What is Bitcoin in simple words: another electronic currency or a new generation of money? Bitcoin. How does this work

23.08.17 250 033 0

What are Bitcoins

And is it possible to make money from them?

Since the beginning of 2017, Bitcoin has increased in price by 4 times.

Money that does not exist is worth more than oil and gold. I'll tell you how you can make money on this.

Antonina Asanova

I tried trading bitcoins on the exchange

In May of this year, I tried trading bitcoins. In 2 weeks I earned 30%. Then I lost 15% in a month. While this article is being prepared, I may trade 15% again, or I may lose even more.

Trading cryptocurrency is a risky business. Here's what you need to know if you're a risk taker.

ATTENTION

What is Bitcoin

Bitcoin is digital money. This currency does not physically exist, there are only special registers that keep records of how many bitcoins someone has and who transfers them where. These ledgers are called blockchains.

This is similar to how cashless payments in banks work: when you pay with a card in a store, you also do not transfer any physical money or gold to anyone. Your transaction is simply recorded somewhere in the bank register.

Bitcoins differ from regular currency in that registers are not stored centrally in banks and payment systems, but simultaneously on all computers that are occupied with bitcoins. Anyone can with all the bitcoins in history.

The registries are protected by cryptography. It is impossible to fake them for everyone at the same time. It is impossible to rewrite data in blocks and say that someone now has millions. Bitcoin is quite secure in this sense. True, there is already an attack that allows you to pay twice with the same bitcoins, so it is impossible to say that bitcoin is absolutely safe.

Where do bitcoins come from?

Regular currency is issued by the government. It is very indirectly connected with gold reserves, but in fact it is not connected with anything - as much as the state needs, it will print as much.

Bitcoins are not associated with any one state. New units of Bitcoin are created as computers on that payment network serve the needs of that same network.

For example, somewhere in China a person paid for pizza with bitcoins. This operation must be recorded in the registries on all computers connected to the Bitcoin network. To record a transaction in the register, you need to seal it with a special signature, like a wax seal. This signature needs to be calculated, which is a complex computer task.

Somewhere in Venezuela there is a computer that services the Bitcoin network. He just figured out this cryptographic signature. As a token of gratitude, the owner of this computer receives a reward in the form of a bitcoin penny.

For a Venezuelan who has set his computer to the mode of calculating cryptographic signatures, it looks like this: his computer is rustling something, and bitcoin pennies are dripping into his account. The computer appears to be mining bitcoins, although in reality it is simply encrypting and sealing other people's transactions. This is called mining - like “mining” bitcoins.

In fact, it is not the bitcoins themselves that are mined, but sealing wax to protect the ledgers. Bitcoins - this is a reward for service.

Mining is a separate big topic. In a nutshell: the equipment is expensive, efficiency is low, and you will have to compete with megawatt Chinese mining clusters that are built on the basis of power plants. We will write a separate article about mining.

Why do we need Bitcoin?

Cryptocurrency allows you to transfer money under a pseudonym and without the participation of banks. This is relevant for transactions with people and companies from countries outside the CIS.

For bitcoins you can buy an Airbaltic ticket or a Dell computer. You can even donate funds to a Buddhist temple in Seoul.

Bitcoins are traded on the exchange and money is invested in them.

Since 2015, Bitcoin has risen in price from $200-300 to $4000 and continues to grow. This has made cryptocurrencies interesting for investment and speculation.

Success stories fuel interest. In 2009, Norwegian student Christopher Koch randomly bought $24 worth of bitcoins. He remembered the investment 4 years later, when his fortune reached 885 thousand dollars. And I bought an apartment in Oslo with part of the money invested.

Bitcoin wallets are used for transfers and payment for services. They store the digital keys needed for transactions. If you lose your private key, your money is gone forever. They cannot be returned by calling the bank. The Bitcoin system has no single center or regulator.

Under a pseudonym is not anonymous

Bitcoin transaction registers contain the entire history of transactions for all times across all wallets. If you bought something bad for bitcoins, and then somehow it became known that this wallet was registered with you, then the interested person will be able to see all your transactions.

For example, if you bought a plane ticket for bitcoins and indicated your personal data when paying, then the interested intelligence agencies will already be able to identify you.

There are, of course, means of completely anonymizing payments, but they are expensive.

Is this legal?

The Central Bank and Rosfinmonitoring warned against the use of bitcoins. At the same time, the State Duma is preparing a bill that would legalize the purchase of cryptocurrencies for use abroad and trading in bitcoins.

Until the government regulates the circulation of bitcoins, banks and other companies cannot sell them. Cryptocurrency exists in the world of the dashing nineties. They can be purchased from individuals, online exchangers or trading exchanges.

Important clarification

We provide a basic scheme for buying and selling bitcoins through an exchanger and stock exchange. All examples are in rubles, to make it clear.

There is no universal way. If you have your own recipe for trading cryptocurrency, come in the comments.

How to buy Bitcoin through an exchanger

Internet exchangers work on the same principle as street ones that exchange euros and dollars. They buy bitcoins at a price below the exchange rate, and sell them at a higher price. They make money on the difference.

There are many popular exchangers: Bestchange.ru, Okchanger.com, Localbitcoins.net. There you can exchange rubles for major cryptocurrencies.

I compared the rate on different platforms and chose Localbitcoins. Buying cryptocurrency took 10 minutes. It took another 20 minutes for the bitcoins to arrive in my wallet.

How to use. Enter in the search the amount for which you want to buy bitcoins. We choose the lowest rate and suitable payment method. Most often, exchanges are offered to Sberbank and Qiwi account holders.

If the seller agrees to the deal, he reserves the required amount. When you transfer rubles to him, he will send bitcoins to your wallet. Now you can buy something or transfer coins to a more secure wallet on your PC or flash drive.

Cons. The rate at exchange offices is very high.

Commission. Localbitcoins charges a withdrawal fee of 0.00039629 BTC. I invested a thousand rubles and received bitcoins worth 826 rubles. Transactions absorbed 17.4%.

For larger amounts the commissions are lower. You can negotiate individual terms with exchangers.

No one regulates the exchange market on the Internet. No one guarantees the security of transactions. If in doubt, do not transfer money or try to exchange a small amount first. Take into account the huge commission of exchangers when purchasing goods or investing money in bitcoins.

How to buy Bitcoin through an exchange

Exchanges are online platforms for trading cryptocurrency. Sellers and buyers of bitcoins meet there. If there are more sellers, the rate falls. If there are more buyers, it grows.

To register on a small cryptocurrency exchange, all you need is an email address. Large sites require you to enter your name, address, date of birth and telephone number. The larger the amount you change, the more personal data you will have to disclose.

At the end of July, the largest exchange that worked with rubles, Btc-e.com, closed. There are smaller exchanges left: Exmo.me, Livecoin.net, Cex.io. When choosing, pay attention to two points: the currency sale rate and the money input system. Some exchanges accept Yandex Money and Qiwi.

If you need to exchange several thousand dollars, choose a large exchange. Smaller sites may not have enough sellers. The most significant exchanges are Bitfinex.com, Kraken.com, Bittrex.com.

We write not only about digital money, but also about other investment instruments, ways to save on common things and accumulate a financial cushion.

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My experience. The Eksmo exchange suited me. I transferred rubles to her through Qiwi. Although this method has now been eliminated. It took almost 2 hours for the money to arrive on the exchange. Transfer to Bitcoin is instant.

How to use. First, we top up our account on the exchange. We put rubles into an electronic wallet. On the exchange website, click the “top up in rubles” button. We choose a payment method, amount and transfer money.

Now we buy bitcoins. On the exchange website, select the bitcoin-ruble currency pair. Find the block “Purchase, BTC” and enter the required amount.

Cons. Exchanges sometimes block withdrawals for 1-2 days after replenishing your account. This is explained by the rules of payment systems. Information about blocking is indicated on the money entry page.

Commission. Exchanges charge 4-6% for entering rubles. Exchanges also charge a commission on each transaction. As a rule, this is 0.1-0.3%. There is also a commission for withdrawing bitcoins - 0.001 BTC. As a result, out of a thousand, 805 rubles remain.

