This article discusses in detail about cryptocurrency mining, cryptocurrency mining rig, cryptocurrency mining software, and hardware, how mining work, main requirements for cryptocurrency mining, what is bitcoin mining, what are the main function of bitcoin mining, how to mine bitcoin, cryptocurrency mining impact on the environment, mining calculators and FAQ’s in the end
What is Cryptocurrency Mining?
Cryptocurrency mining is the method in which the verified transactions between the users are verified then added to the public ledger of the blockchain.
By this process of cryptocurrency mining, new coins are generated and then added to the circulating supply of that coin, for example by Bitcoin mining the newly produced Bitcoin will be added to the circulating supply of the Bitcoin network
The process of crypto mining makes cryptocurrencies unique and decentralized as there is no central authority controlling the mining process and everyone can contribute to the mining of the coins and produce new coins
One must know that all the cryptocurrencies do not rely on mining, the cryptocurrencies that are based on mining are known as Proof of Work coins and the cryptocurrencies that are not based on mining rather they rely on staking mechanism (cryptocurrency Staking) to verify their transactions are known as Proof of Stake coins
What is cryptocurrency mining? Source, Youtube: 365 Careers
What are Cryptocurrency Miners?
Fiat currencies are printed by the governments under very strict rules and policies, no one other than a state agency of any country is authorized to print its fiat currency, anyone else trying to print some fiat will find himself in prison
But in crypto, you can mine as much coin as you can. you need to have specific hardware and software for cryptocurrency mining to start doing the process.
Cryptocurrency miners are the one who uses application-specific integrated circuit (ASIC) hardware to run the mining algorithms with particular mining software like MultiMiner, EasyMiner, CGMiner to verify the blockchain transactions and then add those transactions to the blockchain public ledger and receive rewards in the form of newly created coin
Bitcoin miners will receive rewards in Bitcoins and Ehtereum miners will receive the reward in Ethereum and so on
How Cryptocurrency Mining Work
When a person send any cryptocurrency to the other user, the coins are sent safely and the transaction is recorded on the blockchain forever, this whole method works because of cryptocurrency mining
A miner is a node in the way that secures transactions and builds them in blocks. With every transaction received all network nodes checked for their validity. Later Miner nodes get those transactions from the storage pool and assemble them into the block
The first step in mining a block is to hash each transaction extracted from the storage pool individually.
To be regarded as a valid output, the block hash should be less than the certain target value, which is defined by the network protocol.
The target also realized as hashing difficulty is usually set by the protocol to guarantee that the price at which new blocks are produced prevails consistent and proportionate to the number of hashing power designated to the network.
Every moment new miners enter the network the competition rises, the hashing difficulty rises. The hashing difficulty drops when miners migrate from the network
If a valid hash is found, the founding node sends the block to the network. All other nodes check whether the hash is valid and in this case, add the block to their copy of the blockchain and continue mining the next block.
What Are The Main Requriment For Cryptocurrency Mining
The main requirements for the mining cryptocurrencies are
Cryptocurrency Wallet
You need to have a cryptocurrency wallet where you can put your coins after mining, ever crypto coin has different wallets, wallets for bitcoin will be different from the wallet of Cardano because the coins are built on a different blockchain. Coin built on similar blockchain can have same wallets, for example, You can use Ethereum wallet for all ERC20 tokens that are built on Etehereum blockchain
Cryptocurrency Mining Rig
Mining has become a complex thing. Few years before people were able to mine with their computer processing units (CPU) or graphic cards (GPU) and were able to generate profits from mining, These days you can do the same from your PC’s but the profit is not guaranteed and to be honest, it is now almost impossible to get profits from PC mining, You need to have an application-specific integrated circuit (ASIC) as your cryptocurrency mining rig.
ASIC’s are specially built for mining purpose only, these machines can mine cryptocurrencies at a very fast rate and can give you profits in mining, but on the other hand, they consume a lot of electricity and need a cooling system for proper operation
Cryptocurrency Mining Software
The software required for crypto mining will surely change according to the hardware you are utilizing for mining. The software to mine any coin on CPU will no doubt be different from the software to mine any coin on GPU or ASIC
For GPU Mining you can use EasyMiner. It also supports ASIC mining
Miners that only mine by themselves are sole miners, any reward earned by solo mining belong to that particular miner.
Nowadays mining any coin with only CPU or GPU is not worthy as mining has become more complex and advance, but you can earn some profits using ASIC hardware, or you can join a mining pool to increase your mining power
Mining pools are the pools where a group of miners is gathered and such pool gives you the ability to combine your mining power with the other members of the pool and this helps you to increase your hashing power and members get a bigger chance to win the block rewards. Any block rewards earned in a mining pool are then shared proportionally among the pool members
The other basic requirement for crypto mining is a 24/7 connected internet connection.
Cost of Electricity
Before starting any kind of mining you must fully calculate your cost of electricity. the ASIC rigs consume a lot of energy as they are working 24/7 to mine blocks, ASIC connection to the Blockchain must not be intercepted so they need a very consistent supply of electricity
Countries, where electricity is expensive mining cryptos, is not a good option because of the large number of electricity bills you will receive at the end of the month
Countries like Argentina where electricity is very cheap can be the best place to mine cryptocurrencies if governments of such countries allow you to mine cryptos
if you are using ASIC as your mining rigs you need to have some kind of cooling system to cool down these ASICs. As these mining rigs are running all day and night, they not only utilize a lot of energy but also generate a large amount of heat, it is very much essential to keep cooling your machines by any cooling method you adopt for them so that they can keep mining for you
What is Bitcoin Mining
In cryptocurrency mining the most favorite cryptocurrency to mine is Bitcoin and the process by which new bitcoins are produced by solving complex mathematical problems with the help of bitcoin mining hardware like ASIC run by bitcoin mining software like CGMiner, MultiMiner is known as bitcoin mining.
What are the Functions of Bitcoin Mining?
There are different functions of bitcoin mining, some of them are
With mining bitcoins, new bitcoins are issued, In traditional currencies Governments and Bank issues and print currencies but in the world of digital currencies, new coins are generated by mining or staking. The miners are rewarded with new bitcoins they generate every ten minutes. The reward issuance rate is permanently set in the Bitcoin mining system code so no miner can cheat it to earn extra rewards. Miner user ASIC devices to mine Bitcoin by solving the complex computational mathematical problems to produce new bitcoins
With the Bitcoin mining process, Bitcoin miners confirm the transaction in the bitcoin blockchain. When any transaction is included in the block, only then that transaction is supposed to be perfect and secure. That is because when the transaction is included in the block only then it is added to the bitcoin blockchain otherwise the transaction is considered incomplete. The more the confirmations for any payment the more secure and reliable the transaction is
In bitcoin mining, miners also secure the bitcoin network, by making it difficult for the hackers to attack, they also don’t let the exchange of transactions between the senders and receivers to stop or change. The only way by which any bitcoin transaction can be changed is by having network hah power of more than 51%. but as in the bitcoin network, hash power is shared among many different miners from different regions of the world making it almost impossible for the hackers to gain access to 51% of the hash power. This mechanism makes the bitcoin network secure and non-vulnerable to hackers
Bitcoin mining is a very broad topic, mining of bitcoin is getting difficult day by day, its not easy and nor convenient for any person to just start bitcoin mining. There are big mining firms like BitMain, F2Pool, and others that have taken almost control of bitcoin mining. However, the main steps in bitcoin mining are
You need to have bitcoin mining hardware commonly known as the application-specific integrated circuit (ASIC). The best in the industry are Bitman Antminer S9, Dragonmint T16, Avalon6, AvalonMiner 741 and many more
Then to run that hardware you need to have Bitcoin mining software that will run this hardware just like windows run your PC. The best Bitcoin mining software areCGMiner, MultiMiner, BFGMiner, BitMinter, Miner-Server, EasyMiner, Awesome Miner and many more
You need to connect to some of the mining pools that because mining pools are pools where a group of miners is gathered and such pool gives you the ability to combine your mining power with the other members of the pool and this helps you to increase your hashing power and members get a bigger chance to win the block rewards. Some of the mining pools are Poolin, F2pool, BTC.com, Antpool, ViaBTC, 1THash&58coin, Slush. BTC.top
You need to have a Bitcoin wallet so that after mining your bitcoin you can transfer your newly produced bitcoin to your wallet. the best bitcoin wallet in the form of exchanges are Coinbase and Binance exchange. Best for safety is Trezor and Ledger Nano S. Best for Desktop is Electrum and best online is blockchain.com
You need to have 24/7 Internet connection
You need to have some kind of fully functioning cooling system
You need to have a proper supply of electricity
Cryptocurrency Mining Impact on Environment
Cryptocurrencies mining harms the environment. There is a calculation that cryptocurrency mining can create 5-13 million tons of global carbon discharges.
The cryptocurrency mined produce four-time CO2 emissions as compared to the amount of energy generated by energy sources in Canada
A report by Coinshares Research Institute show that 81.4% of cryptocurrency mining plants are using electricity that is being made from renewable resources while the remaining 19.6% get their electricity from nuclear plants and fossils
The large scale miners are located in Iceland, Georgia, New York, Northern Scandinavia and Pacific Northwest, the locations that largely use renewable energy
The cryptocurrency mining produced nearly as much CO2 as 1 million cars in the identical time
According to de Vries, a single Bitcoin when mined absorbs a similar quantity of electricity required to provide a UK house for 63 days, 781,455 Visa transactions, or 62,765 minutes of video streaming at Youtube.
