How to earn a profit mining Bitcoin and Ether


For the past several months, miners around the world have been extremely active, which can be seen through spikes in hash rates that coincided with a significant increase in the prices of cryptocurrencies. At the beginning of 2020, Ether (ETH) could be bought for $130, and now, ETH has reached $500. The king of cryptocurrencies, Bitcoin (BTC), added almost a cool $10,000 to its price.

So, how can users engage with the industry? What has been obvious for some time now is that solo mining is not the way to go. For Bitcoin, Ether and every major altcoin, the blockchain is built in such a way that the complexity of finding blocks is constantly increasing, which means that a pair of GPU cards is not powerful enough to generate one block.

The point is not that the rig is insufficiently powerful to mine Ether, rather it’s impossible mathematically. One rig can sit there searching for a block for several months. If we are talking about mining Bitcoin on ASICs, then it will take even more time. It’s easier to go bankrupt on equipment and electricity than to mine crypto solo. The calculation is simple: divide the total hash rate of Ether by your hash rate and get the number of seconds it will take on average to find a block.

So, it seems logical that miners would flock to mining pools, especially today, as even non-mining companies are starting to launch such products. For example, Binance recently launched its own mining pool for Ether.

What to know before joining a mining pool

A mining pool is a server that combines the computing power of all the participants connected to it. Miners join the pool over the internet, reallocating their hardware to the pool. They jointly perform mathematical solutions to find blocks of a specific cryptocurrency. When the pool finds a block, the pool obtains a consensus from other network participants, then receives a reward. This reward is shared among all members of the pool in accordance with the amount of hash rate provided.

Before choosing a pool, it’s important to know the size of the pool. When a pool grows, the chances of discovering a block increase. But the more people join the pool, the less profit each participant receives. This is a double-edged sword: small but frequent payments, or bigger payments, but less often.

Before joining the pool, users need to find out the minimum , which is the minimum amount of crypto that must be mined before it will be sent to the users’ wallet. If the minimum is high, then the user will have to be part of the pool for a long time before receiving any income.

Another important thing that should be mentioned is that participation in any pool is not free. Users pay a certain percentage of their income for participating. Usually, such commission varies from 1% to 3%. In general, participation in any pool does not require serious investment and knowledge, and if the user has already put together a rig, then it will not be difficult to figure out which pool to choose. Here is what to pay attention to when choosing a pool, regardless of the cryptocurrency mined:

  • The number of participants in the pool, which affects individual income.
  • Ping time, or time delay, which is a result of the user’s computer needing to transfer information to the pool. Ping time depends on territorial distance — the lower the ping, the lower the time delay and the faster the data is transferred. A high ping is not appropriate because there are pauses between block changes in cryptocurrency networks, and with high ping, the user’s computer can go over the values ​​for the old block and mine in vain. Usually, a comfortable ping is up to 10 milliseconds;
  • The size of minimum payout, which should not be too large, otherwise the may not take place for a very long time.
  • There are many pools that are fraudulent or take a larger amount of income. Users need to find out the pool’s reputation in advance.

After constructing a rig, it’s time to choose a mining pool. Of course, most of the pools work for Bitcoin or Ether mining. Below are some of the most popular pools used to mine the top two cryptocurrencies. For Bitcoin, almost all the main pools are based in China, which is not surprising, as the country produces most of the Bitcoin mining hardware.


Founded in 2013, F2Pool is one of the oldest Chinese pools, and it’s of primary interest for Bitcoin miners. The pool accounts for almost a fifth of the total amount of BTC mined. The pool uses Pay Per Share+, or PPS+, as the payout model in which the miner receives a reward for each share accepted by the pool, regardless of the blocks found by the pool. The pool determines the cost of each share independently, taking into account the network complexity, reward, block time and the pool’s own power.

In addition to Bitcoin, the pool mines more than 40 coins. The commission, depending on the coin, ranges from 1% to 5%. As for Bitcoin, the pool takes 2.5% of the rewards as a commission, and payments are made once per day. Users must withdraw the earned money within 90 days, otherwise the pool will keep it for the development of the service.


Poolin is a pool owned by parent company Blockin that launched in 2017. The pool is popular among Bitcoin miners. Poolin offers quite a few coins to choose from: Ether, (BCH), Bitcoin SV (BSV), Litecoin (LTC) and so on. Commission fees are not fixed; rather, they are set for each cryptocurrency separately, with a 2.5% fee for BTC.

The payment model depends on the chosen coin: PPS or Full Pay Per Share, known as FPPS. Under the latter method, the pool also distributes transaction fees among miners, which adds 10% to 20% to their income. This method is used to pay for Bitcoin mining.

A notable feature is that Poolin provides mining on ASICs and GPUs from Nvidia and AMD. The development team regularly updates the software every couple of weeks to ensure the stability of the service. is one of the largest international cryptocurrency mining pools. It’s controlled by well-known manufacturer of mining equipment Bitmain, which produces a line of ASIC miners under the Antminer brand. The China-based platform was launched in 2013.

The commission for each block mined by the pool is set at 4%. Besides Bitcoin, a number of other cryptocurrencies can be mined through, including and Litecoin. Mining pool representatives keep records of its users’ income.


AntPool is a Chinese project that was launched in 2014. Just like, the pool is controlled by Bitmain. In addition to BTC, AntPool can mine seven more cryptocurrencies, including the privacy-oriented coins Dash and Monero (XMR).

Payments are made daily, and the service has low commissions, with some payments made with zero fees. In AntPool, payments are mainly made using the standard method, Pay Per Last N Share — or PPLNS — in which users get payments for the last share based on pool luck.

With this method, there is no fixed payment for the share, and the main issue is the speed of finding a block. When a pool uses the PPLNS method, the payment comes from “time shifts” between searching two blocks. It means that if the block is not found for a long time, the payment gradually increases.

A distinctive feature of the pool is the ability to work in “solo” mode — but not in the literal sense. The pool makes it possible to carry out “solo” mining through joint efforts. This means that the user whose rig has discovered the block will receive the payment.


SparkPool is registered in China and was launched in January 2018, and half a year later, the pool has entered the list of leaders in mining Ether. Additionally, SparkPool allows the mining of coins such as Nervos’ Common Knowledge Base (CKB), Grin, and Beam.

Mining takes place using the Ethash algorithm, and payments occur using the PPS+ method. Payments are made every day, based on Singapore Standard Time, and the minimum amount for payments is 0.1 ETH. On the 28th of every month, funds are withdrawn automatically if the balance is more than 0.0105 ETH, and the withdrawal fee is 1%.

Registering with the pool is optional. Users can mine anonymously, but if so, not all the functions of the pool will be available.


Ethermine is one of the most popular pools dedicated to Ether mining. This pool is the largest for Ethereum. Pool servers are located in Europe, Asia and the United States.

