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How to buy and sell Bitcoins?

How to buy and sell Bitcoins

Bitcoin is a digital currency, and its use is increasing in the digital world day by day. Many web services are buying and selling using Bitcoins and using it to pay for a variety of goods and services. This is similar to the routine paper money, except for the difference that this is digitalized while paper money is not. Although there are physical forms of bitcoin also present, mainly it is used in digital transactions and stuff. It is traded online, peer to peer or by another wallet means.

Dealing with Bitcoins is primary and essential because in some cases Bitcoins are the only means of payment and are necessary to complete a transaction.

LocalBitcoins.com-How to buy and sell Bitcoins

How to Lay your hands-on Bitcoins:

You can acquire bitcoins by purchasing them form the people who already have them or by Mining.

What is mining:

Mining means running and solving a complex and challenging mathematical equation, at the end of which you will receive a few bitcoins. Mining uses up the computer power to generate bitcoins instead of your actual cash but gives little results.

Buying Bitcoins through cash is a more natural way. However, you’ll have to spend some real money on it.

How to buy Bitcoins:

Bitcoins can be purchased by using services like Online Service and Wallet Software.
The purchase process doesn’t require a lot of effort, but will only use up real life money and some of your time.
You can use bitcoins as a means of payment for many businesses. You can also use them for services like Bitcoin Magazines that offer so much, from music download to gift cards, etc.

Check their website www.localbitcoins.com for further details on how to buy bitcoins.

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5 Step For Beginners To Start With Bitcoin Trading

5 Step For Beginners To Start Trading Bitcoin

Have you been reading our posts? Today we will focus on the novice Bitcoin traders. Here, I will bring to you an easy guide in trading Bitcoins where you will reap a profit.

Cryptocurrency trading is the new thing and Bitcoin-the oldest can be extremely rewarding in terms of the spread. By spread I mean the arbitrage profit you will get by differing market prices. That is, the global market margin is widely available. This is usually as a result of different cross-rates calculations. With this, arbitrage comes in and many people can easily exploit this by trading Bitcoins.

If you have been careful about the cryptocurrency and economic news you watch; you will realize that there is a certain criterion followed by Bitcoin and any other Cryptocurrency out there. First, it is usually volatility followed by the bubble. With each bubble, the media attention shifts focus to Bitcoin. This spread of news creates attention and Bitcoin prices become volatile. That is with the increased attention; more people start tinkering with Bitcoin which becomes a hype and then the trading. This lasts until the Bitcoin hype fades.

Trading in Bitcoin is very easy. The reason for this lies in the fact that Bitcoin is global and has very little requirements. In fact, there is little to no verification when it comes to trading.  Like any other security in the market, investors want their Bitcoins to maximize their wealth while the speculators want to gain their spread from arbitrage.

To start trading in Bitcoins, you need to join one of the many online trading companies offering CFD. This stands for Contract For Difference.

What makes Bitcoin trading easy?

The answer to this question lies in the various characteristics of Bitcoin. Some of these also lie with other cryptocurrencies but are more advanced and recognized in Bitcoin. These are:

  • Volatility: Like any good speculating security in the stocks market, Bitcoin is volatile. Its prices are always yawning and are frequent enough to for daily charts. Actually, CoinDesk BPI provides these charts on a daily basis.
  • 24-hour trading: What makes Bitcoin more profitable and better than the securities market is that it trades 24/7. Part of this lies in the fact that Bitcoin is global and there is no time limit because of the different time zones.
  • Bitcoin is decentralized: This makes it independent of the various government controls. Also being decentralized makes it global meaning that any economic control in one place does not directly affect its prices. Such controls would be the devaluation of currencies or various controls in capital markets. Actually, these measures by the governments are what makes the prices of Bitcoin rise. An example is the 2013 Bubble created by Cyprus capital controls.

These factors have made Bitcoin a favorable security to invest and speculate in. actually, the other cryptocurrencies use Bitcoin as a Benchmark when it comes to trading.

Starting Bitcoin trading

Before we head there, it is important to know a few things when it comes to Bitcoin trading. First is that China leads in Bitcoin Trading. All the data collected from the many sources show that trading volumes in China are dominating the market.

It seems ironical considering that China is one of the most restrictive states to have a flourishing cryptocurrency in the market. Some might consider this a freedom of expression since Bitcoin is independent of any state power. However, that is not the case as most if not all Chinese Bitcoin Blockchain merchants consider Bitcoin as an asset to be capitalized on. That plus the following reasons is what makes China the leading Bitcoin Trader globally.

