With a peak of more than $ 4,000 reached this summer, bitcoin has once again been talked about and attracted investors neophytes. Here’s what you need to know before you start.
The term bitcoin refers to a crypto currency created in 2009 by one or more computer programmers using the pseudonym “Satoshi Nakamoto”. It does not depend on any central bank and its price is only fixed by supply and demand. Its users can conduct transactions against goods or services. They can also trade against traditional currencies such as the euro or the dollar. Each transaction is encrypted in the Bitcoinblockchain, a sort of universal and decentralized database. It is open and searchable by everyone.
- Choose your platform in a hurry
You can buy bitcoins through specialized platforms. To choose which one, it’s all about knowing what you want to do. Some only manage bitcoins, while others offer to buy and sell other crypto-currencies. They levy more or less important commissions and demand identity verification. It is advised to you Coin base, Kraken, or The House of Bitcoin who are known for their seriousness. Choosing the right platform is important: Tog, once the first platform in volume, crashed sharply in 2014 after hacking. Nearly 750,000 bitcoins were stolen. At the current price, it represents 33, 11,947.90dollars. Visit https://www.amarkets.com/promo/ for more on this.
- Believe it’s tax-free
Do not believe that the transactions are anonymous and that no one will know if you have made a great gain. The French tax authority asks to enter the amount of the latter in the non-commercial profit box (BNC) at the time of completing the tax return.
- See only the interest of speculation
Bitcoin has been conceived as an alternative way of doing business. The actors do not undergo the arbitrary decisions of the central banks and pass traditional intermediaries (banks, PayPal, Visa, MasterCard, etc.). Thus, an exchange does not involve commissions and is much faster: when an international transfer takes several hours or even days, a transaction in bitcoins only takes a handful of seconds. Like an e-mail.
- Do not secure your deposits
As we have seen, the crash in 2014 shows that your bitcoins can disappear. You have to be aware that hackers can steal you as if stealing your gold bars from a bank. No platform provides deposit insurance. However, there is a secure solution: you can transfer your bitcoins to a hard drive that is not connected to the Internet. Be careful, however, not to erase your hard drive! You can also buy a physical electronic wallet. Thanks to this tool that looks like a USB key, it is impossible to perform a transaction without entering a PIN and you can recover the bitcoins in case of loss.