Bitcoin buying-guide

BITCOIN BUYING
GUIDE
ABSTRACT
Bitcoin uses peer-to-peer technology to operate with
no central authority or banks; managing transactions
and the issuing of bitcoins is carried out collectively by
the network. Bitcoin is open-source; its design is public,
decentralized, nobody owns or controls Bitcoin and
everyone can take part.
This guide details on how to buy your 1st bitcoin its
essentially bitcoin buying guide. please note: RBI is yet
to officially recognize the cryptocurrency and had
cautioned users, holders and traders of Virtual
currencies, including Bitcoins.
Shanmugam Karthikeyan
Upnxtblog.com
BITCOIN IS MAKING PEOPLE MILLIONAIRES WHO ARE READY
TO TAKE THAT ONCE IN A LIFETIME CHANCE. I DID..AND HELL
YEAH I AM EARNING!!WHAT ABOUT YOU??
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DETAILS

Bitcoin Buying Guide
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Contents
What is Blockchain ?.....................................................................................................................................2
Introduction to Bitcoin..................................................................................................................................4
Advantages of Bitcoin ...............................................................................................................................5
Disadvantages of Bitcoin...........................................................................................................................5
How to buy bitcoin........................................................................................................................................6
Step#1.Get to know your Bitcoin Exchange..........................................................................................6
Step#2.Buy/trade Bitcoins ....................................................................................................................7
Step#3.Secure your Bitcons using robust Bitcoin Wallet......................................................................8
Take note of points below ............................................................................................................................9
Best Hardware Bitcoin Miners Comparison................................................................................................10
Key considerations for choosing Bitcoin mining hardware ..................................................................0
Why ASIC Chipset..................................................................................................................................1

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What is Blockchain ?
1. Definition : In simple terms,Blockchain is a continuously growing list of
records, called blocks, which are linked and secured using cryptography.Each
block contains typically a hash pointer as a link to a previous block, a
timestamp and transaction data.
2. Design : By design, the blockchain is a decentralized technology.By allowing
digital information to be distributed but not copied, blockchain technology
was originally devised for the digital currency, Bitcoin, and now its finding
other potential uses for the technology. Network of computing “nodes” make
up the blockchain. Computer connected to the blockchain network using a
client (that performs the task of validating and relaying transactions) gets a
copy of the blockchain, which gets downloaded automatically upon joining
the blockchain network.
3. Robustness : It has a built-in robustness,by storing blocks of information that
are identical across its network, the blockchain cannot be controlled by
anyone/any single entity and has no single point of failure.
4. Transparent: Self-auditing ecosystem, the network reconciles every
transaction that happens in ten-minute intervals. Each group of these
transactions is referred to as a “block”.
5. Use Cases : Currently, finance offers the strongest use cases for the
technology.For example : remittances, people use to buy things with Bitcoin,
and store it along with other currencies.As of now,total market value of all
Bitcoin is about $67,134,851,755 USD.1 BTC = $ 4,067.66 USD.In India, you
can purchase Bitcoin from Zebpay exchange. Zebpay has Android and iPhone
app which lets you link your bank account for quick transfers.Unocoin,
another India-based exchange, lets you trade Bitcoins. They can help you buy,
sell, store, use and accept bitcoin.Please note : RBI is yet to officially recognize
the cryptocurrency and had cautioned users, holders and traders of Virtual
currencies , including Bitcoins.

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6. Enhanced Security: By storing data across its network, the blockchain
eliminates the risks that come with data being held centrally. A “public key”
is a users’ address on the blockchain. Bitcoins sent across the network gets
recorded as belonging to that address. The “private key” is like a password
that gives its owner access to their Bitcoin or other digital assets. Store your
data on the blockchain and it is incorruptible.
7. Blockchain issues/limitations
o Overcoming transaction delays, the verification process, and data limits
will be crucial.
o Government regulation status.
o Due to shift to a decentralized network, this requires the buy-in of its
users and operators.
o While there are tremendous savings in transaction costs and time(due to
decentralization) but there are high initial capital costs.

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Introduction to Bitcoin
We know Bitcoin uses peer-to-peer technology to operate with no central
authority or banks; managing transactions and the issuing of bitcoins is carried
out collectively by the network. Bitcoin is open-source; its design is public,
decentralized, nobody owns or controls Bitcoin and everyone can take part.
Image – bitcoin
Currently Bitcoin (BTC) market cap is about US$96.7 billion.May be this why,many
people like to purchase some and put them to the side in the hopes that they will
be worth more in the future.As with any market, nothing is for sure. Bitcoin is
traded 24/7 and its price changes every second.