The pool uses the PPLNS payout model. The minimum payment amount is the equivalent of 0.5 ETH, and the maximum amount is 10 ETH. There is no commission for the withdrawal of funds, and payment comes instantly if the blockchain network is stable. The pool is intended only for mining cryptocurrency on GPU processors.


SpiderPool is a five-year-old Chinese project that only supports four coins: ETH, BTC, BSV and BCH. Nevertheless, the pool is quite popular among Ether miners.

There is not much information available for non-Chinese users, but the pool’s commission is 2%. The minimum payout amount depends on the coin, but once per week, users can apply for an amount that is below the minimum threshold. Otherwise, payments are made automatically once per day.


Nanopool specializes in coins that are mostly mined using GPU cards. Currently, Ether, Ethereum Classic (ETC), Zcash (ZEC), Monero, Ravencoin (RVN) and Pascal (PASC) mining are supported. The pool allows users to mine not only a single cryptocurrency but also two different cryptocurrencies simultaneously, with a proportional distribution of power between them. Like any other mining pool, Nanopool has a fee that is charged based on the income of its users. The pool uses the PPLNS payment method.

Withdrawing Ether from a miner’s account balance to their wallet is carried out in Nanopool automatically when the minimum payment is reached, which is 0.05 ETH.

Nanopool does not have a clear payment schedule, but payments happen in several stages throughout the day. As soon as the miner’s account balance exceeds the set minimum value, it will be paid during the next round of payment.

To mine or not to mine?

When choosing a pool, each person should pay attention to the list of available coins to make sure their coin of choice is on the list. Also, consider the payout and commission model, as a pool that offers the lowest commission and pays for transactions is preferable. Another issue is the proximity of the pool servers: the closer the server, the more stable the mining process will be.

Related: The top crypto-mining graphics cards to get a big bang for your buck

In general, it can be said that no matter what coin the user chooses, they are unlikely to lose out when using a mining pool. According to Chun Wang, co-founder of F2Pool, the entire mining industry is currently on the rise:

“Bitcoin and other cryptocurrencies mining are continuing to grow, just the same as last year. Thanks to DeFi, there has been a period of high transaction fees in the ETH network in the past few months, leading to the ETH mining revenues much higher than usual. People were attracted to buy related mining machines to mine ETH. With the decline in mining revenue, miner’s passion for ETH mining participation fades recently. But BTC and other coins’ price rising rapidly makes mining more profitable, more people are willing to participate in mining now.”


Source link

Simplifying Factors For Bitcoin Investment

There are three ways to get bitcoins – buy them in exchange, accept their payment, or destroy new bitcoins. Mining only involves discovering new bitcoins and verifying bitcoin transactions.

When computers successfully add a block to the blockchain, they are rewarded in Bitcoin. This process is called Bitcoin mining. As with winning the lottery, it’s most lucky to solve the marijuana problem. However, there are some ways to increase your odds of winning two matches. With Bitcoin, the correct answer is shown in almost every aspect of another miner related to the speed at which the computer generates a hash.

Learn how to invest in Bitcoin

In the beginning, open-source software on standard desktops could be used to effectively break Bitcoin. Nowadays, only special machines called application-specific integrated circuits (ASICs) miners can mine bitcoins cost-effectively. Mining pools and companies now control most mining activities.

If you like the idea of day trading, another option is to buy Bitcoin immediately and then sell it when its value rises. But if you see Bitcoin as the future of digital currency, your investment plan could be long-term buying and holding. Compared to other cryptocurrencies, the value of Bitcoin is highly dependent on investors’ beliefs, its integration with the financial market, the public interest in its use, and its performance. Bitcoin investments still involve some technology.

Bitcoin investment: bank account, credit or debit card

And investors should pay attention to the security issues before they start. Investors who want to trade Bitcoin need a place to store them – a digital wallet. They also need to buy Bitcoin, which is usually accomplished by connecting the wallet to a bank account, credit or debit card, and investors can join stock exchanges or online markets to trade traditional currencies, Bitcoin, and other cryptocurrencies.

Ultimately, it depends on individual needs. If you want to minimize the cost of buying large bitcoins and maximize security, this is the perfect way to keep your own bitcoin wallet and private keys, but there is room for learning.

Bitcoin investment a good starting point

If you just want to buy a little and keep a certain exposure, even a small number of transactions, some exchanges are a good way to get on the exchange. Swan Bitcoin is a good starting point for those who want to approach it for a long time with average dollar cost.

It is very important to know what you are doing and the money invested should not exceed the cost of sustaining losses. It is considered a very high-risk investment, which means that it should only account for a small part of your portfolio. If you are interested in investing in Bitcoin, there are several options. Buying bitcoin through an exchange will expose you to volatility, but choosing a trust or ETF that invests in cryptocurrencies can minimize the risk of buying coins.


How To Invest In Cryptocurrency, Securely store, Bitcoin Mining

Before you decide to buy by via a specific exchange, do your research and ensure it’s a reliable exchange. He once more in favor, due to the looks of cryptocurrency. Alternatively, should you’re in for the lengthy haul, and don’t intend to touch any portion of your stash, then a paper wallet is essentially the safest possibility obtainable to you.

First, don’t evaluate crypto bubbles with conventional monetary bubbles. All of us see that proper now quotations bitcoin on totally different inventory exchanges differ from one another by 1-5%. To store your currency, you want a cryptocurrency wallet, which is important to securely store the code that makes up your cryptocurrency portfolio. Mining pools and corporations now control most bitcoin mining activity.

Buy cryptocurrency with SEPA and credit cards – LanaCoin

The financial revolution has simply begun

There may be solely two pieces of advice about timing we can provide. When you plan to spend the summertime buying and selling a couple of coins, maybe you don’t. Maintain software wallets are essential to allow active buying and selling, as they make accessing your currency a lot simpler. The financial revolution has simply begun.

With bitcoin, arriving on the proper reply earlier than one other miner has virtually every part to do with how fast your computer can produce hashes. Watch it, get your self knowledgeable, purchase it, once you assume the timing is good. Nonetheless, the arbitration didn’t die definitively. Just like winning the lottery, fixing hashes is usually a matter of probability. And don’t buy-in, since your concern that it’ll explode tomorrow. There may be one other.

At present, solely special-purpose machines often known as an application-specific built-in circuit (ASIC) miners can mine bitcoin cost-effectively. Within the early years, bitcoin mining might be carried out successfully utilizing open-source software programs on normal desktop computer systems.

Bigger bitcoin holdings

Don’t promote too early. This course is called bitcoin mining. In case you join a Coinbase account, you automatically obtain a Coinbase software wallet.

Second, take a while to observe. 100 percent up is usually a bubble, however, typically it’s simply the beginning of it. 10 percent up just isn’t a bubble however will be every day volatility. And, possibly most vital: don’t be a weak hand. 1,000 percent may be a bubble normally, however, there isn’t a assure that it pops.