Cryptocurrency Mining Calculators
Before starting mining you need to calculate your profits, your profits will depend upon the hash rate you are getting from your mining hardware, the fees you are charged from your mining pool and the cost of electricity you will pay in the form of bills. Many calculators will help you to calculate your mining earning. some of them are
There are endless cryptos that you can mine, But here is the List Of best Cryptocurrencies to Mine
Bitcoin
Ethereum
Litecoin
Bitcoin Cash
Bitcoin SV
Monero
Zcash
Dash
Ethereum Classic
Komodo
Dogecoin
Bitcoin Gold
Sia Coin
Bytecoin
Verge
Grin
Beam
Syscoin
Aeon
Ravencoin
Digibyte
Frequently Asked Questions
What Is The Main Purpose of Cryptocurrency Mining?
The main purpose of the cryptocurrency mining is to produce new coins and add them to the circulating supply of that coin, to keep the coin blockchain network consistently working by validating transactions and avoiding the network from hacks and getting stagnant
Is Cryptocurrency Mining Legal in your country?
Before starting any kind of mining process, make sure that do your government allow you mine cryptocurrency. The rules of mining vary from government to government. Some countries will allow you to mine while others will not. You need to double-check your countries laws before starting mining to avoid penalties
Is Cryptocurrency Mining Profitable?
The profitability of mining will depend upon what kind of hardware you are using for mining, what kind of hash rate you are getting, the fees of the mining pool you have joined, the cost of electricity in your country and the price of the coin you are mining, to be profitable in mining you need to have multiple mining rigs and you should mine more than one cryptocurrency
How to Mine Bitcoin on Andriod and iOS?
There are apps on android and iOS that will let you mine bitcoin on your mobiles but what do you think you are going to make, a penny or little more than that in one year because the hardware of mobile is of no match in front of the specially designed ASICs machines specifically built for mining. So truly do not even think of mining bitcoin with your mobile phones, it’s of no worth at all
Can I Mine Bitcoin on My Laptop or PC?
The positive answer to this question is that you can mine bitcoin on your laptop or Pc but the negative and true answer is that mining bitcoin on your laptop or PC will earn you nothing. You cannot compete with ASICs mining hardware with the hardware of your PC or laptop. So do not waste your efforts on mining bitcoin with your PC and Laptop
Binance exchange review 2020 is a comprehensive review on Binance, the review explains the basics of Binance exchange with the help of tutorials, images, videos, and useful links, You will find Binance Exchange Key Points, How To use Binance, How to Trade on Binance, How to deposit and withdraw from Binance, Binance Fees, Binance Supported Cryptocurrencies, Binance staking, Binance Lending, Binance Launchpad, Details about Binance Projects like Binance US, Binance Dex, Binance Jersey, and Australia and much more, Its not just a review its a mini encyclopedia on Binance
Even if you haven’t bought any cryptocurrency yet, chances are you’ve learned about Binance exchange.
Binance exchange is one of the most famous crypto exchanges with 300,000 above daily active users, founded by Changpeng Zhao in 2017
The Malta-based cryptocurrency exchange is often recognized one of the best crypto trading platforms for daily trading volume and the user has access to more than a thousand crypto trading pairs being traded on Binance
Binance exchange is also increasing its scope for deposits and withdrawals with fiat currencies and the platform is only likely to continue to grow.
If you’re thinking about joining the Binance exchange read our in-depth detail review first. It is not just a review, it’s a mini-encyclopedia on Binance exchange.
We have made a step by step guide for you
What is Binance?
Binance is a crypto exchange platform that allows users to buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, and hundreds more.
Although the company is now headquartered on the European island of Malta, the project was founded by Chinese citizen Changpeng Zhao (CZ) in 2017 in China, but after the ban of China government on crypto projects, the exchange moved to Malta.
Binance Jersey and Binance Uganda, Binance US, Binance Australia were recently opened to enable crypto trading between Fiat and Cryptocurrencies
In less than two years after the launch of the Binance exchange, it has grown into one of the largest cryptocurrency exchanges in the industry.
The platform has more than $ 2 billion in cryptocurrency trading activity every day.
Binance was primarily just a crypto-to-crypto exchange, meaning it was not involved in deposits or withdrawals from Fiat currencies.
But the platform now offers support for bank account and credit card deposits and withdrawals
Binance exchange announced last year that the company wanted to launch the world’s first blockchain bank in Malta.
The platform also signed a memorandum of understanding with the Malta Stock Exchange to facilitate crypto trading in digital securities.
Binance Exchange Key Points
More than 1000 supported cryptocurrencies
Highest trading volume, more than 2 billion dollar a day
Binance exchange is capable of processing 1.4 million order every second
Users can access Binance Launchpad that list new cryptocurrencies projects on binance exchange and users can participate in initial exchange offering (IEO) of these new projects
On Binance Lending users can hold their cryptocurrencies to earn interest
Launch of Binance Jersey, Binance Uganda, Binance US, Binance dex and Binance Australia
Other than spot trading Binance has margin trading and future trading for its customers
Competitive crypto Trading fees and fast Support team
Signup to Binance.com and save upto 5% of Fees
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Signup to Binance.US
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How Binance exchange work
Binance exchange work like any other traditional stock exchange by allowing it users to buy and sell cryptocurrencies, due to its large volume of trading assets, high security and excellent customer support, Binance has become an attractive place for traders and investors
Not only Binance offers spot trading but Binance exchange is also offering margin and future trading of cryptocurrencies
The maximum leverage on margin trading is 1x to 5x and leverage trading on futures starts from 1x and goes as high as 125x
How to use Binance
Using Binance exchange is very simple, it has a very user-friendly interface and everyone can trade on Binance exchange easily
The whole process of how to use Binance is explained in several steps:
How to open an account on Binance exchange
How to deposit cryptocurrencies on Binance exchange
how to trade on Binance
how to withdraw from Binance
How to open an account on Binance exchange
Opening an account is extremely simple,
First, go to Binance exchange home page and click on Register
A window will appear as shown below, simply give your email and password. Verify your email by going to your email account and that’s it you have made an account on Binance exchange
Step two is setting up your account security
Binance exchange takes security very seriously as cryptocurrency exchanges are the most favorite target for hackers, Binance will ask you to set-up two-factor authentication.
This can simply be done by installing a Google Authenticator on your phone, you can also set up two-factor authentication by The YubiKey
You can also set up two-factor authentication by SMS authentication
These security measures are extremely essential for the security of your account
After setting up the two-factor authentication
The third step is to verify your identity on Binance exchange
If you want to withdraw more than 100 Bitcoin per day than you have to verify your identity but if your daily withdrawal limit is below 2 bitcoin than you do not need step 3
To verify your identity on Binance exchange first log in to your account
Then go to “Security” from the above tab
Then click on “Verify your identity” from the left sidebar
Then click on “personal” or “enterprise” as shown below
Click on “Personal” if you are an individual and then give all the required information that includes
Basic info
Require your name, residential address, country, and other basic info
ID info
To verify your identity the next step is to give your ID info
You can provide your ID card, Passport or Driver license to complete this step
After selecting an option from above you can take photo of your identity verification document or you can upload the front and back image of your proof of Identity card
Facial info:
Once your ID is submitted for approval the next and the last step is to provide your picture
To pass this step you need to take a photo of your facial image withholding an ID card, passport or driving license in your hand or you can upload your image while holding your ID
Once all the above steps are completed your Identity verification completion will take a day or two and you will be notified by email
How to deposit cryptocurrencies on Binance exchange
It’s a very easy process
You can fund your account with your credit card, bank transfer or you can simply transfer any cryptocurrency like BTC, ETH, etc from your wallet or any other crypto exchange to Binance exchange in some steps
Go to your dashboard
Click on Deposit
A window will appear as shown in the image, you can select any cryptocurrency you want to deposit in your Binance account, and in the above image, we have selected BTC
You can use the bitcoin address as shown in the image to send funds to this address from any other cryptocurrency exchange like coinbase or any other wallet you have to your Binance BTC deposit address
Simply copy your coin address and paste it on any other crypto exchange or wallet from where you are withdrawing funds to get your coins on Binance exchange
Always remember do not deposit any other Funds than BTC to your particular Bitcoin Deposit Address
Sending any other coin to your BTC address will result in the loss of that coin as every coin has its unique deposit and withdrawal address
How to trade on Binance exchange is a relatively simple question if you have any basic knowledge of cryptocurrency trading.
We will guide you with a completely with the help of images
After depositing funds in your Binance exchange account go to the “trade” option
There you will see four option
Basic
Advance
Margin
Futures
Select the “basic” first
A window, as shown above, will appear
On the right-hand side of the screen shown above, you can select a tab from BTC, BNB, ALTS or USD@
From this list you can choose any crypto pair you want to trade, whether you want to trade in BTC/USDT, BNB/ETH, OMG/ETH, etc whatever pair you want you can select from these four options
BTC have BTC pairs like BTC/ETH, BTC/ADA and much more BNB have bnb pairs like BNB/OMG, BNB/ONT and much more
You can also create a list of favorites by clicking on a star shown against any pair
Once you have selected your pair for trading like BTC/USDT, on the above image you can see that the prices in the red are the prices that people are willing to sell and prices in the green are the prices people are willing to buy. The last sale price is shown in the middle of the sell and buys prices
On the image above trade, history is shown at the right side of the screen, trade history is the list of trades that have been completed
After all the above explanation now you can place your order, the first option that is selected by default is “Exchange” its also Spot Trading
Now from the above window, you can manually enter a price you are willing to purchase or sell any crypto trading pair you want to trade, but a better way is to click a number on the buy or sell orders placed on the left side of the screen.