You can save money if you use a dollar or euro card, as well as register with the international payment systems MoneyPolo or ADVCash and top up through them. In this case, exchanges can credit funds without any commission at all.

To choose the most convenient and cheapest exchange method, you will have to register on several services. Decide in advance where you will write down your passwords.

Anonymous methods of depositing and withdrawing money are more expensive than legal ones and much riskier. Using bitcoins is like walking down the street wearing a mask, but with transparent pockets. The system does not reveal the owner of the wallet, but all transactions are recorded on a public blockchain. Sometimes government services manage to connect Bitcoin wallets with real people by IP address or delivery addresses for purchases.

To achieve anonymity, users transfer money several times between new Bitcoin wallets, use the anonymous Tor network and Bitcoin mixers - for example Coinmixer.se. In the mixer, transactions from different users are split and mixed. As a result, it remains a mystery who transferred how much and to whom. The service costs 1-3% of the amount.

On Localbitcoins and forums you can find a person who will exchange bitcoins for cash. It is also almost impossible to track them. However, this method of exchange is very risky: you can stumble upon scammers on forums and be left without money.

How to sell bitcoin

Let's say that since you bought bitcoins, their rate has increased so much that it has outgrown all your costs for commissions and transfers. It's time to sell bitcoins and take the money you earned. In this situation, you can use exchangers again or withdraw money through the exchange.

Experience. I am withdrawing funds from the Eksmo exchange to my card. Of all the withdrawal methods, I choose the cheapest one - the Capitalist.net service. Transferring from the exchange to the card takes less than a minute.

How to use. Register with Capitalist. In the exchange wallet, select the withdrawal of rubles and enter the “Capitalist” account number. Then we transfer the money to a Visa or MasterCard card.

Commission. You can transfer bitcoins to an exchange wallet without commission. “Capitalist” charges 2.5% for transfers to a card.

Do not transfer bitcoins before they send you rubles for them. Bitcoin transactions cannot be reversed.

How to make money on bitcoins

On the Internet you can find many training videos, blogs and forums that promise an income of 20% per month. The general idea is to buy bitcoins at the minimum rate with minimal commissions and sell at the maximum rate, but also with minimal commissions.

It seems that trading currencies is simple, but you should not take risks right away. The Bitcoin exchange rate changes very quickly and dramatically. First, try trading with an amount that you don’t mind losing. When you can earn money consistently, you can play big.

There are the least risks when trading with the trend. To do this, you need to deposit money on the exchange, wait for the moment when the rate has fallen and is just starting to rise. And then buy bitcoins and wait for the rate to reach its peak. With this strategy, it is safer not to store bitcoins on the exchange, but to transfer them to a separate wallet.

Trading on the stock exchange is work. Players constantly monitor exchange rates and check with Chinese exchanges. To avoid missing rate fluctuations, you can download the Bitcoin Paranoid app. As soon as Bitcoin starts to fall or rise, the alarm will go off. Bells can be placed on Bitcoinwisdom.com.

You can also earn money through ICO. Initial Coin Offering is an analogue of crowdfunding or going public. You invest in a new company, a startup, and for this you receive tokens - something like shares. If you are lucky and the company grows, you will receive income.

At the time of writing this article, the ICO procedure, like many other things in the field of cryptocurrencies, is almost unregulated and not protected in any way. Companies can launch an ICO without a product or a real business, just to collect money from investors and ride off into the sunset. Therefore, invest in companies at your own risk.

They are also investing in new cryptocurrencies. In addition to Bitcoin, there are several hundred of them. The Monero currency exchange rate has increased 40 times over the past year, from $14 to $585. Ethereum and Dash increased in price by 17 times.

Investments in ICOs and new cryptocurrencies are high-risk. To assess the prospects of a startup, you need to understand blockchain technologies and business.

Remember

1. Cryptocurrency is a risky business. Bitcoin is still not beyond the scope of the experiment. It is not legalized in Russia. No rights of yours are protected here.
2. Take care to protect your wallet and save your passwords securely. Lost keys cannot be recovered.
3. Check out the service fees before transferring funds. Transactions can eat up 10, 15, and even 20%.
4. Do not transfer bitcoins until you confirm that you have been transferred currency for them. Cryptocurrency transactions cannot be cancelled.
5. If you store money in bitcoins, monitor its exchange rate.
6. Start trading with an amount that you don't mind losing.
7. Professional Bitcoin trading is a full-time job. If someone promises guaranteed income without effort, chances are that someone will make money for you.

The vast majority of Internet users have heard about the Bitcoin cryptocurrency (abbreviated as BTC) or mining. If you don’t yet know what Bitcoin is and where to get it, then we suggest you read this article to the end. We will tell you about BTC, the most popular methods of mining it, as well as where and how you can buy or sell it.

What is cryptocurrency

Cryptocurrency is a digital currency that has quite a lot of similarities with fiat money (euro, rubles, dollars) and at the same time is very different from them. Having cryptocurrency, you can spend it on purchases, for example, in an online store, or even pay for dinner in a Chinese restaurant. You can also transfer it to another person or exchange it for fiat money using the services of Bitcoin exchangers. All this makes cryptocurrency, including BTC, very similar to the usual money on a debit card.

The main distinguishing feature of cryptocurrency is the decentralization of digital money, which makes it possible to carry out transactions without the participation of third parties. If you create a transaction using, for example, a credit card from any bank, your money first goes to the control node. At this point, the banking system analyzes the request, after which it may decide to confirm the transfer or return the money to the sender’s account. In addition to the fact that such operations take up precious time, the bank charges you a commission. In the case of cryptocurrency, there are no such control nodes, and money changes hands.

What is Bitcoin in simple words

VTS is the very first cryptocurrency that appeared in 2009. For the first time, one could get acquainted with the principle of operation of the peer-to-peer Bitcoin network, on which a certain Satoshi Nakamoto worked, two years before the appearance of the digital currency. Despite the fact that Nakamoto managed to attract the attention of thousands of programmers to his project, no one ever believed in its success. The first transaction using Bitcoin was carried out by the American Hanecz Laszlo, who offered 10,000 BTC to anyone who would bring two Italian pizzas to his house. It is difficult to imagine what emotions Laszlo experienced at the moment when Bitcoin began to rapidly rise in price.

Today, there are hundreds of millions of transactions using cryptocurrency. Therefore, we will answer the question “what is Bitcoin” in simple words - money that has its own exchange rate in relation to another currency, but does not have a physical form.

How new coins of VTS and other cryptocurrencies appear

Unlike government banknotes, cryptocurrency cannot be printed. However, this does not mean that virtual coins appear out of nowhere. Cryptocurrency is a digital object containing a colossal amount of information that has a cryptographic code. Simply put, this is a kind of virtual memory card that has a digital record.

In order to generate a new record, it is necessary to find the only correct solution to a complex mathematical algorithm. Since even the smartest person is not able to cope with such a task, the computing power of a computer is used for these purposes.

Each cryptocurrency differs from each other not only in the uniqueness of the given algorithm, but also in the complexity of the problem, as well as the total number of possible solutions, which are subsequently turned into coins. It follows that:

• the total number of coins of any cryptocurrency is limited (BTC - 21 million coins);
• programmers know in advance when the last coin will be mined (BTS - in 2140);
• it is impossible to make any changes to the algorithm;
• coins must be obtained by solving problems;
• The fewer coins remain in the system, the more difficult the mining process becomes.

How to earn bitcoins

Today, the interest in cryptocurrency is so great that inventive people have come up with many ways to get the coveted BTC. As an example, here are the most effective and popular methods:

• cloud mining;
• VTS cranes;
• buying bitcoins.

Let's look at each method in more detail.

Mining

This method of how to earn bitcoins was not only the very first, but also the most effective. The “pioneers” who started mining were exclusively mathematicians and programmers, who watched with interest the project that Satoshi Nakamoto was working on. However, the growing popularity of cryptocurrency has led to the fact that at the moment almost anyone can mine it.

