Bitcoin Market Update 4/11/14

Yesterday was rough for the Bitcoin Market. We had a large drop down to $340 followed by a quick bully rally up to $430 this morning. If you have been following my tweets, you would have known to be short during the past few days. If you had been trading short on leverage at Bitfinex or Plus500, you would have been profiting quiet a bit (use referral code cgSJVGkGHV on Bitfinex for 10% off your first month!) 

Here is a chart I have been working with for the past few weeks. The dotted red lines are historic resistances and supports. The solid red lines are historical trend lines. Since the high in December, we have been consolidating in a descending triangle pattern. The good news from the sell off last night was that 340 held, and now the consolidation pattern will likely continue. The dashed light blue lines are prediction lines a drew a few days before this most recent sell off. While we went lower than I anticipated, I still think that we will continue to bounce around in the 340 - the solid red trend line and complete the triangle. Watch for high volatility as our trading range gets more narrow. In the short term I'm predicting volatility. Also, I think we will probably break up and out of this triangle. There is a smaller risk of breaking down though. Watch for the resistance levers around 260. If we break below that we could easily revisit double digit prices.

  

Breaking Bitcoin News - Google payment team is working on incorporating Bitcoin!

User JasonBored just post on reddit  That he has been in contact with key people on the Google payment team who confirm that they are working on incorporating Bitcoin into their payment system. Apparently, after e-mailing a few people, the "Vice President of Payments" at Google wants JasonBored to facilitate a Google Moderator (found here) conversation regarding "What would I want Google to do with bitcoin?" Reddit users are commenting and have been asked to submit answers to the question. I urge my readers to go to the Google Moderator page and answer the question for yourself or "agree" with other helpful suggestions.  Also you may want to keep an eye on the original reddit post as this is breaking Bitcoin news.


Below are pictures of his user JansonBored 's email conversation with Google payment team members.


His initial e-mail

The initial responses -

Update - Now Forbes.com is reporting it! It is looking more and more like this is not a rumor but a reality!

Part 2 - Bitcoin 101: How do I get Bitcoin?

*This is the 2nd post of Bitcoin 101. Read the rest of the posts here

How do I get Bitcoin?

So now you understand Bitcoin, and you have a wallet, and your a probably excited to get some Bitcoin of your own. There are basically two ways to get Bitcoin, either buy some via a Bitcoin Exchange, mine some,  or get some for free. As Bitcoin mining is an topic unto itself, this post focuses on exchanges. I have another page on this blog that lists many sites that will give you a small amount of Bitcoin for free. I recommend you try them. That small amount of Bitcoin may be worth thousands of dollars in a few years!

Bitcoin Exchanges let you purchase Bitcoin with your local fiat currency. There are many exchanges, and some that are more local to specific areas. However, here I will list the most well known and widely used exchanges.

Coinbase is my favorite and the exchange I recommend for beginners. Coinbase allows you to buy Bitcoin directly from your bank account. However, if you are first opening an account, it may take a week for you get your coins. After you account is verified you can buy up to 10 BTC a day instantly. This is how I get the majority of my coins. I also like that coinbase is located and operates legally within the USA. Coinbase has approval if not blessings to operate from the bitcoin foundation and the US government.

Local Bitcoins allows you to find people in your community and buy Bitcoin directly from them.


The Following Bitcoin exchanges are some of the best and are used frequently by Bitcoin traders. Traders are people trying to make more BTC or fiat by riding the volatility in the market. (The Bitcoin market is extremely volatile. I do not recommend actively trading Bitcoin for beginners or people inexperienced with trading financial assets).

Plus500 -  This is a CFD service where you trade CFDs on the price of Bitcoin and other more "traditional" assets with  leverage (up to 1:200). This is not a site for beginners or those inexperienced with trading. If you are serious about trading or are looking to trade more than just Cryptos this is place for you. Risk Warning - on this site, as with any trading site, your capital may be at risk. Unfortunately they do not allow people in the USA to trade here, but they can still profit from their awesome affiliate program

Bitfinex - A bit new in comparison to some other Bitcoin exchanges. Not only does Bitfinex have it's own exchange, it also lets users buy and sell on Bitstamp (see below). Additionally, this is one of the few exchanges where you can trade Bitcoin and Litecoin with leverage (4:1). You can also "lend" your USD, BTC, or LTC at interest. During rallies I have lent USD for as much as 350% APR! This is where I do most of Bitcoin trading. Use this referral code when signing up and get 10% off trading fees cgSJVGkGHV

Bitstamp - Bitstamp is another popular Bitcoin exchange. What makes Bitstamp stand out is that you can deposit and withdraw funds in many ways including SEPA transfer, International Wire, Bitcoin, Astropay, and it is the only exchange that you can deposit and withdraw with Ripple. The verification process here is quick and painless. After submitting the necessary documents I was verified within 24 hours.

