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Welcome To Bitcoin Exchange Guide:

Bitcoin is buzzing and becoming your own bank is only the beginning. To help accelerate the global awareness and adoption curve use case of a nine-year high-fungibility yielding decentralized electronic cash, we have mind-mapped the most important building blocks of bitcoin which has quickly blossomed into the most sought after asset, commodity, property and/or currencies in the FinTech market.

How To Buy Cryptocurrency Guide:

The consensus on cryptocurrency is the whole world wide web has gone coin crazy. While the market cap has surpassed $200,000,000,000+ in total value, much of the future for virtual currencies is yet to be determined. Start here to check out all of the expert-sourced trading, investing and exchanging guides to better apply and implement strategies to grow your crypto ecosystem.

Blockchain DLT Guide:

Blockchain is the big brother of bitcoin. Bitcoin couldn't survive without it, but blockchain needs bitcoin to work. Based on a publicly distributed ledger technology accounting system where anyone in the world can verify and transact without third party trust (mining), blockchain looks to become the third phase of the internet (email, mobile/social media, DLT). Check out the category creating, in a class of its own, people powered money.

Bitcoin: Blockchain Currency For Internet Money

Welcome To BitcoinExchangeGuide.Com, our intention with this website is to cover and share all one should know about the rapid growing cryptocurrency industry; Everything from how to start using cryptos, how to buy it, how to store it, how to earn it, to the best applications and services that are emerging for this new technology.

Of course we couldn’t start the conversation without first mentioning Bitcoin. Some of you may have have heard of Bitcoin, as a currency, it can be wildly high in value one day and low the next. We are here to help you get started transacting with Bitcoin but more importantly we aim to help you understand Bitcoin the technology, the invention, the network it creates and the potential financial benefits it can bring to society.

What Is Bitcoin?

Bitcoin is a technology, its digital money, and its an international network of payments and exchange that is totally decentralized. It doesn’t depend on banks or governments to operate. Bitcoin is virtual money that can be send from any place in the world to another, instantaneously, securely and for minimal to no fees.

Bitcoin came into existence in 2008 after the publication of a white paper titled “Bitcoin: A Peer To Peer Electronic Cash System” created under the name of Satoshi Nakamoto.

Seemly Nakamoto combined his own knowledge with a prior developments of the technology such as HashCash and B Money to engineer a practical, autonomous decentralized electronic cash system that does not require central authority for currency emission, validation of transactions or settlement.

The main innovation in nakamoto’s invention was the development of a distributed computation system known as the “proof-of-work algorithm” that conducts global transaction validation every 10 minutes, allowing the decentralized network technology to come to consensus agreement about the state of each transaction.

The invention of Bitcoin represents the pinnacle of years of research in distributed systems and cryptography, it’s development combines 4 key innovations that make the existence of Bitcoin possible, Bitcoin is composed of:

  • The Bitcoin Protocol – A decentralized peer to peer network.
  • The Blockchain – A public ledger to record all transactions.
  • A Distributed Mining System – decentralized mathematical currency issuance.
  • Transaction Script – A decentralized transaction verification system.

HOW TO GET BITCOINS?

Mining –  How It all Works

Mining is the process by which bitcoin is added to the money supply. The mining process serves to secure the bitcoin network from fraudulent transactions and ensures proper track of receiving and sending coins.

Miners provide processing hash computer power to help validate transaction and ensure proper recording in the global ledger. On average a new block is mined every 10 minutes, adding those transactions to the global blockchain ledger, omce confirmed and approved.

Mining has become one of the most lucrative business in the growing cryptocurrency industry. Essentially miners and their computing power are responsible for holding together and securing the transaction network. This has created multiple opportunities.

Buy Bitcoins On Exchange

There are a variety of specialized currency exchange websites to buy bitcoins and altcoins with funds from a bank account or credit card. Buying Bitcoins is simple, there are a few options for buying coins. The quickest way to get started with bitcoin is to sign up for a bitcoin exchange, where you can quickly buy, store and receive coins. Here’s the basic process you’ll need to follow:

  • Step 1) Open a Bitcoin exchange account.
  • Step 2) Trade a fiat money for Bitcoins or receive coins.
  • Step 3) Transfer your Bitcoins to a secure private Bitcoin wallet.

That’s it! click here to check out the best exchanges in the US and Internationally. Below, we’ll explain more specific instructions – like tips on how to choose a good Bitcoin exchange and what to watch for.

Open A Bitcoin Wallet

Digital Wallets store a collection of cryptographic keys, each consisting on a private and a public key. These keys are what you need to access a bitcoin address and spend your funds. To be absolutely accurate, you don't technically store bitcoins anywhere. What you store are the secure digital keys used to access your public bitcoin addresses and sign transactions. This information is stored in a bitcoin wallet. Wallets come in different forms, designed for different types of device.

