Search icon CANCEL
Subscription
0
Cart icon
Your Cart (0 item)
Close icon
You have no products in your basket yet
Save more on your purchases! discount-offer-chevron-icon
Savings automatically calculated. No voucher code required.
Arrow left icon
Explore Products
Best Sellers
New Releases
Books
Videos
Audiobooks
Learning Hub
Newsletter Hub
Free Learning
Arrow right icon
timer SALE ENDS IN
0 Days
:
00 Hours
:
00 Minutes
:
00 Seconds
Learning Bitcoin
Learning Bitcoin

Learning Bitcoin: Embrace the new world of fiance by leveraging the power of crypto-currencies using Bitcoin and the Blockchain

Arrow left icon
Profile Icon Caetano
Arrow right icon
S$12.99 S$52.99
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3 (3 Ratings)
eBook Oct 2015 236 pages 1st Edition
eBook
S$12.99 S$52.99
Paperback
S$66.99
Subscription
Free Trial
Arrow left icon
Profile Icon Caetano
Arrow right icon
S$12.99 S$52.99
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3 (3 Ratings)
eBook Oct 2015 236 pages 1st Edition
eBook
S$12.99 S$52.99
Paperback
S$66.99
Subscription
Free Trial
eBook
S$12.99 S$52.99
Paperback
S$66.99
Subscription
Free Trial

What do you get with eBook?

Product feature icon Instant access to your Digital eBook purchase
Product feature icon Download this book in EPUB and PDF formats
Product feature icon Access this title in our online reader with advanced features
Product feature icon DRM FREE - Read whenever, wherever and however you want
OR
Modal Close icon
Payment Processing...
tick Completed

Billing Address

Table of content icon View table of contents Preview book icon Preview Book

Learning Bitcoin

Chapter 2. Buying and Selling Bitcoins

 

"I really like Bitcoin. I own Bitcoins. It's a store of value, a distributed ledger. It's a great place to put assets, especially in places like Argentina with 40 percent inflation, where $1 today is worth 60 cents in a year, and a government's currency does not hold value. It's also a good investment vehicle if you have an appetite for risk. But it won't be a currency until volatility slows down."

 
 --David Marcus, CEO of Paypal

Building on the basics that were introduced in Chapter 1, Setting up a Wallet we're going to set up a trading account with an online Bitcoin exchange. In this chapter, we're going to cover the following topics:

  • Understanding Bitcoin's price volatility
  • Following exchange rates and news
  • Comparing Bitcoin exchanges
  • Trading Bitcoins on an exchange
  • Physical Bitcoins

Understanding Bitcoin's price volatility

In May of 2010, the first significant Bitcoin transaction was exchanged. A pizza worth roughly $25 was purchased for 10,000 bitcoin. At today's pricing, where a single bitcoin is worth about $250, the same amount of bitcoin would be worth approximately $2,500,00. In retrospect, it was a "worthy" pizza!

Since then, Bitcoin's volatile price movements took the exchange rate, in US dollars, up to $1200 in 2013 and back down to $180 in 2015. It's quite an impressive history for a currency that's only six years old.

Before investing your own money in Bitcoin, it's advisable to become familiar with the reputable services available, as well as its price history. Linking significant events and stories to the price is a fundamental approach to trading bitcoin.

Compared to most other global markets, Bitcoin has an overall low volume. Thus, a large move by a big player can alter the price very quickly. Make sure to assess...

Following exchange rates and news

To help track what's going on in the Bitcoin space, we'll look at some products and services to track exchange rates and related news events.

Price tickers

There are many services that track and display Bitcoin exchange rates. One of the easiest apps to use is btcReport (available for iOS on the App Store):

Price tickers

Figure 2.2 - btcReport, a Bitcoin price ticker for the iPhone

The main display of btcReport, as shown in Figure 2.2, shows the latest trading price and news. Daily metrics are shown as changes in today's price (shown on the top), a ticker chart, and the trailing 3-day average (shown under the chart). Displayed along the bottom is a selection of currencies, and on the top right there is an option to change the exchange. btcReport functions nicely as an app in your pocket for a quick glance at the exchange price and recent movements.

