Crypto currency and BitCoin – Everyone wants to buy their first BitCoin! The trade, buying and selling of crypto currency or of its most famous representative, the BitCoin, is still a book with seven seals for many people. Various free apps and platforms enable trading with the “new” digital currency, but the principle and understanding of how it works is still a big mystery to many. As with many, there is extremely much to do in my daily work, so that even on weekends there is hardly any time to deal with new topics and if so, only very selectively. I had already dealt with the topic of crypto currencies and BitCoins four years ago, for my second book ‘Social Media Marketing’. Why didn’t I stick with it and buy coins?
Since I am always a Freuon of spontaneous ideas and projects, I wanted to dedicate myself this time to the topic of cryptocurrency in all its facets. But not in the form of a single article, but in a “long term + live article”. My entry into trading crypto currency, the first experiences, how do I read charts, how do I create analyses, how does psychology work and what the hell is “Block Chain”? In my new free online training you can accompany me, draw your own conclusions and learn from my mistakes.
Current BitCoin course
After the 2017 high of $16,892.34 (17.12.2017), the BitCoin continues to prevail.
If you leaf through the current news, you will see BitCoins in every business section. Some people see the wave of success, others see hype, and still others write about the big crash! But what is crypto currency, soberly considered? Welcome to my new article! Every Sunday there is a new update about BitCoins and other crypto currencies, trends and perspectives for the digital currency. This is my entry into the world of crypto currency. A live experience report, so to speak.
Trading: Stocks, currencies and apps
If you want to read more tips, in the blog you can find many more articles, like:
BitCoin Crash? Never. Digitalisation is and will continue to be on the advance
A quote from the end of the article:
[…] why you shouldn’t expect a crash the BitCoin hype, easy payment is still very difficult nowadays, especially in Germany. While other countries like Sweden already have successful models and you can pay with your card in almost all shops, every cent, Germany loves cash! But how long will it stay like this? Sooner or later, the first banks and large investment funds will step in or maybe even retail chains.
Why did I wait so long to buy BitCoin?
In my agency there is a lot going on every week, on weekends you are happy if you come to do some administrative work, organization or as a manager of course also small things, around bathrooms, printers or even laying or planning cables when new jobs arise. Everything must be planned by someone. To think about new investment possibilities is always possible only within a limited framework. But the topic of crypto currencies and especially BitCoin has fascinated me for quite some time. Especially because I have many friends who are also “nerds”. Only a few, not even a handful, I would say, have dealt with the topic relatively early. Today, however, they profit extremely from what they invested early on in alternative, digital currencies.
It’s not about large investments, but rather about the investment of time or the commitment to a young topic like BitCoins and crypto currency. If you had invested in Apple promotions back then… would you have invested in BitCoins… stop! It’s not too late yet, because currently everyone is talking about it, but very few are acting. Nowadays they don’t like to talk about money, why do you think? BitCoin was worth $5 three years ago.
At the beginning of 2017, the currency was already at $1,000. By the end of the year, in December 2017, it was close to the $20,000 mark ($16,892.3398 [17.12.2017]). An extremely big hype, which attracts more and more users to crypto currency. Although the topic is extremely present in the media, there are only few people who really deal with it and already collect money in their own wallet. Wallet, I wrote about this in the book years ago, back then it was still about digital currencies in relation to e-commerce and online shops. Today, digital currencies have become so established that when I write this article I ask myself, why the hell didn’t I stick with it years ago?
Currently the sales phase after the high in December 2017 is over. A BitCoin is down to a few thousand dollars again. Now the BitCoin will rebuild itself. Let’s go! Let’s start our long-term experiment for our readers: How do you trade BitCoins from A to Z?
You can learn from mistakes! Invest now or forever annoy
Here we are also already at an important topic of crypto currency, you should only invest what you see as play money. Because even though the rates are rising, it’s like any game, money can be lost. Whoever then still sees this purely as “experience in investment” or in the decentralized storage of responsibility, should invest!
What do I expect from crypto currency?
Why do I want to be there?
