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There’s been a change in the outlook for cryptocurrency during the past few months. People seldom talk about the markets or the price of Bitcoin. Volatility has been causing a lot of uncertainty, and mainstream adoption came to a virtual standstill.
Nonetheless, the cryptocurrency space showed remarkable resilience as blockchain projects continue to expand its borders with more lateral thinking and “out-of-the-box” blockchain solutions. We’ll explore some of their use-cases and find out whether these currencies and platforms are the next big thing.
Why People Invest in These Projects
Despite the recent lull in cryptocurrency trading and mining, blockchain projects and ICOs are very much in the business for 2018. Investors and tech companies remain optimistic about the future of the cryptocurrency space amidst tightening restrictions and negativity. In fact, according to Coindesk, the amount of money raised in ICOs in the first quarter alone exceeded the total amount last year.
Most ICOs and blockchain projects didn’t end up well for a lot of investors (more than 90% failed to deliver). However, there are a few examples like Binance and EOS which turned out as good investments. Binance became one of the leading cryptocurrency exchanges with a BNB market cap of over $1 billion – the second most valuable token on Coinmarketcap. EOS, on the other hand had a successful, albeit controversial mainnet launch, and is now a full-fledged decentralized application platform second only to Ethereum.
Smart investors consider the current state of affairs as a golden opportunity to hunt for new projects with the greatest potential, particularly in their early stages when they are mostly undervalued. Investing early on has the advantage of maximum gains with the least amount of exposure. For instance, a hundred dollars’ worth of investments at ten cents per token won’t break the bank if things go south. But if it turns out to be a real investment, gains will be exponential (e.g., BNB and EOS tokens are worth a hundred times more than their initial price in 2017)
Blockchain Projects to Watch for in 2018
Finding a good investment can be a real challenge since we’re dealing with dozens of new blockchain projects and ICOs every month. If you’re lucky enough, you might be able to land on some big winners from a list of projects. But before anything else, please bear in mind that this is not investment advice, and you are solely responsible for any gains or losses. That said, here are five of the most talked-about blockchain projects in 2018.
Zilliqa (ZIL). Launched in January, the project puts a lot of work in building a highly scalable decentralized platform using a method known as “sharding.” Unlike in Bitcoin, each node will be working in parallel within a group of nodes called “shard,” verifying a subset of all the transactions occurring at the same time (also called parallel processing). Sharding works perfectly in many centralized systems (Ultima Online, Google, etc.). However, it presents an immense technical challenge when applied on a decentralized environment. Ethereum has been working hard on it as part of its on-chain scaling solution in hopes of solving the security/scalability/decentralization trilemma. Zilliqa’s entry into the whole sharding scene threatens to steal the thunder from Ethereum by becoming the first to come up with a workable solution. Some estimates it to be around January 2019. Key features include:
faster transaction throughputs (speed improves as the network grows)
employs practical Byzantine Fault Tolerance as a consensus mechanism
reduced energy consumption (mining is spaced a hundred blocks apart)
maintains a decentralized network structure (a new shard is created for every 600 nodes)
Basic Attention Token (BAT). Cutting the middleman goes beyond peer-to-peer transactions to include decentralized, blockchain-based digital advertising in the form of an open-source, ad-free browser with its own currency. Brave Browser is one of today’s hottest Internet browsing software because it allows users to block ads and trackers completely free. In fact, as many as 3 million people have already been using Brave, becoming one of Google Play’s top ten in the Android browser category. The project is moving towards the creation a decentralized advertising platform using its own currency – Basic Attention Token – to incentivize both content creation and user attention. It works in some ways like Google Ads but in a more transparent and decentralized manner. The key advantages of BAT from an investor’s point of view include:
good potential for adoption (sold out BAT worth $35 million in 30 seconds)
strong support from the community (Brave browsing experience receive a lot of positive feedback from users)