A few years ago, the question of where to get bitcoins was not as pressing as it is today. They could be mined on a regular desktop computer. But since the process becomes more complicated day by day, to mine cryptocurrency you need to have impressive computing power, which the so-called farms have.

A farm is a productive computer that uses the power of several modern video cards to mine bitcoins. We will definitely tell you which devices are suitable for mining digital currencies.

Which video card should you choose?

This is the first question that arises in the minds of people who learn that they can squeeze bitcoins out of their video card. However, before you begin the process of assembling your own farm, you need to pay attention to the cost of video adapters from the new lines presented by such giants as AMD Radeon and Nvidia. Their price varies between $300-600, which is undoubtedly expensive for the average citizen. It should also be taken into account that at least 4 such graphic adapters will be required.

Without a video card, creating a farm is impossible, since they are the ones involved in the computing process, for which rewards in the form of bitcoins or satoshis (one hundred millionth of a bitcoin) will be sent to your BTC wallet.

There is ongoing debate on forums about which chips are the most effective in cryptocurrency mining. Some people like AMD more, while others consider Nvidia to be the absolute leader. There is no definite answer, since in the process of mining a particular currency, chips demonstrate completely different results. But overall they are approximately equal. There is a significant difference in the cooling system. The quietest and coolest are video adapters from Nvidia.

The main thing you need to pay attention to when buying video cards is the declared memory and core frequency. The higher these indicators are, the more calculations per second the video adapter will do.

The cooling system is also an important factor on which not only the stability of your farm’s operation, but also its durability will depend. Overheated equipment will not allow the chip to turn on at full power, and a constantly high temperature will lead to physical destruction of the board.

If you are comfortable with technology, take a video card that has the potential for so-called overclocking. With proper settings, you will be able to increase computing power by up to 40%, which will significantly reduce the time it takes to mine your first bitcoin.

The video cards shown in the table are the most suitable for mining in 2017.

Motherboard

When choosing a motherboard, you need to pay attention to the number of PCIe slots. In order for you to assemble an effective farm, the board must have at least 4 such slots. The ASRock H81 PRO BTC model is considered the most suitable for mining.

power unit

Before you buy a power supply, you will need to calculate how much energy the future farm will consume. Each device has a mark in its characteristics that indicates its energy consumption. Experienced people who know where to get bitcoins and have been successfully mining them for years recommend buying power supplies that have received an 80 Plus Bronze certificate. They are more reliable.

RAM, HHD and CPU

When choosing RAM, the main criterion is its speed. The best option for a farm is one 8 GB stick (1600 MHz). For stable operation, a hard drive with 60 GB of memory is enough. You need to buy a high-frequency processor that is supported by the motherboard.

Raisers

Raisers are extension cords that are not used when assembling desktop computers. They are needed in order to simultaneously connect all graphics adapters to the motherboard. There are two types of risers:

• on trains;
• USB 3.0.

The best ones are those that connect via USB. They are more stable during the mining process.

Programs

Having purchased the equipment and secured it in a special frame that you can make yourself, you need to download and install the operating system. Then register a BTC wallet. You will be assigned a unique address to which bitcoins will be withdrawn.

From the BTS wallet, money can be withdrawn to any other payment system, for example, WebMoney. Recently, WM has a new title sign - WMX (webmoney-bitcoin). This event caused a huge amount of controversy in various forums where issues related to mining are discussed. This reaction is explained by the fact that before WebMoney, Bitcoin did not have support from the largest providers of electronic payment systems.

After installing the wallet, download and install a special mining program that will allow your farm to start working. However, it should be remembered that independent Bitcoin mining is a rather complex process that requires enormous power. In order to speed up problem solving, most amateur miners gather in groups called pools.

Cloud mining

If you don’t have time to assemble a farm or don’t have enough budget, rent part of someone else’s power and mine military hardware! This is exactly the kind of earning scheme offered by cloud mining services. Such sites are usually owned by large companies that purchase professional equipment in large quantities, ensuring uninterrupted power supply and constant access to the Internet.

On the site provided for cloud mining, there is a huge list of pools in which people combine rented power to process information and solve problems more efficiently.

Also, some resources offer a referral system for passive income or a one-time bonus upon registration. The most resourceful users use the “donated” funds as a startup, thus receiving free bitcoins.

Among the many projects that rent out their own capacity, Telcominer can be highlighted. This is a very young resource that appeared in the spring of 2017. It boasts a rather nice design and rich functionality. After registration, a bonus will be available in the form of 15 GHs of power, which is provided for a month.

VTS cranes

Bitcoin faucet is a site where you can get free bitcoins, or rather part of them (Satoshi) after certain periods of time. In this case, you will have to perform some simple action, for example, enter a captcha. Such resources exist due to advertising, which is placed in videos or banners located on the main page of the site. Some BTS faucets have internal sweepstakes (lottery) and draw additional satoshi among all active users.

1. freebitco. You can “open” the faucet every hour and receive from 45 to 45,000 satoshi.
2. ADBTC. You can withdraw satoshi every 30 seconds. Bonus - fixed (69 satoshi).
3. BonusBictoin. Once every ten minutes you can perform a certain action, for which you will be awarded 50 satoshi.

Now you know where to get Bitcoin without having powerful equipment or funds for investment.

Cryptocurrency exchanges

Most likely, every person who has thought about making money on the Internet at least once in their life has heard about stock exchanges. Many purchase and sale transactions are regularly carried out on these trading platforms, and people who know how to correctly forecast the exchange rate of a particular currency are able to earn a fortune. After digital currency caused a real stir in society, cryptocurrency exchanges began to appear, offering to buy or sell bitcoins on their platform.

Money protected by a cryptographic signature is a fairly profitable asset. Selling bitcoins or converting them into other currencies is a small matter, because the demand for them is incredibly high. But the most interesting thing is that the cryptocurrency rate is very volatile. It can plummet and then skyrocket in just a few hours. If you find the right moment, you can buy Bitcoin profitably.

Where to trade is everyone's business. However, when choosing a trading platform, you should pay attention to the following nuances:

• Analytical tools. In order to make money on the difference in Bitcoin exchange rates, you need to learn how to analyze the state of the market. Without the help of auxiliary tools, such as charts, Japanese candles, glass, etc., this will be impossible to do. When choosing an exchange, first of all evaluate its functionality.
• Daily turnover. This information can tell you a lot about the exchange that interests you. The greater the turnover of banknotes on the trading platform, the more promising it is for making money.
• Total amount of cryptocurrency offered. On a proven exchange, which creates ideal conditions for making transactions on its own platform, there are always many traders and those who decided to sell their BTC. This is where you will have more tools to make a profit, which will directly depend on how much you are willing to invest.
• Help Desk. You should not waste time working with a service whose support team does not communicate with customers or resolves issues very slowly. It’s better to save your nerves and money, because there are many sites where you can buy Bitcoin quickly and without all sorts of pitfalls.

How to get “real” money for mined cryptocurrency

We looked at the main ways you can earn bitcoins, the rate of which is constantly growing. Today the cost of 1 military vehicle varies between $2300-2500. But how to hold honestly earned money in your hands? To do this, we will need to use the services of Bitcoin exchangers.

In order to exchange cryptocurrency for fiat money, you need to have a debit card from any bank or an electronic wallet registered in one of the payment systems. Then we go in search of the Bitcoin exchange itself, of which there are a lot today. Before converting bitcoins to another currency, analyze the resource you like, study all the conditions for making transactions, read reviews of people who have used the services of this site. Also pay attention to the rate and commission so as not to sell yourself short. Let's look at the most popular resources among users that work with payment systems such as Yandex.Money, PayPal, QIWI, WebMoney:

• X-PAY;
• 60SEC;
• XCHANGE;
• EXMO;
• PROSTOCASH;
• WMGLOBUS;
• BLUE;
• LIVECOIN;
• BESTCHANGE;
• ALFACASHIER.

All these services have been providing their platforms for currency exchange for more than one year and are the most reliable. They also have a very user-friendly interface, which even a beginner who doesn’t know how to cash out bitcoins can quickly figure out.