You MUST have a wallet to get started using cryptocurrencies. A Bitcoin wallet is an app or program that allows you send and receive bitcoin. Wallets also keep track of your bitcoin balance which is held in one or more bitcoin addresses. Generally, wallets also have a feature that keeps a history of your bitcoin transactions.

TOP 10 BEST BITCOIN EXCHANGE SITES

HOW TO CHOOSE A GOOD BITCOIN BITCOIN EXCHANGE?

There are several major Bitcoin exchanges, and there are several preferred exchanges. Different people have different needs, and multiple exchanges offer different services.

Your country and location also play a role when deciding which exchange to choose. Coinbase is the preferred leading exchange in the US and Europe for example, but if you are in Mexico Bitso is the best option to start. Check out our guide to opening a Bitcoin Exchange service account.

While researching Bitcoin exchanges, you’ll need to pay attention to important traits that separate good exchanges from bad ones. Pay attention to things like:

GOOD SECURITY

Major Bitcoin exchanges face hacking attempts every day. Even leading exchanges have suffered leaks in the past. It’s part of dealing with some of the most talented hackers in the world. Nevertheless, you’ll want a Bitcoin exchange with strong security and a limited history of leaks.

PRIVACY

One of the best parts about buying Bitcoins is that you can do it with 100% privacy. However, the only real way to privately buy Bitcoins is with cash or a cash deposit. Not all exchanges support this. It’s easy to find exchanges that accept bank transfers, credit card payments, debit card payments, and PayPal, for example. However, each of these payment methods is tied to your personally-identifiable information. If you want to avoid being tracked, then you need an exchange that offers cash or cash deposit exchanges.

PURCHASE LIMITS

Most Bitcoin exchanges have no limits. If you have enough money, you can buy as much Bitcoin as you want. However, certain exchanges do have limits. If you’re working with an individual seller, then that individual may have lower limits than an exchange. Unless you’re buying more than, say, 25 Bitcoins, you shouldn’t have trouble with purchase limits.

LIQUIDITY

One of the best parts about buying Bitcoins is that you can do it with 100% privacy. However, the only real way to privately buy Bitcoins is with cash or a cash deposit. Not all exchanges support this. It’s easy to find exchanges that accept bank transfers, credit card payments, debit card payments, and PayPal, for example. However, each of these payment methods is tied to your personally-identifiable information. If you want to avoid being tracked, then you need an exchange that offers cash or cash deposit exchanges.

FAIR EXCHANGE RATES

One of the confusing parts about Bitcoin for newbies is the exchange rate. There is no “official” exchange rate for Bitcoin into world currencies. Instead, Bitcoin prices are based on the average price of Bitcoin across all exchanges. One reliable site for Bitcoin averages is Coindesk.com. Make sure the exchange you choose has a fair exchange rate based on the current price.

REPUTATION

Try to pick a trusted, long-standing Bitcoin exchange. Sure, some new Bitcoin exchanges might offer lower rates and better service – but until they’ve built a good reputation over time, you should stick with the known exchanges.

FEES

Bitcoin exchanges all have fees. You’ll typically see a deposit and withdrawal fee, for example, as well as a fee per exchange. Some exchanges will substantially reduce – or even eliminate – fees if you trade a lot of Bitcoins.

OTHER

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HOW TO GET A BITCOIN WALLET?

With a Bitcoin wallet, you can receive, store, and spend Bitcoins. Bitcoin wallets aren’t like conventional wallets: they can be apps, websites, devices, or software programs. These wallets contain private keys that give you access to your coins. Many bitcoin exchanges offer Bitcoin wallets when you sign up, for example. Other people hold physical Bitcoin wallets – or even physical Bitcoins – as a way to store their cryptocurrency.

There are many different wallets across various platforms. While they all share certain basic functionality, features vary from one wallet to the other so it’s worth learning more about How to Choose a Bitcoin Wallet before downloading the wallet of your choice. Wallets are necessary to carry and store bitcoins. Of course some exchanges may serve simultaneously as wallets but is always best to have a private secure wallet to store your coins after purchasing from an exchange.

The two main types of Bitcoin wallets available today include:

HARDWARE WALLETS

These are physical electronic devices – similar to a USB stick or thumb drive – built for the sole purpose of managing your Bitcoins.

Many people like hardware wallets because they perform like physical wallets: you need to connect your wallet to a computer, phone, or tablet in order to spend the Bitcoins inside.

Popular hardware wallets include the KeepKey, Trezor, and Ledger Nano S.

