Sunday, June 15, 2014

3 Common Ways to Get Bitcoins

Bitcoin as Future

Most likely you have heard about Bitcoin and cryptocurrencies in the news, but you are not sure what all is about. Most likely you do not want to know more because you think it is risky games, where mostly teens are involved. What you heard is partially true. Most people are not in the business, and the cryptocurrencies market is extremely volatile. Think about penny stocks.

But, if you want to feel young again, and get a glimpse of what these teenagers are crazy about, get more information and create your personal opinion. Furthermore, you may invest in cryptocurrencies your funds, time, and efforts, or just time and efforts if you do not like to fund risky enterprises.

If you want to know my opinion, cryptocurrency is the future if the financial system, no matter how hard the banking system will try to suppress it through legal, financial, or economic channels. However, the coins you will get now, may bring you outstanding returns in the future. Or, may not… As usual, it is recommended to invest only the funds you can afford to lose in the worst case.

One of the indicators that bitcoin future is bright is the fact that the “smart” investors put more and more money on the table. The amount of venture capital raised by bitcoin startups for less than 6 months in 2014 has already surpassed the total amount raised in 2013 by more than $27m.

“It is pretty much the highest-risk, highest-return investment that you can possibly make,” said Barry Silbert, founder and CEO of SecondMarket and founder of Bitcoin Investment Trust, during a MarketWatch Investing Insights event titled “Bitcoin: boom and bust,” held recently in New York.

What is Bitcoin?

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures.

Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.

1. Mine Bitcoins

People compete to “mine” bitcoins using computers to solve complex math puzzles. This is how bitcoins are created. However, the complexity of the puzzles grew up significantly from the early stages, therefore, you may not rely on your standard computer performing the profitable operations. There are special hardware modifications, performed to increase the efficiency of mining, however, the hardware upgrade is pretty expensive. So, taking in account higher electricity bills, and relative complexity of the settings for people, who was born before the digital age, that may not be the way you will acquire your first coins.

Bitcoin mining is the process by which new Bitcoins are originated. When you perform mining, your computer adds new Bitcoin transactions to the block chain (a public ledger where all Bitcoin transactions are saved) and searches for new blocks. A block is a file that has the most recent Bitcoin transactions recorded. When your computer discovers a new block you receive a certain number of Bitcoins.

If you want to earn Bitcoins through mining be aware that it is a costly and time consuming process. Read the respective introductions and manuals to learn more about it. Unless you are mining just out of curiosity and want to get to know the technology it is important to make a cost benefit analysis. As said, hardware prices, electricity costs and the Bitcoin value influence the profitability of Bitcoin mining.

2. Buy/Trade Bitcoins

If you plan to invest in bitcoins, find one of the special marketplaces called “bitcoin exchanges” which will allow you to buy or sell bitcoins using different currencies. If you believe, at some point in the future, the price will significantly rise, you make buy and keep your coins as long-term investment.

Similar to stocks day-trading, you may consider the same approach in relation to Bitcoins. Due to the high volatility and not always immediately consolidated pricing, which may be different at various exchanges, you may have an excellent opportunity for short-term trading.

Some people would say that trading is a form of gambling. While there these two things have something in common, there are also fundamental differences. When you gamble (and assuming that it's a fair game) you have a certain probability of winning and losing. When you trade assets, this gets much more complex.

The safest way to make money with trading is through arbitrage. In short, this means that you see an opportunity to buy an asset in one place for a certain price and sell it immediately at another place for a higher price. It is important that you know you can sell the asset immediately at a certain price. Id this does not hold, then we are talking of speculation - or gambling as you like. The Bitcoin world, in my opinion offers such arbitrage opportunities. But they are not as simple to execute as it might seem at first sight. Price differences between exchanges often come for certain reasons. That would be speed of fiat money transfers and access restrictions. You have to find out the concrete opportunities yourself. Also, not every opportunity is available to everyone. Go and have a look at the price differences between exchanges and find out if you also see opportunities or not.

The other way to earn Bitcoins from trading is simple speculation. In this case you would buy Bitcoins, wait until the price increases, then sell for a fiat currency and buy more Bitcoins once the price drops again. For this to work out you either need to be very lucky or capable of predicting the future. There are people who are good traders and who can recognize patterns from price charts. But that's something very specialized and I'm not sure if I believe in this. So for me, if you want to earn Bitcoins from this form of trading it could also be categorized as gambling. And actually it's even more risky if you compare it to a fair game where you know your odds. When you speculate with assets, you can extract your odds from historical prices, but never start believing this would tell you something about the future.