After selecting your order type and placing the order you will see all you open orders that are not filled in open order section and once they are completed you will see them in your order history below the open orders section
Advance:
The advanced window of Binance exchange will look like
All the features of the Binance advance are the same but the placement of these features are different; the process of making orders is the same
Margin Trading on Binance Exchange
Now after the “Exchange” section next thing you will see is that there are options for Margin and Futures as shown below
Binance exchange gives you the feature of margin trading, for margin trading you need to open a separate account within Binance exchange, which can be done with a couple of clicks
Margin trading on Binance gives you leverage to trade up to 5x but such type of cryptocurrency trading comes with bigger risk and beginners must not do margin trading unless they have a sound knowledge of cryptocurrency trading
Below video explain how to start margin trading on Binance
For Binance future trading you need to open another account within Binance exchange that will be specifically for futures trading, which is very easy to setup
Binance future trading gives you the ability to trade Binance futures with leverage up to 125x
But future trading is very risky with great profits very big significant losses can come; you must not start future trading until you are a trading professional
Binance futures fees
Binance futures fees depend upon how much amount of bitcoin you are trading on monthly basis and the amount of Binance coin (BNB) you are holding, the whole Binance futures fees schedule is shown in the image below
How to withdraw from Binance
Withdraw from Binance can be done in a number of steps
From the above tab from the “wallet” option select “Spot wallet” option
Now select “withdraw” option from the left sidebar, a window will open as shown in the image below
Now from the “coin” option select any coin you want to withdraw, on the above image we have taken BTC as an example
Now enter “Recipient BTC address”, the address of the wallet or crypto exchange to which you want to withdraw from Binance
Then enter the amount of Bitcoin cryptocurrency ( or any coin you are withdrawing)
Below the amount option, you will see the minimum amount to withdraw, transaction fee and what you will get after deduction the transaction fee
Then Click on “submit”
Then enter the two-factor authentication code that you will receive when you will click submit
Then go to your email and verify your withdrawal request
Now after this has been done you will see your withdrawal request in “Recent withdrawal History” as shown in the image below
Wait for network confirmations; normally it takes 15 minutes to 1 hour for any deposit or withdrawal transaction to be completed
Binance Main Topics
Binance Fees
Binance normally charge 0.1% fees for every single trade you make, e.g. if you buy any coin you will pay 0.1% and when you will sell that coin you will again have to pay 0.1%
But Users that hold Binance coin (BNB) or users that have a large volume of trading can become VIP members. The Higher VIP grade you have the lower Binance fees you will pay
But if users are paying their Binance fees using Binance coin buy holding BNB in their accounts they can get 25% discount on every trade
Below image fully explain the Binance fees structure
Binance Lending
Binance lending is the feature of Binance exchange where users can hold there crypto assets like BTC, BNB, USDT, etc and earn interest
Whether you are a holder of cryptocurrencies or trader that want a break from crypto trading, the Binance lending feature allows you to get gains to form your holdings, no matter how much the cryptocurrencies market moves.
Users can start using Binance Lending by going to the “Earn” section from the above tab of the Binance exchange and then clicking on “Lending”. Every cryptocurrency interest and term differs from other
Staking is a process where users can hold cryptocurrencies in their particular wallet, and as a result of holding funds in wallets you are rewarded for holding these coins
For e.g, if you hold ontology in your wallet on Binance exchange, then after every month you are paid with ONG coin
Every cryptocurrency staking reward and staking period is different from another
Which coin Binance exchange support for staking?
Currently, Binance exchange offer to stake in the following coins
NEO (NEO/GAS) Hold NEO and you will get the GAS coin
Komodo (KMD)
Algorand (ALGO)
Qtum (QTUM)
Stratis (STRAT)
Ontology (ONT/ONG) Hold ONT and you will get ONG coin
Vechain (VET/VTHO) Hold VET and you will get VTHO coin
Stellar (XLM)
How to Participate in Binance Staking?
Simply deposit any of the coins that Binance staking support, hold it on Binance exchange and start earning staking rewards
Does Binance charge any fees for staking?
Binance exchange does not charge any fees for staking
Can I trade the staking coins?
Yes you can trade the staking coins but when you trade your staking coin for another you staking balance will change and so will you staking reward for that day
Binance Supported Cryptocurrencies
What Cryptocurrencies does Binance Support
There are so many cryptocurrencies that Binance exchange support, mentioning every one of them is not possible because it’s a huge list. Major supported crypto coins by Binance exchange are Bitcoin, Ethereum, Cardano, Ripple, Litecoin, Ethereum Classic, Ontology, Vechain, Binance coin, Dodge, Tron, Stellar Lumens, Neo, Tezos, Basic attention tokens and many more
All the cryptocurrencies on Binance have trading pairs against, BTC, ETH, BNB, and USD@
You can see the complete list of Binance trading pairs by visiting Binance markets
By going to Binance markets, On the search option write the name or symbol of your coin, for example, write ontology or ONT and then see what trading pair of ONT you are interested to trade
Whether you want to trade ONT against BTC/ONT, ETH/ONT, BNB/ONT, USDT/ONT or PAX/ONT
Simply write the name of your coin and select its trading pair you want to trade
Binance exchange has everything for you
Binance Security
Security is a top priority at Binance
Binance exchange has invested unlimited hours and big resources to ensure that the Binance exchange platform is protected from bad actors by integrating big data analytics and AI technologies to prevent Hack attacks.
Binance exchange has worked with various cybersecurity and compliance companies in the blockchain space to prevent data breaches.
With an organizational level commitment to preventing unauthorized activity and increased security Binance exchange can create a more secure environment for cryptocurrency investors.
Only because of such top-level security and the large volume of trading, Binance has become most favorite of exchanges for the crypto community
How to increase the security of your Binance account
Following tips are very important to protect your binance or any other cryptocurrency exchange account
Always use 2-factor authentication, it’s a must for your account security, most preferable is google 2-factor authenticator
Always use a very strong password and try to keep changing your password over time
If using API always use necessary steps to secure your account
Install antivirus from a popular source and keep your antivirus updated
Always make sure that your internet connection is safe
Always use a secure password manager
Always use unique emails for each of your accounts on crypto exchanges
Try to identify phishing attempts and avoid them
Always check the list of devices that are authorized to access your exchange accounts
Read in detail in-depth about the security measures of your Binance account
SAFU the term most used by the Binance founder and CEO Changpeng Zhao, Binance SAFU are the Secure Asset Fund for Users (SAFU) introduced by Binance in 2018.
The SAFU is a reserve fund that if Binance experiences a hack then SAFU funds will be used to compensate Binance users.
The SAFU fund is financed with 10% of all trading fees generated by Binance.
Binance platform was hacked in May 2019. The hackers were able to withdraw 7,000 Bitcoin, which market value at that point was over $ 40 million.
The good news was that the platform used the SAFU funds to compensate its users, and as a result, Binance customers didn’t lose a single penny because of the theft.
The customers by this gesture of Binance exchange started to trust the crypto exchange more and its business grew more even after a big hack
Binance Customer Support
Binance exchange offers some very fast and reliable customer support, it’s one of the main features because of which the exchange is loved and trusted
The support team is very committed to solving customer quires as fast as they can
on Binance exchange support you can submit a request of your problem, read FAQ’s, Beginners Guide, API Documentations or join there community
Binance Exchange App
Does Binance have an app?
The answer is yes. Binance offers an app for trading
With Binance crypto app you can
Trade cryptocurrencies easily on your mobile
Strat crypto lending and crypto staking using Binance crypto app
Do margin trading from your mobile
Start leverage trading from Binance app and much more
Binance USD
What is Binance USD?
Binance USD is Binance backed stable coin that is 1:1 backed by the US dollar. Binance USD is issued with the partnership of Paxos and is approved by the New York State Department of Financial Services (NYDFS)
How do I get Binance USD?
You can get BUSD by Purchasing Binance USD with fiat currencies on Binance exchange
You can convert stable coins PAX, USDT, USDC, TUSD to BUSD
You can trade Binance USD, a variety of trading pairs are available on Binance exchange against BUSD
Just like local bitcoin, Binance has launched its P2P trading service by which consumer can directly purchase BTC, ETH, BNB, and USDT from the consumer (C2C) or business to consumer (B2C) on Binance peer to peer trading platform
Binance peer to peer currently has Vietnamese Dong (VND) Russian Ruble (RUB) & Chinese Yuan (CNY) for buying and selling Binance coin (BNB), Tether (USDT), Bitcoin (BTC) and Ethereum (ETH)
This service is currently available on Binance app and many more fiat currencies are expected to come in future
The founder and the CEO of Binance exchange Changpeng Zhao has a following of four hundred and seventy-six thousand on CZ Binance twitter and growing every day
He is a man of his words and a strong leader, leading Binance exchange perfectly
Binance US was Binance’s response to U.S. regulations that prohibit citizens in the US from trading on Binance exchange
The main points are:
Binance US has compliance with rules and regulations of US
Users can use USD to buy cryptocurrencies directly on the exchange
Binance US has a trading pair of BTC/USD, ETH/USD, XRP/USD, LINK/USD, BNB/USD, BCH/USD, USDT/USD and you can see more on https://www.binance.us/en/markets
User can link their bank accounts directly to the Binance exchange
Binance US was launched in September 2019 and supports about 20 cryptocurrencies but many more are expected to be added to the exchange in the future
Users can transfer USD from their bank accounts by their debit or credit cards to Binance Exchange account via wire transfer or ACH.
