Bitcoin

On this page you will learn more about Bitcoin and the cryptocurrency bitcoin (BTC). We will give you some tips that will come in handy when you decide to buy or sell bitcoin. But first, a brief introduction to Bitcoin.

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About Bitcoin

Bitcoin is a decentralized payment network on which one can perform peer-to-peer transactions. This means that transactions with bitcoin are sent directly between the sender(s) and recipient(s). This does not involve a bank or other payment processor meaning no middleman is needed to process a payment.

Bitcoin is a decentralized payment network on which one can perform peer-to-peer transactions. This means that transactions with bitcoin are sent directly between the sender(s) and recipient(s). This does not involve a bank or other payment processor meaning no middleman is needed to process a payment.

Miners are an essential part of the network. They perform complex calculations intending to encrypt all transaction data. The product of these calculations are called hash keys. All the data is linked together in the Bitcoin blockchain. The blockchain is a chain of data blocks that are connected with these hash keys. If a hacker manipulates transaction data in one block, the chain breaks and everyone knows from which point the transaction data can no longer be trusted. To successfully attack Bitcoin, a hacker needs at least 51% of the total hash power. As this is basically impossible because of the enormous amount of miners that participate, an attack is unlikely to happen.

Buy bitcoin (BTC)

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Bitcoin is a volatile currency and therefore offers opportunities for investors. You can buy bitcoin in different ways and on platforms. You can buy bitcoin on cryptocurrency exchanges such as Binance, Coinbase, and Bitfinex, for example. However, bitcoin can also be bought through other means.

One of those ways is an over-the-counter (OTC) platform. This means that the bitcoin is sold through a broker instead of an open exchange. The transactions and orders through an OTC platform are not publicly visible as is the case with transactions on an exchange. Buying bitcoin via an OTC platform, therefore, offers more privacy.

You can also buy bitcoin via peer-to-peer platforms, such as LocalBitcoins. These platforms can be seen as an online marketplace where buyers and sellers can interact directly. However, this may come with risks as we will explain on this page.

Selling bitcoin (BTC)

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Suppose the bitcoin price rises sharply, you may want to sell some bitcoin to liquidate your profits. This can be done in several ways. Many of the aforementioned ways of buying bitcoin also apply to sell bitcoin. You can sell your bitcoin fairly easily and quickly via a cryptocurrency exchange. This can be done at the current spot market price, but you can also choose to place an order for a price of your choice.

This is not possible with OTC platforms. Here you can only sell your bitcoin at the indicated price. However, OTC platforms do offer extra privacy. You can also expect better customer service. Finally, you can of course also sell your bitcoins via a peer-to-peer platform. However, just like buying bitcoin, this comes with risks.

Knaken helps you buy or sell bitcoin (BTC) safely and easily. It doesn't matter if you are a beginner or a veteran. These three simple steps apply to everyone.


• Select your cryptocurrency
• Pay via the payment methods such as IDEAL
• Receive and manage your crypto in your Knaken dashboard or your own wallet

Why sell or buy bitcoin (BTC)?

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More and more investors see bitcoin as a store of value. This means that they expect bitcoin to retain its value better than traditional currencies such as the euro or dollar, or traditional equities. In addition, bitcoin has shown in the past that it can increase significantly in value. This makes it an interesting investment for the future. Aside from that, bitcoin is also very suitable for active (day) trading.

Suppose you bought some bitcoin and see that the value has increased by 20%, then it is wise to sell part of your bitcoin and take some profit. Selling Bitcoin is very easy as it can be done in many ways. Are you planning to hold your bitcoin for a long time? Then you are a so-called "HODLer.” In that case, you will not want to sell your bitcoin too quickly. As a HODLer it is wise to set a target price for which you would ultimately like to sell your bitcoin.

Why choose Knaken?

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• Safe & Easy.
• No extra costs.
• Manage crypto via your Knaken Dashboard or your wallet.
• Knaken has its own exchange.

Important tips when buying/selling bitcoin (BTC)

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The most important tip for when you decide to buy bitcoin is to have a good cryptocurrency wallet. This is where you will store your bitcoin. Do you want to make a big investment in bitcoin? Then make sure you have a hardware wallet. The advice is to have at least a software wallet on your computer. This minor security measure is necessary as exchanges have been hacked in the past. So it is not safe to store large amounts in your exchange account. Because transactions cannot be reversed, it is wise to not make a big deal of your bitcoin holdings. Do not share your bitcoin balance with othersn as this can lead to dangerous situations.

If you want to sell your bitcoin through a peer-to-peer marketplace, make sure you take precautions. For example, meet in a public place and not somewhere in some back alley.

Always research the company that offers to sell you bitcoin. This applies to both exchanges and OTC platforms. Ask others about their experience or consult websites such as Trustpilot. This way you can find out whether a company can be trusted or not.