As I have just described, I am dealing with digital trends too early. As well as digital currencies over four years ago. As a poor child of the working class, I naturally lack the necessary millions to get directly involved on a large scale, but one can also understand the techniques and functions with small means. Just the value to understand the systematics around Blockchain, BitCoin and crypto currencies is worth the investment for me by far.
Crypto currency is not only about making money fast on the Internet. Above all it is about building a long-term investment. Like a handful of friends who started buying BitCoins two or three years ago, it is not a business that creates millionaires overnight. For them, too, it has taken two or three years for the success of BitCoins to really take hold. It really got going in 2016, the price continued to rise until it reached 1,000 US dollars in 2017. In the course of the year it went up to an incredible almost 17,000 $. In January the hype went down a little bit to the $4,150 mark. Currently we are back at $8,000. But stop, what exactly is crypto currency all about?
What is crypto currency? How does the BitCoin and block chain work?
Without going too deeply into the technical details, crypto-currency deals with a decentralized administration or linking of equal data. This circumvents individual institutions which, for example, decide on fixed exchange rates. Cryptocurrency is based on a new technology called Block Chain.
Block Chain Technology in simple: This is how it works
Is it possible to explain such complex systems as Block Chain in a simple way? Yes of course! A block chain is always just a process, which is organized decentrally as described, i.e. not determined by one person and which is based on the results of the others. Chain link by chain link (brick by brick). If you look at it simply, it could be your big tax office, where the various accounts of the individual branches or even sales representatives come together. Even a little more modern, with even fewer individual institutions, is Wikipedia. The system is based on different insights and experiences of people who build on each other – Block Chain. The system itself (theoretically) does not need a person to lead or guide it. Even the review and evaluation of the individual information or pages on Wikipedia are done by volunteers who organize themselves. If you think this process further, you are at Block Chain and the concept of cryptocurrency.
The code of the crypto currency contains different hashs, which in turn are identical to each other. This allows the different packages to work together. The explanation is certainly more complex but shows in its simple form how such a chain of information works. The code, like the example of the accounting, becomes more and more extensive. Because of the decentralized administration and organization of the data, everyone is a part of the currency.
Excursion to the beginning: BitCoin Mining
When BitCoin was still a topic for a few, technically highly skilled people, BitCoins were still mined. In this process, BitCoins are generated by calculating the codes, and the owner receives more and more BitCoins. But the process then stopped when the production costs became too high. The more complex the process (code, block chain), the longer the calculation takes. At some point, the calculation of electricity and investment costs no longer matches the profits from the BitCoin mining process.
But let us no longer deal with the production of crypto currency but with buying and trading!
Are there alternative currencies to BitCoin?
Most people know the BitCoin. This currency is today the best known crypto currency and it is quite comparable with the American US dollar. Many online comparisons for crypto currencies and portals are also based on this currency. It already contains enormous amounts of investment capital from all over the world. Besides BitCoin, which has been on the market for a very long time, there are of course always new currencies. At the moment they are springing up like mushrooms, especially in tax havens. No matter if they are crypto currencies from Dubai, Shanghai or Hong Kong. The trading platforms are also located here in the relevant tax havens.
Anyone who wants to get involved in buying and selling BitCoins themselves will sooner or later have to register on a platform. Most platforms are of course located abroad. With nested systems, registered company address in London, offices on the 38th floor in an anonymous high-rise building in Shanghai and with transfer address to Estonia. As already said at the beginning of the article, crypto currency should be a game for everyone, there is always the danger of a crash. We will come back to this question later, can the BitCoin crash?
It is much more important to answer this question: How do I actually buy BitCoins or crypto currency? As I said, there are various free apps, offers and platforms on the Internet that enable digital trading of crypto currency. Finding the best ones here is of course relatively difficult in the jungle of offers. That’s why I started to write this article at some point, so that one or the other gets an honest experience report, directly from hour zero! Because today I start trading BitCoins in live format, finally everything is registered and verified. Today my first bank transfer went out, I will test it once with 200 €. Why? It should be feasible for everyone! If you do some overtime next month and you have some extra money, why not invest?
Crypto currency as an alternative to expensive stock trading
The trade with crypto currency makes investing as easy as never before, of course there are many other exciting concepts, as well as real estate investment, which is divided among several investors, so that one can also enter the real estate investment with 500 € or 1.000 €.
