How to buy bitcoin?

China is the second largest economy in the world and has become one of the most important cryptocurrency countries in many aspects. Despite a large number of activities, the Chinese government has been very strict in regulating bitcoin and other digital currencies. However, in 2017, China required all bitcoin exchanges to be delisted, banned initial coin products and restricted the mining industry. Many investors still want to buy bitcoin. If the correct steps are taken, they can still buy bitcoin, but they need to understand the market of bitcoin before they can make a better decision. As of the release of this article, 1 bitcoin = 72717.87 yuan. Before the ban, China had a lot of exchanges. These include okcoin, Huobi and BTC China, which are all closed now. However, there is still a large cryptocurrency community, and many international exchanges still operate in China. For those who want to participate in bitcoin, China still has infrastructure. So, how to buy bitcoin in China now? There are two ways to buy bitcoin in China. The first is to trade as a contract for difference, and the second is to conduct P2P transactions with others.

Price difference contract, that is, investors and price difference contract suppliers can sign a contract on the price difference between the value of an underlying asset on a specific date in the future and the current value. At the time of due settlement, only cash settlement of the price difference is carried out without physical delivery. This means that investors and suppliers do not actually hold the underlying assets. Therefore, CFD is a financial derivative. If the price difference contract is applied to shorting bitcoin, it is assumed that the investor has signed a one month short contract with the supplier. At the expiration date of the contract, if the price of bitcoin is lower than that on the signing date, the supplier needs to pay the price difference to the investor; On the contrary, the investor needs to pay the price difference to the supplier. At present, many brokers have withdrawn from virtual currency CFD products. It should be noted that the CFD adopts the margin system, and the leverage ranges from 5 times to 100 times, so it is a high-risk product.

When you call a bitcoin to others, such a behavior will notify every miner, which is even recognized by the blockchain network. Every action you take to obtain or use bitcoin will be confirmed by the blockchain network. Then you will know how many bitcoins you still have. So how did this notification process happen? This process is called broadcasting and is implemented in the form of peer-to-peer (P2P). In short, when a payment occurs, the miners who are “close” to you will be notified first. After receiving the information, every miner will spread the information to those who are “close” to him. This continues in circles until everyone receives it, even if it is recognized by the blockchain network.

How to save bitcoin?

Bitcoin can be stored in any data storage medium, including mobile phone, USB flash disk, mobile hard disk, computer, etc. When bitcoin is trading, you only need to use bitcoin trading software to send bitcoin address. Bitcoin software can automatically generate addresses, and there is no need for networking when generating addresses. Bitcoin address and private key appear in pairs, and their relationship is like bank card number and password. Bitcoin address is used to record how many bitcoins you have on this address. You can generate bitcoin addresses to store bitcoins at will. When each bitcoin address is generated, a corresponding private key will be generated. This private key can prove that you have ownership of bitcoin on this address. After bitcoin is traded, the transaction data will be packaged into a “block”. At this point, the transaction is preliminarily confirmed. This block will link to other blocks. After linking to the previous block, the transaction will be further confirmed; After six blocks have been confirmed in a row, the transaction has to be confirmed irreversibly. After bitcoin is traded, the transaction data will be packaged into a “block”. At this point, the transaction is preliminarily confirmed. This block will link to other blocks. After linking to the previous block, the transaction will be further confirmed; After six blocks have been confirmed in a row, the transaction has to be confirmed irreversibly.

What's the problem with bitcoin

The relationship between bitcoin and blockchain?

In order to realize a decentralized currency, bitcoin adopts blockchain as the underlying technology. Decentralization is the key, because the higher the degree of decentralization, the less the agreement can be controlled and modified by a few people. The most basic agreement of bitcoin includes a total of 21 million, 50 bitcoins are awarded to miners in each block, halved every four years, etc. These are the most basic settings of bitcoin. Over the past decade, many individuals and groups have tried to modify it, but they all ended in failure. Because the decentralized mode ensures that its protocol will not be controlled by a few people. The core of blockchain technology is multi-party competitive bookkeeping. In order to obtain the bookkeeping right of the next block, miners will consume a lot of resources to compete. These consumed resources are also endorsements of the authenticity of miners’ bookkeeping. Any record with errors cannot be recognized by other units. Due to the high cost of resources consumed in bookkeeping, it is basically prohibited that miners will take the initiative to cheat and give up the benefits brought by honesty and trustworthiness (the reward of 50 BTCs is now 12.5). Bitcoin chooses high energy consumption and low efficiency blockchain as the underlying technology because blockchain is the “only” technical means to realize decentralization. Decentralization can ensure that bitcoin is not over issued and controlled by a few people. Blockchain is to bitcoin what TCP / IP is to the Internet. The value of the Internet lies in its openness and the rapid flow of information. TCP / IP technology is only a means to achieve this goal. In the early days, the media advocated that “the Internet is doomed to failure, but its underlying technology can be controlled by the company and used as a local area network to improve the efficiency of the company.” the benefits brought by the free and rapid flow of information were unforeseen by most people at that time. If you can’t go to the center and don’t need to ensure that its protocol can’t be modified by a few people, it’s completely unnecessary to adopt blockchain technology, which is high consumption, low efficiency and waste of resources. At this stage, all blockchain projects proposed by neutral groups, companies and individuals give up the most fundamental advantage of blockchain, “decentralization” and will inevitably fail.

How many ways to generate bitcoin?

