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Crypto 101

Buy Bitcoin: The Safest & Easiest Ways

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Cryptocurrency is relatively young compared to the traditional banking system but believe it or not, it has been sending waves to the market since it started. It is acting as a game changer in our current period. It is gaining its popularity but due to how complex it is, many people still don’t understand it.

The fact about cryptocurrency to put it in a simpler term is that it is restricted files or data kept in a computer that nobody can change without executing specific conditions. It is also decentralized. Nobody can control it and to be able for it to work, everybody should agree to keep it going. A single entity that disagrees in the network even for a simple matter, everything is shattered. What cryptocurrency needs to have everything run smoothly is an absolute consensus among peers.

As years pass by, more types of crypto currency are coming out in the market but Bitcoin has stood out among them and still prospering.

What is Bitcoin?

Many people keep on asking what Bitcoin (BTC) is. Even the most tech-savvy of us are having a hard time comprehending about Bitcoin. It is an intense topic and an often point of dialogue among investors, entrepreneurs, and stockholders. Bitcoin actually is a type of cryptocurrency that uses blockchain that records every transaction made by bitcoin or any cryptocurrency. It is a digital or electronic currency that can be used to acquire and sell commodities online who accepts bitcoin as the mode of payment. No bank, country, or any third party can control the transactions. With this, it is only the authorized parties who can retrieve the data.

Although bitcoin has many rivals in the market, it is still the first and most used by many traders.

The creation of Bitcoin was on 2009 by Satoshi Nakamoto, a fictitious name but originally, bitcoin.org is already registered on the internet in 2008. Since its launch, bitcoin has been causing the fastest growth among the different types of cryptocurrencies known in the market.

One of the main strong points of Bitcoin is its operating system that is 24/7 so the trade is non-stop. This makes it more convenient than the traditional procedure we have to get used to.

Buying Bitcoins

After learning about Bitcoin and you now decided to buy your own coins, you must take the necessary steps before fully enjoying its benefits. These steps include:

  1. The first and foremost step is to have a bitcoin wallet by setting up one.
  2. Once you have a bitcoin wallet, you can now buy Bitcoins with the use of your credit card, debit card, bank transfer, PayPal or at any Automated Teller Machine. Do take note that the price is not consistent, in buying bitcoins the price varies in the market.
  3. The currency will be put in your wallet once payment is completed.

The most important reminder is: Don’t forget to look for a secure wallet to maintain your bitcoins’ safety. Bitcoin is not the same with what you’ve been using in your day to day transactions so you must read and understand the things that you needed to know. It is your responsibility as the user to keep your money safe so you must pick your wallet wisely.

Once all steps are finished, congratulations! You are now a certified bitcoin user. But you may be thinking about what is the safest way to buy Bitcoin. There are many ways or methods that you can use and we’ve collected the necessary information you needed.

Choosing an Exchange: Which is the Best Bitcoin Exchange?

Since you have already your bitcoin wallet and verified account that allows you to do transactions like buying, you will now have to look for an exchange. Your concern now is which is the best bitcoin exchange to choose.

The marketplace where dealers can purchase and sell bitcoins is called Bitcoin Exchange. It is not a physical market but digital. There are several questions in this area that one must consider.

There are many things one must look after when choosing a bitcoin exchange. It is undeniable that there are a lot of platforms that offer the same thing but a trader must examine the following:

  • How reliable the platform is? Pick an exchange with a good reputation. You can do this by checking the reviews of traders online, friends, relatives, and colleagues who are or have been using the platform. A reliable platform shows that you can be safe with them.
  • If a problem arises, how quick does the Exchange take action in resolving the issue? As a customer, for sure you want a smooth transaction but if there are uncontrolled events, you want also a quick action to save your time, effort, and additional expenses. During the trouble, how efficient was the customer support? Did they give the appropriate help needed by the customer? A good exchange knows how to value its customers and not just the money it can get from them.
  • Is the exchange approved by regulators? Over the years, bitcoin exchange has been growing and expanding from countries to countries. Some of these are regulated and many are not. A regulated exchange is more secure than the unregulated ones because, in times of problems like hacking, the government can try to impose proper measures to see if the exchange is liable or not over the incident. With this, people or traders can still have hope that they will not lose their money.

Coinbase, Gemini, and Bitstamp are just a few examples of exchanges that fully comply with the regulations.

  • For every fee the Exchange collects, are they reasonable and well informed to the traders? No hidden charges? All exchanges need a fee to keep the business going but are these fees reasonable enough? Are the fees well explained to you? To be able to maximize your money, you have to compare the fees of each exchange. Do bear in mind that the fee changes depends on the payment process you choose. Binance, Kraken, Bitstamp, Gemini, etc. are exchanges that you can choose from that have low fees. You just have to remember that your location can also be a factor for a fee increase.
  • Is the Exchange secure enough? There are a lot of hackers circling around the internet looking for their prey. For sure you would not want to be one of their victims. Since the deal is done online, the system getting hacked is unavoidable. But the question is how quick is the exchange to be on the move to stop the advancement of the problem. You have to do thorough research about a platform before transacting business with them to keep your money, information, and time securely. A trusted platform is also backed by trustworthy investors and millions of users.
  • Is your Information safe in the Exchange? When buying bitcoins through an exchange, you have to consider if how secure your information is with them. There are many options in purchasing bitcoins like bank transfer, debit or credit card, PayPal, bank account or and transfer and so on. So far, the most private way of buying bitcoin is with the use of cash or cash deposits.
  • When Buying Bitcoins, is there any limit? Before buying bitcoins, you have to make sure or check whether or not the exchange has any limits in buying bitcoins. All exchanges are doing business but they have different rules and regulations. There are also some conditions with the payment method you use.
  • How soon do you want to Have Your Bitcoins? For beginners, it is not easy to have your bitcoins the way you want it. It might take you some time before you can get used to it. Most exchange platforms are also technical so if you’re not the tech-savvy type of person, take your time exploring. Consider also that the type of payment is one factor of how fast your coins can be delivered to you. If you know someone in your area who sells bitcoins, good for you because you can have them instantly. The downside is, you must be careful with fraud people. Another way is through bitcoin ATMs. If you have them near you then you’re one of the lucky guys.
  • Geographical or Area of Service. Though exchanges are expanding and flourishing, there are still countries that do not accept the use of bitcoin. It is always a reminder that you need to check the exchange you want to connect with if it is available in your country.
  • Verification Requirements. Majority of the exchanges especially the regulated ones require personal information verification through the use of an ID. There are also platforms that allow you to remain anonymous. Pick the one that you’re more comfortable with.

Communication Barriers

While Bitcoin is having a drastic growth worldwide, you must consider that the host country for an exchange plays an important role in the business. Not all countries have the same terms and conditions regarding Bitcoin. There are countries that fully support Bitcoin and some are less to no regulations at all. Language barriers, time differences, and international long distance fee are few of the additional problems if something goes wrong. It is a wise step to look for an exchange that can use your own language or a language that you can fully understand.

Although all exchanges have fees for transactions, the price should also be taken into consideration. Look for the lowest cost so you’ll use be able to make the best use of your own profits. A trading platform that is secure and a Bitcoin exchange that has strong security measures is another thing to think in making a decision. Poorly executed software signifies security risk.

If you are a new trader, picking an exchange that is novice-friendly is the wisest advice for you. Some platforms are designed for those who are tech-savvy and expert traders. Coinbase is a platform that is very popular yet designed for starters. Not only that, but it is also one of the most secure and with high trading partners.

Lastly, find an exchange that has numerous trading partners and top liquidity. The thought of liquidity has many sides to it. Another way of defining liquidity is the capability of an asset to be turned into cash easily on demand. Another way of examining it is an asset can be bought or disposed at its fair cost. Liquidity means that there are no discounts or premiums connected to it throughout buy or sell and it is convenient to enter and exit the asset.

The higher trading volumes accessible on a certain exchange, the more reliable a bitcoin exchange is on the market. If you are planning in buying and selling a larger quantity of bitcoins, you must consider exchanges where high trading volumes are accomplished.

Trading quantity records provide a proper indication to the traders about the liquidity on a market throughout a given duration of time. It can be used as a beneficial indicator as well during the trade for studying the market.

Summary

Entering Bitcoin is not a game. It can cost you your hard earned money if not careful on the transactions and choices you make. Always remember that once the transactions are already committed or confirmed in the system, they can’t be changed and canceled. Check every details and transaction properly to waste of time and money. Check also the right exchange that caters for your needs.

Payment Methods

So now you’ve decided to have your own coins, the thing is you don’t know where and how to buy them. Listed down below are the details you need to know that will help keep you going.

  1. You can buy bitcoins from a friend or someone near you using cash or cash deposit.

Buying Bitcoin personally from another person can be one of the quickest and anonymous approaches to obtain bitcoins. In most cases, you need not to give documentation that certifies your identity or wait for the confirmation period. In paying cash face-to-face, there is no need to divulge your name, address, or any personal details to the person whom you are transacting with. Being the fastest method, you normally can have your bitcoins within a few couples of hours.

