Why did banks ban cryptocurrency purchases using their credit cards?

The wave of banks banning the purchase of cryptocurrency using credit cards is growing as Wells Fargo joins these types of bans. Several other banks such as Chase, Bank of America, Citigroup and more are part of this new trend that is limiting the purchase of cryptos.

Debit cards can still apparently be used to buy crypto (check with your bank to confirm their policy), but using credit cards to buy crypto has taken a turn with these bans on purchases by these banks, and it probably won’t be long before this ban becomes standard. until

Apparently, overnight purchases began to be canceled when credit cards were used to buy crypto, and people who had never had a problem with credit cards before buying crypto began to notice that they were not allowed to make such purchases. Volatility in the cryptocurrency market is the culprit here, and banks don’t want people to spend a lot of money that will turn into a fight to get back if there is a big cryptocurrency drop like earlier this year.

Of course, these banks will also lose the money to be made when people buy cryptocurrency and the market is booming, but they seem to have decided that the bad outweighs the good when it comes to taking this gamble with their credit cards. This also protects the consumer by limiting their ability to get into financial trouble by using credit to buy something that could leave them with cash and poor credit.

Most investors who used credit cards to make cryptocurrency purchases were probably looking for short-term gains, and had no intention of staying long-term. They expected to get in and out quickly, then pay off their credit cards before the high interest started. But with the constant volatility of the cryptocurrency market, many who bought, considering this plan, lost a huge amount. assets with market decline. Now they are paying interest on their lost money, which is never a good thing. This, of course, was bad news for banks, and led to the current and growing trend of banning crypto purchases with credit cards.

The lesson here is that you should never have the highest line of credit to invest in crypto, and only use a percentage of your hard assets to make crypto purchases. These funds should be funds that you can lock away for the long term without hurting your budget.

So don’t get caught out only to find that a downturn in the cryptocurrency you’ve been putting money into that you’ll soon need has taken money out of your pocket. There’s an old saying, “Don’t gamble with money you can’t afford to lose,” and that’s the lesson banks want people to learn as they venture into this new frontier of investing.

Bitcoin and how to make money with it


This is my first article here, so I hope you will accept this, I will share some points about it bitcoin and block chain.

For those of you who don’t know Bitcoin let me put it this way, Bitcoin it is a currency that cannot be controlled by any bank or government, it is basically a virtual currency and can be bought online using real money. So what are its advantages besides being a decentralized currency, you can transfer it well. bitcoin With no high fees anywhere in the world, you can be 100% anonymous while transacting thanks to a technology called block chain.So what’s the biggest thing about this you might ask, I’ll tell you that when it first launched it had absolutely no value, but now 1 bitcoin = $6,689.35 that’s pretty impressive growth, right?.

So you may ask how this thing grows, well I’ll tell you how the blockchain is sustained; there must be something called a ledger where all transactions must be noted and the hashing function to convert a block into a block must be solved. and producing bitcoin by solving hashes are called Mining Bitcoin.

Usually people used graphics cards to solve the hashing function, but as time went on bitcoins became harder to mine and dedicated hardware called ASIC miners came into play.

So people who spend their time and money in bitcoin mining will be rewarded in bitcoins and as more and more people become part of this blockchain its value will increase.

so how can i earn money bitcoin, there are two ways

1. you can trade bitcoin/altcoin (any cryptocurrency other than bitcoin is called altcoin, yes there are thousands of them)

2. you can mine them yourself

Both of these methods have their advantages and disadvantages because bitcoin is not controlled by anyone, it is very reliable one day it can be worth $10,000 and the next day it can drop to $100. Trading basically means buying bitcoin with real money and praying for its price to go up and selling when it does. This approach is very risky and you may lose money instead of winning.

Or you can choose to mine bitcoins, but here’s what you need to consider, mining hardware is very expensive and mining requires a lot of electricity, also the mining difficulty is increasing every day, so you won’t be able to make some profits without a high initial investment. the investment

That said, bitcoin trading and mining are two good ways to make money if you know what you’re doing.

How to get $10 free Bitcoin, easy and simple

By now, you’ve probably heard of Bitcoin – there are stories of people making thousands of dollars overnight with this and other Crypto-currencies.

As with any new speculative investment, there is an element of risk. That’s why starting with free $10 Bitcoin is a good way to try it out and start learning how it all works. I’m still new to all this and came across this process during my research. It helped me so I thought I should share it with you.

The first thing to know about buying Bitcoin is that there are several main ways to buy them, and it’s not that complicated to do.

