A guide to investing in bitcoin

A lot of people ask about investing in bitcoin, or if they should. This piece goes through the pros and cons, and various options. It will cover what bitcoin is, and a bit of the history of the digital currency as an investment vehicle. If you are considering investing in bitcoin, we recommend you do your own research before making any decisions. This guide does not seek to recommend or advise investing in bitcoin, but acts as a resource for people trying to understand it better.

What is bitcoin?

human63Bitcoin is a digital currency – it consists of tokens that can be exchanged between people on an online ledger cheaply, securely and quickly. It is not owned or controlled by a bank or central body, but processed by a distributed worldwide network of software called the blockchain.

Transactions using the blockchain are verified multiple times using encryption to ensure no fraudulent transactions occur. This distributed network is currently more powerful than the top 500 super-computers combined, and ensures that the rules of the network aren’t changed without a technical consensus. Examples of rules are costs of transaction, required level of verification, how new bitcoins are generated, and the limit on the bitcoins that can be generated.

There is a set of rules on how the network operates. Only 21 million bitcoins can ever exist, and no more can be created after year 2140 – this rule acts as a controlled monetary inflation. Bitcoins can also be broken down to eight decimal places, so you can buy fractions of a bitcoin.

Why is it important?

bitcoin92The potential of blockchain technology has been debated widely, especially when it comes to finance, information and security. Bitcoin is a relatively new technology, and the software behind it is free to the public to build upon. Because it is finite and digital, it is argued that it is one of the first truly digital commodities. Since its introduction in 2008, thousands of bitcoin companies have emerged, with over 80 million dollars in VC funding pouring into the ecosystem. The bitcoin network has a AU$4 billion dollar market cap at time of writing.

Bitcoin as an asset class

As an asset class, bitcoin is difficult to define. Previous digital tokens were controlled by a third party, so never really got into the asset class category, they were usually pegged to a currency value and there may be limits on when and where these tokens can be redeemed.

Bitcoin is:

  • finite and takes effort to produce, similar to commodities like gold,
  • its value is set on free market open exchanges like shares,
  • it can be divided instantly and transferred around the world in fractions like digital money,
  • the transfer is irrevocable and peer to peer, like cash.

So the best asset class title for it is “bitcoin”.

school73History

Bitcoin first traded at .09c per coin in 2010 and currently sits at AU$300 per coin as of the time of writing. The price is not pegged to anything, but is discovered on open exchanges. On these exchanges people fill order books with prices they are willing to buy and sell at, similar to stock markets.

Why would you invest in bitcoin?

There are a few reasons that people see bitcoin as an attractive investment vehicle, we’ve listed some of them below, as well as some of the reasons why people hesitate. Remember this isn’t financial advice, just two sides of the coin.

Finite supply

The big pro is that there is a fixed, finite supply. Much like gold and other asset classes, bitcoins can’t just be spun into existence. Because of the strength of the distributed network, no one entity can tinker with the supply or limit. There are only 21 million bitcoins that can ever exist.

Utility

gear74It is argued by some that bitcoin’s utility will drive up the demand, and thus the value of these digital tokens. Hypersecure irrevocable token exchange being something that has many valuable real life use cases, such as:

Implications

Every facet of bitcoin could potentially be a billion dollar industry, but this does not mean every bitcoin could be worth a billion dollars. In a truly efficient market, bitcoin should be able to handle these non-monetary roles without a significant price increase. Another investment option may instead lie in businesses and new economies that benefit from the efficiencies brought about by the blockchain protocol.

Alternative money system

Many like to own bitcoin as a hedge against other monetary systems. The economies of the world are inextricably linked, so an alternative finance system that exists outside of the traditional one may seem like a good place to store some value. An example is the bank runs in Cyprus. When the local government indicated they may begin taxing 10% of personal accounts, waves of users purchased bitcoin as a way of hedging against their local currency.

Why shouldn’t you invest in bitcoin?

earthglobe23Something might go wrong

Don’t reach for your wallet just yet, there are plenty of factors to consider. Despite 20 years of cryptographic studies that suggest bitcoin’s protocol is unhackable, there could still be some hidden flaw. Something that turns a AU$4 billion market cap to zero. With our current understanding of cryptography this is unlikely, but it is still a possibility to consider.

Security and management

On the blockchain, you prove ownership of bitcoins through control of a private key (similar to a password). This makes data security very important. Holding bitcoin means protecting your private key in ways that involve some level of technical skill and cost. You are able to encrypt your private key offline, or trust a third party like CoinJar to store your bitcoins for you.