Kin (KIN). Canadian messaging app company Kik Interactive is making headway into cryptocurrency adoption with the launching of Kinecosystem. The company hopes to build a community of users and developers sharing resources, and making digital goods and services. However, unlike most blockchain startups with no real users, Kin’s integration into the Kik Messenger meant its value could potentially rise with over 300 million active users. The company is now moving towards the next phase, inviting all developers and content creators in building the ecosystem for large KIN payouts. Gains will take time, but you might want to consider its advantages, namely:
KIN’s practical use-case as a digital currency on an existing application (Kik has been in use since 2010)
user base is mostly made up of digital-natives (teens, millennials, and active mobile users)
Kik’s emphasis on anonymity
DeepBrain Chain (DBC). Blockchain companies like DeepBrain Chain sees decentralization as the future of the AI industry. Development of AI applications use up a huge amount of computing power. DeepBrain Chain works by utilizing computational resources across millions of nodes on the neural network in building AI applications which are then published onto the blockchain. Nodes that successfully deploy mirror images will receive payouts in DBC. It plans on migrating out of NEO to its own mainnet in Q4, with its own consensus algorithm (proof of importance and delegated proof of stake). The goal is to become the deep learning machine for the AI industry. Successful adoption is achievable through:
growth in people’s interest in the AI industry
reduced computational cost of AI companies through resource-sharing
secure, decentralized method of storing AI information.
Wormhole. Bitcoin Cash might soon be able to run smart contracts through its proposed protocol layer known as Wormhole. Developers plan on forking the Omni Layer to create a platform for smart contracts on top of Bitcoin Cash. Much of it is still in the works as of this moment, but news is, they’re going to issue a token named “Wormhole Cash.” Investors and crypto-enthusiasts are keeping track of its progress since it is expected to have a very high demand upon release.
The cryptocurrency space has been constantly evolving even as the noise and the hype surrounding cryptocurrency have mostly faded. Cryptocurrency is here to stay, and we’ll be seeing more projects in the near future that will bridge the gap between the average user and blockchain technology.
Revenue agencies around the world are scrambling to figure out a way to tax cryptocurrency as governments are beginning to realize they are losing out on a vast source of revenue.
We’re now seeing how cryptocurrency would fit into our economy, and more people from institutions and the mainstream society starting to acknowledge them as a store of value and as a medium of exchange. Consequently, this would also mean tax obligations for miners, buyers, traders, merchants, and everyday users.
Here are things we need to know to prepare ourselves for the tax season. We’ll cover some important issues, fundamentals of taxation and how they would apply to our cryptocurrencies. But before we start, here at CryptMin and CryptEdu, we encourage you to always pay your taxes and report your capital gains to the government. It’s never fun having the taxman after you.
Tax Laws Are after It
Despite what people tell us in social media and cryptocurrency websites about privacy and anonymity, dealing with cryptocurrencies can leave behind footprints for the CRA or the IRS. Blockchain transactions are public records – everybody sees it, including your taxman.
The truth is blockchain transactions are more transparent than our traditional banking system. The key difference is the use of public keys instead of real names, which makes every transaction pseudonymous. However, since no two public keys are alike, once it gets tied to a real person’s name or company, authorities can easily track every transaction that was ever made with that public key. (Note: some “underground” cryptocurrencies encrypt their true addresses on the blockchain ledgers like Monero and Zcash, and thus more difficult to track.)
Some places where the CRA or the IRS can get a hold of your identity are cryptocurrency exchanges, online wallets, cloud mining sites, mining pools, and the social media. Although gateways are largely unregulated these days, it’s only a matter of time before governments and regulators will require each one of them to disclose information they have about their customers upon request.
Coinbase, for instance, are required to conduct KYC on their customers before they can start buying, selling, or trading on GDAX. Same is true with cloud mining sites when accepting payments from customers using their credit card or bank account. Genesis Mining does so whenever customers buy their mining contracts. They’ll have their customers’ public keys as well for payouts.
From the governments’ perspective, these are all treasure troves when looking for information about people who owes them money. Depending on the exchange, cloud mining company or the country they’re in, government agencies can have access to these customer data.
