Intro

What Is Mining Difficulty?

What Is Hashrate?

Mempool

Top 10 PoW Cryptocurrencies

Why BTC Mining Difficulty Is Important?

What Impacts BTC Mining Difficulty?

How to Calculate Estimated Profit from BTC Mining?

Conclusion

Intro

Cryptocurrency mining (especially mining of Bitcoins) can be a very profitable endeavor and bring high level yields for crypto miners on a regular basis. Nonetheless, in order to invest capital and earn an awesome return on investments, one must be perfectly aware of the key mechanics, principles, measurements, blockchain specifications and mine algorithms. One of the defining concepts in the BTC mining of new blocks stands out mining difficulty, which directly impacts the mining profitability indicators. In this particular context, the given blog article describes and analyzes what is mining difficulty of a crypto, the hash power, network difficulty and certainly, what is Bitcoin mining difficulty. Time to start a brief crash course in crypto mining.

What Is Mining Difficulty?

Now, let us approach the topic with the definition of what is mining difficulty. By and large, mining difficulty is a metrics of a blockchain networking system that indicates how it is difficult to calculate and solve a math problem in order to find and verify a new block. The end result of crypto mining is receiving a mining reward for the work performed by the miner. Every crypto miner can be in some sense compared with an accountant, who accomplishes his or her hard work on and on.

What Is Hashrate?

There it goes! Hashrate is the total computational power/capacity of the mining hardware that is functioning with the sole aim of minting or creating new virtual currencies. About three or five years go, the hashrate of Bitcoin was measured in Megahashes and Gigahashes, however, with the increased popularity of Bitcoin and drastic mining difficulty, the most reasonable and salient metrics for solving ultra hard math problems is assigned to Terahashes, Ectahashes and Petahashes. This being the case, you can order the preferred hash power capacities on our Hashing24.com website and customize the power plan in strict accordance with your needs and financial stamina.

With H24, mining of Bitcoins turns into an easy walk in the park. You do not need to purchase any expensive mining hardware or install utility or software tools. Every single aspect of BTC is automated to the fullest and you just reap your mining earnings effortlessly and enjoy your passive income in the first and best-performing crypto Bitcoin. To crown it all, you can trade Bitcoin mining contracts in any direction you want or desire: feel free to dissect and unite contracts and speculate on price swings using the online Trading Room functionalities. It is the one and only unique value proposition on the Bitcoin mining arena and you can calibrate your trading strategies with ease and sleeves down.

Mempool

Mempool is another indicator of the Bitcoin network system that coin holders and virtual currency miners should pay attention to. A Bitcoin mempool encompasses the overall number of TXs that are pending confirmation on the digital ledger. On average, the time lapse from a BTC TX to its appearance in the memory pool totals ten minutes or 600 seconds, respectively. Conversely, when the network grows larger, the volume of TXs waiting in the line grows, and their confirmation time increases. During particularly busy periods, it can take up to a few hourglasses or even business days to give the confirmation to a transaction. 

Each block has its own mempool, and its capacity is possible to be adjusted. A conventional mempool size is just 1 MB. But it can be less or more. Operations that fall into the first MB will be confirmed within about 10 minutes, in the second – within 20 minutes, and so on, that is, the transaction confirmation time increases with each MB. Over the past month, the mempool size has fluctuated from 0.25 MB to 67.8 MB. Before making a transaction, any coin holder can check the mempool load level, for example, on the blockchain.com website.

If the mempool is too busy, and you don’t want to wait all day, the transaction can be moved in the queue, increasing the miner’s commission. The higher the commission, the faster the transaction is processed. Therefore, when the network is overloaded, transactions below the minimum commission simply do not go through. If a user has a small transaction, it is more profitable for him to use second-level solutions, for example, Lightning Network – they bypass the mempool.