Direct buying may be fast and more convenient but it can be costly. Cash exchange in the market generally ranges from 5 % and above. Another challenge also is finding a reliable and upright person eager to sell bitcoins. If the person you’re dealing with is not a reputable one, high chances that you’ll get scammed. Always be alert to avoid being robbed.

  1. Acquire bitcoins online with a credit /debit card or bank transfer.

Credit or Debit Cards: Majority of the customers is using credit and debit cards for their daily lives thus they want also to use it in purchasing bitcoins. This is another way of having your bitcoins instantly. On the other part, this advantage may also come at a price, given that many cryptocurrency exchanges impose a rate of about 4% for purchases made via credit or debit cards.

Another pitfall for the use of a credit card is that your privacy is revealed. You need to provide an identification card to be able to buy.

You can buy bitcoins via credit card with:

  • Bitstamp
  • Coinbase
  • Bitpanda; etc.

There are many exchanges that accept credit or debit cards when buying bitcoins. Do make sure to check the reputation of the exchange before having any transaction with them to avoid losing your money.

Bank Transfer or Bank Account: There are some countries that accept bank transfers but you have to check well on their website to avoid confusion. The use of bank transfer when obtaining bitcoins will result in the cheapest price and also a good approach when you want to acquire more bitcoins. Just like the other methods, the use of bank transfer or bank account also has downfalls. ID verification is required just like credit or debit card process and another thing is it might take up to 5 days to finalize the transaction. You can buy bitcoins through bank transfer/bank account from:

  • Coinbase
  • Gemini
  • Bitstamp
  • Kraken; etc.

Check the status of the exchange in your country because some exchange only allows bank transfer or bank account transaction in certain countries.

  1. Get Bitcoin using PayPal

Under PayPal’s terms and conditions, users are not allowed to acquire bitcoins using PayPal as payment. There are accounts being shut down when PayPal suspected of bitcoin and cryptocurrency trades. However, there are some ways to keep the business going. You can actually buy other goods or digital items using PayPal then sell those items for bitcoin. If you choose this option, make sure also that you’re ready with the high charges of PayPal that’s more than 12%.

  1. Purchase bitcoins from a Bitcoin ATM.

Using ATM to purchase bitcoin is another convenient and fast way to have your coins instantly. It is also more anonymous since an often time there is no need to provide personal information. The drawback is the usual high fees.

FAQ

1/ What is Bitcoin?

Bitcoin is a structure of digital money which is based on an open supply code that was created and is held electronically. It is a decentralized monetary system which means that it does not belong to any government institution and is not managed by anyone.

2/ Who created Bitcoin?

Satoshi Nakamoto is the one said to be behind Bitcoin but is claimed to be a pen name because there is no evidence to prove his real identity.

3/ How Do Bitcoin Transactions Work?

From the ultimate user part, using Bitcoin is exceptionally simple. It can be based totally on software on your computer or an app on your cellphone. You can send or receive Bitcoin (BTC) to and from your wallet through the software. The wallet has a special encrypted set of numbers and letters which is linked solely to your software and no one else’s.

Other traders can send money to your wallet and you also can do the same to other wallets on the BTC network. When using a cellular phone, QR codes often appear which make the manner of paying BTC to a different user a lot simpler. All you have to do is scan the QR code and affirm the amount of BTC you want to transfer.

On the part of the Bitcoin network, the transactions are rather complicated. Every transaction is publicly shared on a Bitcoin community on a ledger called the “blockchain”.

This ledger consists of every single transaction ever made, which offers complete transparency for every transaction and grants any computer on the organization to confirm its validity. A digital signature is linked to every transaction, which corresponds with the sending address.

This is accomplished to provide authenticity to each transaction and allow all users full authority over all bitcoins which they can send from their Bitcoin address. Additionally, customers who have high-end hardware can use it to authenticate these transactions as they go thru and in turn are rewarded with bitcoins for their services, this is called “mining”.

4/ Who controls Bitcoin?

As noted earlier, the Bitcoin currency structure is not controlled by anyone. The organization is decentralized and as a result, no government has any power over it. Those who have real control over Bitcoin are the traders and businesses that have invested in it, mine it, or use it for purchases.

The Bitcoin software program is developed in a unique way. In order to be in a position to use Bitcoin, you have to have a suitable version of the software program which complies with an equal rule. It simply means that all users should be on the equal page in order to be able to engage in the Bitcoin revolution.

The builders of the software program are constantly improving the code and making Bitcoin even more secure. Since the customers are in power of which agreement and versions to use, the developers can’t pressure modifications to principal aspects of the Bitcoin code.

Bitcoin software will only work properly if the customers and the developers adhere to an entire consensus among each and everyone, therefore it is in everybody’s best concern to shield this consensus.

5/ How can you get Bitcoins?

There are 4 methods to get Bitcoins.

The first one is obviously easy and self-explanatory: you offer goods or services exchange for Bitcoins. No other conditions attached, simply decide the price for your service or goods in BTC then make the transaction. The client will then send the right amount to your wallet and once received you will serve the needed service or goods.

Second is to make a purchase via Bitcoin exchange. There are many various sites that are accessible where you can search for Bitcoins buyers and sellers. You must also link your Bank account to the exchange site to be able to make purchases. There are other exchanges that allow you to obtain BTC with other forms of payment, such as PayPal but usually, there are extra fees included when using these different payment schemes.

Number 3 option is a little bit less private and undisclosed. You can look for a person nearby who is offering to seal BTC and pay in cash.

The last option and seems the most appealing to some users is called “mining”. Bitcoin mining is a method of which negotiations on the Bitcoin network are certified and saved on a blockchain ledger which keeps the record of all Bitcoin transactions.

6/ Is Bitcoin legal?

Bitcoin is legitimate in almost every country. Only a few have prohibited the operation of bitcoin in their country. Make sure that you have checked the status of bitcoin in your country before buying.

7/ Can you sell Bitcoins?

Absolutely you can sell bitcoins. You can either sell directly to your friends, families, and people you know or use other exchanges by registering in their platform as a seller.

8/ When is the Right Time to Buy Bitcoins?

You need not to worry because bitcoin operates 24/7. Price changes every second but there are tools that can help every trader analyze charts.

9/ Why there is a need to Upload ID for some exchanges?

Most regulated exchanges require you to upload an ID for the verification process. It is implemented because of the Know-Your-Customer Regulations (KYC). Its aim is to document the real world identity of their customers.

How to Avoid Scams

Scammers have been around since money was created. They began to prosper as years pass by and became more active using technology to their advantage. In order to protect yourself from scammers, know what the scams that you must be on the lookout for.

  • Check for phishing activities

This is the most popular and constant cryptocurrency scams worldwide. The aim is to collect important and sensitive data from the user such as passwords, usernames, bank or card details, etc. In cryptocurrency, phishing scams invade cryptocurrency exchange passwords, private keys, digital wallets, etc. This process commonly achieved thru a fake internet site that looks like a licensed one. People who join these websites enter their data and the website owners can simply take the information and use for their own needs. Phishing is so famous scam because it is convenient to operate, requires basic technical knowledge, and does not require a lot of money. It is generally done through email.

  • Be careful of malware downloads

The internet era has carried numerous malware, viruses, and other problems in today’s generation. Unfortunately, scammers can make easy money online with alarming downloads. Make sure not to click on anonymous email attachments and possibly unreliable links.

Beware also of bitcoins being used as bait. For instance, a social media post that says you can mine bitcoin just by downloading a program or a link to an alleged bitcoin exchange that provides freebies to get you started. It should be treated as a red flag. There are many safe, secure, and legitimate cryptocurrency exchanges but you have to do more research with Google or sites that have credible reputations.

  • Do Your Research

It is easy to make an enticing story to attract traders to conduct business. If you chose one exchange that you want to deal with, perform a background check. You can do it online by checking the reviews about it and other user forums. Protect yourself. For peer-to-peer exchange like LocalBitcoins.com, LocalMonero, or BitQuick, if they have positive feedback online then it’s more likely a reliable source.

  • Avoid Bitcoin Investments

Since bitcoin is progressing, many swindlers are trying to take advantage of it. To avoid getting scammed, don’t fall for promises that are unbelievable.

  • Stay away from unregulated brokers and exchanges

There are numerous unregulated online exchanges and brokerage firms that offer cryptocurrencies and cryptocurrency trading products. Investors should be cautious of too-good-to-be-true promotions and guarantees fast money. Once you’ve deposited money, many of these companies will ask you for high commissions or make it very challenging to withdraw funds. Some of them will completely take your money. Always check how credible an exchange is before giving your trust.

Secure Your Coins

The only person whom you can trust in keeping your coins safe is yourself.

Choose your wallet wisely. Before having a bitcoin, you must also think of how to protect them. Bitcoin wallet or simply “wallet’ is the key. Rather than physically protecting your bitcoin, it holds the personal key that authorizes you to obtain your bitcoin address. A wallet holds numerous personal keys and many bitcoin traders have a different wallet. 

Wallets can either stay on your pc and/or cellular phone, on a piece of paper, or on a physical safe-deposit gadget.

The use of Bitcoin makes the life of many busy people easier but if not well protected; it can cause a huge loss. To minimize the occurrence of such situation, you must adhere to the terms and conditions set by the platform. You also play a huge part in protecting your own money.