Volatility

The swinging price of bitcoin, or its ‘volatility’, is also a factor. Bitcoin trading is not for the faint of heart. Historically the price has fluctuated significantly, and seeing a 50% decrease in value in a day is not unheard of. This highly volatile market can be a benefit to skilled traders who can use the fluctuations to their advantage, however for many this does not make it an appealing investment.

Options to invest

Buy and hold

Buying bitcoin is the simplest way to invest, you exchange money for an agreed amount of bitcoin based on market rates. The market rates are dictated on open exchange, or you can also purchase off broker style market makers like CoinJar. If you buy bitcoin, you then need to hold bitcoin. You can set up an offline wallet (which you control, but requires high security) or use a third party wallet like CoinJar.

Mining

worker33As we mentioned earlier, transactions using the blockchain are verified by a distributed network of super-computers. If you contribute computing power to this distributed network, you will be apportioned some of the newly minted coins as a reward and incentive for processing the transactions. As more computing power adds to the network, the network adjusts so that the same amount of bitcoins are still generated relative to the increased computing power. This incentivises people to add more security muscle to the network. The result is that to generate profit from mining you need to buy large amounts of specialty gear and the margins are razor thin. Traditional computers simple do not offer enough power anymore.

Invest in a fund

Funds are emerging that own a particular amount of bitcoin and trade on open stock markets. Examples include GBTC, Second Market or the Winklvii’s ETF. This means you own shares in a company that holds bitcoin. This solves the security requirements, but then you pay brokerage and management fees on top.

Invest in a bitcoin company (or start one)

Bitcoin creates new models of transacting online and makes old models more efficient, which often brings profit. Many companies stand to benefit from the efficiencies of a distributed, hyper secure low-cost ledger. By investing in a company that is innovating in the space, or starting your own, you will be able to benefit from the technology without speculating on the commodity.

From this we can conclude a few things:

  • bitcoin has become a valid investment vehicle in the past few years
  • the fixed supply means it could be potentially lucrative
  • the concept is still experimental, so don’t invest your life savings
  • there are a lot of security and management considerations
  • you don’t need to buy bitcoin to ‘invest’.

It’s possible to invest in bitcoin, via technology, direct ownership or shares in an investment vehicle. It is not a get rich quick scheme, but it is ownership of tokens on a new type of value network that may or may not have huge utility in the future.

There are other avenues, like starting a bitcoin business, or investing in one that you predict will benefit from this type of technology. Whatever you choose to do, bitcoin is a financial force that can not be ignored. As for whether it’s an opportunity that can’t be missed? Only time will tell.

 

New features: Swipe auto-load and more…

There are now a few new additions to your CoinJar, thanks to your feedback!


Rename Accounts

Organise your CoinJar the way you like by naming your accounts. To do this:

  • From your Accounts list, click an account, 
  • Click “Actions”, and select “Edit account”,
  • Edit the account name, and  click “Save.”

coinjar_rename_account_action

 


Swipe Auto-Reload

Maintain the balance of your CoinJar Swipe! Auto-reload automatically refreshes your Swipe balance via your bitcoin account. To turn it on:

  • From your Account list, click your Swipe,
  • Click “Actions”, and select “Edit card”,
  • Turn on Auto-reload.

coinjar_swipe_autoload_action

 


Bitcoin Addresses and Payment Requests

We’ve made finding your bitcoin address and QR code easier and more accessible. To do this:

  • From your Account list, click your Bitcoin account,
  • Click “Actions”, and select “View address”
  • You can copy your bitcoin address, or click the QR code to open your desktop bitcoin app,
  • To make a payment request, click “Request”.

coinjar_request_action

 


Recover your Swipe PIN

Lost your PIN? No problem. To retrieve it:

  • From your Accounts list, click your Swipe,
  • Click “Actions,” and select “Recover PIN”
  • Follow the prompts!

coinjar_lost_pin_action

You can also quickly Top up Swipe, or report a lost card.
Need more information? Visit our Support Knowledge Base.


 

Save time and money by getting paid in bitcoin

This walk-through covers how you can use bitcoin, as a contractor, to get paid faster and lower fees on both ends. bitcoin15

The intended audience is contractors and service providers who have clients overseas or who provide services internationally. It covers not only how to accept bitcoin (that bit is easy), but how you can show your client the easiest way to take advantage of the Bitcoin network as well.