Account currencies are however interesting because they are so fast and digital that as a young person you have a high market advantage in the analysis. Once you have understood the system and how it works and the psychology behind the crypto currency, you can gain extreme advantages, especially compared to older investors. Likewise, the acquisition and transaction costs are much lower compared to a stock portfolio. Shares are worthwhile for people with a lot of investment capital, to whom transaction costs of a pair of 1,000 € do not harm (large trading). At the same time, millions of profits are made in just a few minutes. Who lacks the capital, he can enter with crypto currency already with one Euro. Is it worth it? Yes!
Just think about it, you would have invested your Euro in a BitCoin years ago and bought it for two cents a piece. Then you would have 50 BitCoins now and could have sold them in December 2017 for $850,000. Now the Euro is already quite interesting, isn’t it? Now let’s take a close look at how I buy and sell crypto currency.
How to buy crypto currency and BitCoins online?
Crypto currency is not available at the supermarket. BitCoins cannot yet be bought at the gas station as a gift certificate and unfortunately there are no street vendors selling BitCoins at a dark bridge. But how do I buy a BitCoin now? The answer, you need a wallet.
What is a wallet?
A wallet is like your wallet, your digital purse. In it you collect your money and can spend it as you wish, exchange or forward it. The Wallet is not only on your notebook but also on your mobile phone. You have to secure your crypto currency, this is very important and we will come to this point later! So first of all you have to log in and register on a platform, no matter if on your notebook or on your mobile phone. For the registration you need different data.
E-Mail address
Afterwards, depending on the platform, you will first receive a verification code via e-mail. You had to enter this code online to confirm your e-mail address first. After confirming your email address, you will be able to proceed one step further.
Verification of the e-mail address
Now you have to enter your mobile phone number to register your mobile phone as well. You will now receive your second verification code via SMS. Enter this code again on the online platform and you will have identified yourself digitally as a person.
Verification of the telephone number
The third step is identification by means of an identity card, passport or driving licence. For this stage of verification, you grab a valid identity document and start the verification online. Most of the time you will get a small popup asking you to start your webcam. In the next step you show your driver’s license, passport or identity card in the camera, clearly legible with front and back. A little tip, you should make sure that you are in a good light, as the ID documents are electronically analyzed. After a few seconds the software will have scanned your ID document and you are verified.
Don’t worry if it doesn’t work out a few times, at my first registration it took me about 7 tries until I finally got my ID document into the camera properly. In the beginning I tried it with the driver’s license, didn’t work out so well, later again with the identity card.
Crypto currency platform and file sharing in comparison, my recommendation ?
After I had a closer look at different platforms for crypto currencies over the last two or three weekends, of course I asked a few girlfriends, and now I had two that I wanted to choose between. What is the big difference? One of them is again one with the classic concept of a tax haven between London and Estonia, the other one is based in Germany. What should you choose now?
Tip: It is not Germany (for alternative currencies):
BitCoin.de, the German trading platform for crypto currency
On bitcoin.de you can trade BitCoins, as the name says. As described, the advantage is that you can trade on or with a company that has its headquarters in Germany. This means that you always have legal security in case of a dispute and can, for example, sue in German courts if there are problems or distortions. Of course, this is not possible (that easy) with a company based in a tax haven and offices in anonymous high-rise buildings. This is first of all an important decision criterion, then once you have invested your money, you will rarely change the platform. This is as easy as with an electricity provider, once you are “satisfied” or have no major complaints, why should you change? I have had my private account with the same bank for over 20 years. I actually have no idea how much I pay each year, but I am there. So before we get involved in anything, we should know what it is all about! With a German trading platform, as I said, we have legal securities that can be played in an emergency. And as we all know, contracts are not made for the good times, but for the situations in which things are not going well. Anyone who loses his crypto currency due to technical problems will find it difficult to sue a company in an offshore paradise. This is the advantage of a German trading platform.
The disadvantage, if you only trade here, you have no access to other currencies outside of the BitCoin. On bitcoin.de you can only trade BitCoins.
