Bitcoin Cryptocurrency Exchanges
Sound Wisdom & Solid Advice for All New Bitcoin Investors
Welcome to the wonderful world of Bitcoin!
If you are just now getting involved in the world of cryptocurrency, you have chosen a great time to start. As you may be aware, the world is only just beginning to embrace digital currencies as a method of wealth transfer and money receiving. Let’s dive in to your very first steps as a Bitcoin Investor.
Your First Bitcoin Purchases – Investing Small
The first problem many new investors encounter is feeling as if they need to invest a substantial amount. This is primarily due to a psychological pull that compels investors to commit something that could potentially make one a great profit. The drawback with this approach is that an investor may wait too long to get involved. The price may increase and they will feel as if they, “missed their opportunity.” You would be surprised how common this is!
To combat this, you should consider making your very first investment a small one. While it seems a bit lackluster, a small initial investment opens the doors to more frequent and larger investments. By investing small you eliminate the hesitation that prevents most other investors from getting involved in Bitcoin and other cryptocurrencies.
Approaching your long term Bitcoin holdings this way, you can think of investing in terms of, “How many small investments mush I make in order to get where I want to be?”
Another reason these small Bitcoin purchases are beneficial is due to the influence that fear and emotions play when it comes time to putting your money on the table. As mentioned, it’s easy to get caught up in the ideal that you must make your first investment significant. This is a purely emotional belief. There’s nothing beneficial at all by making your first investment a substantial one!
As a long-term Bitcoin holder, you must do all that you can to eliminate negative (or greed influenced) emotions from your state of being. Emotional investors trust their “gut feeling” and often make foolish, un-recommended mistakes. Too many investors share the story on forums of that time they ‘felt’ the market was going to crash and cashed out. What happened? You can guess it. The market did quite the opposite.
Perhaps even worse are the stories of Bitcoin investors feeling that the market was going to make a sharp up-swing (increase), so they broke the #1 rule and invested what they did not have available. These folks took out loans, borrowed money from friends or family, cashed out on an auto loan or mortgage, and put all of their earnings in Bitcoin. While a small few got lucky and managed to make a profit, most others suffered tragic fates of ruined relationships, legal troubles, bankruptcy, and more.
Avoid The Traps of Selfish Thinking & Impulsive Action
The greatest feeling/thought to watch out for is the one that says, “You must act now or it will be too late!” Following this feeling will get you in serious trouble. Avoid it at all costs! It’s quite easy for you to focus on those rare success stories of people making an investment move and getting rich overnight. This is simply not the reality you should put your faith in.
Any Bitcoin fanatic who gets in it to “get rich quick” is in it for the wrong reason, guaranteed. Bitcoin and cryptocurrency is not a get rich quick scheme. By doing so you’re not only putting yourself at risk, but you’re sending out the wrong message to other new Bitcoiners. Your initial reaction to these get rich quick stories on the news, media, and blogs should be “they got lucky!” Any large and substantial investment is the equivalent to putting an uncomfortably large sum of money on a roulette wheel table in the casino and hoping to quickly double your fortune.
Having Fun & Investing Short-Term
Absolutely. Don’t read this and think that you should avoid having fun at all costs. We live in an amazing world of technological and financial progress. There are indeed areas where you can ‘live a little’ and have fun. For example one of the most sought after investing tactics is day trading.
Day traders will keep a constant eye on the market, continuously buying and selling throughout the day. Some pick up small portions of profit; others will have tremendous success. If this sounds like something that interests you, do many hours of research before you deposit your first investing funs. And, most importantly, decide if this small sum is something you’re okay losing if you make a mistake or read the market improperly.
Day trading is quite the exhilerating experience. However, this method of investing should be treated like penny slots rather than a high-rolling blackjack table. A good figure to follow when it comes to day trading is to start out using 2% of your investment pool to day trade, and use the rest in long-term Bitcoin investing. That way, if you lose it all, it will only be a small ding in your portfolio. If you experience great success, you can recoup your initial investment and apply 1-2% more to day trading.