Top 10 PoW Cryptocurrencies

The Proof of work consensus obligates participants of a blockchain network to expend their strengths in resolving an intricate cryptographic math task to prevent fraudsters from fooling the ecosystem. Owing to the PoW consensus algorithm in virtual currency mining, the golden standard of all cryptocurrencies Bitcoin as well as other featured altcoins can be processed on a P2P basis in a highly secure fashion, thus omitting the unnecessary third-party involvement. PoW was the pioneer among crypto mining algorithm consensus systems, however other algorithms are making their way in the crypto mining pathways like proof of stake, proof of utility, dpos, dag and lots of others. Nonetheless, let us highlight the top ten PoW cryptocurrencies as sorted by market cap:

–          Bitcoin with a total volume of $2851 billion;

–          Litecoin with a total volume of $604 million;

–          Zcash with a total volume of $87million;

–          Monero with a total volume of $93 million;

–          Ravencoin with a total volume of $11 million;

–          Dogexoin with a total volume of $1067 million;

–          Bitcoin Cash with a total volume of $1547 million;

–          Horizon with a total volume of $16 million;

–          Dash with a total volume of $92 million;

–          Kadena with a total volume of $24 million;

It is not a secret that more and more crypto currency projects are aiming to transfer or transform to other consensus algorithms like proof of stake, for instance. However, that is not the case with Bitcoin or Bitcoin Cash or Bitcoin Gold. The point is that Bitcoin was created with an aim of a decentralized virtual currency, a stor of value, a medium of exchange. It is a great opportunity to mine BTC via the cloud because the hashrate and mining difficulty indicators are rapidly accommodating, that is why now is the best time to get your share of the lumpy BTC pie.

The global involvement with Bitcoin is impressive: it is virtually everywhere and those skeptics who convinced the audience that BTC is just a bubble just keep silent. The digital future of virtual currencies is right under your nose, you just need to uncover the full potential of BTC and enjoy your lifestyle. Crypto influencers like Elon Musk make history with their tweets and managing crypto portfolios has become a daily routine for investors, institutional traders and crypto adepts alike. Just go with the flow and start earning awesome profits with cutting edge and high tech cloud mining with no stopping.

Why BTC Mining Difficulty Is Important?

Let us sort it out. Indeed, the Bitcoin mining difficulty parameter is crucial because an increased difficulty level boosts the security of the Bitcoin network and prevents malicious cyber attacks on the network. In tandem with the BTC hash rate, BTC mining difficulty impacts the key essence of mining profitability of the leading PoW cryptocurrency and, as a consequence, the total cost of the Bitcoin digital asset. Mining difficulty is correlated directly with the hash rate ratio — when crypto miners turn off their mining rigs, the hash rate index goes downward and vice versa.

Most often, as the hashrate increases, so does the value of the coin. But there were periods when the network capacity continued to increase, while the price of BTC decreased or did not grow, and vice versa. For example, in October 2020, the hashrate of the Bitcoin network collapsed, but there was a bullish trend in the market and the price of Bitcoin did not fall. Therefore, although the hashrate and the value of the coin are interconnected, power indicators cannot be used to accurately predict the price, especially in the short term.

The researchers and renowned crypto experts came to the conclusion that the price of BTC and, accordingly, the profitability of mining, lead to an increase in the hashrate within 1 to 6 weeks, but a decrease in network capacity does not always lead to a price decrease. At the same time, scientists did not consider the impact of halvings (the planned halving of rewards for miners). In May of this year, the Bitcoin hashrate reached its maximum of almost 180 EH/s, and in early July it dropped to 84.7 EH/s, which is the lowest since August 2021 and a record drop in network power (by 54%). Now the hashrate is not stable.

In mid-May this year, the difficulty reached its all-time high of 25 trillion hashes. Now it has dropped to 13.67 trillion – this is the lowest figure since the beginning of 2020. On June 3, the difficulty dropped by 28% at once – the largest drop of all time. Such a drop in hashrate and mining difficulty is due to the ongoing war in Ukraine led by the Russian army. In general, mining difficulty and hashrate are important indicators of the health of the Bitcoin network. But for the most part, they only reflect the general trend and state of the Bitcoin market, and cannot be said to influence it.