Binance US fees Schedule:
By default, the fees forever trade is 0.1% per trade but the if you hold Binance coin (BNB) in your account or you are a trader with trading with the large volume you will get discount on fees
25% discount is available to users who hold some Binance coin (BNB) and are willing to pay their trading fees in Binance coin
The complete schedule of Binance us trading fees are shown in the image below
Users from the following states are prohibited to open Binance US accounts:
Louisiana
Florida
Georgia
Hawaii
New York
Texas Vermont
Washington
Alabama
Connecticut
Idaho
North Carolina
Sign up for Binance US
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Binance Jersey
Binance Jersey is for users who are not US citizens and want to buy cryptocurrencies against Euro and GBP
The main points are:
Buying and selling cryptocurrencies with USD and Euro
The crypto trading pairs on Binance Jersey are
BTC/EUR BTC/GBP ETH/EUR ETH/GBP
BCH/EUR BCH/GBP BNB/EUR BNB/GBP
LTC/EUR LTC/GBP
Users can transfer GBP and EUR directly from their bank accounts to the Binance Jersey exchange through Faster Payment or SEPA, The list of countries with this payment feature can be seen on
Binance Jersey is available for trading in the following countries
BinanceLite Australia
Binance Lite Australia is powered by Binance exchange and it offers a very simple and most secure way to buy bitcoin and Binance coin (BNB) with Australian Dollar or with internet banking at a newsagent near you.
You can Purchase BTC and Binance coin with internet banking with the Binance lite escrow feature.
Or you can place an online order and then complete your order by going to nearest Newsagent
For detailed FAQ’s on Binance lite visit
https://www.binancelite.com/faq/
Binance Uganda
Binance Uganda is the safest place to buy bitcoin with Ugandan Shilling (UGX) is Binance Uganda
How to buy bitcoin with Binance Uganda
You can start buying BTC in three simple steps on Binance Uganda
Step 1 is to create your account on Binance Uganda
Step 2 is to link your Binance Uganda account with Mobile Money Account
Step 3 is to start buying and selling bitcoin
What cryptocurrencies does Binance Uganda support?
You can buy BTC, ETH, Binance coin BNB, BHFT, LTC, PCAT, BCH and PAX with Ugandan Shilling (UGX) on Binance Uganda
What is Binance Uganda Fees
Order fees to buy any crypto is 0.1%
Deposit fees from mobile money are 1.5%
Withdrawal fees from Mobile money are 250 UGX plus standard charges of the mobile money service provider
Detail image is given below explaining Binance Uganda fees
For more details visit:
https://www.binance.co.ug/en/fees
Binance Dex
Binance DEX is a fast and reliable decentralized cryptocurrency exchange, like ethereum, binance dex is Binance chain and has its own blockchain
The main points are:
It is a decentralized exchange, it’s a blockchain.
Due to the popularity of Binance chain, many cryptocurrencies that are built on the ethereum chain are migrating to Binance chain
According to coinmarketcap Binace dex support trading of over 80 cryptocurrencies and has a trading volume of almost 100 BTC a day
Only limited orders are accepted. The Binance decentralized exchange does not continuously match orders
Users retain custody and control over their private keys and funds.
User cannot purchase cryptocurrencies on Binance dex with fiat currencies
Binance Dex fees are variable and keep on changing, the details of the Binance dex fees are shown in the image
Binance Charity is a nonprofit organization that aim is to improve the living condition of the poor by a blockchain donation system. The aim of the organization is that in the revolution of blockchain system no one must be left behind and all poor’s should be helped by all means possible
Binance Info
Binance info is a cryptocurrency information platform that will provide you a deep analysis of cryptocurrencies by giving highly researched reports of these digital assets for users in the crypto world
Binance Labs is the venture arm of the Binance exchange that is formed to invest in and to give power to the cryptocurrency startups and communities.
The mission of Binance Labs is to help and support the cryptocurrency projects that will help grow the blockchain industry
Binance Launchpad
Binance Launchpad is a platform that lists new cryptocurrencies projects on Binance exchange by offering initial exchange offering (IEO) where users can participate in these IEO’s
Binance launchpad has been the most successful in launching some very authentic projects and also users earned sound profits by participation in initial exchange offering of these projects on Binance Launchpad
Many famous projects were launched on Binance launchpad and there initial exchange offering was completed and users earned handsome profits by IEO’s of these projects, some of them are
WazirX
Troy
Elrond
Harmony
Matic
Bittorent
How to use the Binance launchpad?
Binance offer IEO’s by a lottery and ticket claim system, Binance launchpad lottery system is explained below
Trust wallet
Trust wallet is the cryptocurrency wallet for android, apple, and IOS, it’s a multi-currency wallet that supports ERC20 and BEP2 (Binance chain) tokens
Trust wallet is owned and supported by Binance exchange, below is the list of trust wallet supported coins and blockchains, many more will be added with time
Frequently Asked Question
Is Binance safe to keep your crypto?
There are many questions is Binance safe? Is it safe to keep coins on Binance? etc the answer to all of them is that funds on Binance exchange are the safest because of the security measures Binance take to protect its users, Binance partners with large online security providers firms and data analyzing companies to keep its customers safe, Binance exchange keep on educating its users to protect their accounts. Binance has also a reserved fund known as SAFU to compensate its users in case of any hack
What is Binance SAFU?
SAFU the term most used by the Binance founder and CEO Changpeng Zhao, Binance SAFU are the Secure Asset Fund for Users (SAFU) introduced by Binance in 2018.
The SAFU is a reserve fund that if the platform experiences a hack then SAFU funds will be used to compensate Binance users. The SAFU fund is financed with 10% of all trading fees generated by Binance.
Is Binance Legal?
Being legal means that do Binance following regulation standards or not. Regulation is a broad topic and has two basic requirements that know your customer (KYC) & Anti-money laundering (AML)
KYC means the crypto exchange must know its customers. This is why Binance ask for your Identity card, address proof, and others,
AML means the cryptocurrency exchange should observe every transaction to make sure it is not related to fraud and money laundering, Binance exchange has a team of professionals and firms being outsourced to full these requirements
Binance has Binance US, Binance Singapore, Binance Jersey, Binance Uganda, Binance Australia. All of these exchanges are fully compliant with local regulations
Are US citizens able to trade on Binance exchange?
Yes definitely, Binance is not just an exchange it’s a world of cryptocurrencies. US users can trade on Binance US. Binance US has compliance with rules and regulations of US, Binance US Users can use USD to buy cryptocurrencies directly on the exchange, Binance US has a trading pair of USD to cryptocurrency that is BTC/USD, ETH/USD, XRP/USD, LINK/USD, BNB/USD, BCH/USD, USD/USDT
Where is Binance located?
Binance HQ is located in Ta’ Xbiex, Malta and offices in London, Singapore, Germany France, and 6 other locations worldwide
How to withdraw from Binance to Coinbase?
Withdraw from Binance to Coinbase can be done in a number of steps
Log in to Binance exchange and from the above tab from “wallet” option select “Spot wallet” option
Now select “withdraw” option from the left sidebar, a window will open
Now from the “coin” option select any coin you want to withdraw
Now enter Coinbase Recipient address of the coin you want to withdraw
Then enter the amount of coin you want to withdraw from Binance to Coinbase
Then Click on “submit”
Then enter the two-factor authentication code that you will receive when you will click submit
Then go to your email and verify your withdrawal request
Wait for network confirmations; normally it takes 15 minutes to and 1 hour for any deposit or withdrawal transaction to be completed
Was Binance ever hacked?
Yes, the Binance platform was hacked in May 2019. The hackers were able to withdraw 7,000 Bitcoin, which market value at that point was over $ 40 million. But Binance exchange was able to refund its customers by using its SAFU funds and by doing so Binance was able to build more trust of its users and increased its reputation among its customers
How to download the Binance app?
It’s very easy to download the Binance app
Steps 1 go to Binance exchange home page
Step 2 moves your cursor to the download icon (i.e a downward arrow) on the top right corner of the screen
By doing so you will see the three option
App store
Google Play
Andriod
If you are iPhone user click on the “App store” download and install the app from the apple store
If you are an android user you can go to “android” and download and install the app in your mobile from the android store
Conclusion
Binance exchange is the best crypto exchange at this time, it has excellent leadership, great management team, top security, and fast customer service, They are slowly but surely building every day and achieving some astonishing success in the blockchain industry in a very short period
In this, in-depth article we have discussed What is Ethereum, its history, How Ethereum works, Advantages and Disadvantages of ETH, How to buy Ethereum from different resources, How to properly store your Etherum, ETH mining and Proof of stake plus detailed FAQ’s in the end
What is Ethereum?
Ethereum is a public, open-source, blockchain-based, a distributed software platform that developers can use to build and deploy decentralized applications.
ETH is a decentralized system that uses a peer-to-peer approach.
