Litecoin is one of the byproducts of the Bitcoin phenomenon. There are many similarities between the two, although that are also general differences.
Litecoin is a cryptocurrency, just like Bitcoin and it follows many of the same principles and rules. The litecoins are generated by miners who solve blocks and thus keep the system running while making a profit at the same time.
Again, there is a general difficulty that increases with 2016 blocks in order to maintain the overall pace. The blocks are also solved with hashes, and the system works on a peer to peer basis. Even the wallet function is almost the same.
It’s almost identical to Bitcoin, but there are several important differences. The maximum number of coins, for example, is significantly increased – 84 million coins, whereas the limit is 21 million in the Bitcoin network.
This is in correlation to the fact that the Bitcoin network solves a block roughly every 10 minutes, whereas the Litecoin network solves 4 blocks in the same amount of time (or one block every 2.5 minutes).
Also, the hashing algorithms are different (after all, it’s not entirely the same system).
Finally, the GUI is different, but that is to be expected since the network was created 2 years after Bitcoin. All in all, though, they’re pretty similar. If you have a basic understanding of Bitcoin, then you have a grip on Litecoin.
Just like Bitcoin, Litecoin is not that easy to acquire via the standard methods. Buying litecoin with credit card directly is next to impossible. You can‘t use PayPal and many other online money transfer services since it’s against their terms and conditions to purchase digital currency.
So, if you can’t buy litecoin with credit card Visa and Mastercard, and you can’t use PayPal, how do you buy the coins? There are 2 ways you can do this.
The first one is a bit complicated and involves multiple operations.
You can use VirWoX in order to buy Linden Dollars with your credit card. After you’ve acquired the Linden Dollars (also known as Second Life Lindens or SLL), you can convert them to bitcoins.
The process is simple from there – you just have to find an exchange and trade your bitcoins for litecoins.
The alternative method is to charge your Crypto-Trade account from your Visa or Mastercard via Payeer and trade from there.
These methods are not super intuitive, but will do the trick.
Dogecoin is a product of the cryptocurrency fever started by Bitcoin, but it’s also based on the popular Internet meme Doge. Dogecoin is a bit different from the other types of digital cryptocurrency you might have already read about but it’s based on the same principles.
The currency features a digital wallet (called Dogewallet) in which users hold their funds, a concept you might be familiar from Bitcoin and Litecoin.
Once again we have a peer to peer basis on the network, and a public principle with a big (and further growing) community. The process of mining is involved in here, as well, and is one of the ways to acquire dogecoins and to keep the system safe and secure.
The basic principles of Dogecoin are the same as other cryptocurrencies but there are also some vital differences. The volume of Dogecoin is much more immense and has no end limit in the production.
As you may know, Bitcoin is set to produce a maximum of 21 million bitcoins, after which the production will stop and the rewards for the miners will be based entirely on the transaction fees.
Since Litecoin produces four times more coins per 10 minutes than Bitcoin, the limit is 84 million. Dogecoin, on the other had a set limit of 100 billion, but that limit was removed and now no one knows how many dogecoins will be produced.
To give you an idea of the sheer score of Dogecoin’s volume, about a month after its release, it had more trading volume than all other cryptocurrencies combined. The first 100,000 blocks gave out a random reward of 0 to 1,000,000 for solving them. As you can see, there are significant differences in the policies but ultimately the main principle stays the same.
Since the principles behind Dogecoin are the same, this also implies that the difficulties of purchasing the currency are the same.
You cannot simply buy Dogecoin with credit card Visa or Mastercard, or even using PayPal since it’s against their terms and conditions to use their services to purchase cryptocurrency.
The process of buying dogecoins with credit card is made even more difficult by the fact that the cryptocurrency is relatively new, hence very few exchanges work with it. You don’t want to risk giving your credit card to uncertified websites, so the best way to proceed is to acquire some bitcoins and then exchange them for dogecoins.
You can first buy Second Life Lindens at VirWoX using your credit card and exchange them for bitcoins (and the bitcoins for dogecoins after that), or you can add funds to a Crypto-Trade account from your Mastercard or Visa via Payee.
Then you can again obtain some bitcoins and exchange them for dogecoins. Do your research before you start trading.
There can be a wide variation in price between different exchanges so read before you buy.
The Bitcoin network is gaining more and more popularity as time passes and people see the merits of the existence of such a system.