29 Best Investing in cryptocurrency images | Investing ...


Store cash extra securely

Although the main software wallets are reliable, standard third-party corporations have collapsed, or been hacked, up to now. Very like you would not store 1000’s of {dollars} in your mattress, customers with bigger bitcoin holdings should contemplate storing their cash extra securely. Once we say “send it to your wallet,” we don’t imply you place your Bitcoin into a precise wallet. There are lots of questionable exchanges popping up today, and you may find yourself getting scammed if you’re not cautious.

When computers efficiently add a block to the blockchain, they’re rewarded with bitcoin. Nonetheless, there are methods to extend your odds of profitable in each contest.

Don’t buy-in, as a result of there was a dip. You’ll be able to have both a software wallet or a {hardware} wallet. And for a number of the Altocums, the distinction can generally be as excessive as 50%.”



How (and Where) To Invest In Cryptocurrency 
How To Invest in Cryptocurrencies: The Ultimate Beginners 
How to Invest in Bitcoin 
How to Invest in Cryptocurrency: A Beginner’s Guide 

Bitcoin Scams And How To Avoid Them: 5 Killer Ways to How To Avoid

The value of Bitcoins has risen significantly over the last few years so it is no surprise that there are scammers out there that want to steal Bitcoins or take your money for no return. Here we will discuss the most common Bitcoin scams and how you can avoid them.

The Fake Bitcoin Exchange

Buying and selling of Bitcoins are usually performed using a Bitcoin or cryptocurrency exchange. Some of the exchanges will allow you to purchase Bitcoins in your native fiat currency while others will allow you to use other cryptocurrencies to exchange for Bitcoins.

There are many cryptocurrency exchanges available and more joining the group all of the time. Not all of these exchanges are legitimate and some exist to steal your Bitcoins or your money – or both.
To all intents and purposes, these exchanges look and feel like real ones. They will display real-time prices and have a trading platform. But they will just take your Bitcoins and siphon them off to their accounts or take your currency and never provide you with the Bitcoins you paid for.

Malware Scams

‘Malware is a small computer application that downloads onto your computer. Recently there have been cases of malware that have keyloggers detecting all of the keystrokes you make. These can discover your private keys for Bitcoin or your login details to a cryptocurrency exchange.
When this happens hackers will use this information to steal your Bitcoins. You can download malware without realizing it and the cybercriminals are getting better at this with each passing day. Never click on a website link that you don’t entirely trust.

Email Phishing

This is another popular scam. Thieves purchase domain names that are similar to reputable exchanges. For example, they might get their hands on rather than

They then send fake emails using these domain names and ask recipients to check their cryptocurrency accounts. They provide a link in the email which goes to their fake website. It looks exactly like the real login page of the legitimate exchange.

The user has to enter their login details which the hackers steal. Hackers can prevent the user from logging in to their real accounts and very quickly they divert any Bitcoins in their wallets to their accounts. You need to thoroughly check any link in an email that has supposedly come from your cryptocurrency exchange.

Bitcoin Doubling

You may have come across websites before that claim that they can double the amount of Bitcoins that you hold or provide you with a guaranteed return on your Bitcoins every day. Nobody has the power to double your Bitcoins and with the volatility of the digital currency guaranteed daily returns are impossible as well.

If you see any websites making these claims then stay well away from them. There the only intention is to steal your Bitcoins. Sometimes they will pay out for a few days and then completely disappear along with your Bitcoins.

Bitcoin Cloud Mining

The thought of free money compels a lot of people to look into Bitcoin mining. It is very expensive to buy and run the computer equipment needed to do this on your own so lately cloud mining solutions have emerged where you can pay a company to do this for you.

There are some legitimate cloud mining services but there are scammers as well. It is not cheap to get involved with cloud mining and the scammers take your money and of course, they do not perform any mining on your behalf.

bitcoin scam

Additional Scam Methods To Avoid

Someone will contact and tell that you have some kind of adventure waiting for you behind the corner to start living your dream life and that you only need to invest in their company and you are required to pay with bitcoin or other cryptocurrencies, it can even shield you, through threats or using embarrassing secrets against you and by paying them in bitcoins they will not spread the rumor.

These scam artists are very good at fooling people by using the digital currency Bitcoin. Cybercriminals have already scammed hundreds of thousands of people around the world and to counter more victims of these low-vibration thieves, there is a way to avoid the trap.

Keep in mind that scammers use deceptive information, such as false testimonies, warnings, and other user’s experience to cook up a story, then trigger feelings of hope and then trick you into the trap. Some of the scammers have gone so far as to threaten families to pay them in bitcoin otherwise they will spread the coronavirus.

Scam artists usually show up as a credible person either from government, family member, organization, or as a corporate partner. Don’t respond to emails, unknown phone calls that come with unlikely offers, especially when it comes to emails. One of the most important is to do a search on the net to find out companies that contact you, which are they? when making search online use keywords like “scam” “Complaint” or “fraud”

If someone calls and asks you to pay money for a service put on immediately if unsure please feel free to look up the number, avoid paying in advance via an exchange, they claim you have won a prize, do not believe it. Never disclose personal information to anyone you have not looked up to ensure they are credible.

Credible authorities do not usually contact people out of the blue and demand information and then ask for payment via, for example, western union or Moneygram. Unlike credit cards where there is protection, payments through these ways are difficult to get money back. These scammers have many different methods, it is easy to fall into the trap they can even offer a free trial, and then when the period is over, they continue to withdraw money from your account. So be extra careful to look over your account so that you can stop these ongoing payments immediately in advance.

Here is a list of places to get help when lost money to a scammer:




Bitcoin Wallet Doesn’t Have To Be Hard. Read These 5 Tips

The Lowdown On Bitcoin Wallets

The blockchain technology used for the Bitcoin network is very secure. But some Bitcoin wallets are not so secure. You need a wallet to store your Bitcoins in and to make transactions.

There is no need for you to confine yourself to one type of wallet. In fact, we strongly recommend that you have more than one.

If a thief or a hacker accesses your Bitcoin wallet then they can transfer all of your currency into their accounts. And remember that blockchain creates immutable records that you can’t change so there is no chance of you getting your Bitcoins back if this happens. So let’s take a look at the different types of wallets.

Online Wallets

If you use a cryptocurrency exchange to buy and sell Bitcoins as most people do they will provide you with an online wallet to store your Bitcoins in. These are very convenient as all you need to do is connect to the Internet and you can use your online wallet to perform transactions.

A mobile wallet is an online wallet for mobile devices. Online wallets are “hot wallets” which means you can call them into action immediately for your Bitcoin transactions. You can access your online wallet with an Internet connection from anywhere in the world. The problem is so can thieves and hackers.

The other issue with online wallets provided by cryptocurrency exchanges is that the exchange can block your access to your wallet if you have your account suspended for some reason. If they close your account for good then you will lose everything.