Every single interaction takes place between the participating users is only supported by them without the involvement of a control authority.
Ethereum is based on decentralized operations, meaning it is not governed by any single power.
As a decentralized system, ETH is completely autonomous and is not controlled by anyone. It has no central source as it is run by thousands of volunteer computers around the world, which means it can never go offline.
Second, it is important to understand that although Ethereum and Bitcoin are constantly compared, they are two completely different projects with completely different goals.
Bitcoin is the first primary crypto and money transferal method based on and backed by a distributed public ledger technology
ETH used the technology behind Bitcoin and significantly expanded its capabilities.
It is an entire network with its internet browser, coding language and payment system.
Above all, users can use it to create their decentralized applications in the ETH blockchain.
These applications can either be completely new ideas or decentralized revisions of existing concepts.
The whole Ethereum operation is maintained by a system called “nodes”. Nodes are enlistees who download the complete ETH blockchain and fully reinforce all of the operation’s customs, keep the network fair, and earn rewards.
Ethereum has a lengthy, argumentative history that has had a huge impact on the design of the ETH. The white paper introduced by Vitalik at the end of 2013 was the heart of the ETH era.
As a core concept the goal was to create a distributed computing platform that fully utilized the potential of blockchain technology.
The general ambition of the project outlined in the White Paper and the technical expertise of its founder got the attention of many in the cryptocurrency space.
The platform’s core innovation, known as the Ethereum Virtual Machine (EVM), is a complete piece of software that works on the Ethereum network and enables anyone to run any program on the ETH blockchain despite any know-how of the programming language.
The result is the potential to build quality decentralized applications on an ETH platform.
Ethereum making started in 2014 with Vitalik with his modest team started through the Swiss company ETH Switzerland GmbH and the Swiss non-profit ETH Foundation.
In July 2014 ETH did a crowd sale that raised over $ 14 million. In September of the same year ETH was distributed to investors and the development team while the remaining funds went to the Ethereum Foundation.
In July 2015, the first trial main net version of ETH was released and was termed as the Frontier version. The first major upgrade to the Ethereum platform was released in March 2016 as Homestead that was considered stable and focused on gas prices, security, and transaction processing.
ETH was created with the capability to create complex contracts
With smart contracts, security means handling every possible way in which a contract can be executed with perfect accuracy to ensure that the contract does only what the author intended.
Ethereum started with the idea that “code is law”. That said, an Ethereum contract is the ultimate authority and no one can override the contract.
Users generate transactions in the form of smart contracts that operate on ETH. When a user forwards a transaction to a contract, every computer working as a node on the network run the contract code and then register the output
The whole process is performed by utilizing the ETH Virtual Machine, which transforms the smart contracts into directions the computer can read.
To update the event, the process of mining is used. Mining is performed with a Proof of Work algorithm just like Bitcoin.
The ETH contracts are completely safe from third party tampering.
All decentralized apps and DAOs included in the network cannot be controlled by anyone. This excludes the conflict of fraud and corruption and makes the network safe from any tampering.
The entire platform is decentralized, which implies there is no possible single point of failure. Therefore all apps constantly stay online and they are never switched off.
Besides, due to its decentralized nature and cryptographic security, the Ethereum network is well protected against possible hacking attacks.
Disadvantages of Ethereum
Even though smart contracts are supposed to make the network flawless, they can only be as good as the people who write the code for them.
There is always room for human error and any error in the code can be exploited. In this case, there is no direct way to stop a hacker attack or exploiting this error.
The only possible way to correct any discrepancies is by rewriting the underlying code. However, this completely contradicts the nature of the blockchain, since it is supposed to be an unchangeable ledger.
How To Buy Ethereum
Ethereum (ETH) can be bought from three main sources
Cryptocurrency brokers like Coinmama, Bitpanda, eToro, and others
Trading platforms like Coinbase, Binance, Kucoin, Okex, Bitfinex and many more
In contrast to exchanges, There is some peer to peer exchange services that enable a more direct connection between users. Local bitcoins are an example of such an exchange. After creating an account, users can post buy or sell requests for ETH, including information about payment methods and prices. The users then browse through the listings of buy and sell offers and pick the trading partners with whom they want to do business.
When practicing a web-based wallet user’s private keys are stored online on a server that is controlled by someone else and is connected to the Internet.
In this way, users can effortlessly access their credit from any device around the world.
However, there is always a risk that the server will be hacked or even the organization running the service can get control of your bitcoins
The main benefit of a mobile wallet is that the user’s credit is always available. It is a very convenient method of paying for goods by scanning QR codes
Mining is a process where new cryptocurrency coins are created and added to circulating supply.
The miners of the Ethereum are paid with newly created ETH as a reward of mining.
Mining Ethereum in this way is known as proof of work. It is called Proof of Work because the node has to prove that it has done the work by checking the transactions to get its ether reward.
The disadvantage of mining is that the application-specific integrated circuit “ASIC” used for mining ETH utilizes a lot of computing power and electricity which makes mining very expensive and complicated.
The other way is proof of staking to verify transactions and earn rewards. In proof of staking users only had to hold Ethereum in their wallets to become network validators and contribute to the Ethereum Blockchain.
Users need to hold a minimum of 32 ETH to earn 4% to 10% rewards annually, Users that are contributing to the Ethereum Proof of stake are known as Stakers or Stake Holders.
The feature that makes Etherum so precious is that you can edit the Ethereum code to build new coins on ETH Blockchain, You must notice that there are thousands of ERC20 tokens in the market, some of the well known are USDT, USDC, HuobiToken, PAX, etc all are using the Ethereum Blockchain
How New ETH Coins Are Created?
New Ethereums are produced by the process of mining. Mining is a process where you solve complex mathematical problems by mining hardware like ASIC rigs to invent new ETH. Mining demands a lot of energy and hardware specification so it is not fit for every one
How Many Ethereum Are In Market?
According to coinmarketcap at the time of writing, the circulating supply of Ethereum is 110,374,172 and it will keep rising with time as new coin are being mined and added to circulating supply
What Is Ethereum Gas?
Gas is the number of fees that users must pay to run the contracts successfully. If the gas amount is not adequate, the contracts will stop functionally accurately
The likewise is the case in Ethereum transactions. Users pay the gas amount to the miners to complete the transactions on ETH blockchain. The miners may neglect the transactions with lower gas fees or such transactions may take a lot of extra time to complete because of lower gas fees
How long It Need To Mine Ethereum Block?
Approximately it took 15-20 seconds to add a new block to the Ethereum Blockchain
Can I Modify the Ethereum Transaction?
You must double to triple check a transaction before adding it to the blockchain, you must check the quantity of ETH being sent, the address where the ETH is going, and the fees you are going to pay again and again because when the transaction is recorded on the blockchain there is no way it can be replaced or changed, So you need to be extra care full before initiating any transaction
Are The Transactions On Ethereum Private?
No, because Ethereum is not a privacy coin. All the transactions are visible publically. Though the real name of a person is not stated on the transaction, there are techniques by which the transaction can be connected to your identity
How to deposit Ethereum on Binance Exchange?
If you have ETH on any wallet or cryptocurrency exchange you can deposit it on your Binance account is some simple steps
From the coin list select Ethereum, copy the address and send your ETH to the corresponding address
Wait for the transaction confirmation, after the transaction is confirmed your Ethereum will be credited to your Binance account
How to store Ethereum on Binance Exchange?
You can store you Ethereum on Binance as it is easy and secure, You can not only trade Ethereum on Binance on hundreds of ETH trading pairs but there are alternatives methods like Staking and Lending, with which you can earn more with your ETH
How You Can withdraw Ethereum from Binance Exchange?
If you possess ETH in your Binance exchange account, you can withdraw it with some easy steps
First of all Log in to your Binance account
Click on the spot wallet and then select withdraw
Select Ethereum from the list and then select a network
Insert address of the recipient and amount you are willing to transfer and click on withdraw
A confirmation email will be sent to your email linked with your account, go to your email and confirm the transaction
Ethereum will be credited to your given address once the transaction is confirmed by the ETH Blockchain
How to buy bitcoin is fully explained with a thorough tutorial of how to buy bitcoin with cryptocurrency exchanges and bitcoin ATMs, Most demanded FAQ’s and videos that will lead you about buying Bitcoin cryptocurrency
Before you get Bitcoin, you must first need a place to store it.
In the world of cryptocurrencies, this place is called a wallet, and it comes in various structures. Different sorts of wallets offer Bitcoin owners of different types of security, storage, and access options.
Wallets are needed so that after purchasing your bitcoins you can store them in your wallets, just like after withdrawing cash from the bank or ATM you put it in your purse or pocket
When practicing a web-based wallet user’s private keys are stored online on a server that is controlled by someone else and is connected to the Internet.
In this way, users can effortlessly access their credit from any device around the world.
However, there is always a risk that the server will be hacked or even the organization running the service can get control of your bitcoins
The main benefit of a mobile wallet is that the user’s credit is always available. It is a very convenient method of paying for goods by scanning QR codes
One of the safest options for Bitcoin storage is to use two QR codes that are generated using a specific service.
One of them is a public key, and address through which BTCs can be received.
The other is a private key that you can use to send bitcoins stored at that address.
Types of Bitcoin Wallet, Video source Youtube: Koinlocker
How to Get Bitcoin
How to get bitcoin is a simple question and has a simple answer, after setting up your wallet you can get bitcoin crypto by multiple numbers of ways.
