Bitcoin, a trading system invented by Satoshi Nakamoto, is a peer-to-peer system where transactions are verified and recorded in the block chain, which is the Bitcoin distributed ledger. Bitcoin does represents the new frontier in money, as it regarded as the newest, decentralized, digital currency. The reason there was a market for bitcoin is because of credit card transaction fees. Bitcoin is a way to transact while saving on the onerous transaction fees of major credit card companies. Aside from earning Bitcoins through work, they can also be purchased outright with different currencies. Some major companies that now accept Bitcoin as a form of payment include Microsoft, Dell, Overstock and Expedia, to name a few. In a move that gave Bitcoin a lot of credibility, Bloomberg LP, in 2014, announced they will start listing prices from Coinbase on their over 300,000 dedicated financial data terminals. As this new-age system of payments is growing, they are also being traded, on their own dedicated exchanges, much like other currencies do.
Bitcoins can be purchased from individuals directly, and in 2013, the first Bitcoin ATM was installed in Vancouver, British Columbia. These are the 2 safest ways to obtain this form of currency. That being said, there are exchanges where these are actively traded, although buyers should beware, as the fail-rate on transactions is kind of high to foster a true sense of legitimacy just yet, hovering somewhere around 45%. That being said, Coinbase is the best platform for trading if a person has concerns about safety. Generally after making a purchase on Coinbase, the buyer has to wait for the transaction to clear to avoid dilution, identity theft and other problems. Coinbase is very quick to credit Bitcoins to your account, once the transaction does clear.
Mt. Gox was a very popular trading site, however in early 2014 they suspended withdrawls, citing technical issues. By the end of the year, however, they had completely shut their doors and filed for bankruptcy claiming almost 750,000 bitcoins had been stolen. Launched in 2010, Mt. Gox stood for “Magic the Gathering Online Exchange.” Most Bitcoin traders were familiar with this site, but with withdrawal issues plaguing them, Coinsetter, another very popular exchange for Bitcoin trading, was easily able to take over a lot of Bitcoin market share and trading volume, as Mt. Gox was faltering.
Bitstamp is open to anyone who can verify their identity, in accordance with the European compliance standards, and they also have excellent customer service. This might be the hallmark of their success, and their withdrawal settlement times, unlike that of the now defunct Mt. Gox, is right within proper trading range of 2 – 5 business days on settlement. Once a new traders account is verified, meaning they have provided name, address as well as a government-issued ID, they can start trading immediately. This reputable Bitcoin trading exchange is also open 24 hours a day, 7 days per week.
BTC China is yet another very popular exchange, although it should be noted they do cater more to the Chinese market. This is one of the highest volume Bitcoin exchanges in existence, and they are also one of the oldest, established in 2011, and headquartered in Beijing. Bitcoins can be bought and sold using China’s currency, the Yuan Renminbi. Baidu, a very successful Chinese internet search engine, started accepting Bitcoin as a form of payment as this crypto currentcy popularity is quickly growing in China. BTC China offers low fees on withdrawals, less than 1%, and they also have a lot of payment service options.Read More