What Impacts BTC Mining Difficulty?

To your knowledge, the BTC mining network difficulty in the auto mode after two thousand and sixteen hash blocks have been minted and verified in the Bitcoin networking system. The upward or downward curve of the mining difficulty is primarily dependent on the general number of the crypto miners involved in BTC mining as well as their pooled hash power efforts. The Bitcoin network is purely dependent on decentralized and secure transaction verification and validation whereby any person can become a cryptocurrency miner and mine new hash blocks just like that!

If the global Bitcoin hash rate goes up, this testifies that new BTC miners have joined the complex process of Bitcoin minting. The aforementioned participants join the Bitcoin mining community by setting up their mining hardware (be it ASIC rigs, GPUs, or any other devices), henceforth the computational network hash rate increases proportionally. Stemming from this fact, the time necessary to find and verify a new block is shortened as compared with low hashrate. The universal formula is simple: the higher the hash rate, the less time is required to find a block. And vice versa, the lower the total hash rate, the more time consuming it becomes to create new virtual assets.

How to Calculate Estimated Profit from BTC Mining?

Cloud based Bitcoin mining using the leased hashing power rendered by Hashing24 is very lucrative to platform users. However, you should always remember about the risks involving virtual assets, namely a crazy volatility that can either bring sky-high profits or devastating losses. In order to evaluate potential investment risks and project your future earnings involving advanced virtual asset mining, you are free to choose all and any available options to make things happen the way you want. Let us describe two possible ways to project your return on investment with Bitcoin cloud mining services:

–          Demonstrative mining;

–          Profit calculator.

First and foremost, if you want to get first-hand experience with cloud based mining without risking your capital, then you definitely should try free demonstrative mining and get virtual mined coins in real-time. So, how does it work? It is really as easy as one, two, three. You just select the necessary adjustments to your customized demo mining tariff plan and press start Demo mining. The contract will be fully operational within a twenty eight day period: it is absolutely toll free (does not cost a single penny), the contract is workable under real cloud mining market conditions and as a bonus, you will be receiving weekly notification with reference to the mining rewards received from demonstrative mining.

Second, you can take advantage of the free online mining profit calculator. Since you already know what is difficulty in bitcoin mining, then it should not take a few clicks to make corresponding calculations. In order to know your anticipated passive income from innovative and cutting edge mining, it is necessary to select the hash power measured in Terahashes per second, would-be BTC mining difficulty as well as expected Bitcoin’s price mark. What can be easier than this?

Conclusion

At last, this is the final passage of the topic mining difficulty in its broad sense, Bitcoin mining what is difficulty, hashrate of crypto currencies and other kissing cousin themes. After reading this blog article, you can make well balanced decisions with regard to Bitcoin mining profitability, analyze network difficulty parameters, use handy and nifty features to perform necessary estimation concerning the hash rate capacities, price predictions and other categories. Stay tuned for more new and exciting articles pertaining to the crypto and blockchain sector.

The post What Is Mining Difficulty and Bitcoin Hashrate? appeared first on Hashing24.com/blog.

Preface

Basics of Bitcoin Mining

What Is Cloud-Based Mining?

Pivotal Advantages of BTC Mining via the Cloud on Hashing24

Other Features for Managing Crypto Mining Portfolio on Hashing24

Summary

Preface

Cryptocurrency mining without powerful computer hardware turns out to be unprofitable for many crypto miners and it poses serious issues for a regular everyday miner. It is especially vivid with mining of Bitcoins using the Proof-of-Work consensus. To mine BTC profitably, it is obvious that one needs very powerful equipment producing stable hashrate capacities. This is exactly where cloudmining of cryptocurrencies with remotely situated data mining factories comes into the Bitcoin mining arena. This brief informative article will delve into the topic of what is cloud mining, can you trust cloudmining services, and why this new way of mining BTC utilizing leased hashrate is best-in-class decision for crypto adepts. Here we go!