Accept bitcoin as payment method

One of the safest and simplest ways to get bitcoin is to accept bitcoin as a payment method for your products or services. If you are a small business owner, this payment function is simple and fast integration. Whether you are a physical store or online business, or you sell goods or services, you can still accept BTC as your business payment method. You only need to go through these simple steps:

First, get a secure online bitcoin wallet. There are many suppliers in the market, so it is best to have a thorough understanding before determining a supplier. Remember, no wallet is really safe, so be careful. I hope you store bitcoin in multiple different wallets.

Secondly, set a QR code containing bitcoin address next to the cash register. There are several ways to do this:

Once you have your wallet, go to places like “collect” or “add money”. There is usually a QR code that has encoded your bitcoin address. Print out an image with a QR code and put it next to your cash register.

Some wallets have a “collection” function. When you accept bitcoin as a payment method, you can use a button called “create payment request”. Enter the bitcoin amount here for payment, and it will automatically display the corresponding QR code. Add the “accept bitcoin” sign on your enterprise website page to let everyone know that your products accept bitcoin payment. In addition, by adding stores that accept bitcoin payment on the map, you can get more exposure.

Get bitcoin by borrowing

If you already own bitcoin, you can earn more bitcoin by lending it and charging interest.

Lend it directly to someone you already know. Then you two must agree on terms such as term and interest rate without a mediator. There are many websites offering peer-to-peer bitcoin loans, which list a variety of borrowers. When borrowers ask for financing, you can subsidize their loans. You can spread the risk of default by investing part of your money in each loan. Bitcoin loans are similar to fiat money loans. They can bring a return of 12% – 18% on your investment in the form of bitcoin. The borrower receives a certain amount of money and pays interest.

You should be vigilant. The lending market is unregulated, so you need to carefully choose to lend your bitcoin and strictly abide by the platform policy to ensure that you will not lose your bitcoin.

Bitcoin work

Whether you are a programmer, developer, writer or freelancer, you can work for bitcoin and get paid. Working for bitcoin is not only the simplest way to earn bitcoin, but also the most legal way.

A large number of platforms and websites connect employers who are willing to let employees work in cryptocurrency. Avoid coin multiplier and hyip. Since the popularity of bitcoin soared, many people have tried to make fast money from it, mostly in illegal ways. Nowadays, the Internet is full of “coin multiplier” and high-yield investment projects (also known as hyip). These sites promise users to double their tokens or return unrealistic interest rates every few days.

These websites just cheat money from naive users and use the money to pay old users. This makes the site look legitimate and generates some profits.

In addition, almost all of these programs have a recommendation program, in which users are encouraged and “rewarded” for introducing new members. This is the basis of the Ponzi scheme. In the next few months, everything will go smoothly until one day, the website suddenly closes. Any website that claims to increase your investment at an impossible speed is likely to be a scam trying to steal your tokens.

Which country recognizes bitcoin?

On December 5, 2013, the Central Bank of China and other five ministries and commissions issued the notice on preventing bitcoin risks, which defined the nature of bitcoin and believed that bitcoin was not issued by the monetary authority and did not have monetary attributes such as legal compensation and compulsion, so it was not a real currency. Meanwhile, financial institutions are prohibited from providing bitcoin trading services.

Since last year’s sharp rise, bitcoin has attracted the attention of all countries. Although some countries hold a wait-and-see attitude, some countries have begun to supervise and control bitcoin. At present, in which countries are bitcoin transactions legal all over the world?

North America and Western Europe are the regions with the highest recognition of the bitcoin. Interpretation of foreign exchange terms The Middle East seems to disagree most on the issue of. Interestingly, Iran, Iraq and Turkey all recognize the legitimacy of bitcoin, while Afghanistan, Pakistan, Saudi Arabia and Egypt impose varying degrees of restrictions on this cryptocurrency. Among the 246 countries in the world, 99 countries (40%) have laws that do not restrict bitcoin. Nearly 17 countries (7%) either restrict bitcoin transactions or consider bitcoin illegal. 53% of the countries have not commented on the bitcoin and the legitimacy of its use in their respective countries. Coin bag is not only the safest transaction wallet, with simple and convenient use, clear interface, low handling fee and many transfers. It supports offline transactions. You deserve it. For bitcoin, this is a risk factor because some inconclusive countries may impose restrictions on cryptocurrency. In general, most countries in the world have not yet expressed their position on the legitimacy of bitcoin. Global regulators have yet to fully understand the emerging industry of cryptocurrency. This is also the main reason why many countries have not commented on the legitimacy of bitcoin. Over time, some countries that still wait and see may eventually determine their position and set regulatory rules that either recognize the use of bitcoin or declare the transaction of bitcoin illegal. The rise of bitcoin popularity index continues to exceed expectations. However, not all countries take a positive view of this cryptocurrency.

Germany: the first country in the world to recognize the legal status of bitcoin

In August 2013, Germany announced that it recognized the legal status of bitcoin and has been incorporated into the national regulatory system. Germany is the first country in the world to recognize the legal status of bitcoin.

Japan: define bitcoin as an asset

In June 2014, Japan’s ruling Liberal Democratic Party said it decided not to regulate bitcoin for the time being. In August 2015, the CEO of Mt. GOx was arrested and the Japanese government considered bitcoin regulation. In May 2016, Japan approved the digital currency Supervision Act for the first time and defined it as property.

Canada: recognize bitcoin’s “currency status”

In December 2013, the world’s first bitcoin ATM was put into use in Vancouver. Many bitcoin entrepreneurs in the United States choose to move to Canada for entrepreneurship due to the legal and regulatory problems in different states in the United States.

Thailand: the first country to ban bitcoin

In the view of Thailand’s foreign exchange management and policy department, the following activities are considered illegal: buying and selling bitcoin, buying and selling any goods or services with bitcoin, and having dealings with anyone outside Thailand.

Responsible editor: CT

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