The only way to lose Bitcoins through a hardware wallet is if someone steals your Bitcoins. Even then, you can protect your hardware wallet with a PIN code. And, if you lose your wallet for any reason, you can use a secret backup code to maintain access to your Bitcoins.

The only real downside of hardware wallets is they’re not free. You have to pay for the physical device. Expect to pay between $50 and $100 for a good Bitcoin wallet – although cheaper options are available for under $20.

Some hardware wallets:

HOT WALLETS

Hot Bitcoin wallets are apps or software programs found on smartphones, tablets, or computers. Hot wallets generate your private Bitcoin keys.

Hot wallets are typically seen as the easiest way to store and spend Bitcoins, but security is a concern. Those who own a lot of Bitcoins typically use hot wallets to store a small amount of Bitcoins, while using hardware wallets for their main Bitcoin fund.

HOW TO BUY BITCOINS?

DEBIT OR CREDIT CARDS

This tends to be the most popular method of buying Bitcoins. After all, most people have a credit or debit card, and are familiar with how to use them. Buying Bitcoins with a credit or debit card also means you instantly gain access to your Bitcoins. The downside with credit/debit card Bitcoin purchases is that exchanges typically charge higher fees. The other problem is that your Bitcoins are tied to your personal information. You need to prove your ID to buy Bitcoins with a credit card.

Popular exchanges for credit/debit card Bitcoin purchases include Coinbase, Coinmama, CEX.io, and BitPanda. Coinbase is only available in the United States, Canada, Europe, and Singapore; BitPanda is only available in Europe. CEX and Coinmama are both global exchanges.

BANK TRANSFERS

Bank transfers are the preferred way to buy a large amount of Bitcoin. Exchanges also typically charge lower fees for bank transfers compared to credit or debit card transfers. The main downsides of a bank transfer are the slow speeds (takes about 5 business days to complete, in some cases) and the ID verification. Just like with credit or debit card purchases, your ID is tied to your Bitcoins. Coinbase, BitPanda, and Gemini all allow Bitcoin purchases with bank transfers.

CASH

Cash is the preferred method for those who want to deal with Bitcoins anonymously. A cash deposit lets you access your Bitcoins quickly (even instantly) while remaining totally anonymous. There are some major downsides with cash exchanges. You’ll almost always pay higher rates (expect to pay 10 to 15% above market rates for a cash exchange). It’s also easier to get scammed or robbed. If you’re working with a disreputable exchange, then your cash might disappear with no record.

If you want to use cash to purchase Bitcoins, use services like LocalBitcoins, BitQuick, or Wall of Coins. However, the best method may be to find a Bitcoin ATM in your local area. Every major city in the world has a Bitcoin ATM. New York City has about a dozen, for example. Even Bitcoin ATMs have a cash rate that’s 10 to 15% higher than the current exchange rate.

PAYPAL

PayPal doesn’t officially let you buy Bitcoins. Accessing Bitcoins through PayPal is difficult. In fact, PayPal’s terms of service explicitly forbids merchants from accepting PayPal payments for Bitcoins. However, there are some ways to get around this problem. You can buy digital items with PayPal, then sell those items for Bitcoin, for example. As an example, payment platforms like VirWoX let you buy Second Life Lindens (yes, the currency used in Second Life) with your PayPal balance, then trade those SLL for Bitcoins.

There are downsides: you lose more money by exchanging your money twice. There’s also the problem that PayPal could shut down your account if it discovers what you’re up to. Ultimately, the exchange fees with PayPal / Bitcoin transfers add up to about 10 or 12% – similar to what you pay for cash transfers.

WHEN TO BUY BITCOINS?

HOW TO TIME THE MARKET

Bitcoin is traded 24 hours a day, 365 days a year. Bitcoin trading never stops. The price is constantly fluctuating. Like with most markets, it’s hard to time the Bitcoin exchange rate. You can use tools like Bitcoin Wisdom or Cryptowatch to analyze historical Bitcoin exchange rate data.

Many people are attracted to Bitcoin because they heard of people who bought hundreds of Bitcoins for $20 USD back when the cryptocurrency first hit the internet. Those people became millionaires overnight when the price of Bitcoin shot up. If you’re buying Bitcoin because you expect that type of success, then you’ll probably be disappointed. If you’re interested in that type of overnight success, however, then there is a chance that it can be found in the altcoin markets.

¿WHAT ARE ALTCOINS?

When visiting Bitcoin exchanges and websites, you may see information about buying “altcoins”. Altcoins are cryptocurrencies other than Bitcoin. Bitcoin was the first cryptocurrency to become really popular. Since the rise of Bitcoin, however, hundreds of other cryptocurrencies have emerged. People invest in altcoins because they’re hoping for a Bitcoin-like rise in value. The vast majority of altcoins, however, have virtually no value.