The two main ways to buy Bitcoin are through a broker or through an exchange. Check out the Coinbase exchange – it’s one of the biggest exchanges, they have a clean and easy to understand interface, they’re available through apps on various mobile and desktop platforms, and they give you 10 USD of free Bitcoin to get you started. There are other exchanges I’ve tried that work well – BTCMarkets and Coinspot to name a couple that are both good – but only Coinbase has a $10 start bonus.

Additional benefits of Coinbase are that it works in multiple local currencies; for example, if you’re in Australia, all your data will appear in Australian dollars, so you don’t have to deal with exchange rates and the like.

It’s also worth noting that Bitcoin isn’t the only cryptocurrency Coinbase deals in – you can also buy Etherium (ETH), Bitcoin Cash (BCH) or LiteCoin (LTC) – whichever currency you decide to use, still get $10 you can free bitcoin

Without further ado, here’s how you get your free $10 Bitcoin:

1) Register with Coinbase (the link at the bottom of this article will entitle you to a $10 bonus)

2) Complete the account setup process, including verifying your email address, phone number and uploading your proof of ID (driver’s license, passport or other photo ID); this can be done by taking a picture with your phone.

3) Enter your credit card details and check your card for transactions Coinbase will add to your online bank statement (this is instant and you won’t be charged)

4) Make a request for US$100 worth of Bitcoin, Etherium – whatever – in your now activated account. If your local currency is not USD, you will need to ensure that you request the equivalent amount of USD 100

*** IMPORTANT NOTE: All Bitcoin purchases have a fee, and Coinbase is no different. At most of theminitial $100 purchase fee should be around $4***

5) That’s it! After a couple of days, USD 10 worth of Bitcoins will show up in your Coinbase account – even minus the purchase fee, you’re good to go.

So if you’re curious about Bitcoin, want to dip your toe risk-free, and get some free money (!) in the process, give this a try. Bonus Bitcoin will cover your fees for that first deposit, and it can help you learn what it is.

Sound good?

A few final notes:

• This process will only work if you are a new Coinbase customer. If you already have an account, you will not get free credit

• You can get only $10 free if you sign up using the link below.

• The above offer is for a limited time – after creating your account using the link, you have 180 days where you can make a $100 purchase of Bitcoin, Litecoin or Etherium and still get a $10 credit.

I hope you have a prosperous and happy future with Bitcoin, and take advantage of your free $10. Free money doesn’t come around every day, and with the rates Bitcoin has been growing lately, $10 can multiply pretty quickly! My plan is to sit above $110 dollars for a while, see what happens and learn about the ups and downs of Bitcoin. Let’s see how we go.

Bitcoin basics

For someone unfamiliar with Bitcoin, the first question that comes to mind is, “What is Bitcoin?” And another common question that is often asked concerns the Bitcoin price. When it was introduced in early 2009 it started below 10 cents per Bitcoin. Since then it has grown steadily and has been hovering around $4000 per Bitcoin lately. So when it comes to Bitcoin value or Bitcoin rate, this is the most significant appreciation in value and has created many, many millionaires in the last eight years.

The Bitcoin market is worldwide and citizens of China and Japan have been particularly active in their purchase along with other Asian countries. However, recently in the Bitcoin news the Chinese government has tried to suppress its activities in that country. This action briefly lowered the value of Bitcoin, but it soon bounced back and is now close to its previous value.

Bitcoin history chart is very interesting. Its founder was an anonymous group of brilliant mathematicians (using the pseudonym Satoski Nakamoto) who designed it to be “virtual gold” in 2008 and released Bitcoin software in early 2009 during the US financial crisis. They knew that to be of lasting value, just as gold had to be in limited supply. So they limited their supply to 21 million Bitcoins at creation.

Bitcoin mining refers to the process of creating new Bitcoin. With conventional money, the government decides when and where to print and distribute it. With Bitcoin, “miners” use special software to solve complex mathematical problems and issue a certain amount of Bitcoin in exchange.

A question that then arises is, is Bitcoin mining worth it? The answer is NO for the average person. Highly sophisticated knowledge and a powerful computer system are required and this combination of factors makes mass unattainable. This applies even more to bitcoin mining in 2017 than in recent years.

Many people wonder who accepts Bitcoin? This question is asked in many ways, what are the stores that accept bitcoin, what are the websites that accept bitcoin, what are some merchants that accept bitcoin, what are some places that accept bitcoin and where can I spend bitcoin.

More and more companies are beginning to see the value of accepting cryptocurrencies as a valid payment option. Some of the major companies that do this are DISH network, Microsoft, Expedia, Shopify stores, Newegg, Payza, 2Pay4You and others. Currently, Walmart and Amazon are the two main holdouts.