Bitcoin solves the problems and headaches that are usually the hallmark of other types of monetary transactions.
The Bitcoin network is quick, secure and doesn’t require most of the additional fees you’re stuck with when you use normal banking.
Also, since Bitcoin is not centralized and works on the basis of a public “ledger” all members of the network have access, there can be no artificial inflation.
New bitcoins are created in a process called “bitcoin mining” (also referred to as mining) – solving a complicated series of math problems in order to confirm transactions on the network.
The people who keep track of the ledger and transactions are called miners. But how do you mine bitcoins? Find out with the help of your bitcoin mining guide.
What is Bitcoin Mining?
Mining is the process of solving complex mathematical problems on the Bitcoin network – we’ve already established that much.
The result of these complex problems is unique for every block on the network, and is referenced in the next block, thus creating the so-called block chain.
This is how we know that all transactions are legitimate and since they are public record, should you choose to (and know how to) you can check them up to the beginning of the system.
How to Mine Bitcoins
When new blocks are introduced into the network, miners compete to be the first to solve the block in order to get the reward from it. The reward started at 50 bitcoins for block with the plan to be halved every 210,000 blocks (or approximately four years). The current bounty for solving a block is 25 bitcoins and is expected to become 12.5 in 2017.
In order to start mining, a miner needs three things – a bitcoin wallet where he will store his winnings, mining hardware and mining software. In the beginning, people were using normal CPUs (central processing unit) to mine, but then they figured how to bitcoin mine with GPU (graphics processing unit)that turned out to be way more effective in this sort of computations than CPUs.
Today, however, even GPUs are not really all that competitive. Instead, most miners use ASIC (application-specific integrated circuit) bitcoin miners that process hashes faster than standard GPUs.
The speed is measured in gigahashes per second (GH/s). If you really want to be competitive, you will need to invest in good hardware – browse around and look at the offers. There are plenty of comparisons, as well.
You will be able to generate bitcoins at a much faster pace with a faster hardware.
While you’re looking up the hardware, it would be a good idea to have a look at a mining calculator, as well, so you can estimate what potential profit you will be making with your investment.
Remember though, that those estimates almost always differ from the real numbers. The best course of action is to do as much research as possible before you begin. Otherwise, you might be in for a surprise.
However, hardware alone is not enough for mining bitcoins. You will also need a bitcoin wallet so you can collect your profits, as well as bitcoin mining software. This is the easy part, though. Creating the wallet is fast and easy.
The software download will take a while since it will have to sync every transaction that’s ever been made on the network. However, once that’s done, you’re basically good to go.
The software works on most popular platforms (Windows, Mac, Linux). Bear your hardware in mind when you choose your software. Some tools work better with GPUs than ASIC and vice versa. You can also find tools that are really easy to use and offer you full GUI control. Browse around to find the right fit for you.
A general consensus is that the best way to mine bitcoins is by joining a mining pool.
This way you’re a part of a group of miners and you will be getting your profits depending on how much you have contributed.
This means that you will get paid less (because the reward is split once the block is solved) but you will also be paid more frequently (since more miners will be joining you, thus speeding up the process).
Once again, do your research in order to find something that fits your preferences and style.
Of course, you’re still free to mine alone and collect the entire bounty for a block you solve, but that will take longer and chances of you getting it first are smaller.
If you think you’re up to the task, you’re welcome to try, but most miners prefer being a part of a pool. Note that this is a beginner’s guide to bitcoin mining.
If you know anything about day trading, then Bitcoin holds a great potential for you to make some profits.
Of course, there is no trading that is without a risk so we want to make it very clear – you are responsible for your own actions.
If you decide to trade or invest your hard mined, earned or bought bitcoins and for some reason you lose them, then you can’t blame us for your misfortune.
We simply provide the information – what you decide to do with it is entirely up to you. Also, always be extra careful when you trade because sometimes mistakes do happen and that may cost you.
Now that the warning is out of the way, let’s move.
Since bitcoin price can exhibit high fluctuations, someone who understands these movements and the market overall may try to make some predictions and profit. Sometimes profits can reach quite delicious values if you know what you’re doing.
There are times when the price simply goes up and if you have enough bitcoins at that time and you sell them, you will be making a very nice return on your investments. You can have a look at some of the price movement charts for the past few days in order to see what we’re talking about.
Buying at a low point and selling at a high point can be quite profitable indeed, but the risk is still there because no one is to guarantee that there won’t be a significant drop in price. After all, even though the Bitcoin price has somewhat stabilized, fluctuations still exist.
