Why Accepting Bitcoin Benefits Online Businesses

Accepting Bitcoin is a move many businesses are taking. Thousands of companies accept Bitcoin, and recently, many larger ones such as Microsoft began accepting the digital currency. Bitpay serves over 40,000 merchants worldwide, and Coinbase also serves thousands more. Both take care of the overhead technology needed to accept Bitcoin, and also allow the merchant to instantly convert to their country’s currency at the time of purchase, eliminating any risks Bitcoin has on finances, or tax burdens. Even if you’re hesitant towards Bitcoin itself due to Security, volatility, or needing to develop for it, keep in mind Bitpay and Coinbase’s API will take care of it for you, and if you choose to instantly convert to fiat currency, you’re not taking any risk with Bitcoin’s rapidly fluctuating value. The only investment you need to make is the 1-2 hours  it takes for your web developer to implement the API into your website’s checkout, link your company’s bank account, and register for an account.

 

Will Bitcoin Help My Business?

 

Before accepting Bitcoin, it’s important to consider your target demographic, and how it compares to Bitcoin’s demographic. Bitcoin users may be more likely to buy particular products. If your products are highly desirable to Bitcoin users, you’ll likely see a large increase in sales if you begin accepting Bitcoin, and market it accordingly through social media. For more information, read here.

If your product doesn’t directly interest Bitcoin users, don’t assume its pointless to accept it. It may draw in a new consumer base that had never considered your products before. Bitcoin users love to support merchants that begin accepting Bitcoin, so they may choose to purchase from your store simply because you accept Bitcoin. Even if they don’t have much use for it their selves, they may consider them as gifts for others, or just an extra luxury for themselves that they’ll find a way to appreciate. Contrary to expectations, Overstock reported that the most commonly purchased item with Bitcoin was “sheets”, despite many expecting it to be electronics.

To develop an idea of Bitcoin’s demographic, it may help to understand what Bitcoin is and how it appeals to its users. Bitcoin appeals to the tech-savvy crowd, as it requires a decent amount computer proficiency to use, and extensive knowledge of computer technology to fully comprehend. If you own a technology based store, accepting Bitcoin is almost certainly a good idea. This survey by the Massachusets Division of Banks shows factors that make up the Bitcoin demographic.

Creating a Niche Product

Developing a Niche product, and marketing it to the world in hope of selling it is very difficult. Not only is it hard to find anyone interested in your product, but there’s likely someone that does it better, or at least is better known in the industry. Accepting Bitcoin allows you to step ahead of your competition, and brings to you an additional set of  consumers. By bringing attention to your goods or services through an alternative payment method, you may help spread the word of your product, as your new patrons may share it with friends/family that may not use Bitcoin, or even heard of your shop in the past. Bitcoin creates enormous potential for new online startups, by enabling them to reveal their products to a large crowd of cryptocurrency enthusiasts. If you have a quality product that you feel people would like, then Bitcoin may be the catalyst you need to get it rolling.

Taking Advantage of Social Media to Promote Your Bitcoin-Accepting Business

Accepting Bitcoin is an excellent way to attract a new audience to your store. By properly utilizing social media, you can spread the news that your store is one of the most recent to adapt to this trend, and get your name out there. In most communities, advertising your business would be seen as spam, and frowned upon. But with Bitcoin, users are happy to see more uses for their currency, and are glad to see posts of new places to spend it. Social media allows for a great way for you to advertise your business without a cost, and grow your customer base. In addition to well known social networking sites such as Facebook and Twitter, there are plenty of sites that you can make use of that Bitcoin users frequent.

Coinmap

If you own a retail store/restaurant, or any sort of business at a physical location(not just on the web), then Coinmap.org may help bring customers to your business. Coinmap Uses Google Maps to allow users to place their business on the map as accepting either Bitcoin or Litecoin(or both!)Many will go to great lengths just to try out what stores accept Bitcoin near them. Think of it like the Bitcoin Yellowpages, but as a map rather than just a list.

Reddit

Reddit is a community that contains various communities known as subreddits. The Bitcoin community graciously accepts an occasional post promoting your business, given that you don’t spam excessively, and provide good customer service. Unlike most forums, posts on Reddit are sorted to the top based on user voting, and how long since they were posted. To ensure your posts to Reddit gain traction, make sure to maintain good PR, and respond to potential concerns and questions in the comment sections of your posts.