Ethereum is Bitcoin’s strongest rival in the cryptocurrency market and many ask the question of Bitcoin vs Ethereum. Ethereum was created in mid-2015 and has gained popularity, but still lags behind Bitcoin in usage, acceptance and value.

A question that comes up often relates to Bitcoin scams. This author has a friend who made a purchase from a company that promised 1-2% growth per day. The company’s website listed no contact information and after a couple of months, the website disappeared in one day and my friend lost all the money he had invested, which was thousands of dollars.

How to buy bitcoins, how to buy bitcoins or how to buy bitcoins with credit card should be known to get started. Coinbase is a very popular site to do this. Their fee is 3.75% and their purchase limit is $10,000 per day. This would probably be the easiest way to buy bitcoins.

Others would like to buy Bitcoin with a debit card. Coinbase also offers this service and has clear step-by-step instructions to follow with your debit or credit card.

There are those who would like to buy Bitcoin immediately. It can be done on Paxful, Inc. and can be done via W. Union or any credit/debit card.

Other common questions that come up are what is the best way to buy Bitcoins, the best way to get bitcoins or where to buy bitcoins online. The easiest way is probably to buy it through a digital asset exchange like the previously mentioned Coinbase. Opening an account with them doesn’t hurt and once you link your bank account with them you can buy and sell Bitcoin pretty easily. This is probably also the best place to buy Bitcoins.

One should know what a Bitcoin wallet is and how to use it. It’s just the Bitcoin equivalent of a bank account. It allows you to receive, store and send Bitcoins to others. What it does is store a collection of Bitcoin privacy keys. It is usually encrypted with a password or otherwise protected from unauthorized access.

There are several types of digital wallets to choose from. A web wallet allows you to send, receive and store Bitcoin through your web browser. Another type is a desktop wallet where the wallet software is stored directly on your computer. There are also mobile wallets designed to be used by a mobile device.

A question that comes up from time to time is about Bitcoin stocks or how to buy Bitcoin stock. The most common way to get ahead in this regard is to buy Bitcoin directly, and not its stock.

There is an entity called a Bitcoin Investment trust, which is an investment fund designed to follow the market flow of Bitcoin. However, some analysts call it a risky way to participate in this market.

The Bitcoin USD exchange rate is a closely watched benchmark, both daily and long-term, over the last 8 years since it entered the world financial market. A popular company to get the latest rate on Bitcoin valuation is XE. They show Bitcoin to USD valuation and also complete Bitcoin price chart, Bitcoin value chart and Bitcoin to USD chart. If you ask, “How much is a Bitcoin?” You will always know from the constantly updated lists.

Similar questions that arise in this area are bitcoin rate history, live bitcoin price chart, bitcoin to dollar exchange rate, bitcoin to dollar chart and bitcoin 5 year chart. The previously mentioned website, xe, is a good source for answering these questions.

In terms of Bitcoin cash, that is. From selling Bitcoin to getting USD, Bitwol is a company that allows you to do just that. WikiHow is another company that will walk you through this process.

The projected value of Bitcoin is a frequently debated topic. In January 2015 the price of one bitcoin was $215. Today it is around $5000. This is a huge increase and far beyond what most experts would have projected at the time. Today, when looking at the forecasts of experts around the world, it seems that the common answer is that the top value will settle around $10,000 and one expert even projected the value to reach $100,000.

Step by Step Bitcoin Investment Guide

Well, like almost everything else in life – if not everything – you have to buy it before you invest in it. Investing in Bitcoin can be very difficult, and that is if you don’t have a step ahead.

First of all, you should know that Bitcoin is a type of cryptocurrency, one of the first digital currencies, which was invented, designed and developed by Satoshi Nakamoto, and went public in 2009.

And since then, updates and improvements have been made by a network of highly experienced developers and the platform has been partially funded by the Bitcoin Foundation.

Since Bitcoin has become a topic of great interest and many people are investing in it, there is no harm if you too get digital wealth. Interestingly, in 2012, Bitcoin companies were only able to raise $2.2 billion.

Despite the drop in prices this year, cryptocurrency continues to see growth in both users and merchants accepting it as payment.

So how can you be part of the action? Investing in Bitcoin can be easy for the average Joe, he just buys some.

Buying has become easy these days, with many companies in the United States and all over the world participating in the buying and selling business.

For US investors, the easiest solution is Coin Base, which is a company that sells BTC to people at a markup that is usually around 1% of the current market price.

If you want a traditional exchange, Bit Stamp may be a better option, as users are not only trading with the company, but with the users.

The company acts only as an intermediary. Liquidity is higher and you can almost always find another person to take the other side of your trade.

