Author:Vishal Doshi
Date:02-11-2017

What do you mean by Bitcoin ?

Bitcoin is a digital currency. It is a cryptocurrency which is not regulated by any individual organization. Bitcoin trading uses cryptography system. It works under Shared Ledger technology popularly known as a “Blockchain.” Satoshi Nakamoto is the founder of the most popular digital currency in the world today. Bitcoin is a reward for the business popularly named as “mining.” The ticker symbols of Bitcoin are “BTC” and “XBT.” The most compact amount of Bitcoin is a “satoshi.” 1 satoshi= 0.00000001 BTC.

How to trade in Bitcoins?

  • You can send your Bitcoins to anyone you want. The location of the sender or the receiver does not matter.
  • You do not require the involvement of any third party to complete your transactions. The cryptocurrency trading lets you escape restrictions on anti-money laundering (AML) act.
  • You need an internet connection and a Bitcoin address. It will take your time to access online transaction to finish the process.
  • If you have an account in some traditional bank, you can get Bitcoins directly on your Bitcoin address. But, to “fetch” your Bitcoins, you have to go online.

How can I find a reliable Bitcoin exchange?

  • The exchange should be trustworthy. The exchange should not misuse the funds of its customers. You should be able to deposit and exchange the Fiat money whenever necessary.
  • You should be able to access it from anywhere. You must be aware of the cost of every transaction. A bitcoin exchange with good market knowledge and high-level of cash-flow is the first requirement of any bitcoin trader.
  • There are many reliable Bitcoin Exchanges trading in the market, namely, Coinbase, OKCoin, Bitstamp, Bitfinex, Kraken, etc.

How can I receive my personal “Bitcoin Address”?

  • To receive a Bitcoin[1] address you need to download the Bitcoin Client. Two of the most well-known bitcoin clients are Multibit and Bitcoin-qt. You will get minimum 10 Gigabytes of free space on your hard drive for the blockchain if you download Bitcoin-qt.
  • It is a “formal” client. Whereas, Multibit is an insignificant version of the Bitcoin client. Bitcoin addresses are “pseudo-anonymous,” which means that the real identity of the bitcoin address holder and the location of the operators are unseen for safety reasons.

Which are the different types of Bitcoins wallet available in the market?

  1. An Online Wallet:
    • Online Wallets[2] are useful for buying bitcoins faster. You must store less quantity of bitcoins in Online Wallets.
    • Although, your bitcoins are not safe in Online Wallets.
    • The hackers constantly try hacking it.
    • It is more reliable to store your bitcoins on your personal computers.
    *Best available Online Wallets are CoinKite and Blockchain.
  2. A Paper Wallet:
    • Paper Wallets various sites to create a personal key and reprint it on a paper.
    • It gives you safety because fraudsters cannot operate your bitcoins without the paper with the private key print on it.
    • But, it is very troublesome to carry the paper wallet whenever you approach trade bitcoins.
  3. A Hardware Wallet:
    • A hardware wallet offers you the service of connecting an outer device that will ask for a password every time you want to trade your bitcoins.
  4. A Hot Wallet:
    • A hot wallet needs an internet device.
    • The personal key is available on the electronic tool that you already possess, like a computer or a phone or a tablet.
    • But, you may lose all your bitcoins if you lose your tool.

What are the advantages of investments in Bitcoins?

There are many advantages of investing your money in the world’s biggest cryptocurrency of bitcoins.

  • Trading bitcoins is not very expensive compared to other cryptocurrencies. The transmitting transactions are completely free of cost. But, you can pay a small cost to process the transmission quicker.
  • The amount of bitcoins does not determine any cost. Only the size of the data determines the amount of the transaction cost. 500 bytes data transaction is 0.0001 BTC expensive.
  • Bitcoin trading offers very conventional money transfer services. You neither need to follow regulations under anti-money laundering (AML) nor do you require third party confirmation for transfer of your money.
  • You cannot reverse the digital currency[3] transactions, but they are fully under the security. It is very much beneficial for the traders. There are almost no risks of frauds. The sellers can create more sales and earn more, by providing their products at lower rates.

What are the different ways to buy bitcoins?