Desktop Wallet

A desktop wallet is a software application that you download to your laptop or desktop. It is a medium-security wallet. If you disconnect your computer from the Internet then there is no way that a hacker can access your desktop wallet. But as soon as you connect again you are somewhat vulnerable.

It is a lot more difficult for a hacker to access your desktop wallet than it is an online wallet. But it is possible. If your computer becomes inoperable and you haven’t made a backup copy of your desktop wallet then you will lose everything.

Paper Wallet

In this scenario, your Bitcoin wallet is a piece of paper with all of your private key information on it. You might think that the idea of using pieces of paper to store your Bitcoin information doesn’t really match up with modern technology but actually it is a very safe way to store your Bitcoins.

There are no recorded cases of cybercriminals hacking pieces of paper and nor are there likely to be. The biggest issue with paper wallets is where to keep the paper so that nobody else can find it. If you have a lot of Bitcoins then consider a safety deposit box.

Hardware Wallet

A hardware wallet is the most expensive option and is usually a USB stick that you can carry around with you wherever you go.

These are the most secure Bitcoin wallets out there and if you are going to be a serious investor then we highly recommend that you get one.

All you need to do is to plug the hardware wallet into your computer when you want to make a Bitcoin transaction.

When you complete the transaction remove the hardware wallet and keep it in a safe place.

bitcoin mining is it worth it?


Is It Worth Getting Involved With Bitcoin Mining?

Bitcoin mining is essential to keep the Bitcoin network going. The miners verify and confirm all of the Bitcoin transactions and without them the whole thing would grind to a halt. There would be no more transactions and no new Bitcoins created.

What is Bitcoin Mining?

Bitcoin miners use very powerful computer equipment to update the Bitcoin decentralized ledger. They need to solve very complex cryptographic challenges and the first to do this will update a block and receive a reward in Bitcoins (at the time of writing this is around 12 Bitcoins).

With Bitcoins being worth thousands of dollars these days this seems like a really good idea. But is it really? You cannot perform Bitcoin mining successfully with a powerful desktop computer. You need to invest a ton of money into very high-end computing power and then pay for the running costs of these computers.

The Process of Bitcoin Mining

Anyone can get involved in Bitcoin mining. There are already thousands of Bitcoin miners that update the Bitcoin blockchain ledger and thousands more want to get involved. With Bitcoin mining, you need to guess a number that will solve an equation that the blockchain generates.

You need to use powerful computers to make these guesses. When you have a lot of computing power you can make many guesses per second which increases your chances of being the first to get it right.
When you guess right the mining software on your computers works out which of the current pending transactions need grouping together in the next block for adding to the blockchain. After this, the entire Bitcoin network validates the transaction.

Bitcoin Mining is difficult

The inventor of Bitcoin and blockchain, Satoshi Nakatomo, created rules for mining where the more mining power in the network the more difficult it is to guess the right random number. As more and more people are becoming Bitcoin miners the difficulty level continues to rise.

The reason behind this increasing difficulty is to create a regular flow of Bitcoins. In reality, this means that it takes around 10 minutes to create a new transaction block on average. The actual times vary considerably. It is all about mining power these days and the more you have the more likely you are to succeed.

Bitcoin Mining Pools

To get involved in Bitcoin mining these days is beyond most individuals. The costs of the equipment required and the running costs are just too much. There is increased competition as well with many miners collaborating together.

One solution to this problem is the Bitcoin mining pool. This is a simple concept where groups of people create a pool and combine their mining power and share the rewards. Even small players can get involved with Bitcoin mining in a pool.

There are a number of large Bitcoin mining pools existing today. They will take a percentage of any success that you have. Usually this is around the 2% mark.

So is Bitcoin Mining worth it?

If you are a newcomer then the answer to this is probably not. There are a lot of factors to consider if you really want to get involved in Bitcoin mining. If you want to go it alone then you will have to invest a ton of money into computers that can make very high numbers of guesses every second.

Then you have to keep these supercomputers running which usually means storage costs (they need proper cooling as they run all of the time) and electricity costs. In truth, you would be better off using the money that you would need to invest to purchase Bitcoins.

The Legality of bitcoin and cryptocurrency

Bitcoin and other cryptocurrency is a new technological innovation that has not yet been fully implemented into the legal framework of many countries across the globe. There are many legal aspects of Bitcoin and cryptocurrency in general to consider. The laws that apply to Bitcoin typically apply to other cryptocurrency, the umbrella term Virtual Currency is often used. The following will be discussed: Legality of cryptocurrency in different countries, taxation, money laundering, other legal issues, and legal status by country.


Bitcoin and cryptocurrency have various legal aspects to consider depending on the country. Some countries class Bitcoin and other virtual currency as money and legal, some class it as an asset and legal, some class it as neither illegal nor legal, with no legal frameworks in place.

In Russia, Ecuador and Bangladesh, Bitcoin is Banned outright, in other countries such as China, Bitcoin is illegal for commercial use but legal for private individuals to hold, trade, mine, buy and sell. Some countries Bitcoin is banned due to already existing laws, such as Iceland.

In the United Kingdom however, like many countries, Bitcoin is unregulated with no legal framework in place. However, a recent ruling in the EU court system meant Bitcoin was exempt from VAT taxes in any EU member state.

Legality of bitcoin cryptocurrency

The countries where most or all use of Bitcoin and other virtual currency is illegal are:

  • Bangladesh
  • Ecuador
  • Iceland (Excluding Mining)
  • Thailand
  • China (legal only for private individuals)
  • Russia Kyrgyzstan

The next section will discuss taxation and taxation issues on Bitcoin.


The subject of taxation is one of the main issues to come up. Due to Bitcoin’s pseudo anonymity if used correctly, usage of Bitcoin to hide assets and help reduce taxation is not too difficult provided the person follows precautions doing so. Bitcoin is often classed as an asset in many countries for tax purposes, such as in the United States. While bringing large amounts of foreign currency into a country can cause tax issues, bringing in or storing a Bitcoin private key online makes it much easier to bring money past border checkpoints, where you can cash it out when in the country, effectively bypassing taxes of this kind.

For legitimate taxpayers, Bitcoin income can be declared at the current exchange rate in most places, although good record keeping of Bitcoin to fait transactions and vice versa is recommended, depending on the tax laws in your jurisdiction which should be researched. In countries where it is illegal, taxation has typically not been considered in the law as it is supposed to be banned.

It is typically illegal to avoid taxes, although some countries have legal loopholes. Ensure that you are paying the correct taxes on any Bitcoin income by researching the tax laws under your jurisdiction, some countries may class Bitcoin and crypto currency as an asset not a currency so the tax situation may differ.


Money laundering is typically considered for designing legal framework when Bitcoin is discussed. Bangladesh bans Bitcoin outright under existing Money Laundering statutes. Money Laundering is a key legal problem with Bitcoin due to the ease of moving money between countries, in seconds with no monitoring. While it can trace Bitcoins bought through banks, when cash or other hard to trace methods are used to obtain the coins, they can then be moved.