Fees start at 0.5% and drop to 0.2% if you have traded more than $150,000 in the last 30 days. All of these are already in their own way, means of making investments, because the more BTC you buy, the more profit you will accumulate to keep or if you choose to resell to other traditional buyers at a higher price than what you bought. real companies

You can also buy bitcoins in another way to exchange them. One of the most popular offline avenues is Local Bitcoins, which is a website that matches you with potential buyers and sellers. At the time of purchase, the coins are locked from the seller in escrow, from which they can only be released to the buyers.

But buying bitcoins offline should be done with some extra precautions, which are always common, like when you meet a stranger. Meet in a public place during the day and if possible, bring a friend.

Bitcoin is the hottest thing on the web today. Investors and venture capital firms are betting it’s here to stay. For the average Joe, there are many ways to invest in and buy Bitcoin.

In the US, the most popular avenues are Coin Base, Bit Stamp, and Local Bitcoins. Each has its advantages and disadvantages, so do your research to find the one that’s right for you.

How to Buy Bitcoin – Step One

The best way to learn about bitcoin, is to jump in and get a few in your “pocket” to get a feel for how they work.

Despite the hype about how difficult and dangerous it can be, getting bitcoins is a lot easier and safer than you might think. In a lot of ways, it is probably easier than opening an account at a traditional bank. And, given what has been happening in the banking system, it is probably safer too.

There are a few things to learn: getting and using a software wallet, learning how to send and receive money, learning how to buy bitcoin from a person or an exchange.


Before getting started, you will need to get yourself a wallet. You can do this easily enough by registering with one of the exchanges which will host wallet for you. And, although I think you are going to want to have one or more exchange wallets eventually, you should start with one on your own computer both to get a better feel for bitcoin and because the exchanges are still experimental themselves. When we get to that stage of the discussion, I will be advising that you get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to keep your money safe.

What is a wallet?

It is a way to store your bitcoins. Specifically, it is software that has been designed to store bitcoin. It can be run on your desktop computer, laptop, mobile device (except, as yet, Apple) and can also be made to store bitcoins on things like thumb drives. If you are concerned about being hacked, then that is a good option. Even the Winklevoss* twins, who have millions invested in bitcoin, put their investment on hard drives which they then put into a safety deposit box.

*The Winklevoss twins are the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.

What do you need to know about having a bitcoin wallet on your computer?

Below you can download the original bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact part of the bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where you can copy and paste a number like this from a person you want to send money to and off it will go directly into that person’s wallet. You can even create a QR code which will let someone take a picture with an app on their phone and send you some bitcoin. It is perfectly safe to give these out – the address and QR code are both for my donations page. Feel free to donate!

NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as a number across the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). Any computer with the right software can be part of that system, checking and supporting the network. This wallet serves as your personal wallet and also as a support for that system. Therefore, be aware that it will take up 8-9 gigabytes of your computer’s memory. After you install the wallet, it will take as much as a day for the wallet to sync with the network. This is normal, does not harm your computer, and makes the system as a whole more secure, so it’s a good idea.

Bitcoin Qt

  • The original wallet.
  • This is a full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and back up your wallet.
  • Outside of the time it takes to sync, this is a very easy to use option.
  • Search for Bitcoin Qt wallet download to find their site.


  • Runs on top of Bitcoi Qt, so it has all of the same syncing requirements.
  • Armory allows you to back up, encrypt, and the ability to store your bitcoins off line.
  • Search for Bitcoin Armory Wallet to find their site.

If you don’t want to have that much memory used or don’t want to wait for your wallet to sync, there are good wallets that do not make you sync the entire history of bitcocin:


  • A lightweight wallet that syncs quickly. This is very good for new users.
  • Search for Bitcoin Multibit Wallet to find their site.


  • In addition to being quick and light, this wallet allows you to recover lost data using a passcode.
  • Search for Bitcoin Electum Wallet to find their site.

After you get the wallet set up, take a few minutes clicking around. Things to look for:

o There will be a page that shows you how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).

o There will be an area showing what your recent transactions are.

o There will be an area where you can create an address and a QR code (like the one I have above). You don’t need the QR code if you don’t want it, but if you run a business and you want to accept bitcoin, then all you’ll need to do to accept payment is to show someone the QR code, let them take a picture of it, and they will be able to send you some money. You will also be able to create as many addresses as you like, so if you want to track where the money is coming from, you could have a separately labeled address from each one of your payees.

o There will be an area with a box for you to paste a code when you want to send money to someone or to yourself on an exchange or different wallet.

There will be other options and features, but to start out with, these are the items that you should know about.