They could also set their sights on social media, particularly content creators in YouTube, Facebook, or Twitter who display their public keys for accepting donations, or even online stores who take cryptocurrency as payment for goods and services. And while customers and everyday users might get away with it by putting them in cold storage (mobile, hardware, or paper wallet), sooner or later, regulators will find a way to catch up on them as well.
Conflicting Views on Cryptocurrency
The IRA and CRA treats cryptocurrencies just like any asset. Their value may fluctuate from time to time, but until they go out and are sold in exchanges for fiat, holding these currencies is not a taxable event. A Capital gain tax will apply when selling cryptocurrencies in exchanges. However, determining the exact price on the date of acquisition is necessary to properly assess how much capital gain the seller is obliged to pay taxes for during the re-sell.
As you might expect, getting the numbers right on a person’s capital gain is going to take a lot of work and making sure every transaction in cryptocurrency exchanges are properly documented. It’s possible, for instance, that Coinbase would be asked to disclose their records for taxing purposes on each buy and sell and the dollar valuation on each individual transaction to see how much capital gain a customer has.
When using it to buy goods and services, or trading them with other cryptocurrencies, bartering laws will apply. This is where it gets a little tricky when you consider capital gains on your cryptocurrency for every purchase. For instance, you bought a thousand dollars’ worth of Bitcoin and decided to buy furniture with it when the value goes up by 50%. The next month, you buy your furniture with Bitcoin which is currently priced at 1,500 USD. According to law, you’ll also have to pay for the gain tax as it is with bartering goods. In essence, you’re paying tax twice for buying furniture with Bitcoin – gain tax on Bitcoin and GST/HST on the furniture. And since you’re exchanging your digital asset on a short-term gain, it will be taxed just like a regular income which is the highest for capital gain tax.
Businesses will have to deal with the same problem when accepting cryptocurrency payments. If clients chose to pay with Bitcoin, which by definition is property/digital asset, they’ll have to report it as income (see the confusion?). This carries a lot of risk for business owners due to the volatility of cryptocurrencies. They might end up paying taxes on the sale despite the fact that the value of cryptocurrencies have already gone down.
Tax Implications for Miners, Traders, and Buyers
Regulators are catching up on cryptocurrencies fast. There will probably come a time when every cloud mining company, exchange, and wallet service in every country will be required to keep records about their customers in order to run their business. In this case, we need to prepare ourselves to avoid getting burned when the tax bill arrives.
Cloud mining companies can take advantage of tax deductions by writing off electrical and maintenance expenses in running their cloud mining facilities. This is a lot better than dodging regulations and taking a lot of risk of being caught and paying huge penalties or even losing the whole business. Technically speaking, cloud mining companies don’t pay out their customers – it’s a rental service. Whatever payout their customer receives depends on the mining pools they choose to join in and the currencies they want to mine with the hash power they bought from the cloud mining service. They might also take a cut from the mining rewards as a service charge on top of the rental fee or contract price (all depends on the cloud mining company). This is considered a taxable event, and laws regarding cryptocurrency transactions will apply.
Mining pools also take their share of the mining rewards as their service fee, usually around 1-4%, and hence, it is a taxable event according to laws on bartering, i.e. cryptocurrency for mining service. Exchanges and traders will be hit the hardest, especially day traders and swing traders. Under existing tax laws, short-term capital gains (assets acquired below one year) will be taxed as regular income. This applies, not only when cashing out and locking in their profits with fiat, but when buying other cryptocurrencies with it, e.g. buying Bitcoin with Ethereum.
Everyday users might also have to deal with this when buying or using cryptocurrencies for everyday transactions. Some complications may arise for buyers and business owners as mentioned earlier in this article.
Tax laws regarding cryptocurrencies still needs a lot of refinement; implementing it at its current state can be problematic and cause a lot of confusion. Sooner or later, our governments might come up with better tax laws regarding cryptocurrencies and begin the process of pursuing anyone who gets their hands on them. When the time arrives, we would have already prepared for such eventuality.