There are recently installed the cash machines where you can buy bitcoins directly using cash or credit card. The pictures ago show one of such machines installed a months ago in Silicon Valley, California.

3. Earn free Bitcoins

There are many websites which offer you to earn free Bitcoins. With most of these sites, the concept is that you visit the site and just for looking at it you get a small amount of Bitcoins. The concept has something in common with watching good old free TV. You watch a lot of ads and in between you get something you actually want to see, like a film or music clips. Usually, you have to prove you actually visited the site by filling the so-called captcha – code to prove you are human, and not computer program, trained to visit websites and collect rewards. The sites are frequently called as “faucets”.

I have prepared a list of the best sites, where you can actually earn Bitcoins with no monetary spending. Note that the base unit of Bitcoin (0.00000001 BTC) is sometimes called satoshi, after legendary Bitcoin's creator Satoshi Nakamoto.

Best Multi-Faucets Aggregators

One of the most useful Bitcoin faucets, representing faucet itself, faucet aggregator, and more features.

Some of the current features include:
- Once you opened the faucet you will get small amount of free Bitcoin every minute from built-in faucet. If faucet is not opened automatically, you may open it manually clicking on blue button.
- Easy way to collect free Bitcoins from multiple working faucets. No need to remember the allowed visit frequency, the site will show only the services, which you can collect money from. Usually, the better paying services are listed first for your convenience.
- The total earning range is 1 to 1,000 satoshis, depending on particular faucet. 
- Works fine on mobile devices.
- Aggregator also filters the faucets with nasty pop-ups and chronically not paying faucets.

Some of the faucets in the system have the minimal amount to be accumulated before it can be paid, for other, the compensation goes instantly to the micro-transaction sites, like Microwallet (payment threshold 5,800 satoshi) or CoinBox (payment threshold 5,500 satoshi). You do not need to open new accounts there, and your payment will be sent to your regular BTC wallet as soon as the threshold is reached.

VisitBit is a multi-faucet, where you need to spend some time on the displayed page. It might be from 10 seconds to 1 minute. The amount of compensation depends on the length of time, site is displayed. After you visit all available sites for the day, you may be asked to come back later, since no more unwatched ads remain. Earning automatically and instantly adds up to Microwallet account after each visit.

BitVisitor gives you free bitcoins after you input your Bitcoin address, solve a verbal captcha, keep a website open during 5 minutes and click a green "Next" button.

The incentives are from 100 satoshi to up to 12,000 satoshi.

Payments are generated and sent automatically as soon as the accumulated amount is higher than 60,000 satoshi.

Best Single Bitcoin Faucets

I am also posting several single faucets, offering descent compensation, but not captured by the multi-faucets at time of writing.

Feed the zebra and win up to 1000 satoshi every hour. You got an equal chance to get 100, 200, 300, 400, or 1000 satoshi. In addition, you get a chance to multiply your winnings through Zebra Multiplier.

Referral program is available (about 50% rate depending on number of referrals). Direct payments once a week - every Sunday, as soon as amount exceeds 5,500 satoshi.

A new Bitcoin Faucet is worth to play with as it offers an average payout of 200 satoshi with submission frequency once an hour. You will get paid instantly to your account.

Available prizes are 100, 200, and 300 satoshi, with an equal chance of each! You may earn 25% lifetime commission for referring your friends and colleagues to Bitcoinker, using your referral URL.

Earn 2,000 BTC a day through simple to use straightforward faucet. As soon you enter, post the Wallet ID and solve the captcha below the Congratulations! Balance will show up in the pop-up window in the right bottom corner of the screen. Then, scroll down the page slightly and locate CLICK HERE immediately after the following text:
“Want more Free Bitcoins?
Earn an additional 1000 Satoshi simply for clicking the link below!”
Solve the captcha and earn 1000 more satoshi.

Earnings will be sent to you on Saturday as soon as you reach 0.001 BTC

Referral program is available. You will automatically earn 50% of the income from every person who joins through your referral link, and that includes all their earnings on this site.

Earn free bitcoins by scratching on the four bitcoin images on the ticket. If you match both numbers, you win! Play hourly, compensation up to 1,000, instant payment. In any case, if you don’t win, you get 100.

5. BTCRock

BTC faucet with unique mining interface where your minimum winning is 265 satoshis and up to 5,000 satoshi.  Play once every 50 minutes.

You also can multiply your BTC with included game, however, the gambling is never secury, so be careful with such approach. 50% referral system.

Payments are sent once a week - on Mondays – as soon as your accumulated amount exceeds 0.0001 BTC (10,000 satoshi).

Sources and Additional Information:


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