Reposting is deeply frowned upon if it doesn’t deliver new information not covered by previous posts. If you feel the need to create another post about your business too soon after last posting, consider a Bitcoin-specific sale of some sort.

Bitcointalk

Bitcoin talk is a forum for the discussion of Bitcoin and related topics. Posts gradually fall off the front page as other posts get more recent comments. Commenting to push your post to the front page is frowned upon, so if you feel the need to refresh the topic, think of an excuse to come up with another comment to add. Maybe you have a sale on a particular item, maybe you want to answer someone’s question, maybe you just want to thank everyone for their support. Regardless, the most effective method of keeping your post on the front page is to space your posts out to save material to bump the thread, without seeming like a spammer.

How To Daytrade Bitcoin and Cryptocurrencys

Cryptocurrency markets such as Bitcoin are some of the most volatile trading markets in the world. These provide you with both potential for massive gains, as well as massive loss.  It’s the ultimate high risk, high reward market.

Trade Preparation

Security

Age Day Trading BitcoinBefore even beginning Bitcoin trading, you should ensure that your setup is secure. Nothing is worse than getting hacked and losing all of your money. Enable 2 factor authentication with the exchange you plan to use, and use a unique, secure password that you will remember. Enable 2 factor authentication with your email as well. Additionally, be sure that the system you’re using for day trading is free of malware. If you’re trading large amounts of money, such as thousands, you may want to consider a new computer dedicated to trading for extra security from key loggers.

Finances

If you’re new, and afraid of losses, you can pretend to day trade by using imaginary money, and keeping track on paper. While this isn’t a perfect simulation, as your pretend day trades don’t affect the market like real trades do, it can give you a general idea if you succeeded or not. It’s important to consider how much you want to invest. If you’re new, you may want to start with a small amount. Day trading is quite complicated, and takes a long time to fully learn. Never invest more than you can afford to lose. If you’re young, you can afford to take quite a few risks, as long as you can afford to pay your bills if something goes horribly wrong. If you’re older with a family to support, you may need to be more careful with day trading as you have a lot more responsibility.

Types of Day Trading

Trading Bitcoins/Fiat Currency Directly

Trading Bitcoins for fiat back and forth can be quite difficult for those living in America. Coinbase has higher fees that make it harder to profit when daytrading, as well as not functioning as an exchange. While you may be able to daytrade at some foreign exchanges, you will have trouble withdrawing USD funds, so you’ll need to cash out to BTC, then send it somewhere else such as Coinbase where you can withdraw to USD.

Trading Alternative Coins And Bitcoins

There’s only one thing more volatile than the Bitcoin market-the altcoin market. Some smaller altcoins have seen pumps to over 50x their value within hours. Many others have lost enormous amounts of value over time. This is truly the riskiest market available.There are hundreds of alternative digital currencies all based on Bitcoin. Some have unique features that set them apart from the others, while some simply copy the code and just rename the coin and change a few numbers. The value of an altcoin is often tied to Bitcoin, meaning that if Bitcoin’s value drops, most altcoins lose value as well. If Bitcoin gain’s value, most altcoins gain value. They also have changes of value of their own. For altcoin trading, there are exchanges dedicated to it such as Cryptsy. You’ll generally cash out your earnings in BTC, and if you want, you can cash out to USD or your local currency.

Daytrading TricksHow to trade Bitcoin

Day trading can be complicated, however these tricks should help you stay in the green.

Rationalize changes in value

When a particular coin changes in value, try to consider why it did. If you see a very fast jump in value with no reason behind it, be cautious-it may be a temporary pump followed by a dump. If you see a rapid drop in value with seemingly no explanation, it could be someone selling a lot at once, which could result in a fast recovery. It could also be insider trading though, so it’s difficult to tell what unexplained changes truly mean. Respond at your own risk. If a coin quickly gains or loses value due to an event, consider it’s long term impact on the coin, and why people would be selling. If its something such as a new feature, consider if it would increase outside demand for the coin or not. If it only appeals to those already using the coin, a rise in value may not last.   Also keep in mind that most selling occurs via bots that will sell almost immediately after news goes out, so you’re almost always late, meaning you likely missed the majority of the drop/gains. If you’re truly dedicated to daytrading, there are apps that will set off an alarm if the price of Bitcoin falls below or goes above a certain threshold, allowing you to respond quickly to rapid fluctuations in value.

