What is Bitcoin? – Steps to use Features and More
Bitcoin – Bitcoin is a virtual currency or electronic exchange resource used to purchase products and services like any other currency. But this currency is decentralized; that is to say, no authority or control entity is responsible for issuing and registering its movements. Instead, it contains a Cryptocurrency key associated with a virtual wallet, which discounts and receives payments.
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Table of Contents
Steps to use Bitcoin
1. Purchase a Coin Purse
A system must store and operate bitcoin, called an electronic wallet, containing pairs of cryptographic keys, a public key and a private key.
2. Download the Application
The wallets can be used from computers or mobile devices as long as you have the Bitcoin application to carry out the operations.
3. Carry out Transactions
You can transact with other people who have virtual wallets.
Five Signs that Indicate that your Investment in Bitcoin is a Pyramid
Users of, or some other cryptocurrency, should be careful about the investments they make. Here are some indicators to avoid falling into the traps of illegal money raising.
- Therefore If the person did not explain how the profitability of the ‘business’ works
- However, if you are led to retain the money for a certain period
- And more if you do not have a telephone number or address to contact the person in charge
- If they pay investors for including more people in the ‘business.’
- If they offer fixed returns on investment
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Thinking of investing in Bitcoin?
- The virtual currencies traded through platforms in different countries suffer from high volatility in the market because they are regulating.
- The Central Bank of China has warned about the high volatility of that in a single day depreciated 15%.
- Banco de la Republica says that is not a currency in Colombia, and for this reason, it cannot considers a legal means of payment. Therefore, it doesn’t need to receive as payment of any obligation.
- According to the Superfinancial, virtual currencies are back by physical assets, nor the assets or reserves of central banks, so at any time, their exchange value with real currencies could be drastically reduce to zero.
- Super sociedades emphasise that investors should know that they are expos to enormous risks by investing in currencies that are accept as legal in the country.
- No virtual currency considers a currency because any Central Bank in the world does not back it and therefore cannot use as a means of payment for an exchange operation.
- It would make it difficult for investors to recover the resources deposited in this type of currency since none of the virtual currency platforms regulates by Colombian law. For example, they are not subject to the control, surveillance or inspection of the Financial Superintendence.
Following are the Risk Factors:
- The platforms that trade the virtual currencies locate in different countries, so the Colombian authorities cannot control them.
- Their transactions are anonymous, and therefore the authorities cannot establish whether it is money from illicit activities.
- Another risk can be the theft of electronic wallets. The impossibility of cancelling or reversing transactions made by a thief on behalf of an investor, and the lack of insurance for investment in these currencies.
- On the other hand, in Colombia. “Investment clubs” companies promise returns of up to 100% of the investment in just two months. Some even ask them to attract more investors under a model similar to multilevel.
- The “investment clubs” promoted by natural persons who pose as expert professionals in virtual currencies. Still, they do not have any support to deliver the money invested or its returns and only seek to attract more investors.
- These so-called advisers promise investors to manage their bets on investment platforms and generate higher returns than they would get if they bet their money directly.
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