Clinbase, international trading of Coins of all kinds
For those who want to trade with different crypto currencies, I have the following recommendations: Coinbase. The platform allows trading with different currencies, is available in several languages, including German, and is very easy to access from a notebook but also from a smartphone (free app). On the platform you can trade with different crypto currencies and exchange them with each other. The disadvantage, as already mentioned, is that the company is not located in Germany and therefore legally difficult to attack in case of dispute.
A possible symbiosis for people who want to play it safe: For speculation, we use Coinbase, and for our secure bank, the storage of BitCoins, the German trading company. So you always have a little capital on the safe edge that you can transfer within seconds, with your wallet to another platform or to friends and business partners. So you have the security of a German platform despite the crypto currency, but can still move in international trade, in seconds.
How do you swap coins with others?
The exchange is very easy and done with extremely few clicks. But you can not only exchange as described on a trading platform, crypto currency can also be used to make transactions between friends or to pay in shops. In Berlin there is a whole street of shops that specialize in paying with BitCoins. Here you can also find some of the veterans of the German BitCoin scene, barely recognizable, with a notebook and Latte Macciato in a Berlin coffee.
The exchange is easily done via your wallet. If you already use Paypal for transactions and money transfers, you will soon realize the simplicity. Instead of entering the transaction data for a foreign bank transfer, as was previously the case with a bank
Name
Street, number
Iban
BIC
…and, of course, another day or two of processing time.
If you carry out transactions with Paypal, they are completed within seconds. No matter from which country to which country, every amount is transferred with a few mouse clicks. You can imagine the BitCoins in a similar way now, if you have a wallet and I have a wallet, we have paid or exchanged in seconds.
Here is another advantage to see why you shouldn’t expect a crash the BitCoin hype, easy payment is still very difficult nowadays, especially in Germany. While other countries like Sweden already have successful models and you can pay by card in almost all shops, every cent amount, Germany loves cash! But how long will it stay like this? Sooner or later, the first banks and large investment funds will step in or maybe even retail chains. Paying is super easy, goes fast and has hardly any delay. All you need is a smartphone, which almost everyone in developed countries has.
How do you keep your BitCoins safe from attack and loss?
I would like to bring this point up briefly after a conversation with a befriended dealer. We’re all going to think, okay, if we have an app on our smartphone, then it should be safe, right? So-so. Anyone who has saved a bit of coins has a high risk that attacks on their own computer or smartphone will empty their wallet. Likewise, the credit is gone if you lose the physical medium as a data carrier through stupid actions and have no back-up of the BitCoins. Above a certain amount, which is measured individually, you should put your money back safely. Since I’m not a professional after a few weeks, I’ll keep my comments a bit more precise, just to give a short insight:, Professionals put their data safely on a storage device that will never (!) come in contact with the Internet. If you have even one interface open, it can happen in seconds that everything is gone. Even the best system has gaps. The safest method is therefore always a storage device that will never have a connection to the Internet. On this data carrier you can store everything safely, like a safe. If you need access to your own capital, you can always do so by transferring data via SD card, USB stick, etc.
For us, as beginners and novices in BitCoin trading, it is absolutely sufficient to trust in the existing techniques. After all, our 200 € are only play money!
BitCoin crash?
The question whether the BitCoin or crypto currency in general can crash is not easy to answer, nobody can look into the future, conclusions are always easier afterwards. But as just mentioned, the object of speculation is not a hundred percent object of speculation, because crypto currency allows easy trading of different amounts, between different people or companies, between different countries and continents. The system has already been predicted in so many writings and treatises of the past decades (even by inexperienced nerds like me) that it is almost unthinkable that digital currency will not prevail.
Digitalization is permeating all industries, including the financial world
So far, all aspects of digitisation have permeated our entire society, they permeate every single area. Its the social networks that have changed our world of information and speed of information transfer, the interpersonal relationships, the digitization in industry. Today more than 350 robots on 10,000 employees work in Germany, which makes us the third largest company in the world after South Korea and Japan. But digitalization is also in every car, in every driver assistance system. Digitalization is also in our purchasing behavior, city centers are dying out and online shops are flourishing. Television advertising consists almost exclusively of Internet sites or portals that offer their services online.
