How does bitcoin work

How Bitcoin works – The Most Effortless Explanation

This is how Bitcoin works

Bitcoin works like any digital currency system except there are no middle men such as banks or wire transfer services .Bitcoin is a network as well as a cryptocurrency and this network is called the Blockchain. Blockchain Technology is a type distributed ledger system and bitcoin is the first successful use case of the this technology. This technology was chosen because once information is entered, it can not be modified nor double spending.

Sending and Receiving Bitcoins

You can store your Bitcoin in a cryptocurrency wallet.

(I recommend Exodus for beginners).

All you need to do is enter the amount of Bitcoin and the recipient’s wallet address to send out Bitcoin.

This is also called the Private Key.

How a transaction with bitcoin works?

Each time a user sends Bitcoin to another user, the transaction gets sent to the Bitcoin Blockchain.

Other users all around the world who are on the network then validate the transaction.

The network then approves the transaction and the recipient receives the Bitcoin.

The transactions get registered on the Blockchain.

Once added to the blochain, it is very difficult to modify.

Decentralization Explained

Bitcoin is decentralized meaning you can send and receive Bitcoin to anyone around the world within minutes.

You can also send large amounts of Bitcoin anonymously without any fiscal limitations.

And the transactions may costs only a few cents in some cases.

Consequently, transfers are cheaper as well as faster as because there is no middleman.

How does bitcoin work

Why is it called CRYPTO currency anyway?

Crypto stands for cryptography which is the technology to encrypt the transactions.

The BlOCK in blockchain

Each time time a user sends bitcoin to another person, the transactions are bundled and encrypted into blocks.

This encryption is known as the hash.

how does bitcoin works on the blockchain
2668 Transactions are bundled together in this block (source: www.blockchain.com)

The CHAIN

The transactions are split to be verified by users throughout the network.

how does bitcoin work
Transactions are verified by computers from all around the world (source: www.blockchain.com)

The transactions are then rebundled together.

Each ‘block’ of transaction is added to the existing chain of blocks.

How does bitcoin work- how does blockchain work
Validated blocks are added to the existing blocks

How is bitcoin priced?

Market supply and demand are the main factors which determine the price of bitcoin.

The government can not influence the price Bitcoin..

Who are the people selling Bitcoin?

The people selling Bitcoin are miners and cryptocurrency traders.

how does bitcoin work

Miners are the ones who create new bitcoins.

How are bitcoins created?

Remember how I was explaining how bitcoin transactions are processed?

Well, each time a block of transactions is verified, the miners receive bitcoin as an incentive

This is also what powers the blockchain.

Here is a more indepth explanation of how cryptocurrency mining works

Why is everyone saying Bitcoin mining is a waste of Energy?

Bitcoin uses an encryption algorithm called SHA-256 hash.

In very simple words, Sha-256 is a proof-of-work algorithm.

This simply means that the miners have to ‘work’ to confirm a transaction.

The Bitcoin Mining Process

The job of the miner is to decrypt and validate a transaction.

What they do exactly is they  guesses until someone finds the correct answer.

The first user to find the answer gets the bitcoin as reward.

However, the competition to earn the Bitcoins first increases as more users enter the network.

As a results, the miners invest in more powerful and energy hungry computers to process transactions.

The Energy Waste

There powerful computers are know as ASICS and require a lot of energy.

As a result many governments have banned cryptocurrency mining due to their impact on local energy costs.

Can’t they just use another Algorithm?

Yes!!!!

These are called Altcoins.

Popular altcoins include Litecoin, Dogecoin and Potcoin.

Altcoins

As mentioned above, bitcoin uses an algorithm called SHA-256 which also uses a lot of energy.

Many programmers see the proof-of-work not only as a waste of energy.

But they also believe that they can increase the speed of transactions.

Thus began the quest for the fastest and cheapest Altcoin.

This resulted in software updates also known as forks.

New software updates sometimes require new infrastructure which is why sometimes there are free coins and other times not.

Are there other ways to get Bitcoin?

Yes, you can buy Bitcoin on cryptocurrency exchanges.

Some exchanges such as Coinmama, allow you to buy Bitcoin instantly with a Debit or credit card.

Coinmama is very user friendly unlike many other exchanges, so feel free to create a free Coinmama account to check it out or you can check out my Coinmama Review

How do I store my bitcoin?

A cryptocurrency wallet is where you store your Bitcoin

The difference between cryptocurrency wallets versus traditional digital wallets is the fact that there is no middle men.

So this means that you are responsible for the security of your bitcoin.

I recommend using Exodus which a desktop based multi cryptocurrency wallet.

It takes only a few minutes to install and it is completely free.

How do I secure my bitcoin?

To secure your bitcoin wallet you need to create a hard copy or “paper wallet” so you can recover your password in case your computer crashes.

As cryptocurrency exchanges are hackers favorite targets, it is therefor not advisable not to keep your cryptocurrency on an online exchange.

To find the best cryptocurrency wallet suited for you, check out my article on the 5 Cryptocurrency Wallets Everyone ought to know about.

Protip: Never ever give your private key to anyone – Your private key is like an login integrated with a password.

What does a Bitcoin look like?

In fact, a bitcoin looks like a transaction attached to a person.

how does bitcoin work- how does blockchain work
What a Bitcoin REALLY looks like (source: blockchain.com)

In other words, Bitcoin is the transfer of value from one person to another

Why don’t banks like Bitcoin?

The main reason banks don’t like Bitcoin is because they usually have very strict regulations to follow.

Also,they can not do business with certain countries.

The problem for government and banks is anybody can send or receive bitcoin to countries which were inaccessible to receive money such as Iran, North Korea due to sanctions.

Bitcoin allows people to bypass these trade sanctions among countries.

That being said, many banks are investing in blockchain technology because of the security it brings as well as the cost saving potential.

Final Thoughts

The only way to truly understand Bitcoin and decentralization, you will need to buy your first BTC.

Let me know if this info was helpful for you 😉
Cheers,
Marie

Founder of Satoshi Library

Owner of SatoshiLibrary

PS

Thank you for visiting!

And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

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mine bitcoin with a laptop or computer

CPU Mining: The most painless ways to mine cryptocurrency on a pc

Getting started with CPU Mining

CPU mining means using the central processing unit on a computer to mine cryptocurrency. Cryptocurrency mining on computers originally started with bitcoin(BTC) mining in 2009 when it was lesser known. Though it is no longer profitable to mine bitcoin from a simple computer, and this will likely blow up your computer, there are a few lesser know coins which were created specifically to be ASIC resistant in order to be efficient for computer mining.

Understanding cryptocurrency mining

If you are new to cryptocurrency mining,  let’s cover some basics before we move forward…

The word crypto is derived from the word ‘cryptography’ which is defined by Wikipedia, ‘The art of solving problems’.

This also known as ‘encryption’.

For a more in-depth explanation of how cryptocurrency mining works, check out this article on How cryptocurrency mining works?

Proof-of Work

Each cryptocurrency runs on a network (or blockchain) and each network uses different set of rules(algorithms) to verify transfers.

The job of the miner is to decrypt the algorithm and in the case of Bitcoin, the miners submit a maximum of guesses to solve the problem first.

This is called as Proof-of Work.

Proof of Work vs Proof of Stake

Unlike the proof-of-work system, the proof-of-stake system awards the cryptocoins based on the amount of coins owned by the miner which consequently require less computation power.

Wikipedia describes the different types of proof-of-stake algorithms.

Energy Wastage

As Bitcoin mining becomes more energy demanding and increasing electricity prices in some towns, many consider Bitcoin mining as a waste of energy as well as unsustainable.

Many believe proof-of-stake is the future of cryptocurrency mining.

The Guardian reported that in November 2017, the Bitcoin network consumed more power than the Republic of Ireland.

Why should you care?

Satoshi Nakamoto and a group of individuals created Bitcoin as a decentralized digital currency.

Greed would be used to motivate people to support the network.

However, over the years, more efficient as well as powerful mining machines called ASIC miners were created.

And the problem is the companies manufacturing the machines were also mining the coins thus centralizing Bitcoin.

Choosing which cryptocurrency to mine

The best place to start is by eliminating all the coins that you can not mine.

Which coins not to mine on CPU

Go the Bitmain Website and go through all the algorithms.

There are many popular cryptocurrencies such as Dogecoin and Litecoin which claim to be CPU mineable.

Just because you can, doesn’t mean you should.

However, the likelihood of you ever earning any cryptocoins from a simple computer is very unlikely.

Option 2:

Once you have found which coins not to mine, then you want to go to Coinmarketcap and filter out the non-mineable coins.

Cryptocurrencies which have failed to become ASIC resistant

  • Litecoin (Script)
  • Dash
  • Ethash
  • Equihash

Smart Contracts and ERC20 tokens

ERC20 tokens are smartcontract templates and were made popular by ICOs.