Avoid Trading While Impaired.

If you’re under the effects of alcohol, or anything else that may reduce your ability to think clearly, avoid trading if possible. You may end up making decisions you regret. If you plan on drinking a lot, you should move all of your high-risk altcoins into Bitcoins to avoid forcing yourself to make a tough decision.

Don’t be Fooled by Market Manipulators

There are many tricks people use to manipulate the market. This includes:

  • Creating multiple tiny buy or sell orders at different prices to confuse humans trying to analyze the market
  • Creating huge buy/sell orders that they remove in an attempt to drive the price up or down.
  • Spreading false information(you should always get your information from credible sources)
  • Spreading fear or distrust in Bitcoin, or extreme optimism

Don’t Let Your Emotions Control You

When money is on the line, it’s easy to get emotional. Don’t let slight losses scare you into instantly selling. At the same time, don’t let denial stop you from taking a loss if you have to. If you can’t take a loss well, day trading may not be for you. If you’ve suffered from gambling problems in the past, you should avoid day trading, as losses may pressure you to take further risks.   Hopefully these tips should help you get started with day trading.

 

Bitcoin Charts

Learn Several Ways How You Can Make Money With Bitcoin

Mining

Mining uses hardware to perform mathematical computations that help secure the Bitcoin network, and rewards you with BTC. For an indepth guide to mining bitcoin, click here

Bitcoin Stocks

How to Make Money BitcoinBitcoin can be used to purchase shares of Bitcoin-related companies. One site that allows you to purchase shares is Havelock Investments. Companies follow a contract in which they make dividend payments to shareholders, much like a real stock. These dividends are usually based on a stated agreement, such as 10% of net revenue. If a company fails to meet their contract, their shares are blacklisted. Keep in mind Bitcoin stocks are not regulated by government, and thus can be a bit riskier. These shares can be bought and sold by investors any time. Buying Bitcoin stocks is easy. Simply deposit your Bitcoins, choose the stock you want, and collect divends. be sure to enable 2 factor authentication to increase security.

Colored coins, which are basically Bitcoins marked for serving a particular purpose, can also be use to issue company shares.

Investing

For an in depth guide about investing in Bitcoin, visit here.

Freelance Work

One of the great things about Bitcoin is that you can receive a payment without needing to disclose personal information. It also has lower fees than Paypal, or other freelance sites that process it for you such as Fiverr. If you have any talents, you can likely make money for it with Bitcoin. Whether its programming, writing, graphic design, video editing, web design, or anything people may see value in, you can likely make money doing it.

Coinality allows you to see job listings that you can apply for, or even publish your own resume. If you post your own resume, it’s highly probable that you’ll be contacted with information about a position. You can also search through job listings for all sorts of different categories, so you can find one you’re qualified for and one you enjoy doing.

Starting Your Own Online Business

Make Money BitcoinThe wonderful thing about the Bitcoin community is that they love to support small business owners that accept Bitcoin. Moolah provides a free, easy to use interface that allows you to open your own storefront, without needing to design your own webpage or register a domain. You can list the products that you’re selling, and prices quoting in your local currency. Moolah enables consumers to pay in a variety of digital currencies.  Moolah allows you to instantly convert to your local currency during a transaction, or to Bitcoin, so you don’t need to be concerned about how your customers pay.

You can sell just about anything that you can ship. Whether its home baked goods, hand drawn art, or anything you can think of that people would be interested in, you’ll likely see success. Once you stock your store, try posting your store to the Bitcoin subreddit, the Dogecoin subreddit, the Vertcoin subreddit, and the Litecoin subreddit. Finding other Bitcoin communities may also allow you to advertise for free. As long as you don’t spam it every day, you’ll likely see overwhelming support for your store.

Opening a store that accepts cryptocurrency is a lot easier than opening one that doesn’t. It doesn’t require full-time commitment either. If you’re only seeing a few sales a day, you can likely develop your product during your free time and work your dayjob during the week. It can be a fun experience as well. Bitcoin enables a lot of opportunities for small businesses that weren’t possible in the past.

