Tag Archives: transaction fees

Paying with Bitcoin: What You Need to Know

Cryptocurrency, especially Bitcoin, continues to rise in popularity despite its value’s volatility recently; and if you are looking to use bitcoin to pay for things, you have to take due diligence in knowing how to do it, where you can spend, buy cryptocurrencies, or earn bitcoins, the best trading platform, and what the risks and advantages are.

How do you pay with bitcoin?

First, you need a bitcoin wallet. There are free bitcoin wallets available for smartphones and all major operating systems. Just like with a physical wallet, you must always secure it – this means being careful with online services, putting backup and encryption, and putting just small amounts in it for everyday use.

A very common use for bitcoin is for online purchases. Today, there are hundreds of retailers and online shops – even local businesses – that accept bitcoins. Bitcoin can be used to purchase gift cards, videogames, household items; you can also use it in tipping and donating to charity. There are different ways to pay using your bitcoin. You can pay using your wallet or app, via QR code, or pay directly to a bitcoin address. Making a blockchain payment is fast and convenient – and you do not need to key in sensitive information when making a payment.

What are the advantages?

  • Anonymity. Your purchases are discrete with bitcoin, which means they are never associated with your personal identity. In fact, the bitcoin address generated is different for every purchase you make.
  • Low Transaction Fees. Since there is still no government involvement in bitcoin transactions at this point, the costs of transacting are very low.
  • Mobile. Since paying with bitcoin can be done using an app on your mobile phone, you can pay for our purchases anywhere you are as long as you have internet access.
  • No interruptions. Since the bitcoin system is purely peer-to-peer, it is void of involvement of banks, financial institutions, and the government.
  • No Sales Taxes. One major advantage of paying with bitcoin is that no sales taxes are added in your purchases since there are no third parties identify or track them.




What are the risks?

One thing that you need to understand is that bitcoin, no matter how popular it has become at this point, is still experimental. Getting into bitcoin now can mean that you have to deal with the growing pains as it still at the stage in which it is still improving and such improvements may bring about new challenges.

Bitcoin price very volatile. You should look at bitcoin as a high risk asset and you must not keep your savings with bitcoin at this point.

You must adopt good practices in protecting your privacy as bitcoin is not entirely anonymous. Your identity behind the bitcoin address you’re using may be anonymous, but transactions and balances in your address can be seen by anyone.

Bitcoin payments cannot be reversed, so only transact with people you trust and business that have already established their reputation. Beware of scams, fake ICOS, and fraudulent activities.

Moreover, bitcoin purchases are not taxed at the moment since there is no way for third parties to identify, track, or intercept transactions that use bitcoins.

Contact us at Hogan Injury for expert legal advice.

None of the content on Hoganinjury.com is legal advice nor is it a replacement for advice from a certified lawyer. Please consult a legal professional for further information.

eToro FX broker announced has just added IOTA for trading

Now available for trading on eToro, the IOTA coin is another interesting addition to the platform’s ever-growing selection of crypto. With multiple uses as an Internet of Things (IoT) platform and quite a bit of attention from the blockchain and cryptocurrency communities, IOTA presents an alluring trading and investing opportunity to some.

What is IOTA?

IOTA is a platform designed for enabling fast communication and transactions for IoT platforms. As more household items, cars and other products become connected devices, the need for a reliant protocol to mediate between them is on the rise. For example, in the near future, a smart fridge could “sense” that you are running low on orange juice and autonomously order more from your grocery store. This scenario requires a platform that could both relay the messages between the machines and take care of the financial aspect of the transaction.

And that is what IOTA is trying to do. Its Tangle technology enables multiple devices to communicate on a vast network that actually becomes stronger as it grows. Unlike traditional blockchain platforms, IOTA does not have miners, or specific nodes that verify transactions, but rather, each device that processes a new transaction is first required to verify a previous one and register it in a public ledger. The network’s overall processing power actually grows as more devices join it, while in most other blockchains, more network members could lead to latency and growing transaction processing times.

The creators of IOTA set out to make a network that has no transaction fees and is extremely scalable. Its unique architecture is designed to do just that, using the process described above. Moreover, since to buy a single IOTA token would cost fractions of a cent, it is quite easy to process even the smallest of payments (microtransactions) – another important feature for an IoT platform.

IOTA vs Bitcoin: Main differences

IOTA is quite different than other cryptos. To highlight these differences, here are a few key factors that separate it from the world’s first cryptocurrency, Bitcoin:

  1. Scalability: Bitcoin relies on a blockchain network, which requires miners to process transactions. These miners compete amongst themselves to be the first to make the calculations necessary to approve the transaction and the winner earns a small fee in return. With its Tangle architecture, IOTA eliminated the need for miners by making each device responsible for processing its own transaction and the one requested by the device before it. This minimises transaction times and accelerates the network’s speed as it grows.
  2. Microtransactions: Each Bitcoin is worth quite a bit, with its value reaching thousands of dollars. Therefore, it is counterproductive to use it for transactions which require a small amount of money, as the transaction fees could outweigh the price of the services or goods exchanged. In contrast, a single IOTA is valued at fractions of a cent, so it is easy to use it to make small transactions (such as the orange juice example used earlier). In fact, those wondering how to buy IOTA will find that the IOTA coin price is so insignificant, that exchanges trade it in units of millions (MIOTA).
  3. Quantum computing resistance: While there are still no functional quantum computers in existence, the scientific community is mostly in agreement that they will eventually be introduced, with computing power that is massively greater than that of current computers. While, to this day, no blockchain network has ever been hacked, it is presumed that a quantum computer used by malicious entities could theoretically do so. However, IOTA founders claim that they designed their network in such a way that is much more resilient to such an attack.

What drives IOTA’s price?

Being both a cryptocurrency and an IoT platform, the IOTA chart is subject to various factors that can move it in any direction. For example, if the entire crypto market is on an upward trend, it could lift the IOTA price as well – and vice versa. In contrast, if the market is on a downtrend due to a negative perception of blockchain platforms, that could potentially be beneficial for IOTA, since it is not a blockchain platform per se.




On the IoT front, developments relating to the industry, its adoption by a popular sector, or events relating specifically to IOTA, such as a partnership with a high-profile company, could also influence its price. In addition, IOTA’s infrastructure is entirely original, not relying on any previous blockchain/cryptocurrency code. While this could be perceived as an advantage, there have been times when criticism of the platform impacted IOTA’s price.

Trading IOTA on eToro

Since being launched in 2015, the IOTA cryptocurrency has gathered a following and established itself as one of a handful of cryptos whose market caps are in the billions. Making its way into the top 10 ranking, IOTA is popular among many traders and investors. Now, IOTA is also part of eToro’s cryptocurrency selection, and traders and investors of the eToro community can add it to their portfolios.