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Bitcoin vs. Bitcoin Cash: What Should You Invest In?
With the growing popularity of Bitcoin, the number of users and the number of transactions conducted increased every year. Against this background, the main problem of cryptocurrency became increasingly noticeable – a limited block size of 1 MB. Until 2017, there was the talk of increasing this parameter, but the matter did not go beyond proposals. Users complained about delays in conducting transactions, which were often delayed for a day or even several days.
Many solutions were proposed, one of which was a commission increase. This approach solves the problem with the speed of operations but leads to high costs for network participants. Not surprisingly, the emergence of the Bitcoin Cash fork on August 1, 2017, was supported by the majority of the cryptocurrency community. At the same time, BTC users were divided into two groups – some remained loyal to Bitcoin, while others switched to Bitcoin Cash. What are the features of cryptocurrency? What is more profitable to mine – BTC or BTH? These and other questions will be discussed below.
What is the difference between Bitcoin Cash and Bitcoin?
The developers of the technology believe that the main value of Bitcoin is in itself. SegWit is said to be reliable for shipments. Another advantage is a very strong team, which, among other things, is responsible for the main Bitcoin clients.
The main advantage of Bitcoin Cash is “fast” transactions. Block size increased to 8MB. Because of this, the commissions remain at early levels of cryptocurrency development – up to $ 0.1. The developers at the moment have not solved the problem of the unreliability of shipments, but they have a plan for how to achieve this.
Bitcoin investment
No cryptocurrency can replace Bitcoin. This is the main source of income for crypto traders, the main object of investment. There are no alternatives to the cue ball, so investing in this cryptocurrency is profitable. It is not even about its reliability, popularity, and volatility. There is a demand for bitcoin. His course increases many times, which makes it possible to earn good money on short-term investments.
Bitcoin Cash Investment
For investors who make transfers and payments regularly and in large quantities, it is best to use Bitcoin Cash. This is a convenient and least expensive tool. In addition, the cache is able to accelerate and overtake in terms of growth the main cryptocurrency – the cue ball. Regular course correction allows you to buy Bitcoin Cash at a bargain price.
Conclusion
Overall, Bitcoin Cash has better growth prospects. A virtual coin has all the characteristics required for a modern cryptocurrency – a large block size, better transaction speed, a high level of security and the possibility of mining. As for profits, on June 1, 2018, there is not much difference that there is no mining. That is why when choosing a cryptocurrency, it is important to focus on long-term goals. If we are talking about mining in order to keep coins in your wallet, the variant with Bitcoin Cash looks more interesting. But Bitcoin is also not worth writing off. In the short term, he is able to show good growth. What will happen in 1-2 years or more is difficult to predict.
What is Gemini?
The exchange is located in the United States and began its operations in 2015 after it was approved by the State Department of Financial Services of New York. The owners of the site – brothers Cameron and Tyler Winklevoss immediately set a goal to make it a fully regulated global digital asset exchange. Initially, the exchange aimed mainly at attracting institutional investors. Later, she began to express interest and private traders. The site interface is made exclusively in English since the site team is interested in large players from highly developed countries. Gemini is considered to be one of the most reliable cryptocurrency exchanges, as it works with individual investors and investment funds in full compliance with the requirements of the law.
Supported Coins on Gemini
For a long time, the Gemini cryptocurrency exchange traded only Bitcoin, Etherium and USD. Recently, a digital coin Zcash was connected to the exchange. Total on-site trading is possible for 6 trading pairs: BTC / USD, ETH / USD, ETH / BTC, ZEC / USD, ZEC / BTC and ZEC / ETH. The leading position with a large margin in daily turnover is occupied by a pair of BTC / USD, i.e. the one for which, first of all, the exchange was created. The turnover of the pair is 30 million dollars per day. The second place is occupied by ETH / USD with a large lag in turnover, its volume is equal to six million dollars a day.