You might also hear the word ‘premined’ in some instances, but don’t be fooled.

These tokens are powered by Ether gas and can not be mined.

Understanding Algorithms

In very simple terms, cryptocurrency algorithms or hashing algorithms determine how the coins are verified.

The more miners the increased mining difficulty.

Pro Tip: You want to look for CryptoNight Algorithm Coins

CPU Mining Cheat Sheet

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CPU Mining

ASIC Resistant Coins

Ideally, you are looking for projects which are constantly releasing update and the founders are very vocal about being ASIC resistant.

Pro tip: Regular forks are usually a good example that the devs are taking on the ASIC war head on.

Check the vibe in the telegram group and ask the founders directly their thoughts on ASIC mining.

Several cryptocurrencies ASIC resistant but are open to GPUs (graphic processing unit)

If you are a gamer and already have the equipment,  you are looking for are the coins that can not be mined on ASIC miners.

Possible but not profitable coins

  • Script
  • Dash
  • Dagger Hashimoto – Ethash Algorithm

Getting Started

I am going to use Ultranote (XUN) as an example as they do regular forks to ensure that their coins always remain ASIC and GPU resistant.

Also, their coins are available on several exchanges.

Disclaimer: I am not being paid or sponsored by Ultranote or any of its affiliate- I just think it’s the perfect project for this tutorial;)

What you will need

  1. Wallet
  2. Paper and pen to save your keys
  3. Laptop or computer
  4. An exchange to cashout your XUN

Create your wallet

Go to Ultranote.org

Click Wallet or Scroll down towards the wallets.

Save the file to your computer.

mining cryptocurrency with a laptop

Extract the files from the Zip folder.

Then click on UltraNoteWallet as instructed in the Wiki.

If this does not work for you, like it didn’t for me, click on the folder called vcredistx64 first and it will install a Microsoft Visual Software ( I am using Windows).

Mining with a computer or laptop

You will get a brand new Ultranote wallet.

cryptocurrency mining on a laptop
Ultranote Wallet

The next step is to encrypt your wallet by clicking on Settings=>Encrypt

cryptocurrency mining with a laptop
Encrypt your Wallet

Wait for the Green check in the lower left hand corner for your wallet to fully sync with the blockchain.

cryptocurrency wallet synchronizing with the blockchain

This may take a while so I would recommend signing up to a cryptocurrency exchange in the meantime to cash out your Ultranote (XUN).

Ultanote can be cashed in Bitcoin at TradeOgre.com.

The sign up process takes only a few minutes.

For safe measure, remember to activate Google Authenticator.

Begin Mining on your Laptop or Computer

Best coins to mine on a CPU
Start mining

Earning your first crypto

Once you have earned enough crypto satisfy the minimum required by the exchange, hit the send button

Is CPU mining profitable?

It is important to remember that investing in any cryptocurrency is a high risk investment which makes cryptocurrency mining even more high risk.

Advantages of CPU Mining

  • CPU mining is good option to see if mining is for you before investing larger amounts of money.
  • This method allows a person to understand how blockchains work.
  • Anybody with a computer can mine.
  • There are some coins which can be mined only on CPUs.
  • Entering the market early.

Disadvantages of CPU Mining

  • It may burn your processor. (not recommended on laptops for certain coins)
  • Can easily become unprofitable as operational tend to be more than the coins received.
  • Many of the block rewards are worth only a few cents.
  • Some coins won’t become profitable until a few years.

The Truth

The reason many people become rich with cryptocurrency mining is because they did it to support the network and MOST IMPORTANTLY held on to their coins.

Consider Alternatives

If you are looking for a safer investment, consider simply buying cryptocurrencies and trading or holding them.

The right mindset

Many miners will say that cryptocurrency mining is about betting on the future value of cryptocurrency.

However, I believe that the best mindset is to simply support your favorite project and the same time learn how blockchain works.

Simply because it can take years before a cryptocurrency can become profitable and as there are so many cryptocurrencies, the odds of new cryptocoins succeeding are decreasing.

In other words, you are mining X con with hope that its value will increase in the future.

Biggest Mining Mistake

The biggest mistake you can do is count on forums or google to help you find coins.

Why?

Because by the time search engines have picked it up, it is usually to late

The shoe shine boy rule

Joe Kennedy famously became famously rich when he exited the stock market before the 1929 depression.

You know it’s time to sell them the shoe shine boy gives you stock tips.- Joe Kennedy

Because cryptocurrency is still in its early phases and has not reached the shoe-shine level yet.

This rule applies to cryptocurrency mining, because the less users the cheaper the mining cost and the less mining difficulty.

ASIC Mining has MORE risks

  1. ASIC mining companies control a majority of the mining power and can potentially, in very simple terms, reject single computers
  2. The more computing power, the higher the mining difficulty and the more energy required
  3. Small miners had to shut down their operations during the 2018 bear market because they could not mine other coins.
  4. Algorithm updates may cause an ASIC miner to become useless

ASIC resistant cryptocurrencies

Because of all these problems with Bitcoin, many people have been trying to create ASIC resistant cyptocurrencies.

Remember that no algorithm is 100% ASIC resistant and companies such as Bitmain have made it their mission to decrypt popular coins.

Hard Forks

A fork is similar to a software update.

For example,  1984 Macintosh   can not run the software of the IphoneX.

So some devs of the cryptocurrencies continuously update their algorithms to make to make the ASIC miners obsolete.

Give it a try!!!

And let me know how it worked out for you.

Many thanks to @nichopp from the Ultranote telegram group for answering my questions.

Keep me posted on your progress, 😉
Cheers,
Marie

Founder of Satoshi Library

Owner of SatoshiLibrary

PS

Thank you for visiting!

And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

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Library of Satoshi

Hashflare Review: Is hashflare legitimate? Payouts, ROI

The Ultimate Hashflare Review

Hashflare is a UK-based cryptocurrency cloudmining company. In this Hashflare review, I will be describing my experience with this company. Is Hashflare Legitimate? Was I able to get my initial investment back? How were the payouts? What I liked and what I disliked. And finally would I recommend this company?

Ready?

Let’s get started…

What is Hashflare?

Hashflare is the second biggest cloud mining company after Genesis Mining.

Cloudmining companies advertise themselves as a service which makes mining accessible to everyone without the hassle of investing in equipment as well as the maintenance.

How does Hashflare work?

In very basic terms, you buy hashpower (computing power) buy renting equipment with Hashflare.

Through mining contracts, the cloudmining company mines the cryptocurrencies on your behalf.

Then they deduct the energy and maintenance costs.

The remainder is pure profit.

Related: How does cryptocurrency mining work?

How does a Hashflare mining contract work?

A Hasflare mining contract is where you buy hashpower to mine a specific algorithm.

Then you choose algorithm.

Protip: Each cryptocurrency runs under an algorithm and one of the function of the miners is to decrypt the algorithm.

Once you have chosen the algorithm you would like to mine on, you need to choose the amount of hashpower you would like to buy and checkout.

Cryptocurrency Algorithms

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Hashflare then deducts the energy costs and maintenance fees.

As soon as you get a paid you can either reinvest it in the website to buy more hashpower or wait until you reach the minimum payout before you can withdraw to your wallet.

Top 3 things to check when buying a contract

  1. Contract duration
  2. Maintenance cost
  3. Minimum Payout

Is Hashflare Legitimate?

Hashflare LP is a cloud mining company based in Edinburgh, Scotland.

It has been in business since 2015 and created by specialists from Hashcoins.

It is the second most popular cloudmining service after Genesis Mining.

According to its website it has 2,500,000 users worldwide.

They also have quite a huge following on social media.

Are they legit?

They are definitely legitimate.

However, it is important to remember that cryptocurrency prices are extremely volatile.

Investing any website is riskier than just buying the cryptocurrency and holding on to it.

Whether they are a good investment is an entirely different story…

ROI/Payouts

I invested around $80 in the website with around $30 in transfer fees.

(The blockchain fees were crazy in 2017)

Hasflare payouts
What I purchased and re-invested

Compounding

As you can see from the above image, it won’t increase your payouts.

Is hashflare legitimate

Withdrawals

Hashflares makes it easy to reinvest.

But 12 months later, I have not been able to withdraw a single cent from this website.

hashflare withdrawals

Is Hashflare profitable?

Putting your money in this website definitely does not guarantee an ROI even any payouts.

hashflare review withdrawals payouts ROI

Will you get rich with Hashflare?

No 🙂

Why I decided to give Hashflare a chance

What I liked INITIALLY liked about Hashlare that they claimed to choose the most profitable coins to mine.

So I just needed choose the algorithm you want to mine on.

Sounded like a great idea.. right?

Wrong!!

The Great Bull Run of 2017

I have to admit that this sounded great at the beginning of 2017 when all the altcoins prices were shooting up and I couldn’t decide which coin to mine.

However, this turned out to be a problem as the cryptocurrency bubble burst.

