Bitcoin

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3 Things You Need to Learn Before Creating a Bitcoin Wallet

Last Update: Larry Newman Leave a comment
So you’ve decided that it’s time to open your first bitcoin wallet? Good choice. Cryptocurrency is the future and you’re an early investor at this point.

Without the numerous Bitcoin wallets that offer varying levels of security, convenience and opportunities to holders, Bitcoin and indeed cryptocurrency in general, would not be as big as it is.

On a basic level, Bitcoin is a currency like any other, with the only difference being that it’s digital and decentralized, unlike ordinary currencies.

Nonetheless, Bitcoin, which raked in revenues of more than $2 billion in 2016, needs to be stored just like other currencies to ensure safety and ease of transactions primarily. However do you know how to open a bitcoin wallet?

We believe that you found your way here not to read about the importance of Bitcoin wallets, but their intricacies. If you are in e-commerce or just an enthusiastic developer looking to create your own Bitcoin wallet, here are three things you need to know before anything.

Different Types of Wallets

Before going any further, we have to make it clear that a Bitcoin Wallet is not the same thing as a Bitcoin Exchange even if the two may be used together.

Basically, a Bitcoin Exchange is an app or website that allows Bitcoin holders to exchange their crypto for fiat or paper currency.

On the other hand, a Bitcoin wallet is a software that helps you “store” your crypto and make Bitcoin transactions.

Well, technically Bitcoin can’t be stored as it’s not tangible so in this case, wallets store both the public and private keys that you use to send and receive BTC and help you connect to the Blockchain when you need to make a transaction.

That said, the point here is that when setting out to create one, you need to be aware that all wallets are not made equal – just like you have real leather and faux leather wallets for paper money. There are five different types of wallets that you can create, namely:

  • Mobile Wallet – Usually in the form of a mobile app that allows you to make instant purchases using your smartphone. Features include safe storage for your keys both private and public, QR code scanning and fast transactions.
  • Desktop Wallet – Typically computer     software that enables you to, among other things, store your private     keys in cold storage, away from the Internet or third-party servers.
  • Web     Wallet – Depends in varying degrees on the Internet to function. On the brighter side, they allow multiple transactions, can be linked to Exchanges and allow you to log in from different devices and locations. However, private     keys are stored on the web in third-party servers.
  • Hardware Wallet – A dedicated device that securely stores user information and private keys in an internal microchip in encrypted form, making it very difficult for     unauthorized access. It’s considered the most secure type of     wallet.
  • Paper Wallet – A piece of paper, generally printed by the user, containing both the private and public keys in the form of QR codes.

Each of the above wallets requires its own level of security and functionality features and as a developer, knowing the differences between them is an excellent first step.

Security is Key

Whether you are building a wallet for commercial purposes or your personal use, security is one thing you don’t want to compromise.

It is what people look at when choosing wallets to use, and in the absence of a regulatory authority, your wallet needs to be very secure to even be among the options.

As mentioned above, you need to have a safe, secure and convenient way to store private keys whether online or in cold storage.

Standard practice to this effect is Two-Factor Authentication (2FA) which requires the user to use both their wallet password and a One Time Password (OTP) which can be sent through email, SMS or Google Authenticator.

Another way to secure user funds is by backing up their wallet data, including private keys (in encrypted format) in a secure server. This makes for easy recovery in case of primary server crash on your part and human error on the user’s part. You can also encrypt user data in such a way that only them, through their private keys can access wallet data. Depending on the encryption software you use, every user gets a password to use when sending Bitcoin from their wallet.

If any unauthorized person gains access to their wallet, they won’t be able to transfer or use any funds inside unless they somehow get access to the secret passcode. Again, security is the key to success of your wallet. If you get it right, everything will be alright, and the reverse is unfortunately also true.

It’ll Cost You!

Note that we are not talking about the obvious sleepless nights when trying to find a secure API or Source Code to use. We merely mean that building a Bitcoin wallet will cost you money, real and big money.

Therefore, you need to be fully prepared not only mentally but also financially as well. To put it into context, the average cost of creating an ordinary mobile app for just one OS is around $10-$15k depending on graphics and specifications.