Day trading doesn’t have to be so fast-paced. There’s another type of investing that is in between short- and long-term trading. These investors will buy when they feel the market is in a ‘bubble’ (that is, when it’s too high for what it’s worth – and sell when they feel the price will shortly increase. These tranders will place a buy/sell order once every day, or every week, or even every few months. Like day trading, they’re not putting down a substantial sum of money; they are also playing safe by designating only a small portion to their very liquid investment portfolio.
Final Words: Enjoy the Wild Ride
If you’re like many Bitcoin enthusiasts, you see this digital currency as something that will be a core foundation of finance in years to come. You believe that the blockchain, anonymous wealth transfer, and electronic wallets will only grow and become more commonly used.
Therefore, even if you are a short-term trader, don’t take your eyes off the future. Don’t let your short-term gains inhibit your long-term growth. Enjoy this growing world of cryptocurrency. Take time out of every week to do research on the latest developments.
Understand what pitfalls and obstacles are coming in the near future. Practice explaining Bitcoin and cryptocurrency to people who do not know much about them. As you learn for yourself, set aside some time to educate others as well.
This will also benefit you by reinforcing core concepts of digital currencies that are cemented as you educate others. If Bitcoin truly is the future of finance, you’ll want to be well-equipped to serve as a leader in the coming new age of digital currency.
It’s time to get hard-core bullish!
The latest report by the investment giant Fidelity that has entered the crypto space with its Fidelity Digital Assets has shared interesting and bullish research that states institutions are very much active in the crypto space and in the next five years, it will further increase.
Conducted by Greenwich Associates, the research took place between the period of November 2018 and February 8, 2019, that covered 441 institutional investors in the US. The time period involved is of importance here as well as this has been at the time when Bitcoin was already down about 70 percent and further dropped to its yearly low.
Institutions ‘overwhelmingly Favorable’ about Appealing Characteristics
The research finds that institutional investors are “overwhelmingly favorable” about the appealing characteristics such as technology and low correlations to other assets of the digital assets.
- About half of respondents (47%) appreciate digital assets as an innovative technology play
- 46% find digital assets’ low correlation to other assets among the most appealing characteristic
- Financial advisors (74%) and family offices (80%) view the characteristics of digital assets most favorably
Source: Fidelity Digital Assets
Four in Ten Open to Future Investment in Cryptos
The survey reveals that about 22 percent of institutional investors already have some sort of exposure to digital assets. Most of the investments have been made within the past three years only.
However, the future is bright as four in ten respondents say they are open to future investments in digital assets over the course of the next five years.
But what's most interesting is nearly half that is 47 percent of the institutional investors view digital assets as something that has a place in their investment portfolios.
In response to his huge number of institutional investors interested in cryptos, Bitcoin bull Tom Lee says, “@DigitalAssets (Fidelity) carries institutional credibility that will help many of these institutions to make that crossover.”
However, the preference to hold digital assets vary, with 76 percent of institutions survey stated security and safety as the most important considerations when considering custodian services.
The momentum is building!
The interest is ever growing from different fields as the company has been seeing interest from endowments, pension, foundations, and family offices over the past several months.
The research also reveals that institutions are more aware of regulatory and investment developments more than they were six or twelve months ago.
Did you know that Bitcoin ATMs exist? And if you do, would you know how to use one?
If you’re unsure of either of these questions then you have come to the right place. In this guide, we’ll go over how to use a Bitcoin ATM and how to buy and sell Bitcoins using them. We’ll also go over some key factors on how to locate the nearest Bitcoin ATM near you.
But before all of this, it’s important to take you through a quick introduction of Bitcoin ATMs in general.
What Are Bitcoin ATMs?
Bitcoin ATMs are similar to traditional ATMs that print out fiat currencies. However, unlike traditional ATMs, Bitcoin ATMs let you withdraw Bitcoins instead of fiat dollars, yen, pounds etc. Some take step further by allowing you to convert Bitcoins into fiat currencies, and some work the other way too.
A key feature of Bitcoin ATMs is that they let you buy and sell Bitcoins without requiring any personal information. There is no KYC or AML compliance needed to operate a Bitcoin ATM, which can make them a great way to keep your identity private.