For most users who wish to casually buy and sell bitcoin, btcReport offers a clean and uncluttered view into the...

Comparing Bitcoin exchanges

Shortly after Bitcoin's beginning in 2009, online exchanges were created to facilitate buying and selling of Bitcoin. In 2010, MtGox was the first exchange to bring Bitcoin to the market. MtGox was originally a site for trading Magic the Gathering cards but was adapted for trading bitcoin. They grew quickly, both in user base and trade volume, and brought Bitcoin to many thousands of people. However, they were unable to sustain the pace of growth and met difficulty in meeting government compliance. Ultimately, they experienced a significant bitcoin theft that left them insolvent. In early 2014, they publicly announced their insolvency and filed bankruptcy.

Thus, when choosing a Bitcoin exchange, it's most important to do some research on the company and its operations. Let's cover some important aspects used to make a worthy comparison.

Volume and liquidity

Consider an exchange with a light trading volume. If a large order is placed that exceeds the...

Trading Bitcoins on an exchange

Aside from the risks involved, trading Bitcoin can be rewarding. For our introduction into trading Bitcoins, we will setup an account with Coinbase Exchange. Coinbase is a Bitcoin wallet service. They offer the option to buy and sell bitcoin from your wallet similar to Circle. In addition, they offer a full service platform for trading Bitcoin in real time.

Coinbase, founded in 2012, is funded by top-tier investors, including the New York Stock Exchange. They have a license to operate as a money transmitter in more than 15 states in the United States. Users who are living in the US and Europe can fund their accounts with US dollars or Euros.

Setting up an account

To start trading on Coinbase Exchange, you will need to sign up with Coinbase for the wallet and verify your account. From your account you will be able to link your bank account to transfer funds. Similar to Circle's requirements, Coinbase will prompt you for a valid identification as well as...

Physical Bitcoins

So far we've been discussing about buying and selling bitcoins that are stored electronically in your wallet. They are secured by a digital private key which is encrypted by wallet software. Being completely digital, these coins are only available and managed online.

Physical Bitcoins is a concept that allows us to hold a bitcoin in our hand by embedding the private key into a precious object. The objects openly display the public address that can be used to verify that the funds are in fact available. This makes it convenient to exchange Bitcoin, hand to hand, by not having to involve a software wallet. In addition, since the private key is never stored online, it makes hacking very difficult.

As a collector's item, physical Bitcoins often have a numismatic value placed above the actual value of the electronic Bitcoin. In addition, the physical object is often a precious metal, such as gold or silver. The combined values of all these aspects are used in estimating...

Understanding Bitcoin's price volatility


In May of 2010, the first significant Bitcoin transaction was exchanged. A pizza worth roughly $25 was purchased for 10,000 bitcoin. At today's pricing, where a single bitcoin is worth about $250, the same amount of bitcoin would be worth approximately $2,500,00. In retrospect, it was a "worthy" pizza!

Since then, Bitcoin's volatile price movements took the exchange rate, in US dollars, up to $1200 in 2013 and back down to $180 in 2015. It's quite an impressive history for a currency that's only six years old.

Before investing your own money in Bitcoin, it's advisable to become familiar with the reputable services available, as well as its price history. Linking significant events and stories to the price is a fundamental approach to trading bitcoin.

Compared to most other global markets, Bitcoin has an overall low volume. Thus, a large move by a big player can alter the price very quickly. Make sure to assess your personal financial risk level before...

Left arrow icon Right arrow icon

Description

The financial crisis of 2008 raised attention to the need for transparency and accountability in the financial world. As banks and governments were scrambling to stay solvent while seeking a sustainable plan, a powerfully new and resilient technology emerged. Bitcoin, built on a fundamentally new technology called “The Blockchain,” offered the promise of a new financial system where transactions are sent directly between two parties without the need for central control. Bitcoin exists as an open and transparent financial system without banks, governments, or corporate support. Simply put, Bitcoin is “programmable money” that has the potential to change the world on the same scale as the Internet itself. This book arms you with immense knowledge of Bitcoin and helps you implement the technology in your money matters, enabling secure transactions. We first walk through the fundamentals of Bitcoin, illustrate how the technology works, and exemplify how to interact with this powerful and new financial technology. You will learn how to set up your online Bitcoin wallet, indulge in buying and selling of bitcoins, and manage their storage. We then get to grips with the most powerful algorithm of all times: the Blockchain, and learn how crypto-currencies can reduce the risk of fraud for e-commerce merchants and consumers. With a solid base of Blockchain, you will write and execute your own custom transactions. Most importantly, you will be able to protect and secure your Bitcoin with the help of effective solutions provided in the book. Packed with plenty of screenshots, Learning Bitcoin is a simple and painless guide to working with Bitcoin.

