18. June 2018

This Is How You Trade Bitcoin

Whether or not Bitcoin has a future: If you want to trade with the digital currency, in any case you must take some things into account.

The opinions on the cryptocurrency Bitcoin differ enormously. “This mafia money should long be banned,” a reader writes to the cash column in a news magazin last Monday. Another says: “There is still a lot of room for improvement”.

Bitcoin – and other digital currencies – are currently a hot debate because their prices seem to have no upward limit. Last year alone, Bitcoin has risen from just under $ 1,000 to more than 19,000 – an increase in value of more than 1900 percent. The recent price gains go alongside with the split of the digital currency into Bitcoin and B-Cash.

Parallel to the splitting of the Bitcoin community technical innovations were adopted, which are to increase the last strongly fallen speed with transactions at Bitcoin again. This makes the digital currency even more attractive to users and investors.

Regardless of whether Bitcoin, Ethereum, Ripple & Co. will one day replace the established currencies, there are several ways to invest in the crypto-universe. The quickest and most original is to buy Bitcoin directly – provided the nature of the digital currencies and their risks are understood.

Everything Starts With The Wallet

First, a so-called wallet is needed, so a wallet, where the bitcoins (strictly speaking, it is only the access code) are kept. Wallets come in various forms: as a USB stick, stored on the computer or as an online version with access via the Internet. In terms of security, the analog version with USB stick is to be preferred, even if it contradicts the basic idea of ​​the digital Bitcoin community course something.

There are many digital wallet providers. With over 16 million Bitcoin wallets, blockchain.info is one of the largest. A good overview of this area also offers bitcoin.com. For beginners, it is worthwhile in any case, to do some research at the beginning and to consider the experiences of other users.

The next step is to sign up for an Exchange, a Bitcoin exchange. After successful registration (depending on the provider including ID identification) can be exchanged here “real” money in Bitcoin. The Bitcoin balance is then stored in the wallet. The sales process is just as easy.

Even at the stock exchanges, the offer is huge. Due to different regulations, it is advisable to choose a stock exchange that is supported in your own country. A selection for Switzerland can be found here. Payments in euros or dollars are standard, sometimes a transfer in Swiss francs is possible.

It is also crucial which payment options an exchange accepts: bank transfer, credit card, Paypal? Depending on the method, which is the most comfortable and costs the least fees, the decision is different. The fees are calculated either as a flat rate or as a percentage of the transaction amount.

However, a high fee is no guarantee that the transaction will be processed faster. But speed is an important issue, because the Bitcoin price is sometimes very volatile. Some stock exchanges offer a guaranteed price, others have an order book that gives an indication of the liquidity of the trade.

Many exchanges also offer the possibility to exchange Bitcoin back into conventional money. Some providers are still experiencing difficulties in this area. Price gains in digital currencies are subject to income tax and profit tax, the property of wealth tax. The authority determines the corresponding value by determining the prices on different platforms.

It’s also possible to trade Bitcoin anonymously, meaning there are brokers that don’t claim an ID or anything personal from their customers. Here is a list of the anonymous crypto exchanges on www.bestbitcoinbroker.net

Different Purchase Limits

In addition, the maximum purchase price is limited in many places. The limit for the Swiss provider Bity, for example, is 4000 euros per year in the basic package. When registering with personal documents, the annual limit increases to 100,000 euros.

Finally, safety must not be neglected. For in the past, there was always news that the Bitcoin exchanges were hacked and money was diverted. Similar to e-banking, only addresses with “https” and two-factor authentication are recommended.

By the way, this is the official Bitcoin site: bitcoin.org – Don’t confuse it with others.

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