FREQUENTLY ASKED QUESTIONS
Bitcoin emerged in 2008 just after Occupy Wall Street accused big banks of misusing borrowers’ money, duping clients, rigging the system, and charging boggling fees. Bitcoin pioneers wanted to put the seller in charge, eliminate the middleman, cancel interest fees, and make transactions transparent, to hack corruption and cut fees. They created a decentralized system, where you could control your funds and know what was going on.
At its simplest, Bitcoin is either virtual currency or reference to the technology. You can make transactions by check, wiring, or cash. You can also use Bitcoin (or BTC), where you refer the purchaser to your signature, which is a long line of security code encrypted with 16 distinct symbols.The purchaser decodes the code with his smartphone to get your cryptocurrency. Put another way; cryptocurrency is an exchange of digital information that allows you to buy or sell goods and services.The transaction gains its security and trust by running on a peer-to-peer computer network that is similar to Skype, or BitTorrent, a file-sharing system.
In Israel Bitcoin is LEGAL!
Bitcoin is a new and interesting electronic currency, the value of which is not backed by any single government or organization. Like other currencies, it is worth something partly because people are willing to trade it for goods and services. Its exchange rate fluctuates continuously, and sometimes wildly. It lacks wide acceptance and is vulnerable to manipulation by parties with modest funding. Security incidents such as website and account compromise may trigger major sell-offs. Other fluctuations can build into positive feedback loops and cause much larger exchange rate fluctuations. Anyone who puts money into Bitcoin should understand the risk they are taking and consider it a high-risk currency. Later, as Bitcoin becomes better known and more widely accepted, it may stabilize, but for the time being it is unpredictable. Any investment in Bitcoin should be done carefully and with a clear plan to manage the risk.
All in all, Bitcoin is more secure than most existing financial services,
including legacy banking platforms like SWIFT, which has been compromised repeatedly by hackers.
There are several elements that secure bitcoin from theft.
1. Cryptography controls the creation
and transfer of a cryptocurrency, and the protocols underlying bitcoin have proven to be robust.
2. Bitcoin’s use of a distributed ledger known as blockchain gives owners a record of all their transactions that cannot be tampered with because there is no single point of failure.
How to Secure your Bitcoin
transactions that cannot be tampered with because there is no single point of failure.
Yes, but only invest money in Bitcoin that you can afford to lose tomorrow. Bitcoin is not for the timid, but neither is anything. Great rewards sometimes involve risk.
Bitcoin is a highly speculative, experimental new type of digital asset. Therefore, there is substantial uncertainty around its future evolution and potential.
Bitcoin was originally created as an alternative, decentralized payment method. Unlike international bank transfers at the time, it was low-cost and almost instantaneous. An added benefit for merchants (less so for users) was that it was irreversible, removing the threat of expensive charge-backs.
However, the improvement in domestic payment methods and the rapid development of alternative (non-cryptocurrency) forms of international transfers has reduced bitcoin’s advantage in this area, especially given its increasing fees and frequent network bottlenecks.
Furthermore, the increasing oversight and regulation to prevent money laundering and illegal transactions have restricted the cryptocurrency’s use for privacy reasons.
Many individuals feel more comfortable holding a part of their wealth in securely-stored bitcoin, where a central authority cannot block access or take a cut.
According to some sources, bitcoin is increasingly being used for money laundering. But we know that you wouldn’t do that. And anyway, bitcoin is not, as is commonly believed, a good vehicle for money laundering, extorsion or terrorism financing, since it is both traceable and transparent – as a spate of recent arrests can attest.
1) You are looking to put your life savings into something that will increase in value, and you’re risk averse. Look somewhere else. Cryptocurrencies are still very volatile, and so I would never recommend putting more into them than you can afford to lose.
2) You heard something on the news about this Bitcoin thing, and while you don’t really understand or care about it, you wanna get rich with everybody else.
“Bitcoin is a tool for freeing humanity from oligarchs and tyrants… dressed up as a get rich quick scheme.”