The 2018 Depression

When the 2018 bear market hit, this turned out to be a problem.

As you get more comfortable with different cryptocoins and altcoins, as well as have a better understanding how cryptocurrency mining works, you will eventually want to be able to choose which cryptocurrenc you want to mine which Hashflare does not allow you to do.

Is Bitcoin mining is profitable?

Bitcoin mining is profitable in you plan on buying a lot of hashpower.

By a lot, I mean enough hashpower to compete with the big mining farms.

Bitcoin is the first cryptocurrency as well as the most popular.

The problem with being the most popular is that there already a lot of miners.

The more miners the higher the mining difficulty.

As mining difficulty increases, the costs also increases.

The Law of diminishing returns

It also important to remember that bitcoin coin generation halves every 4 years which increases the mining difficulty.

Bitcoin might have been profitable to mine from a basic computer in 2009 but if you intend to mine BTC, remember that you are competing with enormous mining farms.

Shady practices

September 2017

On September 1st 2017, Hashflare changed all the lifetime contracts to end them on August 2018

Ending Bitcoin Mining contracts

In May 2018, Hashflare announced to its users that it would be ending all Bitcoin mining contracts.

It then reactivated them after a huge backlash on social media

Genesis Mining vs hashflare
Hashflare cancels Bitcoin Mining Contracts and enforces user verification

Related: Genesis Mining Review

Investing or just gambling

Cryptocurrency mining is an even higher risk investment ask the miners are betting on the future value of the cryptocurrency in order to recup their initial investment.

So getting if you get into a “cryptocurrency investment” website, you’re leaving investment territory.

What you’re doing is gambling 😉

A safer bet is simply to buy bitcoin or you can check out this article which explore other cooler ways to get bitcoin.

Finally remember that these cloudmining websites don’t exist to make you rich…

Let me know if this info was helpful for you 😉
Cheers,
Marie

Founder of Satoshi Library

Owner of SatoshiLibrary

PS

Thank you for visiting!

And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

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How to get bitcoin

How to get Bitcoins? The TOP 12 WAYS to get BTC

How do I get Bitcoins?

To get Bitcoins you can Buy Bitcoins, you can Earn Bitcoins or you can Create Bitcoins. The best option for you depends on your time and budget. There are fast ways and easy,  however there is always a trade off: the faster you need them the higher it is going to cost and smaller the budget the longer its going to take. When you’re just starting out you might just be interested in getting Bitcoin fast but if you want to be respected in the cryptoverse and become a serious player, you should definitely learn how the professionals are bringing in the bitcoin.I have mapped out all the legit ways you can get bitcoins so you can choose the best option for you depending your budget.

How to get started with Bitcoin?

You can skip this step if you have already bought your first Bitcoin.

  • Step 1: Get a wallet to store your Bitcoin.

Cryptocurrency wallets have a receive and send address also known as public key and private key.

The private key is like the username and password of your wallet whereas the public key is similar to the email address your give out to receive email.

Related Article: Public Key vs Private Key

Note:that just like the dollar or Euro, you can buy part of Bitcoin for example: 0.05 BTC).

Step 3: Provide you receive address or public key.

Protip: Never keep your Bitcoin on exchanges because they are they favorite targets of hackers.

Step 4: Send Bitcoin to another person buy asking them their public key.

Step 5: Earn more bitcoin buy trading, mining or offering your services.

How to get a bitcoin wallet?

You can go to bitcoin.org or bitcoin.com to download a bitcoin wallet on your phone.

Otherwise, I would recommend going to Exodus.io to download a multicurrency crypto wallet which will allow you to store many types of cryptocurrencies rather than having one wallet for each currency.

Bitcoin vs BitcoinCash and why does it matter

Before moving forward, I think  you should know the difference between Bitcoin(BTC) and BitcoinCash (BCH)so you don’t accidentally use the wrong wallet.

Bitcoin (BTC) was created by SatoshiNakamoto and the first cryptocurrency ever created.

BitcoinCash(BCH) was created in 2017 and is a fork a bitcoin.

This is means that it similar to a spin-off or a different version.

For this reason, you can not store your BTC at the same address you are storing your BCH.

In very simple terms, imagine Bitcoin being the US dollar and BitcoinCash being the Canadian dollar, they are both currencies but are for different markets.

This confused me a lot when I was just starting out 🙂

Long story short: save yourself  from a potentially very expensive mistake and a lot of aggravation by getting a multicurrency wallet for beginners like Exodus which several cryptocurrency.

Exodus is completely free and you can set it up in under 5 minutes. You download the Exodus Wallet Here.

The lists starts with the fastest and easiest to option which takes the most time:

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Please include attribution to https://satoshilibrary.com with this graphic.

How to get Bitcoin

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Popular Ways of Getting Bitcoin

Cryptocurrency exchanges and trading platforms are the most popular and fastest ways to get bitcoin.

It is usually recommended that beginners start with exchanges and get their first Bitcoin to see how the technology works before moving to more advanced platforms.

1. Cryptocurrency Brokers

Cryptocurrency Brokers are companies or people which own bitcoins and sell it to you in fiat (USD/EUR) in exchange for a commission.

This is a great way for beginners to get bitcoins in under 15 minutes.

If your time is valuable and just want to get bitcoin fast without too much energy, this is the way to go.

The most popular cryptocurrency brokers  for beginners are Coinmama and Indacoin.

The great thing about these companies is that buying experience is similar to shopping.

The allow you to buy bitcoins with your debit card or debit card,

Buy bitcoin fast with Coinmama

1. Go to Coinmama.com and create an account . You can also use out affiliate link here:Coinmama

How to get bitcoin

2. Verify your email address and your identity.

As this Coinmama is offering financial services, you will need to provide proof of ID.

3. Enter the amount of Bitcoin you want to buy or the amount you want to spend

how to get bitcoin

4. Enter (VERY IMPORTANT) your bitcoin receive address

How to get bitcoins

Step 5: Enter your credit card info

how to get bitcoin

Wait a few minutes while the blockchain processes your transaction, remember that it IS decentralized.

The next alternative to Coinmama is Indacoin, which I have also tried, but I personally think Coinmama offers a better experience.

The advantage of Indacoin over Coinmama is that you can sell your Bitcoin on their exchange.

Coinmama also allows customers from the US to buy bitcoins with them.

Related article: CoinMamaReview

how to get bitcoins

2. Cryptocurrency Trading

Cryptocurrency exchanges allow you to buy and sell your cryptocurrency.

The biggest problem with cryptocurrency trading platforms is that the largest ones are usually open to new registration.

Cryptocurrency trading is not usually recommended for beginners unless you already have experience trading securities.

The most beginner friendly exchanges

  1. Coinbase
  2. Bitpanda
  3. Paxful

When I was just starting out, I found cryptocurrency exchanges extremely overwhelming so I would recommend starting with these 3 if you don’t like tech too much.

Cryptocurrency Exchanges

I will be using Paxful as an example because they have the most payment options.

Paxful allows you to buy bitcoin with credit cards, debit cards, Paypal and even Skrill.

  1. Go to Paxful.com or feel free to user our affiliate link.

And create a free account:

How to create bitcoin - cryptocurrency exchanges

Paxful also give you the choice to choose the best deal in their market place or they can do a search for you based on your preferred payment method.

how to get bitcoin -paxful review

Choose how much Bitcoin based on the payment method.

how to get bitcoin

how to get bitcoin buy now

As you get more experienced and better understand the market you might want to move over to exchanges like Binance.

Getting paid in Bitcoin

We tend to forget that bitcoin was created so we could send and receive value from anywhere around the world instantaneously.

This is also a faster and cheaper alternatives to banks.

3. Cryptocurrency Mining

Mining is a very popular way to get Bitcoin and other cryptocurrency.

Cryptocurrency mining is the process of creating new cryptocoins.

So how it works is, you help the ecosystem by verifying transaction and you get cryptocurrency as a reward for your efforts.

Feel free to check out a more detailed explanation on how cryptocurrency mining works.

So why don’t I just mine bitcoins?

Bitcoin coin generation is halved every 4 years and mining difficulty increases as more players come onto the market despite more specialized equipment.

Another problem with Bitcoin Mining machines, also know as ASIC miners, is they they can only mine one type of coin which makes them a very high risk investment.

Though it was profitable to mine bitcoin on a computer in 2010, you definitely won’t earn anything mining from a computer 10 years later unless you plan to create a mining farm.

What can are my options if I’m broke?

Though you can’t mine Bitcoin small scale, you can definitely mine lesser know coins or ASIC resistance coins such as XUN, Monero or Cannabiscoin.

Once you’ve mined them, you can sell them on an exchange.

The biggest disadvantage is that it is very time consuming and you probably won’t make much at the beginning unless you plan on holding your crypto for several years.

cloud-computing-2116773_1920

However, the biggest advantage of this method is that it is great way to learn how cryptocurrency mining works and whether it is something you see yourself doing in the long run.