When it comes to Bitcoin wallets, you may want yours to be compatible with several platforms, especially if you are in business.

Add the cost of paying a decent app/software development agency for an additional 200 hours or so to create a multi-platform wallet to the common expenses such as front-end development, web integration, secure hosting and SSL encryption for your web site and the costs can easily run up to $100,000 plus.

Nonetheless, the cost of creating your wallet will depend on the projected user numbers, features included and what type of wallet it is relative to the 5 categories mentioned in point 1 above.

The development team you hire for the job may also be cheaper or expensive depending on their skill and experience levels and your specifications. Ultimately, the costs are still manageable but still run up to a tens of thousands of dollars.

Thus, it makes more sense to develop a custom Bitcoin wallet for business use as opposed to one for personal fun but hey, it’s all in your hands.

While it may make sense to you in the heat of the moment, we strongly advise against going for dirt-cheap developers and features as it may negatively impact the security and consequently, the reliability of your wallet. Go for quality instead.

Final Thoughts

We may not have covered everything about Bitcoin wallets in this article, but we believe that we have comprehensively touched on the three most important things to know before creating a wallet. It may be time-consuming and expensive, but that’s nothing to hold you back if you are committed to the course.

Drop a comment below if you liked the post or a question if you need something explained in detail.

Crypto Wallet App Development: A Lucrative Market with High Potential

Developing a crypto wallet app is a profitable venture in the ever-expanding world of cryptocurrencies.

As the popularity and value of digital currencies continue to rise the need for reliable and user-friendly crypto wallets increases.

Experienced app development companies like Imaginovation can assist in creating a powerful crypto wallet app that meets the demands of today’s users.

To develop a successful crypto wallet app it is essential to have a solid understanding of blockchain technology and utilize open-source libraries and APIs.

This ensures the app’s functionality and enhanced security measures.

Additionally studying competitors in the market can provide valuable insights into creating a unique and competitive product.

When building a crypto wallet app choosing the right technology stack is crucial.

Implementing features like two-factor authentication QR code scanner integration support for multiple cryptocurrencies push notifications and blockchain-based transactions can enhance the user experience and attract a wider user base.

In conclusion crypto wallet app development offers immense opportunities for those looking to capitalize on the growing cryptocurrency market.

By prioritizing security studying competitors and incorporating essential features you can create a powerful and profitable crypto wallet app.

revolut cryptocurrencies

Buy Cryptocurrencies on Revolut

Last Update: Larry Newman Leave a comment

You can now buy bitcoin, ethereum and other cryptocurrencies on Revolut.

But what’s the catch?

What Is Revolut?

Revolut was launched in July 2015 and it’s already one of the most known alternatives to online banking.

Their headquarters are in London, UK and as of the writing of this article they have over 2 million users (June, 2018).

Revolut offers following services:

  • Prepaid Debit Card
  • Currency Exchange
  • Crypto Exchange
  • Peer To Peer Payments
  • Global Money Transfers

Revolut is absolutely free to use as they don’t charge any fees for most of their services.

Can I Buy Cryprocurrencies on Revolut.com?

Revolut recently added cryptocurrencies to their platforms. You can buy cryptocurrencies like bitcoin, ethereum, litecoin, bitcoincash and ripple directly from the app. Their crypto offering is quite limited because only these 5 cryptocurrencies are available at the moment.

What’s even worse is that you cannot withdraw any cryptocurrency from Revolut. You can only buy, sell or transfer it to other revolut users. This makes Revolut a bad platform is you are interested in cryptocurrencies only.

However they do offer real time rates and you can track the performances of your cryptocurrencies. You can even set price alerts to get notified when a certain cryptocurrency reaches your desired price.

Alternatives To Revolut.com

revolut-appIf you want to get started with cryptocurrencies then we recommend picking one of the top rated bitcoin brokers here. The all offer a bigger number of cryptocurrencies. Or if you are interested in crypto trading then sign up with Binance (here is our binance review).

Should I Buy Bitcoin On Revolut?

Honestly you can’t really do much with the crypto you buy on Revolut. You can’t spend it, you can’t trade it. All you can do is to hold it and hope that its value goes up, or send it to somebody else.