Case Study
I contract out as a writer, and was asked to cover the Inside Bitcoins conference. They had the option of international wire, PayPal or bitcoin. I chose bitcoin. I sent them my invoice (we denominated in USD), they sent me my fee in bitcoin at the market rate, and I had the money in my CoinJar instantly. No $25.00 wire fee, no international transfer delays. I invoiced then had the money that day. Because I use CoinJar I was also able to spend it on dinner that night using my Swipe card.

Step 1 – Get a wallet

For this example I’m using CoinJar, but there are plenty of services that do the same thing. The key aspects are that you can convert bitcoin to cash, instantly, and the bitcoin to cash exchange rate is better than the foreign exchange rates (CoinJar is 1%, so no problem).

Set up a CoinJar

bitcoin58Step 2 – Show your client

This is the tricky part, because it may be a conceptual leap for them. But if they’re interested then walking them through it is pretty easy.

First explain the benefits:

  • 5% – 10% cost saving (perhaps offer a discount)
  • Instant settlement

If you like you can help them find an exchange, making sure it:

  • Is reputable
  • Allows them to hold a cash balance
  • Allows them to buy bitcoin and transfer out
  • Offers a competitive exchange rate

You can even send them this guide on using bitcoin to send money overseas.

Step 3 – make the transfer

Here the client simply needs to:bitcoin67

  1. Top up their exchange account with cash on their end
  2. Convert their local currency to the agreed bitcoin amount
  3. Transfer to your bitcoin address

Bonus points if they use a service like CoinJar, which offers hedged accounts, so they don’t need to worry about price fluctuations in between conversion and sending.

It really is that simple. Set up your wallet, help them set up theirs, store the money as dollars and just use bitcoin as the plumbing. You’ll save time and money, and learn something new.

Want to learn more? Read our guide about using bitcoin as a cash backup overseas.

We halved our buy fee!

To ensure our users get the best value with CoinJar, we have cut our buy fee in half! This means you can now buy and sell with a flat 1% fee.

This is a step in our journey to make bitcoin services simple, affordable and easy to use. The fee change is effective as of today.

Buy now

For more information about our fees visit our knowledge base or email our Support team

Using bitcoin as a cash backup when travelling

Even the smartest traveller can lose their cards or have them blocked or stolen. Traveller’s cheques are an option but they are hard to get and use, and the fees are massive.

In this blog, we’ll go through how you can use CoinJar (or any other bitcoin service) to stay connected with your money back home. With a little know-how you can use bitcoin to access your money as cash, in any local currency, wherever you go.

Why bitcoin?

illu__learndot-single-BTC

Bitcoin is a distributed payment network that allows you to transfer value instantly and globally, with low fees. For this tutorial, we’ve used CoinJar but you can apply this to any bitcoin service that offers currency conversion and a wallet.

Step 1 – Set up your CoinJar

Set up is free and instant, you can use a CoinJar to hold cash, bitcoin, or hedge against major currencies.

Open a CoinJar

Step 2 – Deposit Cash

We accept deposits via BPAY. BPAY deposits can take 1 – 3 business days so make sure you complete yours before you head off.

Step 3 – Access your cash

There are a few options for accessing the funds in your CoinJar abroad:

illu__account__external__bank-alternateFind a bitcoin ATM

How do bitcoin ATMs work?

  • The ATM checks the current exchange rate for bitcoin in the local currency.
  • It then creates a quote, based on this exchange rate.
  • It displays a  QR code that says how much to pay, and where to pay to.
  • Your CoinJar then converts your money to bitcoin for the quoted amount and sends.
  • That value gets transferred and converted to the local currency instantly.

To note

  • This is still a new technology, don’t build all your travel plans around bitcoin just yet, we recommend this as a powerful option, and a good back up in case of emergencies.
  • You don’t even have to buy bitcoin, you just have to have a CoinJar (or similar service) with money in the account.

illu__account__aeroplaneOur users already use CoinJar to stay connected to their money, wherever they are. Read the about how one of our customers used CoinJar to access her Australian dollars in Japan when her cards were cancelled on a business trip. 

Stuck? Get help.

Next: Learn how to use bitcoin for remittance.

The return of monetary politics

In March, the UK government formally announced plans to welcome and regulate digital currency activity in the UK. The promise of research funding, police training, and pragmatic regulation are welcome first steps, but to what end? The focus in this area tends to fall on questions of innovation, competition, crime, and jobs, but there may be something much broader at stake, namely the question of deciding what the money of tomorrow will look like.