Interested in mining? Learn the basics of cryptocurrency mining at CryptEdu.com or start hassle-free cloud mining at Cryptmin.com today.
Cryptocurrencies exploded on the scene in 2010 and ever since then people haven’t known what quite to make of this new way of exchanging goods and services – one that, in the future, may take over fiat currency. Governments are having an even tougher time trying to regulate cryptocurrencies to ensure they don’t get abused by criminal organizations.
But probably more important to most central governments is their own financial interests in having a strong fiat currency. In fact, the greatest fear among regulators is not whether cryptocurrencies can be used for making secure transactions or if it has real value, but on people putting their wealth in places where governments have no access or control over. If this happens, fiat currencies will lose value or utility over time as more and more people trade cash for cryptocurrencies, thereby removing its grip on the economy and on people’s lives.
Gateways for Cryptocurrencies
Cryptocurrencies and decentralized blockchain ledgers have very little need for regulations by themselves. Nor do they need any government regulation or human intervention to function properly and securely. Decentralized blockchain ledgers are, in fact, in many ways more secure than any centralized bank or financial institution.
The main purpose of regulations, as viewed by the governments, seems to gravitate on the government’s role as custodians of fiat currencies, making sure nothing gets past online wallets, brokers, and exchanges without proper authorization and identification, which is in keeping with statutory laws preventing unlawful use of fiat currency (FinCEN, AML, CFT, KYC etc.).
Some countries implement even more stringent rules against cryptocurrencies, from banning the creation of new currencies through ICOs, to the outright prohibition of cryptocurrency mining. However, many of these restrictions and prohibitions achieved nothing except encourage more people to dodge regulations by going deeper underground.
These factors make legislation for cryptocurrencies a tough balancing act, since it has to serve its purpose of protecting the people against the unlawful use of money without making it too prohibitive as to encourage clandestine exchanges, creation, and distribution of cryptocurrencies.
Gateway #1: Online Wallets and Exchanges
Governments, banks, and financial institutions came in to “regulate” this seemingly uncontrollable trading activity which involved using government-backed fiat currencies. In order for exchanges to operate unimpeded, they need to implement strict identification and verification procedures before granting certain privileges to subscribers such as increasing buying and trading limits and the ability to link their bank and/or credit card accounts to their wallet accounts.
Coinbase, Kraken, and Poloniex are well-known examples of online wallets and exchanges that implement KYC and other client verification procedures.
Gateway#2: Initial Coin Offerings (ICOs)
Investors and venture capitalists (VCs) saw the high stakes of creating tokens using blockchain technology. All that stands between them and making a fortune is finding and rallying the support from people and tech communities through the sale of equities in exchange for privileges as pioneers and early adopters of their newly created coin. In a span of nine years, there are over a thousand altcoins that have been created – and counting. Ethereum project is one of the few Initial Coin Offering (basically the same as a IPO) whose altcoin turned out to be a strong currency in the market.
ICOs has been a controversial topic in the cryptocurrency sphere. From the viewpoint of regulators, they saw the need to impose regulations for such investments because they place a lot of risk on people, especially with cryptocurrency’s volatility, unpredictability, and ICO’s susceptibility to scams. China and South Korea went as far as banning ICOs altogether, and other countries threatened to follow suit if the benefits fail to justify the risks, or if scams involving ICOs spins out of control. Of course, banning them outright is foolhardy, but these countries do need a better system of regulating them just like any other IPO.
Gateway #3: Cryptocurrency Mining
Miners are one of the strong pillars that upholds the integrity and security of cryptocurrency networks.
There are some mining regulations in most countries, while in a few places mining is explicitly prohibited. Regulations can be beneficial for several reasons. Some mining pools don’t generate enough profit to be considered sustainable for business while shady cloud mining services exist as actually Ponzi schemes. In some countries, the high cost of electricity is prohibitive enough to discourage people from mining.
