Are Bitcoins anonymous and untraceable?

Are Bitcoins anonymous and untraceable?

WHAT ARE CRYPTOCURRENCIES FOR?

Although its operation is digital, cryptocurrencies fulfill the function of a regular currency, so – like any other means of payment – they can be used to purchase products and services.

But even though their use has expanded and is usually used more frequently in the main e-commerce platforms, they are not regulated by any financial entity, neither in Peru nor in any country in the world.

More and more businesses accept and promote their use in sectors such as real estate, tourism, automotive, and others. Not long ago, for example, WeWork began accepting cryptocurrency payments in partnership with BitPay, a cryptocurrency payment service provider.

Since April, the flexible space provider has accepted Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Paxos (PAX), among other cryptocurrencies, as a form of payment for its services. But it has also announced that it will keep this coin on its balance sheet, for which it will pay its owners and external partners in cryptocurrencies.

The same decision has been made by Elon Musk’s electric car company Tesla; While companies such as KFC, Microsoft, Expedia, WordPress, Reddit, or Paypal are other of the many recognized brands that promote payment with cryptocurrencies and allow their users to make payments with this virtual currency or electronic means of exchange.

WHERE ARE THEY BOUGHT AND SOLD?

Before buying and selling cryptocurrencies, it is important to consider two basic concepts: ‘blockchain’ and ‘exchange.’

Known as a “chain of blocks,” the ‘blockchain’ is the network on which cryptocurrencies work and stores all changes that occur immediately. In short, it functions as a kind of “ledger,” which is public and accessible.

While an ‘exchange’ is the platform that allows transactions with cryptocurrencies, in that sense, it works as an “exchange market” because it allows you to buy, sell or exchange your cryptocurrencies for local money, in our case for soles.

Precisely, in the Peruvian market, are the platforms or ‘exchanges’ that allow you to buy, sell or exchange cryptocurrencies, such as:

They were considered one of the safest sites to buy and sell cryptocurrencies. Trade bitcoins, ether, litecoin, and other cryptocurrencies on one platform for beginners and professionals. As they point out, more than 90% of the funds they handle are stored in vaults disconnected from the Internet.

Being one, it is a ‘fintech’ specialized in the immediate exchange of digital values ​​such as bitcoin and other digital currencies; in its more than eight years in the market, it has traded more than 1,697 bitcoins. It allows you to buy cryptocurrencies by depositing soles from a bank account of BBVA Continental, BCP, Interbank, Scotiabank, and Banco de la Nación.

Self-defined as an intuitive investment platform, its users can acquire cryptocurrencies directly or through Contracts for Difference (CFDs), in addition to other financial instruments.

They claim to be the safest experience for buying and selling cryptocurrencies in Peru. It allows transactions insoles and dollars to buy and operates with various banks such as BBVA Continental, BCP, and Interbank. For now, they only offer bitcoin operations, but they enlist the entry of ether.

As a fintech company, it is approved by the FCA and CySEC. It handles 135 currency pairs and a wide portfolio of cryptocurrencies (around 70) and other assets that allow you to invest in the local stock market.

VALUE OF CRYPTOCURRENCIES

Considering that the value of each cryptocurrency is variable, many people buy cryptocurrencies to sell them later and make a profit thanks to it.

Although you can easily find the cost of a cryptocurrency in a search engine, the same trading platforms also provide this information and in the local currency.

In the case of Buda.com, the updated value of bitcoin is S / 198,837, ether or Ethereum is quoted at S / 13,404.2, and litecoin at S / 751.00. In the three cases, in the last 24 hours, this value has reported growth, while in the last seven days, only ether shows a slight fall (–0.1%).

But, considering your budget, you should know that you can also choose to buy fractions of a cryptocurrency, depending on the money you allocate for your investment.
What are Bitcoins?

Bitcoins are completely digital virtual currencies and are exchanged directly between two parties through the web without an intermediary. They were created in 2009 by a programmer under the pseudonym Satoshi Nakamoto.

Unlike modern fiat money, Bitcoin, which has often been called “money for the internet,” is not controlled or endorsed by any bank or central government authority, like the Federal Reserve or Banxico. Bitcoins are pieces of computer code – mathematical algorithms – that represent monetary units. Today there are approximately millions of Bitcoins in existence. In theory, only about 21 million Bitcoins will be generated until the year 2140. Unlike credit card transactions, those made of Bitcoin, which occur internationally every day, are irreversible; they can only be reimbursed by the person who receives the money.

Are Bitcoins anonymous and untraceable?

No, contrary to what people think, they are not. While Bitcoin users should avoid disclosing certain personal information, such as their bank account, social security number, or address, a traceable trace of each transaction is left on a public record known as a blockchain. It helps prevent people from spending the same Bitcoins more than once. Bitcoins exchanges in the United States collect personal information from users that can be requested through a subpoena.
How do I start using Bitcoin?

You don’t have to master all the technical processes of Bitcoin to start using it. First, you need to install a Bitcoin wallet on your computer or Smartphone. Or you can use a web wallet in the cloud. Some Bitcoin desktop wallets (sometimes called clients) include Bitcoin-QT, Armory, Electrum, Hive, and MultiBit. If you use a provider from your desktop wallet, be sure to back up your computer regularly.

Like the Bitcoin wallet for Android, Bitcoin mobile wallets let you use it to pay for items in physical stores that accept them by scanning a QR code or using NFC (Near Field Communications). Web wallets like Coinbase and Blockchain.info allow you to use Bitcoin from any server or mobile device and regularly offer other services, such as current Bitcoin prices, news, and the ability to buy, use and accept this digital medium of exchange.

Once you are registered, your Bitcoin wallet provider must generate your first address, and according to the Bitcoin Foundation, you can create more when you need it. You can share your Bitcoin address with friends and contacts so that they can pay you, and you can pay them through this means.

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