Money at its core is a claim on resources, though we rarely see it in those terms. A pound coin or a twenty-pound note comes infused with notions of power, tradition, identity, and stability, and in the process its core function gets buried. Credit cards and bank accounts go some distance in stripping money back down to its bare functionality, but in a manner that complements rather than replaces existing ideas around money.

Community-issued digital currencies such as bitcoin are less accommodating, not least by their being ‘not backed by anything’. Each bitcoin is a numerical balance in a public ledger and nothing more: no gold reserve, no government pledge, no material referent of any kind, money flattened into a database.

The 2009 launch of bitcoin — an anonymous act of guerilla semiosis from one of the Internet’s darker corners — resulted in two interesting and opposing challenges to the imagination within its community of users. The first was that bitcoin itself was mystified, its digital tokens elevated with metaphors of gold, coinage, and mining, a public ledger praised as the biggest networking innovation since the Internet, and a compelling origin story with an enigmatic lead character. But in the process, for a substantial community of geeks and enthusiasts, ‘money’ more generally was de-mystified. The premise is simple: if money is just a database designed to manage claims on resources, surely there must be a smarter way to run that database? Suddenly every parameter is adjustable. That was not the case with precious metal or paper, the physicality of those forms of money making it easier to leave them unquestioned — this purple piece of paper is worth £20 the same way this pint of milk is worth 50p, nothing about either of these things prompts us to question the nature of value or ownership, it feels natural for something physical.

“…if money is just a database designed to manage claims on resources, surely there must be a smarter way to run that database?”

Once we are talking about tokens in a database the game changes entirely, because everything can be questioned. Consider the political tug-of-war that is the carbon credit system: How many carbon credits should we create? Who should get newly created credits? Should we let them expire? Or accumulate interest? Or maybe erode over time instead? Can a thing own a carbon credit? Once we make something materially fluid it becomes politically fluid as well.

Since Bretton Woods we have had a relatively rigid monetary order built on the US dollar as a global reserve currency, initially backed by gold, and later backed by little more than inertia. Over the last few decades the monetary space has largely been depoliticised — central banks have become largely autonomous, and governments have been stripped of their rights to influence money issuance or interest rates. Most of these changes were welcome, monetary policy remains arbitrary but at least decision making passed from election-focused politicians to a cadre of reassuringly boring technocrats.

The financial crisis prised the clamshell of monetary politics back open. There are two ways to increase the money supply: get banks to lend more (thus creating debt-based money) or issue new monetary tokens (aka ‘printing money’). As interest rates hit zero and post-crisis economies yearned for monetary stimulus, central banks found themselves contorting to do what was always presumed to be illegal — arbitrarily printing more money.

While the revival of central bank activism addresses the panicked and practical question — how can we stimulate the economy right now — the digital currency space has been gestating in the background, a political meditation on more fundamental questions around money, albeit now framed as a grand database that records our collective claims on resources.

When creating a claim on resources, who should initially get that claim? The monetarist consensus dictated that nobody had an unearned right to claim resources, and money created via the lending process should be sufficient. While largely successful, this also led to the systemically unstable link between money supply and debt levels. That bedrock of debt was a key ingredient in the financial crisis, and the quantitative easing which followed has left monetary consensus in tatters.

As a result, more heterodox solutions are rising to prominence. Neo-metallists (gold bugs) take the atavistic view that value is still something we dig out of the ground, while neo-chartalists (such as Positive Money) argue that money should be issued directly by an arm of the state. Both have seen a post-crisis resurgence. Meanwhile the bitcoin protocol awards newly created units of money to those who support its payment infrastructure, while other digital currencies have experimented with awarding newly created units to community members, a sponsoring organisation, renewable energy producers, or even forestry projects.

Token allocation is not the only big question posed by virtual currency schemes: should a new money system be managed by a central authority or a dispersed community? The former promises efficiency, the latter resilience and transparency. Is money a public good, infrastructure, or a competitive service? Should transactions be free? Or reversible? And what kinds of messages or programmatic functions should we allow people to latch on to their money?

But the greatest debate around digital money hinges on its relationship to identity and access, how do we find the balance between transparency and privacy? We can imagine two extremes — a perfectly anonymous digital cash system (still a largely theoretical proposition) — or a hyper-transparent social currency where all transactions, participants, and infrastructure are in the public domain. The challenge, as with all the other big questions, is finding where in the spectrum in between we want to land.