Commission Fees on Gemini
The commission on the Gemini exchange is at an acceptable level for trading. Restrictions on cryptocurrency crediting are completely absent. When crediting a deposit in US dollars, the user can deposit no more than $ 500 per day on his personal wallet. And, accordingly, up to $ 15 thousand per month. There is also a limit on the withdrawal of funds for a dollar account, which is equal to $ 100 thousand per day. There are no restrictions on withdrawal of funds in cryptocurrency. Gemini does not take commissions for input and output, which is a very positive thing for traders. The site allows you to directly deposit and withdraw dollars. To enter funds, during the registration of a new user, you need to bind the account in the bank to the account on the exchange. Do not forget that each bank can charge transactions
Security Measures
The implementation of a qualitative level of security is the most important direction for the operation of any cryptocurrency exchange. Gemini is responsible for this issue. A well-known face was involved in the work on defense – Than Paya. This person is known for the successful organization of the Airbnb security service, as well as his participation in building Google Wallet.
Gemini is one of the most popular cryptocurrency exchanges in the world. There is no official statement about hacking the exchange. The site has an impeccable reputation in the cryptocurrency market. Gemini specialists are making great efforts to implement a quality level of security. That is why on the site you can find a large number of clients and larger organizations with a solid size of the investment portfolio. The site operates under the control and in strict accordance with the requirements of the Financial Services Department of New York, which gives a certain level of confidence in the quality of the Gemini protection level.
In general, the security level of Gemini users is at a high level, as evidenced by the high level of site demand among cryptocurrency traders.
How Ethereum Works
Only the best developments survived and continued to develop, those that were able to offer consumers new, interesting ways of working, wide application possibilities and attractive prospects for the future. One of these “stars” is undoubtedly the cryptocurrency Ethereum, here we call Ethereum or simply Ether. Despite the fact that you cannot call it new, investors have not yet lost interest in it, its popularity is growing day by day, and some experts (and there are quite a lot of them) are sure that Aether is able to compete on equal terms with Bitcoin and even select the last palm.
Branching Ether
In the history of Ethereum was not without the “black” pages. The year of 2016 turned out to be unfortunate, when hackers broke into The Dao (a venture fund based on Ether) and stole, as much as 64 million USD. Naturally, the crypt was stolen, we just brought its equivalent in dollars. In order to somehow get out of the predicament and compensate the losses to the affected users, the currency was divided into 2 independent branches – Ethereum (ETH) and Ethereum Classic (ETC). The separation, along with the burglary, markedly lowered the coining course, it took a long time to recover. But after all these twists and turns, the value of the currency began to grow, and both branches added to the price.
What is Ethereum
Technical details and specific nuances are unlikely to be of interest to the masses, so we will try to explain everything simpler. Ethereum is an open-source crypto platform operating on the blockchain technology. In other words, this is the base on which developers can build and deploy decentralized applications.
Buying and selling Ethereum
In addition to the above ways to get coins of Ether, you can also buy them. Since the currency has reached a fairly high level, it is represented on many stock exchanges and exchange offices. From well-known services, we can recommend Cex, Poloniex, Livecoin, Bitfinex. These are the largest and most reliable converters for Ethereum.
The exchanges are good because there is access to news and quotes, there is also the possibility of exchanging information with colleagues, and it is still possible to put coins on different wallets.
Is Ether trustable?
The question is not idle, and he cares about many. After all, it’s very difficult to predict what will happen to one or another digital currency in the future, and nobody wants to lose their money. Investing is generally a risky business, and if cryptocurrency is the object of investment, then even more so. After all, this market is quite specific.
But if there is no accurate data that gives confidence in the answer, then it is necessary to analyze the available information and on the basis of this analysis build more or less plausible assumptions about further developments.
What sways Ethereum, then after such an analysis, its future seems quite encouraging, although not without problematic moments. The project is young enough and, of course, not without risks. However, even if the worst happens and the platform ceases to exist, no global catastrophe will happen. Naturally, there will be losses, but not critical. But in the event of further development of the coin in an uptrend, investors can create fortunes over time.
What is BitMEX?