Basics of Bitcoin Mining

Fundamentally, Bitcoin virtual currency mining is the process of minting new coins by solving very complicated math problems that validate transactions on the network. Once BTC is mined or created in the Bitcoin’s ecosystem, it allows an eligible person to receive his or her predefined mining reward. At the date of writing this particular blog article, the current BTC mining reward for solving hash blocks is estimated at 6.25 BTC respectively. After the Bitcoin invention and entrance to global circulation back in 2009, it was mined by conventional desktop computers. Whatever the case, the power of regular PCs to solve mega complex computational tasks is not enough and the consumption of electricity is far beyond compare. Apart from CPU mining, there are the following ways to mine Bitcoins:

–          GPU mining (video gaming industry);

–          FPGA mining with electronic circuits;

–          ASICs;

–          Pools;

–          Cloud based mining of virtual assets.

Judging the above presented list of available Bitcoin mining options, the biggest popularity has been assigned to cloud based mining. If you strive to have a crystal clear idea of what is cloud mining, how to buy contracts for Bitcoin mining and blissfully enjoy daily payouts of mined profits, then keep on reading our article.

What Is Cloud-Based Mining?

Now, we have approached the core questions of what is cloud mining cryptocurrency as well as what is cloud Bitcoin mining. In essence, cloud mining is a smart scheme whereas a person mines a cryptocurrency (Bitcoin, for instance) using the leased hash power produced by remote crypto mining data facilities. In this mutually beneficial cooperation, a person does not need to purchase very expensive ASIC miners, maintain, update and upgrade software, pay utility bills, etc. because the reputable and respected cloud mining online website service provider takes all the effort in handling all the mining routine and guarantees unstoppable mining with no power blackouts, internet disconnection. What is Bitcoin cloud mining per se? It is an innovative and tech-savvy way to mint new Bitcoins therefore omitting the obligation of purchasing or owning high cost mining rigs. There are actually several models of cloud mining, particularly:

–          Leased;

–          Hosted.

The former cloud mining sample presupposes that the hash power for calculating extremely difficult hash puzzles is being rented by a person from a respectable company (for instance,  American based or Europe based), whereas the cloud mining site server acts as a mediator between the client and the mining facility headquarters. A customer gets his or her portion of the farming company’s overall revenues without racking brains over maintenance works, utility bills, software troubleshooting or overheat issues The latter model posits that a crypto miner is capable of ordering mining soft ware configurations within the scope of the geolocated premises. This scheme grants crypto enthusiasts absolute managerial functionalities over their newly minted cryptos. Both models are passable for particular reasoning and initiatives.

Pivotal Advantages of BTC Mining via the Cloud on Hashing24

Now you have a multifaceted vision of what is BTC cloud mining, its models and why mining through the cloud is trending nowadays. But the topic is broad by its nature and scope and requires certain discussion panel boards with cutting-edge cloud BTC provider Hashing24. The aforementioned firm is in the top 10 list of best performing and longest standing Bitcoin cloud service providers and has earned its reputation on the market due to its impeccable and scrupulous approach to doing fair business. The salient U-turn in the developmental stage of Hashing24 took place after the fruitful partnership with one of the largest Bitcoin mining conglomerates Bitfury. As the story unfolds, Bitfury is the key supplier of hashes for H24 and its influence is unrivaled.

It is obvious that Hashing24 is an absolutely reliable and trustworthy spot because all the mined virtual currencies are virgin new and no empty blocks are validated (hence there are no stale shares thus far). The corresponding venues are concentrated in the most adequate geographical locations like Iceland, Canada, Norwegian regions, etc. Apart from BTC cloud mining, people can order free Demo mining plans and get convinced that this way of investments and passive income generation is for real and it is profitable for many people interested in blockchain based technologies and innovations. Relevant to H24, you can effortlessly calculate your estimated profits from BTC mining via the cloud. The instrument labeled Mining Calculator is absolutely free of charge and allows all website users to project future earnings from mainstream services.