This article was originally posted on www.respublica.org.uk on 25 March 2015.

The best bitcoin I’ve ever spent

I’ve bought a lot of stuff with bitcoin. Coffee, groceries, clothes… all very necessary but also quite ordinary. Last week, I signed up for a membership at Hubud, a co-working space in Bali and I paid for it with bitcoin. It was honestly the best bitcoin purchase I’ve ever made.

Why? The membership was priced in $USD, but since I was paying with bitcoin, I didn’t need to bother with the conversion fees. It was also instant, so my spot was confirmed immediately, instead of having to wait 3 days for my money to go through. It was also just awesome using bitcoin in an international transfer, because it worked so smoothly.

But the real reason was because I was just so productive at Hubud. Remote work is something I’ve never done before, so I was a little skeptical of how much work I’d get done, but it was worth it. I’m no digital nomad, and I was only there for a week but the change of scenery is refreshing from the big city life.

Several others from the CoinJar Team have visited Hubud before and here’s our top 8 reasons why you should too.

Bamboo is commonly used in Bali for its strength and sustainability as a building material. It’s a nice touch.
  1. No shoes
    Before you even step into the co-working space, you’re invited to leave your shoes at the door. Even though this may make you a little uncomfortable at first, it does lend to the comfortable, warm and welcoming vibe Hubud has.
  2. Better for your health
    Bali is hot and humid, and Hubud is an open-air working space. If you’re accustomed to climate controlled offices, prepare to sweat and embrace the natural fresh air. It’s a good reset for the body. And when you just can’t hack it, there’s an air-conditioned room.
  3. Convenience food
    There is a healthy organic cafe in Hubud with a salad bar, juices, smoothies, desserts and coffee. When it’s right next to you and so well-priced, healthy food choices are that much easier to make. Bali is known for its raw vegan and natural food offerings, and the cafe is Hubud is no exception. I highly recommend the two litre bottle of watermelon and lime juice and the coconut bliss balls.
  4. Insane global networking
    The people in Hubud are truly one of a kind. From Silicon Valley to Berlin, the members are all passionate professionals working on interesting projects. There are freelancers, entrepreneurs, career-shifters, startup owners, creative professionals, NGO workers, writers… It’s a networking haven, without the pretentiousness and awkward moments.
  5. The vibe
    Bali is a spiritual place, whether you’re at a tourist attraction, in a shop or at a co-working space. The vibe is calm, peaceful and other-worldly. It takes about a day or two to adjust to it, but it is seriously relaxing and quiet. And the view’s not too bad either.
  6. Visit monkeys during your lunch break
    I am not kidding, I didn’t believe it myself. Hubud is right next to the Sacred Monkey Forest Sanctuary, a big hit with tourists. If anyone pesters you about going overseas to work remote, you can tell them you’re going to Bali to hang out with a bunch of monkeys.
  7. Perspective
    It’s travel, work and play all in one trip. Enough said.
  8. Hubud accepts bitcoin
    And it makes a lot of sense for them. In fact, during my visit, I met several business owners in Bali who were looking into accepting bitcoin. When I asked Hubud’s co-founders Peter and Steve about why they accept bitcoin, their answer makes it very clear why.

“Our members operate and work transnationally and any way that they can pay for things easily and with low/no fees is huge for them and therefore us! One of our members, Gary, started the Bitcoin movement in Bali and we host Bitcoin Filter meet-up every Tuesday at Hubud.”

The need for bitcoin is most prevalent to me when I travel. The fees I pay for my traditional banking cards are exorbitant and I wish I didn’t have to rely on something that’s failed me so many times before. Especially for an island like Bali that attracts thousands of tourists a month, bitcoin just makes sense. Use cases like Hubud are prime examples of how powerful a global currency with instant and practically free transactions can be.

Still don’t get it? Read more on how bitcoin will change the unbanked economies, paying with bitcoin and accepting bitcoin as a business.

The outdoor seating area faces rice paddies


Article by Zhoe Low— Communications Strategist at CoinJar. Tweet her @zhoelow

Photos by Carol Da Riva available here under a Creative Commons Attribution 2.0.

Introducing CoinJar Touch for Android

Today, we launched our long-awaited mobile application for Android – CoinJar Touch. The native app mirrors the CoinJar web platform and lets you manage your CoinJar on-the-go, wherever you are.