Global Leaders in Bitcoin

China hosts one of the largest Bitcoin miners, Bitmain. Bitmain operates two pools that accounts for almost 30% of all Bitcoin processing power. The other reason for China’s dominance is that the Bitcoin trading is that the Chines government had relaxed its finance regulations. This made trading much easier. This means that the Bitcoin market was also more developed and mature than the rest of the world. In the market, leverage was always maximized by lending, options, and derivatives. Also to this is that in China, exchanges were not charged. This means that Bots could trade non-stop to increase the spread in case of arbitrages.

This, however, has changed and the market dominance has shifted to Japan. The reason for this is that the Chines government has started imposing trade restrictions on virtual currencies. This is especially so on the companies that offer Initial Coin Offerings(ICOs) such as the oldest company in China BTCC. Others such as Huobi has have been exempted but the deadline will be on October 30.  As of September this year, Japan had slightly over 50% of the global trades.

Getting started with Bitcoin Trading

The first rule of the thumb is that Bitcoin has no official trading exchange. This leaves the duty of searching testing and trading to you. Have no worries though, there rules to follow while selecting these trading sites.

  1. Location:  Where the company doing the exchange is very important. This lies in the rules, laws and the regulations of that country. Also, this goes with the type of currency the exchange is taking. The recommended action is to always take exchange company in your country.
  2. Purchasing: The mode of purchasing is important. What method does the exchange take and what will work to your convenience?
  3. Exchange fee: You need to pay a certain fee when doing the exchange. Check if it has been inflated or if any other fee stands to reason.
  4. Security: Is the website HTT or HTTPS. The authentication steps to follow when entering your account.

After going using these basics to get your preferred site; you should also be able to avoid being scammed. There are many people over the net trying to get yours over using Bitcoin scams. Try to avoid these as much as you can.

Now, there are some reputable sites where trading is safe, secure and reputable. The following is a list that I have compiled. This is according to my best knowledge and your input and addition are welcome. This is compiled in terms of USD volume from the first.

Buy Bitcoin from best Bitcoin Exchanges

  1. Bitfinex. This exchange is the first in terms of USD volume. Its daily volume is 25000 BTC.
  2. Bitstamp. The company was founded in 2011 making it one of the oldest exchanges. its daily volume is 1000 BTC.
  3. Coinbase. This was the first exchange to be regulated in the United States. Coinbase trade volume is about 8000 BTC daily.
  4. Okcoin. Since the downfall of China dominance in the market, Okcoin has taken a huge dip but its worthy to mention it in the list. It used to trade at over 9000 BTC but this has fallen to less than 1000 on the day of publishing this article.
  5. Another worthy mention is Kraken. It is the first in terms of EUR daily trading volumes at around 6000 BTC. This makes it top 20 in terms of USD volume.

Trading risks

Like any other security in the market, Bitcoin has its own trading risks. Some of these are discussed below.

  1. Leaving money on Exchange:

Bitcoin is an independent non-participant currency. Apparently many do not know this. one of the most remembered cases is the Gox collapse. During its time, it was one of the largest exchange points. It was one of the easiest ways to obtain Bitcoins but on its collapse, users left more than 800,000 Bitcoins in Gox accounts. In February 20014, withdrawals were halted and up to now not have received their funds.

The best way to avoid a case like Gox catastrophe is to use a regulated exchange.

  1. Capital risk: Your capital your risk. You should start trading at low amounts then growing to larger and larger when you start gaining profit. This you will do after learning the strategies and understanding the market signs.

Above anything else, before trading, you should search and find the best strategies to use in trading Bitcoin. There are many resources on Bitcoin on the internet that you should utilize to your fullest.

Step by Step Bitcoin trading

To trade, you will of course need to sign up an account. Kraken will be used in this excerpt as a general guide to get you started.

To open an account, go to the official website and click sing up box.

Confirmation will be done using email. Once this is done, you will log in and fill your personal information.

Once you sign up and all your levels or verification are procedures are followed. You will get the following.

 

kraken_01

By the way. Every Exchange must follow the AML and KYC laws for verification.

Once your account is set up; go to funding and select your preferred choice of funding. You will get the following screen shot.

kraken_02

As with Kraken, there are many choices of deposits to choose from.