Cryptocurrency can be sold without involving third parties who charge a commission for their services. However, in this case, no one will give you any guarantee that the transaction will be safe. Despite the fact that Bitcoin is the most secure currency, sometimes it is better to play it safe.

What is Bitcoin in simple words?

Bitcoin is the money of the new era. In 2008, a man named Satoshi Nakamoto proposed Bitcoin as an electronic payment system as opposed to banks. All transactions on the network are anonymous, meaning there is no need to pay taxes. The Bitcoin code is open to everyone, but it is impossible to track who exactly the money was sent to. Banks charge enormous commissions for their transfers, especially when sending money to another country.
Bitcoin transfers are carried out without paying large commissions, you can send any amount, anywhere in the world, the money arrives in the recipient’s account within 20-30 minutes depending on the network load, all transactions on the network are not controlled by anyone. Agree, Bitcoin compares favorably with the monetary system in that it is much more convenient for ordinary people to transfer money between themselves without intermediaries.
Bitcoin runs on Blockchain technology, which is a decentralized network. The monetary system works thanks to instructions from the center, that is, from the government. If the center has any problems, the entire system stops working. If you turn off the main office of any payment system (for example, WebMoney), the entire system will stop working, since all the information necessary for work will become unavailable due to the closure of the center.
Blockchain works in such a way that each network participant is its center, which stores all information on its computer through constant synchronization with the network. Therefore, disconnecting one or more participants cannot disrupt the network. The decentralized system allows you to avoid freezing or blocking of participants’ funds; it is impossible to cancel payments within the system; only you manage your funds. Read more about Blockchain.
Copying or counterfeiting Bitcoins is impossible in principle, since all information about the origin of a particular coin is recorded in the blockchain. In the same way, it is impossible to falsify information in the Blockchain itself, since information about the entire network is held by all participants. Blockchain exists as long as there is at least one computer with information about the network. As you can see, Bitcoin is a reliable, secure and counterfeit-proof payment system.

Bitcoin is often compared to gold. Bitcoin is limited in quantity and difficult to mine, just like gold. 21 million coins is the Bitcoin limit; more than this amount cannot be produced by miners. As of mid-January 2018, almost 18 million Bitcoins have been mined. Every year the conditions for Bitcoin mining become more difficult; according to estimates, the last Bitcoin will be mined in 2039.
Satoshi is one hundred millionth of a Bitcoin. Since the supply of Bitcoin is limited, it was decided to split the whole number of coins into small parts. One Satoshi is the minimum price of Bitcoin, something like one kopeck in the Russian ruble monetary system. For convenience, we present to your attention a list of Satoshi symbols in relation to Bitcoin: How Bitcoin is created. New Bitcoins are mined by so-called miners thanks to the computing power of computers. To create a new block to record a transaction, the computer must solve a mathematical problem. The more powerful the computer, the faster it solves problems and, accordingly, the faster blocks are created. Creating new blocks brings rewards to miners in the form of Bitcoins. That is, new Bitcoins are created by the network after each computer solves a mathematical problem. The owner of the computer that solves the problem becomes the owner of new Bitcoins. The reward for creating one block is 12.5 Bitcoins. Thus, anyone can participate in the process of creating Bitcoins. Why is Bitcoin rising in price? The coin is constantly becoming more expensive due to many factors. The first is popularization. We have already seen how unique and convenient the system on which Bitcoin works is. The more people know and understand how Bitcoin works, the more expensive it is as more and more of it is bought. Secondly, this is a unique technology that makes exchanging money easier, faster and more convenient. Third, the active introduction of Blockchain technology into the financial sector of the world economy.

I think Bitcoin's growth will continue. I believe Bitcoin is undervalued at the moment. Bitcoin is actually money that only gets more expensive over time. If all over the world any currency is created in such a way that it is subject to inflation and becomes cheaper every day. On the contrary, Bitcoin is a deflationary currency. Over time, Bitcoin only becomes more expensive. Many experts believe that Bitcoin can make the global financial system better, faster and more convenient. Bitcoin is not a bubble or a financial pyramid; behind it there is a unique technology for exchanging money. We recommend that after reading this article, you buy yourself a certain amount of Bitcoins, not necessarily a whole Bitcoin, the coin can be bought in thousandths or millionths (100 thousand satoshis cost approximately $13). And you will see for yourself how, after a short period of time, investing in Bitcoin will bring you profit. You can buy Bitcoin at the best rate on a crypto exchange

I don’t know about you, but when I cash out Bitcoin or any other currency, I pay attention to 2 parameters: the security of the transaction and the best exchange rate. But the fact is that many beginners think only about the best course, forgetting about the risks.

In this article I will talk about how to exchange Bitcoins at the best rate and even compare the rates of different services. In addition, I will explain what to be wary of when cashing out cryptocurrency and what risks await users.

Important! If you do not plan to cash out large amounts of Bitcoin and are not afraid of card and tax blocking, then you can skip the security section. Click and go straight to withdrawal methods.

Do you want to earn cryptocurrency? Watch me grow my Bitcoins. First goal: 10 BTC on the exchange!

SEE HOW I EARN

Exchange security. How to cash out Bitcoins in Russia without risk?

Usually, when they talk about the safety of exchanging Bitcoins for rubles, they mean the risks that the exchanger or exchange will steal your money. But, in fact, exchangers work very professionally, and your money is more likely to be blocked by a regular bank.

Blocking of funds by the bank.

Russian banks are forced to block suspicious transactions due to Federal Law 115 (“On combating the legalization (laundering) of proceeds from crime and the financing of terrorism”), otherwise they risk losing their license.

Thus, if your receipt seems suspicious, the bank will block your funds and require you to provide evidence that the money was earned honestly.

At the moment, cryptocurrency is not regulated by law, so banks play it safe and often do not take the client’s side. They can permanently block your card, account, and sometimes money. There is also a chance that they will ask you to pay taxes on the amount you withdraw.

In itself, withdrawing cryptocurrency from your wallet is not against the law, but if you are withdrawing money by exchange (through an exchanger or a private money changer), then think in advance what story you will tell the bank employee and what evidence you can provide.

If you withdraw cryptocurrency from an exchange, then, at first glance, you are acting according to the law. But some banks may consider trading on a cryptocurrency exchange to be a form of entrepreneurship. Even if you are registered as an individual entrepreneur, it is better to clarify in advance whether the bank allows clients to use their personal plastic cards for business activities. If not, your card will be blocked, but the money will be returned through the cashier.

Thus, according to banks, you should withdraw bitcoins through the exchange to the individual entrepreneur’s current account. In this case, there will be no questions for you.

How to protect your income from blocking?

• Do not transfer large amounts at once. Do not withdraw 500 rubles at once, spread the withdrawal over a week or two. Better make 10 transactions of 50 tr.
• Use multiple cards. Get cards in several banks and distribute transactions between them. You can also connect cards of friends and relatives.
• Don't cash out. If you transferred money to a card and immediately withdrew it, this is a signal to the bank that you are cashing out. Let the funds sit for a couple of weeks, transfer them to a deposit, and pay with this card in stores.
• Become a good customer for the bank. As practice shows, if a client has a bank credit card, a loan, a deposit, a certain status (privileged client), etc., then the risk of blocking the card is reduced significantly.

In general, if you make several withdrawals per month for amounts not exceeding 50 thousand rubles, then the risk of blocking is very low. As the lump sum amount and monthly withdrawal amount increase, the risks also increase.

Is it legal to cash out Bitcoin in Russia in 2019?

As you know, our country is not particularly fond of cryptocurrencies. Therefore, before you cash out Bitcoin in Russia, you need to find out how safe it is. Will you be subject to any charges?

If you have heard the joke about Schrödenger’s cat (who is both alive and dead at the same time), then you will easily understand the status of cryptocurrency in Russia. It is neither prohibited nor permitted.

That is, there are no laws regulating Bitcoin. The legislation is still under development.

Therefore, even if you cash out Bitcoin directly into cash rubles or dollars, you have nothing to fear. You are not breaking any law.

But how can this be? We heard about criminal cases for cashing out cryptocurrency! For example, this is a high-profile case.