Getting Your First Bitcoins

Now that you have a wallet, you will, of course, want to test them out.

The very first place to go is http://faucet.bitcoin.st/.

This is a website that gives out small amounts of bitcoin for the purpose of getting people used to using them. The original version of this was run by the lead developer of bitcoin, Gavin Andreson. That site has since closed and this site operates by sending out one or two advertisements a month. You agree to receive those messages by requesting the bitcoins. Copy and paste your new bitcoin address and enter a phone number to which you can receive an SMS. They send out an SMS to be sure that people are not continuously coming back for more since it costs nothing to create a bitcoin address. They will also send out once or twice a month advertisement to support their operation. The amount they send it trivial: 0.0015 BTC (or 1.5 mBTC). However, they process almost immediately and you can check to see that your address and wallet are working. It is also quite a feeling to get that portion of a bitcoin. (Non-disclaimer: I have no connection with this site and receive nothing if you use them. I simply think they are a good way to get your feet wet).

Congratulations! You have just entered the bitcoin economy.

To get your feet a little wetter, you can go panning for gold. There are a number of services and websites out there that will pay you in bitcoin to do things like go to certain websites, fill out online surveys, or watch sponsored videos. These are harmless, and you can earn a few extra bitcoins this way, but it is important to remember that these are businesses that get paid when people click on the links on their sites. They are essentially kicking back a portion of what they get paid to you. There is nothing illegal, or even immoral about this (you might like what you see and make a purchase!), but they are frequently flashy and may not be completely straightforward. All the ones that I have tried (particularly bitvisitor.com) have paid out as advertised. It is interesting to experiment with these, but even with the likely rise in the value of bitcoin, you won’t become a millionaire doing this. So, unless you are an advertisement junkie, I would recommend you move on. If you would like to try, simply Google “free bitcoins” or something along those lines and you will find numerous sites.

Buying Bitcoin Hand-to-Hand

Finally, this is going to be the real test of bitcoin. Can people easily trade them back and forth? If this can’t happen, then there can’t really be a bitcoin economy because retailers won’t be able to use it. If retailers can’t use it, what earthly good is it? Fortunately, this is not really a problem. iPhone is a bit of a hold out, but many smartphones have apps (mobile wallets) that will read QR codes and allow you to send bitcoin to whomever you want. You can also display a QR code of your address, or even carry a card in your wallet with your QR code to let people send bitcoin to you. Depending on what kind of wallet you have, you can then check to see if the bitcoins have been received.

A couple of things to note:

  • When you set up your wallet, if you click around a bit, you will see an option to pay a fee to speed transactions. This money becomes available to a bitcoin miner as he/she/they process bitcoin information. The miners doing the work of creating blocks of information keeps the system up to date and secure. The fee is an incentive to the miner to be sure to include your information in the next information block and therefore “verify” it. In the short term, miners are making most of their money by mining new coins (check the section on What Are Bitcoins for more information about this). In the long term, as it gets harder to find new coins, and as the economy increases, the fees will be an incentive for miners to keep creating more blocks and keep the economy going. Your wallet should be set to pay 0 fees as a default, but if you want, you can add a fee to prioritize your transactions. You are under no obligation to pay a fee, and many organizations that process many small transactions (like the ones that pan for gold described above) produce enough fees to keep the miners happy.
  • In clicking around your wallet, on the transactions page or linked to specific transactions, you will see a note about confirmations. When you make a transaction, that information is sent out into the network and the network will send back a confirmation that there is no double entry for that bitcoin. It is smart to wait until you get several confirmations before walking away from someone who has paid you. It is actually not very easy to scam someone hand-to-hand like this, and it is not very cost-effective for the criminal, but it can be done.

Where can you buy bitcoin like this?

  • You may have a bitcoin Meetup in your area.
  • You can check out localbitcoins.com to find people near you who are interested in buying or selling.
  • Some are trying to start up local street exchanges across the world. These are called Buttonwoods after the first street exchange established on Wall Street in 1792 under a buttonwood tree. See if there is one, or start one, in your area.
  • See if you have any friends who would like to try bitcoins out. Actually, the more people who start using bitcoin, the larger and more successful it will be come. So please tell two friends!