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Binance Review & The Complete Beginner’s Guide

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What is Binance?

Binance is a renowned cryptocurrency exchange platform launched in China but recently relocated its headquarters to Malta, a cryptocurrency-friendly island in the European Union. The exchange’s popularity is majorly attributed to its crypto-to-crypto trading services. Despite the fact that the organization is somewhat a new entrant in the market, thanks to their splendid no. of ICO listings, low trading fees, professional attitude, and a friendly Chief Executive Officer, it has succeeded to amass a whole lot of recognition.

Insofar as this review goes, we will try to look into or rather address all there is to know about Binance, including how it operates, the cryptocurrency pairs available for trade on the platform, security facets, customer support, as well as its trading fees and the limits herein involved. Click here to visit official site!

How does Binance work?

Upon your first visit to the platform’s site, you will at a glance come to the realization that as far as digital assets trading is concerned, there are two versions for users namely; basic crypto trading and advanced crypto trading. Neither of the aforementioned versions is deemed an easy-to-use option for absolute beginners. Be that as it may, anybody with a background in cryptocurrencies, as well as a bit of know-how regarding how cryptocurrency exchanges operate is better placed to leverage the exchange’s platform and its various services. The key disparity between the two versions (basic and advanced) is that the advanced version offers a technical analysis of cryptocurrency value that is more in-depth over time.

Basic Platform

At the moment, the view of the basic version’s dashboard offers a number of charts and graphs for the crypto pairs you intend to trade, the history of your trade, and order books.

The view is neatly designed and properly laid out. All the info you may need is presented vividly with prices on the view’s left side panel, graphs centered, and the trade boxes (buy and sell boxes) on the right panel so you can quickly have a glance of what the most recent prices with regard to trade were.

Advanced Platform

The advanced view, on the other hand, has a dark theme and enlarges the trading charts. What’s more, the most recent trade prices are presented on the view’s right-hand-side panel. Underneath this panel are the buy and sell boxes.

Binance Account Sign-up and Sign-in

Signing up for an account is the first step towards utilizing the Binance platform for crypto trading. The process herein involved is rather easy and straight-forward. Significantly, a user doesn’t have to verify their account for the first level which basically has a 2 BTC daily withdrawal limit. The second level, on the other hand, with a withdrawal limit of up to 100 BTC in a day, requires a user to upload a photo of their ID and hold on until they are authenticated. As much as there exist higher limits as well, you will be required to directly get in touch with the exchange’s administrators for such arrangements.

The verification period is bound to vary contingent upon how busy the administrators are. Consequently, be sure to make arrangements ahead of time in the event you wish to make larger amounts of withdrawals. Also, it is absolutely necessary that you complete the signup process and log into your account before you are ready to deposit and (or) trade on the platform.

Binance Funding and Withdrawal

Funding your Binance Account

Upon completing the signup and verification processes, users can proceed to funding their Binance account. Even though users are at liberty to select from a multitude of cryptocurrencies, it is advised that they stick with either Bitcoin (BTC) or Ether (ETH). To deposit funds into your Binance account from the site, navigate to the “Funds” > “Deposits / Withdrawals” link at the top of the web page and select your preferred currency, then click the button labeled “Deposit” beside it which will, in turn, provide you with the address of the wallet. At this point, you can then have your funds transferred to your allocated address and commence trading on the platform. Contingent upon your chosen currency, the time taken for the funds to show up varies as this depends on the blockchain of the currency. Certain cryptocurrencies such as Ethereum take a shorter time to show up as compared to Bitcoin which is bound to take a little longer.

Now that you have successfully funded your Binance account, you are in a position to begin to trade, exchange, and invest in a number of crypto pairs. The platform offers a variety of options, given that it not only supports all major cryptocurrencies but diverse ICO listings and their corresponding tokens as well.

So far, the Binance exchange platform can only be used to generate limits and market orders. To a number of users, this has been deemed disadvantageous since they expected to land at trading options that are more advanced. Upon placing your order, simply hold on for a moment while the order is fulfilled as per the stipulated terms and conditions.

Withdrawals

Withdrawing your funds from the Binance exchange platform is just as easy as depositing them is. To do this, click on the withdrawals tab on the main menu bar after which you will be redirected to withdrawal section. Select the coin that has your assets or funds then enter your external wallet address and proceed to make the withdrawal. You will be required by Binance to confirm the transaction. This can be via either email confirmation or 2-factor authentication. In the event you wish not to go through this process every other time you carry out such a transaction, then you are at liberty to elect the specific addresses to the white label.

How to Trade on the Binance Exchange Platform

Having interacted with any particular digital currency exchange before, trading on the Binance platform ought to be passably straight-forward. To begin, be sure to have some funds in your Binance account. Significantly, you are provided with options to trade pairs in USDT, BNB, BTC, and ETH. After funding your Binance account, select “Exchange” > “Basic” or “Advanced” to load the trading web page.

Assuming you selected the basic view, select the USDT, BNB, BTC, or ETH tab on the site’s right-hand side panel – you will be trading in this. Then from the provided list of cryptocurrencies, select the one you most prefer. You can as well search here and even set up a list of your favorite cryptocurrencies by clicking on the star button beside the coin.

The moment your selected cryptocurrency has loaded, take notice of the column on the left-hand-side which displays the prices at which other users or rather traders are willing to sell in the top half in red and the prices at which other traders are willing to purchase in the bottom half in green.

In order to place a purchase order, navigate to the box in the center below the graphs where you will see the buy box – it is on the right and has a green background. Even though there is the option for you to manually key in your purchase price, a more effective way would be to select an amount on the column in the left-hand-side. Either way, you can then key in the amount of the cryptocurrency you are inclined to buying or click the 100%, 75%, 50%, or 25% buttons. This will as result fill the text field with an amount depending on the amount of the buying currency you have in your wallet (BTC in this case).

Upon the placement of your order, it will progressively be displayed below the “Open Orders” segment until it is completely filled. So far, your new crypto asset will be available underneath the “Deposits / Withdrawals” menu. From here you can make withdrawals to your cryptocurrency wallet of preference.

Supported Digital Currencies by Binance

Binance is vastly renowned for its support of a vast range of digital currencies. Crypto traders are in a position to trade multiple cryptocurrencies, with the inclusion of, but unlimited to, among others, Ethereum, Bitcoin Gold, Ethereum Classic, Bitcoin, NEO, Bitcoin Cash, Ripple, EOS, GAS, Dash, Zcash, LiteCoin, just to mention but a few. As earlier mentioned, Binance as well supports a variety of tokens, as part of ICO listings. Crypto traders can as such trade the aforementioned tokens for purposes of profiting.

Binance is at the moment very quick to include new crypto coins and tokens after their ICO which basically implies that traders can purchase them at pocket-friendly prices. This as result gives room for bigger profits down the pike. The exchange at the moment offers trading pairs in USDT, ETH, BTC, and BNB.

Binance ICO and BNB Coin

Worth noting is that the BNB token (Binance Coin) which was offered amid Binance’s Initial Coin Offering can be used in the payment of fees. What’s more, the coin is scheduled to feature in the organization’s future plans to develop a decentralized exchange platform in which case the coin will serve as the primary base currency. The Binance Coin is worth investing in as the organization plans on using their profits to buy back a portion of the coins every quarter and destroy them, thus reducing their supply and further augmenting their value for holders. Here is what the CEO had to say:

“Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.”

Binance Fees and Limits

Up till the time of this writing, Binance charges an approximated 0.1 percent on every trade made by a user on their platform. Most noteworthy, Binance offers a 25 percent discount on the trading fees for individuals who opt for paying through the Binance token (BNB), which is unreservedly great news. These are undoubtedly among the lowest possible fees available so far in the marketplace. Withdrawal fees normally have a tendency to vary for each cryptocurrency. For example, whilst Bitcoin withdrawals are charged at 0.0005, ETH withdrawals are charged at 0.005.

As far as transfer limits go, the amount of coins a user can deposit is unlimited. Be that as it may, in cases where a user is not verified (level1 user), there are limitations insofar as their withdrawal amount is concerned. Account verification establishes one as a level 2 user, hence lifting the aforementioned limits and providing a lot more freedom when using the exchange’s platform. This authentication process necessitates a user to provide their full name, government-issued Identification card or passport photo, gender, country of residence, as well as a selfie holding the ID card or passport.

Order Types

Insofar as order types go, Binance has a comparatively standard offering. On the Binance exchange platform the trading orders are categorized into three types namely:

  • Limit order:

This lets you place an order at a particular price that is not in the current market price.

  • Market order:

A market order executes an order at the going market rate. It is the order a trader uses when they only want to purchase or sell at the particular moment.

  • Stop Limit:

A stop limit is basically a limit order that also lets you place a stop price. The moment the market attains this price your trade will be closed out. Simply put, placing this order can be likened to placing a stop loss.

Is Binance Safe?