BitMEX Cryptocurrency Exchange is one of the leading platforms in terms of daily trading volume. Every day more than 3 billion dollars are traded here. The main audience of the founders of the exchange sees professional traders. It will be difficult for a newcomer to the cryptocurrency world to understand here. But after all, nothing is impossible! In this review, we will look at the advantages and disadvantages of BitMEX, and also describe how to go through all the stages of work on the stock exchange.
The website of the exchange contains not only information about the team, but also many other useful information. There are instructions on margin trading, a guide to contracts, a section with frequently asked questions, a comparison of Bitmex with competitors. The OKCoin and Bitfinex platforms are listed as competitors. You can learn more about BitMEX and other news of the crypto world in this blog. Almost every day there are fresh recordings of various subjects. Pretty informative!
Supported Coins on BitMEX
Listing of this exchange is not the widest. Here you can sell and buy a total of 12 varieties of digital coins. The exchange does not support any fiat currency. For many traders, this is a significant drawback. Trading on the stock exchange is possible for a number of pairs, one of which you can choose in the top menu of the page. The relevant fields indicate the leverage and data on the contract. The user also sees the analytical and reference information, with a schedule of changes in price movements and a list of user orders. All settings are quite flexible and easy to change.
Transactions are carried out through smart contracts when trading is carried out not by the coins themselves, but by their derivatives. As mentioned above, BitMEX supports margin trading, but caution should be exercised with leverage…
Commission Fees on BitMEX
It is important to note that the input and output of funds to the Bitmex crypto-exchange is carried out only through one Bitcoin cryptocurrency. The term of transfer of funds to your balance depends on the degree of congestion of the PTS network, but usually, the funds arrive within 20-30 minutes. As for commissions, for each operation on the Bitmex exchange, certain commission fees are provided. Moreover, these payments differ depending on whether a participant is considered to be a baker or market maker. Another commission depends on the specific digital coins, which are traded. The exchange offers a completely unique instrument called “fair price”. As a result, when marking contracts, the last price is replaced by a fair price. This avoids unnecessary liquidations at high volatility of the course, not depending on the value of the index.
Security Measures
The preservation of currency on the account is the minimum that BitMEX can guarantee. Here, MultiSig cold wallet is used to store the crypt. This is a bitcoin wallet that stores coins offline and requires signatures of several individuals to access. Bitmex allows you to withdraw money from the deposit only after confirmation of this operation by two of the three partners. This is a guarantee that the account is not hacked and the money is not scammers. The resource also uses multi-deposits, Amazon Web Services to protect text messaging servers. For additional security, you can enable two-factor authentication using YubiKey or Google Authenticator.
ICO law 101
Are you planning to launch your own ICO business? If so, there are so many things that you need to consider – from creating the product, hiring the right team, and marketing it. It can be quite overwhelming and frustrating at the same time.
At the same time, there are some regulations that you have to follow. You have to take note that laws vary per location so it would be better for you to do your own research beforehand. Here are some of the basics that you need to know before you launch your ICO business.
Look for lawyers who specialize on ICO
Hiring an attorney who specializes in ICO law is a foolproof way to keep you within the legal limits. In the United States, there are three law firms that specialize in ICO laws which you can look into.
These are:
• Perkins COIE
• K and L Gates
• Cooley Law Firm
Setting up your ICO business
The first thing that you should consider when creating your ICO business is the type of operations that you will have. Most companies would often times create two businesses, one is for operations of the business itself and the second one is for selling tokens.
Deciding Which Jurisdiction to Choose
Remember that cryptocurrency is still quite a new concept and countries have different regulations regarding that. It is important to do prior research where your company can reap the most advantage. Choosing the best one would definitely give a positive impact so choose wisely.
Regulations for the Security of Your Token
The type of tokens you offer will also affect the laws you have to follow. You can check the SEC for regulations for security tokens but as mentioned before, laws vary by country. One way for you to check if your token is classified or not is to subject it to the Howey test.
Know Your Customer Law (KYC) and Anti-Money Laundering Law (AML)
ICO is a risky business. It requires you to ask people to invest in currencies that currently do not have values. Before launching your own ICO, it is best that you check the AML and KYC laws in your country. This financial surveillance laws usually vary from one country to another.
