What is a Bitcoin?
Bitcoin is a cryptocurrency which is basically in layman’s terms: Digital Money
Bitcoin has become popular since the past year now after it got a big boom when it hit $1000 from a very small amount where most of the new big whales/investors invested big on it and saw the future for their returns.
Bitcoins are normally encrypted which helps the holder of the same to stay anonymous and at the same time stay safe while sending/receiving.
Why use bitcoins? Are they safe? What’s the risk level/ Returns?
To answer the first question, bitcoins are very safe, actually safer than our normal bank accounts which actually can be easily tracked by higher authority. In case of bitcoin, however, the only individual who can track/view the balance of your own wallet/ID is you.
In this guide, I will show you how you can create your own wallet without an ID (if u want) or with ID/Pan/Adhaar on some online websites so that you could start investing in BTC (bitcoin) as soon as possible.
What is a Bitcoin Wallet and Bitcoin Address?
To store bitcoins you need a bitcoin wallet. It is easy to create a bitcoin wallet.
I will show u two ways in which you can do that:
The first way is the legit way where you will upload your ID proof on the website so that you get a wallet where you can immediately sell/receive bitcoins to your bank without any issues.
The second way is the way where you make a US-based BTC wallet where no ID or Proof is needed and you can instantly create your own bitcoin address, the only catch being that you can sell/receive from your friends or bitcoin traders only. This requires a bit of time since finding such people may sometimes take time if you are not familiar with such people who are involved in daily BTC transactions but this also ensures that you are not tracked by your own government or any other authority but yourself and that everything you do is un-trackable and also 100% safe.
Creating Bitcoin Wallet
Legit Way – Visit Zebpay (Android/iOS App Available)or I would highly suggest checking out Koinex( No app available). Visit these websites and go to Sign-up and create your very own bitcoin wallet address and complete all the security measure such as SMS Codes and OTP and even fingerprint check on your Android/iOS devices for maximum security. After that’s done, you are ready to send/receive and even BUY Bitcoins from the community present there without the need to do much since you have already uploaded your ID Proof. You can also send/receive normally via friends/traders as well.
Other Way (Recommended)- Visit Blockchain, create a free US wallet and fill up all the info. Remember to input US address ( google for pin codes and state, city etc). After that is done, complete the OTP, SMS and fingerprint setup and you are good to go. You are ready to send/receive bitcoin just like any regular user.
After you have successfully created your bitcoin wallet, you can click on SEND/Receive to send/receive bitcoins. It’s as easy as that, however, you will be paying a short fee to the miner( more on this later) when you are sending bitcoins to another wallet.
NOTE:- DO NOT SHARE YOUR WALLET ID( SIGN IN ID) WITH ANYONE, SAME GOES FOR YOUR PASSWORD AS WELL.
Miner’s Fee in bitcoin
Miners are normally those who use a PC or specific mining rigs (Antminers) to mine Bitcoin. Mining is a process where the system decrypts the ongoing bitcoin transactions which are in codes which are encrypted by the blockchain network which safeguards the transaction to not get tracked. This is done by the PC/Antminer that the Miners (Individual or a farm) handles manually or automatically via the main server somewhere locally stored. Fees vary from time to time, sometimes it’s on cents and sometimes it’s higher when the price is not stable. This generally happens when BTC is rising at a higher scale than it normally does.
In a legit way, you can directly buy bitcoins with 1 click from the official websites that you are using (zebpay, koinex etc) after you have successfully created a wallet by providing your ID proof and all the other related documents. In this process, buying and selling become very easy and you can day trade BTCs every day and make a good amount of profit as well. This would require you to examine the market properly.
Once you have studied enough and have a feeling of the next drop, you can immediately start buying at lower prices and then hold it for some time before selling the same. Now there are 2 ways to do that:-
First, is the short-term trading, where you trade BTC every day. You buy at a lower price and sell at slightly higher prices after few hours( This is happening right now cause of the ever-changing value of BTC, reason being instead of months or years the change is happening in weeks/days now and its become easier to day trade in short term than long term and maybe even clear your own dues in your life or cover your daily expenses with it as well).
The shortcoming of the Legit way is to provide them your id but what you get in return is flawless service and quick buy/sell support, as well as quick, withdraw to your bank account as well when you are in need of money.
Now comes the other way, which is the blockchain method. Here you buy/sell from your friends. If you want to buy BTC, you pay the amount via your local currency using Paytm, bank transfer, Gift cards, or other equal value of service which is accepted by a huge group of people/traders). Steam keys is another famous example of a medium used to buy/sell bitcoins. In fact, it is the most used method of payment after paytm/bank transfer. So find someone who is in Bitcoin trading or there are groups on facebook out there where you will find legit traders who will sell/buy BTC for real money/gift cards/steam wallet or steam skins or csgo keys.