  • You can buy bitcoins from the auction sites as well. Some of the auction sites charge you premium money to avoid frauds in the trade of the bitcoins and similar cryptocurrencies[4]. You can also purchase bitcoins by meeting the trader in personal. There is an official website to search for Bitcoin traders in your area, and that is localbitcoins.com.
  • There exist many exchanges in the market; some offer better trading options while some have better relations with the banks for deposits through bank wire. Many exchanges also offer better options for withdrawal.

Which are the different trading instruments for Bitcoins?

There are different Bitcoin trading instruments available for the investors who want to invest in bitcoins and earn immense profits.

  1. Bitcoin graphs:

    They provide you charts to study the market history of price fluctuations of the bitcoins.

  2. Bitcoinmarkets reddits:

    Newcomers, learners as well as traders with good experience can take guidance through trading systems and programs.

  3. Cryptowatch and Bitcoin wisdom:

    You can go through live price figures of all vital exchanges available in the market for the trade of Bitcoins.

  4. Trade View:

    You get a good platform for a whole community for trading and sharing ideas.

Why should I purchase “Bitcoin CFD”?

  • The purchase of CFD-based on cryptocurrency is a smart decision rather than buying a cryptocurrency. CFD is more practical option for a trader. The investor has an opportunity to earn the differential amount exiting between the ongoing and the subsequent bitcoin prices.
  • For Bitcoins trade, the higher the differential value, higher will be the profits. CFDs also have a similar formula. But, CFDs provide temporary trading opportunities because of the lower spreads. There is no necessity for considerable price fluctuations for CFDs to persist positively.
  • While trading with CFDs, traders can approach the multiplier. It works like a loan. It allows the trader to take money for a particular trade. But, there are equal chances of earning and losing the big amount, using multipliers. Investing in CFDs using multipliers is very risky.

What is the meaning of the “Bitcoin Index”?

  • Bitcoins currency value depends on the three most important currencies of the world. They are US Dollars[5], the Euro[6], and the Chinese Yuan[7]. Valuation of bitcoins is known as “Bitcoin Index.” A trader should not depend on any of the single currencies mentioned above. The original value of bitcoins depends on the currency value of all the three countries.
  • You need computers. You also need to learn the programming language to trade Bitcoins. It is an available online cryptocurrency. Bitcoins are intangible currency. To trade bitcoins from one trader to another, you require electronic codes having cryptocurrencies.

What do you mean by “Blockchain technology”?

The blockchain technology is getting popular among both the private and the government sectors. The blockchain technology is the best known for the cryptocurrency market. It is also popular in other areas of the business market. The cryptocurrency which is getting all the benefits of the blockchain technology is “Bitcoin.”

What are the different terminologies to understand Blockchain technology?

  1. Block:
    • A blockchain is a database that you find in a scattered formation. Its list is growing without any gaps. Each of the database records is known as a block.
    • It is a public register of all the bitcoin transactions taking place in the market. The blockchain is continuously growing as more and more accomplished blocks are taking place in the registration record.
    • In the blockchain technology, each block adds to the chain of business and fixes itself in the sequential order. A block permanently records the bitcoin transactions.
    • You can find a timestamp along with the linkage of the former block in every single block. It maintains uniformity and persistence. No one can remove or change the former blocks because of the act as persistent records.
  2. Peer-to-peer Network:
    • There exists a network of computers in connection to each other, working through the internet. It is known as a peer-to-peer network.
  3. Node:
    • Every computer of the peer-to-peer network is known as a node.
    • All the nodes process the transactions because they are the important part of the whole blockchain system. Every node has a duplicate version of the blockchain.
    • The duplicate version verifies every occurring transaction.
  4. Encryption:
    • Using the encryption process is important. The bitcoin traders get full security because of the encryption, to avoid any frauds in the blockchain system.
    • You can update the available data whenever necessary, and it takes very less time. You can share your most precise data using encryption.

The allocation of funds should not be under the manipulation or dominance of anyone. Hence, the blockchain system is very important, because, it fortifies the currency to work without the involvement of any central organization or any single official. The Blockchain Company is also known as “blockchain.info” is a software company that offers services of bitcoin explorer and bitcoin wallet. The blockchain.info is the most well-known bitcoin wallet in the world.

Why should I trade Bitcoins using the “eToro Platform”?