Other mining options

If you want to learn how to choose which coins to mine, I would definitely check out Genesis Mining which is a cloud mining company.

Which coins to mine
Choosing cryptocoins to mine

Cloud mining is where rent out mining equipment and the company pays you out the profits directly.

If you would like a deeper explanation of how Genesis Mining works and how the let you choose which coins to mine, you can check my full Genesis Mining Review.

If done right, cryptocurrency mining can become a great source of passive income.

Genesis Mining review payouts is genesis mining legit

4. Charge Bitcoin for your services

This is slightly different than bounty hunting because freelancing involves doing ongoing work in exchange for Bitcoin.

The truth of the matter is bank transfers are expensive and take a long time and Skrill or Paypal don’t support all countries.

how to get bitcoin

For this reason, many employers are opting to pay their team in cryptocurrency.

With all the startups which have raised millions during the ICOs they have a lot of work to offer.

Popular job posting on Upwork.com

  • Content Writing
  • Copywriters
  • Whitepaper writer
  • Marketing experts
  • Community managers
  • PHP or Java Developpers
  • DAPP Developpers
  • Mobile Developpers
  • Video producers
  • Graphic Designers

If you are a content writer, have a support background  or even programming background, there are quite a few number of clients on Upwork looking to pay in Bitcoin.

Cryptocurrency is making it even easier to get paid from clients from around the world.

5. Selling products for Bitcoin

Selling products online for crypto is not new, however, it IS VERY UNDER-RATED.

Remember that you can send bitcoin to anyone around the world instantaneously.

You can sell products on market places like Overstock.com or Openbazaar.org.

This set up works well if you like electronics such as video games or computer parts because gamers. You also get access to a broader oversees market.

The BIGGEST advantage I have been hearing from merchants is that they do not need to worry about refunds.

how to get bitcoins free

Credit Card purchases tend to get a 10% refund rate which is quite a budget for online companies.

6. Marketing other companies products

An affiliate program is where you market a product and get a commission or referral on each time the person you recommended makes a purchase.

How do referral programs work?

When you apply to an affiliate program, you are provided with an affiliate link, when someone clicks on the link, cookies are added in the users’browser for a certain period of time until they purchase the products.

For example Amazon’s cookies stay 24 hours in the user’s browser.

Affiliate programs are great if you already have a huge audience but what what you don’t want to do is spam every group out there- This is a big no-no.

how to get bitcoins

Affiliate marketing blueprint

  1.  Create a huge audience on Social Media. This can be pinterest or a facebook group.
  2.  Offer valuable information why they need this product.
  3.  Propose an affiliate product.

Popular Cryptocurrency Affiliate programs

  1. Coinbase
  2. Bitpanda
  3. Shapeshift

7. Bitoin Faucets

The first Bitcoin Faucet was created by Gavin Adresen in order to distribute bitcoin and educate the public.

How do bitcoin faucets work

They work similar to bounty programs except you do less to do even less.

Example of tasks required by faucets

  1. Providing your email address
  2. Clicking on ads
  3. Accessing a website once a day

how to get bitcoins - bitcoin faucets

Each ‘task’ rewards you around 2-3 cents and faucets also require users to meet a minimum threshold in order to be eligible which is around $5-$10 including transfer fees.

They usually entice users by opting in by offer $1 worth of Bitcoin.

They are know that you won’t be entering your email to weird websites once a day two thousand days in row.

Faucets are not a serious way nor sustainable to earn bitcoin and most of these websites contain a lot malware.

There are so many better paying jobs on websites like upwork or freelancer.com where you will be better paid for your talent.

8. Bounty Programs

Bounty hunting is when you get offered a reward in exchange for completing a task.

The most common bounty programs are among ICOs, where tokens are offered in exchange for a social share.

This is a great way to earn cryptocurrency if you already have a large audience.

How do you actually get bitcoin if you are being rewarded tokens?

The idea is to sell the tokens in exchange for bitcoin once the reach the exchange.

how to get bitcoins

Where can to find bounty programs

Most ICO bounty programs can be found:

  • Bitcointalk.com Forum (Bounty Section)
  • Blockchain Facebook groups (the real ones not spammy ones)

Advantages of Bounty Programs

  • Little effort if you already have a huge following.
  • Airdrops which means they reward you tokens for your loyalty.
  • Some tasks require .

Disadvantages of bounty programs

  • Not all tokens make it to exchanges.
  • Your friends and family might get upset if the project fails.
  • 99% of startups fail.
  • It is becoming very difficult to get tokens on exchanges due to regulations.
  • Founders sometimes dump all the tokens as soon as they reach exchanges.
  • Tokens are usually worth a few cents when they first reach exchanges.

If you want to earn ‘real money’ instead of a few dollars and some tech skills, there are is a high demand for locating bugs in exchange for bitcoin.

High Paying Bounty Programs

*By real money I mean serious amounts of bitcoin 😀

More Clever Ways to Get Bitcoin

9. Placing ads

If you already own a tech or financial blog  you can set up an account with cryptocurrency ad companies which generate cryptocurrency and blockchain related content.

Note: You might need to trade the tokens on exchanges in exchange for Bitcoin.

Cryptocurrency Advertising programs

add a donate button on your site to received cryptocurrency

10. Tipping or Donation Jar

A bitcoin tipping jar is also a great way to monetize your content in both writing and video.

Though you can find a plugin, you can also just use your public key.

How to set it up

Just paste your Bitcoin public key underneath the content.

Where can I add my tipping address?

  • Closed Facebook groups
  • Under your youtube content
  • In your blog
  • On your T-shirt (basically anywhere people can find it 🙂
  • In forums

VERY IMPORTANT: DO NOT SPAM forums and groups asking for Bitcoin donations.

11. Become an influencer

This is one of those open-secrets of the industry.

Many blockchain startups seek out social media personalities with high followings.

Influencers can get paid to tweet, participate in events or review their products.

John Mcafee famously claimed he charged $105,000 per tweet.

He even explained in the interview with Independent why he charges over $100,000.

Influencers also get paid to travel and speak at blockchain projects around the word. Preety cool eh? 😉

how to get bitcoins - become an influencer

12. Treasure Hunting

This is currently the coolest app created in the crypto and it literally makes crypto trading fun.

Aircoins is an augmented reality plateform which allows you to receive tokens like PokemonGo or Snapchat.

how to get bitcoin for free

I am not being paid or endorsed to share this, I just think it’s really cool and I am really happy we can come such a long way from the Electrum Wallet days.

The technology is moving very fast and companies are constantly adding new features.

Anything that appears a bit complicated today might get a bit easier down the road.

Final Thoughts

Remember that Bitcoins are a currency and to buy them requires to going through financial companies.

The faster you need the BTC, the more it is going to cost you.

If you do not own bitcoin, I would recommend buying an amount which you are comfortable with just to see how the technology works.

Once you are comfortable with the technology then you can move onto more serious solutions.
Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!
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Coinmama Review

Coinmama Review: Is Coinmama a scam or legit? We checked!

The Ultimate Coinmama Review

 Coinmama is a cryptocurrency broker and a subsidiary of NewBitVentures.
Coinmama is registered in Slovakia but based in Ra’anana, Israel.
The transactions are also processed in Israel.
This company has been in business since 2013.

Affiliate Disclaimer

How does Coinmama work?

Coinmama is a cryptocurrency broker which means that they will send you the cryptocurrency directly to your cryptocurrency wallet in exchange for a commission.

Unlike cryptocurrency trading platforms, you do not need to create an additional wallet on the platform to store your crypto.

Checkout Process Review

Coinmama has a very user-friendly and shopping feel to it unlike other exchange platforms which makes it ideal for beginners.

Create a free account account:

 Step 1: Head over to Coinmama and create a free account.

Feel free to use our affiliate link at no extra-cost to you:

https://satoshilibrary.com/recommends/coinmama/

There are two ways to create an account with Coinmama:

You can either click the sign up button on the top right or the ‘Buy Coins ‘ button.

Coinmama Review : The easiest way to buy bitcoin and ethereum

Step 2: Coinmama verification process

Enter:

  • Your email
  • Preferred password
  • Name
  • Country of residence
  • Click create account

Coinmama requires very basic user information to create an account.

Coinmama Review: How to create an account

Coinmama will send you an email confirmation to confirm your identity.

What I personally like about the Coinmama Verification process the fact that is that they do not invasive questions like traditional trading platforms.

In some cases, KYC approval can easily take months.

Coinmama review - create and verify your account

Placing an order

Coinmama offers two options:

Option 1: You can choose one of their 4 packages at different price points for simplicity.

Option 2: You can choose a very specific amount of crypto or fiat (USD/Euros) by either entering the exact figure.

I think the price slider adds a very nice touch.

Coinmama allows you to choose a package or buy a specific amount.