BTCe - One of the oldest and most well known exchanges for Bitcoin and other altcoins. Does not have as many alts as other sites but makes up for it in many ways. The exchange is one of the only sites that lets traders leverage BTC and Alts as well as trade Alts directly to USD. Additionally, traders can use the MetaTrader 4 platform on the site for technical analysis and 1:3 leverage. Also well known for their "Troll Box" which is live chat in real time. Never take trading advice from the troll box.

Campbx - In comparison to other Bitcoin trading sites, I like Campbx because they are located in the United States, and have all of the appropriate documentation to operate legally in the United States. Many exchanges have been shut down as a result of lack of proper documentation, or by their local government. Deposit money with wire transfer, money order, or personal check. Will be able to withdraw and deposit with ACH transfer soon. Can sometimes trade with leverage (1:3).They also are one the few exchanges that let you put stops and trailing stops on trades. The only downside is they do not have the volume that some of the other exchanges have. Use this link for 10% off trading fees for life! 

Avatrade - This also is more of a trading site than an exchange. Avatrade is a some what new Forex trading site that also trades Bitcoin. For Bitcoin trading, you can trade with 10:1 leverage. This site is also great for those looking to trade fiat currencies and commodities like Gold. As a bonus use this link and get up to $10,000 for opening an account and depositing money into it! Additionally, Avatrade has one of the best affiliate programs.

Mt.Gox - One of the oldest and most well known. Located in Japan. The exchange rate is usually higher than other exchanges because most people have difficulties withdrawing large amounts of fiat (especially USD) in a timely manner. Historically is not good with customer service, however, more recently they have been improving. Verification can be difficult and take a month or so. The reputation and volume of this exchange makes it great. Mt.Gox is no more.  See my post about it - Gox Insolvent? 


Altcoins

If you are looking to trade other Cryptocurrencies like Litecoin, Peercoin, WorldCoin or Namecoin (just to name a few) you may want to try  Cryptsy - Cryptsy is one of the most heavily used Altcoin exchanges. It also has the largest variety of coins to trade. For each trade you or a  that a person who you refereed makes you get "Cryptsy points."  At then end of each day Cryptsy gives 5% of its total profit back to users via Cryptsy points. The more points you have the more you make back. Other Altcoin exchanges are  Vicurex - Bter (use these links on this page for discount on trading fees!). Vicurex is helpful because it gives you interest on desposits of BTC, LTC, WDC, PPC, NVC. However, Bter is one of the few exchanges that has NextCoin NXT



*Part 3 will be coming soon and focuses what you can do with your coins now that you finally have them!

Gridseed's Hybrid Scrypt/SHA256 ASIC miners are finally here!

Miners and Crypto experts have been speculating on these hybrid Scrypt/Sha256 ASIC miners for some time. Currently it seems a few business are heavily invested into making this once fantasy now a reality. Right now, it seems a company in China has beaten the completion, and already made and sold active Scrypt/ASIC miners. Unfortunately, it seems right now only people in China can buy them. I'm assuming this will change when people start to organize large bulk orders and ship them independently. I first found out about this a few days ago from this thread on the Feathercoin Forum,  when user lizhi reported that he had used one of the miners. I think this is his twitter account - @ftcc3 . This story is still developing. I would recommend checking that thread, and this website frequently for all of the latest updates. Also check out this thread on Bitcointalk forums for updates

I think this is the website of the store that is selling them - http://www.diginforce.com/
This may be a website that tells you more about them - http://www.cybtc.com/article-388-1.html

Right now it looks like they are selling one "mining machine" (usb miner) which includes 5 Gridseed GC3355 chips for about $133 


BTC rate：10G/S
LTC rate：300K/S
power of  BTC+LTC Mode：60Wpower of LTC Mode：7W

Part 1 - Bitcoin 101: What is Bitcoin? Where do I start?

Bitcoin 101: What is Bitcoin? Where do I start? 
This is the first post in a series. Read the 2nd post here

This is the first post in the series Bitcoin 101. Bitcoin 101 are all helpful guides on how to get started with Bitcoin. If you are new to Bitcoin and Cryptocurrencies welcome. For most folks Bitcoin can seem a bit confusing or even mysterious at first. However, with some basic knowledge it will all begin to make scene and your will be able to see why Bitcoin is truly revolutionary.

What is Bitcoin?

Many more people have been able to explain what Bitcoin is more concise and eloquent than I could, so in this section I will direct you to towards that information. 

*Here is a great video to start off with. 

*Coindesk has a helpful Beginner's guide to Bitcoin 
 Additionally, you may want to read this article - Still don't get Bitcoin? Here's an explanation a 5-year-old will understand

*The official Bitcoin Forums bitcointalk.org has tons of information. However, because there is so much information is can be hard to find what you need sometimes. For the most part the users are friendly and helpful. It may be useful to you to make an account and participate in the forum.