Who is this book for?

If you are familiar with online banking and want to expand your finances into a resilient and transparent currency, this book is ideal for you. A basic understanding of online wallets and financial systems will be highly beneficial to unravel the mysteries of Bitcoin.

Product Details

Country selected
Publication date, Length, Edition, Language, ISBN-13
Publication date : Oct 30, 2015
Length: 236 pages
Edition : 1st
Language : English
ISBN-13 : 9781785286155
Vendor :
Bitcoin
Category :
Concepts :
Tools :

What do you get with eBook?

Product feature icon Instant access to your Digital eBook purchase
Product feature icon Download this book in EPUB and PDF formats
Product feature icon Access this title in our online reader with advanced features
Product feature icon DRM FREE - Read whenever, wherever and however you want
OR
Modal Close icon
Payment Processing...
tick Completed

Billing Address

Product Details

Publication date : Oct 30, 2015
Length: 236 pages
Edition : 1st
Language : English
ISBN-13 : 9781785286155
Vendor :
Bitcoin
Category :
Concepts :
Tools :

Packt Subscriptions

See our plans and pricing
Modal Close icon
$19.99 billed monthly
Feature tick icon Unlimited access to Packt's library of 7,000+ practical books and videos
Feature tick icon Constantly refreshed with 50+ new titles a month
Feature tick icon Exclusive Early access to books as they're written
Feature tick icon Solve problems while you work with advanced search and reference features
Feature tick icon Offline reading on the mobile app
Feature tick icon Simple pricing, no contract
$199.99 billed annually
Feature tick icon Unlimited access to Packt's library of 7,000+ practical books and videos
Feature tick icon Constantly refreshed with 50+ new titles a month
Feature tick icon Exclusive Early access to books as they're written
Feature tick icon Solve problems while you work with advanced search and reference features
Feature tick icon Offline reading on the mobile app
Feature tick icon Choose a DRM-free eBook or Video every month to keep
Feature tick icon PLUS own as many other DRM-free eBooks or Videos as you like for just S$6 each
Feature tick icon Exclusive print discounts
$279.99 billed in 18 months
Feature tick icon Unlimited access to Packt's library of 7,000+ practical books and videos
Feature tick icon Constantly refreshed with 50+ new titles a month
Feature tick icon Exclusive Early access to books as they're written
Feature tick icon Solve problems while you work with advanced search and reference features
Feature tick icon Offline reading on the mobile app
Feature tick icon Choose a DRM-free eBook or Video every month to keep
Feature tick icon PLUS own as many other DRM-free eBooks or Videos as you like for just S$6 each
Feature tick icon Exclusive print discounts

Frequently bought together


Stars icon
Total S$ 208.97
Building Blockchain Projects
S$66.99
Mastering Blockchain
S$74.99
Learning Bitcoin
S$66.99
Total S$ 208.97 Stars icon
Banner background image

Table of Contents

9 Chapters
1. Setting up a Wallet Chevron down icon Chevron up icon
2. Buying and Selling Bitcoins Chevron down icon Chevron up icon
3. Protecting Your Bitcoins Chevron down icon Chevron up icon
4. Understanding the Blockchain Chevron down icon Chevron up icon
5. Installing a Bitcoin Node Chevron down icon Chevron up icon
6. Understanding the Mining Process Chevron down icon Chevron up icon
7. Programming Bitcoin Chevron down icon Chevron up icon
8. Exploring Alternative Coins Chevron down icon Chevron up icon
Index Chevron down icon Chevron up icon