Some people ask if it is possible to buy physical bitcoins. The answer to this is both a yes and a no. Bitcoin, by its very nature, is a digital currency and has no physical form. However, there are a couple of ways that you can practically hold a bitcoin in your hands:

  • Cascascius Coins: These are the brainchild of Mike Caldwell. He mints physical coins and then embeds the private keys for the bitcoins inside them. You can get the private key by peeling a hologram from the coin which will then clearly show that the coin has been tampered with. Mike has gone out of his way to ensure that he can be trusted. These are a good investment strategy as in the years to come it may be that these coins are huge collector’s items.
  • Paper Wallets: A paper wallet just means that rather than keeping the information for your bitcoin stored in a digital wallet, you print the key information off along with a private key and keep it safe in a safe, in a drawer, or in your mattress (if you like). This is highly recommended and cost effective system for keeping your bitcoin safe. Keep in mind, though, that someone could steal them or if your house burns, they will go with the house and there will be no way to get them back. Really, no different than cash. Also, as with Casascius Coins, they will not really be good for spending until you put them back into the computer.

* There is software to make printing your paper wallets easier. bitcoinpaperwallet.com is one of the best and includes a good tutorial about how to use them.

* The bitcoins are not actually in the wallet, they are still on the web. In fact, the outside of the wallet will have a QR code that will allow you ship coins to the wallet any time you like.

* The sealed part of the wallet will have the private key without which you cannot access the coins. Therefore, only put as many coins on the wallet as you want to be inaccessible. You will not be able to whip this thing out and take out a few coins to buy a cup of coffee. Rather, think of it as a piggy bank. To get the money, you have to smash it. It is possible to take out smaller amounts, but at this point the security of the wallet is compromised and it would be easier for someone to steal the coins. Better to have them all in or out.

* People who use paper wallets are usually security conscious, and there are a number of ways for the nefarious in the world to hack your computer. Bitcoinpaperwallet.com gives a lot of good advice about how to print your wallets securely.

Some people have also asked about buying bitcoins on eBay. Yes, it is possible, but they will be far overpriced. So, selling on eBay might seem to be a better option given the extreme markup over market value you might see. But, as with anything that is too good to be true, this is too good to be true. As I will explain in the next section, selling bitcoin this way is just way too risky.

How Not to Buy Bitcoin

In the next section, I am going to explain a couple of key points about buying from Bitcoin Exchanges. Before I do, let me give you a warning.

A short history lesson: When people first started setting up actual business based on bitcoin, they used all of the tools available to any merchant. They sold by credit card and PayPal. The problem with this business model was quickly spotted: bitcoin transactions are not reversible by anyone except the recipient of the money. Credit cards and PayPal have strong buyer protection policies that make it relatively easy for people to request a chargeback. So, nefarious individuals realized this and began making purchases of bitcoin and then sooner or later requesting a chargeback. And, since bitcoin is a non-physical product, sent by new and poorly understood technological means, the sellers were not able to contest this. Because of this, sellers stopped accepting credit cards and PayPal.

This was a big problem for the currency: How to move money between buyers and seller? Some business emerged that would credit you with bitcoin if you wired them money. Very often these businesses would give addresses in Albania, Poland, or Russia. The fact is that many of these did work and there are a lot of stories on the forums of people who bought bitcoins this way. But it took a lot of time and in the meantime the buyer just had to bite his or her fingernails wondering if they would get their bitcoins or kiss their investment goodbye.

I expect that as bitcoin becomes more acceptable and valuable, we are going to see a version of the Nigerian Prince scam. So the warning is this: we now have exchanges and other businesses that allow for moving money easily onto and off of exchanges. Never wire money for bitcoin. It was a short-lived, and well-forgotten, moment in the history of bitcoin.

Next, I will be talking about how to buy from a bitcoin exchange and give a review of the some of the best known exchanges.

Do you need to buy Bitcoin?

As the world’s current frontrunner in the Crypto Currency market, Bitcoin has made serious headlines and upheavals over the past 6 months. Almost everyone has heard of them, and almost everyone has an opinion. Some people can’t fathom the idea that a currency of any value can be created out of nothing, while others love that something without Government control can be traded on its own as a valuable entity.

Where do you sit on the “Should I buy Bitcoin?” The barrier probably boils down to one question: Can I make money with Bitcoin?

Can you make money with Bitcoin?

In the last 6 months, the price has dropped from $20 a coin in February, to $260 a coin in April, to $60 in March and to $130 in May. The price has now settled at around $100 a Bitcoin, but what happens next is anyone’s guess.

Bitcoin’s future ultimately rests on two main variables: its adoption by the general public as a currency and the absence of prohibitions against Government intervention.

The Bitcoin community is growing rapidly, interest in the Crypto currency has spread wildly online, and new services are increasingly accepting Bitcoin payments. Blogging giant, WordPress, supports Bitcoin payments, and African mobile app provider, Kipochi, has developed a Bitcoin wallet that will enable Bitcoin payments in developing countries.