Producing Content and Accepting Bitcoin Donations

If you’re creative, you may make some extra money by accepting Bitcoin donations for your work. Whether you make entertaining videos, produce useful software, develop fun games, or create quality music, people may donate to show appreciation. Simple include your Bitcoin address at the end of a video in the form of a QR code or text, or in the description, or on your website, and people may be nice and donate. This can be done in addition to other monetization such as Google ads, so it doesn’t need to be your primary source of income. Don’t try to ask for donations if you’re charging money for content though, as that is rather rude.

Conclusion

There are plenty of opportunities to make money with Bitcoin. If you have a talent, you can likely make money working online, or selling something you create in a shop you open, or by making your digital creations available for free funded by donations. If you’re an investor, you can trade Bitcoin stocks. If you enjoy tech, you can try mining. There’s an opportunity for everyone, and I look forward to future innovation powered by Bitcoin.

https://bitcoin.org/

A Guide To Bitcoin Mining

Mining Bitcoins Directly

Mining Bitcoins helps secure the network. By decentralizing the relaying of transactions, and backing it by computational power, it makes the network more secure. For mining, you earn BTC. Mining uses a lot of electricity, and generates a lot of heat. This is important to consider when choosing to mine. If you live in a hot environment, mining may not be the best idea since it will not only cost a lot to power the machinery, but it will cause the cost of air conditioning to sky rocket as well.

 

Acquiring Hardware

Bitcoin MiningIt is not worth it to mine Bitcoins directly on ordinary computers anymore. To mine Bitcoins, you need to purchase an ASIC.(Application Specific integrated Circuit). While mining used to be possible with a home computer, these devices are thousands of times faster and more power efficient, so mining on a home computer will result in a net loss. The speed of a Bitcoin miner is measured in hashes per second, often denominated in GH/s, or TH/s. When choosing a Bitcoin miner, you should consider the price, how much electricity it uses, and its hashing speed.

It is very difficult to profit mining  Bitcoins directly. Many ASIC sellers such as BFL scam their customers by either not shipping the devices when promised, or not shipping at all. Even legitimate trusted sellers won’t sell their products until they’re no longer profitable. If you wish to estimate how much money you will earn(or lose) mining, there are many calculators online such as http://www.bitcoinx.com/profit/

These calculators take into account many factors such as the cost of the device, the cost of electricity to run the device, and the rising Bitcoin difficulty. The higher the Bitcoin difficulty, the less BTC you will make. As the total Bitcoin hash rate rises due to people buying more devices, the difficulty rises.

It is not recommended that you purchase an ASIC to mine Bitcoins directly, unless you’re doing it for fun. It is an extremely risky investment that is unlikely to succeed, and you’re far more likely to profit by simply buying Bitcoins instead.

 Choosing a Mining Pool

Generally, you want to mine on a pool. Finding a block is extremely difficult, so pooling your mining efforts with others decreases the risk, and ensures you will make money. In a mining pool, you are paid based on how much work your miners complete. There are multiple types of payment systems:

  • PPS(Pay per share): Whenever your miner finds a share, you receive a small amount of Bitcoin. This model provides the least variance, however it often has high fees due to it being risky for the pool operators
  • Proportional: Whenever a block is found by the pool, the earnings are distributed across all miners based on how many shares each has sent before the block was found. This model is not common anymore, as it can be exploited by “pool hopping”, which is switching pools to ones that are early in a round. This makes mining unfair for those that stick with a pool despite luck.
  • PPLNS(Pay per last N shares): The most common form of payment system. PPLNS is quite similar to the Proportional system, however it solves the pool hopping issue. When a block is found, the earnings are distributed according to how many shares each miner has sent within the last N amount. N is generally based on the estimated amount of shares that will be found before a block is found.
  • PPLNS With Block Finder Rewards: PPLNS, but a small portion of payouts, such as 10%, is reserved to finders of a block. Can make mining more fun due to the luck involved, and reduces the risk of a block-withholding attack.

It is also recommended that you join a small-me Bitcoin Mining Hardwareum sized mining Pool. Joining a large mining pool that controls more than 30% of the network is not recommended, as it poses a risk to the security of Bitcoin. Mining on a large pool does not increase profits, it merely decreases variance.