You have been warned (again)!
If you want to trade, then you have to find a good bitcoin trading platform. BTC-E is a very popular platform for bitcoin day trading.
There are many options there, as well as very good candlestick charts you can use in your technical analysis in order to make an informed decision.
If you don’t know the terms of technical analysis, candlestick charts and day trading, then you need to learn them first, otherwise the only way you will make any money is if you get very (very, very) lucky.
There is also a trade bot (the BTC-E Trade Bot) offered for the platform. You can program your strategy into it and let it buy/sell and preset the values.
It comes pretty handy when you don’t have the time to follow everything but you have the feeling that there will be a high or a low you wish to utilize.
Bitcoin is a digital cryptocurrency based on the peer to peer model where all transactions are noted in a public ledger available to the entire network.
The currency is not centralized which means that no one person or entity controls it – it’s the entire community.
Thus it cannot be artificially inflated and an individual can’t simply add funds to their wallet without this being authorized by the entire network and reflected in the public ledger, which means that it can’t be falsified.
This is what makes the system essentially foolproof and secure.
Is Bitcoin a scam? Many people have the Bitcoin scam idea formed, that the currency is somehow an elaborate plot or a convoluted plan to steal their money. This is simply not true.
Not only that, but since the process is controlled by the entire network, a bitcoin scam would be next to impossible. Everything that happens on the network is referenced and compared to previous transactions. Thus no one person can manipulate it in any way, shape or form.
Bitcoin is also completely legal in most of the world. There are some political debates about it but as of now the cryptocurrency is considered legal. Where does the value of the currency come from?
Why would someone who accepts bitcoins as a trading method sell you a laptop for, say 3 bitcoins (note that this price is completely arbitrary and for the sake of argument)? Well, because money are given power by the people.
If that person decides that they will accept bitcoins, whatever their motive, then you can simply use your mined or purchased bitcoins to shop with them. It’s the same deal with trading with dollars.
Just because dollars are an acceptable currency in the US doesn’t mean that a newly-found tribe on a tropical island that has had no contact with the outside world (again, talking for the sake of argument here) will accept dollars as a valid payment method for goods and services rendered.
At the end of the day, Bitcoin is not a scam. In addition, the idea of using Bitcoin in a scamming
scheme is simply ridiculous. Bitcoin is a very secure alternative to your normal and even digital banking.
As long as people you want to trade with accept Bitcoin, you can trade whatever you want with them. And if they don’t, you can always exchange your bitcoins for another accepted currency.
Bitcoin simply gives you an option. Whether you want to use it or not – that choice remains with you.
Once you decide to throw yourself into the whole Bitcoin concept, you realize that you’re undertaking a very long journey without knowing where to begin.
You know your destination but you have no idea where you are right now and moreover – how to get to where you want to be. It’s a very frustrating experience but it has to be tackled one problem at a time.
The bitcoin mining software can be one of the most intimidating factors of the bitcoin mining process. Some tools offer you a full GUI experience, while others are mostly text-based which can be scary for most people who don’t deal with programing on a daily basis.
The good news is that all of this is not as complicated as it once was.
There is a lot of information all around the Internet on how you need to setup your system so every tool you decide to research will probably come with a detailed installation tutorial.
If you have a bitcoin mining computer, the software will not be a problem for you. Keep in mind that you have to match your software and hardware.
Some applications work with ASIC hardware while others only support GPU-based systems. Make sure that you’re familiar with these terms before you even think about venturing forward.
But first things first. Let’s say you have decided to start mining and you are familiar with the basic concepts.
You have even bought an expensive ASIC miner. Now what? Now you set up your bitcoin wallet. After all, you will need a place to store your profits, and sadly hiding them under the old mattress won’t do the trick.
Your bitcoin wallet is a piece of software that works as a regular wallet, to the point where if you lose it somehow, your bitcoins will be gone forever.
That’s why it’s a good idea to keep a copy. Go to https://bitcoin.org/en/ and follow the few simple steps in order to create your wallet. While you’re setting it up, you will probably read a bit about securing it, too.
Next thing you need is access to the public ledger.
You will get it from https://bitcoin.org/en/ again, but keep in mind that coming online will take a while since you have to synchronize the block chain with the entire network. Don’t worry, though – it only takes so long the first time.