Using it to launder money on a large scale is risky, due to the publicity of the blockchain ledger. More advanced police forces are learning how to analyse the public Bitcoin ledger to work out where funds went. Money laundering is typically illegal in virtually all jurisdictions, regardless of how it is done, although some have loopholes. Countries such as South Korea have given legal advice that they would not outlaw Bitcoin, but that any illegal activities of this kind involving Bitcoin will be prosecuted.



Other key legal issues of recent times include the following:

  • Large thefts of Bitcoins prompting industry action.
  • EU court hearings on weather VAT applies to Bitcoin, the courts ruled Bitcoin is VAT free.
  • Banning of Bitcoin in certain countries.
  • Bitcoin taxation in the US eventually declared Bitcoin as an asset.
  • Loss of Bitcoin private keys hard to prove.
  • Online drugLegality of bitcoin cryptocurrency marketplaces.
  • Chargeback ability and scams.
  • Hiding assets.
  • Lack of legal protections.

Large thefts of Bitcoins such as the exchange Mt. Gox resulted in pressure for regulators to regulate Bitcoin, the deregulated nature of Bitcoin can make this very difficult during large thefts.

There was a recent court ruling in the EU, allowing Bitcoins to be transacted without VAT being applied, in a manner similar to gold.

Bitcoin has been banned in certain countries, the list is above.

Bitcoin taxation was a widely discussed issue in the U.S. While the U.S classes Bitcoin as a virtual currency, it classes Bitcoin as an asset for tax purposes.

If someone has held large quantities of Bitcoin, if they somehow lose their private keys, this is hard to prove and a tax jurisdiction may treat you as still owning those coins as it is difficult to prove otherwise, although over time none of the coins moving on the blockchain would prove the person has not used them, either because they won’t or cannot.

Recently the online drugs marketplace silk road was closed down. The marketplace was able to transact without being traced due to the use of Bitcoin, although the design of the site caused it to give away the server’s real IP address and eventually after years of investigation resulted in the capture of those running it. They had not properly secured their wallets either, resulting in the FBI being able to seize the coins and auction them. Some corrupt FBI agents tried to steal some of the coins but were caught partially due to the publicity of the blockchain.

Due to the one-way nature of Bitcoin transactions, there is little protection from scams with no ability to chargeback if needed, but this can also work the other way, preventing fraudulent chargebacks. This is one area of a legal framework which is being considered in some jurisdictions.

Bitcoin can be used to legally or illegally hide assets, for example in divorce cases etc. This is very easy to do and if done correctly difficult to prove. It is a legal loophole in some places, illegal in others. Check your local laws if in doubt.

Lack of legal protections can be a problem, especially if you are scammed when using Bitcoin due to the deregulated nature of bitcoin. This should be taken into account when using Bitcoin.

These are some of the key recent legal issues that have come to light concerning Bitcoin. The next section will discuss legal status by country.


This section will discuss the legal status of Bitcoin by country. It will discuss unregulated, regulated, restricted, and banned countries. This is the current list as of September 2016 and may not include all countries.


Unregulated is where no legal framework is yet in place, or the use of Bitcoin has been deregulated and is free to use in any capacity with no or very few legal restrictions.

New Coins on the Block: Cryptocurrencies that could Emerge in 2020
  • United Kingdom
  • Australia
  • Belgium
  • Brazil
  • Columbia
  • Chile
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Greece
  • Hong Kong
  • India (Although many Indian banks do not allow transactions pertaining to them)
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Lithuania
  • Malaysia
  • Malta
  • New Zealand
  • The Netherlands
  • Nicaragua
  • Pakistan
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Turkey
  • Vietnam
  • Nepal
  • North Korea (tourists have used Bitcoin on the tourist internet services with no problems, most North Korea citizens have no access to the public internet)
  • Papua New Guinea
  • Antigua
  • Barbados
  • Iran
  • Iraq
  • Somalia
  • Afghanistan
  • Egypt
  • Saudi Arabia
  • Oman
  • Qatar


Countries where Bitcoin use is legal but specifically regulated for tax or other purposes, and in some cases classed as money are:

  • Finland
  • France
  • Germany
  • Japan
  • South Korea
  • Jordan
  • Lebanon
  • Luxembourg
  • Spain
  • Sweden
  • Switzerland
  • Canada
  • Mexico


Countries, where Bitcoin use is restricted but legal in some circumstances, are:

  • China (Private Individuals may transact, corporations and banks cannot, mining is legal).
  • Iceland (illegal to buy/sell, but mining is legal)
  • Taiwan (legal to buy/sell, transact and trade, but ATMs for Bitcoins are not legal)


Countries, where Bitcoin use is banned outright, are:

  • Russia (banned outright)
  • Bangladesh
  • Thailand
  • Kyrgyzstan
  • Ecuador


Most Bitcoin use around the world is legal and unregulated at present. Some countries have incorporated it into their financial system, but very few have outright banned it. Bitcoin has therefore got a great potential to become a global currency. Even in countries where it is banned, it is very difficult to regulate the use fully without internet censorship. It shows there is a great potential for growth and incorporation into legal frameworks and to the existing financial system. The key legal issues surrounding Bitcoin have been discussed and these are the main issues nation states consider when considering legislation for Bitcoin.

If Bitcoin popularity increases further, more countries may regulate it, although it does not seem like many are considering banning it.


There are likely to be more legal precedents set in the next few years surrounding digital currencies. This document has discussed the key legal issues surrounding Bitcoin, and the current legality of Bitcoin in 2016 in many countries. Further legal developments over the next several years are likely to occur, for both good and ill of Bitcoin and other cryptocurrency.

What Profit Can I Earn From Bitcoin Mining?

There are ways to profit from bitcoin mining. Ways to earn from bitcoin mining typically involve an upfront investment of mining hardware. Raw mining earnings are calculated by the mining power of your bitcoin mining hardware, measured in hashes per second, and the current difficulty and block reward of the bitcoin network.

Most modern hardware measures its power in TH/S (trillion hashes per second) please note that bitcoin mining is not a get rich quick scheme. This article will discuss the factors affecting profit, the best process to follow to make a profit if it’s possible with your power costs, limitations on small-scale operations, how to secure your earnings from theft/loss, alternative mining options, and prospects of making a profit. This is a moderate risk investment and many factors that will be discussed in this article must be considered.

What factors affect profit?

  1. To earn from bitcoin mining you need to consider the following in your bitcoin mining calculation:
  2. Upfront hardware cost, the price you pay for the hardware
  3. The mining power of your hardware, in TH/S
  4. Mining difficulty
  5. Power consumption of the hardware
  6. Your electricity cost
  7. The climate of your country
  8. Bitcoin price
  9. Block reward, which halves every four years, the last halving occurred in 2016.