We have already seen people make millions with money. We are seeing more and more people experimenting with living on Bitcoin only for months at a time, while filming their experience watching documentaries.

You can buy takeout in Boston, coffee in London, and even some cars on Craigslist using Bitcoin. Bitcoin searches have been on the rise in 2013 with the April spike and subsequent drop in the Bitcoin price. Last week the first major purchase of a Bitcoin company was made for SatoshiDice, an online gaming site, for 126,315 BTC (about $11.47 million) by an unknown buyer.

This rapid growth in awareness and uptake looks set to continue as confidence in the currency remains strong. This leads to the second dependency. Government regulation.

Although it is specifically designed to work independently of government control, Bitcoin will inevitably be influenced by governments in some way. This should be so for two reasons.

First, to achieve high levels of adoption, Bitcoin will need to be accessible to a large number of people, which means expanding beyond the realms of hidden transactions into common everyday transactions for individuals and businesses. Second, these Bitcoin transactions could become a traceable part of people’s tax wealth, which could be declared and regulated alongside any other form of wealth.

The European Union has already stated that Bitcoin is not classified as fiat currency, or money, and therefore will not be regulated per se. In the US, the 50-state system and the number of bureaucratic bodies involved have made decisions unavoidably difficult, so far no consensus has been reached. Bitcoin is not considered money, but it is considered to act like money.

A thriving U.S. Bitcoin market has a more uncertain future for now, and any decisive U.S. legislation could have a very positive or very negative impact on Bitcoin’s future.

So should you buy Bitcoin?

The answer mostly depends on your risk aversion. Bitcoin will certainly not be a smooth investment, but the potential of this currency is great.

Easy ways to buy and invest in Bitcoin

What is Bitcoin?

Bitcoin is a decentralized, peer-to-peer digital currency system designed to allow online users to process transactions through the digital unit of exchange known as Bitcoins. In other words, it is a virtual currency.

The Bitcoin system was created in 2009 by an unknown programmer. Since then, Bitcoin has gained a lot of attention, as well as controversy, as an alternative to the US dollar, the euro and commodity currencies such as gold and silver.

rise in popularity

Bitcoin did not gain much attention in the business and financial world until 2009. It rose to prominence in 2011-2012, when it won more than 300%. Bitcoin has seen a 400% increase in value since August of last year. As a result, venture capital firms and investors around the world continue to place importance on cryptocurrency.

In the first half of 2014, venture capital firms invested $57 million in Bitcoin in the first quarter, and another $73 million in the second quarter, totaling $130 million, which is 50% higher than last year’s $88 million. This is in stark contrast to the scenario of 2012, where Bitcoin companies raised a relatively meager amount of $2.2 billion.

These statistics definitely prove that Bitcoin is worth your investment, which begs the question: How can you buy and invest in Bitcoin?

A Bitcoin Investor’s Guide for Beginners

The easiest and most complicated method of investing in Bitcoin is to buy bitcoins. There are many established companies, mainly in the US as well as abroad, that are involved in the business of buying and selling bitcoins, abbreviated as BTC.


If you live in the US, Coinbase is the place you’re looking for. Coinbase offers BTC to its customers at a markup of 1% over the existing market price. Residents of the United States have the option to sync their Coinbase wallets with their bank accounts. As a result, future payment transfers are made hassle-free. This company also allows you to buy bitcoin automatically from time to time. For example, if you are interested in buying $50 worth of bitcoins at the beginning of each month, Coinbase allows you to set up an automatic purchase for that amount.

Please read the terms and conditions before using this service. If you are subscribed to an automatic bit coin service, you will not be able to control the price at which BTC is purchased each month. Note that Coinbase does not operate as a Bitcoin exchange, meaning you buy and sell coins directly from the company. Because the company has to pull coins from other buyers, you may experience delays or interruptions in placing orders in the fast moving market.


BitStamp fits the requirements of a traditional bitcoin exchange. Bitcoin acts as an intermediary, allowing you to trade with other users and not with the company. Liquidity is higher here and you always have a good chance of finding someone 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 within 30 days.

Alternative ways to buy Bitcoins

Local Bitcoins

Exchange is not the only method of investing in bitcoins. Local Bitcoins are often used to buy BTC offline. The website is designed to connect buyers and sellers. Bitcoins are held by the seller in an escrow and can only be released to buyers.

Buying Bitcoins offline is not always very reliable or safe. That’s why it’s best to meet the dealers during the day and let a friend tag along with you in case things go south.

Bitcoin is not just a modern trend. Venture capital firms believe that Bitcoin is a decent substitute for traditional currency in the long run. There are no-nonsense ways to enter the Bitcoin investment arena. As mentioned earlier, Coinbase, BitStamp and Local Bitcoins are the most popular channels for investing in bitcoins in the United States. Do your homework and find out which avenue ticks all your boxes.