Think about what your goals are when buying cryptocurrency and then decide if buying it from Revolut is the best choice.

How to Buy Cryptocurrencies on Revolut

To buy cryptocurrencies on Revolut simply download the app for free and sign up.

Once you have set up your account you can add funds in 36 different currencies or use existing crypto assets.

From there you can choose which tokens you want to buy such as Bitcoin Ethereum or Litecoin.

The minimum amount you can invest in Bitcoin is as low as $1.

Once you have purchased your desired cryptocurrencies you can choose to hold them in your Revolut account or trade them for other cryptocurrencies.

You also have the option to sell them for any of the 36 listed currencies.

It is important to note that Revolut securely stores the majority of customers’ funds in cold storage with trusted custodians ensuring maximum security for your investments.

Buy Bitcoin With Paypal

Last Update: Larry Newman Leave a comment
With the growth of cryptocurrencies, more and more traders are looking for ways to buy crypto. Every investor has his own favorite payment method and one of the most popular one is Paypal. We will show you how you can buy bitcoin with paypal.

You may have stumbled upon this article without being fully aware of what cryptocurrencies really are, given that their relevance to global online trading is still quite recent. If you already know the basics, then skip to point 3.

So before we really get into explaining how Bitcoin can be acquired into your PayPal account, we will take it in turns to describe them both in full.

1) What is a Cryptocurrency?

Cryptocurrencies (Bitcoin, Ethereum, NEO) work, for all intents and purposes, like the paper money that we are familiar with except for one very noticeable distinction: their intangibility.

  • A cryptocurrency or digital currency is a means of exchange used for trading purely information, in a process based on specific cryptographic principles.
  • Cryptography itself is what secures transaction and controls the production of new coins.
  • You may have already heard about bitcoin, the first cryptocurrency created back in 2009.
  • Now there are several hundred other cryptocurrencies that have popped up, which are collectively known as Altcoins. However,bitcoin remains to this day the most popular cryptocurrency in existence.

There are some other key differences to be mindful of when comparing cryptocurrencies to fiat currencies. They are not under any regulation by a centralized banking system. Rather, they are entirely decentralized.

Many have been configured to gradually lower their production to generate a market cap.

Bitcoin, for instance, will never exist in excess of 21 million coins. In the case of fiat currencies, there is always the possibility of creating more, which explains inflation for the most part.

The actual system by which all cryptocurrencies operate was developed by one Satoshi Nakamoto.

2) What is PayPal?

bitcoin with paypalUnlike cryptocurrencies, there is a lot less orientation required for you to understand PayPal. It is basically a financial service that offers you a safe and secure online account through which you can make your purchases.

You just need to provide details of your bank account, credit and debit cards, and you are good to go.

With PayPal, you can conduct transactions with a wide variety of places including petrol stations, retail traders, and restaurants. But you can also be paid in addition to paying.

Whatever funds you receive via PayPal will remain in your PayPal account until you use them to pay for something or have them transferred to your bank accounts/cards.

There is also the possibility of a fee being charged whenever funds are deposited into your PayPal account, for instance, when you make a sale on eBay. However, most of its functions are on hand free of any commissions.

You can even freely transfer funds to your friends and family members,as long as it uses the same currency.

3) Buying Bitcoin with PayPal

As we mentioned earlier in our description of cryptocurrencies, they are a rather recent addition to the online trading community. In fact, not even a decade has passed since the arrival of bitcoin, the oldest and most widespread cryptocurrency around.

Ever since its arrival, our methods of acquiring it have been steadily increasing and improving. Now there are several ways of consolidating cryptocurrencies that have been proven to carry immense profit potential.

Even so, it is understandable that traders would prefer to purchase cryptocurrencies without being burdened with the task of using mining equipment, creating accounts with exchanges, and having to endure processes of verification.

The more liberal investors prefer to rely on payment mechanisms they are already comfortable with, like PayPal. However, make no mistake, purchasing cryptocurrencies with PayPal is easier said than done. But it is not entirely impossible and that is what you should be counting on.

4) How hard can it be?

Unfortunately, there is no direct way of acquiring cryptocurrencies using PayPal. The solution to that is yet to be found. However, thereare other, albeit less elegant but still effective ways of doing it.

