Bitcoin

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Five things to know before investing in Bitcoin

Bitcoin is one of the cryptocurrencies that has been dominating the financial market for the last couple of years. Many investors are still skeptical when it comes to investing because they are not sure what the future holds. Considering that Bitcoin’s price has risen, you need to be careful when putting your money out there. If you are thinking of investing, then in this post we are going to help you discover all the things you need to know before buying it. We are going to explain the basics and help you make the right decision.

What Bitcoin is getting a lot of attention

The world has become more dependent on the internet, so it’s no surprise why people have become so interested in it. This currency is open to everyone and offers the same opportunities to everyone who is ready to invest. You might feel intimidated while working with Bitcoin, but remembers, it will take you some time while you get all the ropes and understand how Bitcoin works.

Why should you invest money in Bitcoin?

It might seem silly that one bitcoin can cost thousands of dollars, but what makes it so valuable? Let’s look at gold, for example. There is a limited amount of gold on earth when new gold is mined, the amount is decreasing and becomes expensive to find and mine new gold supplies. The same rule applies to Bitcoins. Nowadays, there 21 million of Bitcoins available on the market and as the time goes by, it is harder and harder to mine them. The great thing about Bitcoin is that it offers sound and predictable monetary policy and anyone can verify it. The sound policy is one of the most important features because it’s possible to how they are created and how many of them are in circulation.

The price of Bitcoin

coinsThere is no official price. Basically, people determine the rate and how much they are ready to pay for one Bitcoin. The price is represented as the cost of one Bitcoin. On the other hand, exchanges will allow you to buy any amount, and you can even buy less than one Bitcoin.  Many experts state that people who invested in Bitcoin in 2009, now they are millionaires.

When should you buy?

Compared to any market, nothing is guaranteed. When we look at the beginnings of Bitcoin, the price has increased rapidly and followed by a slow downfall, until it stabilized. Considering that Bitcoin is global, it is not influenced by the government situation and stability. Compared to physical currency, any disturbance that happens on world’s financial market can only contribute to the price of Bitcoin because not any state or government can influence its progress.

Where to buy

It all depends on your native country or country where you reside. If you want to purchase Bitcoins, then we suggest the Coinbase, this is the most prominent broker, and it covers the U.S., UK, Singapore, Canada, and majority of European countries.

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How to become a Bitcoin miner?

You probably have heard about a Bitcoin, and then you read how people get rich using digital mining, but you still don’t know what that is. If you want to get rich, then you can either buy Bitcoins and make a transaction, or you can mine for them. Mining is a process of verifying other Bitcoin transactions and being rewarded for such action. This is the primary mechanism behind the Bitcoin economy, and it is used to maintain the operations secure. In this guide, we are going to explain to you how to become a professional miner, and potentially earn some fair amount of money.

Get a good equipment

If you want to become a Bitcoin miner, then you are required to have an advanced hardware which supports these operations. Considering that speed is measured in hashes, you need to perform a certain number of hashes in second, to mine. A high – end hardware will provide you desirable speed and help you earn Bitcoins faster. Also, quality equipment is electricity friendly, and you won’t spend all your earned money on bills, which is essential when you are starting with this business. It is important to mention that most PC companies sell specially customized devices which are created for Bitcoin mining, in this case, even if you are inexperienced, you don’t have to worry whether you will buy the wrong one.

Get a Bitcoin Wallet

walletAll Bitcoins are placed in the digital wallet, and they are encrypted to secure your money. Users can be located locally or online. Even though many online wallets are safe, the money can still be lost if something catastrophic happens. Most prominent Bitcoin users recommend for beginners to use the local wallet for security reasons. While using a local wallet, all transactions need to be verified in an entire blockchain, which makes this service much secure. There are a lot of great local wallets on the market, and you can search the web and choose the one that meets all your needs.

Secure your wallet

Considering there is no ownership when it comes to the wallets, anyone has to access it and use your coins. If you want to prevent this, then you should enable authentication process and place your wallet on a computer doesn’t have an internet access and even store wallet to a memory card.

Join a pool or go alone

When you start mining, you have two options; you can take a membership with an established pool, or try to mine on your own. The pool offers you many possibilities and features and recourses, but you also have to divide the rewards. This can help you achieve quick returns. On the other hand, if you decide to mine by yourself, then this can be a very challenging task. You will be facing a great competition, and without joining a pool, it may pass a year or more before you start earning any Bitcoins. But, with the pool, you can achieve faster progress.