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Advantages of Bitcoin
 Payment freedom – It is possible to send and receive bitcoins anywhere in the
world at any time. No bank holidays. No borders. No bureaucracy. Bitcoin
allows its users to be in full control of their money.
 Choose your own fees – There is no fee to receive bitcoins, and many wallets
let you control how large a fee to pay when spending.
 Fewer risks for merchants – Bitcoin transactions are secure, irreversible, and
do not contain customers’ sensitive or personal information. This protects
merchants from losses caused by fraud or fraudulent chargebacks, and there
is no need for PCI compliance.
 Security and control – Bitcoin users are in full control of their transactions; it
is impossible for merchants to force unwanted or unnoticed charges as can
happen with other payment methods. Bitcoin payments can be made
without personal information tied to the transaction. This offers strong
protection against identity theft. Bitcoin users can also protect their money
with backup and encryption.
 Transparent and neutral – All information concerning the Bitcoin money
supply itself is readily available on the block chain for anybody to verify and
use in real-time. No individual or organization can control or manipulate the
Bitcoin protocol because it is cryptographically secure. This allows the core
of Bitcoin to be trusted for being completely neutral, transparent and
predictable.
Disadvantages of Bitcoin
 Degree of acceptance – Many people are still unaware of Bitcoin. Every day,
more businesses accept bitcoins because they want the advantages of doing
so, but the list remains small and still needs to grow in order to benefit from
network effects.
 Volatility – The total value of bitcoins in circulation and the number of
businesses using Bitcoin are still very small compared to what they could be.

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Therefore, relatively small events, trades, or business activities can
significantly affect the price.
 Ongoing development – Bitcoin software is still in beta with many incomplete
features in active development. New tools, features, and services are being
developed to make Bitcoin more secure and accessible to the masses.
This post details on how to buy your 1st bitcoin its essentially bitcoin buying
guide. Please note : RBI is yet to officially recognize the cryptocurrency and had
cautioned users, holders and traders of Virtual currencies , including Bitcoins.
How to buy bitcoin
Step#1.Get to know your Bitcoin Exchange
Exchanges provide highly varying degrees of safety, security, privacy, and control
over your funds and information. Here are listing of Bitcoin exchanges.
1. Coinsecure
o Based out of India
o Charges – 0.4% per buy
o Options for NEFT, RTGS, IMPS and cash deposit.
o Requires ID verification i.e., KYC to be done
o Video tutorials available
2. ZebPay
o Regulated company in India
o Options to buy bitcoin with any Indian bank account via online banking
or NEFT and RTGS.
o Fees included in buy/sell prices
o Requires ID verification
o Offers additional services – Mobile topup, Data Card or DTH Bills etc.,

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3. Unocoin
o Regulated company in India
o Options to buy bitcoin with any Indian bank account via online banking
or NEFT and RTGS.
o Backed by investors in the United States
o Low 1% fee, reduced to 0.7% with sufficient trading volume
o Requires ID verification
4. Coinmama
o Works in almost all countries
o Highest limits for buying bitcoins with a credit card
o Charges an ~6% fee on each purchase.
5. LocalBitcoins
o Escrow service which also helps to match bitcoin buyers and sellers.
o Can be private, fast and easy
o In-person trades require no personal information
o Purchases of bitcoin can be made quickly via cash deposit
6. VirWox
o Easiest and basically only way to purchase bitcoins with PayPal or Skrill
o Charges around 10% in fees to buy with PayPal
Step#2.Buy/trade Bitcoins
Bitcoins are actually just secret digital codes. When you buy bitcoins, the seller is
using a wallet to transfer the ownership of the coins to you. Once your purchase
is complete, the codes are now owned by you and not the seller.You can even
buy partial bitcoins,Each bitcoin is divisible to the 8th decimal place, meaning
each bitcoin can be split into 100,000,000 pieces. Each unit of bitcoin,