Going further, the hashrate volumes you can buy (order) on the platform are mammoth and you can customize your mining plan in full sync with your personal and financial needs. Mining Bitcoins has never been easier and Hashing24 makes mining of the first crypto truly accessible worldwide. You can pay for a mining contract that is operable from one to 3 years. This is an amazing opportunity you should not miss because the value of BTC grows annually and the total supply of Bitcoins is limited. The mining via the cloud is initiated virtually instantaneously — minimum efforts on your part and the world is your oyster.

Other Features for Managing Crypto Mining Portfolio on Hashing24

In tandem with super fancy BTC mining contracts, the Hashing24 platform grants an exclusive access to the Trading Room functionality. Traders can speculatively buy and sell mining contracts like orders (buy and sell) — a perfect counterpart of a typical crypto trading platform. The Trade Desk adds more flexibility and liquidity, that is why traders can build and hone their own trading strategies or HODL any time they want.

The top-up and withdrawals of funds are very easy and do not require cumbersome waiting. Deposits can be executed in BTC, popular fiat currencies like EUR and USD, region-specific currencies, bank transfers and other e-payment methods. It stands to reason that withdrawals can be made in BTC and the commission is very low.

Summary

To cut a long story short, you can enjoy an exclusive right to mine BTC via the cloud and forget about troublesome noise, overheat problems, outdated ASICs, and the rest of the fuss and buzz. Hashing24 can handle all the technical and boring stuff for you — make the digital revolution happen today.

The post What Is Cloud Mining Bitcoins? Is It Profitable? appeared first on Hashing24.com/blog.

Intro

What Is Bitcoin?

Why Do People Invest in BTC?

Important Factors to Consider Prior to Purchasing Bitcoin

Where to Buy Bitcoin and Other Altcoins?

Alternative Venues for Purchasing Bitcoins

How to Purchase Bitcoin Online?

Conclusion

Intro

Whatever the case, the pioneering Bitcoin cryptocurrency has demonstrated its meteoric growth for over 14 years and it is widely used as a means of payment in every corner of the world. At the date of writing, its total market capitalization is valued at $574,256,564,779 and occupies the first place in the crypto charts. The people’s involvement with Bitcoin as the “golden digital standard” is all conquering: some people are affected by its gigantic volatility and they speculate on crazy price swings, some use it as a store of value in order to boost and diversify their financial portfolios, while others are mesmerized b its decentralized nature and anonymity. One way or another, the best performing cryptocurrency has firmly made its path in our lives, however the problem outlined as “how can I buy some Bitcoins and where to do this fast and safely” is bothering the minds of millions of people. Let us briefly discuss the issue “how can I buy Bitcoins” and provide some basic recommendations on where and how to do this.

What Is Bitcoin?

It is needless to describe the popularity of the BTC crypto in our days, but one thing that is worth going in to more detail is the concept of Bitcoin. Let us step it up and get to know it closer. To put it clearly, Bitcoin is a virtual currency that operates on a P2P basis using the blockchain technology without any centralized issuing or controlling authority. Bitcoin’s creator, Satoshi Nakamoto, made it available to the wide audience back in 2009 and since then, it has become the trend-setter in the crypto universe. The crypto uses the Proof-of-Work consensus algorithm to mint new coins into mass circulation. The minimum unit of the Bitcoin cryptocurrency is named after its creator, — Satoshi. The circulating supply of Bitcoins is limited to 21 million units and roughly every four years, the mining reward for minting new BTC coins reduces by half in order to avoid inflation. The key features of Bitcoin that attract all the interested people from all around the world are:

–          Decentralized nature;

–          Privacy as well as fundamental fungibility characteristics;

–          Highly speculative digital asset;

–          Relatively fast Bitcoin transaction processing due to the implementation of Lightning Network;

–          Excellent financial portfolio diversification because Bitcoin is viewed as the golden standard in the world of crypto;

–          Buying and selling Bitcoins has become an easy walk due to its widespread use, popularity, hype and accessibility;

–          Hard capitalization and limited supply;

–          Irreversible transactions and anonymity;

–          Great liquidity and network scalability;

–          Highly resistant to censorship and control by the governmental bodies.