The AML and KYC laws usually ask customers for their IDs and proof of address to verify their identities. You are also required to keep this information confidential unless the authorities ask for these important details.
Laws on Crowdfunding
Although ICO is a new concept, crowdfunding is a common funding route for many businesses. It is important that you check the laws with regards to crowdfunding in your country. It is also possible that it varies from one state
Tax Laws
Business models are usually taxed depending on the jurisdiction of the tax laws of the country it is operating in. Depending on the country’s jurisdiction, your ICO business will be taxed in accordance with its tax regulations.
Laws on Advertising
Another law that you need to know about is on how you can advertise your ICO. There are certain laws in terms of language and delivery of what your ICO token is. It is very important that you take note of this law. This regulation will guide you on how to promote your ICO product without any problems.
Patent Your ICO
Since ICO is a competitive and revolutionary product, it is very important to patent yours. This is to stop other blockchain companies to use your product for their own gains. Legal experts consider your white paper as an Intellectual Property Disclosure.
Conclusion
Laws are indeed important. They do not only protect your business but your customers as well. It is very important that you research and review these relevant laws for better understanding. In this way, you will be able to understand the legalities of your ICO Company.
To ensure a successful ICO campaign, one needs to prepare an informative white paper that clearly and concisely presents important information pertaining to the project. However, many people believe that preparing one is a difficult undertaking.
Although it definitely takes a lot of research and study to create a successful white paper, you can actually do it yourself. So, how do we really write one?
White paper – what is it?
A white paper is the main document of your project. It presents an outline of the problem that your project can solve. The solution is written and presented in a detailed manner. This includes a detailed product description, its system, and how it interacts with the users.
The white paper also includes the structure of the company and the members of the ICO team. It also presents the goal of the company and its plans for the future.
A successful white paper is made up of three different parts
• Technical Aspect
• Marketing Aspect
• Legal Aspect
Why should you write one?
Your white paper will either bring your ICO Company up or down. The white paper will act as a business proposal to your potential investors. They will judge whether your ICO Company is worth their investment or not.
It is very important that you present your ICO very well. The white paper should be simple and concise. Your white paper should present the structures and other technical details. Also, it should be both written in an informative way that would convince people to invest in your business.
Benefits of having an ICO white paper
Your ICO white paper is an integral part of your ICO. It will convince your possible investors to invest in your project. It is the document that your prospective investors would want to read to have a better understanding of your proposed venture. Your white paper will:
- Define the problem that you want to address
- Present the solution/s that will solve the problem
- Build rapport and trust with the potential investors
- Establish your professionalism and expertise
- Generate investor interest in your undertaking
Things to be included in your ICO white paper
The white paper is usually written in a technical manner. However, it is very important that you also simplify it. In this way, it would be easier for potential investors to understand your white paper.
Some ICOs usually write different white papers for the legal, technical, and marketing aspects of the business. Your main goal in writing a white paper is to discuss the technology you will be using in the business. It should also contain your marketing strategy and your competitors.
To create a good white paper, here are some of the details that you should include.
- Introduction of your ICO
- Table of contents
- Description of the problem
- Describe how your ICO can solve the problem
- An in-depth description of the platform and its system
- Discuss the digital token and how it will work
- Discuss how the funds raised from tokens will benefit the business
- Introduce your advisory board and ICO team
- Give an outline of your business roadmap
- Mention the terms and conditions of the business
What are the characteristics of a good white paper
Your white paper is an integral part of your campaign. Make sure that:
• It is concise and clearly-written
• It attracts your target audience
• Your research and proof to support your claims
• The layout and design of your white paper is attractive but professional-looking
Can you use an ICO white paper template?
You can make your own white paper for your ICO. However, there are some who are unsure about how to proceed. You can look for ICO white paper templates on the internet. It does not actually matter if you use a template or create one, what is important is that you present the key information pertaining to your ICO.
If you are still unsure, however, you can hire the services of professionals to write your ICO white paper. Make sure, though, that you screen them before you hire them.