Collecting Bitcoins for use in a transaction

How to get Bitcoins is a big question.

Once you have a basic understanding of what Bitcoin is and how the wallet actually works, you might want to dive into the world of digital currency and get some bitcoins. Thus, the big question comes to your mind: How do I get bitcoins?

It becomes difficult.

After gaining knowledge of the origin of each bitcoin that is based on a mining process, you will believe that the best way to get them is to join this mining process. The fact is that this has become very difficult because the popularity of cryptocurrency is growing rapidly.

Selling products or services.

Each Bitcoin comes as a result of a previous transaction. Thus, the way to get them, when you don’t have them, is to receive a transaction from someone else, when you buy them with cash, or even by mining new bitcoins.

When you know a person who uses bitcoins, you can ask them to get bitcoins. If you don’t know anyone who has them, you can get bitcoins by offering another type of transaction with another bitcoin user, and as a result, you get paid in bitcoins. The alternative option is to extract it yourself.


If you can’t buy bitcoins from someone else, you can get them by mining them. The term mining here means: solving a complex mathematical problem with the intention of validating other people’s transactions. In return you are rewarded with bitcoins. Receiving Bitcoins is sometimes free, but sending them may incur a fee, depending on the online platform you use. Before you get into mining bitcoins, you should understand that it is not an easy way to get bitcoins, it requires some technological knowledge, it may not be practical for you.

buy it

In case you don’t know anyone who has bitcoins, you don’t have anything to sell to exchange for bitcoins, there is a way to buy bitcoins. There are several online platforms that sell bitcoins through a process called trading/exchange. Here I list some ways to buy bitcoins:

Buy bitcoins from a person.

There are online markets where you can buy bitcoins on a person-to-person scheme. You can pay these people in cash or through other means. It’s a good idea that you and the seller can arrange a payment method: cash in person, cash on deposit, wire transfer, PayPal, etc. The key element here is to find someone you can trust. A good tip is to use a trust service so you can protect yourself against any kind of fraud. The good thing about these online escrow platforms is that they all have to upload a scanned ID, this ensures security in transactions.

Buy bitcoins from an exchange and outlet.

Bitcoin exchanges or outlets are basically online services that make it easy for buyers and sellers to transact bitcoins. To be a part of one of them is to create an account and verify your identity before buying or selling bitcoins.

Buy bitcoins through an ATM.

Some cities around the world offer physical bitcoin ATMs. You just get your bitcoins through them using local fiat currency. Governments regulate the uses of these ATMs for security purposes. Sometimes it can be difficult to find a bitcoin ATM near your location because the location where these are installed is also regulated.

A brief introduction to how to buy Bitcoins as a traded currency these days

Being a popular currency, bitcoins are gaining popularity all over the world today, as a result many people have shown interest in buying them. Although many financial leaders advise people not to adopt this cryptocurrency, due to its volatile value, it is gaining acceptance at a rapid pace. To buy Bitcoins, one can register with the wallet system for free by filling all the details online or download a mobile app and start investing in them. If people have a simple bank payment method can be used to exchange them. However, since security is the main factor, it is necessary to keep these wallets safe and therefore one should be able to choose a bitcoin service such as high standard and easy to use coin based wallets.

While an online wallet is a convenient method of buying bitcoins, there are many other options, such as choosing a bitcoin merchant. It is also important to choose the right one, because there are traitors and you have to be careful with them. While there are many established exchanges that offer wallet services to users, when looking for a bitcoin wallet system, an individual should go for one that has a multi-signature facility. Users can also use the bitcoin exchange search on their respective computers or mobile phones and by entering some general information such as the name of one’s country, a person can find a wide range of exchanges available worldwide, as well as current exchanges. the situation Users can also use their liquid cash as there are various options available in the market such as local bitcoin services that help users exchange it for cash. These fields allow users to visit their nearest bank branch to deposit the cash amount and receive bitcoins at some point.

Many people believe that bitcoins represent a new era of digital currency and are often confused with them. However, since the bitcoin chain system is fully computerized, it is quite simple and easy to buy and use, especially they are cheap when it comes to international transactions. As exchanges require different payment processes such as credit or debit cards, buyers can also shop online by opening an account based on their respective geographic location. When the exchanges receive the payments after verification, they will hold the bitcoins on behalf of the people and send them to their respective wallets. For this, they charge some fees. The whole process can be time consuming. Many who are learning to buy Bitcoins may also use the PayPal method for financial interactions.