For cloud mining companies, most of the burden comes from excessive regulations pertaining Money Service Business (MSB) or Money Transmitter Business (MTB) which must be complied with to legally receive payments via credit cards or bank transfers, and send payouts to their subscribers. Often the best recourse for these cloud mining companies is to move their businesses in countries which are more receptive to mining.
Limits of Government Regulations
There are plenty of ways violators can dodge restrictions, and fixing all the loopholes meant shutting down the entire network (or the Internet) or reverting to a centralized form of currency.
Whether or not these regulations could prevent unlawful use of cryptocurrencies is beside the point since many countries are still inconclusive about the effectiveness of anti-money laundering laws in preventing organized crimes, terrorism, and corruption.
Instead, governments should be focusing more on enforcing laws and tracking down wrongdoers without putting undue restrictions on every citizen whose lives depend on their ability to use fiat or cryptocurrencies.
People now have a choice. Whether or not cryptocurrencies will coexist as a better alternative to fiat currency or replace it altogether is something which people will have to decide for themselves.
Interested in mining? Learn the basics of cryptocurrency mining at CryptEdu.com or start hassle-free cloud mining at Cryptmin.com today.
There are currently three ways a person can buy cryptocurrency: mining, buying from online wallets and exchanges, and buying or receiving from others.
In this article, we’ll be focusing about the ins and outs of buying cryptocurrencies from online wallets, exchanges, selling online, and walk you through the whole process with a step-by-step illustrative guide on some of the most popular online wallets, exchanges, and marketplace.
Cryptocurrencies vs. Fiat
Cryptocurrencies have unique properties which make them a lot different from our fiat currencies. They exhibit both properties as a medium of exchange for paying goods and services and as a commodity like gold and other precious metals that have intrinsic value.
It takes hours and huge amounts of computing power minting (or ‘mining’ in cryptocurrency parlance) these digital currencies, the same way gold is mined with hundreds of man-hours using expensive tools and equipment.
In comparison, fiat currencies use very little resources, if at all. Banks don’t even have to print or stamp paper bills and metal coins these days; they simply type in an arbitrary number on their computers to create more money.
Why People Buy Cryptocurrencies
In some countries where inflation has severely diminished the purchasing power of fiat currency, people turned to cryptocurrency and mining as their sole refuge against the rising prices of commodities and the unrestrained creation of money by banks and financial institutions.
Others view cryptocurrency as an opportunity for investment, particularly Bitcoin and other major currencies like Ethereum. Bitcoin’s value has been going up unabated for nearly a year, and more people are starting to look into it as a result of its rising demand, popularity, and to some extent, the use and promotion of cryptocurrency education.
For some users, they see it as a more affordable and secure way to send and receive money without going through any bank or financial institution. It’s almost like sending an email from one person to another where information is shared only between the sender and recipient.
Whatever your purpose is, you can always have an edge if you know the different methods of buying cryptocurrencies and how to take advantage of the differences in pricing, volatility, wallet features, and other factors.
Factors Affecting a Cryptocurrency’s Price
A casual visitor at coinmarketcap.com will quickly notice how fast the price of a certain currency changes – in a matter of seconds! (Check out the site and reload the page once every 5 minutes and see for yourself.)
This rapid movement in price is attributed to the cryptocurrency’s volatility. The fewer there are in circulation, the more volatile a certain currency is. Conversely, as a currency gains widespread adoption due to its abundant supply, price starts to become more stable.
Supply and demand also determines the current price of a particular currency.
In some instances, the relationship between supply and demand and the current price is a direct result of fear of missing out (FOMO). This is the typical bandwagon mentality people get into when something new or ‘trending’ comes along. Bitcoin is not a new thing, except for the vast majority who never heard of it. But towards the middle of 2017 when everything people talked about is Bitcoin, suddenly, everyone is dipping their hands into it.