Why Do People Invest in BTC?

Undoubtedly, there is something mesmerizing in crypto investments, especially choosing Bitcoin as the main financial portfolio diversifier. A few decades ago, everyone was mad about stocks, gold, metal, oil, futures, bonds, derivatives and so on and so forth. Now the trending investing position has been occupied by decentralized virtual currencies, whereas the youngsters are overwhelmed by Bitcoin and altcoins fueled by inevitable social media driven future perspectives. The greater the people’s involvement in cryptos, the more the Bitcoin market capitalization expands and its value is on the rise. Here is a short list of the main reasons why people decide to make a step forward and get in to the realm of BTC and other virtual assets:

–          Speculative perspectives. The cryptocurrencies are volatile by their nature and it brings endless opportunities to make incredible profits in a short time;

–          Due to its programmed scarcity, Bitcoin is oftentimes used as an inflation hedge to secure investments;

–          Many people like the very trend of Bitcoin and they purchase, sell and swap (exchange) crypto to stay mainstream;

–          Educational purposes. People are amazed by the blockchain based technologies and want to get to know about the digital ledger, immutability, storage, online exchanges, crypto wallets, online crypto payments and P2P BTC purchasing;

–          The BTC mining market is overburdened with propositions to make passive income with cloud based BTC mining. A decade ago or so, solo BTC mining for beginners was very easy and it was possible to mine BTC with a regular desktop PC. However, the situation has drastically changed and crop adepts flocked the cloud based mining sector. Stemming from this, people invest in BTC mining to earn passive income and multiply their gains in the due course of time.

Important Factors to Consider Prior to Purchasing Bitcoin

Before investing your capital in purchasing Bitcoin or any other blockchain based coin or token, it is a prerequisite to conduct a scrupulous investigation and get prepared in advance. This is of utmost importance because this way, you can avoid scam projects, problems with regulators and taxation. save, protect and multiply your investments, store, HODL and transact freely crypto in any direction you deem it is necessary, among others. The more you know and the greater efforts you take with precautions, the smoother your crypto experience will be. Let us get started with outlining the key factors before buying crypto.

Choosing Exchange Service

There are virtually hundreds of crypto exchange service providers offering to buy Bitcoin and altcoins at fair prices like Coinbase, Binance, Switchere, Paybis, Kraken, etc. However, you should decide which crypto exchange or trading platform you are about to use for purchasing crypto, at the same time paying special attention to website usability, fees, exchange directions, licensing, regulation, security, customer loyalty programs and genuine customer reviews.

Security

Use secure Internet connection networking in your everyday business life. Never use public internet connections for your financial transaction processing and/or deal striking. Besides, make sure to check if the site’s architecture and infrastructure are well protected and your user account will not be compromised in any event. Always get familiarized with the security and privacy policies of the service provider and ascertain that offline crypto wallets are deployed by the chosen provider. Anyhow, if the private keys are not yours, you are at risk of losing your money at any moment. Check out is the website implements two factor authentication (two step verification), inactivity logout periods, wallet addresses whitelist. The more you know, the more you can control the process of managing your cryptocurrency portfolio.