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or 0.00000001 bitcoin, is called a satoshi.Most exchanges let you buy as little as
$5 worth of bitcoins at a time.
Long wait times are usually a problem with existing payment systems, not with
Bitcoin itself.Bitcoin transactions only take about 10 minutes to confirm. Bank
transfers in the U.S., for example, can take up to five days to complete.
There are many scams related to Bitcoin. Scammers target new Bitcoiners and
less tech-savvy users.
Step#3.Secure your Bitcons using robust Bitcoin Wallet
A Bitcoin wallet is simply an app, website, or device that manages Bitcoin private
keys for you.Without a wallet, you can’t receive, store, or spend bitcoins.There
are variety of wallets available for different platform.
How to Buy Bitcoin – Bitcoin wallet options
Hardware wallets are a good choice if you’re serious about security and
convenient, reliable Bitcoin storage.

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1. Trezor is a hardware wallet providing a high level of security without
sacrificing convenience. Unlike cold storage, Trezor is able to sign
transactions while connected to an online device. That means spending
bitcoins is secure even when using a compromised computer.
2. DigitalBitbox is a minimalist bitcoin hardware wallet packed with security and
privacy.Its plug-and-play wallet and second-factor authenticator that
combines the highest security of cold storage with the convenience of
software wallets.
3. KeepKey is a hardware wallet that makes bitcoin security simple. When you
entrust KeepKey with your money, every bitcoin transaction you make must
be reviewed and approved via its OLED display and confirmation button.
Take note of points below
 Secure your wallet – Bitcoin can provide very high levels of security if used
correctly.
 Price of a bitcoin can unpredictably increase or decrease over a short period
of time due to its young economy, novel nature, and sometimes illiquid
markets.
 Any transaction issued with Bitcoin cannot be reversed, they can only be
refunded by the person receiving the funds.
 Some effort is required to protect your privacy with Bitcoin. All Bitcoin
transactions are stored publicly and permanently on the network, which
means anyone can see the balance and transactions of any Bitcoin address.
 Bitcoin is an experimental new currency that is in active development. Each
improvement makes Bitcoin more appealing but also reveals new challenges
as Bitcoin adoption grows.
 Bitcoin is not an official currency. That said, most jurisdictions still require you
to pay income, sales, payroll, and capital gains taxes on anything that has
value, including bitcoins.

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Best Hardware Bitcoin Miners Comparison
With Bitcoin, miners use special software to solve math problems and are issued
a certain number of bitcoins in exchange. This provides a smart way to issue the
currency and also creates an incentive for more people to mine.
At first, Satoshi (inventor of Bitcoin) intended for Bitcoin to be mined on
computer CPUs. However, Bitcoin miners discovered they could get more hashing
power from graphic cards. Graphic cards were then surpassed by ASICs These
ASIC machines mine at unprecedented speeds while consuming much less power
than FPGA or GPU mining rigs.
Here are the TOP 3 Bitcoin Miners :
Mining
Hardware
Hash Power
Power
Efficiency
Operating
Temperature
Price
AntMiner T9 12.5 TH/s 0.126J/GH 0°C to 40°C
Coming
Soon
AntMiner S9
11.5TH/s, 12.5TH/s,
13TH/s, 13.5TH/s &
14TH/s, depending
on batch.
0.098 J/GH 0°C to 40°C ~2320$
AvalonMiner
821
11 TH/s 0.109J / GH -5°C to 30°C
Coming
Soon

More detailed stats below:
AntMine
r T9
AntMiner
S9
AvalonMin
er 821
AvalonMin
er 761
AvalonMiner
741
Antminer D3
AntMine
r L3+
Hash Rate
12.5TH/s
.
11.5TH/s,
12.5TH/s,
13TH/s,
13.5TH/s
& 14TH/s,
dependin
g on
batch.
11TH/s 8.8TH/s
7.3 TH/s
(RTHS)
15 GH/s
504MH/
s
Power
Consumption
1576W
+7%
1127W
(11.5TH/s
batch),
1225W
(12.5TH/s
batch),
1274W
(13TH/s
batch),
1323W
1200W,
+0% ~
+20% @
11TH/s,
25°C, 93%
PSU
Efficiency
1320W,
+0% ~
+15% @
8.8TH/s
25℃ at
220V
≈ 1150W, +0%
~ +15%
1200W
800W
+10%

