Bitcoin: Live Rates & Sites for Trading
Bitcoin has been a hot topic generating a significant amount of coverage and discussion for years now and many sees it as a complement to forex trading. You may have heard about it on the news, but what is it really? What’s the hype all about? How do you buy Bitcoin? In this article, we will answer those questions and more as we delve into the world of BTC and cover some of the pros and cons of using this cryptocurrency.
Further down on this page, you can learn how to trade Bitcoin and can see a top list of sites that offer trading for British customers. But first, check out the Bitcoin live rates right now.
Table of Contents: Overview
Bitcoin Live Rates Right Now
BTC/EUR
ETH/BTC
ETC/BTC
However, this relatively new topic is still quite vague for many. That’s why we’ve put together this page so you can get all the information about Bitcoin. You can also read about more cryptocurrencies and learn how Blockchain works, because Bitcoin (abbreviated BTC in the foreign exchange market) should no longer be seen as exclusive. For those of you who want to buy Bitcoin, do not miss our article on how to invest in Bitcoin without being scammed (coming soon).
For the die-hard, you can read about the blockchain technology behind BTC, which should be seen in the whole context and to understand how it all works, you also need to have basic knowledge of the technology behind this topic. If you have not already read our dedicated pages about cryptocurrencies and Blockchain, it is highly recommended for those who want to gain in-depth knowledge.
Here you have everything you want to know about Bitcoin, the digital currency that is revolutionizing the world economy.
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What is Bitcoin?
Bitcoin is a cryptocurrency and an online payment system that was invented in 2009 by an unknown person or group known as Satoshi Nakamoto. It was designed to replace traditional currencies and overcome some of the shortcomings of other currencies like cash, such as no transaction limits and lower fees. At the time, there were no smartphones, and there wasn’t widespread Internet usage which would be one of the reasons technology allowed for this virtual currency to exist. The following is a list of the advantages and disadvantages of BTCs.
There are many benefits to cryptocurrencies (read more about these in the paragraph below) and this new technology opens up many new doors for safe and secure trading. The biggest difference between currencies like the Dollar and the Euro (and other Fiat currencies) is that Bitcoin has a value that is based on completely different factors. We would like to point out that the term “value” should not be confused with “price” for the currency.
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What are the advantages with Bitcoin?
There are many unique and positive factors with BTC, such as:
Faster Transactions
Compared to other currencies like the US dollar or Euro, BTC has faster transaction times. While you might wait 2-3 business days for a money transfer with your bank, BTC transactions only take minutes (although not instantaneous like handing over cash). This is because they are sent directly from one person to another without going through any middlemen or banking systems.
Privacy and Anonymity
Since BTC isn’t tied to any government or institution, you don’t have to worry about not getting your money back if the bank goes under or having your account frozen. Also, because BTC is decentralized, there are no transaction fees. No wonder it’s become famous for making black-market purchases.
Lower Fees
No one is in charge of BTC; therefore, there are no transaction fees since you don’t have to pay for salaries for employees or rent for space at a central office. The average BTC transaction fee is lower than international wire transfers, and they are completed more quickly.
Bitcoin Does Not Exist as a Physical Entity Such as Cash
BTC is merely a virtual currency that you can own and store on your computer, Smartphone, or even on paper if you wish to do so. It exists only in cyberspace and is handled by transactions facilitated through the BTC network. Each transaction involving BTC has a cryptographic digital signature that is unique to each transaction and can be used to identify the parties involved in the transaction.
Ease of Use
Sending money to overseas accounts is fast and easy since it’s transactions do not have any Western Union or Money Gram fee. Most transfers, including international ones, are completed within a few hours. BTC can be easily transferred from one individual to another through several exchanges and services.
What are the disadvantages with Bitcoin?
Just like advantages, there are quite a few headaches and risks associated with owning or storing BTC.
Volatility
Bitcoin’s value can be rather volatile, and it has been known to lose as much as 70% of its value within a single day. Due to the decentralized nature of this cryptocurrency, there is no central authority that controls it, and therefore, the price is determined by demand and supply.
It’s not Widely Accepted
While BTC has become very popular lately, it’s nowhere near being widely accepted by most retailers. Some merchants do accept it, but their numbers are still quite limited and continue to shrink every day, with many businesses choosing not to accept BTCs at all. Despite its growing popularity, most people still regard it as a speculative investment rather than an actual currency.
No Protection From Theft
Just like cash, the use of BTCs can make you a target for criminals who seek to exploit this opportunity and steal your funds using various methods such as computer hacking or phishing scams. If you lose access to your private key or if someone manages to trick you into sending them your funds, that’s basically it. You would have no way of retrieving your BTCs or even proving that you had them in the first place.
Loss of Wallets and Private Keys
Since it exists only as an online entity, any of your private information related to your Bitcoin wallet can be lost due to the loss of either your private key or your BTC wallet. The latter can happen if you lose access to your computer or Smartphone, rendering your Bitcoins unrecoverable. Your private key is required for every transaction that involves BTC, so the loss of this information will lock out any possibility of retrieving your funds later on.
No Protection From Inflation
Unlike traditional currencies, the use of BTCs does not provide any protection against inflation. Because there is a limit to how many BTCs can be mined and in circulation at any given time, the value of your BTC might decrease as others decide to cash in on their holdings. Once there are no more Bitcoins to mine, the only option left will be to either buy them from others or exchange goods and services for them.
Money Laundering
BTC transactions are anonymous due to their anonymity, and it can make them rather susceptible to use in money laundering schemes and other illegal activities. Only you know who you are dealing with, and only you will be able to enforce any kind of accountability for your funds.
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How do you evaluate if you are buying BTC at the right time?
There is no way of knowing when to buy Bitcoin or when it’s price is at its peak or near a downfall. While you can follow some analysts and opinionated posts on the internet, the only reasonable way to determine when to buy is with real-time data from reliable sources such as BTC charts. You can check the current price and how it has changed in the last month, the current price and how it has changed in the last 24 hours (updated every 1 minute), or the number of Bitcoin purchase per day. Look for information from as many sources as possible to determine if the time is right for you to follow the general trend.
Let’s look at some of the three ways you can trade BTC.
Bitcoin Exchanges
These are websites that allow buyers and sellers to meet and exchange BTCs using different fiat currencies. Currently, the most popular BTC exchanges include Bitstamp, BTC-E, BtcChina, Korbit, Coinbase, and LocalBitcoins.
Crypto Brokers
These are companies or individuals who run their verification and escrow services to validate the transfer of funds from buyers to sellers. While more than a few online brokers specialize in trading it using different fiat currencies, the most popular of these include Coinmama, Cex.io, Coinhouse, and Indacoin.
Direct Trades
This is the most anonymous and decentralized way of trading Bitcoins with others, allowing buyers and sellers to meet and exchange funds without having BTC in their possession until the final transaction happens. This method involves a certain amount of risk on both parties involved but allows it’s users to trade their coins directly, similar to how they would use cash to buy local goods and services.
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Bitcoin Mining
Bitcoin mining is the process of creating Bitcoins. How does Bitcoin come about, how is the digital currency created? When a country needs to create new money, they turn to the central bank, which produces new banknotes, and cryptocurrencies do not work.
To create BTC, a member, a “miner”, needs to verify BTC transactions and add them to the open and shared accounting protocol, the blockchain. For each block added to the chain, a share of a new BTC is created. The miner receives part of that share in return for work performed and it is the incentive to perform this work. This is how the system is built to get it around. When all 21 million BTC have been mined, the process will cease and BTC has reached its full value and potential.
