Hi all super awesome traders! I’ve not been too active recently on my blog and YouTube channel and for that I am sorry. Reason being is I’ve been working on a slightly different topic – cryptocurrencies. I’ve been working to raise awareness and promote the use of cryptocurrencies in Estonia and also writing various cryptocurrency related articles for different cryptocurrency sites. Now I would like to share my love for Bitcoin and other cryptos with you. Firstly – what is Bitcoin?
Bitcoin – What is it?
You probably have already heard of the internet wonder that it is. If you’ve not paid too much attention to it you probably don’t know much about the technology behind it or how it works. Don’t worry, I’ll explain it all now. I have to warn you though, I am really into this stuff and will probably start babbling about how it will change the world soon, sorry.
Okay Liina, what is it then??
- a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
In simple words – Bitcoin is a digital currency. It is a decentralized peer to peer payment network. It is completely powered by the users without a central authority or a middle man. Because, screw banks, that’s why! It only exists in digital form – think of it as digital cash. Because it’s completely decentralized, governments or other authorities have no control over it. They cannot be printed or manipulated with like most fiat currencies are.
Where do Bitcoins come from?
Bitcoins are created by mining – the process of using software that solves mathematical problems. The process is of adding transaction records to the blockchain. Blockchain is Bitcoin’s public ledger of transactions. Once a new block is confirmed the miner receives a reward, currently 25 BTC. This will change over time. Miners can also be incentivised with transaction fees. The mining complexity will grow higher over time and the reward will decrease. The maximum amount of Bitcoins is 21 million.
What can I do with Bitcoins?
From when Bitcoin was born up to now it has hugely gained popularity. Although the bubble has popped the price has stabilized and has been on an uptrend since beginning of 2015. Here’s what you can do with this crypto:
- Trade Bitcoin
Bitcoin’s price is still very volatile compared to most other commodities. That can be a great thing tradingwise – profits come quickly if you know what you’re doing. It is also relatively easy to speculate on the price. Bitcoin traders love round numbers, hence it has very strong support & resistance levels. Recent established levels are – $350, $400, $450 and $500. I invest in Bitcoin for a few month time periods. Buy at a good price, wait for price to climb and cash out. Then wait for another buying opportunity. It is a great asset to trade with because the price changes quickly – this means you don’t need a lot of cash for profits. On the flipside it can also go the other way. Great volatility brings risks as well. Day trading Bitcoin is pretty much the same as trading any other currency – find the levels of support & resistance, determine the trend and start trading. My current favourite platform for trading is Simple FX. You can add indicators to the web platform or you can download Metatrader and trade through that using their servers. Pretty great!
- Make purchases with Bitcoin
So many merchants accept Bitcoin nowadays. And the list is ever growing. I love it! I actually do so much shopping online using Bitcoin now. Recently I purchased a family holiday for my coins as Expedia now accepts it too. Yay! Why pay with Bitcoin you ask? A lot of merchants offer discounts when paying with it because Bitcoin has phenomenally low fees compared to most other payment processors. I’ve been using virtual Bitcoin cards for some time now and also just recently ordered a plastic Bitcoin card by E-coin. It is great. Works just like a normal credit or debit card but can be topped up with Bitcoins. There are various other Bitcoin card merchants out there, like Xapo for example, but I prefer E-coin because when you top up your card, it keeps the balance in the fiat when topped up, regardless of the current Bitcoin price. Why is that good? This is what I normally do – when the Bitcoin price is high I send coins to my E-coin card, the currency on the card will then be in my selected currency and will stay that amount even if the price drops. Xapo’s card is linked directly to their Bitcoin wallet and the amount on the card will be the equivalent of the Bitcoin’s current worth. This is why I prefer E-coin.
Why would you need a Bitcoin card? Because you have control over your money this way. The government or the banks have no dibs in it. So again, screw the banks!
If you want one, you can get a 25% discount on the card fee through my links 🙂
Why use Bitcoin?
- Cost & Time
With Bitcoin you can send money almost instantly to anywhere in the world with no or very small fees. You probably know how expensive payments to foreign countries are – Bitcoin solves this problem. And from the merchant’s point of view – processing payments takes a considerable amount. Visa for example charges the merchant about 3% of the payment amount. With Bitcoin you can process payments faster and with a lower fee therefore making a higher profit and being able to offer better prices for the consumer.
You can set up a wallet – all you need to send and receive in minutes. With a bank you need to identify yourself, provide all sorts of documentation and in many countries you also have to pay high fees to get a bank account. With Bitcoin there’s no need for that. For example you can get a fully working Bitcoin Visa card without sending any sort of documents! Screw the banks!
You can hold multiple bitcoin wallets and they won’t be linked to your personal details. Your government cannot peek into your wallet!
Bitcoin is Awesome!
So to conclude – Bitcoin is simple great and everyone should be using it! Why? Because the technology behind it is so much better than what we have in place right now. The current banking system is simply ancient and needs to be replaced. Why do I still need to wait a few days to send money from one country to another? Why do I have to pay high fees? The technology is already here but the banks don’t want to let go of the huge cash they’re raking in. Be part of the revolution and help this technology along! Bitcoin FTW!
How to get Bitcoins?
A few simple ways:
Buy and/or get a card from E-coin
Buy/Sell or trade with Simple FX
Buy from Coinbase – ironically you cannot get your coins from them if you are in Estonia. We’re still working hard at the Estonian Cryptocurrency Association to get Estonia’s AML regulations fit the 21st century 🙂
I am going to be more active in my blogging from now on. Videos on cryptocurrencies coming soon too! Let me know what you think about this post and leave all your questions in the comments.