In the year 2018, eToro has become the most popular platform to trade cryptocurrencies, especially bitcoins. To invest your funds in bitcoins, you do not require to have too much of practical knowledge. You do need technical knowledge while trading bitcoins with exchanges.

How can I join the “eToro Platform” for Bitcoin Trade?

You can sign up on the “eToro Platform” very quickly. Follow some simple steps.

  • Click on any official link available for eToro website.
  • Create your account by filling the necessary details of your full name, Username, E-mail, Password, and your phone number.
  • Click on the button to verify that you agree to the terms and conditions of the eToro Platform and also that you agree with the terms of the User License Agreement.
  • Click on the Start Trading box.

You cannot alter your username after signup. We recommend you not to use any private forgery information, because, the regulation of eToro platform takes place in the USA and Europe. The websites such as eToro which are under strict regulation go through regular audits. Hence, there are full chances of accounts with fake personal information of names, phone numbers or addresses get shut. If you are a user from the United Kingdom, you have different deposit rules. To become the client of eToro broker, you need to deposit 5,000 dollars. In the UK, eToro is under the regulation of FCA by “eToro (UK) Ltd.”. You may have to communicate with them, to become the client of eToro. By depositing less than $5,000, you can only be a trader in “eToro (Europe) Ltd.”, which is under the regulation of CySEC in Europe.

How can I deposit funds on the “eToro Platform”?

You have to follow few simple steps to deposit your money on the eToro platform:

  • First, you need to sign up and create your account or log in to your already existing account.
  • Click on the “Deposit Funds.” (You will find it in the left to start at the bottom).
  • Now set the currency, method of payment, and the amount that you want to deposit. Click on the “Submit” button.

*We recommend you to deposit a big amount of money, only after the proper verification of your account.

How can I withdraw funds from the “eToro Platform”?

You have to follow few simple steps to withdraw your money on the eToro platform:

  • Go to the left menu and click on the “Withdraw funds” button.
  • Set the amount that you want to withdraw.
  • Click on the “Submit” button.

*Withdrawal Conditions on the eToro platform:

  • You cannot withdraw more than 50 dollars on the eToro platform.
  • You have to pay 25 dollars on all your withdrawals here.
  • You can withdraw your money within five working days, on the eToro platform.
  • But, nowadays, traders have complaints about withdrawals taking too much of their time.
  • We recommend you not to withdraw lesser amounts if possible as it will cost you more.

How can I purchase bitcoins on the “eToro Platform”?

  • The eToro platform works differently from other available online brokers and exchanges. Buying bitcoins on the eToro means starting a “Buy trade.” When you buy a certain amount of bitcoins, you generate trade for that particular amount.
  • When you buy some more bitcoins, the eToro will generate a different deal. You will have records of all your buy trades, each time you buy bitcoins. The eToro broker does not collect all your trades as the balance amount.

If you want to open a “Buy Trade,” follow few simple steps:

  • Find the “BTC” in the search bar
  • Click on the “TRADE” button (It will show you the trade menu)
  • Choose the buying amount
  • Click on the “Open Trade” button.

You can trade only up to 200 dollars on the eToro platform. Hence, we recommend you to have a balance of minimum $1000 or more to trade with eToro, or you would not be left with money to trade separately

How can I sell bitcoins on the “eToro Platform”?

You have to “Close” the “Buy” trade to sell the bitcoins. For that follow few simple steps:

  • Go to the left menu
  • Click on the Portfolio button
  • Click on the “BTC” button
  • Go to the right-hand corner and click on the “X” to close the trade

*If you click on the “Sell” or the “S” button, eToro will generate a new sell trade.

What are the charges to trade the cryptocurrency on the “eToro Platform”?

  • The eToro Trading Platform charges high amount of fees to open a “Buy” Trade. You need not pay any fees to close the trade. You can earn money in a Sell trade when the prices of the bitcoins reduce. It is known as “shorting bitcoins.”
  • If you want to keep the trade open on the eToro, you have to pay a charge on a daily basis. Let us understand the “Spread” to understand the trading charges on the eToro platform. To start trading Cryptocurrency, on the eToro platform, you pay the price higher than the price prevailing in the market. Such differential amount is known as a “Spread.”
  • In case of more flexible price rates, there will be more trading charges. There are no daily charges if you want to start a “Buy” trade on the eToro platform, because, you already possess the asset that underlies.