To make things easier, let us focus momentarily on the most lucrative cryptocurrency there is right now, bitcoin, and use it as an example to shed some light on the general state of trading that involves the purchase of cryptocurrencies using the services of PayPal.

In the case of bitcoin, it actually happens to be in direct competition with PayPal. Also, part of trading in cryptocurrencies like bitcoin is accepting the reality of no chargebacks, and falling victim to fraudulent commissions since your account could make an attractive target for online hackers.

5) Hard or soft?

The level difficulty with which you buy cryptocurrencies using PayPal has a lot to do with whether or not your choice of cryptocurrency is hard or soft. The defining feature with hard cryptocurrencies is that they do not facilitate the reversal of a transaction. Bitcoin, for instance, is a hard cryptocurrency. Besides, PayPal is not exactly fond of having its platform used to purchase bitcoins which could land you in a spot of bother.

If your cryptocurrency of choice falls into the soft category- that means it does allow for the reversal of payments- and for that, you can use methods like PayPal and credit cards.

Are there ways to soften hard cryptocurrencies? Yes, there are, by use of a reliable intermediary or an escrow service.

6) Alternatives To Buying Bitcoin With Paypal – VirWox

It is important to note that PayPal does allow the use of Second Life Lindens (SLLs) to make purchases with hard cryptocurrencies such as bitcoin. The demand for SLLs has seen several exchanges include it among their services and the best of them all so far has turned out to be VirWox. Although it is, in fact, the best exchange, it does not exactly operate like a full-on exchange. Rather, it offers the well-known Second Life game as a way of purchasing in-game collectibles. The game actually creates enough of a gray area where you can use in-game funds to purchase virtual funds.

7) Other considerations

If you are a forex trader, consider opening an account with something like Plus500 that is compatible with both PayPal and cryptocurrencies.

Paxful is another independent service that allows you to open an account, seek traders, and make transactions between PayPal accounts for hard cryptocurrencies like Bitcoin. There is even an escrow service here that increases security for traders.

If you are looking for other alternatives, you could deposit with paypal to cryptocurrency brokers and start trading Bitcoin and other coins.

Conclusion

Yet for all this, there is still some way to go before the purchasing of cryptocurrencies like Bitcoin with PayPal becomes a no-brainer. The existing methods will continue to improve as demand increases.

bitcoin

How To Learn Everything About Bitcoin

Last Update: Larry Newman Leave a comment

What is ‘Bitcoin’?

Well, the dry facts are that it was created in 2009 by one Satoshi Nakamoto whose identity currently remain anonymous. The main attraction of Bitcoin is the opportunity to incur lower fees on transactions relative to the conventional payment methods found online.

In addition to that, it operates under a decentralized authority. That is of course in contrast to government-based currencies. In any case, it is an idea that has now accumulated a market cap that is well over $7 billion.

And we still do not know the person or persons who came up with it. Strange times indeed.

We realize of course that we have eluded the question asked at the very beginning: What is Bitcoin? Bitcoin is a digital currency. It is, therefore, also a non-physical entity of which balances are retained in a public ledger in the cloud which also records every Bitcoin transaction.

Bitcoins are independent of any involvement from banks or governmentsand they represent no value at all as a commodity. They deal almost exclusively in a whole other realm known asvirtual currencies. We refer to them categorically as Altcoins.

Getting a Grip on Bitcoin

Being a cryptocurrency, Bitcoin balances are kept with use of keys, both public and private. These refer to multiple long strings of numbers that are connected through the same mathematical encryption algorithm by which they were first created.

The public key is very much similar to a bank account number. It is the address to which anyone can send in bitcoins. The private key is the cryptocurrency equivalent of your ATM pin number. So it is a private detail that is used to authorize a bitcoin transmission on your part.

The Mechanics of Bitcoin

Bitcoin was among the first of the digital currencies to integrate peer-to-peer technology make payments virtually instant. “Miners” is the term given to the independent persons and companies that run the underlying computer systems and are also active participants in the network.

Their incentives are based on the release of new bitcoin and payments made in bitcoin. They are the so-called decentralized authority that is so characteristic of the bitcoin network and they keep network credible and valid.

