Bitcoin – Good Opportunity Or Big Scam
What is BITCOIN?
Bitcoin is digital money, created and stored electronically. Bitcoin is not printed and is not controlled by anyone. It is produced by numerous people using computers all over the world using software that solves math problems. Bitcoin is the first example of such a currency called cryptocurrency. Given that this is just the beginning of the revolution of digital money, bitcoin is easiest to explain with the help of the classical development of today’s currency through gold.
Why is it different from other currencies?
Bitcoin is used for shopping in electronic form. In that sense, it does not differ from any other currency (dollar, euro …) which is also traded digitally.
However, bitcoin’s most significant characteristics and at the same time, the biggest difference from other currencies is because is decentralized. No institution controls the bitcoin network. Current Bitcoin advocates consider it an enormous plus since value oscillation is only due to people. Since Satoshi Nakamoto has published his cryptocurrency in 2008, we are witnessing the progress of digital money, the companies that deal with it and the source code. Using this public, distributed code, dozens of promising currencies appeared. However, only a few of them were singled out as true competition to Bitcoin.
Here is Top 100 Cryptocurrencies by Market Capitalization.
How to start?
Step 1 – Choosing your Bitcoin wallet
Bitcoins are actually not stored anywhere. Secure Digital Keys are stored by accessing bitcoin addresses and signing transactions. This information is stored in a bitcoin wallet.
At this time you can choose from a variety of web, software (PCs, laptops) and mobile digital wallets, and we will list some of the most popular and safest.
- Web wallets
The simplest and easiest way to set up your digital wallet is just through the web provider of this service. Potentially they are safer than the software, but they offer more opportunities and mobility of access.
Each of them has different characteristics (design, features) and depending on your preferences you can choose which one you want. However, they all work on the same principle: you set the address of the wallet / account where you can still make transaction.
- Software wallets
Software wallets are installed on your computer, giving you complete control over your wallet and are generally considered much safer since they do not depend on 3rd party service. You are responsible for the security of your bitcoins (malware, spyware) and backing up or backup, in the event of an unexpected error (deletion, formatting, reinstallation of the OS).
- Mobile wallets
Mobile wallets let you do that – mobility. You can take your bitcoins wherever you go and simply pay for them in physical stores by scanning the QR at the address or using NFC.
You can select a wallet to store your bitcoin so you can start transacting on the network on https://bitcoin.org/en/choose-your-wallet
Step 2 – How to get Bitcoins
The next step is, of course, to get some bitcoins. There are several options to get to bitcoin.
Probably the easiest way to get into possession of your first bitcoins is to buy them. You can buy bitcoins in one of the following locations:
- https://localbitcoins.com – Here you can find people near you who will sell you bitcoins directly
- https://www.bitstamp.net – Bitcoin exchange located in EU (Highly ranked)
- https://www.coinbase.com – Coinbase is a secure online platform for buying, selling, transferring, and storing digital currency.
- https://www.bitquick.co/ – Looking To Buy Bitcoin Instantly and Sell Bitcoin Through A Trusted and Authentic Source?
STEP 1: Pick your mining company
Cloud mining is the practice of renting mining hardware (or a portion of their hashing power) and having someone else do the mining for you. You are typically ‘paid’ for your investment with Bitcoin. Even if the hardware isn’t used for mining Bitcoin. As with general investing, it’s important to do your research, because there are a lot of companies out there which purport to be the best and even the largest have their detractors.
Genesis Mining is arguably the largest and most reputable of the bunch. HashFlare told Digital Trends in an interview that every one of its customers has turned a profit using its service. It did say though, that if many of them had invested in Bitcoin at the right time they may have made more money.
For a broader range of options, CryptoCompare maintains a list of mining companies with user reviews and ratings, though be aware there are a lot of reviewers looking to shill their referral codes in the comment section.
STEP 2: Choose a mining package
Once you have picked a cloud mining provider and signed up, you need to pick a mining package. That will typically involve choosing a certain amount of hashing power and cross-referencing that with how much you can afford to pay. Typically, paying more will give you a better return or you will turn a profit quicker, but that’s not always the case.
Most cloud mining companies will help you decide by giving you a calculation based on the current market value of Bitcoin, the difficulty of Bitcoin mining, and cross-referencing that with the hashing power you’re renting. However, it’s important to note that those numbers can and do change, so it is important to look at market trends and estimate where Bitcoin may be going before choosing your contract. What may be profitable now, may not be if Bitcoin’s value crashes.
Some cloud mining companies will sell you a contract on a “pre-sale” basis. That is effectively asking you to pay upfront for a contract that won’t begin for weeks or months when new hardware becomes available. In most circumstances that is not advisable because there is no way to guarantee those contracts will be profitable when they start and not even a concrete indication of when that will happen.
STEP 3: Pick a mining pool
After choosing your contract, most cloud mining companies will ask you to pick a mining pool. That’s where you choose a global mining team to join.
It’s a method of increasing the chance of earning Bitcoin through mining and it’s a standard practice in the cloud and personal mining. There are pros and cons of different pools that go beyond the scope of this article, but joining an established and proven pool with low fees is likely to be your best bet.
One of the most popular and dependable pools for new miners is Slush Pool, but you should always do your own research. Like companies, many pools aren’t trustworthy.
STEP 4: Select a wallet
Once you’ve completed that step your cloud mining can begin and within a few days or weeks, you should start to see your cloud mining account begin to fill with Bitcoin. Withdrawing it and putting it into a secure wallet of your own is a good plan as soon as you have a small holding, though some cloud miners will allow you to reinvest your earnings for greater hashing power.
Of course, then you need to decide what you’re going to do with your bitcoins in the long term. While there are many products and services you can purchase with bitcoins, prices can fluctuate, and you may have to do even more research to see if you’re getting a good deal. We can also help you trade your bitcoin for a different cryptocurrency or sell it directly for cash.
What about mining on my own hardware?
Due to the high costs involved, mining Bitcoin yourself is only recommendable if you have ready access to plentiful and more importantly, cheap electricity and a powerful network connection. Before investing in any hardware or mining setups, it is imperative you use a Bitcoin mining calculator to see if you can actually turn a profit with all costs considered.
If you can, you’ll need to pick the right ASIC miner to do it with. The best method is to consult mining machine profitability to see which miners are currently turning a profit. The site Asicminervalue.com is particularly helpful here, showing a constantly updated list of miners and how profitable they are. Note that the most profitable machines make between $10 and $30 profit per day.
Cryptocurrency and Bitcoin Affiliate Programs
Many bitcoin affiliate programs are similar to referral programs, whereby registering users, you make a cut of their trades for up to a year. Other crypto programs include recommending digital wallets like Ledger and Trezor.
1. Binance (referral program)
Commission: 20% of referral’s trade fees, 40% if holding 500+ BNB
Payout: Pay in real-time to Binance account
2. Coinbase (referral program)
Commission: When a user buys $100 of BTC, receive $10 of BTC
Earning period: Once per customer
3. Ledger Wallet
Commission: 10% of the net sale amount
Payout: Payout in BTC, with 0.1 BTC minimum payout amount
Commission: 20% of the user’s trading fee per trade
Earning period: 1 year from the user’s registration date
5. Trezor Wallet
Commission: 20% of sales