Ok so let’s take a look at what is Bitcoin – Bitcoin is the most popular Cryptocurrency on the planet.
So what is Bitcoin?
Bitcoin – A digital currency sent directly from person to person.
Bitcoin mining, as its called, is a process where transactions that take place in Bitcoin, which gets added to the Bitcoin public ledger by means of a 3-factor verification (each transaction is verified by 3 independent Bitcoin Miners). You earn the transaction fees that accompany the transactions you verify as well as a portion of the block reward issued in relation to your contribution to complete the block, once the transactions are written into the block (the public ledger).
Watch this video on “What is Bitcoin & Bitcoin Mining?”
Let’s get Started – Step 1: Open a Bitcoin Wallet
The next section of the guide will assist you in getting the relevant programmes in place in order to start using Bitcoin.
iCe3X.co.za offers wallet options for most cryptocurrencies and they allow you to purchase Bitcoin, Ethereum & Litecoin. You can also trade cross-border to Nigeria and withdraw or deposit via Voguepay.
Open a Luno.com wallet
Luno.com offers an online in-app trading platform via their phone app as well as instant EFT deposits that make buying Bitcoin fast and easy. Withdraw your funds to your South African bank account quick and easy.
Open a Cex.IO wallet
CEX.IO offers wallet options for most cryptocurrencies and they allow you to purchase Bitcoin using your Debit or Credit Card. You can also withdraw funds directly back into the card linked to your profile.
Open an Altcointrader.co.za wallet
Altcointrader.co.za offers an online exchange trading platform with support for BTC, BCH, BTG, ETH, RIPPLE, DASH , Litecoin & Zcash and instant EFT deposits that make buying Bitcoin fast and easy. Withdraw your funds to your South African bank account quick and easy.
Step 2: How to get Bitcoin
Thie info-graphic below shows (in a nutshell) how Fiat currency can be obtained versus how to get Bitcoin.
Step 3: Start mining Bitcoin
Mining Bitcoin is becoming more and more popular as people begin to understand the technology. All you need now is to purchase a Bitcoin miner and link it to your newly created Bitcoin wallet. Take a look at our Bitcoin miners and how much Bitcoin they produce on a monthly basis.
First of all – Bitcoin mining income changes every day based on the number of transactions you verify and the block rewards issued to the pool you mine in. Obviously the more miners you have the larger your revenue and chances of making more Bitcoin. You will need to take the following into consideration when calculating your ROI:
1. The price you are going to sell the Bitcoin you mine at – NEVER EVER just sell all your Bitcoin every day as you mine it.
2. Use the past 2 years Growth of Bitcoin as a guideline as to when and where you will sell the mined Bitcoin.
3. You can only calculate the ROI the day you sell the Bitcoin you mined thus in effect making it a backward calculation at that time.
4. Power cost and internet cost today will be nothing if you sell the Bitcoin you mined at double or triple the current price.
5. Bitcoin mining is a medium to long-term investment and not a get rich quick scheme.
6. Yes, it pays more than it costs but your paycheck grows in value exponentially the longer you wait to sell your Bitcoin and if you sell at the right time.
The formula to work out ROI = Average monthly Bitcoin Income of machine projected 12 months ahead minus a minimum 2.9% monthly reduction in Bitcoin income to compensate for difficulty. Then take the full amount you would mine over 12 months and multiply the value of that Bitcoin by the minimum growth of Bitcoin’s price of 80.97% per year (This is worst case – predictions say Bitcoin will more than double each year in value). The total you get there is a good indicator.
Just a look at Bitcoin’s growth in 24 months
Look at the buy demand in green vs the supply in red
Everything you need to know about Bitcoin & Cryptocurrency Mining.
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