5 Mistakes Most Bitcoin Buyers Make

Nowadays, it's not easy to buy Bitcoin. Some purchasers make some costly mistakes when they try to earn some return on their investment for the first time. Therefore, you may want to to be careful when making this purchase. Given below are 5 common mistakes that Bitcoin buyers make. Make sure you avoid these mistakes.

Wrong Address 

Make sure you enter the right address when buying Bitcoin. If address is wrong, it won't be possible to reverse the transaction, and you will lose your money forever. Unfortunately, you can't rectify this mistake if the address you entered was wrong.

Therefore, don't forget to triple check your address to ensure it does not have any errors. It won't take hours to check the details. It's better to ask a friend or family member to go over your details.

Confirmations

It is a great idea to purchase Bitcoin in person. You should only hand over your hard-earned money when the transaction is complete. It is even better to get multiple confirmations. Therefore, you may want to bear patience in order to make sure there will be no issues later on. This is even more important if you are going to invest a large amount of money.

Payment Methods

One of the most common ways to make payments online is to use PayPal or a credit card. The reason is that these methods are quite convenient. Plus, they can save you a lot of money. However, keep in mind that you will have to pay higher fees to enjoy this convenience. For example, you will have to face chargeback issues.

Therefore, it is better to choose a less expensive method to make payment. For example, you can make a bank transfer. This is even more important if you are going to spend a large amount of money on a regular basis. In the long run, it can save you a lot of money.

Missed Opportunity 

We know that people have been making a lot of money by purchasing and selling Bitcoin. However, if you are going to make this purchase just because you don't want to miss out on this money-making opportunity, you need to think again.

Buying Bitcoin without a solid strategy in place is a bad idea. As with any other purchase, you need to do your homework before you invest in Bitcoin. Therefore, having a solid strategy in mind is of paramount importance.

Research

Nowadays, the process of buying Bitcoin and other currencies is quite straightforward. The reason is that there are many exchanges and a lot of payment methods to choose from. But the problem is that we all tend to make mistakes especially when we are going to buy something for the first time. Therefore, you may want to take your time before making this purchase.

In short, if you avoid the mistakes described above, you can purchase Bitcoin safely and without any worries. Just make sure you have the basic knowledge of cryptocurrencies. Hope this will help you make informed decisions.

Investing in Bitcoin is a great idea as this currency is expected to rise in value in the future. We Buy Any Bitcoin is an ideal platform if you want to find out where to sell Bitcoin.

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Should Bitcoin Replace Currency of Central Banks?

Distinction between Bitcoin and Currency of Central Banks

What is the difference between central bank authorized currency and Bitcoin? The bearer of central bank authorized currency can merely tender it for exchange of goods and services. The holder of Bitcoins cannot tender it because it's a virtual currency not authorized by a central bank. However, Bitcoin holders may be able to transfer Bitcoins to another account of a Bitcoin member in exchange of goods and services and even central bank authorized currencies.

Inflation will bring down the real value of bank currency. Short term fluctuation in demand and supply of bank currency in money markets effects change in borrowing cost. However, the face value remains the same. In case of Bitcoin, its face value and real value both changes. We have recently witnessed the split of Bitcoin. This is something like split of share in the stock market. Companies sometimes split a stock into two or five or ten depending upon the market value. This will increase the volume of transactions. Therefore, while the intrinsic value of a currency decreases over a period of time, the intrinsic value of Bitcoin increases as demand for the coins increases. Consequently, hoarding of Bitcoins automatically enables a person to make a profit. Besides, the initial holders of Bitcoins will have a huge advantage over other Bitcoin holders who entered the market later. In that sense, Bitcoin behaves like an asset whose value increases and decreases as is evidenced by its price volatility.

When the original producers including the miners sell Bitcoin to the public, money supply is reduced in the market. However, this money is not going to the central banks. Instead, it goes to a few individuals who can act like a central bank. In fact, companies are allowed to raise capital from the market. However, they are regulated transactions. This means as the total value of Bitcoins increases, the Bitcoin system will have the strength to interfere with central banks' monetary policy.

Bitcoin is highly speculative

How do you buy a Bitcoin? Naturally, somebody has to sell it, sell it for a value, a value decided by Bitcoin market and probably by the sellers themselves. If there are more buyers than sellers, then the price goes up. It means Bitcoin acts like a virtual commodity. You can hoard and sell them later for a profit. What if the price of Bitcoin comes down? Of course, you will lose your money just like the way you lose money in stock market. There is also another way of acquiring Bitcoin through mining. Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the black chain, and also the means through which new Bitcoins are released.

How liquid is the Bitcoin? It depends upon the volume of transactions. In stock market, the liquidity of a stock depends upon factors such as value of the company, free float, demand and supply, etc. In case of Bitcoin, it seems free float and demand are the factors that determine its price. The high volatility of Bitcoin price is due to less free float and more demand. The value of the virtual company depends upon their members' experiences with Bitcoin transactions. We might get some useful feedback from its members.