Fees

By all means, the fee structure and policy can play a pivotal role in choosing a reliable brokerage firm to buy Bitcoin online. The crypto exchange services charge different commissions for their services, varying from deposits and withdrawals to trading and liquidation fees. In fact, this is the budget forming income for crypto trading platforms. Different providers charge fees depending on their reasonability, secure architecture, personnel involvement, legal stuff, salaries and business integration policies and marketing strategies. Nonetheless, always double check the fee details and make your own calculation after your order payment because certain platforms may charge unreasonable hidden fees with an aim of making additional profit. Let us demonstrate how different platforms charge for their service provision:

The figures are presented for illustrative purposes and may slightly differ. However, as you may judge from the commission details, the percentage can greatly differ from one exchange to other conditioned by geography, legislation, usability, greed and trademark recognition.

Ease of Use (UI and UX)

The final decision to use a particular platform to buy, sell or swap Bitcoin or other virtual currency may be greatly impacted by the smart ease of use of the exchange services. The majority of companies invest tons of money into developing a user-friendly interface with intuitive navigation and multilingual website localization. Of particular interest is a nifty mobile application made available by progressive crypto platform for a toll-free usage. They may contain versatile price alerts, charts, graphs, order books, built-in account balance features as well as staking, lending, borrowing, Bitcoin cloud mining services, instant crypto-to-crypto swaps, just to name a few.

Versatile Payment Methods

A wide choice of available payment options for buying the first and most popular decentralized asset is astonishing. A person can choose the most preferable way to pay for his or her crypto purchases or online sales, starting from conventional VISA, Maestro, Mastercard, American Express, Electron bank cards (credit, debit, prepaid personalized and non-personalized cards) ending with region-specific payment methods, e-payments and wire transfers. It allows for more freedom in managing and controlling the financial portfolio and it factually boosts the liquidity of the crypto industry. For illustrative purposes, let us view the number of available payment options in different crypto exchange platforms:

As far as you can observe, the difference rate is paramount and it is also worth getting familiarized with the trading pairs available for instant buy and sell orders. The thing is that the richer the choice of crypto trading pairs, the more liquidity it can bring to you and your trading strategy. As of lately, a lot of crypto trading platforms started to issue their own branded crypto card for online payments with real time conversion rates on the Internet. The more a platform can offer to its users, the more attractive it becomes to crypto beginners and seasoned professionals alike. Finally, crypto oriented sites add more and more features to their sites with an aim of attracting new users, among which are staking, P2P lending, over-the-counter desks, DeFi projects and NFTs, just to name a few.

Licensing

In view of the increased interest in crypto transactions, anonymity, decentralized nature of blockchain technologies by fraudsters, terrorists, scammers and cyber criminals, the situation dictates that the activity of crypto trading and exchange platforms must be regulated to a certain extent. The more platforms report about their turnover and transaction activity, the less the risk of being deceived by companies with poor reputation. Each licensed and regulated exchange values its brand, trademark and reputation, therefore the risk of scams and unlawful user account manipulations is minimal. The list of popular regulated and licensed crypto trading providers is as follows:

By and large, regulation by authorities and licensing are the signs of a mature approach to business running and iti s purely customer oriented. In fact, regulation does not allow certain governments to avoid applied political, economic and military sanctions and keep on laundering money using the blockchain based technologies.

Taxation

Whatever the case, it is your obligation to know what tax laws are applicable in this or that jurisdiction. The crypto market is largely not regulated, whereas in some countries like China all crypto related operations are banned.

Where to Buy Bitcoin and Other Altcoins?

For experienced traders and newcomers to the crypto industry alike, crypto trading platforms offer a paragon of useful instruments to buy and sell crypto using the trading engine. Traders submit buy and sell orders in the order book and speculate on price swings. For those who want to experience greater risks in crypto investments, a lot of crypto trading platforms like Kraken, Bitfinex, HITBTC, Coinbase and alike offer margin or leveraged trading. To buy Bitcoin with a crypto trading platform, it is necessary to fund a user account and place a buy order (market or limit).