Despite being among the most recent crypto exchanges to join the market, Binance has swiftly managed to establish a high level of trustworthiness from not only its users but the cryptocurrency community at large. Nonetheless, the platform does not provide users with sufficient information regarding the manner in which funds are secured, yet we are inclined to believing that security is a major concern insofar as cryptocurrency trading goes. 2-factor verification of user accounts is available, which normally is a nice sight. However, it is common knowledge that the platform offers a multi-tier and multi-tier system architecture.

Most noteworthy, Binance was a victim of a hacking attempt in March 2018. The hackers attempted to pull off an intrepid stunt which was fortunately captured by the automated systems in place at the exchange. The hackers had been racking up users’ logins for months through a phishing website and covertly installing API access on the vulnerable Binance accounts. They then pounded, converting the victims’ altcoins in their entirety to BTC and buying Viacoin which as a result pumped the coin to a big price. They then sold their Viacoin supply at the peak, prior to attempting to make withdrawals of the BTC to their individual wallets. Fortunately, none of the users succumbed to fund losses since the hack was captured. Instead, it’s the hackers who lost and their funds will be donated to charity.

Given that the hack was caused by users posting their account credentials and two-factor authentication credentials into a phony website, you ought to always ensure you’re on the right Binance website URL prior to signing in to your account. You are as such advised to bookmark the site and only use the bookmark to access it. It is as well recommended that users should never click links from emails, twitter, telegram, and other social media sites. This occurrence has to a great extent instilled confidence around the exchange. This level of confidence is majorly attributed to the fact that not only did the exchange’s automated systems capture the pursued hack before any loss of users’ funds, but also that the organization has since offered a bounty worth $250,000 to whoever can help nab hackers. All through the event, Binance acted exceptionally and have been venerated for their rapid action in mitigating this.

Binance Customer Support

A successful exchange platform calls for an appreciable customer support team, with the capability to answer all user queries and requests in a timely manner. Much as Binance’s support could use a bit of work, the support team is significantly responsive and bears the capacity to offer professional help to traders in need. The platform issues support tickets through an online form featured on the exchange’s site. Consequently, responses are conducted through email. At the moment, there is neither an active chat support nor a toll no. through which users can contact the support team.

 

Besides their reputable customer support, Binance provides its users with a number of FAQs and articles meant to help them stay abreast with the exchange platform and how it operates.

It is worth noting that Binance’s customer support has been known to be slow insofar as responding to customer requests goes. This is a common phenomenon with a vast majority of large exchanges and is basically attributed to the large number of users as well as the size of the support staff. The platforms have grown at an alarming rate this past year and the organizations have basically not been able to keep abreast with the demand. Binance, in particular, grew rapidly, going from its establishment to being the biggest cryptocurrency exchange globally over such short a period. Crypto exchanges’ support teams should be keenly vetted and trained about security requirements as well as the technicalities engrossed – in contrast to other traditional organizations where training the staff can be a lot quicker.

Launching a Decentralized Exchange

Binance’s most recent news and what appears to be good news for holders of the BNB token regards the fact that the organization looks forward to launching their own DEX (Decentralized Exchange):

“After extensively researching decentralized exchange frameworks and analyzing existing implementations, we believe significant improvements can be made in providing Binance users with a level of trading experience to which they are already accustomed. Centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence.”

Currently an ERC-20 token, the BNB digital asset is scheduled to migrate as the network’s native token and will be used for the payment of the new exchange’s trading fees.

Binance Jersey Launch – Now Supports Fiat to Crypto Exchanges

As of January 16, 2019, Binance has announced the instigation of a new fiat to cryptocurrency exchange referred to as “Binance Jersey”. The trading platform is live and active and allows users to carry out their trades using such fiat currencies as the euro and the sterling pound. The exchange’s primary target is the European market.

Up till the time of this post’s composition, the platform only offers the following 4 trading pairs with more to follow in the near future:

  • BTC/EUR
  • BTC/GBP
  • ETH/EUR
  • ETH/GBP

Binance Referral Program

Are you enthusiastic about the Binance trading experience? Well, if this is the case then it’s good news for you as the exchange provides its users with the opportunity to pocket referral commissions. This could as well be an apt choice for traders who have a passably solid online following.

Binance rewards its users a percentage of the users’ trading revenue. This reward is variable and at the moment rests at 20 percent. Nonetheless, in the event you are holding over 500 BNB in your Binance account, then the exchange increases the percentage to 50%.

If you wish to participate in the Binance referral campaign then you will be required to get a referral link. You can get this link on your dashboard from Binance’s invite link. If you click on the link, you will be redirected to your affiliate link. It is this link that you send to your friends and online followers. You are at liberty to as well use the auto-generated QR code.

Conclusion

At the moment, Binance’s matching engine has the capacity to process orders at the rate of just about 1.4 million per second. This, as a result, labels it one of the quickest cryptocurrency exchange platforms available on the market. What’s more, it works on all sorts of devices, including HTML5, Web, WeChat, and Android. Most noteworthy, the exchange offers multi-language support in Japanese, Korean, English, and Chinese.

Based on all that has so far been mentioned, Binance is, without doubt, the most established crypto exchange and not only offers appreciable fees, but an amazing cryptocurrency support as well. Given that it reportedly has access to a whole lot of resources and partners, it is most probable that Binance will continue to evolve and provide its users with great cryptocurrency exchange services.

Parting Shot:

As always, take precautionary measures, for instance, using a unique password for account registrations, enable two-factor authentication on your account, and always remember to withdraw your crypto assets to your own private wallet as holding your assets on the exchange platform makes them vulnerable to scams.

Best Bitcoin & Cryptocurrency Exchanges

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Insofar as finding the most convenient cryptocurrency exchange is concerned, things could get somewhat arduous. A good number of the best cryptocurrency exchange platforms are just recently online. This basically implies that the exchanges have barely had enough time to put the word out regarding their services and commodities/products. Most likely, that the fact that you are reading this post means you are interested in getting started with cryptocurrency trading. Well, welcome aboard as this is a good starting point for you.

Among the very first things to put into consideration when choosing a cryptocurrency exchange that best suits you is the platform’s security. A cryptocurrency exchange platform that is trustworthy is one that provides transparent data regarding cryptocurrencies in cold storage. It is as well advisable to check out if an exchange supports your fiat currency as this will be convenient in the event you are not able to acquire crypto coins for exchange. Arguably, below are the best 10 cryptocurrency exchanges.

Top 10 Best Cryptocurrency Exchanges

1. Binance

Binance is an expeditiously growing cryptocurrency exchange whose ICO was concluded in 2017. Since the exchange’s ICO to date, it has grown tremendously and is at the moment ranked the top ten BTC exchanges globally. As much as it is based outside China and does not serve its native country, it is open to virtually every country around the globe. Given that it is a centralized cryptocurrency exchange, Binance has taken a distinctive take to augment its business operations as well as provide decent discounts for day traders.

Binance Advantages

Binance is renowned for its acutely high processing speeds of up to 1.4M orders per second. The exchange as well boasts its multilingual support, a track record of success, and its android and iOS mobile application. What’s more, the exchange is among the few crypto exchange platforms that charge the lowest fees insofar as crypto trading is concerned particularly for users who pay in BNB.

Binance Drawbacks

A major drawback of this exchange platform regards the fact that it does not allow the use of fiat currency for trading. Furthermore, its payment options are limited.

2. Coinbase (GDAX)

Based in the United States, Coinbase is among the most renowned exchanges that trade bitcoin. The exchange platform has one of the tidiest interfaces. In addition, their state-of-the-art mobile apps for both android and iOS makes it easier for users to trade BTC and Ether from their mobile devices. The exchange is operational in several countries and is convenient for all users including beginners.

Coinbase Pros

All factors considered, listed below are among the reasons you should consider Coinbase as your cryptocurrency exchange platform of choice:

  1. Coinbase offers a wide variety of options for fiat deposits and withdrawals including credit cards.
  2. The exchange offers mobile as well as online wallet services.
  3. Coinbase guarantees insured BTC deposits.
  4. They have an interface that is not only very user-friendly, but intuitive as well.
  5. The exchange boasts instantaneous transfers of assets between its users.
  6. The platform is secured with both multi-sig and 2FA security options thus preventing unauthorized manipulation of funds.

Coinbase Drawbacks

Even with robust technological advancements, the tech industry is still faced with a number of pain points that can’t be left unaddressed. The crytpo world is no exception. Consequently, listed below are among the major drawbacks of Coinbase:

  1. There is lack of anonymity for Coinbase users as its accounts are regularly monitored.
  2. There are cases of transaction delays with Coinbase.
  3. The exchange does not support many cryptocurrencies.
  4. Slow support.

3. Bittrex

Headquartered in Las Vegas, US, Bittrex is a crypto coin exchange platform that provides its users with an alternative of trading over 190 crypto coins concurrently. It is renowned for its elegant design and easy-to-use interface. It is well regulated and in compliance with the present US laws and rules. Consequently, users can rest assured that their assets are kept safe. The exchange manages one of the largest BTC trading volumes globally.

Bittrex Pros

In addition to offering a state-of-the-art easy-to-use user interface that is convenient for all users (even beginners), Bittrex as well provides a host of robust tools, for instance, candlestick charts and crosshairs which are quintessential for traders in advanced levels. It as well is reputable, as aforementioned, for its advanced security and compliance with the United States regulations as far as crypto trading is concerned.