Yes, there were several high-profile news about arrests for cashing out Bitcoin. But the reason for the arrest was always not the fact of the exchange itself, but another crime. For example, selling drugs for cryptocurrency.

Regarding the case described above, people were accused of illegal banking activities. This article definitely won’t harm you.

Therefore, if you are an ordinary person (not a legal entity) and want to withdraw Bitcoin by exchanging it for fiat currency, then you have nothing to fear.

Do I need to pay taxes when cashing out Bitcoin?

Let's start with that. that the government really wants you to pay more taxes. Therefore, it is understood that you must pay tax on any income.

Let's say you bought 1 Bitcoin for $5,000, sold for $10,000, and made a profit of $5,000. You must pay income tax on this money, that is, 13%.

Accordingly, this income must be indicated in the declaration. And the declaration itself has been submitted to the tax office.

But firstly, cryptocurrencies are anonymous. Therefore, it is almost impossible to track where the money came from and what the basis for the transfer was. And if you withdraw Bitcoins directly into cash, then government authorities know nothing at all about your income.

Secondly, it is impossible to prove that this is income (of course, unless you tell the tax authorities about it yourself). You can always say it's a loan or gift, which is tax-deductible.

Thirdly, it is not clear how to calculate income. For example, you cashed out Bitcoin and received $5,000 for it. It seems like you have to pay tax on profits, right?

What if you bought it for 10,000? This means you are at a loss and don’t have to pay anything. But it’s not clear how you can prove this to the tax authorities. And it is even less clear how the tax authorities can prove the opposite.

While the legislation is not yet ready, the tax authorities show little interest in income from cryptocurrency.

Should I pay taxes on withdrawing Bitcoin or not? Everyone decides for themselves. Do I pay taxes on cryptocurrency? Yes, I'm crying.

Offshore card.

Many users think that if they use an offshore card, then they are 100% protected from taxes. In fact, this is not true.

Indeed, a bank in Panama will not transmit tax information about your account to the Russian authorities. But Visa and Master Card payment systems will transfer.

In general, as far as I know, in Russia there is no tax police dealing with individuals who would monitor your transactions. But if they are interested in you, they will easily receive information about transactions on your offshore card.

1. How to withdraw Bitcoins from a wallet to a bank card?

There are 2 popular services with which you can withdraw Bitcoin to your bank card: BestChange and LocalBitcoins. Let's immediately compare where the exchange is more profitable.

At the time of writing, the Bitcoin rate was 670,941 rubles according to the coindesk.com exchange.

Rate according to coindesk.com.

On BestChange, when trying to exchange Bitcoins to a Sberbank card, the maximum rate was 675,659 rubles.

Monitoring exchangers.

At the same time, the rates on LocalBitcoins turned out to be more profitable. For one Bitcoin they offered more than 700 thousand rubles.

Localbitcoins exchange rates.

You need to keep in mind that the course is constantly changing. Moreover, it is influenced not only by the exchange rate of the cryptocurrency, but also by the difference in supply and demand for a particular service. For example, if at the moment a surge in activity began and people began to intensively buy Bitcoins through exchangers, but at the same time they began to sell less, then the exchange services will make the Bitcoin buying rate much higher than the exchange rate, but the selling rate will also raise higher than the exchange rate, that is, it will be very beneficial to those who want to exchange this cryptocurrency for rubles.

1.1. Withdrawing Bitcoin to a Sberbank card through monitoring BestChange exchangers.

This service combines the best online exchangers. An exchanger is a service where you can exchange one currency for another by paying a small commission. For example, you are translating to Ivanova I.I. Bitcoins go to his wallet, and he transfers rubles from his card to yours.

All exchange services are sorted here by the best exchange rate. It also shows the current amount available to each exchanger and reviews about it.

How to change Bitcoins to rubles using BestChange?

1.2. Withdrawal of Bitcoins into rubles through LocalBitcoins.

This is a service that, in its operating principle, resembles an exchange. He acts as an intermediary between 2 people, one of whom wants to sell Bitcoins and the other wants to buy. On LocalBitcoins you will find not only offers from professional exchangers, but also from ordinary people.

First, let's talk a little about security. If you sell Bitcoins, then you don't need to worry about security at all. The fact is that the exchange of Bitcoins takes place through the service: first, the seller transfers them to a wallet in LocalBitcoins, then after the exchange starts, the cryptocurrency is blocked, and after payment is confirmed, it is automatically transferred to the buyer’s account.

That is, your Bitcoins will not be transferred to another person until you see the money on your card and click on the “Confirm receipt” button.

In addition, each service participant has reviews, ratings, percentage of successful transactions, etc. People spend a lot of effort and time to improve their reputation and will not cheat anyone for the sake of a few thousand rubles. If you are a newbie, you will have limited exchange amounts available until you gain enough reputation.

How to exchange Bitcoin for rubles using LocalBitcoins?

Step 1. Go to the Localbitcoins.net website, go through the registration procedure and confirm your E-mail. It is advisable to confirm your phone and identity, as well as set up two-factor authentication.

Step 2. Top up your internal wallet. To do this, click on “Wallet”, then on “Get Bitcoins”. After that, transfer the required amount to the address shown below. After the transfer, the money will appear in your internal wallet.

We replenish the internal wallet.

Step 3. Go to the “Sell Bitcoins” tab, click on “Show more” and select “Transfers through a specific bank”.

Go to the “Sell Bitcoins” tab

Then select the user you like (pay attention to reputation, percentage of successful transactions, exchange amount) and click on the “Sell” button.

Step 4: Submit a deal request. Enter the amount you want to change and click on the big green button. It is advisable to write a message to the seller, say hello and indicate the card for transfer. But this can also be found out in the process of communication.

Step 5. After the seller transfers the money to your card, you need to confirm receipt of the money and the frozen Bitcoins will be transferred to his account. After the transaction, rate the seller and leave a review.

1.3. Withdrawing money from a Bitcoin wallet through a Telegram bot.

These bots work on the same principle as the LocalBitcoins website. Only all operations take place in the Telegram messenger interface. The rate here is more profitable than on BestChange and about the same as on LocalBitcoins.

The exchange occurs in the same way as in the previous service:

• Register in Telegram (if you are not registered) and add the BTC_CHANGE_BOT (BTC banker) bot. Select the Russian language and agree to the terms.
• Go to your wallet and transfer Bitcoins to your internal address.
• After the cryptocurrency is displayed in the wallet, click on the “Sell Bitcoins” button and select the desired bank.

We sell Bitcoins through a bot.

• Now you will see a list of people who are ready to buy your Bitcoins for rubles. By clicking on each of them, you can view information about each seller.
• After we have chosen a seller, we begin the transaction. To do this, we follow the bot’s requirements: indicate the exchange amount and details.
• After the seller transfers the money to your card, you will need to confirm the receipt of money and the Bitcoins will be sent to the seller's wallet.

1.4. Withdrawing Bitcoins to a card via Webmoney.

This method has several advantages. Firstly, this is a more favorable rate (read more about this below). And, secondly, withdrawal by bank transfer is available. This withdrawal method is considered official by Webmoney, so you can withdraw relatively large amounts without fear of account blocking.

Keep in mind that for a transfer to a card you will have to pay a commission of 2-3%: 1-2% per transaction, plus the standard WebMoney commission - 0.8%. For a bank transfer - 15 rubles plus 0.8%, transfer period from 1 to 5 days.

How to withdraw Bitcoins into rubles to a Sberbank card using Webmoney?

• To transfer small amounts, it will be enough to obtain a formal certificate. But, if you plan to frequently withdraw money through WebMoney, it is recommended to obtain an initial certificate. By the way, this can be done through the State Services website.
• We create a WMX wallet - this will be your Bitcoin wallet in the Webmoney service. Click on the top up button and see the address to which you need to transfer Bitcoins.

We transfer Bitcoins to WebMoney.

• After transferring Bitcoins, they will appear on your balance. Click on the “Exchange Funds” button. In the window that appears, change WMX to WMR. Now you have rubles on WebMoney and you need to withdraw them.

Select the withdrawal method.