What is the best way to profit bitcoin mining?

First, you need to evaluate your current electricity cost, before anything else. This is typically measured per kWh. This is how much it costs a 1,000-watt device to run every hour.

Second, you need to look at mining hardware options but do not purchase yet. Unless your electricity is free, you will not profit with anything lower than an Antminer S7, but even that is limited in profit. The Antminer S9 is the latest hardware, costing around $2000 USD and mines on average at 12 TH/s. It consumes around 1,300 watts of power. To evaluate your upfront cost, including any import duty of your country. If you are in a hot climate, you can reduce the miner’s hash rate which reduces power consumption, but also reduces earnings. Most hardware cost does not include a power supply with high-quality cables, this is required.

Third, you need to evaluate the current bitcoin price, the price of hardware is adjusted for this.

Fourth, you want to enter your hardware and electricity cost into a bitcoin mining calculator. Typically, with an electricity cost of $0.10 per kWh at the current exchange rate of $590 per bitcoin as of writing and $2000 upfront hardware cost, monthly profit is $153 USD, with $1866 after a year. This is at 12 TH/s, with a power consumption of 1300 watts, with a current difficulty of 217G. The difficulty is increasing over time though, slowly eroding your earnings every month. At those prices, you are looking at over a year to break even with the best hardware. If your power is subsidized or ‘free’, you can greatly increase the profit margin. Free power will result in a $1000 profit after a year with the same hardware based on the current data, not taking into account difficulty increases or import duties as in EU countries and other countries. Only use gold or platinum power supplies, these are more efficient in converting mains voltage into lower voltages and thus cost less to run.

Fifth, once you are happy with your figures, and you are prepared to make the investment, make your investment, set up the hardware, and mine!

What are the Limits of small scale mining operations?

There are many limitations of small scale mining operations, which can include:

1. Limit of power draw in your home. In countries with 220/240 volt supplies such as Europe, this is often 4800 watts, but room must be made for other devices such as fridges, oven, etc. This figure is half in 110/120 volt areas such as the U.S and Japan. Check your wiring and breaker ratings as your electrics may differ.


2. Heat production, especially in hot climates and during summer months, which can be uncomfortable at best, and in the case of serious rises in temperature can cause illness. Underclocking to reduce heat and power consumption reduces earnings but can negate this issue.

3. Noise, especially in a small apartment this can cause noise that can become unbearable as the later gear is not quiet. Underclocking to reduce heat, and therefore fan speed and reduce the noise is recommended. The loud noise of over 90 decibels (dB) constantly can cause hearing damage in the long term with continued exposure.

4. Power grid reliability, if in a country with unreliable power can cause lost mining time, this should be factored into profits.

What are the pitfalls in mining for profit?

  1. Hardware breakdown outside of the standard 90-day warranty. This can leave the miner severely out of pocket.
  2. Pre-Order of hardware. Late delivery while difficulty is ever rising can reduce profit or in the case of the KNC Neptune miners, make a return on investment (ROI), impossible.
  3. Larger scale operations due to the high power draw and heat require proper electrical installations and installations of cooling, and possibly a three-phase electrical supply. This cost must be factored into calculations when investing in a mining farm.
  4. Insurance for large scale operations.
  5. Pool downtime, which can cause lost mining time. Set up failover pools for this scenario.
  6. Power usage should be measured at the wall, and this can vary depending on power supply quality. A gold or platinum rated power supply is best.

How do I secure my earnings?

If you are mining for profit, you will have invested large sums of money into your investment. Bitcoin is inherently secure, but the private keys for your wallet are stored on your machine if you use the typical wallet software. This leaves the coins vulnerable to malware, even when your wallet is encrypted when the password is entered the private key is loaded into memory, leaving it vulnerable to malware. A single hack if all funds are kept in a single wallet can wipe out your entire earnings/bitcoin holdings in seconds. The following precautions should be taken when mining/handling bitcoin or bitcoin hardware:

  1. For long term storage, NEVER store your bitcoins in an online wallet. If the provider goes bust or is hacked, your coins can be lost. If you do not have exclusive possession of the private keys, coins are at risk of loss or theft. Do not store large amounts on an exchange at once. An exception to this rule is the coin base multi-signature vault due to how the keys are shared between you and coinbase.
  2. Set up a two-step login on any online wallet or exchange service if you must use them, especially in the case of exchanges.
  3. Exchange small amounts of bitcoin at a time.
  4. Invest in a hardware wallet for long term storage or even general use. This keeps private keys in the device even when signing transactions and renders it invulnerable to most malware and has a recovery seed if the hardware becomes lost or damaged, this recovery seed should never be stored on a computer but handwritten and kept safe. TREZOR and LEDGER are the two main hardware wallets.
  5. Never use vanity addresses unless generated on your own machine. Vanity websites have had possession of your private keys and you never know if they kept them or not, reports of theft from these websites down the line is not unheard of.
  6. Keep backups of any wallet private keys/recovery seeds, loss of data due to computer failure can cause the loss of coins. One such user lost over $1 million in bitcoin through the loss of data.
  7. Ensure your hardware has a warranty.
  8. Ensure good quality cabling and power supplies are use, and surge protection equipment is installed.
  9. Do not overclock your hardware, this can shorten its useful life.

What are the alternative ways to profit?

There are alternative ways to profit when mining for bitcoins. They can include any of the following methods:

  1. Mining altcoins as they become profitable and converting them to bitcoin. Some of these can be mined with general-purpose hardware such as graphics cards. Some pools are set up to do this automatically.
  2. Mine Litecoin with KNC Titan hardware. This has a high upfront investment but Litecoin difficulty is typically much more stable and does not increase as much as bitcoin difficulty. The price of Litecoin is stable like bitcoin. ROI time is typically shorter, although due to the KNC Titan power consumption a 240-volt electricity area is recommended.
  3. Rather than mine, buy and hold coins at the right prices and trade them.
  4. Mine until you are near to breaking even and then sell your hardware, if done at the right time before any significant drops in the price of your hardware you can make a tidy profit.
  5. Buy a single piece of hardware and my solo. You do not get paid if you do not find a block, but getting lucky can result in a tidy profit. One individual mined with an old piece of outdated hardware and hit a block within a month when the average time was 22 years with the said hardware, he walked away with 25 bitcoins. This depends on luck, among other things, but if you are fine with taking risks this is a high-stakes option. Hitting a block means you could sell your hardware right away to recoup that also. It is an all-or-nothing venture, however. The higher the mining speed, the more chance of finding a block.
  6. If mining at home in colder months or climate, consider replacing your heating system with the heat output from the miner. This can offset the power cost and reduce or remove it from the equation, greatly increasing the chances of profit.

What are the future prospects of making a profit?

The overall prospects of making a profit for a small scale operation is quite low in countries with a high electricity cost such as EU countries many of which also have high import duties, but a greater chance of success in countries with a cheaper power cost and lower duties, such as the U.S and China, or places with subsidized power.