Here, the shortcoming is that you cannot quick withdraw to your bank account cause you haven’t added any bank accounts and you also cannot since blockchain does not have that option. You only SEND/Receive tabs where you can send/receive BTC only. They have recently added ETH wallet as well.
A while back, blockchain even added UNOCOIN to their list from where blockchain users can buy Bitcoins directly into their blockchain wallets, but this, in turn, will get you to the legit part where you will be re-directed to the UNOCOIN site and you have to make a new account, upload documents and buy bitcoins.
Hence the choice is entirely up to you in which way do you prefer to start your investment with.
Short-term Bitcoin Trading
After you have bought some BTC from either way(legit or other), download the app on your smartphones and keep tabs on the price when you are on the go or at work. If you are on PC and are at your home/office keep tabs on the price.
When you think the price is good enough for you to make some quick money, immediately sell them and make some easy profit. If you, however, see the price going down, DON’T PANIC. This is where many newcomers lose their minds, thinking that they might have done a big mistake investing in BTC. Bitcoin is highly volatile and the changes that happen are sometimes either a boon or a curse. It can go both ways but always keep this in mind, that when the price goes down, instead of Rage Selling them to cover up your investment, HOLD IT. Holding the coins you have, will in the next day help you make up for whatever you lost in the previous day.
Your MAIN JOB here is to know when to HOLD and when to SELL. Once you have this figured out, then everything else will fall in its place and you will be making a good sum of money that you couldn’t have at your own real-life job in a month. You will be making good money maybe as much or maybe even more (depends on how much you invested in 1 GO) than your monthly salary at work.
PRO TIP– Invest whatever you want to in 1 GO, do not keep reinvesting at different price levels (higher) cause this will lead to diminishing returns.
Example- You bought 1 coin suppose at 9800$ and now next day price went up to 11000$, now if u buy at this price you are already paying more 1200$ worth of BTC for 1coin in itself. PLUS, on top of this, you would be making a lesser profit than what you could have made if you would have invested this same amount during your 1st investment yesterday. Be smart about this, you will not get a second chance while investing. So make sure, when you are investing, you are doing it at 1 GO.
Buying again is only recommended when you see the price falling or bubble bursting after the highest peak. You do that, you make double the profit on top of your initial profits. This is what i would highly recommend to everyone. So keeping an eye out for the balance everytime is a MUST.
Long-term Bitcoin hoarding
Now, we are finally here on the main thing which all of us are interested in.
At the time of writing this article, bitcoin has reached a peak of 9800 USD dollars already which is a pinnacle in itself. To reach this value from what it was a few years back, no one would have imagined that it would become this popular among such diverse group of people. Those who had the dream or had the experience knew it from before and hence they bought all those 100 or 1000s of coins way back in 2010 or even before that ear when 1 BTC/Coin was equivalent to 1 dollar ONLY. Can you imagine the people who bought 1 coin for 1$, what would their wallet be worth right now? Their 1$ has now turned to 9800$ guys, and this is just for 1 coin. Some even have 3 to 4 digit coins so yeah this is just the tip of the iceberg for all of us, newcomers, here.
A group of people somewhere near you have told you continuously every year to start investing in BTC, but we never paid any heed to them cause we either did not know about the technology nor were we interested cause there were no commercials running on TV or ads popping up somewhere around us about it. Then why should we, right?
It is still not too late, even at a 9800$ price, you can easily invest a good sum of money and keep it in your wallet and let it mature in itself. There will be ups and downs which is very common since its a very VOLATILE currency in itself but the Return On Investment (ROI) will be huge in itself since this is the future of payments. Banks are already feeling scared about this technology and they feel that this might? Kill them in the long run. Who does not like to be free or not to be controlled by some central entity? Right? Bitcoin wallets are your own wallets, you control it and no one else does. YOU ARE YOUR OWN BANK.
So, the guide is at its end, and I hope I was able to make you understand the basics of bitcoin and bitcoin trading.
Mining has not been included in this guide, the reason being from where we are, power bills are costly and our beloved government has started branding people “Terrorist” those who have imported the AntMiners S8 and alike. Some are held up in customs and some of them who imported tons of units are been sent mails to attend the court to get their miners back from the customs offices.
So, that’s all for this guide folks, we hope that we were able to guide you newcomers to the world of bitcoin and also show you the future that it holds at the hands of the holders themselves, being us.
Stay tuned to tech Syndrome for more future content regarding Bitcoin and if it becomes feasible to talk about mining, then you can expect us to cover that as well.