Bitcoin mining explains the process by which bitcoins are released into circulation. The main objective is to solve the complex computational puzzle that would reveal a new block which will then be added to the blockchain and receive a few bitcoins in return.

In 2009, that reward was worth 50 bitcoins and it continues to decrease ever 4 years. With an ever-increasing number of bitcoins being added, the difficulty of the mining process also increases. Back in 2009, the difficulty commenced at 1.0. However, this year, it is north of some 4.24 billion. Naturally, this meant upgrading computing power from a standard desktop computer too way faster hardware such as Application-Specific Integrated Circuits (ASIC), and more advanced processing units like Graphics Processing Units (GPUs).

What Is The Value Of A Bitcoin?

The bottom line is it is a lot. A single bitcoin today is worth well over a thousand US dollars which is exponential growth over last year when it was valued $770. The price of bitcoin is not correlated to the extent of the mining network. As for theprice of bitcoin increases in tandem with the cost of producing it. The mining network has thus far tripled its power in the past year or so.

Who On Earth Was Behind The Whole Thing?

For such a multi-billion dollar idea, you would expect to know a great deal about whoever came up with it in the first place. At least a detailed profile on the internet and the occasional public address to a group of college students or entrepreneurs or even a charity event?

But no, nothing more than aname that could refer to literally anyone has been attributed to such a world-changing idea. That name is the infamous Satoshi Nakamoto. It is thought to be the individual or group of individuals who released the first bitcoin white paper back in 2008 and developed the original computer software to support the network in 2009.

Conclusion

The bottom line is that this is now a highly lucrative enterprise that shows no signs of slowing down for the foreseeable future.

Is Bitcoin A Scam?

Larry Newman Leave a comment

bitcoinBitcoin scams have been around almost as long as the cryptocurrency itself. There has been, however, an increase in the different types of scams that conducted. This can make it quite difficult to determine what bitcoin opportunities are legitimate and which ones are fraudulent. This article will deal with some of the more prevalent cons:

Sham Bitcoin Exchanges

Bitcoin exchanges are utilized as a way of purchasing bitcoin. Users exchange traditional currency for cryptocurrency. Most fraudulent exchanges will begin the process as any exchange would.

They request the individuals to pay a certain amount of money to receive bitcoin in return. However, once the money is transferred there is no bitcoin sent to their wallets.

In most instances, you will be unable to contact these exchanges once the transaction has been made. One of the ways that these exchanges lure customers in is by claiming to have lower credit card processing rates than other exchanges.

See here how you can make money with bitcoin.

Fake Bitcoin Wallets

This is actually a scam that is relatively easy to create. This is because there are so many wallets available on the market, it can be difficult to determine which ones are real and which ones are fake. Some scammers go the extra mile and create wallets that are very similar to popular or well-known ones. Once the bitcoin is entered into the wallet, it is stolen.

Bitcoin Investment Fraud

The problem with bitcoin investment schemes is that you don’t know that you have been swindled until it is too late. These types of scams are very similar to that of a Ponzi scheme. Initially, you invest funds in an investment service.

In the beginning, you will begin to see small return on investment. What’s happening here, however, is that these aren’t profits at all. Instead, the scammers are taking money from the newer investors and giving it to the older investors. Eventually these payments will stop. You will also be unable to withdraw your funds as they have already been transferred elsewhere.

On a similar note, there are also multi-level marketing scams. These promise to reward current customers if they successfully manage to refer their scheme. These types of scams also have an initial payout but this too is from the money brought in by new investors.

False Cloud Mining Services

Some people prefer to mine bitcoin instead of buying it outright. The mining equipment, however, is quite expensive which is why many people join pools. Here, they combine their resources to purchase this equipment so that they can begin mining. Typically, once you have “bought” the equipment, you don’t see any results. Sometimes, the perpetrators may offer low profits before then disappearing with the funds.

Phishing Scams

These can take different shapes and forms. The main goal with these is to get you to go to a fraudulent website. You can be led there by emails claiming you have won something or offering you a business opportunity. In many instances, the websites may sound or appear to be ones that you are familiar with. Once there, they may trick you into handing over your information about your bitcoin wallet and then draining it.

