Peer-to-Peer Trading of Bitcoins

Peer to Peer BitcoinThe third method of exercising online trading of Bitcoins is by making use of ‘peer-to-peer trading places and venues.’ These are basically websites that bring together groups of traders with similar and opposite needs. One group comprises of those individuals who are interested in using Bitcoins for buying goods from websites that don’t accept any digital currency directly. The second group consists of people who want to purchase Bitcoins using a debit or credit card. Trading marketplaces give these people a platform where they can sell Bitcoins offer discounted goods to each other, respectively.

Such marketplaces are basically working as intermediaries providing users with a proper platform to execute the trade, escrow for carrying out the transactions and Bitcoin wallets.

Look at an example to understand how this method works. Amy posts her Amazon wish list on a peer-to-peer trading marketplace and states that she would prefer discounts up to 25 percent. Ben owns a debit/ credit card and is interested in purchasing Bitcoins that match the exact value of Amy’s purchases. He agrees to that trade via the marketplace and purchases the respective goods Amy is interested in and requests Amazon that those goods be delivered on the address given by Amy. As soon as the order is delivered, Amy notifies that marketplace and Ben’s Bitcoins get released from the escrow. They are then transferred to Ben’s wallet minus the agreed discount by Amy as well as a fee charged by the marketplace.

There are certain concerns pertinent to withdrawing funds using online methods. You can move your money around using the international method of wire transfers. The majority of the Bitcoin markets working online support this procedure.

You can also make use of the SEPA system which stands for Single European Payments Area. It was created to execute transfers internationally between the member states and countries of the EU (European Union). Exchanges such as BTC-e and Kraken recognize this method. However, transfers tend to take quite a long time that can extend up to four to five days. They can also incur huge charges that make the trading extremely costly. HSBC charges around 4 on every SEPA payment that is executed using online banking. Barclays charges around 15 on every SEPA payment.

If you want to open a bank account solely for receiving funds while practicing Bitcoin trading, a large number of banks would reject your application. This makes it quite difficult for Bitcoin traders to trade at times. You can take the help of third-party payment workstations for receiving and withdrawing funds, but this method isn’t as efficient as the ones discussed earlier on.

Direct Selling

Direct selling or selling Bitcoins in person to a buyer is another way you can sell and buy Bitcoins. This is quite an easy method of passing on the digital currency you own. You need to scan the QR code using the other person’s mobile phone for accepting the cash-in-hand. If there are family members, friends or colleagues who are interested in purchasing Bitcoins then you can easily practice this method. Set the concerned buyers with any Bitcoin wallet, transfer Bitcoins to their account and collect the cash amount.

However, you need to take care of a few things when practicing direct Bitcoin trading.

Settle on a Suitable Rate: You need to decide a certain rate that would work well for you. Most of the sellers take a price using well known Bitcoin exchanges such as Bitcoin Price Index or CoinDesk. Some sellers may apply a certain percentage on these rates for covering costs or as anonymity premium. You can take the assistance of mobile application for calculating the prices. Popular and workable apps include BTCreport and Zeroblock. It is important that you are aware of the local fluctuations occurring in the price. Price tends to vary from one country to another, mainly due to problems in acquiring Bitcoins using the national currency of that country. Various Bitcoin meet-ups take place across the globe where people interested in trading cyrptocurrencies and Bitcoins meet with concerned people and execute different trades.

Safety Issues: You need to be careful when carrying enormous amounts of money with you to meet a prospective buyer in any public place. It is best to tag a friend along to enhance the security of your cash and to decrease your likelihood of experiencing any unfortunate incident.


LocalBitcoins is a website where you can broadcast your identity as a seller of Bitcoin to a large audience. This is another method to exercise Bitcoin trading. The website allows all the users to rate one another so that people can assess the honestly, reliability and trustworthiness of different trade partners to choose a dependable one. Once you are successful in establishing a reliable reputation on the site, you can sell Bitcoins with a certain premium. It is a convenient mode of practicing Bitcoin trading as you aren’t demanded to prove your identity like you had to do on the other websites discussed above. If you plan on setting a direct meeting with a buyer you identified on LocalBitcoins, you need to observe safety precautionary measures so that you aren’t scammed. LocalBitcoins does support and recognize escrow transactions, but these are limited to be used for the online transactions and not the direct dealings. Hence, you must not comply with any requests from a person who asks you for a direct escrow transaction.

Easy Security With A Mobile Bitcoin Wallet

Airbitz LogoIf you would like to be able to send and receive bitcoins straight from your mobile phone and wish that the transactions would be as safe and secure and possible, then you should definitely try out the new Airbitz wallet. This app comes with some of the most powerful safety features you can find in a mobile Bitcoin wallet, while also being extremely easy to use.

Setup your own Bitcoin wallet in seconds

If you have tried the other Bitcoin wallets only to quit because of the many complicated steps involved, then you should be glad to learn that the new Airbitz app is easy to setup. All you need to do is to create a login as well as a password and PIN, and you can start sending and receiving bitcoins straight away. Not only do you get to start your bitcoins within seconds, but you also get all the data encrypted and backed up automatically without you having to take another step. You can send or receive bitcoins by using your email, sending SMS, using QR code or Bluetooth.

Simplicity and efficiency at its best

The Airbitz wallet is so simple to use that even your grandma can start sending and receiving bitcoins in 5 minutes. While this new app keeps usability at maximum for the basic user, you should know that advanced users should be satisfied as well, because all the complex and powerful features are still there. Besides ease of use, the Airbitz wallet also comes with a clean and easy to use map which displays all local businesses and directories that use bitcoins within your area.