Bittrex Drawbacks

The exchange is known to at times have long verification processes. Moreover, their turnaround time as far as customer service is concerned can at certain times be slow-going.

4. Gemini

Established by the Winklevoss twins, Gemini is fully regulated certified Bitcoin and Ether exchange platform. It holds its deposits in US dollars at an FDIC-insured bank. It is among the very few Bitcoin exchange platforms that are regulated by the NYSDFS (New York State Department of Financial Services).

Gemini Advantages

The Gemini exchange is renowned for its easy-to-use platform with high liquidity as well as good analytics.

Gemini Drawbacks

A major drawback of the Gemini exchange is that its trade is restricted to particular geographic regions. What’s more, the exchange supports a limited number of crypto coins and doesn’t offer margin trading.

5. Kucoin

Founded in September 2017 and headquartered at Hong Kong, Kucoin has so far not been a victim of scams or any fraudulent activities. Nonetheless, considering its recent entry into the marketplace, Kucoin still has got to evince itself as a long-term secure exchange. The exchange’s explosive growth in defiance of being passably new on the market is attributed to not only its low withdrawal fees, but also its referral program, Kucoins, through which clients are able to earn passive income.

Kucoin Advantages

As an affordable cryptocurrency exchange with low transaction fees, Kucoin has set up a solid interface as well as a bank-level security for its crypto assets. The organization offers 24/7 customer service via its website, hot line, and email. It is as well renowned for being a cryptocurrency exchange that speedily supports the most recent altcoins.

Kucoin Drawbacks

A major drawback of the Kucoin exchange is that it doesn’t support cryptocurrency purchases using conventional or rather fiat currencies. What’s more, the fact it only supports English as its language of operations poses a challenge for non-English speaking users.

6. Changelly

Changelly was founded in 2013 and has its headquarters in Czech Republic. It stands out from the rest of the crypto exchange platforms in the sense that it compiles aggregates of a variety of exchange rates to come up with the most convenient rates to its users. This feature is as well integrated into such crypto exchange platforms as Bittrex and Poloniex.

Advantages of using Changelly

Changelly boasts an easy-to-use user interface that is convenient even for beginners. In addition, it offers comparatively low fees for its transactions.

Changelly Drawbacks

Even though Changelly’s transaction fees are passably low, compared to other exchanges, these charges are somewhat high in the event you intend to purchase cryptocurrencies directly.

7. Shapeshift

Shapeshift is renowned for being the exchange of choice for crypto traders who want to quickly and anonymously carry out cryptocurrency trades. The platform’s users are in a position to carry out trades without the need of signing up for a trade account. Be that as it may, there have occurred quite of instances where users complain about losses of their funds. Most noteworthy, in 2016, the organization suffered a momentous hack with up to a 200,000 dollar loss of its users’ funds. This as a result gravely tarnished the organization’s reputation. In a bid to mitigate this, Shapeshift has since announced plans to augment its security by making it AML/KYC imperative by the end of this year.

Advantages of using Shapeshift

A major advantage of Shapeshift regards its low transaction fees. Besides offering low transaction fees to its users the organization boasts being a popular option for cryptocurrency traders who intend to speedily and anonymously carry out trades.

Shapeshift Drawbacks

As a result of the 2016 hack as aforementioned, security could be a major concern for its users. Even more, the fact that the exchange allows users to trade anonymously and is as such void of verification procedures and passwords, the platform could become vulnerable to security breaches. Another drawback worth noting is the fact that Shapeshift does not support trading using fiat currencies.

8. Bitstamp

Founded in 2011 with its headquarters in the European Union, Bitstamp is among the first-generation Bitcoin exchange platforms that has built up a loyal customer base. The exchange has instilled trust in a vast majority of crypto traders and is renowned as a highly secure exchange platform.

Subsequent to signing up for a free account on the exchange and making a deposit, users can immediately commence trading.

Advantages of Bitstamp:

  • State of the art security.
  • Low transaction fees.
  • Highly reputable.
  • Available globally.
  • Convenient for large transactions.

Bitstamp Cons:

  • Has limited payment methods.
  • Not beginner friendly.
  • Has high deposit fees.
  • The UI is not as friendly.

9. Poloniex

Poloniex is a San Francisco headquartered cryptocurrency exchange platform that provides its users with the opportunity to perform margin trading. Significantly, the platform suffered a hack in 2014. Consequently, the organization suffered losses that equaled to approximately 12.3 percent of all bitcoins. The organization accounted for the loss and repaid all the users who had lost their funds in full. In a bid to mitigate the breach, the exchange has since taken to storing most of its deposits in cold storage as well as monitoring traders’ activities 24/7. In February 2018, Circle, a highly esteemed cryptocurrency business, acquired Poloniex. Most recently, the organization announced the incorporation of USDC, an utterly collateralized US dollar stablecoin to their platform. It is bolstered with robust security features, for instance, a 2-step verification system, multi-sig technology for its wallet, as well as a cold storage system that is fully insured. The exchange further boasts a multi-lingual user-friendly UI that is convenient for all users.

Poloniex Pros

The exchange enjoys the advantage of giving traders an opportunity to trade an ample variety of crypto coins. It as well provides traders with state-of-the-art analysis tools, an opportunity to trade on margin as earlier mentioned, and good liquidity.

Poloniex Disadvantages

The exchange has fallen victim to negative reviews insofar as lack of customer service and its slow website are concerned.

10. eToro

Founded in 2007, eToro is a highly renowned Fintech startup, an Israeli social trading broker. The exchange offers services to UK-based clients in compliance with an FCA regulated entity, and Australian clients in compliance with Australian entity. The rest of the clients are offered services in compliance with a Cypriot entity. eToro has no listing on any cryptocurrency exchange, keeps its annual report undisclosed on its website, and bears no bank parent. What’s more, it is among the top five best cryptocurrency exchange platforms in the European Union.

eToro is deemed safe, given that its UK arm is under the regulation of a top-tier. Moreover, it is a well-known startup of Fintech organization. It is elementally a broker for the CFD. CFDs are multiplex instruments and come bundled with a high risk of losing money rapidly owing to leverage. Of all retail investor accounts, 65 percent of them lose money while trading CFDs utilizing this provider. As such, as a trader, you ought to put into consideration whether you have the wherewithal for taking the peril of losing your funds.

eToro Pros

  • It is an enjoyable cryptocurrency trading platform.
  • Signing up for an account on the platform is seamless.
  • Social trading experience.

eToro Cons

  • Customer services are poor.
  • Vulnerable to trading platform outages.
  • Its product range is limited (majorly CFDs)

Conclusion

Every other day, new cryptocurrency exchanges are emerging on the web. This as  a result makes competition even stiffer and so we can anticipate to see a lot more of them with even better capabilities and features.

A word of caution

Be sure not to use these exchanges as your wallet. Much as they are convenient for purposes of crypto trading, in the event you want to hoard your crypto assets, it is highly recommended that you either utilize a mobile-based or hardware wallet. Such wallets include, among others, Trezor or the LedgerWallet. Hardware wallets are particularly most preferable as with them you get to store your crypto assets offline, thus not vulnerable to hacks and other fraudulent activities.

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Best Bitcoin & Cryptocurrency Wallets

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In the surge of cryptocurrency, Bitcoin rose to popularity which earned the attention of many people and encouraged them to invest in it. Like any cryptocurrency, you need to have a place or an app where you can safely store them and easily get back to them when you need to – here come the different Bitcoin wallets that are readily available in the market today.

A bitcoin wallet could be an app on your phone or a program in your computer that allows you to store your Bitcoin cash (BCH) or Bitcoin core (BTC). This means you can send and receive BCH or BTC through this wallet. With most people who are not as technical, choosing a wallet that is easy to use and manage is sure a priority.

These wallets will keep records of all the transactions you have with your Bitcoin cash (BCH).

What is a Bitcoin Wallet?

Let us assume that you have learned enough about this cryptocurrency system that allows transactions between users in a decentralized fashion which means, it is not regulated by a bank or any payment gateway. Bitcoins are not printed like regular money, instead, they are created and held electronically. This digital currency maximizes a peer-to-peer technology and operates independently from a regulating central bank.

However, before you can own any bitcoin, you must have someplace where you can store them. These are what we call Bitcoin wallets. Instead of holding your bitcoin, the Bitcoin wallet holds a private key that will allow you to have access to your Bitcoin address. You can’t store or put your Bitcoin anywhere. The aforementioned private key has a corresponding address. A Bitcoin wallet is a software program where your Bitcoins will be stored and there are several forms that you can choose from.

Since Bitcoin is a form of cryptocurrency, a Bitcoin wallet can be regarded as digital wallet. If cash is stored in a physical wallet, Bitcoin is stored in the Bitcoin wallet. However, unlike physical cash, what you store are important information like the private key to access Bitcoin addresses and this is where you may complete transactions.

Types of Bitcoin Wallets

Some of the more common types of wallets are paper, desktop, mobile, web, and hardware.

