How Bitcoin works – A quick overview
To answer the million dollar question ‘Is Bitcoin legal?’ and why any government would want to ban it, you must be clear as to what Bitcoin is and how it works. Back in 2009, an anonymous man known as Satoshi Nakamoto invented the first-ever digital currency based on blockchain technology.
Blockchain technology uses mathematical equations to secure, release, and verify Bitcoins. So, in order to bring Bitcoin into circulation, you have to solve a number of equations that require plenty of computing power. This is known as Bitcoin mining. Once a Bitcoin is mined, it’s then added to the blockchain, and the miner receives a coin as a reward.
Similarly, blockchain technology undergoes a process known as Bitcoin halving roughly every four years. During the process, the reward given on mining of Bitcoin is cut down by 50% so that its demand increases and inflation doesn’t occur. Similarly, the total Bitcoins to ever be mined are 21 Million and they’re expected to be mined by 2140.
Nowadays, people prefer purchasing Bitcoin through crypto exchange platforms. Here at CryptoParrot, we allow users to hop on to our crypto trading simulator to learn and practice Crypto trading in a fun, user-friendly, and convenient way.
So, is Bitcoin legal?
So far, the legal status of Bitcoin varies drastically across the Globe. For instance, China has recently put strict regulations on Bitcoin trading but hasn’t illegalized the holding of Bitcoin. Similarly, cryptocurrencies are not considered legal tender in Canada, whereas the buying and selling of crypto alongside the exchange of crypto for a good or service are allowed in the country.
Most countries that have made Bitcoin legal require that people use regulated and licensed crypto brokers to purchase or sell their Bitcoin. This makes crypto trading less risky and diminishes other risks alongside. You can visit our website to read more about Bitcoin buying and selling.
If you’re someone who travels or moves around often, it’s best to do your homework beforehand. All rules and Bitcoin regulation laws for each country can be found on the internet. For instance, if you’re in Canada, you can look up ‘Is Bitcoin legal in Canada?’ or ‘Is cryptocurrency legal in Canada?’ and you’ll have all the answers you need in front of you.
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Where is cryptocurrency legal? Countries where you can trade Bitcoin legally
To make things easier for you, we’ve jotted down a list of some of the major countries where you can legally trade Bitcoin:
United States: Cryptocurrency exchanges are legal in the US and come under the umbrella of the Bank Secrecy Act (BSA). US citizens and residents enjoy Bitcoin trading as well as using Bitcoin to buy goods or services. Though, some states have a few licensing requirements and follow stricter Bitcoin law.
Japan: Being amongst the most technologically advanced countries on earth, people were positive that Bitcoin and other cryptos would be legal in Japan. Thankfully the Japanese enjoy crypto trading in the most pro-crypto environment. Cryptos are actually accepted as a valid form of payment in the country.
Germany: Being a highly progressive country, Germany not only allows citizens to use cryptocurrencies and pursue crypto trading but is actively involved in the research for blockchain solutions as well.
Malta: The small European country, Malta, has also stepped up to accept Bitcoin as a form of trading. People based in Malta are subject to very few rules and regulations and enjoy crypto trading thoroughly.
Canada: There aren’t many rules and regulations when it comes to crypto transactions in Canada. Canadians enjoy crypto trading and the exchange of Bitcoin alongside other cryptocurrencies for goods and services.
Singapore: The government of Singapore has no involvement with cryptocurrencies. The people in Singapore enjoy crypto trading and the regular exchange of crypto for goods and services without any restrictions or laws in place. Some of the best crypto exchanges in Singapore include Binance, Kraken, and Gemini.
The first country to make Bitcoin legal tender: El Salvador
Though many countries allow the use and trading of Bitcoin, none of them consider Bitcoin to be legal tender other than El Salvador. The bold move to accept Bitcoin as legal tender was made by the country following the recent congress approval of President Nayib Bukele’s proposal. His proposal was targeted towards putting out an effort to promote financial inclusion, investment, and economic development.
Bukele is a tech-savvy person and is known for embracing innovative thinking. His step towards making Bitcoin legal tender alongside US Dollar was also because he believes it will help citizens living abroad send money back home to their families. He also suggested that Bitcoin has great potential, and he has many plans laid ahead for the market leading crypto.
A few countries where Bitcoin is NOT legal
While the majority of countries allow Bitcoin transactions or Bitcoin exchanges in one way or another, the million dollar question is ‘is Bitcoin illegal in some countries as well?’ The answer is, yes. It’s best to know where you can’t trade or use Bitcoin just to be on the safe side. So, we’ve jotted down a few countries where Bitcoin is illegal:
With the rapid increase in crypto-awareness, the legal status of cryptocurrencies is subject to shifting pretty fast. You should stay in touch with crypto news and updates to make sure you don’t miss out on any relevant updates. Crypto updates also allow one to analyze trades better as you’re more aware of ongoing happenings that might lead to a spike in Bitcoins value or could make Bitcoins value decline.