What could be one big problem with this system of transaction? No members can sell Bitcoin if they don't have one. It means you have to first acquire it by tendering something valuable you possess or through Bitcoin mining. A large chunk of these valuable things ultimately goes to a person who is the original seller of Bitcoin. Of course, some amount as profit will certainly go to other members who are not the original producer of Bitcoins. Some members will also lose their valuables. As demand for Bitcoin increases, the original seller can produce more Bitcoins as is being done by central banks. As the price of Bitcoin increases in their market, the original producers can slowly release their bitcoins into the system and make a huge profit.

Bitcoin is a private virtual financial instrument that is not regulated

Bitcoin is a virtual financial instrument, though it does not qualify to be a full-fledged currency, nor does it have legal sanctity. If Bitcoin holders set up private tribunal to settle their issues arising out of Bitcoin transactions then they might not worry about legal sanctity. Thus, it is a private virtual financial instrument for an exclusive set of people. People who have Bitcoins will be able to buy huge quantities of goods and services in the public domain, which can destabilize the normal market. This will be a challenge to the regulators. The inaction of regulators can create another financial crisis as it had happened during the financial crisis of 2007-08. As usual, we cannot judge the tip of the iceberg. We will not be able to predict the damage it can produce. It's only at the last stage that we see the whole thing, when we are incapable of doing anything except an emergency exit to survive the crisis. This, we have been experiencing since we started experimenting on things which we wanted to have control over. We succeeded in some and failed in many though not without sacrifice and loss. Should we wait till we see the whole thing?

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How "Crypto" Currencies Work - A Brief Overview Of Bitcoin, Ethereum & Ripple

"Crypto" - or "crypto currencies" - are a type of software system which provides transactional functionality to users through the Internet. The most important feature of the system is their decentralized nature - typically provided by the blockchain database system.

Blockchain and "crypto currencies" have become major elements to the global zeitgeist recently; typically as a result of the "price" of Bitcoin skyrocketing. This has lead millions of people to participate in the market, with many of the "Bitcoin exchanges" undergoing massive infrastructure stresses as the demand soared.

The most important point to realize about "crypto" is that although it actually serves a purpose (cross-border transactions through the Internet), it does not provide any other financial benefit. In other words, its "intrinsic value" is staunchly limited to the ability to transact with other people; NOT in the storing / disseminating of value (which is what most people see it as).

The most important thing you need to realize is that "Bitcoin" and the like are payment networks - NOT "currencies". This will be covered more deeply in a second; the most important thing to realize is that "getting rich" with BTC is not a case of giving people any better economic standing - it's simply the process of being able to buy the "coins" for a low price and sell them higher.

To this end, when looking at "crypto", you need to first understand how it actually works, and where its "value" really lies...

Decentralized Payment Networks...

As mentioned, the key thing to remember about "Crypto" is that it's predominantly a decentralized payment network. Think Visa/Mastercard without the central processing system.

This is important because it highlights the real reason why people have really began looking into the "Bitcoin" proposition more deeply; it gives you the ability to send/receive money from anyone around the world, so long as they have your Bitcoin wallet address.

The reason why this attributes a "price" to the various "coins" is because of the misconception that "Bitcoin" will somehow give you the ability to make money by virtue of being a "crypto" asset. It doesn't.

The ONLY way that people have been making money with Bitcoin has been due to the "rise" in its price - buying the "coins" for a low price, and selling them for a MUCH higher one. Whilst it worked out well for many people, it was actually based off the "greater fool theory" - essentially stating that if you manage to "sell" the coins, it's to a "greater fool" than you.

This means that if you're looking to get involved with the "crypto" space today, you're basically looking at buying any of the "coins" (even "alt" coins) which are cheap (or inexpensive), and riding their price rises until you sell them off later on. Because none of the "coins" are backed by real-world assets, there is no way to estimate when/if/how this will work.

Future Growth

For all intents-and-purposes, "Bitcoin" is a spent force.

The epic rally of December 2017 indicated mass adoption, and whilst its price will likely continue to grow into the $20,000+ range, buying one of the coins today will basically be a huge gamble that this will occur.

The smart money is already looking at the majority of "alt" coins (Ethereum/Ripple etc) which have a relatively small price, but are continually growing in price and adoption. The key thing to look at in the modern "crypto" space is the way in which the various "platform" systems are actually being used.

Such is the fast-paced "technology" space; Ethereum & Ripple are looking like the next "Bitcoin" - with a focus on the way in which they're able to provide users with the ability to actually utilize "decentralized applications" (DApps) on top of their underlying networks to get functionality to work.

This means that if you're looking at the next level of "crypto" growth, it's almost certainly going to come from the various platforms you're able to identify out there.

Article Source: http://EzineArticles.com/9870313

Inside The Cryptocurrency Revolution | VICE on HBO