 

Mining Altcoins To Trade For Bitcoins

There are many other digital currencies based on Bitcoin. They often have many differences from Bitcoin. Among these differences, one of them is that many of these currencies can be mined for a profit with an ordinary computer. It is generally much more profitable to mine these coins, and sell them for Bitcoins.
If you own a computer with a decent video card, you can mine any coin with x11, Scrypt-n, or x13 as its proof of work function. These proof of work functions currently cannot be mined by a dedicated ASIC, so a video card is the best means of mining them. There are many pools such as Wafflepool that will choose the most profitable coin to mine for you, and automatically sell them for Bitcoins. Simply your Bitcoin address as your username, point your worker at the pool, and the pool will send to payments to your Bitcoin address once a day or once a week if you meet the payment threshold.

X11 and x13 run a lot cooler than Scrypt-n, so if you’re looking to ensure the longevity of your video card, mining x11/x13 may a better choice. The reduced power consumption also results in the fans being able to run slower, which means less ambient noise in your home.

In today’s market, it isn’t recommended that you build a custom mining rig for the sole purpose of mining if you intend to profit. You can certainly profit mining with what devices you already have, however purchasing new hardware is risky. AMD video cards are generally the best at mining altcoins. NVIDIA cards can mine decently, however not as efficiently as AMD. The reason for this is because AMD video cards contain more stream processors than NVIDIA, and mining is an extremely parallel task.

You may also mine CPU based coins such as Quark or Primecoin, which can be mined on pretty much any computer. You may sell these on an exchange such as Cryptsy for Bitcoins.

Cloud Mining

Many companies offer cloud mining services. They handle all of the hardware management for you, and some are willing to point the miners at a pool of your choice. The advantage to cloud mining is that you don’t need to pay for the electricity costs, you don’t need to deal with loud fans, and you don’t need to setup the miners yourself, which can be a complicated task for some.

Cloud mining is rarely profitable. You generally pay for a certain amount of hashing power and a certain time frame, and receive all of the bitcoins mined with that power. The profits rarely exceed the costs.

 

 

 

 

 

 

 

 

How To Buy & Sell Bitcoins In U.S, U.K, and Austrailia

How Do I Buy Bitcoins?

 

Buying Bitcoins In North America

If you’re from the US, Coinbase is the most reputable way to buy and sell Bitcoins. You connect your bank account, and you can purchase them via ACH transfer. Once you verify your bank account, you can instantly purchase a small amount(currently <$100 USD per week) by a visa credit card. Keep in mind there’s extra fees(3%) involved on instant purchases. After your account reaches level 2(takes a month), you can purchase up to $1000 worth of Bitcoin per week instantly.

Buying Bitcoins In Europe & Austrailia

If you’re from Europe or Austrailia, Bitstamp is the most well known exchange. You also set that up with your bank account, and use a bank transfer to deposit funds. Unfortunately, Bitstamp does not support credit cards. Bitstamp operates as an exchange, so you can either put in a buy order and wait for it to be filled, or fill a sell order for slightly more and finish the deal instantly.

Buying Bitcoins Without An Exchange

 

If you don’t have a bank account or do not wish to use it for purchasing Bitcoin, you can also buy them locally. Localbitcoins.com allows you to buy and sell Bitcoins from others near you through multiple methods such as in person, or by mail. If you choose this method, I recommend choosing a seller with several past sells and a good reputation. I also recommend meeting in a public location such as a park or a cafe.

 

How do I Sell Bitcoins?

 

Selling Bitcoins In North America

If you’re from the US, Coinbase is the most reputable way to buy and sell Bitcoins. You connect your bank account, and you withdraw funds via ACH transfer. Simply send your Bitcoins to the deposit address on your Coinbase account, and use the sell function. If you plan to sell a large amount, such as several thousand dollars worth at once, it may a good idea to contact your bank and let them know where the money is coming from, to avoid trouble.

 

Selling Bitcoins In Europe

If you’re from Europe, Bitstamp is the most known exchange. You can set that up with your bank account, and use a bank transfer to withdraw funds. Note that if you withdraw a large amount, Bitstamp may ask identifying questions such as how you obtained your Bitcoins. This is to comply with KYC(Know your customer) laws.