Customer reviews

Rating distribution
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3
(3 Ratings)
5 star 33.3%
4 star 0%
3 star 33.3%
2 star 0%
1 star 33.3%
Amazon Customer Mar 14, 2016
Full star icon Full star icon Full star icon Full star icon Full star icon 5
As developer, this is the book I would have liked to read when I started getting interested in bitcoin. If a good book if you do not know nothing about bitcoin as final user or developer. Or if you know a little bit about it and you want to have a global vision of bitcoin posibilities.
Amazon Verified review Amazon
Feng SHI Dec 07, 2015
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3
I really recommend this book.This book is concise and comprehensive. it covers basic knowledges about bitcoin and also provides plenty of practical examples.As the author is a veteran in software development and entrepreneur, especially in bitcoin currency, he has successful experiences of others to go byFeng
Amazon Verified review Amazon
Eth Jun 26, 2017
Full star icon Empty star icon Empty star icon Empty star icon Empty star icon 1
no clear explanation provided for any of the topics.
Amazon Verified review Amazon
Get free access to Packt library with over 7500+ books and video courses for 7 days!
Start Free Trial

FAQs

How do I buy and download an eBook? Chevron down icon Chevron up icon

Where there is an eBook version of a title available, you can buy it from the book details for that title. Add either the standalone eBook or the eBook and print book bundle to your shopping cart. Your eBook will show in your cart as a product on its own. After completing checkout and payment in the normal way, you will receive your receipt on the screen containing a link to a personalised PDF download file. This link will remain active for 30 days. You can download backup copies of the file by logging in to your account at any time.

If you already have Adobe reader installed, then clicking on the link will download and open the PDF file directly. If you don't, then save the PDF file on your machine and download the Reader to view it.

Please Note: Packt eBooks are non-returnable and non-refundable.

Packt eBook and Licensing When you buy an eBook from Packt Publishing, completing your purchase means you accept the terms of our licence agreement. Please read the full text of the agreement. In it we have tried to balance the need for the ebook to be usable for you the reader with our needs to protect the rights of us as Publishers and of our authors. In summary, the agreement says:

  • You may make copies of your eBook for your own use onto any machine
  • You may not pass copies of the eBook on to anyone else
How can I make a purchase on your website? Chevron down icon Chevron up icon

If you want to purchase a video course, eBook or Bundle (Print+eBook) please follow below steps:

  1. Register on our website using your email address and the password.
  2. Search for the title by name or ISBN using the search option.
  3. Select the title you want to purchase.
  4. Choose the format you wish to purchase the title in; if you order the Print Book, you get a free eBook copy of the same title. 
  5. Proceed with the checkout process (payment to be made using Credit Card, Debit Cart, or PayPal)
Where can I access support around an eBook? Chevron down icon Chevron up icon
  • If you experience a problem with using or installing Adobe Reader, the contact Adobe directly.
  • To view the errata for the book, see www.packtpub.com/support and view the pages for the title you have.
  • To view your account details or to download a new copy of the book go to www.packtpub.com/account
  • To contact us directly if a problem is not resolved, use www.packtpub.com/contact-us
What eBook formats do Packt support? Chevron down icon Chevron up icon

Our eBooks are currently available in a variety of formats such as PDF and ePubs. In the future, this may well change with trends and development in technology, but please note that our PDFs are not Adobe eBook Reader format, which has greater restrictions on security.

You will need to use Adobe Reader v9 or later in order to read Packt's PDF eBooks.

What are the benefits of eBooks? Chevron down icon Chevron up icon
  • You can get the information you need immediately
  • You can easily take them with you on a laptop
  • You can download them an unlimited number of times
  • You can print them out
  • They are copy-paste enabled
  • They are searchable
  • There is no password protection
  • They are lower price than print
  • They save resources and space
What is an eBook? Chevron down icon Chevron up icon

Packt eBooks are a complete electronic version of the print edition, available in PDF and ePub formats. Every piece of content down to the page numbering is the same. Because we save the costs of printing and shipping the book to you, we are able to offer eBooks at a lower cost than print editions.

When you have purchased an eBook, simply login to your account and click on the link in Your Download Area. We recommend you saving the file to your hard drive before opening it.

For optimal viewing of our eBooks, we recommend you download and install the free Adobe Reader version 9.