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(13.5TH/s
batch),
1372W
(14TH/s
batch)
Power
Efficiency
0.126J/G
H + 7%
0.098
J/GH
+10% at
the wall
0.109J /
GigaHash
Wall-Plug
0.15 Joules
/ GigaHash
at the wall
0.16
Joules/GigaHa
sh at the wall
1.6J/MH
+10%
DC Voltage
Input
11.60 ~
13.00V
11.60
~13.00V
12 ~ 12.6V Max 12.53 Max 12.53
11.60 ~
13.00V
Chip Type BM1387
189x
BM1387
104 x
A3210
16nm ASIC
104 x
A3212
16nm ASIC
88 x A3212
16nm ASIC
BM1485
ASIC
chip

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Chip quantity
per unit
171
Chips
288
chips on
four
hashing
boards,
72 chips
on one
hashing
board
Chip Type BM1387
189x
BM1387
104 x
A3210
16nm ASIC
104 x
A3212
16nm ASIC
88 x A3212
16nm ASIC
BM1485
ASIC
chip
Chip quantity
per unit
171
Chips
288
chips on
four
hashing
boards,
72 chips
on one

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hashing
board
Dimensions
350mm(
L) x
135mm(
W) x
158mm(
H)
350mm(L)
x
135mm(
W) x
158mm(H
)
430 mm x
215mm x
205mm
405 mm x
215 mm x
206 mm
400 mm x 210
mm x 220 mm
320*130*190m
m
352mm
(l) x
130mm
(w) x
187.5m
m (h)
Cooling
Two
12038
fans.
Front
fan:
6000RP
M, rear
fan:
4300RP
M
2x 12038
fans;
Front fan:
6000rpm,
Rear fan:
4300rpm
1 x 12038
FAN,
6000RPM
Airform
Cooling 1
rear fan
6000 RPM
Airform
Cooling 1 rear
fan 6000 RPM

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Operating
Temperature
0°C to
40°C
0°C to
40°C
-5℃ ~ 30℃ -5C-40C -5C-40C
0°C –
40°C
Network
Connection
Ethernet Ethernet
AUC3 +
AUC3 I2C
to
AvalonMin
er
Controller
Through
AUC3 +
AUC3 I2c
to
AvalonMin
er
Controller
Through AUC3
+ AUC3 I2c to
AvalonMiner
Controller
Etherne
t

Key considerations for choosing Bitcoin mining hardware
 Hash rate – Hash Rate is the speed at which a compute is completing an
operation in the Bitcoin code. A higher hash rate is better when mining as it
increases your opportunity of finding the next block and receiving the
reward.How many hashes per second can the Bitcoin miner make? More
hashes cost more, which is why efficiency is crucial.
 Efficiency – You’ll want to buy the most efficient bitcoin mining hardware
possible. Since miners use a large amount of electricity, you want to buy one
that converts the most amount of electricity into bitcoins.
 Price – How much does the bitcoin miner cost? Cheap mining hardware will
mine less bitcoins, which is why efficiency and electricity usage are
important. The fastest and more efficient mining hardware is going to cost
more.
You can estimate Bitcoin mining and profitability based on mining hardware hash
rate in GH/s along with the power wattage and your cost of electricity – dollars
per kilowatt hour ($/kWh) on the profitability calculator here.
Image – Bitcoin mining and Profitability calculator

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Why ASIC Chipset
Application-specific integrated circuit (ASIC), is an Integrated Circuit (IC) designed
to process only a specific application. Compared to programmable logic chips or
standard ICs that are more versatile and can be used for a wide variety of
different programs, an ASIC is specifically designed to do one thing and specific
things. While it does this one thing much faster and more efficiently than
standard multi-purpose processors, they lack the versatility of standard logic
chips and, are more expensive to design and manufacture than their mass-market
counterparts, especially, as most of them aren’t really produced in very large
numbers.
Specialized Bitcoin ASICs are specifically designed to solve Bitcoin blocks and have
nominal requirements for other computer applications, which is why they can get
the job done faster and more efficiently than standard logic chips. While the first-
generation ASICs had Hash Rates of around 66GH/s (powerful enough to replace
30-odd GPUs), today’s top Bitcoin mining ASIC chips are as powerful as about 212
of those first-gen ASICs, with Harsh Rates hovering around the 14,000GH/s mark.
Technically it’s possible to mine bitcoins without dedicated mining hardware, yes
there are USB Miners but it doesn’t generate enough hashing power to mine
profitably.

Bitcoin buying-guide

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