Coinmama - Buy bitcoin or buy ethereum in USD or euros

Click the ‘Buy at the bottom of the page.

Enter your (receive) wallet address

VERY IMPORTANT: Be sure to give the wallet address which corresponds to correct amount of crypto.

For example, if you are buying Bitcoin (BTC) , you would need provide your Bitcoin readdress and if you are buying Ethereum, you would need to provide your ethereum wallet address.

Coinmama review

If you do not have a cryptocurrency wallet yet to store your cryptocurrency, head over to Exodus.io  to download their free and beginner-friendly multicurrency wallet.

Protip: The Receive Address is also known as the public key and the send address the private key.

If you are not sure what is a private key, you can check out this easy explanation.

The Checkout

This is definitely one of the finest qualities of Coinmama.

I really like the fact that that you do not need to provide ID verification like typical cryptocurrency exchange where they sometimes require you scan your password as well as take a selfie.

Coinmama review - buy bitcoin with creditcard

Is Coinmama legit?

Here is the Bitcoin and Ethereum I ordered in the Coinmama dashboard.

It is safe to say: Yes!

Coinmama review - is coinmama legitimate

Which other coins can you buy?

Coinmama currently allows you to buy the 8 following cryptocoins directly:

You can buy Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoincash (BCH), Cardano (ADA), Qtum, Ethereum Classic (ETC)

Coinmama review- how to buy cryptocurrency with your debit card

    1. Bitcoin (BTC) : Bitcoin is the first cryptocurrency and created by SatoshiNakamoto who had gone into hiding and recently reappeared.
    2. Ethereum : The second most popular cryptocurrency after Bitcoin created by 22 year old Vitalik Buterin. Ethereum is also a blockchain platform which is very popular among devs as they can create DAPPs (decentralized applications) and smart contracts.
    3. Ripple: Just like Ethereum Ripple is also a blockchain platform except their target maket is the banking sector.
    4. Litecoin: The Creator of Litecoin, Charlie Lee, called Litecoin, the digital silver and bitcoin being the goal. Litecoin is meant to be faster alternative to Bitcoin.
    5. Cardano: This is a Chinese-based cryptocurrency and blockchain project similar to ethereum.
    6. Qtum: Is a Bitcoin fork (derived from Bitcoin) and blockhain platform like* Ethereum.
    7. BitcoinCash: BitcoinCash is another Bitcoin fork which boasts faster and cheaper transaction. Its most vocal advocate is RogerVer.
    8. Ethereum Classic: Ethereum Classic was infact the original Ethereum but as the community could not agree. The fork became what is known as Ethereum and Classic the ‘core’ version.
*In very simple terms

Accepted Payment Methods

Coinmama accepts:
  1. Visa
  2. Mastercard
  3. Bank Transfer (SEPA)

Coinmama does not accept:

  • American Express
  • Discover
  • Paypal

Coinmama Supported Countries

You can buy cryptocurrency from Coinmama if you live in the following countries:

[table id=Coinmamacountries /]

Coinmama supports the following states in USA:

[table id=Coinmamausa /]

More experienced cryptocurrency traders complain that brokers like Coinmama have high rates, here is a break down of the costs

There are 2 main fees when buying cryptocurrency through Coinmama:

  1. 5.90% brokerage fee (included in the price)
  2. 5% Credit/Debit card fee imposed by

HACK: To be sure you have enough funds on your card, just take the price and multiply by 1.05% . So if you buy $100 worth of BTC, you need $105 of your card.

Some people may feel that the 5% transaction fee is high, but I personally think that it’s really a question of how much your time is worth.

As you become more comfortable with the technical aspects of cryptocurrency and blockchain, you will naturally pick up ways to save on these fees.

Hidden Fees:

1.Blockchain fee :

However, remember that blockchain transactions powered by something called mining and the miners verifying the transactions require transaction fees.

Unfortunately, the mining fees are unavoidable no matter transaction even if you’re sending crypto directly to another person.

2.Cash advance fee

At the beginning of 2018, Mastercard and Visa reclassified all cryptocurrency purchases to cash-advances out of fear people would buy cryptocurrency on credit and later ask for chargebacks.

Consequently, this resulted to an additional 5% on purchases of cryptocoins.

They claim to have reversed this decision, but if this does happen to you, you can file dispute with your bank.

3.Exchange rate fees

This is the fee charged by banks to convert your currency to USD or EUR.

It is a lesser known fee but good to monitor if you live outside of the US or EU.

bitcoin-3266561_1920

Buying Limits

The minimum purchase is 60 USD or EUR.

There is a maximum daily limit of 5000 USD/EUR and monthly limit of 20,000 USD/EUR.

Coinmama requires verification for the higher amounts.

Support

Coinmama does not provide any phone support if you need to contact them, you can send them an email at support@coinmama.com, submit a ticket or contact them on their Facebook Page.

They also have a very extensive knowledge base which answer all user questions.

Reputation

Coinmama doesn’t appear a negative reputation except for more experiences users complaining of high fees which in my opinion normal when deal with a bank and credit card companies.

Social Media Presence

I think this is the biggest weakness of this company, they do not have a big following on Facebook or Twitter.

Coinmama’s Competitors

Indacoin

Indacoin is definitely the closest competitor in terms of fast and beginner friendliness.

My biggest issue is that they are not transparent on how much they charge for brokerage.

Paxful

Paxful is ‘clunkier’ with more features.

Their anti-spam set-ups make the website frustratingly slow to use.

LocalBitcoin

LocalBitcoin can be compared to Craiglist.

It can be a daunting option for first time Bitcoin buyers

[table id=Coinmamacompetitors /]

I will be creating a more detailed review for each one of them soon 😉

Who is Coinmama for?

  • If you do not own Bitcoin yet.
  • If you do not own Ethereum yet.
  • You find exchange platforms to complicated.
  • You get overwhelmed by complicated processes.

coinmama review

Final Thoughts

When had just started out, I found all the information extremely overwhelming and all I wanted to do was just buy Bitcoin and Ethereum.

Coinmama is the most user friendly and easy to use platform compared to its competitors.

Though the brokerage fees are steeper compared other similar platforms, the simplicity was definitely worth it for me as a beginner.

Thank you for reading!

I hope you enjoyed my coinmama review 🙂

Affiliate link: https://satoshilibrary.com/recommends/coinmama

Let me know if this info was helpful for you 😉
Cheers,
Marie

Founder of Satoshi Library

Owner of SatoshiLibrary

PS

Thank you for visiting!

And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

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How does cryptocurrency mining work? Learn to mine crypto in under 5 mins today

Cryptocurrency Mining Explained

Cryptocurrency mining is the process of verifying and adding transactions on the blockchain  in exchange for new cryptocoins and transaction fees as rewards. Transactions are bundled in encrypted set of rules also known as the mining or hashing algorithm and each is a ‘block’. Cryptocurrency miners from around the world compete to find the 64-digit hexadecimal algorithm the fastest to validate the transactions.

Quick Overview

Here is how Bitcoin mining typically works:

  1. The user initiates a transactions by sending another user crypto.
  2. A group of transactions are bundled together in using a special encryption called ‘hash’
  3. These blocks of transactions are broadcasted to the entire network.
  4. Each user collects the bundles of transaction.
  5. The users compete to spend the energy required the fastest.
  6. The first user to find the solution then broadcasts it back to all the other users on the network.
  7. Everyone on the network validates the transaction by moving on to the new block of transactions by using the last algorithm as reference, hence the term ‘blockchain.
  8.  The transaction is recorded to the blokchain
  9. The miner is rewarded new cryptocurrencies for their hard labor.

Source: Bitcoin Whitepaper by Satoshi Nakamoto

cryptocurrency mining explained

How do miners get rewards specifically?

For a cryptocurrency miner to receive rewards, they need prove that the have spent computing energy to solve a block.

This is also called proof-of-work and commonly used in many cryptocurrencies.

The miner also has to be able to find the answer before everyone else.

For this reason miners receive cryptocurrency as reward for their “labor” in order to incentivize users to continue verifying transaction

A faster computer increases the speed of decryption as well as the probability of miner receiving a reward for his effort.

Satoshi Nakamoto explains in an excerpt of his book Duality that he worked with Adam Back, the creator of Hashcash, an anti-spam and cyber-attack system, to implement POW.

Techinical Note:
Some cryptocurrencies have a proof-of-stake system which means that users with the highest amount of coins in their wallet users have a higher chance of receiving the block rewards.
Some cryptocoins allow users to set a transaction fees to verify transaction. 

For this reason, is important to read the whitepapers to see which system is being

the importance of cryptocurrency mining

Why is cryptocurrency mining important?

Mining is what powers the ecosystem by helping the transactions go through.

Mining is the most important part of decentralization as their verification prevents the double spending.

Affiliate Disclaimer

Which type of mining is best for me?

First of all, I would like to congratulate you for making it this far!

