Establishing the exact value of a bitcoin in a certain moment is important if you want to make short-term transactions, but for the long term, you should only understand that the value of a bitcoin would grow. Today, this currency suffers major course differences from one week to the other, because it is new and unpredictable, but if you look at the general chart of BTC/USD along the five years since the bitcoin was introduced, you will observe a generally growing trend.
When to buy bitcoins
The bitcoin might be influenced by a speculative initiative of some investors, so its value might be bigger during some days and smaller during other days. It is ideal to buy the bitcoin at its “natural” value, meaning the value that it has when the market is quiet, when there are no international events that affect its value, and when the number of market participants is not too big or small. Identifying those moments might be hard, but if you stay in front of the bitcoin chart for about a month, you will be able to determine the best moments to buy or sell.
Where to buy bitcoins from?
MTgox.com is the largest market for bitcoins, a place where you can meet other bitcoin traders, with live charts, statistics and previsions for the currency.
The bitcoins are anonymous, as they are based on a decentralized system. Their value depend on the own generating system and on speculators. There are no national banks that can influence the number of bitcoins that are present on the market, and the smart system of Bitcoins make it possible for any person to see exactly how many bitcoins are on the market at every moment. This encourages the possibility to buy illegal goods and services, but as WordPress and even some large major hotel chains such as Howard Johnson started to accept the bitcoin as a payment method, we can say that this currency exited the grey area of the internet.
Bitcoin trading services
The bitcoins can be purchased with a phone deposit, or even with a SMS. Pingit is a service of Barclays allowing UK traders to buy and sell bitcoins, but for other countries, other methods must be found. The safest method is the cash deposit that you can use at BitInstant, but this service is only offered by major US banks, MoneyGram and Wallmart. In Brazil, bitcoins can be purchased with Boleto, and in Russia, you can use QIWI and Cyberplat.
If you want to sell bitcoins, you will have to integrate your wallet with BTCPak, and a smart but indirect method would be to use Green Dot MoneyPak, which is great especially because you can add PayPal funds, meaning that this is an indirect but smart method to exchange bitcoins in major currencies using PayPal and a third party service.
As said before, the bitcoin was used by many people needing to buy illegal services, but also by hackers. Those hackers understood how the bitcoin works, meaning that they can easily attack some websites and bitcoin users. Before starting any bitcoin transaction, make sure that you are doing it in a safe and secured environment.
The Multi-factor authentication is available with the majority of websites offering bitcoin wallet services. The session is valid for a limited period. Once you have applied with Google Authenticator, you must use the e-mail verification offered by those websites, and even a SMS. The wallets are also available for mobile terminals, but as it is known that the mobile world still does not benefit of the best security, it is a good idea to find a reliable service of this kind, such as the mobile trading platform from blockchain.info.
All their services require SMS verification, and this is the best method to eliminate a part of scammers, but also to update the transactions fast. The system is simple and effective, allowing traders to have their bitcoins in an out of their wallets in less than a minute.
In some cases, there might be some problems on the network, such as overloading, and in this case, it might take a few hours for the transaction to be made. If the transaction is not executed for 24 hours, the transaction is cancelled and the money is refunded.
If you want to use the SMS system from Blockchain, you will have to create an account there, and to verify your phone with a SMS. The instructions are simple, and after ten minutes, you will be able to execute transactions instantly.
The Barclay’s PingIt is also available with Blockchain, and this method also requires SMS verification. There is a PingIt app that you can download from the App Store, which is the fastest method for iPhone and iPad users to buy and sell bitcoins.