Eliminate risks with the superior safety features

While other Bitcoin wallets are risky to use and they can result in loss of bitcoins or worse, the new Airbitz wallet provides the user with maximum security and protection. If you manage to lose your mobile phone or it gets stolen, then you don’t have to worry about any information getting stolen as well. You won’t lose access to your bitcoins either, since you can enter the login, password and PIN on any other mobile device and start sending and receiving bitcoins in seconds. What’s more, data that is not encrypted won’t be stored on the mobile device. Airbitz also doesn’t send any unencrypted data so that you stay safe. Any encrypted data will be backed up in the cloud, so, again, you don’t have to worry about losing your mobile device.

Private transactions from anywhere

Another great thing about using the Airbitz wallet is that it has a decentralized architecture. What this means is that you don’t lose access to your bitcoins even in the case of a server shutdown from Airbitz. That is because the app will access other bitcoin network nodes so that you can continue to send and receive bitcoins with ease. You also won’t need to give any personal information to use the wallet, and all user data and keys will be encrypted automatically.

So don’t miss out on the opportunity to use one of the easiest and safest wallets around. Get the Airbitz app and start sending and receiving bitcoins as soon as possible.

All About Cryptocurrencies

bitcoin-minerToday we are going to talk about the cryptocurrencies that you’ve been hearing so much about. There are a ton of them floating around now and everyone wants a piece of the pie but the main ones are Bitcoin, Litecoin,  Peercoin, Namecoin and Dogecoin and Catcoin. Actually no, I’m just kidding about those last two. They do really exist. In fact people are making money on Catcoin at the moment. But anyway those four first ones are sort of the more relevant ones.

We’re going to give you a rundown about this cryptocurrency thing and what it’s all about. So at the most basic level these cryptocurrencies are really no different than the money that you have in your wallet. Similar to this money in my wallet it has no intrinsic value it’s just bits of data. This is just pieces of paper you can’t actually really do much with this other than like throw it in the air like a rap star. Like you know, make straight menacing poses and hold large wads of it or whatever else you want to do.

It also bears some similarities to commodities like gold and diamonds though so there’s no central bank that controls it. And keeping with that theme of no control, like gold and diamonds, it can be sent directly from user to user without any credit card companies banks or other intermediaries.

Now unlike the rap status paper you can’t just print a bunch of the cryptocurrency. They they need to be mined so at the heart of Bitcoin, for example, there is a mathematical problem. Users solve these problems with high end computer parts. Graphics cards are better than C.P.U.s use and beyond those are ASICS cards. And every time a solution to the problem is found there is a reward given in the form of a Bitcoin. Now the difficulty of this math problem varies with the strength of the network so that the solutions are found at regular intervals every ten minutes on average.

The reward itself also varies  except it is tied to a four year scale which started at ten point five million coins in the first year and then will half. Now eventually we’re going to reach the upper limit of twenty one million bitcoins and after that, like gold, once we run out of it we can’t mine more. And the theory is that Bitcoins will become more expensive as they become more rare and people eventually lose them. I mean once you lose a wallet full of bitcoins those Bitcoins are gone forever.

Don’t worry guys there is a saving grace. Unlike normal currency that can only make smaller denominations like pennies and dollars Bitcoins can actually be divided up to eight decimal places. A zero point zero zero zero zero zero zero zero one Bitcoin would be the smallest denomination of that coin. That’s how even with Bitcoin hovering at you know anywhere between five hundred fifty nine hundred dollars Canadian depending on the time of day and you know what’s going on out there in the market, you can still just use a fraction of that to pay for a pack of gum for example. IT’s not like do you have change for seven hundred dollars?

Now the way that Bitcoins are stored is in a virtual wallet which basically keeps a unique record of every single transaction and also allows you to send and receive Bitcoins. All transactions are also verified by the miners and that record is permanently stored by all members of the network. So that means that transactions can take a few minutes in order to complete and verify that it is actually gone through.

So that is the general idea behind Bitcoin and cryptocurrency as a whole but what about all these other cryptocurrencies. We’ve mostly talked about Bitcoin so far. Well there are three main ones Litecoin, Peercoin and Namecoin.

Litecoins are the second biggest cryptocurrency right now with. The main advantage I guess being that there are a lot cheaper, they’re easier to mine and they are also about four times faster when completing a transaction. Speaking of them being easier to mine, Litecoin is also ASIC resistant. Which means that ASIC cards and machines that are special pieces of hardware that are built simply to mine cryptocurrency faster is not that effective on it.

Now speaking of ASICs, let’s talk a little bit about what those are. So for Bitcoin particularly because it’s not ASIC resistant. ASIC cards and machines are special pieces of hardware that are built simply to mine Bitcoin way faster than even the highest end consumer grade hardware. To put that it in perspective, the fastest video card produces between one to two kilohash, which is the unit of measurement for how quickly you can calculate cryptocurrency. So these dedicated cards compared to 1.2 kilohash can produce up to fifteen hundred gigahash at power consumptions that are much lower.

Power consumption is one of the major costs of mining bitcoins because you have to have the hardware working extremely hard. Essentially with Litecoins, when I say ASIC resistant, it means that they are much harder to make dedicated hardware for and G.P.U.s, graphics cards remain the most efficient way to mine them. That makes them much more accessible than the two thousand plus dollars ASIC monster dedicated hardware and in addition to that you can actually use your graphics card for other things. So it’s more for real people, normal people.

Now all the other currencies have their unique spin but I won’t bog you down too much with all of that. Just check out the description to learn more about them.

In summary Bitcoins are a virtual currency which, like I said, is not really that different from a paper currency, this is a sort of virtual value as well. You can mine them with high end computer parts or ASIC miners. There are a maximum of twenty one million bit coins out there twelve million of which have already been found and all the transactions are publicly and anonymously stored.