However, there are costs involved when using a Bitcoin ATM too. Bitcoin ATMs generally charge a fee of 7-10% for each transaction, which is money well spent by some people’s standards.
In order to use a Bitcoin ATM, you’ll need to find one first, which can be a challenging obstacle because of the spare numbers of Bitcoin ATMs.
How To Find A Bitcoin ATM Nearest To You
Using the Coin ATM Radar service, you can easily find the nearest Bitcoin ATM closest to your current location. This also allows you to search for Bitcoin ATMs in other neighbourhoods and even other countries if you plan to travel overseas.
Through using the Coin ATM Radar service, it gives you the following benefits:
- Find the nearest ATM on a map
- Search for the closest ATMs in your vicinity
- See all the relevant details about the Bitcoin ATM, including fees, limits, and type of ATM (buys and sells or buy or sell only)
- Get directions from your current location to the desired ATM
How To Use Coin ATM Radar Service
To use the Coin ATM Rader service, go through the following steps:
- Navigate to the Coin ATM Radar Service website and look at the live map that displays a list of ATMs that are in your present location
- Add your location and city and then click search ATMS
- Choose your nearest ATM and click on it to see the details
- Click ‘Get directions’ to get a Google maps overview for the location and directions
Now that you are aware of how you can find a Bitcoin ATM, let’s go over how to actually use a Bitcoin ATM for both buys and sells.
How To Buy And Sell Bitcoins Using An ATM
Selling or buying Bitcoins through an ATM is not always easy as there are various kinds of Bitcoin ATMs in circulation.
Below is a list for the different types of Bitcoin ATMs that you’ll see around the world
- Genesis1 Bitcoin ATM
- Satoshi1 Bitcoin ATM
- Satoshi2 Bitcoin ATM
- Lamassu Bitcoin ATM
- Lamassu with Santo Tirso
- BATM2 Bitcoin ATM
- BATM3 Bitcoin ATM
- BitAccess Bitcoin ATM
- BitXatm Bitcoin machine
- Robocoin kiosk
- Skyhook bitcoin machine
Do not let the above list intimidate you. There are numerous YouTube videos that you can access for free to give you an overview of how to use each Bitcoin ATM.
How To Buy Bitcoins Using The Genesis1 Bitcoin ATM
- Click on the Buy Bitcoin Button
- Then chose your coin, which in this case will be Bitcoin
- Scan your QR code
- Scan the QR code of your wallet
- Insert your money
- Then press finish
- Remember to take and check your receipt
How To Sell Bitcoins Using The Genesis1 Bitcoin ATM
- Select the withdraw cash option
- Select Bitcoin
- Then enter the amount that you wish to withdraw
- Send the desired amount of Bitcoin to an address or scan the QR code from your mobile wallet
- Take out your cash
- Again, remember to take a receipt and double check that you sent the right amount of Bitcoin and to the right address
Buying Bitcoins Using Lamassu Bitcoin ATM
- Scan the desired Bitcoin address
- Insert your dollar bills
- Select the send Bitcoins option
How To Buy Bitcoins using BitAccess Bitcoin ATM
- Select start
- Then enter your phone number (mobile) to continue
- Confirm the verification code delivered to your phone number
- Now scan the QR code of the Bitcoin address that you wish to receive your Bitcoin to
- Enter fiat dollars
- Now your coins will be sent if it is a valid Bitcoin address
Bitcoin ATM Summary
Operating a Bitcoin ATM is a simple case, as long as you are close enough to use one.
But a word of caution: some ATMs need you to scan your identity documents such as a passport or drivers licence. The ATM may also ask for a phone number to comply with KYC laws. However, this will generally only happen in the case of a large amount of Bitcoins.
As stated previously, there is not a huge number of Bitcoin ATMs to choose from and some of them can only be used to either buy or sell Bitcoins, as ATMs that do both are very hard to find.
To get around such hurdles, there are a few different kinds of Bitcoin ATMs that you can use to sell your Bitcoins that sit in a remote wallet You can then withdraw those coins for cash once the transaction completes from the nearest Bitcoin in your location.