These are:

  • EUR SEPA Deposit (Free) – EEA countries only
  • EUR Bank Wire Deposit (€5) – EEA countries only
  • USD Bank Wire Deposit (Free until 3/1/2016, then $5 USD) – US only
  • USD SEPA and SWIFT Deposit (0.19%, $20 minimum)
  • GBP SEPA and SWIFT Deposit (0.19%, £10 minimum)
  • JPY Bank deposit (Free, ¥5,000 deposit minimum) – Japan only
  • CAD Interac Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $5,000 CAD deposit maximum)
  • CAD EFT Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $50 CAD fee maximum, $10,000 CAD deposit maximum)

The deposits are different. With the banking system, the deposits take a maximum of three working days to process while with Bitcoins it can take about an hour but with six different confirmations.

To begin trading, select Trade tab. You can switch the trading pairs to match which you want using the black bar. To begin our trade assuming a $300 deposit in the account, select new trade. Here, you see that Bitcoin is trading at 0.5XBT for $37O per Bitcoin.

kraken_03

On checking the last trade, the price was $383.17.

The reason for this is because, one may submit at a lower price than the current one. This is done when expecting a fall in the prices of Bitcoin. Since in this case my bid is lower than the market price; my order will be processed later than the others. This is so because of placing an order through the Limitorder. This places an order by a particular price. Before placing an order, you should check the orderbook for your trading pair before deciding the price.

An example is the following:

kraken_04_bitcoin_order_book

As you can see, there are various prices through which people have placed their orders. You can skip this by placing an order through the market price. Such as the following:

As such, the market order will submit a buy order at the lowest possible available sell order which is 0.5XBT at $384.07 per XBT. If it is selling, it will place at the highest sell order of which is $382.5.

If you liked this blog post, please follow us on Twitter @coins_iq and also make sure to subscribe to our e-newsletter to receive the best and latest information on bitcoin, cryptocurrency, crypto trading and bitcoin investment!

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Top Bitcoin Exchanges – Buy And Sell Bitcoins

top-bitcoin-exchanges-coinbase

The astronomical rise in the price of Bitcoins has resulted in immense attention from the general investing public as well. Owing to this very reason, many people are now looking for top Bitcoin exchanges to buy and sell Bitcoins. If you’re just looking for any exchange, you would find hundreds of options to choose from. However, when you’re looking at the top Bitcoin exchanges, you have to carefully filter out the best ones and use only those.

Also, buying and selling the Bitcoins would be dependent on the liquidity on that particular website. Owing to this very reason, you have to carefully select top Bitcoin exchanges which have the required amount of liquidity as well so that you are able to easily buy and sell Bitcoins.

We would today share with you four different exchanges on which you can easily buy and sell Bitcoins.

  1. Coinbase:

Coinbase is headquartered in San Francisco. One of the main reasons why it ranks so highly on our list is because of the user-friendly interface. Whether you have used Bitcoin exchanges before or not, you would surely be able to understand the simple interface of this Bitcoin exchange. It allows you to deposit funds through the cards as well as bank transfers. Thus, you would be able to easily buy the quantity of Bitcoins which you want.

It allows you to deposit 3 type of currencies which are:

  • USD
  • EUR
  • GBP
  1. PoloNiex:

If you’re looking for an exchange which would allow you to trade between different currency pairs, this one is the perfect option for you. It allows you to trade between 75 different pairs. Thus, you can easily trade between the different pairs without any problem. The only downside to this exchange is that you can only deposit money in the form of crypto currency. Also, the user interface of this particular exchange is not that friendly.

  1. Local Bitcoins:

This Bitcoin exchange accepts most of the popular currencies all over the world. You can even deposit cash in their bank accounts. You can use PayPal as well. You can also opt for bank transfers. You can easily buy Bitcoins through this exchange which would ensure that you are able to easily trade in Bitcoins. The user interface is also pretty easy to understand.

  1. CEX.io:

This exchange is located in London. It allows you to deposit funds with the help of cards as well as bank transfers and also Ethereum. The interface of this particular exchange is pretty easy to understand.

Some of the currencies in which you can easily deposit the funds are:

  • US dollar
  • Euros
  • GBP
  • RUB

So, if you’re looking to buy and sell Bitcoins, these are the 4 exchanges which you should be looking at. These 4 exchanges would not only ensure that you are getting plenty of liquidity but you can easily buy and hold Bitcoins as well.

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