If you are looking to get into the game of Bitcoin and hold your own coins, there are various options available. Here are some of the different strategies available for acquiring some Bitcoin of your.
Buy them from an exchange
One of the most common ways to acquire bitcoins is definitely through an exchange. Websites like Bitstamp, BTC-E, or Cavirtex here in Nova scotia, allow you to purchase Bitcoin. They don’t sell Bitcoin themselves, but how functions is the exchanges pair you as a buyer with a seller who’s marketing for whatever price you’re looking for.
This sounds like a great option, and in some ways it is, but it has its disadvantages as well.
One of the major types is that the exchanges require you to add your individual information to them via Know Your own Client legislation that’s present in numerous countries in regards to currency-related businesses. This may not be a concern for everyone, but in a post-NSA scandal era, it’s becoming more and more clear, at least to me, that information you put out there is more accessible than you think.
I might be a little weird, but who knows what might happen in the future. After all, just ten years back the idea that the government is spying on everything we do was purely the particular realm of tin foil hat conspiracy theorists, and now it’s just common knowledge. Who knows what’s following?
As you can tell, I’m not a big fan of the exchanges. The idea that I have to give up my personal information to an entity which might have to release that information seems to go against the spirit of Bitcoin.
Fortunately, there are other options.
Of course , there’s only one place Bitcoins really come from; mining. Every Bitcoin you’ll ever own, see, or hear about, was at one point mined via the Bitcoin mining system.
If you find yourself in possession of a mining rig, go ahead and mine away! Or even if you have a computer fast enough to be able to worthwhile, that’s cool too.
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Yet be careful! If your computer isn’t cooled properly, you run the risk of overheating it, which could potentially brick it.
Frankly, mining with your computer isn’t really worth it. Not anymore. As the mining problems increases, it becomes more and more difficult to obtain any profit from it. And unless you have a dedicated mining rig, your chance of getting any sort of return from mining is pretty low.
Some argue that mining is on its way out, and even buying a dedicated mining rig isn’t really a valid option anymore. I don’t agree, but that’s a topic for another day time.
Buy them from a private broker
If you’re able to find a private broker, you can date them and exchange. This has several obvious benefits, but it also has disadvantages.
First off, it’s completely anonymous. Even if you meet in person, there’s no reason you should utilize your real name, or any details about yourself other than your wallet number so they can transfer the funds to you. And if you pay cash, the banks can’t trace it either. So if that’s a concern for you, most likely in business.
But of course with invisiblity comes some risk as well. Dealing through an exchange, the risk of getting cheated is lower. Of course , exchanges have vanished in the past, taking everyone’s Bitcoins with these, but the bigger, more established exchanges have experienced time to build their brand plus prove themselves as more trustworthy.
You might pay a price premium for that invisiblity as well. From my experience, it could be as much as 15-20% higher than average trade prices. But again, if anonymity is important to you, that’s a small price to pay.
When you trade with someone anonymously, you don’t have the security of the exchanges. They could be legit and honest, but they could just as easily be shady and willing to rip you off. Having said that, buying from a private broker can be my preferred method of purchasing Bitcoin. But it’s important to have safety measures in place, otherwise you’re leaving yourself available to getting burned.
Accept them because payment for goods and services
This one is really obvious, yet often people forget about it. Amidst all the investors getting involved along with Bitcoin and the excitement around the motion, it’s easy to forget that Bitcoin is not only a hot commodity or high value stock. It’s designed as a form of currency. And if you run a business, you can accept Bitcoin as payment instead of cash.