What is Bitcoin?
Bitcoin is a decentralized, peer to peer, digital currency
system, designed to give online users the ability to process transactions via
digital unit of exchange known as Bitcoins. In other words, it is a virtual
currency.
The Bitcoin system was created in the year 2009 by an
undisclosed programmer(s). Since then, Bitcoin has garnered huge attention as
well as controversy as an alternative to US dollar, Euros and commodity
currencies such as gold and silver.
Rise to Popularity
Bitcoin had not attained much attention in the world of
business and finance before the year 2009. It rose to prominence in the
2011-2012 period when it gained over 300%. Bitcoin has had a 400% growth in its
value since the August of last year. As a result, venture capital firms and
investors around the world continue to pay importance to the cryptocurrency.
In the first half of 2014, venture capital firms invested
$57 million in Bitcoin in the first quarter, followed by another $73 million in
the second quarter amounting to a total of $130 million, which is 50% greater
than last year's total of $88 million. This is a complete contrast to the
scenario in 2012 where Bitcoin firms amassed a relatively meagre sum of $2.2
million.
These statistics prove beyond doubt that Bitcoin is worth
your investment, which begs the question, how can you buy and invest in
Bitcoin?
A guideline for novice investors in Bitcoin
The easiest and least complicated method to invest in
Bitcoin is by purchasing bitcoins. There are a
lot of established firms, mainly in the US as well as abroad, who are involved
in the business of buying and selling bitcoins, abbreviated as BTC.
Uniccs.ml
If you are living in the U.S. then Uniccs.ml is the place you're looking for. Uniccs.ml provides it's clients with BTC at an estimated mark up of 1% over the existing market price. Residents of the United States have the option to sync their Uniccs.ml wallets with their bank accounts. As a result, future payment transfers are made hassle free. This company also gives you the option of automatic bitcoin buying from time to time. For instance, if you're interested to purchase $50 in bitcoins at the beginning of each month, Uniccs.ml allows you to set up an auto buy for that amount.
If you are living in the U.S. then Uniccs.ml is the place you're looking for. Uniccs.ml provides it's clients with BTC at an estimated mark up of 1% over the existing market price. Residents of the United States have the option to sync their Uniccs.ml wallets with their bank accounts. As a result, future payment transfers are made hassle free. This company also gives you the option of automatic bitcoin buying from time to time. For instance, if you're interested to purchase $50 in bitcoins at the beginning of each month, Uniccs.ml allows you to set up an auto buy for that amount.
Be mindful of the terms and conditions before you begin to
use this service. If you have subscribed to an automatic bit coin service, then
you will not be able to control the price at which the BTC is bought every
month. Note that Coinbase is does not function as a Bitcoin exchange i.e. you
buy and sell the coins directly from the firm. Since the firm has to source the
coins from other buyers, you may face delays or disruptions when laying orders
during fast market moves.
BitStamp
BitStamp suits the requirements of a conventional bitcoin
exchange. Bitcoin acts as an intermediary which allows you to trade with other
users and not the company itself. Here the liquidity is higher and you always
have a good chance to find someone who is willing to trade with you. There is
an initial fee of 0.5% which can be reduced to 0.2% if you trade $150,000 in a
period of 30 days.
Alternative ways to purchase Bitcoins
Local Bitcoins
Exchanging isn't the only method of investment in bitcoins.
Local Bitcoins is often used to buy BTC offline. The website is designed to
link potential buyers and sellers. The bitcoins are locker from the seller in
an escrow and can only be released to buyers.
Buying bitcoins offline isn't always very reliable or safe.
Hence it's preferable to meet the sellers during daytime and let a friend tag
along with you just in case things go south.
Bitcoin is not just a modern trend. Venture capital firms
consider Bitcoin to be a decent substitute to conventional currency in the long
run. There are cointless ways for you to enter the sphere of bitcoin
investment. As mentioned before, Coinbase, BitStamp and Local Bitcoins are the
most popular channels for investing in bitcoin in the United States. Do your
homework and find out which avenue ticks all your boxes.
To get all the latest news about Bitcoins, check out the
News Site: BitcoinVox
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