In general, you should avoid buying currencies that go through sudden spikes and drops in price and volume. However, if you’re feeling brave, and don’t mind exposing yourself to risk, then certain altcoins are worth the price. A growing number of altcoins are accepted as online payments – just like Bitcoin.

MOST POPULAR ALTCOINS AND CRYPTOCURRENCIES AVALIBLE TODAY

Cryptocurrency markets fluctuate constantly. Here are the most popular cryptocurrencies – including Bitcoins and altcoins – available today based on market capitalization. Ultimately, new cryptocurrencies emerge regularly. Some rise and fall. Some stick around, while others disappear into the depths of internet history.

By following the tips listed above, you can learn how to buy Bitcoin from Bitcoin exchanges and how to safely transfer your money. We’ve also taught you about the blockchain and some of the most popular altcoins available online today.

100%
BITCOINS ($23.1 Billion market cap).
30%
ETHEREUM ($7.1 Billion)
8%
RIPPLE ($2.0 Billion)
3%
LITECOIN ($0.8 Billion)
2%
DASH ($0,65 Billion)
2%
ETHEREUM CLASSIC ($0.6 Billion)
2%
NEM ($0.45 Billion)
1%
MONERO ($0.33 Billion)

HOW BLOCKCHAIN CRYPTOCURRENCY TECHNOLOGY WORKS?

The blockchain is an essential part of the cryptocurrency world. Without the blockchain, Bitcoin wouldn’t exist. The blockchain was created by Satoshi Nakamoto – the mysterious creator (or group or creators) behind Bitcoin. It’s an ingenious invention that has already changed the future of banking and global economics.

A blockchain allows digital information to be distributed – not copied. It’s the reason Bitcoin works as it does. As Quora.com explains, “blockchains create the backbone of a new type of internet”. It was first used to create Bitcoin, but blockchains are already being used in all corners of the tech world. Here’s the best definition of the blockchain, from Don & Alex Tapscott, authors of Blockchain Revolution (2016):

“THE BLOCKCHAIN IS AN INCORRUPTIBLE DIGITAL LEDGER OF ECONOMIC TRANSACTIONS THAT CAN BE PROGRAMMED TO RECORD NOT JUST FINANCIAL TRANSACTIONS BUT VIRTUALLY EVERYTHING OF VALUE.”

In a more simplified sense, picture an Excel Spreadsheet that’s duplicated thousands of times across a network of computers. Now, imagine that the network is programmed to constantly update all of those spreadsheets simultaneously. That’s basically what a blockchain is. It’s like Google Docs for banking.

The blockchain consists of a shared database. That database isn’t stored on any single person’s computer. There’s no centralized version of the blockchain. The blockchain exists everywhere at the same time – which means the information on the blockchain is public and easy to verify. With the blockchain found on millions of computers worldwide, it’s easy for anyone to verify information on the blockchain. All you need is an internet connection.

Bitcoin and its blockchain were first invented in 2008. Amazingly, since 2008, the Bitcoin blockchain has operated without any significant disruption. It’s proven itself to be transparent and incorruptible over the years. About every 10 minutes, a new “page” or “block” of valid transactions is confirmed through the Bitcoin blockchain. That means new files need to be added to the files on all the computers.

PARTS OF THE BLOCKCHAIN

The blockchain is essentially a network of “nodes”. A node is an individual computer connected to the blockchain network. Each node gets a copy of the blockchain. That copy is automatically downloaded when you join the blockchain network. As part of the blockchain network, each node also has the job of validating and relaying transactions on the blockchain. Each node is a blockchain administrator.

Why would someone become a node? Each node has a chance of winning Bitcoins. Each node is constantly solving computational puzzles. You know how people talk about Bitcoin mining? Essentially, Bitcoin mining is just using a powerful computer to solve algorithms.

FUTURE USES FOR THE BLOCKCHAIN

Bitcoin was the first major use for the blockchain – but it certainly won’t be the last. The potential for blockchain technology is enormous. The biggest implications for the blockchain are on the world of finance.

Blockchains could cut out the middleman for money transfers, for example. That could facilitate the transfer of money worldwide. Instead of having a middleman – like a bank – charging money for each transaction, we could use the blockchain to securely transfer money worldwide at minimal cost.

Bitcoin is not a company it is not an organization. It is a standard or a protocoljust like TCP/IP, or the internet. It operates by simple mathematical rules that everyone who participates in the network agrees on.

TOP GUIDE ON HOW TO BUY BITCOIN TODAY

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