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Ethereum Vs. Bitcoin – the primary differences between them

The Bitcoin has been dominating the world’s market for the last several years, but this is not the only one cryptocurrency that has been present because we have another one called Ethereum, which is equally good. Ethereum attracts a lot of attention from the investors because it offers additional features and applications. We will help you discover everything Ethereum has to provide and help you choose the best cryptocurrency that will meet your needs.

Ethereum is more than money

First of all, Ethereum is not entirely a cryptocurrency, but a blockchain platform which supports many features. It has smart contracts, Ethereum virtual machine and uses its currency which is called Ether. Considering that platform uses smart contracts, it has stored applications for contract negotiation and facilitation. The smart contracts are decentralized, and it makes it very hard to breach them or for someone to commit a fraud. These contracts are powered by Ethereum’s blockchain based cryptocurrency, or by other crypto – assets, which are stored in Ethereum Wallet and they also allow users to create new smart contracts, but also use them.

Use smart contracts for personal cryptocurrency

The great thing about Ethereum is that it provides you to make digital tokens which can be used to represent virtual shares, assets, proof of memberships and much more. The smart contracts are compatible with any wallet. You have an opportunity to copy the code from the website and then utilize tokens for various purposes. In this case, you can have a certain number of tokens which are fixed, or you can have a fluctuating amount based on specific rules.

You don’t need Kickstarter with Ethereum

Ethereum1The Ethereum has one great feature, and that is it gives developers means to earn funds for numerous applications. The money developers make, will be held until they reach the goal or until they agree on a date. If developers fail to achieve the goal, then the money will be returned to contributors. On the other hand, if the project is successful, the money will be invested. Kickstarter means you eliminate the third party, together with the rules and fees they charge. When you include Kickstarter’s price, it may cost you up to 10% of the entire investment, which is not that large, if you manage to achieve your goals.

You don’t need traditional management skills

With the help of Ethereum, you are not only raising the fund, but you can also use this platform as an organizational structure you start with your ideas. You can gather proposals from the people who supported your project and them as for recommendations and what should you do. In this case, you can skip the traditional structure, for example, hiring managers, experts and doing paperwork. In this way, you can get free ideas and use them to help you develop your business further. Another significant difference between Bitcoin and Ethereum is that with Ethereum only the half of money is earned with mining.

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How to choose computer configuration for Bitcoin mining

When selecting the right equipment, you need to reconsider the three main categories of Bitcoin mining hardware. Each of these groups is more powerful and achieving that the previous ones. You need to understand how Bitcoin works to select the proper tools and equipment. We are going to help you set up everything and help you decide which hardware is the best for you and which one will accommodate your needs when you are performing the mining process.

What is a hash rate?

This represents a number of calculations your hardware can perform every second. In the mining process, you are required to solve mathematical problems, and the hash rate is measured in megahashes, gigahashes, and terahashes per second. The higher your speed is, the more likely you will be able to solve problems and transaction blocks.

Energy consumption

bitcoin compWe all know that computer hardware isn’t energy friendly and especially if you are using an advanced equipment for Bitcoin mining. So, when you are choosing a device, you should be aware that power is measured in watts. Keep in mind that you don’t want to spend all your earned money on electricity to mine coins that are not worth it. You need to determine how many hashes you are getting for every watt consumed. To perform this, divide the hash number by the number of watts. Keep in mind your electricity bill at the end of every month and try to find the balance.

Mining Hardware

There are three main categories, and we will explore each of them.

CPU/GPU Bitcoin Mining

This is the least dominant category and represents your computer. In theory, you can use the computer that you have to mine Bitcoins, but, in reality, it will be too slow compared to powerful machines that are on the market. Of course, you could boost up your graphics, and it is designed for advanced mathematical polygons which are required in high – end video games. You can purchase ATI and Nvidia because they are the best on the market and they can cost hundreds of dollars.

FPGA Bitcoin Mining

The full name of FPGA is Field Programmable Gate Array, and that is an integrated circuit which needs to configurated after being built. The mining hardware manufacturers have an opportunity to purchase these chips in volumes and then prepare them for Bitcoin mining before they are put into equipment. Considering that they are customized for mining, they provide excellent performance and outstanding results. You can get 750 Megahashes per second, but keep in mind that this is the high – end.