Bank account, Debit card or Credit card
Once you have a Bitcoin wallet, you can buy Bitcoins by using conventional payment modes such as credit card, bank transfer or debit card.
The bitcoins are then shifted to your wallet. The availability of the above payment methods is subject to the chosen exchange, banks, credit or Debit card service providers
Whether the preferred exchange, banks, credit or Debit card service providers have the feature of letting you buy bitcoin from their service or not
Cryptocurrency exchanges like Coinbase, Binance instantly let you buy bitcoin from your bank accounts, debit or credit cards easily
Although it’s a very new concept, Bitcoin ATMs are emerging in cities around the world and the number is improving.
The machines charge a commission of three to eight percent in addition to the normal exchange price but offer users the most private Bitcoin buying experience.
You will then receive an SMS with a confirmation code
Enter the code in the ATM
The ATM will ask for your Bitcoin wallet address
Enter the Bitcoin wallet address to which your Bitcoin should be sent
Put your money in the ATM
Press “Send” and Bitcoin will be sent to you immediately
Point to remember
If you haven’t set up a Bitcoin wallet, click the “I don’t have a Bitcoin wallet address” option. The ATM will create a new Bitcoin wallet address for you and will print it out. This printed paper contains the public and private keys for your Bitcoin wallet. Keep them very safe
With the booming reputation of bitcoins, such ATMs can become one of the most common ways to buy the cryptocurrency.
Bitcoin ATMs are very unlikely to perform in countries where Bitcoin is banned or prohibited.
You can find the closest Bitcoin ATM using a particular card service like CoinATMRadar
Cryptocurrency Exchanges:
After you set up your wallet with a payment method, you need a place where you can buy Bitcoin.
Users can buy Bitcoin and other cryptocurrencies on online marketplaces called cryptocurrency exchanges, related to the platforms where traders buy traditional stocks like an apple or google stock, etc.
The crypto exchanges join you directly to the Bitcoin marketplace, where you can exchange traditional currencies like Dollar, Euro, etc for Bitcoin.
Keep in mind that Bitcoin Exchange and Bitcoin Wallet are not the same things.
Bitcoin exchanges are alike to currency markets. The exchanges are digital platforms on which Bitcoin is exchanged for fiat currency for example Bitcoin vs. US dollar.
While exchanges offer wallet functionality to users but this is not their main job.
Since wallets require to be secure, you shouldn’t hold large amounts of Bitcoin or keep them for a long time when exchanging them on crypto exchanges.
Therefore, it is prudent to put your bitcoins in a secure wallet. Since security must be a top preference when choosing a Bitcoin wallet, you should choose a wallet with multiple signatures.
Many instituted exchanges offer one-stop solutions with high-security standards and reporting. However, care should be taken when picking a Bitcoin exchange or wallets
The best cryptocurrency exchanges in the market are shown below
Name
Payment method
Verification levels
Fee
Coinbase
Wire transfer by linking your bank account directly to your Coinbase account
Credit card, Paypal
Identity verification
1.50%-4.00%
Binance Exchange
Bank Transfer, Credit, Debit Card, All Major cryptocurrencies
No verification up to transaction of 2 BTC, Transaction above 2 Btc Require verification
USD or EUR deposits and withdrawal require ID verification
0.1%
You may Pay in BNB to reduce fees
Bitfinex
Bank transfer, All Major cryptocurrencies
Not required if you are depositing with cryptocurrencies
USD or EUR deposits and withdrawal require ID verification
0% – 0.1%
Kucoin
Bank Transfer, Credit, Debit Card, All Major cryptocurrencies
No verification up to transaction of 2 BTC, Transaction above 2 Btc Require verification
USD or EUR deposits and withdrawal require ID verification
0.01%-0.15%
BitStamp
SEPA or SWIFT transfers
Wire transfer, Credit card
Identity verification
0.1%-0.25%
OKex
Bank Transfer, Credit, Debit Card, All Major cryptocurrencies
Identity verification
0.1%-0.2%
Peer to Peer (P2P) Exchanges:
In contrast to decentralized exchanges, where buyers and sellers are brought together anonymously and all aspects of the transaction are simplified
There is some peer to peer exchange services that enable a more direct connection between users.
After creating an account, users can post buy or sell requests for Bitcoin crypto, including information about payment methods and prices.
The users then browse through the listings of buy and sell offers and pick the trading partners with whom they want to do business.
Local bitcoins facilitate some features of trading
Those who are not open to a one-on-one conversation can always look for a local Bitcoin meeting where they can buy the cryptocurrency in a group environment while growing their BTC knowledge.
You can find information about these meetings on www.meetup.com and other related websites.
Of course, you don’t necessarily need to meet a seller in person to complete a transaction.
Some sellers are open to trading on the Internet, but you have to be extremely careful as you take a large risk of losing your money.
Always Use payment services such as PayPal, which guarantee the receipt of goods.
The concept what is Bitcoin and How Does it Work is a very compelling argument.
Bitcoin is a digital form of cash.
But unlike the traditional fiat currency, there is no central bank to control it.
Each Bitcoin unit is unparalleled and cannot be copied or destroyed. It runs over a distributed network that is maintained by thousands of computers around the world.
It was only a matter of time before computer scientists and developers began thinking What if data could not be copied?
What if there was something like a unique data element and what if it could be transferred from user to user?
Eventually, these questions and their practical outcomes have made it equitably clear that unique data that cannot be copied can be used as digital cash.
Though there were other models of digital currencies, Bitcoin cryptocurrency was the first to execute cryptographic techniques, marking the beginning of cryptocurrencies.
Largest people have little or no experience with this type of digital currency. So you might be asking yourself what is Bitcoin and How Does it Work.
The underlying technology that makes cryptocurrencies so different is fascinating, but for the majority of us, it’s probably one of the most complex issues for most of us
What is a Bitcoin
What is a bitcoin that can be clarified most simply as Bitcoin is a digital currency? No printing bills or minting coins.
It is decentralized – there is no government, institution like banks or any other authority that controls it.
The owners are anonymous. Rather than using names, tax numbers or social security numbers, Bitcoin connects buyers and sellers via encryption keys.
And it is not originated from top to bottom like traditional currencies. Rather, Bitcoin is mined by powerful computers
Bitcoin cryptocurrency is a digital currency that was founded in January 2009.
It follows the concepts of a white paper by the strange developer Satoshi Nakamoto, whose true status has yet to be verified.
Bitcoin crypto promises lower transaction fees than traditional online payment tools and unlike government-issued currencies, BTC is administered by a decentralized means.
There are no physical bitcoins, only credits that are kept in a public directory in the cloud and that – together with all bitcoin transactions – are marked by an immense amount of computing power.
Bitcoins are neither issued nor supported by banks or governments
Although Bitcoin is not a legal tender, it is very popular and has triggered the launch of hundreds of other virtual currencies, collectively known as altcoins.
what is a bitcoin, Video source Youtube: Austin Evans
Bitcoin Crypto as Money
When it comes to Bitcoin as money, it can be represented as a digital currency that runs on a distributed peer to peer economic system.
Bitcoin crypto or bitcoin cryptocurrency can also be referred to as BTC
Bitcoin is managed as digital cash from thousands of lines of code.
It is based on open-source software that is frequently updated by a large community of developers.
Initially, this software was also known as Bitcoin. To avoid misinterpretations, Bitcoin’s main client software was officially renamed Bitcoin Core in 2014.
Bitcoin cryptocurrency and Blockchain
Bitcoin is not issued or regulated by a single authority or agency but backed by many computers (nodes) around the world.
The Bitcoin network has its foundations on a distributed ledger known as the blockchain
Blockchain is accountable for maintaining an organized list of all transactions through which bitcoins are sent or received
These transactions are consolidated into linked blocks and form a chain of blocks known as the blockchain
Due to their several qualities and functions, it is quite frequent for people to be confused about the differences between Bitcoin and blockchain, as they are closely linked, although the concepts are different.
What exactly is a blockchain
In reality, a blockchain is a set of records, much like a general ledger or flat database.
However, its uniqueness rests on the mechanism by which it validates and protects these records.
The problem of clear and changeless data has been fussing programmers since the earliest days of digital storage.
If data on a hard drive can be altered so easily, what is the legal and true version?
It is a difficult question, to which there were few answers until the early 1990s when Stuart Haber and W. Scott Stornetta founded the first archetype of a blockchain.
They were the first to use cryptographic proof to secure a chain of blocks to prevent data tampering.
The work of Haber and Stornetta certainly encouraged the work of Hal Finney and many other computer scientists and finally led to the creation of Bitcoin.
The Bitcoin white paper was published by Satoshi Nakamoto in 2008, and the first block was dismantled on January 3, 2009.
KEY POINTS
Bitcoin was launched in 2009 and is the world’s largest cryptocurrency by market cap.
Unlike the fiat currency, Bitcoin is created, distributed, traded and stored using a decentralized general ledger system known as blockchain.
The history of bitcoin as a store of value was turbulent. The cryptocurrency rose to around $ 20,000 per single bitcoin in 2017
How does Bitcoin Work
How does bitcoin’s work is defined easily? Bitcoin cryptocurrency is one of the first digital currencies to use peer-to-peer technology that enables instant payments.