If you are in a colder climate, such as the United Kingdom, Nordic countries (such as Norway or Sweden), Northern United States, Canada, Alaska, Northern Russia, Iceland, Greenland, or Korea, consider replacing your heating systems with mining hardware. This can greatly increase profits during winter months or more if it’s cold all year around.

The future of bitcoin mining for profit is not a get rich quick scheme and should be carefully researched, and it only stands to get worse with the difficulty increase, unless bitcoin prices do not increase.


Making a profit with bitcoin mining is possible, but a high upfront investment is needed, and there is a risk involved that is moderate. Thorough research needs to be done before investment. Keep this in mind when calculating mining profit and attempting to earn from bitcoin mining. It is no getting rich quick scheme and this must be taken into account when you start mining for profit. It has the potential for a reward with commitment. If you are in a colder climate, consider replacing your heating system with your hardware, this can greatly reduce or even eliminate the power cost from your equation during colder months.

Many people and mining farms do make a profit, but many more have made a loss, especially where hardware pre-orders are concerned, some mine for a hobby. Take all the factors discussed in this article when calculating bitcoin mining profits, and be sure this is an investment you want to pursue, and never invest what you cannot afford to lose.

The Absolute Beginner’s Guide to Cryptocurrency Investing

References are made wherever possible. All statements are based on the author’s experiences. I take pride in informing the public and helping as many as I can through sharing my experiences with my readers. That said, no one except you can take responsibility for your Cryptocurrency Investing decisions, so do think it through before investing.

It would be appropriate to start this guide off with the premise that an increasing number of e-commerce stores are beginning to accept cryptocurrency payments. These stores range from vape shops, recruitment sites, clothing stores, marketplaces, and many others. This is a clear indicator that cryptocurrency is to stay and it is, therefore, important to start from the beginning.

When I first started taking an interest in cryptocurrency I thought I was so lost in this huge sea of unknowns. Where do I start? What are the useful keywords to look up and keep in mind? What are the available helpful resources? This cryptocurrency investing guide is written so that in just 20 minutes, you would have a sense of what to expect of your upcoming crypto journey, and how to best go about starting it. Enjoy it, it might just be the most exhilarating ride of your life.

The Absolute Beginner’s Guide to Cryptocurrency Investing

Rise of the Cryptocurrencies
As the tech literacy of the population increases, acceptance of crypto as a legitimate store of value follows, and it boomed. Titles along the lines of ‘Bitcoin price hits new all-time high’ and ‘Ethereum price surges’ are starting to perforate the general public’s news feed. What we know for sure is that people who were once sceptical of Bitcoin and the technology behind it are slowly understanding and getting increasingly involved with crypto. As at the time of writing, the market cap of the entire crypto space is at 30.9 billion USD. It was 20 billion just four months ago. What would it be four months from now?

Current Makeup of the Cryptocurrency Space

You would have heard of Bitcoin and the ‘altcoins.’ How this naming convention started was because back in the days of 2011, forks of Bitcoin appeared in the markets. The forks, or clones, each aspire to serve a niche area, aiming to be ‘better’ than Bitcoin. Since then countless new crypto has emerged, eroding away Bitcoin’s crypto market cap dominance. These altcoins are gaining market share at an alarming speed. Ten times or more growth has been observed in a time span as short as six weeks (see PIVX, an altcoin).

Cryptocurrency, Stocks, and Fiat

The currencies we know are referred to as ‘fiat’ by the cryptocurrency community. Although having ‘currency’ in its name, cryptocurrencies share more similarities with stocks than currencies. When you purchase some cryptocurrency, you are in fact buying some tech stock, a part of the blockchain and a piece of the network.

QuinceMedia (CC0), Pixabay

Cryptocurrency Exchanges

The most common place where people buy and trade cryptocurrency is on the exchanges. Exchanges are places where you may buy and sell your crypto, using fiat. There are multiple measures to judge the reliability and quality of an exchange, such as liquidity, spread, fees, purchase and withdrawal limits, trading volume, security, insurance, user-friendliness. Out of all these, I find Coinbase as the best exchange hands down. It has a beginner-friendly user interface, and an unbeatable 100% crypto insurance.

After setting up an intermediary bank account and verifying your details with Coinbase, you are only five simple steps away from a Bitcoin purchase:

Access the ‘Buy/Sell Bitcoin’ tab

Select the payment method using the drop-down menu

Enter the desired amount

Click ‘Buy Bitcoin Instantly.’

View your credited Bitcoins on your dashboard

When you get acquainted with buying crypto and start to itch for some crypto trading (e.g. BTC/ETH), simply perform an instant transfer from Coinbase to GDAX free of charge and start trading. Think of Coinbase as the place to conveniently buy and store your crypto and GDAX as your margin trading platform. Transfers between the two are instant and free.

As you slowly get familiar with other currencies, you might want to have the option of investing in them. Bittrex and Polo are two exchanges that offer a wide selection range.

When signing up on these exchanges for the first time, do make it a point to verify your account with the required documents early, as you do not want to be caught in the middle of some tedious and slow admin work when the trading opportunity comes. Verification on these exchanges may take days, and purchase/withdraw limits may only increase gradually as you trade.

An additional point to note: if you are using a currency other than USD, do check out the exchange’s ease of funding and withdrawal. You do not want your exchange to come into fiat withdrawal problems like Bitfinex did recently.

DavidRockDesign (CC0)

Cryptocurrency Wallets

Exchanges have inbuilt online wallets to keep the cryptocurrency you purchased. However, for those who heard of the Mt. Gox hack, you might feel uneasy to put on an exchange. If you do not wish to keep your crypto holdings on the exchange, you have the option to either use a paper wallet service like or spend 99 USD on a hardware wallet like KeepKey. Both serve the purpose of removing platform risk, at the cost of taking up the responsibility of keeping your cryptocurrency safe.

To transfer your crypto from exchanges to your hardware wallet for long-term storage, simply follow these steps, using Coinbase and KeepKey as an example:

Plug in your KeepKey USB cable

Open your KeepKey Client (on Google Chrome under Apps)

Find your wallet address on the KeepKey Client UI

Access Coinbase ‘Send/Request’ tab and input your KeepKey wallet address

Confirm amount and click ‘Send Funds’

Take note to first send a tiny amount (e.g. 0.0001 BTC) for testing before sending the bulk, lest an error occurred and the transfer amount is lost. A small network transfer fee might be charged.

Personally, I own a hardware wallet, as I love the feeling of a having around a tangible reminder of my crypto holdings. Also, the hardware wallet’s user interface makes it easy to keep multiple coins, which is especially handy when you participate in ICOs (Initial Coin Offering) in the future.