* Reddit has a nice Bitcoin section also with an active and helpful community.

* The Bitcoin wiki is another great source of information.

*This Iconographic does a good job of explaining some of the basics of Bitcoin 

*The denominations in Bitcoin can be confusing to some (they were for me at first) so I made a blog post explaining it - mBTC, μBTC, Satasha-what? Denominations for small amounts of Bitcoin

Bitcoin Wallet 

Ok, now that you know all about Bitcoin the next step is getting some of your very own. To do this first you must establish a Bitcoin "wallet." A wallet is just a specific Bitcoin address that you control. There are 3 different types of Bitcoin wallets, Software, Web, and Moblie. 

Software wallets are installed on your computer. They give you complete control over your wallet. You are responsible for protecting your money and doing backups. However, they can be somewhat resource intensive. 

Bitcoin QT - The original and still updated full QT. It is resource intensive but it gives you full control over your wallet.  
Multibit - newer and less resource intensive than the original QT

Web wallets with a web wallet a company or organization hosts your wallet, private keys, and content. Great because they can be accessed anywhere with an internet connection. However, you have to trust the website to take care of your information. If the website gets hacked, or is malicious, you will loose your coins. 

Coinbase - I recommend this wallet for beginners. Its secure and connected to an exchange so you can easily buy your first Bitcoins. Has secure and helpful Android and iPhone aps. 

Blockchain  - Also great wallet for beginners and a good resource to track Bitcoin transactions. 

Mobile wallets allow you to bring Bitcoin with you in your pocket. You can exchange coins easily and pay in physical stores by scanning a QR code or using NFC "tap to pay". However, some may be unnecessary as good web wallets also have a phone ap. 

Coinbase

Android Mobile Wallet

***This post is still a work in progress. More will be added. If there are any other good sources of information or wallets that I should include please let me know. -  @Bitcoin_Altcoin ****

Make Bitcoin by Advertising: Highest Paying Bitcoin Affiliate Sites

Bitcon and Altcoin Exchanges

Plus500 - Is a CFD service and is the highest paying affiliate I have found. Plus500 will give you $500 for every person who signs up and begins trading. People in the United States can not trade with them but are eligible for referral benefits!

Cryptsy - Cryptsy is one of the most heavily used Altcoin exchanges. It also has the largest variety of coins to trade. For each trade you or a  that a person who you refereed makes you get "Cryptsy points."  At then end of each day Cryptsy gives 5% of its total profit back to users via Cryptsy points. The more points the more you make back.

Bter - is another great altcoin exchange. They usually add popular new coins pretty quick, including Nextcoin, Maxcoin, and Dogecoin. They also have "Bter points" similar to "Cryptsy points" You make 30% on all referrals trading fees for 6 months. Your refferals get 10% off trading fees for 6 months!

Coinbase - Coinbase will give you $5 worth of Bitcoin when a person who you refereed buys > $100 worth of Bitcon.


Pay Per Click, Pay Per Task 

BitcoinGet - Is a web site where users can earn Bitcoin by watching short videos and doing simple tasks like searching for things on Google.  For every user they sign up affiliates get 10% for videos and 5% for everything else.

My Bitcoin Rewards - Website where users get paid to do small tasks. Interesting model, where your earnings can grow depending on the user base of the site. Affiliate payouts are 20% on Direct Referrals 10% on 2nd Level Referrals 5% on 3rd Level Referrals

CoinAd - Users receive small amounts of BTC for viewing ads and certain pages for short intervals. Affiliates get 10-20% of referrals earnings. 

Gambling

BitBoomba - Digital Casino site. Affiliates make 30% of managed gross revenue for referrals.

Coin Controller - Fun game with good odds. Make 20% of the profit that your referrals make. 

Other

CoinURL - Is a site that provides advertising for Bitcoin and Cryptocurrency related business and websites. For affiliates they offer  5% of revenue from ad purchases and 1% of link publisher and website owner earnings. It also has a link shortening service that shows brief ads and rewards you on a PPC basis.

Bitcoin Pyramid -  One of the oldest and most trusted. Money from ads and deposits gets redistributed to members. Earn 50% for all of your referrals. Must deposit at least 0.021 BTC to be eligible.


VirtaPay - A site that has a virtual market somewhat similar to eBay. They automatically give $100 to every new account. It is posted on the site that sometime soon you will be able to exchange the fiat in your account to Bitcoin. As of now that is not an option. Make 25$ for every referral. 

Bitcoin faucets - There are many Bitcoin faucets that also have nice referral benefits. You can make BTC every time one of your referrals uses the faucet. Many of the sites on my post about Bitcoin Faucets have referral benefits. 

  

*I will be adding more great Bitcoin referral sources as I get the chance. If you know of any that I have not included tell me about it on twitter @Bitcoin_Altcoin