Paper wallets are resistant to hackers because it is a document that can be used to receive Bitcoins and a private key. This allows the user to use or send Bitcoins that are stored at the said address. Paper wallets are usually in the form of QR codes that you can scan and you may add the private keys to a software wallet in order to make a transaction. Paper wallets are a good option for those who want to own their own private wallets without handing out cash which you would do for other types of wallets. You need to be knowledgeable to set-up your paper wallets properly.

Desktop wallets are installed on a desktop computer where the owner has a control over the Bitcoin wallet. The user who uses desktop wallets can create a Bitcoin address that he or she can use to send or receive Bitcoins.

On the contrary, while desktop apps are usually fixed in one place, mobile wallets overcome this problem. These are mobile applications that you can run on your smartphone and take with you wherever you go. These perform the same functions as a desktop wallet but you can perform similar functions and help you pay using your mobile app. You can make payments in physical stores using your mobile wallet.

Web wallets are online wallets so caution must be taken when accessing or using these especially because these will store private keys online. These are web wallets and can be accessed on your browser or mobile.

Hardware wallets are considered as the most secure among the available Bitcoin wallets. These store Bitcoins on a physical piece of equipment that can be plugged into a USB port on a computer.

Hardware Wallets

Hardware wallets are secure and these are the wallets that you can physically keep. These, as the name suggests, are hardware devices or physical pieces of equipment where the user can keep their private keys. As far as Bitcoin wallets are concerned, there have been no confirmed cases of money being stolen from a hardware wallet and hardware wallets are also immune to computer viruses and the funds which are stored inside the hardware cannot easily be transferred out of the device.

These electronic devices are made for securing your crypto cash or crypto coins and these must be connected to your device like a laptop computer or a gadget before you can use your Bitcoins. Hardware wallets are very reliable and these can provide you with the accessibility and security that you need. Your private keys are secure in your hardware wallet and they are fully protected even in cases where you have to insert it in a computer that is filled with viruses and malware.

Hardware wallets are secure because they are an offline wallet where you store your cryptocurrency. Unlike the other wallets that are connected to the internet, hardware wallets have less potential of being accessed or hacked by cyber-criminals who may be able to access private keys and software wallets or those other Bitcoin wallets that are connected on the web.

Here are some of hardware wallets available in the market:

Ledger Nano S – these usually costs around 60 to 80 Euros and has a screen. You have to press two buttons simultaneously to confirm a transaction and this prevents hackers from hacking into your device and authorizing transactions. The Ledger Nano S has a PIN code. Nano Ledger S is more portable and easier to carry compared to some hardware wallets.

TREZOR – The original TREZOR One costs around 89-99 Euros but the new Model T costs around 120 Euros. Trezor has a screen as well as two buttons that you have to press simultaneously. The wallet can be backed up with up to 24 words and a passphrase. This hardware wallet also uses a PIN Code. Trezor is famed for their reputable security that boasts protection from both physical and virtual theft.

KeepKey – at around 114 Euros, KeepKey can support multi-currencies and not just Bitcoin. You are allowed a one-time chance to write down a twelve-word recovery sentence. It also has a screen which will display each transaction that has to be reviewed and confirmed. KeepKey is also virus and malware-proof.

Hot Wallets

Hot wallets are Bitcoin wallets that need the internet to run. Your computer, mobile phone, or tablet has to be connected to the internet to work. Private keys have to be secure because these are your secret codes that you need to access your Bitcoin addresses. Your private keys also are what you need to make transactions. Since hot wallets produce your private keys on a device or gadget that is accessible through the internet, these types of wallets are not assured to be completely secure as compared to some other wallets in the market.

Hot wallets are a good and easy way to store small amounts of Bitcoin and cryptocurrency. These are also considered to be convenient and an easy way to transact like spending and receiving payments because it is fast.

An example of a hot wallet is called Coinbase which is an online web-based wallet. It is user-friendly and beginner-friendly. 100% of your crypto holdings in Coinbase are also insured which is definitely a plus. For an added layer of security, Coinbase also has an available vault.

Online Bitcoin Wallets

Few sites come to mind when we talk about online Bitcoin wallets since there are only a few options for online wallets compared to that of Android or iOS devices. According to a popular survey, Blockchain.info is the best online wallet because it has the technology that allows BTC and other cryptocurrencies to exist.

This is very similar to Coinbase but the only difference is that you can’t buy and sell through Blockchain; this means that you should have another wallet or means of buying and selling since Blockchain is basically BTC storage.

Mobile Wallets

As previously discussed, mobile wallets overcome the handicap of a desktop wallet which you cannot bring with you and access immediately when you need to. Mobile wallets may be available in your gadget like a mobile or smartphone or tablet. Mobile wallets are very appealing to a lot of people because of its convenience and the fast process it involves. You only need to download an application and follow its sign-up or registration requirements.

If you have a lot of Bitcoin cash or a large amount of crypto holdings, it is not very safe for you to use mobile wallets as these wallets are prone to a possible hacking attack and so hardware and paper wallets are more advisable for those who are into bigger Bitcoin investments as these other wallets provide additional security for the user.

There are however very reliable mobile wallets. One of these is Bitcoin Wallet available on Android. It is easy to pay using Bitcoin Wallet since you pay quickly by scanning a QR-Code. For merchants and entrepreneurs, you will receive payments in an instant. This mobile wallet is reliable and one of the most secure.

Airbitz is another mobile wallet available for both iOS and Android users. The interface of Airbitz is nice and the wallet is user-friendly. It is as familiar and comfortable as other banking apps. In this wallet, only you have access to your Bitcoin funds as well as the data related to your transactions.

Coinomi

Coinomi maybe the oldest multi-asset wallet available in the market today. Used by millions of active users, Coinomi was founded five years ago and was said to have never been hacked or compromised as claimed by their happy customers according to posts in Reddit or other platforms where this wallet has been reviewed.

Before you download the Coinomi app, you will be able to see the multiple digital coins it is supportin – from Bitcoin to Ethereum, Komodo, Litecoin to even onG; name it and most likely, Coinomi supports it.

This wallet has superb security which assures users that your private keys never leave your device; they have a strong wallet encryption and cryptography guarantee that your cryptocurrency funds will remain safe and always in your control. With its enhanced privacy and anonymity, no KYC bureaucracy will access your funds, no IP address association, linking or transaction tracking – ever.

Jaxx

Jaxx is one of the most popular digital wallet downloaded in the market today. Jaxx Liberty is a cross-platform built for Android and iOS devices; even Windows and even as a Chrome browser extension.

Like most cryptocurrency wallets, Jaxx Liberty is a multi-asset wallet. Jaxx supports over 70 digital assets and cryptocurrencies and some fiat reference points.

Jaxx has a unified dashboard that allows you to view your assets in a streamlined and easy-to-use interface; a new feature to this cryptocurrency wallet. It also promises that sensitive information like your backup phrase and private keys are never stored in their system which assures each user that they control their information and no one else.

Bread Wallet

‘Better than a bank’ – is Bread’s slogan; with the promise of sending and receiving any amount of bitcoin anywhere in the world – instantly. This company is inviting every bitcoin user the liberty to take part in the global economy 24 hours a day, 7 days a week. If you are a beginner, Bread can give you a convenient and secure way of using a bitcoin wallet.

A company based and headquartered in Zurich, Switzerland, Bread boasts a robust security infrastructure built-into the app to protect each user’s personal information and privacy.

Bread, previously known as Bread Wallet is said to be a great iPhone Bitcoin wallet. It recently released an Android wallet which made their probable users excited. This bitcoin wallet offers a user-friendly control of private keys; an easy interface and passcode support. Now, available for iOS and Android, Bread showcase a streamlined, highly-intuitive design for a faster transaction with bitcoin.

This wallet is free; easy to use; does not need registration to get started; does not collect client information and provides a new wallet address for every transaction which improves privacy and security for the clientele. And because this wallet is new, you would expect some disadvantages with it – there had been numerous reported issues related with the app lagging and freezing; also, it does not offer two-factor authentication; some of its features require the use of third-party services and it does not currently include replay protection for potential forks in the Blockchain.

Edge

Edge is a cryptocurrency wallet for both Android and iOS devices. This was created by the former Airbitz tea, and released last February 2018. In 2014, the development team of Airbitz worked on the user-friendly security solutions for this wallet. In October 2017, Airbotz rebranded to Edge.

Edge is an easy-to-use cryptocurrency wallet that allows users to control and manage their information – like their private keys with ease like using their regular banking apps. Like all wallets that we have just talked about, Edge assures their users that they do not keep your information and that you alone have access to them.

FAQs

What are Bitcoin wallets?

These are where you store your Bitcoins. Instead of actual or physical cash, these wallets are where your private keys are stored.

What are these private keys?

These private keys will give you access to your Bitcoin address. Private keys are also a way to communicate even in unsecure networks.

What is a Bitcoin address?

A Bitcoin address is much like your bank account number where the Bitcoins would be sent. But in this case, a Bitcoin wallet can have multiple addresses. These are strings of letters and numbers that are used to send you funds. For security and privacy purposes, there is a new Bitcoin address that is generated or produced for every transaction.

How should addresses be written?