Similarly, fear, uncertainty, and doubt works in much the same way, but with opposite results. People can succeed in convincing millions to sell their Bitcoin or face massive loss and cause huge price dip as people sell them in panic.
We can infer if a certain news or upcoming event has, or will likely cause fear when it coincides with sustained price drop such as the Bitcoin hard fork of August 1 where Bitcoin price went down unimpeded for 3 days, two weeks prior to the split, and on September 12-15 where Bitcoin came crashing down to USD 2947.69 with China’s ban on Bitcoin exchanges and ICOs a week later.
Price spread which is determined by comparing prices of cryptocurrencies in exchanges all over the Internet can also affect how a particular currency is priced. Exchanges work in some ways like trading where buyers and sellers negotiate on bid and ask price.
Price variance within the exchange itself is often negligible as both sides are given the average price by default (this can be changed by buyers and sellers as they wish). However, when comparing the average price from one exchange to another, we start to see a significant difference in pricing. (Clicking the link under ‘Volume’ at Coinmarketcap allows you to see this in real time.)
Opening/Installing Your Wallet
Your wallet is the key (no pun intended) to the world of cryptocurrency. This software allows you to make transactions with other wallet users and interact with the blockchain ledger using a pair of keys known as the private and public keys. For a detailed discussion about cryptocurrency wallets, go to Everything You Need to Know About Cryptocurrency Wallets.
Creating an Online Wallet Account
Setting up an online wallet is as easy as signing up for an email or social media account. Here are the steps in creating your Coinbase and Blockchain wallet.
To get started with Coinbase, go to their signup page and type in your name, email address, and wallet password. You will be sent a verification email by Coinbase. Go to your email and click Verify Email Address to activate your account.
Coinbase currently supports Bitcoin, Ethereum, and Litecoin. It generates your private and public keys for all three of them when you sign up to their wallet service. However, you don’t have access to your own private keys; only your public keys/wallet address.
You can start sending and receiving Bitcoin, Etherium, and Litecoin with your wallet account. However, if you want to buy cryptocurrency with fiat from Coinbase using your bank account or credit/debit account, you need to go through their payment verification process.
Blockchain.io is a block explorer for Bitcoin which allows everyone to see the status of every Bitcoin transactions ever made and are constantly being made in real time. To provide Bitcoin users, traders, and miners with an online wallet to store their private and public keys, they’ve also introduced their own Blockchain Wallet for Bitcoin.
(Update: as of August 2017, Blockchain began supporting Ethereum.)
Blockchain Wallet generates your private and public keys when you sign up to their online wallet service. However, unlike Coinbase, Blockchain allows users to export/import their private keys.
To create your online Bitcoin wallet account, go their signup page and type in your email address and a strong wallet password. A popup notification will inform you that your wallet and wallet ID has been created, followed by a welcome message.
(Note: your wallet ID is different from your wallet address/public key. This is just a series of numbers and letters that you’ll use every time you log in to your Blockchain Wallet account.)
Check your email and click ‘YES THIS IS MY EMAIL’ to complete the setup.
Installing a Desktop or Mobile Wallet
Desktop and mobile wallets require you to download and install the app on your device. They are considered more secure than online wallets because your private keys are stored within the device and have backup features.
Some desktop and mobile wallets are ‘open source’ which means tech-savvy wallet users can see exactly how the wallet works under the hood. Depending on how you look at it, open sourcing a wallet can be good or bad (e.g., transparency vs. phising/hacking, etc.).
Here are the steps on how to install an Exodus desktop wallet and Jaxx mobile wallet.
Exodus is one of the popular multi-currency, desktop wallets available online. It’s compatible with Windows (64-bit), Mac, and Linux, has backup features.
Download and install the app to your computer. Read the onscreen popups and click OK. You can start using your wallet to send and receive currencies. To buy cryptocurrency with fiat, you may open an online wallet account like Coinbase, or an exchange account like GDAX or Poloniex.
Jaxx is an open source, multi-currency, mobile wallet and is compatible with Android and iOS. It also doubles as desktop wallet when installed in Windows, OS X, and Linux.