CoinJar Touch is designed to be your everyday bitcoin payments app, convenient for instant payments to others and quicker transfers between your accounts.

Download CoinJar Touch for Android

 

account-list  Transfer


Features:

• Pay instantly to CoinJar usernames, Bitcoin addresses and scanned QR codes.
• Request payments from anyone via email.
• Store funds without volatility in Hedged Accounts (GBP, EUR, USD and AUD)
• Transfer between bitcoin and cash with low fees.
• Withdraw funds to supported bank accounts¹.
• Secure your CoinJar with a passcode and Data Wipe.
• View your balances with AUD, GBP, BTC, EUR and USD as a value reference currency.
• Get push notifications for deposits, payment requests and confirmations.
¹ Currently available to Australian customers only.

Install CoinJar Touch for Android

Need help? Take a look at our Support Knowledge Base article for CoinJar Touch.

For any more information about CoinJar services, please contact our in-house support team. We’d also like to hear your thoughts and feedback on our products and features on Twitter. For promotions, offers, product launches and more, subscribe to CoinJar’s monthly newsletter.

Now every Australian business accepts bitcoin

Today we’re pleased to announce the general release of CoinJar Swipe, Australia’s first bitcoin debit card. With Swipe, you can spend your bitcoin anywhere that accepts EFTPOS and withdraw your bitcoin as cash at any ATM in Australia.

CoinJar Swipe is convenient, easy to use, and built so you can use your bitcoin to pay for the everyday things, like your morning coffee and the bills. If you live in Australia and have a verified identity, sign in and order your first bitcoin debit card.

Order CoinJar Swipe

Artboard 2 FFFDFA

  • To order, there is a one time fee of $29.
  • To be eligible for CoinJar Swipe, you must be a verified CoinJar user.
    Not verified? Visit our identity verification portal.
  • Once ordered, your card will be delivered within 7-10 business days.
  • For more detailed information visit support.

Last year in September, we invited 100 members of our early access program, CoinJar DNA, to beta-test Swipe. It was well-received and using the beta-test feedback, our team was able to refine and improve Swipe for you today.

Here’s what our beta-testers thought of Swipe:

“With Swipe, I can now use Bitcoin to buy just about anything. The other day, I went out to the local Woolies and bought my lunch with bitcoin. Really, at the end of the day, I want to do everything that I already do with other currency, plus more with Bitcoin.”
Prashan Paramanathan, CEO, Chuffed.org

“I do like the fact that I can load my BTC onto the card and access the money immediately, as opposed to waiting for the obligatory 2 banking days to receive funds in my bank account. The process was pretty straightforward, receiving the card, activating it, loading money onto it, using the card to buy groceries.  All very easy. It’s definitely a step in the right direction to make Bitcoin more accessible for the masses.”
Daniel, DNA member

“Seeing it used in such a mundane context made it feel so real, and I started feeling really excited about the possibilities in this space.” 
Anthony, DNA member

“My favourite moment of using Swipe would be the time I ordered a meal and had my bank keycard fail. It would’ve been awkward had my Swipe not come to save the day.”
Gerard, DNA member

We look forward to hearing what you think of CoinJar Swipe. Share your feedback with us on Twitter or send us a support request.

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Order CoinJar Swipe

For more information, including the Product Disclosure Statement and the fee schedule for this product, visit our Support Knowledge Base article.

Introducing Hedged Accounts

Today, we’re excited to launch CoinJar’s newest feature for the everyday bitcoin user, Hedged Accounts. Hedged Accounts protect you from fluctuations in the bitcoin price by pegging your bitcoin to AUD, GBP, EUR or USD. They are available to be added to your CoinJar now.

Open a Hedged Account

 

150209-Hedged-Accounts-Overview-ForBlog

Hedged Accounts are great for people who want to start out with bitcoin for practical purposes but don’t want to manage it actively or worry about price volatility.
– Asher Tan, CEO

This new feature is particularly useful for businesses or charities that accept bitcoin as they can make business plans and budget without worrying about its volatility. Hedging their bitcoin gives them the assurance that their funds are stable, without having to transfer it to cash.

How Hedged Accounts work

A CoinJar Hedged Account allows you to hold a variable amount of bitcoins that have a fixed value in terms of an alternative currency (GBP, AUD, EUR, USD). This protects your bitcoin from price fluctuations.

CoinJar Hedged Accounts Infographic - AUD-2

 Need help? Read the Frequently Asked Questions article on our CoinJar Support Knowledge Base.