Cryptocurrency as a Percentage of Your Investment Portfolio

This part will be wildly subjective. Crypto has the potential to realize many ‘rags to riches’ stories, but its volatility makes it unpredictable. As a precaution, the money you put in crypto should be money that you are fine with losing. I cannot emphasize the importance of this as we often underestimate how volatility affects our emotional capacities. The upside is huge, but it comes with lots of risks and, if I may put it, emotional torment.

A conservative portfolio I would suggest is as follows:

30 years old (max) 30% Crypto, 50% Traditional Investments

30 – 40 years old (max) 20% Crypto, 60% Traditional Investments

40 years old (max) 10% Crypto, 70% Traditional Investments

This is not meant to be age discriminatory but considers the fact that one takes up more financial responsibilities (mortgage, family) as he grows older.

Within the designated crypto share of your portfolio, you may diversify your coins based on your risk appetite.

Show Me the Money! Cryptocurrency Investing
Now, this is where it gets exciting.
How do we pick the winner? How do we avoid picking the loser?

Note that crypto is now in a huge bull market and anything could rise over time. Also, do not dismiss the possibility that we may be in a bubble like the dot-com boom back in 2000. Still, ask yourself these questions before you decide to invest in a coin:

Are my investments safe with the dev team? The first rule of investing should always be the preservation of capital. Can you trust the dev team with your money? Are you about to leave your money with founders who have been involved in previous scams? If you see these telling signs, back off immediately. The coin’s price might grow for all you care, but it is just not worth it to put your capital at such risk.

Does my coin of interest have a long-term plan? If you cannot understand their yellow paper, at least read their white paper. What are the team trying to achieve? Do they have the means, or have they already worked towards their goals? What are the timelines and milestones?

Does my coin of interest seem like a well-marketed plan with no backup? Lots of ICOs these days just have a pretty webpage, and then they’re shipped out to sell. Watch out for these: are they able to deliver?

How long should I stay in this? Do I have an exit plan? There will be coins where you do not want to hold forever, but wish to flip for some short-term gains. In this case, be sure to set a timeframe, or an exit price, to reduce to effect of emotions on your trades. Stick to your plan and watch your emotions.

Does it have a real-world use case? Some coins seem to keep increasing in value simply due to supply-demand factors. This trend might not be sustainable. For a coin to have long-term supported value, it must have a real-world use case eventually. Look out for coins that look too much like a get-rich-quick scheme.

Short-Term Trading with Margin

Once you get familiarized with crypto, you may want to trade on your ‘stash’ in hopes of increasing it. For the experienced forex traders, this is nothing new. But for the new crypto investor, you may want to brief up on how to make a leveraged trade.

Short-term trading takes advantages of incoming news to make a quick buck. If you foresee good news from an upcoming release of a coin, you may want to open a long and see how it goes. Remember, buy the rumor, sell the news; act fast and be daring if you wish to make a profit with short term trading.


For those who are more comfortable with a predictable form of reward, mining is the way. Mining involves setting up of a rig, consisting of GPUs or CPUs and an investment in the electricity. Mining is only possible on cryptocurrencies that follow the Proof of Work protocol. It takes some effort to set up and gets things running, but it is attractive as a long-term passive income as long as you frontload the work.


Staking is the Proof of Stake version of ‘mining.’ Think of this as making dividends on your stock. The reward rate and staking method differ greatly among Proof of Stake coins, but in general, it takes less effort as compared to mining.


As you get a hand in multiple exchanges, you may wish to buy from one exchange and sell on another to make ‘arbitrage’ gains when you spot an arbitraging opportunity. Take note of two things if you wish to do so: remember to factor in fees, and remember that the price could change when you are transferring your coin between exchanges, especially during volatile times. USD tends to be liquid so this happens less for it, but for other currencies such as CAD (Canadian dollar) and SGD (Singapore dollar), there may exist more arbitraging opportunities to exploit.

Helpful Resources

Check out coinmarketcap for the tabulation of various coins’ market cap and price. Check out cryptowat for the prices of popular coins across different exchanges. Check out the respective coins’ subreddits for available news and market sentiments. Lastly, check out hhypecoaster for how much more crypto you need for a Lamborghini Aventador ? I would also recommend that you check out for the latest laws and regulations governing the cryptocurrency sphere.

That’s about all I have, for now, invest smart and most importantly, don’t forget to have fun!

What Is A Bitcoin Wallet? – The Best Explanation EVER


The transaction does not start irrevocably. Instead, they receive a confirmation score that indicates how difficult it is to turn them around (see table). Each confirmation takes a few seconds to 90 minutes, of which the average is 10 minutes. If the transaction payment fee is too low or typical, it may take longer to get the first confirmation can take much longer.

The purpose of Bitcoin mining is to become more optimized over time by using dedicated hardware with lower energy consumption, and the operating costs of mining should continue to be in proportion to demand. When Bitcoin mining became too competitive and profitable, some miners chose to stop their operations. In addition, all mining for energy development is ultimately converted into heat, and the most profitable miners are those who make good use of this heat. In fact, the most efficient mining network does not consume more energy. Although this is an ideal choice, the mining economy continues to have miners fighting for it.

How does Bitcoin work?

This is a problem that is often surrounded by confusion, so here is a brief explanation! Basic knowledge of new users As a new user, you can start using Bitcoin without knowing the technical details. Once you have installed the Bitcoin wallet on your computer or mobile phone, it generates your first Bitcoin address and you can create more Bitcoin addresses as needed. You can reveal your address to your friends so they can pay you, and vice versa. actually,


bitcoin wallet


this is very similar to how email works, except that the Bitcoin address can only be used once. Balance-Blockchain Blockchain is the shared ledger on which the entire Bitcoin network is based. All confirmed transactions are included in the blockchain. This allows Bitcoin wallets to calculate their balance of payments so that new transactions can be verified, ensuring that they are actually owned by consumers. The integrity and time sequence of blockchain is maintained through cryptography.

Bitcoin wallets hold secret data

The transaction-private key transaction is the transfer of value between Bitcoin wallets that are part of the blockchain. Bitcoin wallets hold secret data called private keys or seeds, which are used to sign transactions and provide mathematical proof that they come from the owner of the wallet. The signature can also prevent the transaction from changing at any time. All transactions are sent to the network, usually within 10-20 minutes through a process called “mining” for confirmation.


Mining is a distributed consensus system used to confirm ongoing transactions by including them in the blockchain. It performs chronological order in the blockchain to protect the neutrality of the network, Reduce your expenses and go along the rabbit hole. This is just a brief summary of Bitcoin. For more information, read the original paper describing its design, developer documentation, or browse the Bitcoin Wiki.

Let different computers agree on the state of the system. To be verified, transactions must be packaged in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being changed as this would invalidate all subsequent blocks. Mining also creates the equivalent of a competitive lottery that prevents everyone from easily adding new blocks in a row to the blockchain. In this way, no group or individuals can control what is included in the blockchain or replace parts