The independent companies and persons, who have enough computing power can engage in the Bitcoin crypto network, are known as miners, and are prompted to join the mining network by rewards in the shape of transaction fees paid in Bitcoin.
These miners can be seen as a decentralized authority that strengthens the credibility of the Bitcoin network.
New Bitcoin coins when delivered after mining are issued to miners at a fixed but periodically decreasing rate as the total supply of Bitcoins is approaching 21 million.
After the total supply of 21 million is reached no new bitcoin will be mined
There are currently around 3 million bitcoins that still need to be mined. This is how Bitcoin differs from the Fiat currency.
In centralized banking systems, the currency is released at a rate commensurate with commodity growth to ensure price stability
while a decentralized system like Bitcoin sets the release rate in advance and using an algorithm.
how does bitcoin work, Video source Youtube: Techquickie
What is Bitcoin Mining
Bitcoin mining is the process by which bitcoins are placed on the market.
In general, mining demands to solve computationally complex puzzles to find a new block to add to the blockchain.
By contributing to the blockchain, transaction records are added and checked throughout the network during mining.
Miners receive a reward in the form of some bitcoins for adding blocks to the blockchain.
The reward is halved every 210,000 blocks. The block reward in 2009 was 50 new bitcoins and is currently 12.5 and will become 6.25 after bitcoin halving 2020
As more and more bitcoins are produced, the difficulty of the mining process that is the amount of computing power increases
The mining difficulty started at 1.0 when Bitcoin debuted in 2009.
At the end of the year it was only 1.18. As of October 2019, the mining difficulty will be over 12 trillion.
Once an ordinary desktop computer was enough for the mining process.
But now miners must use expensive, complex hardware such as Application-Specific Integrated Circuits (ASIC) and more advanced processing units such as Graphics Processing Units (GPUs).
These complex mining processors are known as “mining plants”.
A bitcoin is divisible into eight decimal places (100 millionths of a bitcoin), and this smallest unit is called a satoshi.
If significant and if the participating miners accept the development, Bitcoin could eventually be made divisible into even more decimal places.
How is bitcoin different from fiat currencies?
Several judgments make bitcoin cryptocurrency is different from fiat currencies
Decentralization
The main characteristic of Bitcoin is that it is decentralized. No single institution controls the Bitcoin network.
It is sustained by a group of volunteer programmers and operated by an open network of dedicated computers around the world.
This attracts individuals and groups who are not pleased with the banks or government controlling their money.
Limited offer
Fiat currencies supply is not limited – central banks can issue as many currencies as they want and try to manipulate the value of one currency concerning other currencies.
Holders of the currency and in particular citizens with little alternative bear the costs
At Bitcoin, however the supply is strictly constrained by the underlying algorithm.
A small number of new bitcoins are flowing out every hour and will continue to do so at a decreasing rate until a maximum of 21 million has been reached.
This makes Bitcoin more charming as an asset theoretically the value increases when demand increases and supply remains the same or the supply decrease.
Distributed and secure
The technology underlying Bitcoin is designed to guarantee the integrity of data and transactions.
First, each transaction is digitally signed and checked using cryptographic techniques that ensure that funds can only be spent once.
When it is affirmed that the transaction is valid, it is permanently recorded on the blockchain through a process called mining which involves more cryptography.
This looks to be a considerable additional effort but has a very strong influence on the security of the system.
To change the Bitcoin blockchain, the entire form must be decrypted record by record, which is practically impossible even for the most powerful computers.
The power of unique data
Most of the value of digital technology has been obtained from easy-to-replicate data, and much of the future performance of the technology will result from using unique information and examining its possible interaction.
For example, complex financial transactions will be much more accurate and far less prone to errors due to innovative advances like Bitcoin.
Frequently Asked Questions
Who invented Bitcoin?
Nobody knows who designed Bitcoin or at least not now even after bitcoin was invented in 2009.
Satoshi Nakamoto is the name of the person or group of people who published the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009.
The Bitcoin protocol dictates that users register a birthday when registering; the person named Satoshi Nakamoto registers and records April 5 as the date of birth.
In the years since that time, many people have claimed to be or have been suggested as the real people behind the pseudonym, but the true identity behind Satoshi has remained in the dark till today.
August 18, 2008: The domain name bitcoin.org is registered. This domain is “WhoisGuard Protected”, which means that the identity of the person who registered it is not public information.
October 31, 2008: Someone using the Satoshi Nakamoto name stated on the cryptography mailing list at metzdowd.com: I am working on a new electronic checkout system that is completely peer-to-peer and has no third party
The paper is available at http://www.bitcoin.org/bitcoin.pdf this link leads to the well-known white paper of “Bitcoin: An Electronic Peer-to-Peer POS System “, which was published on bitcoin.org
January 3, 2009: The first Bitcoin block is Block 0 also known as the “Genesis Block” was provided
January 8, 2009: On the Cryptography Mailing List, The first version of Bitcoin software was announced
January 9, 2009: Block 1 will be dismantled and Bitcoin mining began seriously.
What is Bitcoin used for? Or what is the purpose of Bitcoin?
Bitcoin cryptocurrency is a network that allows a new payment system and is digital money. It is the first decentralized peer-to-peer payment network without central authority or intermediaries.
From a user point of view Bitcoin is only cash for the internet.
Bitcoin can be used to buy things or make payments on the internet on thousands of places that accept bitcoin
What is a Bitcoin worth?
Bitcoin crypto worth keep on changing, the price keeps on swinging daily you can view the daily basis rates of bitcoin on Binance exchange bitcoin USD
In other words, bitcoin is of great worth, a very valuable asset, it’s worth was only some dollars in 2009, 2010 and it rose to almost 20,000 Usd in Dec 2017 becoming the most profitable asset of the decade
Can Bitcoin be converted to cash?
Bitcoin can be converted into cash in several easy steps
Sell Bitcoin through a cryptocurrency exchange like Binance, Coinbase or Kucoin. This is the easiest method if you are selling Bitcoin and want to transfer the resulting cash directly to a bank account.
Sell bitcoin to friends. If you have friends who want to buy Bitcoin, you can sell your BTC for fiat currency. Of course, this method assumes that you have friends who are looking for Bitcoin and that you trust they will pay you for your Bitcoin
Get a Bitcoin debit card. You can sell Bitcoin on several websites
Use a Bitcoin ATM. There are currently just over 2,200 Bitcoin ATMs worldwide. If its nearby you can exchange Bitcoin for cash
How to get a Bitcoin address?
There are many ways to get a BTC address. The 3 most popular methods are:
Set up an account on crypto exchanges
Use an online wallet
Use an offline wallet
Cryptocurrency Exchanges
Most crypto exchanges like Binance exchange will provide you a BTC address when you create an account.
Although this is beneficial, it is not recommended to use this address for anything other than brief storage.
The crypto exchanges are online and put your money at risk for hackers or malicious software.
Online wallets
There are many reputable online wallets that you can use to get a BTC address. Exodus and Jaxx are two solid options that support not only Bitcoin but other cryptocurrencies as well.
Offline wallets
Offline wallets are the recommended way to get an address to store your Bitcoin.
You can either use a hardware portfolio like Trezor and Ledger or create a paper portfolio for your money. Since these wallets are offline, you reduce the risk of getting hacked by using them.
Is Bitcoin Mining profitable?
In Bitcoin mining, Bitcoin crypto is earned in exchange for performing the verification process to validate Bitcoin transactions.
Several constituents determine whether mining Bitcoin is profitable. These cover
The cost of electricity to power the computer and mining system
The availability and price of the computer and mining system
The difficulty level of mining
Consider the cost of equipment, electricity, mining difficulties, and the impact of Bitcoin price on potential rewards of mining to determine if Bitcoin mining is profitable for you or not
When did Bitcoin Start?
On January 3, 2009, the Bitcoin network was started with Satoshi Nakamoto, who mined the Genesis Bitcoin block also known as block number 0, which had a reward of 50 bitcoin cryptocurrency at that time
What is my Bitcoin Address?
Your BTC address consists of 26 to 35 letters and numbers that recognize your Bitcoin wallet. BTC addresses start with either a 1 or a 3 and distinguish between upper and lower case.
If you would like to receive BTC, share your BTC address with the person who is going to pay you BTC.
Your BTC address is often introduced as your wallet address or your public address.
Tips to Remember
The most important thing to remember is only sending or receive Bitcoin to your Bitcoin address
if you send or want to receive Ethereum or any other cryptocurrency to your BTC address
you will never get it and your funds of that particular crypto that you are trying to send or receive on you BTC address will be lost forever
So only send or receive BTC on BTC address
Every cryptocurrency like Bitcoin, Ethereum, Litecoin, etc have their unique addresses and cannot be sent or received to any other cryptocurrency addresses
This address is considered public because, unlike the private key that manages your wallet, it can be released to the public.
Most wallets make your Bitcoin cryptocurrency address easily accessible.
You can easily find your address in the Receive BTC tab in your wallet or crypto exchange.
Should I buy Bitcoin?
Should I buy bitcoin or should I not is the very controversial question
There are two main reasons to buy bitcoin
Bitcoin has a fixed supply of 21 million coins, once all the coins are mined the price will skyrocket just like gold that has also limited supply
Bitcoin transactions are securable and not censorable making it a transparent network
The reasons not to buy bitcoin is that it is not yet properly regulated and it is not known what the international countries will conclude about BTC, will they regulate it or will they forbid it
How much is 1 Bitcoin?