• Now you can withdraw money to any card by paying a 2% commission. But such an exchange will be carried out through the internal WebMoney exchange, so this method is not so reliable. The second option is to link the card to the WebMoney service.

Withdrawal conditions.

• To make a withdrawal by bank transfer, go to your WMR wallet and click on the “Withdraw Funds” button and select “Bank Transfer”. Then you will need to enter your account details: BIC, Corr. account, current account number, bank INN and payment amount. After that, check and pay this invoice.

1.5. How to withdraw money from a Bitcoin wallet through exchanges?

There are not many exchanges that allow you to withdraw rubles to a plastic card or by bank transfer, and in general, not all cryptocurrency exchanges work with fiat money.

There is one exchange that is often used to withdraw rubles to a card. It's called EXMO.

Using EXMO as an example, you can see what conditions await those who decide to cash out Bitcoin in this way. The commission is not particularly large - 3% + 50 rubles. But the limits prevent you from working with really large amounts: 15,000 rubles for one withdrawal and 600,000 rubles per month.

Honestly, I trust exchangers and Webmoney more than such exchanges.

How does the withdrawal take place?

• Transfer Bitcoins to an exchange. To do this, you need to send the currency to your internal exchange wallet.

We transfer Bitcoin to the exchange.

• Exchange them for rubles. This can be done either using the exchange itself or using an internal exchanger.

We exchange it for rubles.

• Withdraw rubles to the card. There are several withdrawal methods. In our case, this is a bank transfer and withdrawal to a card. As you can see, on EXMO, withdrawal to a card is more profitable.

We order withdrawal.

Do not forget that in order to fully use all exchange tools, you must pass verification.

The two most popular BTC withdrawal directions. Where are the best courses?

Yes, now you know a sufficient number of tools with which you can withdraw Bitcoin into rubles or dollars online. But which one is the best? Where is the best rate?

Now you don’t have to go to all these services and compare courses. I did it for you.

I compared all the conditions for the most popular exchange directions: BTC - Sberbank and BTC - Qiwi. Let's see what I got.

How to withdraw Bitcoins to a Sberbank card at the best rate?

Let's see in practice what is the most profitable way to withdraw Bitcoins to a Sberbank card? To do this, we compare the courses of the most popular instruments and choose the best one.

Sberbank is the most popular Russian bank. Most citizens have a card from this bank, so this withdrawal method can be considered the most convenient and popular.

It is now February 2019. According to coinmarketcap.com, the dollar exchange rate is $4,190.

Rate according to coinmarketcap.com.

The dollar exchange rate is 65.51. So 1 BTC costs approximately 274,500 rubles.

Dollar to ruble exchange rate.

Let's say I want to exchange 0.1 BTC to a Sberbank card at the best rate (I took this amount for a more convenient account). How can I do this most profitably and not lose extra money on the course and commission?

To do this, compare all the conditions and choose the best:

• BestChange.

Exchange rates for BTC to Sberbank on Bestchange.

This service shows that you can withdraw money from Bitcoin to a Sberbank card at the rate of 272,065. That is, for 0.1 BTC I will receive 27,206 rubles on the card.

• localbitcoins

Exchange rates for BTC to Sberbank on Localbitcoin.

On Localbitcoins the rate is 274,000. This means that when I withdraw 0.1 Bitcoin, I will receive 27,400 rubles to Sberbank.

• Telegram bot.

Conditions for exchanging BTC to Sberbank in a Telegram bot.

BTC_CHANGE_BOT offers to change 0.1 BTC to 26,548 rubles.

• Exchange EXMO.

BTC to Sberbank exchange rate on the stock exchange.

The exchange rate is 270,000 rubles for 1 Bitcoin. You also need to take into account the 3% commission for withdrawal. That is, when exchanging 0.1 BTC to the card, I will receive 26,190 rubles.

Results for Sberbank:

So what is the most profitable way to withdraw money from a Bitcoin wallet to a Sberbank card?

Comparison of BTC rates - Sberbank for February 2019.

As you can see, the best rates are offered by BestChange and Localbitcoins. Worst exchange rate on the stock exchange.

How to withdraw Bitcoins to Qiwi at the best rate?

The second most popular direction for withdrawing BTC is the Qiwi wallet.

A large number of people use this payment system. Internal transfers can be made here without commission. There are Qiwi terminals all over the country where you can top up your account.

I myself actively use this payment system. I even have their plastic card.

Let's see what is the most profitable way to withdraw Bitcoins to a Qiwi wallet?

To do this, compare exchange rates. Let me remind you that the current exchange rate for today (February 2019) is 4190 dollars or 274,500 rubles per 1 BTC.

• BestChange.

BTC to Qiwi exchange rates on Bestchange.

According to the sorting results, the best rate for withdrawing Bitcoin to Qiwi turned out to be 271,280. That is, when exchanging 0.1 BTC, 27,138 rubles will come to my wallet.

• localbitcoin.

Exchange rates for BTC to Qiwi on Localbitcoins.

Here the rate is 274,500 rubles for Bitcoin. So you can exchange 0.1 BTC for Qiwi for 27,450 rubles.

• Telegram bot

Conditions for exchanging BTC to Qiwi in a Telegram bot.

BTC_CHANGE_BOT offers to change 0.1 BTC to 26,403 rubles.

• Exchange EXMO.

BTC to Qiwi exchange rate on the exchange.

As I wrote above, the exchange rate is 270,000 rubles per 1 Bitcoin. And if we take into account the 3% commission for withdrawal, then when exchanging 0.1 BTC to the wallet I will receive 26,190 rubles.

Qiwi results:

In this exchange direction we were also able to find out the best exchange rate.

Comparison of BTC - Qiwi rates for February 2019.

As you can see, the best Bitcoin withdrawal rate on Qiwi is offered by Localbitcoins. Moreover, the rate here is equal to the official one. The most unfavorable rate is again on the EXMO exchange.

2. Anonymous debit cards.

Now each payment system is trying to issue its own plastic card linked to an internal account. They usually make it possible to pay for purchases in regular stores or online without commission, which is very convenient - you don’t have to cash out at all. It’s so convenient that my wallet is already swollen with different cards.

The idea is simple and clear. You receive money on Qiwi - you pay with a Qiwi card, you receive money on Yandex Money - you pay with a Yandex Money card, you receive money on AdvCash - you pay with an AdvCash card (which will soon be blocked for everyone who does not live in the EU).

Well, Bitcoin wallets did not lag behind other payment systems and issued plastic cards linked to the balance of these wallets. These cards can be used to pay in online and physical stores, as well as withdraw money from ATMs. Bitcoins are converted into the card currency at the current exchange rate. But the problem is that almost all such cards are available only to residents of the European Union.

The remaining option is to transfer Bitcoins to one of the anonymous payment systems, convert them into dollars and withdraw them through the card of this payment system through an ATM. But here, too, the same problems await us as in the case of Bitcoin cards. For Russians, most of these cards have already become unavailable for order, and the issued cards will stop working in January 2018.

Most likely, in the near future all anonymous bank cards will be prohibited for residents of Russia. But for now there remains the possibility of withdrawing Bitcoins in this way. For example, at the moment, Russians still have access to the Money Polo card, which works with the OKPay payment system.

Withdrawing through an anonymous card will require you to pay a relatively high fee. The commission is usually paid for transferring money to a payment system wallet, transferring money to a card and for withdrawing from an ATM. If you plan to withdraw money in rubles, then be prepared to pay also for currency conversion.

As you already understand, money is withdrawn in the following way: transfer money to the payment system (officially or through exchangers), put it on the card and withdraw it from an ATM in the card currency or rubles.

3. Withdrawing Bitcoin from your wallet into cash rubles.

There is another way to cash out cryptocurrency. The exchange is carried out without the participation of banks, that is, directly into cash through an exchanger.

On the one hand, this is convenient, since the bank will not be able to block the transaction, and the tax office will not receive information about your income. On the other hand, you expect high commissions and high risks.