Anyone who believes that digitalization will not prevail in the area of currencies is wrong. Stock exchanges today no longer work in minute cycles, and have long since stopped working in second cycles. Nanoseconds, that is the time factor that is at stake. If we are talking about a crash, then perhaps in 50 years, just as every healthy economic system does now and then. We also had major crises in the twenties, the oil crisis in the seventies or the economic crisis recently. Crises and speculation will always come up, maybe the BitCoin will crash sometime from 100.000 to 50.000 €, who knows. Crypto currency will still prevail and will eventually replace our cumbersome system of cash, coins, notes, credit and debit cards – promised.
Can you pay with the BitCoin?
Back from the great speculation about the future of BitCoin to real life and crypto currency in everyday life.
Pay Local: Payment models in Berlin Mitte
Fries, burgers, new shoes or even the next trip? A lot of things can be paid with BitCoin for years. Even before the big hype, you could easily pay for your burger menu with a BitCoin in Berlin, for example. A latte macchiato in a café or an exclusive cocktail in a trendy bar. BitCoins was a wonderful new marketing tool for trendy districts in Berlin-Mitte, especially for a young, digital target group. That I once developed BitCoin in this way? Who would have thought it? Certainly nobody in Berlin, but they all hoped. And they were right!
Let’s go: We start our BitCoin long-term project live
Today is day one and after two or three weeks I finally decided to start. Although I wanted to take care of the agency today, I was totally focused on the topic, from registration to verification and to the start of my long term article.
The registration took me about 15 minutes, after that I transferred 200 € from my bank account directly to a bank in Estonia, with the purpose of payment. In 1 or 2 days my money should be credited, from then on I can also sit down daily from my mobile phone and watch the latest curves and statistics of the BitCoins. Where is the exchange rate going, which other currency is interesting? Let’s see what our bank account says!
If you want to join BitCoins yourself, or invest a crypto currency, you can now stay with it and get new updates every Sunday! So you can learn from my mistakes and invest your money even more targeted! If you have any questions or suggestions, feel free to write in the comments and I will give you feedback immediately!
Alternative: Real estate as capital investment
The 9 most important key figures – real estate as an investment
Purchase price – The purchase price should always be set in relation to the annual cold rent. Check here whether the ratio is usual for the location. A factor of 20-25 tends to be favourable and is usual in most locations, but from a factor of 30 it becomes expensive.
Useful life – A property is a long-term capital investment. The intended useful life should always be known in advance, also in order to assess the lucrativeness of the property.
Income – In which range are the square metre costs in your region? And what rental income can be expected? Also consider the case if the property is vacant and a new tenant has to be found and the associated loss of rental income.
Administration costs – How much are the administration costs that the property takes up?
Taxes – How high is the depreciation and the marginal tax rate and what effects can this have on the property as an investment?
Financing – Do you need financing to purchase the property as a capital investment? Pay attention absolutely to the monthly repayment rates and whether a property as a capital investment is still worthwhile for you then.
Resale – What influences the performance of your property and how can you profitably resell it in the future?
Feb, 12, 2018: Thailand is the first country to prohibit banks from trading crypto currency such as BitCoins. Likewise, there must be no consulting for customers. Why? It is about possible fraud with digital currency, for example to finance terrorism.
Update: Secret tip? BT / Ethereum Echo at high price jump
During my research I came up with an interesting idea by superimposing layers in Photoshop. By superimposing layers, courses can be easily stacked on top of each other and compared. At the turn of the year, rise and fall of Bitcoin, I noticed one thing, the Ethereum Echo. With a slight delay the courses of the Bitcoin are reflected in the Eutherum. Could this delay trigger the same effect at the next big Bitcoin price jump in 2018 / 2019? If so, I would invest.
/wp-content/uploads/2024/04/lukinski-logo-real-estate-investment-germany-house-villa-off-market-clean.svg00Stephan/wp-content/uploads/2024/04/lukinski-logo-real-estate-investment-germany-house-villa-off-market-clean.svgStephan2020-02-03 23:03:132022-04-03 08:04:20BitCoin, Crypto Currency & Block Chain: How to and tips for buying and selling