A minority of ATMs even support Bitcoin virtual debit cards, which means you can withdraw fiat cash in case you need while overseas. This could help eliminate some of the stresses and troubles of exchanging your money while abroad.
Over the next few years, it’s likely that the quality and number of Bitcoin ATMs will increase and that we will witness different kinds of ATMs in various parts of the world, just like we saw with traditional ATMs.
If you've done your homework on investing in cryptocurrency, you probably know that you need to choose an exchange to facilitate your transactions. Many are available to choose from, each employing a different fee structure, cryptos available to trade, and deposit mechanism. The list below details five of the most popular exchanges along with some of the pros and cons of each, enabling you to make an informed decision on which one you should use.
CoinBase
CoinBase, often recommended as a beginner's first cryptocurrency exchange because of how easy it is to use, has an extremely beginner-friendly interface. You can link a bank account or credit card to fund your transactions easily, and withdrawals may be paid to your bank or Paypal account, making cashing out hassle-free. Money deposited in your account is also insured, a feature that no other exchange can currently claim.
All of these conveniences come with trade-offs, however. The site charges transaction fees of up to 3.99% per trade on accounts funded with a credit card, and even bank-funded accounts are subjected to a relatively high 1.49% fee. CoinBase only trades in Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, leaving more daring investors with limited selections. Finally, spending caps limit how much investors may spend on the site per week.
Gemini
Investors interested in crypto is as a short-term investment opportunity, Gemini may be the exchange for you. The site charges minuscule transaction fees of a quarter of a percentage point per trade, with no added fees for deposits or withdrawals. This exchange also offers the convenience of linking a bank account to fund your crypto purchases with traditional currency. Users can start trading before their deposit clears, although they will not be permitted to cash out until it does.
The most significant downside is a stark lack of choice: only Bitcoin and Ethereum are available at the moment. There is also a $500 weekly spending limit that there is no way to work around, limiting the amount you can invest at a time.
Bittrex
Bittrex is a true cryptocurrency exchange with an interface that will feel immediately familiar to anyone who has traded stocks in matching pairs on a Forex exchange. It offers over 190 tokens to choose from, virtually ensuring that all altcoins are available. The site's fees are also very reasonable, matching Gemini's for most trades.
The most substantial negative for Bittrex is how intimidating a Forex system looks to somebody who has never used one. There is also no way to exchange fiat currency for crypto on the site, forcing users to have an account on another platform such as CoinBase or Gemini to purchase crypto for transfer to Bittrex.
BitStamp
BitStamp is sometimes referred to as Europe's CoinBase because it is the most popular, beginner-friendly exchange for the European market. Investments funded with a SEPA account have no deposit fee, a flat 0.90 EUR withdrawal fee, and affordable transaction fees. The platform offers affordable rates to users outside of Europe as well, but the greatest appeal here is for Europeans.
BitStamp has a fair selection, including Bitcoin, Ethereum, Ripple, and Litecoin. Users are advised to avoid their credit cards when funding their accounts. Transaction fees on credit card purchases range from 5% to 8% based on the amount of the deposit, and investors want no part of that.
Kraken
Kraken offers 16 tokens to choose from, including Z-Cash, Monero, Ripple, and Dash as well as industry stalwarts such as Bitcoin and Ethereum. It has a Forex-style interface comparable to Bittrex but allows users to link a bank account to fund their transactions as well. Fees vary based on the trading pair, but most are less than .36%. This platform supports advanced trading options such as leverage trades, stop limits, and conditional closes that make it ideal for the expert crypto trader.
Deposits need to clear before users can start trading (about one to five business days), with no option to lock in current pricing. Users must also provide their legal name, date of birth, country of residence, and phone number to make bank deposits or withdrawals.
Parting Words
The lack of customer support is a failing across all cryptocurrency exchanges right now, so bear that in mind if you have a problem. While all of the platforms above are trusted in the space, many others are plagued by hackers or set up as Ponzi schemes. BitConnect recently closed down amid allegations that it was more of a scam than a legitimate exchange, so make sure that you research any site thoroughly before funding any account.
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