ICO White Paper Writing Service
Due to the popularity of ICOs, many writing companies offer white paper writing services. A white paper specialist can help you put your business plans into words. Hiring a white paper specialist is worth your money. It is best that you include this in your budget. In this way, you can easily hire one when the need arises.
Your white paper contains the essence of your project. Write it well and put your heart into it. It will help you attain the goals of your ICO that you have been dreaming of!
How To Buy Litecoin
Litecoin is not the most expensive and popular cryptocurrency, but despite this, it is considered one of the most promising and investment attractive. Along with the top-end bitcoin, litecoin was especially popular in 2017, and it does not seem that the creators of this digital currency plan to slow down. For quite a long time, it confidently holds in the top ten of the most successful cryptocurrency projects and is currently ranked 6th. It is noteworthy that the “silver cryptocurrency”, as Litecoin is often called, is of particular interest to representatives of the millennial generation, who now constitute the most active core of the population. On the question of which cryptocurrency they would invest in, the majority of Millennial investors preferred three coins: BTC, ETH, and LTC.
Buying Litecoin on exchange
Chinese Binance Exchange, which was launched just over a year ago, is now considered one of the leaders of the cryptocurrency world: the daily trading volume on the platform is $ 1.6 billion. Here we will buy litecoin. However, it is worth considering that you can buy Litecoin on this exchange exclusively for cryptocurrency, and if you only have a fiat currency, then you need to exchange it for bitcoins first and buy litecoin on exchange already for BTC coins. This information may scare you, especially if you are new to the field, but believe that there is nothing difficult in this scheme. On the contrary, having done these simple manipulations, you will save your money, thereby earning even more on cryptocurrency.
“Pitfalls” when buying Litecoins
Knowing how to buy Litecoin, a newbie will be able to avoid problems and accidental loss of money. But we must not forget that such transactions involve certain risks, which must be remembered:
When conducting transactions, it is important to cooperate only with trusted sites (exchanges, exchange points). The network employs thousands of scammers who are tasked with stealing funds from cryptocurrency users. This condition applies to individuals who offer a direct exchange. When choosing a candidate for such a transaction, it is important to be attentive and read reviews. In the case of fraud to make claims will not work. You should not “be” on the first advantageous offer.
When buying Litecoins, you can come across a restriction of the exchange office. In this way, they fight against intruders. For example, on the first day, the exchange is available for up to $ 100, and with increasing trust in the client, the limit increases.
When trading Litecoin on the stock exchange, you should not rush into selling or buying a virtual coin at the first rate change. It is worth waiting for the right moment, after which the operation.
The number of exchanges that work with Litecoin is limited, but their number is growing every year. The disadvantage is that the choice of available destinations is also small.
When working on the stock exchange much depends on the location of the client. For example, the British have the right to purchase Litecoin from the BitBargain exchange directly, but in other countries, there is no such option. An Australian resident can carry out exchange operations from dollars to Litecoin and back with the help of CoinSpot.
Conclusion
In conclusion, we note that to buy Litecoins you should start by creating your wallet and exploring options for conducting such transactions. In this case, it is not necessary to buy 1 Litecoin – for a start, you can purchase an available number of losses (for a sample). The best way to buy Litecoin for newbies is the exchange office or direct transfer, and for more experienced investors, the preferred exchange.
As more and more people began to be interested in the topic of Bitcoins, they began to trade as a financial asset. It was at this moment that Bitcoin became a phenomenon and is already in the top of search queries in Google around the world. The perception of Bitcoin by the authorities varies greatly – from enthusiastic acceptance to skepticism and ignoring. A question is born is Bitcoin legal? Consider the issue of the legal status of Bitcoin in the world in more detail.
Bitcoin regulations
Cryptocurrencies are a relatively new payment tool that appeared on the world market only in 2009. Accordingly, the legal and legal regulation of such an instrument in the legislation of most countries of the world simply did not exist, which gave rise to many legal conflicts and speculations. To date, only some states have fully established legislative norms regulating the circulation of cryptocurrencies
Why it is so complicated
The principal difference, important for the subsequent determination of the legal status of Bitcoin and other cryptocurrencies, is the presence of certain guarantees of transactions that allow trading operations without the services of intermediaries. All transactions are publicly available and can be tracked by third parties, which eliminates the possibility of counterfeiting such means of payment and eliminates the need to involve the guarantor as a third party to the transaction.