3.1. How to withdraw Bitcoin from your wallet through an exchanger.

There are exchangers that are willing to exchange your cryptocurrency for cash. Almost all of them are concentrated in large cities: Moscow, St. Petersburg. But if you are going to change a really large amount, then this is not a problem. For this, you can go to another city, and for a fee the courier will come to yours.

Some exchangers offer an anonymous exchange service. That is, you transfer Bitcoins and receive information about the place where the bookmark with your money is located. But I think you understand how risky such an idea is. The money may not be in the indicated place and then you will not prove anything to anyone.

How to safely cash out Bitcoin in Russia?

• Go to the website of the exchanger that offers the service of exchanging for cash. Say how much you want to exchange, or leave a standard request.
• After some time (from several hours to a day, depending on whether the required amount is in the cash register), you come to the exchanger’s office and transfer Bitcoins to the specified address in the presence of an operator.
• After several confirmations of the transaction, you take your money.

The commission for such services starts from 3-4%. The exchanger can be found, for example, on the BestChange website. Just indicate the appropriate exchange direction: Bitcoin - Cash.

Please note that the rate may be less favorable than when exchanging for a bank card.

Withdrawal rate to a bank card.

Cash withdrawal rate.

Is such an exchange legal?

At the moment, according to our legislation, Bitcoins are incomprehensible candy wrappers from the Internet. And the exchange of candy wrappers for money between two individuals is completely legal.

Above, I already talked about the high-profile detention in Russia of a group of people involved in cashing out Bitcoins. But these people were detained for illegal banking transactions, which is not a threat to you. The exchange of Bitcoins itself does not entail punishment.

3.2. Via WebMoney.

Above, I already wrote about how to transfer Bitcoins to a WebMoney wallet. Only in this case, we withdraw money not by card, but through the official exchangers of this payment system.

Advantages of official WebMoney exchangers:

• There are more of them. If regular exchangers are located only in Moscow and St. Petersburg, then WebMoney exchangers are located in almost all cities with a population of over a million.
• Higher trust. Such exchangers are opened only with the permission of the WebMoney payment system and are controlled by it. If poor quality services are provided, WebMoney may revoke the exchanger's license.
• Agreement for the provision of services. An agreement is concluded with clients before the exchange takes place. Accordingly, in this case you will be protected from potential fraud.

How to make an exchange?

• Go to the WebMoney website, find a page with information about official exchangers and enter the city you are interested in. If there is no exchanger in your city, then check the cities closest to you.

Check if there are exchangers in your city.

• We leave a request for an exchange on the exchanger’s website.
• We receive a service agreement signed by the exchanger.
• We transfer money to the specified details.
• At the specified time, we come to the office and collect the cash.

Instructions from one of the exchangers.

3.3. Withdrawal through private money changers.

On the LocalBitcoins website, on cryptocurrency forums, in the corresponding Telegram bots, etc. you can find people who are engaged in exchanging Bitcoins for cash. Here you will again be faced with the fact that most of them will be concentrated in large cities. I hope I don’t need to tell you that in advance You cannot transfer money. It is best to make the exchange directly on the spot, for example, by meeting in a cafe.

4. Withdrawing money from Bitcoin wallets through ATMs.

Another way to cash out Bitcoins that cannot be ignored is ATMs. Again, this method is currently only available to those who live in large cities.

At the moment, this withdrawal method is not very popular. Firstly, they ask for a large commission for cashing out: up to 11%. Secondly, it takes a lot of time as you have to wait for the transaction to be confirmed.

Comparison of withdrawal rates.

In order to check what is the most profitable way to cash out Bitcoin into rubles, I decided to compare exchange rates on several services at the same time.

At the time of the experiment, Yandex showed the Bitcoin rate of 967,650 rubles per 1 BTC (according to coindesk.com).

Bitcoin to ruble exchange rate.

1 Step. Now, let’s say that we will withdraw this cryptocurrency through exchangers. Then let's look at the rate on BestChange.

Courses on Bestchange.

As you can see, the most profitable exchangers offer from 920 to 926 thousand rubles per 1 BTC. The best rate at that time was 926,960 rubles.

Step 2 Let's see what LokalBitcoins has to offer. The rate here is usually higher.

Courses on Localbitcoins.

As expected, I was pleased with the course. You can exchange Bitcoins at a price of 980 - 991 thousand rubles per 1 BTC. The best rate is 992,003 rubles.

Step 3. Now let's try to make an exchange through the EXMO exchange. For example, let's use the standard exchanger of this service.

Exchange rate on the EXMO exchange.

The exchange rate is 987,948 rubles per 1 BTC. Decent rate, but do not forget that you will have to pay 2% for withdrawal. It turns out: 978,948 - 2% = 959,369 rubles - this is exactly how much you will receive on the card after paying the commission. This will be the real course.

Step 4. Let's see what WebMoney offers. Bitcoins are exchanged for rubles on the internal exchange of the payment system.

Exchange rates on WebMoney.

Here we see rates from 1021 to 1034 thousand rubles per 1 BTC. Let's take for example the rate of 1,030,000 rubles. For withdrawal by bank transfer you will pay a commission of 0.8%, that is, 1,030,000 - 0.8% = 1,021,760 rubles. When withdrawing to a card, the commission will be 2.3%: 1,030,000 - 2.3% = 1,006,310 rubles. When withdrawing through an exchanger, the commission will be from 3.8%. Let's do the math: 1,030,000 - 3.8% = 990,860 rubles.

Total.

As you can see, the best exchange rate is currently offered by WebMoney. Even withdrawing to cash through official exchangers is more profitable here than cashing out to a card. But, you need to keep in mind that to fully work with this payment system you need to undergo verification.

Frequently asked questions.

In this section, I decided to collect questions on the topic of Bitcoin withdrawal that are asked most often.

1. What is the most profitable way to withdraw money from WebMoney if bank transfer is not available?

The rules for withdrawing money from WebMoney change very often. Those methods that work now may become unavailable in the near future. At the same time, at the moment, WebMoney has the best exchange rate for Bitcoins to rubles (among the methods we discussed above), so it is profitable to use this payment system.

Firstly, if you withdraw money through official exchangers, you will pay a commission of 3.8-4.8%. But this will still be one of the most profitable ways to withdraw Bitcoin. There is another convenient way to withdraw money from WebMoney in Russia: bank cards of telecom operators.

For example, Megafon or Beeline cards. You simply top up your phone balance and the money automatically appears on the card linked to the number. You can get such a card at the offices of mobile operators. It is not personalized, so you will spend no more than 5 minutes to receive it.

The downside is the restrictions on replenishment. Only 6,500 rubles per day (that’s about 200,000 rubles per month). At the same time, the commission for replenishment is only 0.8% (standard WebMoney commission). Not suitable for large sums, but quite suitable for ordinary use. ATM withdrawal fees start at 3%. You can pay with this card without commission.

2. What method of withdrawing Bitcoins do I use?

I used to withdraw Bitcoin through exchangers. Obviously, there was not the best course, but, nevertheless, this is the most convenient way. And the Bitcoin rate is growing so quickly that you don’t even have to pay attention to their commission.

So the search for another withdrawal method was not due to the exchange rate, but more as an insurance against blocking of receipts by banks. Therefore, now I have settled on WebMoney and received the necessary certificate to work with large sums.

I got myself a Megafon card and am withdrawing money to it. This is very convenient for me, because I always pay with a bank card. Replenishment of the card is limited to 200,000 rubles per month - this amount is quite enough. If I need to cash out a larger amount, I will use an official exchange office, since they are available in almost every major city.

3. How to withdraw Bitcoins to Qiwi wallet?

Withdrawing Bitcoins to Qiwi is not much different from. You can use the same tools.

• Withdraw Bitcoin to Qiwi using BestChange. Indicate the exchange direction “Bitcoin - Qiwi” to the table. Exchangers will be sorted by the best rate and all you have to do is go to one of them and make an exchange. You will transfer Bitcoins to the specified Qiwi wallet, and in return you will receive rubles or dollars to your wallet.
• Withdraw Bitcoins to Qiwi using LocalBitcoins. Immediately on the main page of the site you will see offers to purchase your Bitcoins for rubles or dollars of the Qiwi payment system. So you will need to choose the best offer for you and make the exchange.
• Withdrawing money from a Bitcoin wallet to Qiwi using a Telegram bot. The exchange here is carried out in the same way as with a bank card. The process itself is similar to working with LocalBitcoins.