Selling Bitcoins Without A Bank Account

If you don’t wish to use a Bank account, BTC-e allows for withdrawal to a Visa/Mastercard Debit card. There is a 5% fee. Note that BTC-e is an anonymously operated exchange, so they aren’t as trusted as other websites.

You can also sell Bitcoins locally. Localbitcoins.com allows you to buy and sell Bitcoins from others near you through multiple methods such as in person, or by mail. If you choose this method, I recommend meeting in a public location such as a park or a cafe, for safety reasons.

 

Can I Sell Bitcoins With Paypal?

Paypal doesn’t allow for the trading of virtual currencies, according to their ToS. Additionally, it is very risky. If you sell someone Bitcoins, they may start up a dispute and claim they didn’t get them, and you’ll lose the money they paid you. There is a very high chance of getting scammed through paypal, and they almost always side with buyers, so it is not recommended. If you sell Bitcoins through Paypal, only do it if you know and trust the buyer.

 

What Is Bitcoin?

Bitcoin is a digital currency sent through the internet. There is no company, government, or individual running it; it is decentralized. Bitcoins are sent to and from Bitcoin “addresses”, and are confirmed in “blocks”.

Why Should I Use Bitcoin?

  • Bitcoin is the most secure way of making payments online. While paying with a credit card requires you to share your credit card # with the merchant, Bitcoin does not require sharing any sensitive information with who you’re buying from. Due to its public key/private key technology, making a payment is safe and secure.
  • Bitcoin has low fees. Receiving a payment via credit card or Paypal has fees of up to 3%. As of today, sending money with Bitcoin costs nothing more than a flat fee of about $0.01 USD.
  • Bitcoin allows for privacy. Credit card providers, Paypal, and other networks can track where you’re spending your money, and potentially sell it to third parties for targeted marketing purposes. Using Bitcoin, there is no central issuer or company running it that can see what you’re using it for.

How Keep The Money You Make Investing In Bitcoin Funds And Stocks

Bitcoin and other cryptocurrency markets are some of the most volatile markets on Earth. This gives potential for either great earnings investments, or significant losses. It is important to understand how the market works if you plan to invest in this new cryptocurrency

The market for Bitcoin and Cryptocurrency is a wild one. Decentralized and unregulated, market manipulation is quite common. However, there are a few things you can be aware of that can prevent you from being fooled.

 

Dollar Cost Averaging

One way to invest in Bitcoin and minimize risk is to purchase the same amount of it every day/week. Purchase $10, 20, or $50 worth once a week, and don’t let price fluctuations manipulate your decisions. By doing this, you help prevent your emotions from causing you to make mistakes by establishing a set plan.

 

Avoid Being Fooled By Buy/Sell Walls By Other Sneaky Investors

One trick market manipulators will do is creating a massive buy or sell order. A large buy order gives people the impression it will take a ton of selling to lower the price, and trick people into buying. A large sell order tricks people into thinking it will take a lot of buying to raise the price, which causes them to sell.

After the price moves enough following the buy/sell wall, the manipulator removes the buy/sell order, which allows them to either sell their coins at a higher value, or buy up cheap coins.

 

Don’t Panic

Don’t make sudden decisions the moment you see something happen with Bitcoin. Panic selling and panic buying almost always result in loss. You cannot beat the trade bots, by the time you see a rapid change in value, it’s often too late to get in or out. Think before you buy or sell.

 

Buying low and selling high is the best way to profit. If you see a crash, think about if the event leading to it affects your ability to use Bitcoin. If another Country besides yours bans it, or an exchange you don’t use get hacked, has the Bitcoin technology changed at all?

Avoid buying during rapid unexplained growth of value as well. This likely would rebound backwards, as if nothing changed, it likely isn’t sustainable.

 

Record Your Investment Losses/Gains

In most countries, money earned by any form of investing(Capital gains) is taxable. If you have large amounts of money exiting and entering the bank, it will likely raise a flag to the IRS or your countries government, so hiding gains isn’t plausible. You not only have to pay taxes on capital gains, but you can also deduct what you lost as a capital loss.

It’s important to keep track of your trades not only for tax purposes, but also so you can better manage your money, and evaluate your decisions. By looking back at past decisions and results, you can improve your ability to anticipate markets in the future.