You can visit our website to learn more about cryptocurrencies and crypto trading platforms. Here at CryptoParrot, you can experience crypto trading on our simulator to get a feel of crypto exchange platforms and practice crypto trading before joining an actual exchange. We also update our users with regular guides to help them learn more and move forward in their crypto trading journey.
What’s the safest way to trade crypto?
Check what your country’s requirements for crypto trading are
Most countries that have legalized crypto trading make it a requirement that users only trade with regulated and licensed crypto exchanges. There are many valid reasons behind this. One simply can’t undermine the importance of a top-notch trading platform when it comes to trading crypto securely.
Make sure you choose a regulated broker
The first sign of a secure broker is that it will be regulated and licensed by one or more tier-one financial authorities. This ensures that the broker follows strict guidelines and your money is in good hands. For example, most tier-1 financial regulators make it a requirement that crypto brokers keep the company’s funds and client’s funds in separate accounts, and those accounts should be in tier-1 banks.
Always try a demo account beforehand
With the rising number of crypto brokers emerging in the market, picking one can be extremely challenging. The best thing to do is try out a demo trading account and see what suits you the most. Here at CryptoParrot, we enable traders to learn crypto trading on our trading simulator. You can get the whole crypto trading experience without risking your funds. We also offer several features that focus on continuous learning and growth as we believe ongoing learning can do wonders.
Practice your trading skills and focus on learning
Once you’ve practiced your crypto trading skills and gained an idea of what an excellent trading platform feels like, you’ll find it easier to judge whether other trading platforms are up to the mark or not. You can also visit our website and check out our guides and crypto exchange reviews to gain a better insight into the best crypto exchange platforms out there.
Register an account with CryptoParrot to experience simulated crypto trading legally.
Registering an account with us is as easy as it gets. All you have to do is:
- Visit our website and click on the sign-up option.
- Enter a few valid details along with proof of identity.
- Once your account is set, you can log in and enjoy crypto trading on our simulator.
- Make sure you make the most of the features and learning opportunities present on our platform.
You can learn more about Bitcoin investment, the best Bitcoin wallets, and even the best crypto trading platforms through our website. Our aim is to make crypto trading as easy, fun, and accessible as possible. If you’re about to invest in Bitcoin, hop on to our website now and register your account within minutes.
The varying laws regarding crypto and Bitcoin across the globe have caused plenty of confusion, especially for those who move around quite often. On top of that, the legal status of Bitcoin is shifting pretty fast. For example, China recently put lots of restrictions on the use of cryptocurrencies, allowing people to do very little with their crypto coins.
However, there are a number of things you can do to make sure you’re updated with ongoing crypto news and to ensure that you’re trading and storing your crypto securely. Firstly, you must register an account with a top-notch trading platform that is regulated and licensed under a tier-1 financial authority. Secondly, you should join us at Crypto Parrot and practice your latest crypto trading strategies, as well as making use of our industry-leading guides, reviews, tips and tricks. Lastly, you should subscribe to crypto news channels to stay up to date with the legal status of cryptocurrencies across the world.
Sign up with CryptoParrot today and benefit from the numerous features and tools we offer traders to help them achieve their crypto trading goals.
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Is Bitcoin legal? FAQ
❓Can you buy a house with Bitcoin?
The use of Bitcoin is pretty limited as only a few people and companies accept it as a form of payment yet. In order to buy a house in return for Bitcoin, you’ll have to check with the seller beforehand. Although, you can always turn to a crypto exchange platform and exchange your crypto with fiat currencies. As Bitcoins acceptance increases globally, there are many people that have started to accept crypto as a form of payment. To read more about crypto exchange platforms and how to buy or sell Bitcoin, hop on to our website.
🔥What gives Bitcoin value?
A few months ago, Musk took the internet by storm when he announced that Tesla would be accepting Bitcoin as a form of payment. The cryptocurrency reached new heights as people stormed to invest in it, and more companies followed in Musk’s footsteps. However, recently Musk announced that Tesla is postponing the acceptance of Bitcoin until the process of mining the crypto shifts to more eco-friendly ways. He showed concern regarding the environmental cost of mining Bitcoin as mining is an extremely high energy-consuming activity. Visit our website to gain further insight on Bitcoin and other cryptos.
🤔 Is bitcoin safe or can you lose all your money?
Back in 2009, when the first Bitcoin was mined, its value was 0$. Ever since then, the crypto has gained immense value and has never lost its entire value despite its volatile nature. In fact, every time crypto halving occurs, Bitcoin sees a massive spike in value due to shortened supply and increased demand. So, at least up till now, nobody has lost all of their money in Bitcoin. Analysts suggest that Bitcoin and other cryptos should be held onto for longer time periods because they’re volatile but have great potential in the long run.