Now, let’s find the best cryptocurrency mining method for your current situation 🙂

  • CPU Mining

Have an old computer lying around?

CPU Mining is an easy way for you to recycle old computers and earn passive income at the same time.

Though you can no longer mine cryptocurrencies such as bitcoin without damaging your PC, there are a few other coins which were created specifically to be mined from standard standard computers.

pc mining software

Which coins can you mine with an old computer?

  1. Monero
  2. Dogecoin
  3. XUN  (has its own software)

Tip: You are looking for Asic Resistant coins

Computer Mining Software

Option 1: Join a mining pool and mine from your laptop

Sign up and download the Minergate mining software with this affiliate link https://satoshilibrary.com/minergate

Option 2: Mine solo from your pc

Go to CPUMiner and and choose the software for your equipment

Is CPU Mining for you?

Computer mining is a great way to get started and learn about the system especially if you don’t mind burning a few processors in the process.

Warning: Even if your pc is powerful to enough mine certain cryptocurrencies, mining will cause it to overheat, put stress on the chips and damage it so be sure not to use your primary computer

(I lost two computers in this experiment 🙁 )

Though it was very profitable back in 2010,  with ASIC miners and increased difficulty, you would need more powerful equipment to increase your mining power.

  • USB Bitcoin Miners

USB miners are a mini version of ASIC miners geared towards novices.

They were very popular because they were very small, energy efficient and user just needed to plug it in.

They should not be confused with hardware wallets.

USB Miners are a great way to learn about bitcoin mining but not profitable at $50 per piece, you will be lucky if make $2 in year.

If you are serious about mining, you would eventually need to shift to more powerful mining solutions.

  • Virtual Machine

For the non-techs, this means mining from an online server or virtual computers.

Though you might be thinking that this would avoid blowing up your computer, here is are the problems with this and why it is not a popular solution.

PROS:

  • Less risks of damaging your computer
  • Allow you to multitaks

CONS:

  • Very easily hacked
  • Servers have restrictions to prevent abuse
  • Requires a bit of technical

I recently came accross a very good tutorial by Peerhash on how to mine on Virtual Machine

  • Cloud Mining

This is the most popular form of cryptocurrency mining for beginners and non-techs.

Cloudmining is comparable to outsourcing.

Companies such as Genesis Mining and Hashlare gained a lot of popularity in 2017 because of the cheap fees and user friendly platforms.

How does cloud mining work?

Cloud mining is essentially like outsourcing all the labour costs, maintenance, installation fees and equipment in exchange for the profit.

In other words, you buy ‘mining contract’ from a cloud mining company and they will allow you to rent “hashrate” and receive the output once all the maintenance fees have been deducted

If you think it sounds to be good to be true, you’re right…

Here is the catch:

All of the above-mentioned costs are pretty expensive so you will need to buy enough hashpower to cover your investment and the expenses.

Cryptocurrency mining explained

Advantages of Cloudmining:

  1. Users can focus on choosing the right coins to mine
  2. No need to worry about energy costs
  3. Contracts can be bought with with a credit card or debit card
  4. Saves time: The mining rig has already been set up for you
  5. Saves Money on maintenance fees
  6. The users can easily switch from various coins

Risks:

  1. The companies can terminate your contract if they the contract is not ‘profitable’
  2. Cryptocurrency is very volatile
  3. No refunds
  4. The mining company can decide to change its term of services, for example Hashflare changed all of its lifelong contracts to yearly contracts

Genesis Mining Vs Hashflare

Some people will say that Geneisis Mining is the best and other will say Hasflare.

The best one for you is the platform which you can use and understand faster.

I tried both, invested the same amount and made the same amount of both despite the bullrun of 2017 and bear market of 2018.

I would recommend first creating an account on Genesis Mining and Hashflare and compare which one makes more sense to navigate.

(By entering the following Affiliate Code: FaUSrN, you get a 3% discount on each of your purchases with GenesisMining)

  • GPU Mining

(Graphics Processing Unit) GPU Cryptocurrency mining is the first choice for miners who are just starting out.

The is usually the next step after computer mining or USB mining.

In some cases, gamers have jumped directly over to GPU mining because they had the equipment available

PROS:

  • More efficient than computer mining
  • Cheaper than ASIC Miners
  • Hardware can easily be sold if it doesn’t work out for you
  • Easily expandable

CONS:

  • Noisy
  • Good airconditioning is required
  • requires a bit of setting up and maintenance

cryptocurrency mining with a GPU

If you plan on bulding a GPU Mining rig here are the basic equipment to get started excluding the graphics card :

  1. CPU (a mininum of 4 GB)
  2. Motherboard
  3. RAM (DDR4)
  4. Hardrive or SSD which is more energy efficient

If you plan to expand and depending on your finances:

  • Open air case to store your graphics card

The equipment should cost around $250 minus the price of the graphics card and electricial cost.

  • ASIC Mining

An ASIC (Application specific integrated circuits ) miner is a powerful mining machine whose sole purpose is to decrypt the algorithm of the cryptocurency as fast a possible

Who are they for?

Serious miners

PROS:

  • Powerful
  • Very efficient when done correctly
  • You get an advantage over other miners

CONS:

  • Require a lot of energy
  • Not recommended for users from tropical climates
  • Loud
  • May be unprofitable
  • Become inefficient after a few months
  • No refunds

PROTIP: Only purchase the first batch because the second batch becomes inefficient as they will be more

Why?

Though the second or third batches of ASIC miners are cheaper, this also means that there will be more people mining cryptocoins and mining difficulty increase.

Bitcoin Mining Hardware

Bitmain offers two options for Bitcoin Antminers:

The Antiminer offering power supply is more expensive, however, it will provide the optimum mining conditions

  1. With power supply ( view on the following affiliate link) : https://SatoshiLibrary.com/bitcoinminer+psu
  2. Without power supply (affiliate link):
    https://SatoshiLibraary.com/bitcoinminernopsu

[table id=2 /]

  • Power on wall – Refers the maximum capacity of the miner before it loses efficiency to to over heating.
  • Hash rate- The measurement of how powerful your mining machine is.
  • Sha-256 – It is the algorithm used to mine Bitcoin and cryptocoins with the similar algorithm

Note: This table may contain errors as prices and measurements might have changed by the time you read this blog post

Cryptocurrency Mining Profitability: Is it worth it?

There are 3 things to take into account when you are choosing a cryptomining solution

  • Electricity and Energy costs

Mining is basically computation and you would need to keep your miner running 24/7 for maximum efficiency.

As the reward systems are usually random*, keeping your miner on 24/7 will allow you to maximize your chances of getting a reward.

However, the caveat is that when these mining machines run at full capactity, they tend to overheat, so if you live in a warm country, you need to factor in cooling costs.

The lower the costs, the faster you get your ROI (return on investment) and make profit.

So it important to factor in energy costs on top of maintenance.

Protip: Though there are profitability calculators online, I would recommend giving your local power company a call and ask them how much the energy is going to cost you.

They will not only give you a more reliable figures but might also give you efficiency tricks which may apply only in your region.

  • Budgeting

How much money do you have to invest in equipment.

Ideally, you would want the cheapest investment for the quickest ROI and eventually scale as you start making profit.

  • The Cryptocurrency Market

The cryptocurrency market is extremely volatile so always position yourself where you can afford the loss if the market goes down.

And as we witnessed in the beginning of 2018, this can extend a few months.

If the cost to mine is more than the market value, then the machine needs to be switched off 🙁

Which coins to mine?

The basically means which coins are the most efficient to mine on which algorithms.

Firstly, is not all crypto coins are profitable to mine from a computer while others are not efficient to mine from an ASIC so it is important to identify the most profitable coins with your equipment.

Secondly coin generation, depending on the cryptocoins, for example Bitcoin, coin generation is halved every 4 years which makes it more difficult to mine.

Also the more miners, the more the mining difficulty.

Is Bitcoin Mining Profitable?

If you plan to mine Bitcoin with a standard computer or basic mining rig, probably not.

For you to efficiently mine bitcoin, you would need be ready to invest in a proper mining installation as well as have enough capital aside in case to survive in case of a bear market.

During a bull run is more profitable to simply buy the dips and hold rather than mining depending on your location.

Choosing the best algorithms for your hardware

Miners , essentially ASIC miners, can only decrypt one algorithm so when opting for a mining solution it is important to be aware of the algorithms so that you can easily switch to the most profitable coins:
[table id=1 /]

Source: Crosslytics

Cryptocurrency Mining Strategy

Are you going to be selling the cryptocoins to flip or do you plan on keeping them for the longterm?

Many miners say that they are betting on the longterm value of a coin, meaning they mine coins with low difficulty and sell them at a higher price.

However, if you plan on becoming a serious miner, you will have bills to pay and need to look into coins which will cover those costs.

Cryptocurrency mining is not a get-rich quick solution but a gamble because it is depending on many uncontrolable factors.