Bitcoin addresses are case sensitive so precaution must be taken when choosing the characters. These addresses usually have around 34 characters and numbers and lowercase letter. You may opt to start with 1 or 3 and because you have to be as clear as possible, avoid confusing characters like 0 and O or l and I.

Can I have more than one Bitcoin address?

Yes, you can. The safest and most private way to use Bitcoin is to never recycle an address, but your Bitcoin wallet will be the one to take care of this for you. Once you have reused an address, your wallet software or app will tell you that there is an error or that it is invalid.

What are desirable characteristics of a wallet?

Some of the considerations when choosing a cryptocurrency wallet are the following: cost, security, mobility, convenience. You should ask yourself too whether the wallet is user-friendly and whether you want a certain style or design that you would prefer (if physical Bitcoin wallets). The aforementioned traits are some of the considerations you have to keep in mind when choosing which wallet to choose.

Where do I get this wallet software?

Bitcoin is available everywhere, for everyone. You will be able to find Bitcoin wallets build or created for Android, iPhone, Mac, Windows, Linux and pretty much everything else.

Most of these Bitcoin wallets are ‘open source’ which means that developers can check on how they work and validate if something is suspicious about it.

If Bitcoin does not keep our information, why do we have to sign up?

Some providers will require you to sign up, while others don’t.

It’s not a requirement for Bitcoin for you to disclose your personal information. One of the main goals of Bitcoin is to avoid exposing your identity to anyone but still be able to conduct a transaction.

If a finite amount of Bitcoins gets lost, would it cause excessive deflation, therefore destroy Bitcoin?

Unlike most currencies, Bitcoin will only experience gradual deflation throughout its lifetime. It is so unique that only a small amount of units will ever be produced. This amount has been known since the creation of this cryptocurrency.

If a Bitcoin user loses its wallet, the money is gone from him and in circulation, unless found again. This was designed like this, so as not to be accessed by other Bitcoin users.

The mechanism that Bitcoin has is so special that problems like inflation has been thought of beforehand. Bitcoin offers a simple but very practical solution – infinite divisibility; meaning, it can be divided up and traded into small amounts.

What is a ‘Blockchain’?

Originally called block chain, a blockchain is a large database with all the transactions ever done using Bitcoin. Every transaction is gathered to create a block and every block is gathered to create a chain.

Bitcoin is managed by its network, and not anyone specifically. Decentralization is the opposite, it means that the network is operated through peer-to-peer.

Do I have to download Block chain?

As a normal user of Bitcoin, you don’t have to. You only have to download the parts of the block chain with your transactions on it.

Please explain ‘double spends’

This happens when you get to spend the same money twice with different people. It was a common problem with cryptocurrency until Bitcoin solved it.

Is Bitcoin like BitTorrent?

Yes, it uses a very similar approach in sharing a big database file that is the block chain.

Is Bitcoin legal?

Bitcoin has not been made illegal by legislation in most jurisdictions. Although there are some jurisdictions like Argentina and Russia that bans foreign currency and others (Thailand), limit them to regulate it.

Regulators are into allowing individuals and businesses to be integrated with this new technology in a formal and regulated way.

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How to Buy Bitcoin With Credit/Debit Card Instantly

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Introduction to Buying Bitcoin

There are a couple of ways to buy Bitcoins. You can use cash/wire transfer or through credit/debit cards. Obviously, you need a bank account for this.

Back in the day, it was harder to purchase Bitcoins. Not all exchanges allow direct buying with the use of credit or debit cards. They are concerned with the customer’s chargebacks. So they prefer crypto to crypto trading only. Now, they mitigated this through anti-fraud companies. More and more exchanges are opening their services to credit/debit card users making it convenient. This method, though, is still expensive compared to buying with cash or wire transfer.

You also have to check from your bank if they will verify the purchase. Otherwise, it will not go through and you will end up with nothing.

What to consider when buying Bitcoins using credit cards?

Transaction Fees

To mitigate frauds or chargebacks, sellers are charging more than the regular credit card processing fees. The lowest there is in the market is from Coinbase with 3.99%.

Foreign Transaction Fees

In the event that you will use an American credit card while planning to buy through an exchange that is based outside of the US, the bank may issue a foreign transaction fee. Usually, the fee will be around 3%.

Cash Advance Fees

Visa and Mastercard are classifying cryptocurrency purchases as cash advances. This means it has higher fees and interest will accumulate immediately.

Credit Scores

How much you use your credit limit is a big factor in calculating credit scores. The more available credit limit you use, the lower your scores will be. The moment you max out your credit limit to buy Bitcoins, it will have a negative impact on your credit scores.

There are things you need to have before you can buy Bitcoin. Check out the list below.

  • Digital Wallet – This is where you keep your “keys” – private and public keys needed for your buy and sell transactions worldwide.
  • Personal Documents – To register your digital wallet, the U.S. Securities and Exchange Commission requires the users to verify their identities. This is part of the Anti-Money Laundering Policy. That means personal documents such as a driver’s license and social security number are required for identity verification.
  • Bank Account/Credit or Debit Card – You need funds to make transactions like exchanging for Bitcoin from USD or other currencies. With your Bitcoin wallet connected to your bank account or credit/debit card makes it easier to transact.
  • Digital Exchange – A third party that is the online marketplace where actual buying and selling of Bitcoins happen. They are also known as brokers. Examples of such are Coinbase, CoinMama, Binance, and Luno to name a few. Do some research which one suits you before signing up.
  • Secure Internet Connection – Same as whatever sensitive transactions you do over the internet, you need to have a secured connection. Using a public WiFi network while trading Bitcoin is not recommended as it is susceptible to hackers.

Credit/Debit Card Bitcoin Exchanges

Now that you are all set to buy Bitcoins, the following section focuses on using credit/debit cards for Bitcoin transactions through exchanges. Mind you, some exchanges or brokers will try to take your credit card information or steal your cryptocurrencies. So make sure you have done your diligence in researching about them. The list below comprises four exchanges that are known to be legit and safe.

Coinbase is one of the most popular exchanges or broker that caters to 33 countries worldwide. It is also known to be reputable of the Bitcoin exchanges available. As based in San Francisco, California, Coinbase works with the financial authorities in the U.S. which means that they will report any profits made from the appreciation of Bitcoin or purchases of over $20,000 as tax and they have to pay it.

With a simple user interface on their website and mobile application, it appeals to the public more.  They even store 98 percent of customer currencies offline and that gives added security.

Another feature Coinbase has is recurring buys. It allows you to choose a time interval so you can cost average your purchases. Cost averaging is when you get the mean price of currency over a period of time. This is perfect to cover cryptocurrency volatility.

Coinbase charges a 3.99% fee on all purchases using credit or debit cards. But this fee is the lowest amongst the other brokerage services for U.S. and European customers.

Pros:

  • An easy and simple user interface that is even suitable for beginners.
  • High liquidity and buying limits
  • There is an “Instant Buy” option available for credit/debit card
  • Mobile app availability

Cons:

  • Poor customer support
  • Limited payment methods
  • Coinbase may track you where and how you spend your Bitcoins

Take note that as of February 2018, Coinbase has disabled adding new credit cards as a payment method for U.S. customers. Though adding new debit cards are still accepted.

Binance is touted as the largest cryptocurrency exchange in terms of trading volume, processing 1.4 million orders per second. As one of the newest exchange around, it was just founded last July 2017. Originally based in China, Binance is available to all countries and most U.S. states.

Last 31 January 2019, Binance announced that they have partnered with Simplex.

Simplex is a payment processing company which means that users can now buy Bitcoins or other cryptocurrencies with their credit/debit cards directly through Binance. Within 10-30 minutes after the transaction, your purchase/s will be in your wallet.

Binance charges a 0.1% fee on each trade which is lower than the market average. It can even be reduced to 50% less if the user opts to pay the fees with their own BNB tokens. The fee reduction that will decrease yearly has a set schedule.

For withdrawals, there is a different set of fees depending on what cryptocurrency. With Bitcoin transactions that have a minimum of .002, the withdrawal fee is .0005. That has an approximately USD value of 3.10. Compared this to other platforms, their withdrawal fee is considered to be average. But when you have larger transactions, these fees won’t matter a lot.

Pros:

  • Mobile app availability
  • Multilingual support
  • Low transaction fees
  • High liquidity
  • Offers their own Binance tokens for reduced trading fees

Cons:

  • “Know Your Customer” is a hassle
  • Android mobile app is difficult to navigate
  • Minimum allowed for buying is $50 not so good for low spenders
  • No phone support
  • Collects and store user data such as IP address

CoinMama is another great option in buying BTC. Older than most of the brokers around, it is known as one of the easiest and fastest ways to buy Bitcoins and other cryptocurrencies when using a credit or debit card. Originally based in Israel, they serve over 180 countries worldwide. In the U.S., not all states have access to CoinMama, though.

CoinMama is known to have the highest buying limits among exchanges that accept credit/debit card. It allows up to $5,000 worth of Bitcoins per day and up to $30,000 worth of BTC per month. The minimum that you can buy is worth $60 or the equivalent in EUR.