How to Avoid Bitcoin Scams

As you may noticed, some of these scams are quite subtle and often lead you on for quite a while. Therefore, it can be difficult to determine which opportunity is a scam and which one is not.

The best thing that you can do is to always stick with exchanges and institutions that you can verify and that have been established. For instance, if you want to buy or exchange bitcoin, make sure to only do business with agencies that are well-known. Or, use reputable binary options brokers to trade bitcoin so that you can be certain about receiving what you have traded for.

You should also never believe claims that seem too good to be true. For example, suspiciously low exchange rates, free services, and similar tactics are all considered to be red flags. You should refrain from doing business over social media platforms or any sites that may seem unsecure.

Since cryptocurrency is largely not monitored by the company, it is important to avoid these bitcoin scams. If you do lose money or bitcoin due to these schemes, it is quite likely that you will not receive any compensation.

How to Make Money with Bitcoin

Larry Newman Leave a comment

make money with bitcoinOne of the main reasons to get involved in bitcoin is so that you can make money from the cryptocurrency. Although bitcoin is gaining in popularity, there are still only a few ways to make a real profit.

Here are some of the avenues that you have at your disposal with bitcoin:

1) Mining for Bitcoin

Bitcoin mining is the original way of earning bitcoin. The bitcoin mining process is where recent transactions are compiled into blocks. It also involves essentially solving a very complicated computational puzzle.

Through this method, the first person to solve the puzzle receives bitcoin in return. Bitcoin mining is a surefire way to earn bitcoin. At the same time, it is an expensive and complex process that requires highly specialized equipment.

By joining a mining pool, you can reduce some of the cost involved although the bitcoin that you receive is also shared. Mining is also losing favor as the process is becoming more popular at an organizational level rather than for independent miners.

2) Buying and Holding Bitcoin

Then you can treat bitcoin much as you would forex trading. Here, you buy bitcoin when it is at a lower value. You then wait for the price to increase and sell it to make a profit. This is actually a viable option for a couple of reasons. First, recent spikes in the value of bitcoin have made it quite valuable. Then there is the other fact that there is a limited number of bitcoin available to be mined. The total amount of bitcoin that can ever be in existence is 21 million.

It is estimated that by next year, 80 percent of this supply will not only have been mined but also be in circulation. Now, it can be difficult to predict what will happen since bitcoin doesn’t necessarily behave or perform the same way as regular currency. Nonetheless, there is a good chance that there will be an increase in demand as fewer number of bitcoin are made available. This will automatically drive the price up.

3) Binary Options Trading with Bitcoin

The other form of trading that you engage in with bitcoin is binary options trading. The brokers that do deal with bitcoin typically give you one of two options. You can deposit bitcoin into your account and use it to place trades on any asset with. If the trade that you have invested in ends up in the money, your original investment, inflated by the payout rate will be paid back to you in bitcoin.

The other choice that you have is to use bitcoin as a trading asset. This means that you will have to depend whether the price of bitcoin is going to increase or decrease within a certain period of time. If you are right about the price movement, you win that trade and receive a greater number of bitcoin.

4) Set up a Bitcoin Faucet

Most people that get started with bitcoin have visited at least one bitcoin faucet. These are websites that give people minute portions of bitcoin for playing a game or completing some small task. A great way to make money would be to start your own faucet.

Yes, you will be required to part with small amounts of bitcoin. However, advertisers use these types of faucets to place their ads or run videos. They will pay you for the privilege. This means that you will have to give up a lot less than you have to give in.

5) Get Bitcoin as an Income

If you want to earn bitcoin as a regular income, this could be managed as well. You just need to find a job that will pay you in bitcoin. It can be quite difficult to find a full-time job in a traditional industry that will give you your salary in cryptocurrency. In fact, there are only a handful of companies around the world that even offer this as an option.

However, there are many bitcoin-related sites and forums that do post part-time or freelance jobs that pay in bitcoin. Therefore, engaging in these activities means that you will have a steady flow of bitcoin.

These are some of the ways that you can make money with bitcoin. They each come with their own advantages and disadvantages so you will need to decide which one is right for your requirements and skill level.