Now that you’re all set up, the real fun may begin. For the sake of argument earlier, we decided that you’ve purchased an ASIC miner. This means that you need to find a suitable software for that hardware.
Not all software was created equal.
For example, some types like GUIminer only support GPU/CPU-based systems but not ASIC. That’s why it’s important to know your hardware so you can choose your software promptly. There is a plethora (well, maybe not plethora, per say, but you know what we mean) of bitcoin mining software comparison websites, so go wild.
The entire Bitcoin network is based on the block chain that’s being mined by the miners.
All transactions that occur on the network are recorded and placed into blocks, then confirmed in the process of bitcoin mining.
Mining means solving individual blocks providing an answer to a complex mathematical problem. Every block in the chain is related to the one before and makes a reference to it.
The problem of every new block is given to the entire network and the one who solves the block first receives a reward of 25 bitcoins (currently; the reward is set to half every 4 years).
There is a block being solved approximately every 10 minutes and in order to keep it this way, the system is increasing the overall difficulty of the problem every 2016 blocks (or every two weeks).
In the beginning, the bitcoin mining hardware used to be pretty basic.
People were using the CPUs (central processing unit) on their computers in order to mine bitcoins. However, CPUs are not very good at this sort of computation and consumed a lot of power for little result.
Soon people realized that GPUs (graphics processing unit) can be used for mining bitcoins aside from gaming, and are a lot more efficient than CPUs.
However, the problem with power consumption still remained. With the current difficulty, it’s nearly impossible to mine with a normal GPU and make a profit – it would take too long for you to solve a block.
The speed that is important here is gigahashes per second or GH/s, for short. The more gigahashes your system can produce per second, the bigger the chance for you to solve the block.
Right now though, if you want to be competitive you need to invest quite a lot into specialized mining hardware, such as ASIC (application-specific integrated circuit) which was created for the sole purpose of mining and consumes a lot less power than normal hardware to get the job done.
Mining hardware is not enough to mine, though. You will also need bitcoin mining software and a bitcoin wallet to keep your earnings in.
There are different software tools and applications you can use based on your hardware but make sure that the software you choose fits your rig. Some programs still only work with GPU-based systems, while others are ASIC-specific.
Do your research and make comparisons before you decide to buy anything. You can use a bitcoin mining calculator in order get an estimate of how many bitcoins you will be able to mine with certain hardware.
It’s also worth to note that you can join a pooled bitcoin mining effort and combine your processing power with that of the entire pool.
Thus you will be paid more regularly because you will be solving more blocks, but you will be paid because the reward will be split. Check pools’ policies before you join, but this is generally the best way to mine. Good luck!
The process of mining and thus confirming all the transactions made in the Bitcoin network is an integral component of the whole process.
Mining is simply a way of saying that complicated mathematical problems are being solved in order to make sure that everything on the network is legitimate, while generating more bitcoins at the same time.
Every block in the chain is reduced to a single hash (thus being solved) and the result is referenced in the next block so the continuity of the network can be preserved.
The number of hashes a hardware component can suggest per second is the measure of speed for this component (usually in gigahashes per second or GH/s for modern hardware).
The block chain is supposed to follow a schedule of solving a block every ten minutes. However, with more miners joining the network, the computational power of the entire network increases unavoidably. Hence, in order to compensate for the increases in computational ability, the network needs to increase the difficulty.
Here’s bitcoin difficulty explained in very basic terms: in order to solve a block, you need to find a hash value that is below a certain global target. This global target which is valid for the entire network is what we call difficulty.
The lower this value is, the less computations are needed to solve a block, since the possible answers to the cryptographic problem are less.
However, with the increase of computing power, miners find the answer easier and start to solve blocks faster than the scheduled 10 minutes per block.
In order to combat this, the difficulty is readjusted every 2016 blocks (or approximately two weeks).
It can be increased if it took less than two weeks to solve 2016 blocks (which is usually the case) or it be decreased, if it took longer. The percentage of the increase is calculated based on the time difference between the schedule and the actual solving of the 2016 blocks.
The current difficulty is 13462580114.525. Bitcoin next difficulty is expected to be approximately 16780864348.84939990.
Based on the difficulty, you can use a bitcoin calculator to see an estimate of how long it would take you to solve a block based on your hardware.
You can even see potential profits. The end numbers will probably be different in the end, though, because the calculator gives estimates based on perfect conditions. This is the basics of bitcoin difficulty explained.
