove that it has the potential to become the future of the financial world.
Interested in bitcoin? Looking for ways to easily earn free bitcoin? Love playing games? How to earn bitcoins playing games? Look no further, because all you have to do to earn free bitcoin is to play a few games online!
It may come as a surprise, but there are tons of websites out there featuring free games that you can play to win bitcoin as a prize. If you’re already playing games in your free time, why not make some virtual cash while doing it?
In this article, we list several different types of games, from quiz to mobile, in which you can play for free bitcoin. If we’ve missed any on this list that you know of, feel free to send us a message or suggestion.
Note: As always, remember that playing games for bitcoin isn’t a way to get rich off of bitcoin. It is, however, a great way to earn a bit of money with a little bit of fun.
Maybe you majored in finance in college or you have an interest in money. Either way, there are some financial games out there that you can use to earn your first bitcoin. One of the most prominent financial games here is SparkProfit.
SparkProfit is a financial simulation game in which you try your hand at making predictions about real financial markets. Imagine trading stock, but without losses and only bitcoins to be gained. And, you can trade in digital currency markets too! In this game, the better you do, the more you earn. Unlock more currencies as your predictions are more successful and build up points. If you manage to become a top trader, you could be earning up to $100 in bitcoins per month!
How to earn bitcoins playing business investment games?
If you’re looking for more money related games, but more on the business side, look into FarmSatoshi. If you’ve ever played Farmville on Facebook, this game might ring some bells. In FarmSatoshi, you grow a farm and look after the animals on your farm. It’s simple to get started – get the game and just follow the on screen instructions to easily gain levels in the beginning.
However, to excel in this game, your dedication and time management skills must be delicately honed. You must constantly be upgrading, completing levels, and keeping your hungry farm animals satisfied by keeping their water, corn, hay, carrots, and grain supply filled. Once you’ve built up a healthy thriving farm, the bitcoins easily follow after.
If you love mobile games for their flexibility and ease of use with your smart phone, then look into these mobile games. The first game we want to talk about is SaruTobi, a game reminiscent of Flappy Bird, back in its day. In this mobile game, you’re an 8-bit monkey called SaruTobi that swings around vines in a jungle, collecting bananas and coins along the way. With the bananas, you can upgrade various tools to propel you and help you get around. Any coins you collect are free bitcoins! Get it in the iTunes store for Free and start making free bitcoins today!
The second mobile game is for you Android owners out there – Oh Crop! This game pits you against a plant uprising in an apocalyptic future. Plants come from all sides to bombard you with seeds, vines, and various other plan-related parts. To earn bitcoin from this game, you’ve got to get a top score and appear on the leaderboard.
As bitcoins have become more popular and the market volatility has dropped, the profit you can make from simply buying and holding bitcoins has dropped significantly.
Luckily, there is another way to make money with bitcoin: Peer to peer lending. Since this method is less traditional than many other methods, you can generate great returns on your investment with just a bit of research and smart decision making.
Keep reading to find out how you can achieve a 20% ROI each year on your bitcoin investment.
Disclaimer: With great reward comes great risk. Do your research and understand what you’re doing before you go out and invest all of your savings in bitcoin. Making smart decisions with your money is the safest and best way to guarantee a great investing experience and profit.
Bitcoin Investment – Best Practices
Before we go into the top 5 bitcoin investment sites, let’s cover how you can safely and securely invest your money. Since most bitcoin loans offer a high interest rate, it’s more important to verify the credibility of the person you’re loaning to rather than looking solely at the interest rate.
After setting up an account, there are several elements you should look for before choosing someone to loan your bitcoins to:
Member of the site for a sufficient period of time
Reputation and no negative reviews
Specific borrower interactions
Now that you’ve confirmed the reliability and credibility of the borrower, you can finally look into the interest rate of the investment. A few tips for lending money:
Find loans that are almost 100% funded. These are likely more reliable.
Look for people that have already repaid some earlier loans.
Look for projects with very specific descriptions.
Now that you know how to identify a reliable person to loan money to; what kind of loans you should look out for.
*Note: We didn’t include the most popular site BTCJam because they’re shutting down lending on their site.
Site 1: BTCPop.com
BTCPop is the first site we cover that allows you to lend to your peers using cryptocurrency technology. Their lending site is based solely on reputation; not credit score, which has its own benefits and drawbacks. Follow the steps outlined above and you can minimize the risk of loaning out your money on this site.
BTCPop also allows you to exchange your money into different cryptocurrencies, move your money into large pools, and invest in startups that are using the site.
Site 2: BitLendingClub.com
BitLendingClub is another bitcoin lending site that has over 2073 borrowers, 9963 loans funded totaling over $7,963,687, and over 4718 active investors. In a few simple steps, you can sign up, get verified, and submit a loan request. Or, you can help fund an active loan on the site.
Site 3: BitBond.com
BitBond is the third bitcoin lending site that we suggest taking a look at. They offer profitable interest rates for individual investors, as well as loans for small businesses. BitBond successfully leverages bitcoin as a technology and payment network to create the first global market for small business loans or fixed income loans. With digital currency, BitBond makes loaning out to small business quicker and easier because they can bypass the slowness and expense of traditional payment transactions.
Site 4: Tether.to
Tether is a more recently created company that is built upon open blockchain technologies. It’s 100% backed, offers widespread integration, and is transparent and secure with all of its transactions.
Tether offers solutions for blockchain companies, exchanges, and the individual trader; making it a very versatile solution for any number of exchanges. It also allows you to make transactions with several different cryptocurrencies, so you’re not limited to bitcoin.
Site 5: CoinStaker.com
Last but not least is CoinStaker. They offer a nice overview of how P2P bitcoin lending can work, and allow you to also gamble, trade, monitor, and buy your bitcoins.
If you choose P2P bitcoin lending as a way to earn more bitcoin, do some thorough research on each of these sites before making a final decision. Peer to peer lending can be a great way to earn interest on your bitcoin, if you play it safe and make educated decisions about who you lend to. Be safe and enjoy lending.
While mining Bitcoins takes significant overhead and investment, earning free Bitcoins is much simpler and more straightforward. There are multiple different ways you can do this, without the hassle of setting up a system for mining. Keep reading to learn more.