How to withdraw Bitcoins to Yandex Money?

Yandex Money is a popular payment system in RuNet. The process of withdrawing Bitcoins to Yandex Wallet is similar to the process of withdrawing to the Qiwi payment system.

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Before answering the question of why Bitcoin is needed, you need to know what it is. Bitcoin is an innovative technology that is rapidly gaining popularity in society. Every day more and more people learn about this type of earnings, such as cryptocurrency mining. However, not everyone fully understands what Bitcoins are and why they are needed. Let's try to understand this issue, and also try to understand where such demand for digital currency came from.

Where can I pay with bitcoins?

If you are planning to become a professional miner, you must understand that in Russia you will not be able to officially pay with cryptocurrency. For example, if you want to buy a car, real estate, or just a mug of hot coffee, you will have to pay in the state currency - the ruble. No seller will be able to give you a receipt if you are going to pay for the goods with Bitcoin, as this violates current legislation. However, you should not give up on Bitcoin mining ahead of time, as by the end of 2017 the situation may change for the better. The State Duma, with the direct participation of the Ministry of Finance and the Central Bank, is already working on creating a bill that will control existing types of cryptocurrencies and allow every citizen to make transactions using digital money.

This raises a logical question: why do you need Bitcoin if you can’t buy anything with it today? You can buy it, but only on the shadow market. All transactions take place quite quickly, safely and anonymously. You can pay for almost any product on the Internet without any commission or go to one of the resources that offers the exchange of cryptocurrency for money familiar to most people, such as euros, dollars or rubles.

Where does cryptocurrency come from?

Bitcoin is the result of highly complex computer calculations. There are more and more bitcoins every day, which leads to the complication of computational processes and an increase in the time for their processing. At the same time, emissions are constantly decreasing, and in 2021 they will be zero. The limited quantity and difficulty in mining cryptocurrency leads to the fact that the cost of Bitcoin is constantly growing. This is precisely why there is increased interest in this currency.

Why are bitcoins needed and who buys them?

As a rule, citizens of Eastern countries and Europeans are interested in purchasing electronic currency. For example, in Germany you can legally purchase real estate by paying the seller with bitcoins. In Japan, you can have a good meal at a restaurant by paying the bill with cryptocurrency. This is very convenient, because you don’t need to have a lot of time and lose huge percentages for a completed transaction.

However, not everyone is in a hurry to spend their savings, which are stored in the form of digital currency, in this way. Most Bitcoin owners who buy coins from miners, deep down in their hearts, hope that the rate will suddenly rise and there will be an opportunity to sell the cryptocurrency profitably. This is one of the ways to make money using Bitcoins. Thus, many of those who bought the digital currency as soon as it began to gain popularity were able to make a fortune.

How to withdraw digital currency?

Before you start mining cryptocurrency, you need to know how to withdraw bitcoins. There are special wallets for this purpose. In them, you can create an unlimited number of addresses to which a certain cryptocurrency is transferred, in our case, Bitcoin.

In order to make a transaction, for example, buy bitcoins, give the seller of digital coins your wallet address. As soon as a deposit arrives in your account, the system will notify you about it. Now we know why we need a Bitcoin wallet. Let's figure out how to create it on the official website.

How to get a wallet?

Most novice miners spend a lot of time on various resources, looking for information on how to create a Bitcoin wallet on a computer. There's nothing complicated about it. Just go to the official website and download the software client. This method is considered the safest. A wallet installed on a computer allows you to both withdraw bitcoins and store them (accumulate).

It is also worth considering the fact that when installing a wallet from the official website, you need to have access to the Internet, since information about all completed transactions will be downloaded. Available hard disk space must be at least 100 GB.

How to get Bitcoin?

There are several ways to become a happy owner of Bitcoin:

• Mining.
• Buying from hand.
• Exchanges.
• Exchangers.

Most often, people who know why Bitcoin is needed and how to turn it into a source of income use Internet exchangers. However, it is worth considering the fact that each exchanger offers its own conditions for making a transaction. It is necessary to carefully study all available information so as not to run into exorbitant commissions, which inventive entrepreneurs disguise behind an attractive exchange rate. As a rule, many exchangers offer up to $5,000 for Bitcoin, although the real price to the ruble is 1:228,000.

You can mine digital currency yourself using the power of your computer. This method is called mining. As a rule, in order to increase the mining speed, so-called farms are made, which are equipped with several powerful video cards that allow more calculations per second. According to unofficial statistics, a productive farm can pay for itself within a year, and maybe sooner, because the bitcoin exchange rate to the ruble is constantly growing.

The most reliable and easiest way is to buy Bitcoin on one of the major exchanges. But making such a transaction with a bank card will be problematic. Today, all banking institutions under the jurisdiction of the Russian Federation have an extremely negative attitude towards transactions of this kind. No risk management department wants to get involved with gray currency, so they prefer to block such financial transactions, the number of which has increased sharply recently as people have become more aware and know what Bitcoin is for.

Reliable protection

The most common payment method in online stores is a credit card. However, it is worth considering the fact that when “credit cards” were created, no one even imagined that the Internet would appear, much less that financial transactions would be made on it. This is why credit cards cannot be called reliable. By purchasing any product and leaving personal information, you risk losing control over your funds in your bank account.

Despite the rather high cost of Bitcoin, a transaction in this currency does not involve the disclosure of personal data. All you have to do is enter a public and private account. A public account can be known to many people, including the person with whom you are making a transaction. However, private - known only to you. Only when these two keys interact does it become possible to sign a check and make a transfer.

No inflation

The most common problem facing all world currencies is inflation. It occurs when the country's economy is in a critical condition and it is necessary to inject money to maintain it. As soon as the state starts up its typewriter, inflation immediately sets in. Such measures lead to the fact that the monetary unit loses its value by exactly the same percentage as new banknotes were issued.

Bitcoin is reliably protected from such a negative phenomenon, since the number of coins that can be created is strictly limited. According to official data, the maximum number of bitcoins is 21 million coins, which will be mined in 2021.

Anonymity

Sometimes people strive to ensure that no one knows about a particular purchase. Using cryptocurrency for payments, you can reliably hide your personal data. Despite the fact that information about your wallet and how many bitcoins are in it is available to any user, no one will know the real name of the owner. The payment system does not oblige users to enter personal data when registering.

Decentralization

By keeping your money in a bank, you are demonstrating your trust in that financial institution. However, as practice shows, you can only trust yourself, since any bank has every right to dispose of the funds in custody at its own discretion. Situations often arise when you need a substantial amount of money, but you cannot get it either at an ATM or in an office. The procedure for issuing cash is deliberately delayed in order to gain time.

If you have bitcoins, then you are truly independent from the services of all kinds of intermediaries. Your funds are always available, and you can spend them at your discretion at any time.

Access

Unlike other payment systems, a Bitcoin wallet will never deny you access to personal funds. Take a look, for example, at Yandex, which can at any moment decide that you are spending funds incorrectly or limit your functionality, explaining that the security service doubts that the owner is in control of the wallet. In this case, you will have to identify yourself in every possible way, which takes a colossal amount of time and effort.

A few more advantages of cryptocurrency

A huge advantage of using Bitcoin for calculations is speed. Unlike banking services, when paying a check or during a transfer you have to wait several days before the money arrives in your account, cryptocurrency is credited to your balance almost instantly.

Minimum commissions or their complete absence. People who make transactions using credit or debit cards constantly pay some percentage of the amount for the bank's services. Using Bitcoin as a unit of account, commissions are almost never charged, with the exception of some cases.

Afterword

Now you not only know what bitcoins are and why they are needed, but you also understand the principle of operation of the system, and also become familiar with the main ways to make money on cryptocurrency. Unfortunately, no one will give you a guarantee of how successful this digital currency will be even in the near future, so carefully review the possible risks and only then invest your personal savings.