As Bitcoin gains more and more popularity, there are activities added to the list of potential operations you can accomplish with bitcoins.
For example, if you find a trader who accepts bitcoins, you can make legal purchases, just like you would with any other form of currency. Or you can simply sell your bitcoins at an exchange.
If you’ve mined them, then you might be getting a nice profit and a return on your investment.
Another thing you can do is buy other altcoins and either wait for their price to go up before re-selling (thus making a profit) or use them in other operations. Bitcoins are also accepted in various online casinos so you can gamble with them.
Finally, you can use them to buy binary options and try to make a profit on the market.
As you can see, the possibilities are many and more and more people are getting on the Bitcoin bandwagon so there are even more goods and services on the way.
Bitcoin binary options are a relatively new concept that they’re gaining speed fast.
If you’re good at this sort of thing, you can make very good money (although there are still risks even to the best traders).
The whole concept of binary options is relatively simple – you select whether the price will up or down from the current value in predetermined time period. If you think that the price will go up, you buy a call option.
If you think the price will go down, you buy a put option. In case you’re right, you get the profit offered by the broker (standard is 70% of your investment but it may vary), but if you’re wrong you lose the entire investment.
Let’s illustrate this with an example. Let’s take gold as an underlying asset.
You believe that the price of gold will be higher in one minute than it is now, so you buy a call option for one minute at the price of 1 bitcoin.
In one minute, the price of gold is indeed higher so you will collect a profit (it doesn’t matter if it’s 1 cent higher or a few dollars – if it’s higher and you have a call option, you win).
The rate offered by the broker is 70% so you collect 0.7 bitcoin as a profit, plus your initial investment. You need to be warned, though – the fact that it’s so simple to trade binary options doesn’t mean that it’s easy.
You need to be right in your estimates more than 65% of the time if you want to profit (assuming you invest the same amount for wins and losses).
This is how bitcoin binary options trading works. You’re either right or you’re wrong.
There’s usually no middle ground (unless the price stays the same which rarely happens). You need to be able to read charts, make good predictions based on technical analysis and have a bit of luck because sometimes there are unforeseen consequences.
If you think you can deal with that, then find yourself a reputable broker and start trading.
You can check out UpDown, Beast Options and Satoshi Options. Make sure you read some additional information about the subject before you start trading and the brokers. Good luck!
Bitcoin is gaining popularity so more and more venues embrace this fantastic cryptocurrency.
There are Bitcoin casinos popping up all over the place but not all of them are worth your time or coins.
Sadly, we can’t explore all the best bitcoin gambling sites in a single article, but the ones we present here will definitely be a point of interest for you (in case online gambling is your cup of tea).
Other than the frisky wordplay in the casino’s title, the Betcoin Casino has a lot to offer its customers.
The website design is simply gorgeous and one of the best you can in an online casino (bitcoin or otherwise).
The amount of work that’s been put here is self-evident and the layout works perfectly with the casino’s theme. The website accepts both Bitcoin and Litecoin, so no matter what your choice of cryptocurrency is, you can play here.
The casino offers a wide variety of games:
- Video poker
- Slots and more.
There is also a live casino option where you can play blackjack, roulette or baccarat with a real croupier in real time via the use of advanced streaming technologies.
The casino also offers a 100%, 50%, and 25% bonus on your first three deposits (in that order) up to 1 bitcoin each. Keep in mind that bonuses are for playing, not presents the casino is making. Hence, there are certain wagering requirements you need to review before you claim a bonus.
All in all, the Betcoin is a great casino that looks wonderful, has excellent games and offers nice bonuses.
The SatoshiBet Casino doesn’t shine with a beautiful web design.
Instead, the site’s focus is on simplicity – no downloads and no wasting on anything other than playing. You get in, you play and you get out without downloads and even without a registration.
Playing here is completely anonymous. You can also test the system with play-money if you want.
When you decide to play for bitcoins (other currencies accepted here are litecoins and dogecoins), an account will automatically be generated for you.
You can still have some control over the process of account creation, but this is optional.
The games you can play at the SatoshiBet are:
- Casino war
- Video poker
- And interestingly enough – Minesweeper.
You can personally verify each result of the games so you can be sure that you’re not being cheated.
The SatoshiBet is one of the most simplistic yet reputable bitcoin casinos you can find online.
Even without promotions, the casino attracts many different customers.
We wish you good luck if you decide to be one of them.