 ASIC Bitcoin Miners

ASIC is the most potent tool for Bitcoin mining, it has only one purpose, to mine coins at remarkable speed, with moderately low electricity consumption. In other words, this is a dream come true for every Bitcoin miners. It can produce rate between 5 and 500 Gigahashes per second, and some vendors are even offering ASIC devices which can reach 2 Terahashes per second.

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How to make money with Bitcoin

If you are looking for the ways to earn some extra cash and to build up your, then Bitcoin is an excellent option for you. Having in mind that the price of Bitcoin has risen in the last years, not many people have an opportunity to purchase ones. A lot of them think that mining and investing in digital currency is the right way to earn money, but numerous methods can help people achieve an income, without spending too much time in front of a computer. So, let’s look at different techniques which can help you run a successful Bitcoin business.

Bitcoin faucet

While investing your own money may sound a more appealing and secure option, you can take launch and manage your personal Bitcoin faucet. Here your possibilities are limitless, and you won’t be risking your investment. The average earning per months can be between $50 and $800. The entire process is quite simple, but if you still don’t understand what we are talking about, then you can find many online tutorials which can help you establish a Bitcoin faucet. Basically, then entire procedure revolves around the adds, you will be paying the small number of Bitcoins to your users, but, you will be gaining much more from the ads you put on your site.

Passive Bitcoin income

gold-bitcoinsOne of the most neglected ways of making a profit with the Bitcoin is probably to start your own website, where you will provide useful information and explain in details the basis of Bitcoin to new users while making earning money from ads and affiliate offers. It will take you some time and a bit of money to get everything going, but, you will start experiencing benefits in the first couple of months. If you have some friends that are in the IT sector, then they can set you up a website in a matter of days. Then, it’s up to you to reach a high traffic and attract the companies which will post an ad on your webpage.

Mini earnings

A bit of your time can help you earn some money with the Bitcoin. For example, there are a lot of websites on the market which will pay you small amounts of money to perfume and complete specific tasks for them. This often involves looking and clicking on ads. In most cases, the website owners pat when people view and interact with their ads. Of course, these ads are connected to the Bitcoin.

Writing

If you love Bitcoin and you are interested in this topic, but you don’t dare to invest your money, then we suggest you to start writing and turn your literary skills into cash. Considering that Bitcoin is highly accessible and people all over the world are fascinated with this virtual currency, but not many of them are overly familiar with how this process works. If you have excellent literary skills, then some companies will pay to promote their products on the web.

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The basics of Bitcoin mining

The Bitcoin is one of the most popular cryptocurrency nowadays, and many investors are into it, notably since its price had risen last year. Many financial experts pointed out that if people invested in Bitcoin eight years ago, they would be millionaires now. But, you may still have a shot at earning money, and that is applying Bitcoin mining. Before you start this entire procedure, you need to get familiar with a Bitcoin concept and which are the safest way to invest your money. On the other hand, we will get you familiar with the Bitcoin mining. Here are the basics which might be interesting.

How does it work

Before you start mining, it would be useful to understand how Bitcoin mining works and what does it means. First of all, this procedure is entirely legal, and it can be done with the help of SHA256 double round verification processes if you want to validate all Bitcoin transactions. Here, the speed is the most significant factor, and it is measured in hashes per second. The Bitcoin compensates the miners who are the most successful and who present the required computational power. The bigger power they show, the larger the reward will be.

How to start

If you want to begin Bitcoin mining, then you need to get a Bitcoin mining software. While this process was at the developing stage, people could mine with computer PCU or with fast processor car. But, today, that’s not possible. There are a lot of software you can find on the market, which dominate this industry and which will provide you excellent results. Keep in mind that Bitcoin mining will consume more electricity and you are likely to earn. It is important to use specially designed equipment only for this purpose, and many companies offer devices which are only used for Bitcoin mining.

Other Bitcoin mining services

miningPeople have another option which they can explore, and that’s to purchase in Bitcoin cloud mining contracts. This will significantly make easy this entire process, but, on the other hand, it will increase your risk because you will not have physical control over the hardware. You should be aware if Bitcoin scams and only search for services which are reputable and have excellent feedback. Only in this way, you can hope to earn Bitcoins and not waste your time.

Join the Bitcoin mining pool

Once you acquired equipment and downloaded a software, it’s time to join the Bitcoin mining pool. The mining pool represents individuals who are working in groups, and they try to solve the blocks together and in the end, share their reward. Without using this pool, you might mine for years and never earing anything.