For over five years or so, online cryptocurrency exchange platforms have taken the plunge and are one of the most popular venues for purchasing Bitcoin and other altcoins. You may wonder why it is so? The answer is pragmatic: buying Bitcoin turned out like an easy walk to a shopping center. At the onset, it was even redundant to register an account and go through KYC verification. The main beauty of online crypto exchanges was ease of crypto access and simple user workflow. However, in due course, when the regulatory compliance became stricter, the GDPR, CCD and AML policies were implemented to eliminate any chance of fraudulent activities.

Case in point, over-the-counter trading allows to move large amounts of money without using public order books on crypto trading platforms. This option is suitable for high volume single traders and institutional traders. The minimal entry point may start from a few hundred thousand dollars and the only limit in this case can be the starting capital. A lot of wealthy whales use OTC trading to sporadically transact millions of US dollars worth in crypto.

In its turn, decentralized P2P cryptocurrency exchange platforms like LocalBitcoins allow to strike deals for buying and selling BTC and altcoins without involving third-parties.

Alternative Venues for Purchasing Bitcoins

The ways to purchasing BTC are not limited to trading platforms, online exchanges, OTC trades, or P2P exchanges. There exist a lot of other methods to buy Bitcoin online. One of the most popular ways to get some crypto near your house, workplace, etc. is Bitcoin ATMs. You can insert paper cash in the slot and purchase or sell Bitcoin in real-time. Nonetheless, using ATMs for purchasing crypto is rather costly due to service charges associated with the ATM exchange. The average fee for buying BTC at Bitcoin ATMs is more than eight percentage from the total amount (by contrast, online crypto exchanges charge from four to five percentage respectively). Nonetheless, Bitcoin ATMS can be found in all popular venues like hotels, airports, stores, gas stations, etc. As of today, the United States of America are the leaders in installed Bitcoin ATMs.

As of recently, PayPal has made it available to US residents to buy crypto. Unfortunately, the rest of the world does not have access to the option of buying crypto, which is why its spread and popularity are rather slow paced. Another drawback of PayPal is that a user cannot transfer crypto outside his or her PayPal account. To crown it all, there are very few crypto exchanges that support PayPal as a payment gateway.

Different brokerage firms offer their services including the purchase of Bitcoins and other popular cryptocurrencies. However, the Bitcoin purchases via the brokerage firms are unprotected by insurance. A person may buy futures contracts on BTC and trade the coin right there.

How to Purchase Bitcoin Online?

Let us describe how to buy Bitcoin using different examples. For a starter, we can begin our crypto journey with online crypto exchange platform Switchere. To buy Bitcoin online using your credit card, simply register an account with the Switchere crypto exchange and complete the basic verification tier. The onboarding process will take from 10 to 30 minutes. Once registered and verified, you can use the widget form to enter necessary pay-in details like the amount you want to convert, the payment method and your crypto wallet address. Once you check all the order details and make a corresponding payment, you will receive Bitcoins to your crypto wallet. Alternatively, you can download the Switchere mobile app and purchase BTC using your smartphone.

Regarding the purchase of BTC on crypto trading platforms, let us take Binance as an example. You do the same as with any online crypto exchange: register an account and get verified. Set up your account security options and deposit some funds to your user account. Once your balance is topped up, you can use the trading dashboard and submit orders to buy crypto. Likewise, you can buy BTC using your regular credit card similar to online crypto exchanges. In general, the mechanism of buying BTC is very similar with the rest of payment alternatives. But it is important to take into consideration that you have to store your crypto assets in your personal wallet, preferably in cold storage in order to avoid cyber hacks, blackmailing, account manipulations, or unsanctioned use of your balance.

Conclusion

Drawing closer to a conclusion, be sure to investigate the topic prior to making any financial decisions and do not invest more than you can afford to lose because cryptocurrencies are extremely volatile and you can either gain or lose money in a matter of seconds. Stay tuned for more useful articles on our official blog and join the crypto mainstream today!

The post Dilemma: How Can I Buy Bitcoin and Other Cryptos Online? appeared first on Hashing24.com/blog.