It’s a revolutionary new technology that is already changing the way that money is perceived and used. It’s important that you understand that this is a seismic shift that is poised to completely change everything… not just payments and remittances, but the entire concept of “money” as we know it. So while many people, myself included, ARE making CONSIDERABLE gains on their cryptocurrency portfolio’s — that’s not the point.
3) If you’re here to make a quick buck, but not willing to invest in understanding how this technology actually works and the responsibility you assume when you become your own bank… stay away. You will lose your money like so many before you.
Bitcoin can be used to buy merchandise anonymously, without a middleman and involving lower or no fees and no banks. It has a use as a currency for those very few businesses that accept it. Websites such as CoinDesk and 99Bitcoins list the names of businesses that accept bitcoin as payment.
Gift Cards: eGifter.com,
We recommend using Bitcoin ATM’s.
The safest, simplest, and fastest way to buy and sell Bitcoin.
You can also link your bank account online to exchanges if you don’t want to use an ATM, but then you risk your bank accounts privacy, exchanges loosing your bitcoin.
With the Bitcoin ATM you only deal with the cash and no bank information
Because Bitcoin prices fluctuate, if you’re simply looking to make some money you can attempt to buy them low and sell them high. I bought a Bitcoin a few months back for $15, and if I sold it today I’d earn nearly $61. If you invest wisely and remain patient, you can make a decent amount of money by simply buying and selling Bitcoins.
Bitcoins are a currency, there are many businesses accepting them as payment. In fact, some businesses only accept Bitcoin. Why? Because Bitcoin conducts transactions peer-to-peer, there’s no intermediary to prevent the funds from rolling in. As a result, many of these services utilize Bitcoin as their only method.
That said, you can use Bitcoin for more than just questionably ethical services. Bitcoin Magazine offers a long list of options that includes everything from music downloads to gift cards to clothing.
Yes, in the same way as the euro and dollar are. They only have value in exchange and have no inherent value. If everyone suddenly stopped accepting your dollars, euros or bitcoins, the “bubble” would burst and their value would drop to zero. But that is unlikely to happen: even in Somalia, where the government collapsed 20 years ago, Somali shillings are still accepted as payment.
- NO, If you’ve spent much time on the Internet, you’ve probably seen ads for many ‘get-rich-quick’ schemes. These ads usually promise huge profits for a small amounts of easy work. Such schemes are usually pyramid/matrix-style schemes that make money from their own employees and offer nothing of any real value. Most convince one to buy packages that will make them earn hundreds a day, which in fact have the buyer distribute more such ads, and make minute profits.
- Bitcoin is in no way similar to these schemes. Bitcoin doesn’t promise windfall profits. There is no way for the developers to make money from your involvement or to take money from you. That bitcoins are nearly impossible to acquire without the owner’s consent represents one of its greatest strengths. Bitcoin is an experimental, virtual currency that may succeed or may fail. None of its developers expect to get rich off of it.
- A more detailed answer to this question can be found here.
NO, Bitcoin is a new and interesting electronic currency, the value of which is not backed by any single government or organization. Like other currencies, it is worth something partly because people are willing to trade it for goods and services. Its exchange rate fluctuates continuously, and sometimes wildly. It lacks wide acceptance and is vulnerable to manipulation by parties with modest funding. Security incidents such as website and account compromise may trigger major sell-offs. Other fluctuations can build into positive feedback loops and cause much larger exchange rate fluctuations. Anyone who puts money into Bitcoin should understand the risk they are taking and consider it a high-risk currency. Later, as Bitcoin becomes better known and more widely accepted, it may stabilize, but for the time being it is unpredictable. Any investment in Bitcoin should be done carefully and with a clear plan to manage the risk.
Don’t just ask us, do your own research before you decide to buy Bitcoin or any other Crypto-currency
CREATE A BITCOIN WALLET
We recommend Electrum, Bread, or Jaxx, but any wallet should work
SAVE THE PRIVATE KEY!
Store the private key in 3 separate locations. On Paper, USB, Phone or Computer.
CONNECT TO THE WORLD
You are now ready to Buy and Sell Crypto-currency!
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