Bitcoin price keeps on fluctuating just like traditional stocks, you can see below how much worth is 1 Bitcoin
Is bitcoin legal or not vary from country to country, However bitcoin is yet not endured as legal tender in any country
Legal tender is defined as a currency like dollars, euro, etc which are widely accepted and properly regulated by the world banks and governments around the world
Bitcoin cryptocurrency is not admitted as a legal tender anywhere in the world yet in many countries bitcoin is legal to be used as a payment option if both parties accept to make their transaction in Bitcoin
To understand what is bitcoin halving 2020, we must first know what is Bitcoin Halving? Below is Bitcoin halving clarified
What is the meaning of Bitcoin Halving?
Bitcoin halving is described as an event in which the rate at which new bitcoins are created halves. It occurs every four years.
As many know, the Bitcoin cryptocurrency (BTC) supply is limited. As soon as 21 million coins are produced, the network will no longer produce anymore.
This is one of the main reasons why Bitcoin cryptocurrency is often referred to as “digital gold”
Just like yellow metal, there is only a restricted amount worldwide, and one day everything will have been derived completely and there will be no Bitcoin cryptocurrency left to mine
There are currently around 18 million BTC in circulation, which is approximately 85% of the total circulation supply. However, this does not mean that the Bitcoin crypto will soon reach its ends.
The reason for this is the protocol encoded in the bitcoin blockchain right from the start
After Every 210,000 blocks are mined called Bitcoin halving, the production of new coins becomes more difficult
How long does it take for Bitcoin crypto to halve?
Since an average of 6 blocks is found within an hour and the halving occurs once every 210,000 blocks are mined, so by this calculation halving takes place every 4 years.
This fundamentally means that mining wages become 50% lower than before.
For example, if every miner receives 12.5 bitcoins to solve a block, they will only receive 6.25 bitcoin cryptocurrency after the next halving event and so on.
Of course, the fact that 21 million bitcoins have been made does not mean that 21 million bitcoins can be spent.
You have to take into account that many lost bitcoins will never be retrieved and also the generated bitcoin cryptocurrency has to be mined over time to utilize
What is Bitcoin Halving 2020? Or When the next Bitcoin halving will be taking place?
So now as the concept of bitcoin halving is clear let’s have a look at Bitcoin Halving 2020.
The next Bitcoin halving is assumed to take place in the week of May 18, 2020 when the number of blocks reaches 630,000.
The block reward will drops from 12.5 to 6.25 bitcoins.
The specific date of the halving is not yet known because the time to generate new blocks varies.
The network calculates an average of one block every ten minutes. The average date can be 18th May 2020
Bitcoin Halving dates history
Main Event
Dates
Block #
Block Reward
Bitcoin launches
Jan 3, 2009
0 (genesis block)
50 new Bitcoin
Bitcoin halving 2012
Nov 28, 2012
210,000
25 new Bitcoin
Bitcoin halving 2016
July 9, 2016
420,000
12.5 new Bitcoin
Bitcoin halving 2020
May 18, 2020, Expected
630,000
6.25 new Bitcoin
Bitcoin halving 2024
2024 Expected
740,000
3.125 new Bitcoin
Bitcoin halving 2025
2028 Expected
850,000
1.5625 new Bitcoin
How much Bitcoin miners will get after the next halving?
Each new block makes 6.25 BTC. In the beginning, the reward was eight times as high.
When Bitcoin hit the market in 2009, the miners received 50 BTC per block.
A total of 10,500,000 BTC was formed before the next halving took place in November 2012, when miners received 25 BTC for each block.
It may seem like an overly generous bonus of over $ 365,000 per block based on the current value
But the network has only just started to progress and, no one knew for sure whether people would still believe the concept worthy to invest their computing power in the Bitcoin blockchain to keep it alive.
Another factor to consider is that the all-time high for that period was $ 31 per BTC in June 2011, but the bubble burst later and bitcoin was back at $ 2 before year-end.
Although, mining eventually turned out to be much more profitable for those who started early
This is a major reason why Bitcoin critics call it the Ponzi program.
The second bitcoin halving took place on July 6, 2016, when block number 420,000 was created and miners started collecting 12.5 BTC for each new block, which is the current rate.
The third halving will halve this rate again, decreasing the block reward to just 6.25 BTC, or about $ 45,000, given the current market price.
Bitcoin halving price chart
Frequently Asked Questions
Will the Bitcoin price change after Bitcoin halving 2020?
Bitcoin cryptocurrency is currently displaying a 3.88% inflation rate and miners are dumping 1800 of Bitcoin Cryptocurrency on daily basis
After the halving, we will drop to under 2% inflation and will only be able to buy 900 new BTC per day
which may lead to an uptick in price if the demand for Bitcoin cryptocurrency persisted the same as the supply will decrease to half after Bitcoin halving 2020.
In the past, the price rose after halving but conclusively depends on the relationship between supply and demand.
In essence, halving Bitcoin cryptocurrency will reduce the BTC supply, making assets scarcer.
If there is demand, the price is likely to rise.
There are also some historical precedents. On November 28, 2012, the day of Bitcoin’s first halving, the price of the Bitcoin cryptocurrency rose from $ 11 to $ 12 and continued to build over the next year, reaching $ 1038 on November 28, 2013.
About four years later, a month before the second halving, the Bitcoin price reflected a similar bullish pattern.
It rose from $ 576 on June 9 to $ 650 on July 9, 2016
The day the block’s reward was cut in half for the second time in the asset’s history.
BTC continued to accelerate next year and was trading at $ 2526 on July 9, 2017.
Will it be the same this time? The industry has evolved dramatically in the past four years as cryptocurrencies and especially Bitcoin cryptocurrency have become an imperative part of mainstream news.
Still, some people may be motivated to take the gamble, especially given the previous patterns that have been announced concerning Bitcoin halving.
If history repeats itself and bitcoin prices rise in April 2020, more traders may buy the asset for fear of missing it, arousing demand and ultimately price.
How can I trade bitcoin halving 2020?
The easiest way is to buy Bitcoin Cryptocurrency is directly through an exchange like Binance exchange or any other prominent crypto exchange.
If you choose this choice, you will need to set up an Exchange account
Any profits would also be taxable in the usual way.
You can buy BTC before a month or two before halving and if the price begins to increase you can take profits but if vice versa you must place a stop loss to cut your losses
Can I make money by halving BTC?
Yes, it will be probable to make money with the BTC halving by speculating on Bitcoin’s price moves in the weeks and months connected with the event.
However, it is important to learn that all forms of trading involve risks.
So while there are chances of winning, you should never risk more than you can afford to lose.
How often is Bitcoin halving occurring?
The halving takes place at interims of 210,000 blocks, which is the case approximately every four years.
Bitcoin miners currently receive 12.5 Bitcoin cryptocurrency if they successfully mine a block.
By the end of May 2020, they will instead earn only 6.25 BTC
Will the mining of Bitcoin crypto Ever End?
Mining will be required as long as Bitcoin cryptocurrency exists.
If all Bitcoin cryptocurrency is mined completely then miners will be remunerated through transaction fees
How many Bitcoins are left to mine?
According to data from Blockchain.info there are 21 million bitcoin in total supply and only 4 million are left to mine
Out of 21 million 17 million bitcoin, cryptocurrency have been mined
What is a Block reward for Bitcoin miners?
The amount of BTC a miner takes for each new block he adds to the blockchain.
To illustrate this concept in more detail, we briefly return to the roots of Bitcoin cryptocurrency – the blockchain.
In the simplest sense, a blockchain is a digital general ledger, in which information about its transactions is stored in blocks of approximately 1 MB each.
For example, if Person A sends Bitcoin to Person B, that transaction is saved in a block along with about 500 other transactions that took place at about the same time.
A block reward is the amount of cryptocurrency, miners win when they successfully mine a new block by solving highly complex math problems with their mining hardware.
It is a prize for their hard work.
Will Bitcoin miners continue to be interested in mining, even if their reward is halved after Bitcoin halving 2020?
Some smaller players may be forced to leave the game or at least upgrade their hardware.
At this point, most of Bitcoin’s mining is done by giants like Bitmain
The China-based company that was worth $ 12 billion in 2019, application-specific integrated circuits that are costly and demand a lot of energy and technical skills.
If the block reward becomes less relevant, mining facilities that hardly cover production costs have to flee the market.
There will still be companies willing to mine Bitcoin cryptocurrency at the reduced rate, but this could make the market less decentralized.
Nonetheless, new and more effective ways of extracting BTC could emerge that may allow smaller companies to participate.
Can Bitcoin Survive Without Miners?
Without miners, the Bitcoin cryptocurrency blockchain will not remain functional
How many Bitcoin cryptos are lost?
Chainalysis, a research company that scrutinizes activity in various cryptocurrency markets, predicts that 17 to 23 percent of all bitcoin cryptocurrency has been lost and will never be recovered
What happens when the last bitcoin cryptocurrency is mined?
When all of BTC will be mined these transaction fees should become so worthy that they will encourage miners to continue mining even if they don’t receive a mining block reward.
Bitcoin cryptocurrency miners will still be paid by transactions fees
Who operates the Bitcoin network?
Nobody owns the Bitcoin cryptocurrency network. Bitcoin is controlled by all Bitcoin users around the world.
As developers update the software, they cannot force the Bitcoin protocol to change because all users are free to choose which software and version to apply.