In general, today the majority of states determine the legal status of only specific cryptocurrency systems, primarily Bitcoin, as the most common blockchain system. In particular, the use of bitcoins as full-value money in Japan is fully regulated, in part – in Thailand, Singapore, the USA, China, and Switzerland.
Legality of mining
In most countries, the cryptocurrency is not regulated in any way, and, accordingly, there are no articles of laws in accordance with which miners could be brought to justice. Nevertheless, the majority of both large and small farms operate underground. And this applies both directly to the process of mining tokens, and the production of equipment for it.
Recently, the authorities of different states come to understand that this process should not only not be prohibited but be regulated by law so that the owners of crypto farms act in the legal field without fear of being behind bars. Especially since the mining of cryptocurrency, as well as the production of equipment for it, is a promising direction and will be actively developed in the coming years.
Bitcoin and taxes
While laws for taxing Bitcoin and income from it might differ from nation to nation some are considering Bitcoin and other cryptocurrency taxable classifying them similar to bonds and stocks.
Countries where Bitcoin is prohibited
Only a few countries completely banned Bitcoin. A notable example is Iceland, where the world’s largest Bitcoin mining farms are located, but at the same time, residents cannot buy Bitcoins (only mine). This is done to try to prevent the withdrawal of capital from Iceland. The remaining five countries: Bolivia, Ecuador, Bangladesh, Kyrgyzstan, Vietnam, Algeria, Bangladesh, Bolivia, Cambodia, China, Colombia, Ecuador, Egypt, Indonesia, Iran, Morocco, Nepal, Pakistan, Saudi Arabia, and Taiwan.
Countries where Bitcoin is legal
Argentina, Australia, Austria, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Chile, Costa Rica, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France ,Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Jamaica, Japan, Kyrgyzstan, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Namibia, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Philippines, Poland, Portugal, Romania, Russia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Trinidad and, Tobago, Turkey, Ukraine, United Kingdom, United States of America, Uzbekistan, Venezuela, and Zimbabwe
Countries where Bitcoin is limited
These are countries that have a legal basis for Bitcoin but do not perceive it as a real currency, as Japan does. Most countries of the world fall into this category. For example, in the US, the Commodity Futures Trading Commission classifies Bitcoin as a commodity, while the US Treasury Department views it as a money-handling business (money transfers and conversion to other currencies). Other countries limiting usage of Bitcoin is Canada, India, Jordan, Thailand, United Arab Emirates, and Vietnam.
Mining is a reward in the form of cryptocurrency to those who provide their computing power for the functioning of the network of this cryptocurrency. Miners use expensive equipment to verify transactions and prevent online fraud. They check new transactions and write them to the global book (blockchain).
In other words, mining is the process of solving blocks in blockchain technology. For solving blocks, a miner (a person engaged in mining) receives a reward in that cryptocurrency, the blocks of which he has guessed.
What is it all about?
Any cryptocurrency is a decentralized transaction network for exchanging assets. To create such a network, you need to use computing power and attract certain resources. Since there is no main center in such a network that would manage the process, it is necessary to interest the participants in the network with a certain reward. Yes, now you can really get, or, as they say, mine digital money. Ultimately, mining is just the aspect that characterizes the key difference between digital currency and fiat currency. Moreover, any person can do mining.
How do I mine and what I need
Initially, mining (confirmation of transactions) could be done on a regular personal computer. Then, for computing, they began to use video cards that had a graphics processor for displaying data. But the increase in computing power requirements has led to the emergence of specialized devices, the so-called ASIC (application-specific integrated circuit – a special-purpose integrated circuit). Although in fact, the equipment for mining cryptocurrency is not just chipping, but entire specialized devices designed to calculate keys for blocks.