Solo Mining vs Pool Mining

Solo Mining vs Pool Mining

Joining a mining pool increases your probability of earning a reward and once a block is completed the rewards are shared.
However, mining pools also require users to pay a fee.

Choosing a mining pool

Here are the main to consider when choosing mining pool:

  • Reward structure
  • Reliability/trustworthiness
  • Mining Fees

Top mining pools

  1.  Slush Pool
  2. AntPool
  3. BTC.com
  4.  KanoPool
  5. F2Pool

Solo mining means that you do not have pay mining pool fees, however, it could take months before you complete a block, but you get to keep all the rewards.

Cryptocurrency Mining Hashrate distribution
Global Hashrate Distribution

Source: Blockchain.info

Final Thoughts

Cryptocurrency mining is a great way to earn passive income with from the comfort of your home.

There is no guarantee that you will receive a reward, so it’s important to carefully calculate the costs of investment.

Your biggest enemy is time, the more you wait, the more the cryptocurrency mining difficulty increases and less efficient the solution becomes.

The reason cryptocurrency mining is so popular is because you can potentially make a lot of money if you choose the right coins and sell them at the right time. 🙂

However, it is important to remember that cryptocurrency mining is not the only way to make money and buying bitcoin at low prices and  holding on is just as profitable 😉
Let me know if this info was helpful for you 😉
Cheers,
Marie
Founder of Satoshi Library

Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!
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get free bitcoin cryptoccurency as passive income explained by satoshi library

8 proven ways to you can earn cryptocurrency as passive income

Are you interested in earning cryptocurrency as passive income but don’t know where to start?

Earning a few extra bucks wouldn’t hurt your finances, right?

Here are 8 ways to earn cryptocurrency if you are new to cryptocurrency or interested in monetizing your experience.

Affiliate Disclaimer

All of them are very easy and all you need to do is choose which one would work best for you:

1. Mine and Earn Cryptocurrency

Have an old laptop or gaming computer lying around?

Start mining cryptocurrency!

While it is no longer profitable to mine Bitcoin on a laptop, there are quite a few upcoming coins which allow you to mine from a computer.

You can also join a bitcoin mining pool however, the profits are very low because the competition is very high.

Though this method will require a bit of setting up at the beginning, but once you are ready to go, the cryptocoins will be rolling in on their own.

Cloud mining

Cloud mining became increasingly popular in 2017 with companies like Genisis Mining and Hashflare attracting millions of users.

HashFlare

If you find the tech rather daunting but still want to earn cryptocurrency as passive income, cloud mining is a good place start.

Cloud mining also allows you to focus on the finding which coins are the most profitable to mine without being overwhelmed by all the tech.

HashFlare

Before moving forward, click on both affiliates links below to set up your cloud mining accounts with Hashflare and Genesis Mining so you can see what cloud mining looks like even if you don’t buy anything.

What’s important is that you get started!

I have personally tried both and will be writing a review soon but long story short, I’ll be explaining why some people make profit and others don’t, 😉 

Hashflare:
Link: https://tinyurl.com/ycvd9wb7

And

Genesis Mining
Link: https://tinyurl.com/y8xtyfp5 

When you make you purchase you can use the following promocode FaUSrN for a 3% discount on your first purchase with Genesis Mining.

Genesis Mining-get started now

Both Genesis Mining and Hashflare accept credit cards,

2. Cryptocurrency Bounties

A bounty basically means to be rewarded cryptocurrency or crypto-tokens in exchange for carry out a small and usually easy task.

These tasks usually involve spreading the word through social media such as:

  • Sharing a post to your followers
  • Getting shares or retweets
  • Getting likes
  • Downloading the app
  • Reviews on certain websites

If you already have a high Instagram, Twitter or Facebook following, go to bitcointalkforum.com and checkout all the new bounties being offered by ICOs.

The cool part is that many ICOs will offer bonus aridrops to existing token holders for their loyalty.

Cryptocurrency Bounty hunting

3.Coin Flipping

This means to buy a coin at a relatively low price and sell it at a higher price as the market goes up.

This is also the first step milestone to day trading cryptocurrency.

Crytocoin Flipping satoshilibrary

4.Just HODL

Okay, I admit that this one requires a bit more market knowledge and self control but Ii you have a few extra bucks lying around, you can buy a few cryptocoins and forget about it for a few years.

This strategy has a made quite a few cryptocurrency millionaires over the years.

However, you need a good a cryptocurrency wallet to keep you cryptocurrency secure over extended periods.

You can click on the following affiliate link to check out the HODL Wallet: https://tinyurl.com/ybw6k7pe

The best cryptocurrency wallet

5.Add a tipping feature

Already creating content?

Do you have a blog or youtube channel?

Add a wallet address or donation button so your audience can help support your project.

Plus it is great way to monetize your site.

Steemit is a platform which pays you to create content and many bloggers use Steemit because of its reward program for publishers.

add a donate button on your site to received cryptocurrency

7.Get paid to watch content

Too lazy to invest yourself in any of the above?

Gone are the days when you sit through ads for free.

The new generation of ads are paying users to watch the content.

How awesome is that?

earn cryptocurrency as passive income with Satoshi Library

8.Faucets

Faucets are websites which offer small amount of cryptocurrency in exchange for a small task such as providing your name email.

Faucets are a great way to get your first cryptocurrency to understand how it works but the amounts given are very insignificant.

what is a cryptocurrency faucet

My Thoughts:

As they say, the journey of a thousand miles begins with the first step.

Pick one and register!

You will never know unless you try.

If it doesn’t workout, move on to the next one.

Many seasoned cryptoenthusiats have tried a few of these when they were just starting out.

But just because you make a few hundred dollars with any of these methods is no reason to put your entire life savings into cryptocurrency. 😉

Though, it’s always a good idea to diversify, the cryptocurrency market is extremely volatile and can drop 70% at any time so investing in cryptocurrency is gamble.

Therefore do not put more than you are willing to lose, this way you are less likely to make emotion-driven decisions.

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. The Cryptocurrency prices are extremely volatile so please do your due diligence before investing in any website.

Cheers,
Marie
Founder of Satoshi Library

Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

buy bitcoins with a credit card

How can I buy Bitcoins with a credit card? Easiest, fastest and safest ways to buy BTC

2 ways to buy bitcoin in under 5 minutes with a credit card or debit card

How to buy bitcoin with CoinMama or Indacoin in just few minutes:
– Go to CoinMama or Indacoin
– Create an account so you can receive your receipts
– Choose the amount of Bitcoin you wish to receive and click on ‘Buy Now’
– Enter your Bitcoin wallet address
– Enter you credit card or debit card information
– Wait for the Bitcoin to appear in your wallet (it may take a few minutes depending on the network speed)

These are the 2 fastest and safest ways which you can purchase bitcoin with a credit or debit card if you live outside of the US.

I have personally tried both.

Affiliate Disclaimer

My experience

I remember how I had just decided to get into Bitcoin and how overwhelming cryptocurrency exchanges were at the time.

When I was just starting out, I found the cryptoexchanges too technical plus I had no clue what was the difference between Bitcoin and BitcoinCash let alone understand which symbol was for which currency.

There was Bitcoin, then BitcoinCash, there is also BitcoinGold …uhhh…BitcoinPrivate too?arrrgghh!!🤯 How do I get the real one?!!!! 

Will the REAL BITCOIN please stand up?

This is why I decided to find other ways to buy Bitcoin because I had no interest  in taking trading courses at the time nor do tech research on each cryptocurrency.

There were just too many of them!

Plus the exchanges required a lot of personal info before I could test out their services which I was not comfortable doing at the time.

All I wanted was to use the few extra hundred bucks which I would have otherwise used to buy shoes to BUY  REAL BITCOINs…

(Don’t judge me 😳 )

Anywho….I scoured the net for a long time and eventually found two quick ways to instantly buy bitcoin with a credit card or debit card for non-US and non-European citizens.

I have personally used both and would highly recommend both methods.

Is it for you?

  • You just want to buy Bitcoin fast ..
  • You don’t want to get in the tech of figuring out exchanges…
  • You don’t feel comfortable doing bank transfers to exchanges…
  • You find credit cards safer to do business…
  • Find waiting for cryptocurrency exchange KYC approvals aggravating…

If the answer is yes to any of these, then Indacoin and Coinmama are for you

Who are they not for:

  • Experienced traders
  • Those who have time to watch the market everyday
  • Those who own already own a lot of Bitcoin

IMPORTANT: Before moving forward make sure you already have a cryptocurrency wallet which supports Bitcoin. If you don’t, head over to Exodus and download their multicurrency wallet. It is free and extremely easy to use.

PRO TIP: The symbol for Bitcoin is BTC .

*Bitcoincash (BCH) is a different currency than Bitcoin just like the Australian Dollar (AUD)versus the US Dollar (USD)

Coinmama

Buy Bitcoin, Ethereum and other altcoins with a credit card or debit card

COINMAMA is Slovakia based company which was founded in 2013.

