Top Cryptocurrencies

Bytecoin 101: A complete guide to the anonymous coin

Just like Ethereum and other top cryptocurrencies, Bytecoin was launched in 2012 with the aim to fill in Bitcoin’s “short comings”. The coin was launched with a further look into privacy and is currently one of the top privacy coins.

What is Bytecoin?

According to the official Bytecoin website, Bytecoin is a decentralized cryptocurrency with an open source allowing everyone to take part in its development.

The coin prides itself of both privacy and security and is one of the best options for those willing to keep their finances private.

Just like Monero and other top privacy coins, Bytecoin is build on Cryptonote. Cryptonote is a technology created to solve the problems faced by Bitcoin and other crypto assets like Ethereum. It adds an additional layer of privacy and decentralization.

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Core Features of Bytecoin

Decentralization

Bytecoin works on a blokchain that is hosted by multiple nodes around the world. This means no single individual or institution can control more than 50% of the network, not even the original Bytecoin developers.

Untraceable transactions

This is one the shortcomings many believe Bitcoin fell short of. Many think Bitcoin’s transactions are untraceable. However, this is not the case as Bitcoin transactions are pseudo-anonymous and that is where Privacy coins like Bytecoin come in.

Just like Monero, the most popular privacy coin, Bytecoin transactions use ring signatures to make it difficult to link any single transaction to any one party.

For example, if Bob was to write John a cheque of $10,000. By the time John arrives in the bank, the teller might possibly link that cheque to Bob if he or she knows Bob’s signature.

However, with Ring signatures, not only Bob but multiple people will put their signatures on the cheque. A combination of these signatures forms a new signature. This way, the teller won’t be able to link this transaction to Bob.

Unlinkable addresses

The addresses of Bytecoin are unlikable and untraceable. Therefore, a single address cannot be linked directly to anyone.

This is because Bytecoin allows users to generate one time addresses from a single set of keys.

How to buy Bytecoin

Bytecoin can be bought with both cryptocurrencies and with the use of Fiat. However, not all exchanges offer a fiat payment option. Below, we shall take a look at both options.

Buying BCN with cryptocurrencies

Some exchanges, even some of the largest like Binance do not support fiat to crypto purchases. This might make it difficult for someone who wants to buy and own Bytecoins via a specific exchange that doesn’t support fiat.

Buying Bytecoin directly with Fiat

To buy and Hold Bytecioin via an exchange where fiat currencies like USD or euro are not accepted, It is advised to first go through an exchange such as Coinbase. Coinbase however, doesn’t support Bytecoin but serves as a medium through which the cryptocurrency can be bought.

This can be done through 5 simple steps;

  • Create a Coinbase account
  • Connect a debit card to the account
  • Buy either Ethereum or Bitcoin directly from the exchange
  • Send the Ethereum or Bitcoin bought to an exchange supporting Bytecoin
  • Convert the Ethereum or Bitcoin to Bytecoin
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Some of the exchanges where Ethereum or Bitcoin can be “swapped” for Bytecoin include; Poloniex, Cryptopia and Binance.

Buying Bytecoin directly with Cryptocurrencies

As seen above, not all exchanges offer a fiat deposit option for those willing to invest in Bytecoin, others do. Below, we will review a few cryptocurrency exchanges that offer cryptocurrency deposits.

Binance:

This is one of the largest cryptocurrency exchange in terms of trade volumes. Binance is highly prefered by many cryptocurrency traders but also investors in cryptocurrencies.

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Nevertheless, buying BCN from such an exchange with the use of a credit or debit card is not possible.

Therefore, with the use of Coinbase as a medium, users can be able to buy BCN on Binance by transferring Bitcoin or Ethereum from Coinbase to Binance.

Changelly:

Changelly is another cryptocurrency exchange that supports both fiat and cryptocurrency deposits. Buying BCN from such an exchange can be a direct and straightforward means of owning Bytecoin as it doesn’t require users to go through a medium such as Coinbase.

However, because the exchange supports over 80 other cryptocurrencies including Bitcoin, Ethereum and Litecoin, buying BCN can also be done by sending Bitcoin or Ethereum from another wallet. Below you can convert Bitcoin to Bytecoin via Changelly.

Bytecoin can also be bought through Changelly with the use of credit cards.

BCN wallets

After buying and owning BCN, it is highly important to store your Bytecoin on a cryptocurrency wallet. It is also advised never to store coins on an exchange as coins stored on an exchange can easily be stolen if the exchange gets hacked.

Below, we will review a couple of wallets where you can store your BCN.

BCN wallet:

This is the official Bytecoin wallet provided by the team with all traditional wallet features such as sending and receiving button, an address book for ease in accessing contact and a display screen where balances can be easily seen.

This is a desktop based wallet and also offers the possibility of mining BCN via the wallet.

It can be accessed via Windows, Linux and OSX operating systems. It can also be installed on Android phones through Google play store.

FreeWallet:

This is an unofficial wallet where BCN can be stored in. The advantage of Freewallet over the official Bytecoin wallet is that users can also install the wallet to their IOS mobile phones.

The wallet has also been endorsed by the Bytecoin team and also supports other coins.

The wallet also takes security to another level with its 2factor authentication option, it’s PIN option and the fact that users can also access their wallets with fingerprints.

However, the wallet is said to store funds and private keys on a centrally hosted account making it prone to hacks and corrupt service providers.

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