Miners assemble such devices into farms where hundreds of similar devices can be used. In addition, to obtain efficiency in the work of the miners are combined into pools. Calculations are distributed in the network among miners, which improves their performance. Thus, material costs become very substantial. In addition, the amount of remuneration decreases with the increase in the number of new bitcoins. All this has caused criticism of this method of confirming transactions.
Does it make money?
An affirmative answer to this question is difficult. Uncertainty is one of the major drawbacks of mining. The degree of its expediency depends on the rate of cryptocurrency, the complexity of production, the cost of equipment, electricity tariffs, equipment performance, as well as technical changes, in particular, the volatility of the cryptocurrency market. However, one should not forget that with the increase in the price of cryptocurrencies that can be mined, the payback period for the mining farm also decreases. In addition, as the popularity and demand for cryptocurrencies grow, as well as the increase in the number of farms and production volumes, the price of equipment also increases. Simply put, the later you start mining, the more you have to invest at the initial stage. Five business presently control the Bitcoin mining market:
Cloud mining
Cloud mining (virtual, online, cloud mining) is a new word in mining Bitcoin, Litecoin and other types of cryptocurrency. Cloud mining services are considered the most profitable way to mine cryptocurrency in 2018. Giant data centers are located in places with low tariffs for electricity and heat. They are directly connected with the largest manufacturers of electronics for the world of cryptocurrencies. Therefore, it is profitable for them to expand and increase production volumes.
If you decide to buy Bitcoin, then you probably already know that you first need to have a Bitcoin wallet. To date, there are several options “Bitcoin” repositories. Cryptocurrency wallet – an application, program or a separate device for sending, receiving or storing electronic money. In the terminology of this payment system, a wallet is a pair of two very large numbers. The first number is called the public key – this is the publicly accessible address that is used to send or receive Bitcoins. It is also convenient to represent it as a bank account. You can study them in this article that we have prepared for you.
Types of Wallets
Wallets are different, depending on the device for which they are intended – you can even not use the computer at all and write the keys on paper. Wallets for storing bitcoins are of four main types: wallets installed on your own computer, mobile wallets, Internet wallets, and paper wallets.
- Online wallets
- Mobile wallets
- Desktop wallets
- Paper wallets
- Hardware wallets
Online wallets
Online, or Internet wallets store secret keys on the Internet, on a server that the user does not control. There are several such server services, and they are used, including mobile wallets and wallets for computers – to synchronize data between devices.
Mobile wallets
Unfortunately, the wallet for the computer is not too useful, if you went outside and want to pay for something in the store – in this situation a mobile wallet is useful. This is a smartphone application that stores secret keys for your Bitcoin addresses and allows you to pay directly from your phone. Some wallets use the NFC protocol, allowing you to not enter any information and pay for purchases, simply putting the smartphone to the reader.
Desktop wallets
If first of all you think about security when working with Bitcoin currency, then the most preferable option is to install special software on your home computer. Thus, the file with access keys will be stored locally.
Paper wallets
This is one of the most popular and cheapest solutions, and several sites offer similar services. They create for you a bitcoin address and a picture with two QR codes: one is the public address where bitcoins can be received, and the second is the private key that can be used to send bitcoins stored at this address.
Bitcoin cold storage
If storing bitcoin keys in digital form seems too dangerous to you, for example, there is another way: a wallet that is stored on storage media that is not connected to the Internet. You can store fixed assets in such a cold wallet, and a small operating reserve – in a more convenient wallet connected to the Internet. Thus, even if you lose a mobile phone or a wallet on a laptop will be damaged as a result of a hard disk failure, only a small part of bitcoins will be lost.
The best Bitcoin wallet
First of all, one should understand that there is no universal wallet that can meet everyone’s needs. You need to decide on the type of wallet for your specific criteria. After all, your Bitcoins have two storage options: they can be kept on computers, smartphones, tablets or on online wallets. It is convenient to keep the wallet on the computer in terms of the security of your funds because in the case of online wallets you have to rely on third-party services, although they have certain advantages. However, keeping Bitcoins in your home is safer. In addition, for beginners, they will approach more.