Go to Google Play or iTunes on your mobile device and search Jaxx Blockchain Wallet. Download and install the mobile app.
To set up for first use, choose Create Wallet and use the Express Setup. If want to pair this wallet with your laptop or PC, choose Pair/Restore Wallet and enter the 12-word Backup Phrase. You can see your Backup Phrase in Menu>Tools>Backup Wallet>View Backup Phrase.
Caution: view your backup phrase only when necessary and make sure no one else is looking. People can use your backup phrase to re-generate your wallet on their device and have access to all your funds.
Setting up a Hardware Wallet
Hardware wallets like Trezor and Ledger Nano S are considered the most secure of all types (excluding paper wallets). However, they’re not cheap and setting them up are not as easy as as the other types of wallets.
To use your hardware wallet, you need to hook it up to a computer or mobile device using the the USB cable that comes with it.
Here are the steps in setting up your Trezor and Ledger Nano S wallet.
Before setting up any kind of hardware wallet, check for any sign of tampering to make sure it runs completely free of any third party software or hidden app.
Go to wallet.trezor.io on your browser and plug in your Trezor wallet. Type in your Device Label and enter your 4-digit PIN.
To be able to restore your accounts in case of damage, loss, or theft, you’ll be required to write down the 24-word recovery phrase on a piece of paper or the small booklet that comes with it. Enter your PIN to complete the setup.
Trezor currently supports Bitcoin, Ethereum, Ethereum Classic, ZCash, Litecoin, Namecoin, Dogecoin, Dash, and all ERC-20 tokens.
Setting up a Ledger Nano S is a little different from Trezor, but the process is essentially the same.
Here, you’ll be using the two buttons and the LCD screen of the hardware wallet.
Plug in the device on your laptop or PC and choose between configuring a new device or not. Choose yes (P) and type in your new password twice.
Next, you’ll be asked to write down the 24-word recovery phrase to backup your wallet. After scanning and writing down all the words, your device is now ready to use.
To use more features for your Ledger Nano S, connect your hardware wallet to your laptop or PC, go to their download page and choose between wallet apps and management apps for your Ledger Nano S.
It currently supports 18 currencies including Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Dash and Litecoin.
BUYING FROM AN ONLINE WALLET
To get the feel of having your own assets stored in the cryptocurrency network, you need to need to buy them with fiat currency.
For Coinbase, you need to add a payment method by going through their payment verification process, after which you can start buying Bitcoin, Ethereum, and Litecoin using your credit, debit, or bank account.
Buying cryptocurrencies with fiat will incur some fees (4% when using credit/debit account, and around 1.49% with bank accounts).
This feature is available only in 32 countries including Canada, UK, and Australia.
BUYING FROM AN ONLINE EXCHANGE
People can buy cryptocurrency directly from online exchanges. GDAX is an online cryptocurrency exchange run by the same company that operates the Coinbase online wallet.
Buying from GDAX also requires identity and payment verification process via Coinbase. To start buying, you need to fund your GDAX with your account balance from Coinbase, bank account, bank wire, or BTC address.
Some users can get away with paying less (or zero) transaction fees when buying their cryptocurrencies from online exchanges like GDAX. However, it also comes at the expense of speed and convenience.
To keep your currencies safe, you may choose to send them to your desktop, mobile, or hardware wallet after accumulating a substantial amount from exchanges. It’s always risky to keep your currencies in exchanges.
BUYING FROM A MARKETPLACE
Paxful is a popular cryptocurrency market for Bitcoin buyers and sellers online. However, unlike exchanges, buyers and sellers can interact with each other and negotiate with the price and payment methods – it’s basically an online marketplace.
The most commonly used method is through PayPal and uses Escrow for secure transactions. Buyers can narrow down their search when buying a particular amount of Bitcoin.
Interested in mining? Learn the basics of cryptocurrency mining at CryptEdu.com or start hassle-free cloud mining at Cryptmin.com today.