FAQ

Bitcoin

Bitcoin is the world’s leading digital currency or cryptocurrency. It allows peer-to-peer payments online with no central authority (like a central bank). As a digital currency, there are no coins or notes – everything is electronic.

Read more about What is a Bitcoin?

A growing number of businesses accept Bitcoin, many of which are high profile. Among the most high profile are:

  • Microsoft
  • CheapAir.com
  • Subway
  • Reddit
  • Bloomberg.com

Read about Places you can use Bitcoin

There are essentially two ways to buy Bitcoins – on exchanges or directly from other sellers on online marketplaces. The best place to go are exchanges, which our site seeks to rate on a regular basis. Different exchanges offer different terms, so be sure to shop around.

Once you’ve purchased some Bitcoins, you’re going to need somewhere to store them: A Bitcoin wallet (see below).

Read about: How to buy and use Bitcoin?

Even if there aren’t physical coins and notes for Bitcoin, you’ll still need a wallet. The wallet provides security for your Bitcoins. There are different types of wallet, which essentially break down as:

  • A multisig wallet that uses several keys to provide protection to the wallet
  • An online based wallet service
  • A software wallet, which you can download to your computer’s hard drive

All of the three variables are very safe but not 100% so. However, look at this way: even the internet banking provided by your bricks and mortar bank isn’t 100% safe.

Read about: Bitcoin Wallets

Selling Bitcoins is pretty much the same process as buying them, with the only difference being that you’re taking the other side of the transaction. Ideally, you could use a Bitcoin ATM if there’s one relatively nearby. Otherwise, online services such as BitQuick, CoinBase and Circle allow efficient payments for Bitcoins online, providing escrow systems so that both sides of the transaction are satisfied.

Read about: Bitcoin selling

Bitcoin is very safe and becoming safer all the time. The fact that the technology that underpins it, Blockchain technology, is currently being developed by investment banks for their in-house transactions tells you everything.

Read about: Is Bitcoin safe?

Bitcoin is the currency…Blockchain is the technology that makes it all possible. So, while Bitcoin is just the most well-known digital currency (or “cryptocurrency”), Blockchain is the technology that allows all of those digital currencies to function.

Read about: Difference between Bitcoin and the Blockchain

Here’s the thing; because Bitcoin is a digital currency, the only governments that tend to ban it are those that fear it has the potential to replace their own currency (they give different reasons, but this is essentially the motive behind banning it in most countries). That said, the government of South Korea is preparing to ban Bitcoin too. The full list of countries to have banned Bitcoin reads as follows:

  • Algeria
  • Morocco
  • Bolivia
  • Ecuador
  • Kyrgyzstan
  • Bangladesh
  • Nepal

Read about: Bitcoin legality

Governments in many countries have begun to see the potential in raising tax revenue from Bitcoin traders. So far, the countries which Bitcoin can definitely be taxed (although you should check your country’s tax code to confirm) are:

  • The United States
  • United  Kingdom
  • European Union
  • Israel
  • Singapore
  • Japan
  • Norway
  • Australia

Read aboutPaying taxes on bitcoin

As mentioned above in the “How safe is Bitcoin” section, Bitcoin is very safe but for the more security conscious out there, the best way is to store Bitcoins in a hardware Bitcoin wallet, which isn’t connected to the internet. Hardware wallets like the Trezor or Ledger Nano S are relatively cheap and easy to set up.

Read aboutHow to protect and keep bitcoins safe?

There are now enough exchanges to ensure that Bitcoin is very liquid indeed. It shouldn’t take more than a couple of hours to convert your Bitcoin back into regular currency (including the confirmation wait).

Read aboutHow to convert bitcoin back to my local currency?

Yes, you can. You’ll just need a supercomputer and lots of patience.

Read about: How to mine your own Bitcoins?

Bitcoin isn’t a safe investment; it’s a high-risk, high-reward asset. It could well provide an interesting minor part of your investment portfolio if it was combined with treasuries, corporate bonds and other safer investments.

Read about: How to invest in bitcoin?

Transaction fees vary, but are typically anywhere between $10 and $30.

Read about:  Current bitcoin transaction fee

Let’s put it this way – Bitcoin is more anonymous than any other type of money transaction. Although there are ways and means of getting around its anonymity (hacking, for instance), Bitcoin users create anonymous addresses and identities and don’t disclose them to other users. As such, it’s sometimes referred to as being ‘pseudo-anonymous.’

Read about: How to buy bitcoins anonymously?

Bitcoin has been in the headlines recently more than ever, and due to the rapid advancement of the cryptocurrency sector, more people than ever are interested in getting to know how to buy and sell Bitcoin in the United Kingdom. It is worth noting that buying bitcoin in the UK is very similar to buying bitcoin in the US.

Read about the Best ways to buy bitcoins in the UK

Ethereum

Although the blockchain technology is commonly associated with Bitcoin, it has many other applications that go way past cryptocurrencies. Bitcoin is in fact, only one of several hundred applications that use blockchain technology today.

Read about: Ethereum cryptocurrency

An anonymous developer (or group developers) came up with a new way to send value over the internet in 2008, and that innovation is what is now globally known as bitcoin.

Read about: Ethereum creator

At first glance, it would seem Paypal and Bitcoin are made for each other. Paypal is a well-organized platform which was designed for transferring money simply and quickly over the Internet without the use of financial emissaries.