That being said, CoinMama has high fees when using credit/debit card. The brokerage service fee is 5.9% but is already included in the website’s prices. On top of the service fee, there is also a 5% credit card processing fee. When you think about it that’s 10.9% more than what the market value is.

It can take a few hours before you will get your purchases. There are three things that will matter on how long. First, the blockchain takes a few minutes for it to confirm a transaction. Second, credit card payments take several hours before it will be cleared. Lastly, you have to confirm your digital wallet address. And the longer you can confirm it, the longer you can receive your cryptocurrencies.

Pros:

  • Available in a lot of countries
  • Fast and reliable customer support
  • Multi-language site
  • High buying limits even when using credit/debit cards

Cons:

  • High buying charges when using credit/debit cards
  • Only accepts Visa and MasterCard, no PayPal nor American Express
  • Only a Buy Order option and thus cannot sell cryptocurrencies
  • No mobile app for the on-the-go users

Luno is originally named as BitX in 2013, then rebranded as Luno in 2016. It is an exchange that focuses more on developing countries such as Nigeria, Indonesia, and Malaysia. These three countries usually are not allowed on most Bitcoin exchanges. Aside from these countries, Luno is also available in South Africa, the United Kingdom and the majority of the European countries. Unfortunately, the USA is not supporting Luno.

In the crypto world, hacking is also rampant. Because of this, Luno made sure their security measures are top-notch. To safeguard the transactions and funds stored on the exchange, they are making the following security schemes.

  • Employee Background Checks: All employees have to pass a background check before can start working with Luno.
  • Deep Freeze Storage: Majority of the funds are kept in cold storage in multi-signature wallets.
  • Multi-Signature Hot Wallet: The hot wallet that is used for instant withdrawal is a multi-signature type. No single entity has control over the wallet as private keys are held by different parties.
  • Encrypted Back-up wallets: Luno encrypts back-up wallets.
  • Password: All passwords are stored in hashed forms. Make sure your passwords are strong when creating an account.
  • Two Factor Authentication: They incorporated the two-factor authentication. Your smartphone will generate a one-time code to authenticate the transaction.
  • SSL Secured Channels: All transactions and web activities are under SSL secured channels.

When it comes to fees, though, Luno has it as a little complicated. Fees vary depending on how much and what kind your transaction is. Transaction fees will only be charged if you are a taker. The fee is from 0.25% – 1% depending on what currency you are trading. For the maker, though, it is free. The exchange also has an “Instant Buy” option. Charges differ depending on your country and the amount of purchase. It’s better to double check before completing your transaction so that you won’t pay more of what you really intend to spend.

Check their website for a more detailed fee structure.

Pros:

  • Mobile app availability
  • Real-time market updates
  • Free deposits and low withdrawal fees
  • A reliable exchange that has been around for a long time

Cons:

  • No live chat support nor phone support
  • Only available in select countries
  • Confusing fee structure
  • Only two coins available

Buy Bitcoin in Less than 5 Minutes

Coinbase Buying Tutorial (Credit Card/Debit Card)

With the use of your credit or debit card, Coinbase lets you buy Bitcoins conveniently.

Follow the steps below for a smoother buying process.

  • Sign up for a Coinbase account.
  • After signing up, confirm your personal details. Once confirmed, log in back to your account. They may ask you to provide a digital file for an identification card.

 

  • Go to your account settings
  • Scroll to the top right corner where your name is and click it. You should find a drop-down tab where there is an option “Settings”. Under that is the “Payment Methods”. This should how it would look.

Click the option “Add Payment Method” that is on the right side.

  • Connect your credit/debit card.

You will be asked for verifications for it to be completed.

 

  • Enter your credit/debit card information

  • A confirmation like the one below will appear when your credit/debit card has been successfully added.

  • Once done, go to the Buy page that will look like this.

 

  • Put the amount that you want to purchase and click the “Buy Bitcoin Instantly” found at the bottom of the page. Your coins will then be sent directly to your wallet.

Binance Buying Tutorial (Credit Card/Debit Card)

  • On the Binance website, go to the upper right-hand corner where you can find

Log In or Register tabs. Click on Register.

 

  • Create a Binance account

Once you clicked Register, you will be redirected to the registration page just like the one below. Fill up the details for you to continue.

  • Terms of Use will show up. Read and agree with it and click Register.
  • You will then be asked to prove you are not a robot by letting you solve a puzzle.

 

  • There will be an email sent to you for verification. Verify your email address to complete the registration.

 

 

  • Adding a payment method

Go to the Funds tab at the upper right hand. It should have a drop-down menu and click Buy with Credit Card

 

  • Binance Disclaimer

Once you have clicked the Buy Now button, a disclaimer will pop up. It states that you will be leaving Binance and you will be under Simplex as you continue your purchase. Make sure you ticked the box where it says I have read and agreed to the disclaimer.

 

  • Billing Information

Enter your personal details and billing information

 

  • Payment Details

Please enter your credit card information

  • Verification

You will be asked to upload an ID for verification purposes. Make sure the file is of better quality and high resolution with a size between 400KB – 400MB.

 

You will then receive an email confirming the verification a success. If not, you will receive a pop-up notice that something is not right and you have to do it again.

  • Purchase successful

10-30 minutes after, you will have your Bitcoins or cryptocurrencies in your wallet.

Coinmama Buying Tutorial (Credit Card/Debit Card)

Here is the process of buying Bitcoins from Coinmama:

After creating an account, verify your email address. Once done, you can follow the steps below.

  • Log-in to your account

  • Enter your personal details

 

  • Upload and submit an identity verification document.

 

  • Add payment method

Either you use credit/debit card or bank transfer (SEPA – Europe only)

 

  • Buy Bitcoins

Once you are done adding a payment method, you can now enter the number of Bitcoins you want to buy. There is also an option for other cryptocurrencies.

 

  • Enter your Bitcoin Wallet address

  • Enter your credit or debit card details and information.

And you’re done.

Frequently Asked Questions:

Are you hesitant or are there still issues that bother you on using credit/debit cards in buying Bitcoins? Follow along for answers to common questions about this matter.

Is using a credit or debit card safe in buying Bitcoins?

Buying any cryptocurrency with a credit card is the same as purchasing any other goods online. It all depends on the seller or the merchant so make sure it is reputable. Always buy from reliable sources to avoid being scammed as it is also rampant in the crypto world.

What are the benefits or advantages of using a credit card?

Just like buying anything online, using a credit card when buying Bitcoins is fast, easy and convenient. On top of this, you can also earn rewards as long as it’s not cash advance.

Are there disadvantages in using a credit or debit card?

One known disadvantage is that the fees are higher because of the risk of scams and frauds. Buying in large amounts is also difficult when using credit or debit cards.

Can I use a prepaid debit card?

A lot of exchanges don’t accept prepaid debit cards. To use this, exchange it locally using LocalBitcoins.

Can I buy using a credit card anonymously?

It is illegal and it would be difficult for you to surpass the ID verification process

Should I get a new credit card to buy Bitcoins?

No need. There are no credit cards that give additional rewards when purchasing Bitcoins. And if your bank sees cryptocurrency as a cash advance, then you’ll never get those rewards.

Is it safe to give out personal documents to buy Bitcoins?

This still boils down to how reputable the exchange is. If you trust and think your details are safe, then go ahead. Just a reminder, in the online world, there is always a risk of having the exchange or the website of being hacked. But one thing positive about Bitcoin exchanges is that they have one of the best security and protection against hackers.

How come I can’t connect my credit card to my exchange account?

Some banks in the U.S.A. have blocked users from buying cryptocurrencies using credit cards. They feel that the public was getting a cash advance since you can use Bitcoins or other cryptocurrencies right away just like cash.

Is it good to leave my Bitcoins in the exchange after buying?

It is not advisable to leave your purchases in the exchange. Transfer them to your wallet for safety reasons. Sometimes exchanges get hacked, and they have lost items from the customers. Better be safe than sorry.

Can I sell Bitcoins to my credit card?

There are only a few exchanges where you can sell Bitcoins to your credit card.

Can I buy Bitcoins on multiple exchanges?

Yes, you can. Especially if the limits of a specific exchange aren’t too high for you. You can buy in CoinMama $150 each week and then purchase another $150 in your Coinbase account.

What is the best way to buy Bitcoins with credit cards?

Read and research about each exchange that is available. Or at least the ones that are popular. Make sure the one you have selected supports your country. You can also try each exchange and see which one suits for you.

Will the fees for buying Bitcoins with credit cards ever get lower?

It is unlikely. When using credit cards, Visa, Mastercard, AmEx, and the likes, always charge at least 2.9%. The user pays for this.

Why was using a credit card in buying Bitcoins once difficult?

When you use credit cards to purchase, sellers don’t get the money right away not until after sixty days from swiping the card. But credit card payments are reversible or can even be canceled. However, Bitcoin transactions are irreversible. That’s why it is a risk for sellers to accept payments using credit cards.

Can I purchase other cryptocurrency using this method?

It all depends on the exchange you are using. Some only allow Litecoins and Ethereum with a credit card. Another exchange supports Bitcoin, Litecoin, Ether, and Cardano only. As mentioned above, make sure you have selected the exchange based on what you need and what you prefer.

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