It was supports 188 countries except the US.

This is my personal favorite because it has a price slider which allows you to specify the exact amount you want to spend.

The experience is very similar to buying a product from a regular online store.

Features:

  • Immediate payment process
  • Minium of $100 or 86EUR
  • Fees:  Coinmama charges a 5.50% commision fee with an additional 5% processor fee (Visa or Mastercard)
  • Email Support

PROS: 

  • Transactions processed immediately
  • Transparent fees
  • Extremely efficient email customer support

CONS:

  • No chat support

It has also added other cryptocurrencies recently but I have not tested them out yet.

CLICK <> to BUY Bitcoin through COINMAMA

Indacoin

Buy Bitcoin and Ethereum instantly with your Visa or Mastercard

Indacoin is London based company and has been around since 2013.

I opted with them at the beginning because they were a UK-based company and offered live chat support…

The experience is extremely similar to Coinmama and I would say easier than buying something on Amazon.

Features:

  • Payment Processes in 30 minutes
  • Provides a calculator which states the amount of BTC you receive including the fees.
  • $100 maximum limit for new users which is gradually increased automatically.

My biggest criticism of this website is how they don’t clearly state the transaction fees.

PROS:

  • Chat Support

CONS:

  • Fees and rates not transparent enough
  • Poor email support

When I initially made purchases, I remember that there were negative reviews of users claiming they had not received their Bitcoin, but I believe that these users were not aware that the transaction could take some time if there is a too high volume of transactions on the network.

I did have to wait a few hours in 2017 because the Bitcoin network was slow at the time but I was not worried.

CLICK on our affiliate link to buy Bitcoins Indacoin:

https://satoshilibrary.com/indacoin

Note:

  • In both cases miners may charge an additional fee for powering the transaction.
  • Note that the processor fees may vary depending on your country

Final Thoughts:

I would recommend taking this anxiety of waiting as an initiation to decentralization.

You might even appreciate banks 😉

Though they do have higher transaction fees than exchanges, depending where you live, I think my time was worth the extra $10-15.

Let me know how it works out for you 😉
Cheers,
Marie
Founder of Satoshi Library

Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

what is the best cryptocurrency wallet

5 cryptocurrency wallets everyone ought to know

The practical guide to cryptocurrency wallets

A cryptocurrency wallet is an encrypted digital wallet used to store cryptocurrency and blockchain tokens.

A cryptocurrency wallet will allow you to:

  1. Store cryptocurrencies and tokens
  2. Send your cryptocoins to another person
  3. Receive payments if you are merchant
  4. Make everyday transactions

crypto wallets explained

Choosing the best wallet depends on:

  1. The safety of your private keys.
  2. How you intend to use it.

There are cryptocurrency wallets which store only one cryptocurrency and those which store several types of cryptocurrencies and tokens.

Let’s discuss the types of wallets and who they are meant for:

1. Online Wallet

Online cryptocurrency wallets are online digital wallets which can be accessed online through your internet browser.

Some wallets like My Ether Wallet, or MEW for short, offer a browser extension which makes the wallet easily accessible.

Online crypto wallets are best for everyday transactions and are the preferred wallets of cryptocurrency traders.

Most cryptocurrency exchanges will offer you a free wallet on their platforms.

Pros:

  • Easy to set up
  • Easy to access
  • Free

Cons:

  • Fake websites are endlessly trying to phish your private key.
  • The platforms hosting the wallets are often subject to hacker attacks.
  • You can not disconnect from the network in case of attacks.
  • Cryptocurrency exchanges are the favorite targets of hackers to be sure to protect your private key with Metamask.

Who is it for?

  • Beginners,
  • New cryptocurrency traders
  • Small amounts of cryptocurrency

2. Desktop Cryptocurrency Wallets

A deskstop cryptocurrency wallet is a software which you download to your deskstop and can access offline.

Deskstop wallets are considered safer than online cryptocurrency wallets because if ever your computer gets a malware attack, you can easily disconnect your pc from the internet and stop the attack.

Desktop wallets are great for those who like to be able to easily access their cryptocurrency even if they are not using it everyday.

It is great mid-term storage of option.

offline cryptocurrency wallets

Pros:

  • Easy to set up
  • Easy to access
  • Less subject to attacks than online wallets
  • Safer for online purchases
  • Great for mid-term storage

Cons:

  • Regular updates
  • If your computer crashes you can lose your wallet if you did not save the private key.
  • Not practical to carry around.
  • Not a longterm solution
  • Might carry additional fees for its services

Who is it for?

  • Beginners
  • Those who want to flip a coin or token

3. Mobile App Wallet

A Cryptocurrency Mobile  Wallet is a digital wallet installed on your smartphone.

The mobile wallet is very practical to use for everyday transactions.

mo

Pros:

  • Very easy to install
  • Very easy to set up
  • Practical to carry around
  • Practical to make physical purchases

Cons:

  • Private keys get lost very easily
  • You can accidentally delete the app
  • Many mobile wallets are unreliable because the teams have not been updating them
  • Some terms and designs may be confusing for non-techs

Who is it for?

  • Shoppers
  • merchants
  • Beginners
  • Physical purchases in stores

4. Hardware Cryptocurrency Wallets

A cryptocurrency hardware wallet is a pendrive-like wallet which stores your private and public key.

The hardware wallet extremely versatile because they are easy to carry.

Pros:

  • Your private keys are completely disconnected
  • Less difficult to use
  • Multipurpose

Cons:

  • More expensive
  • Not all models are user friendly

Who is it for?

  1. Miners
  2. Experienced investors,
  3. People who lose paper wallets,
  4. Those who have accidentally deleted their mobile wallets
  5. Those who don’t trust Windows (like me)

5. Paper Wallets:

A cryptocurrency paper wallet is the private key and public key written or printed on paper.

The paper wallet guarantees full control over your private and public keys.

Paper cryptocurrency wallet

Pros:

  • A great back up system from your wallets other wallets.

Cons:

All the reasons you don’t keep valuable information on paper

  • Paper gets damaged over time
  • In some cases ink might not be visible after a few years
  • It is very easy to lose a piece of paper

Who is it for?

  • Those who don’t want to carry around all their cryptocurrency
  • Long-term investors or hodlers
  • Cryptocurrency Miners

My Thoughts:

Cryptocurrency wallets are above all softwares which allow you to access your private and public keys.

The best crypto wallet for you is ultimately the one which is most practical for you to use.
You might also want to be on the lookout for multucurrency wallet…

They are also great reflection of how this technology is still as its early stages.

Cryptocurrency Wallet meme

Cheers,
Marie
Founder of Satoshi Library

Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

What is cryptocurrency

The Ultimate Cryptocurrency Cheat Sheet for Dummies

Cryptocurrency 101

Are you wondering what on earth is a cryptocurrency but have no clue where to start?

The Basics:

Here are the 5 words you need to know:

I am going to make it very easy and simple for you.

occupation-1426385_1920

 

What is Cryptocurrency?

Cryptocurrencies are digital currencies, just like the US Dollar, Euro or Yen.

They work a lot like your online bank account or bank card transaction except they decentralized.

This means that the prices are not controlled by a central authority such as the government.

Transfers are done directly from one person to another just like cash transactions.

Cryptocurrencies have all the benefits of cash and digital transactions BUT with additional benefits.

You can send and receive any amount to anyone around the world instantly with very low transaction fees.

People opt for cryptocurrencies because they are cheaper than traditional bank transfers which can easily get as high as 30% compared to a few cents with crypto.

Bitcoin

Bitcoin is the first form of digital cash ever created. It is also the most popular cryptocurrency.

The reason Bitcoin gained so much popularity, is that it was released in 2009, during the global financial crisis.

In some countries of the world, people could not even withdraw their money from banks.

This was a time when no one trusted banks or governments.

Bitcoin has existed for around 10 years and has users around the world.

Blockchain

Blockchain is the technology which allows cryptocurrency to exist.

As the user sends crypto to another person through a network.

The transaction gets validated and verified on this network.

This process is done by thousands of remote computers in the network, they are called cryptocurrency miners.

The transfer is then published on a distributed public ledger called the Blockchain.

It is very difficult to modify a transaction once it has been entered in the ledger.

This is one of the reasons many big companies such as IBM are investing massively in blockchain technology.

Mining

This is how new bitcoin and other cryptocoins are created.

Cryptocurrency miners are the people all over the world who solve the complex arithmetic questions needed to verify and validate a transfer on the network.

The first miner to complete the transaction is rewarded cryptocurrency as an incentive.

The miners are very important and help sustain the network.

what is bitcoin mining

To sum up:

Bitcoin is the first form of cryptocurrency and blockchain is the technology that allows Bitcoin to exist.

Cheers,
Marie
Founder of Satoshi Library

Owner of SatoshiLibrary

PS

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