What is Startcoin?
A Beginner´s Guide to Buying, Selling, Using, and Mining Startcoin:
An In-Depth Startcoin Guide by Black Chip Poker
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A large number of digital coins have special features and functions beyond their use as a transaction medium. One example of this is Startcoin (START), a digital currency that is specifically designed for crowdfunding. The team has created an innovative way to reward Startcoin holders beyond the equity received from investing in startup companies and projects.
What is Startcoin?
First and foremost, Startcoin is a blockchain. A blockchain is a decentralized database or ledger that stores a history of all transactions that occur on the network. A fundamental aspect of any blockchain is its decentralization, meaning that it functions apart from a central government or bank. So who controls blockchains? In essence, they are controlled by the sum of their users. Each user has the opportunity to audit and verify the transactions that take place on the network. This ensures the highest level of accountability.
Additional information on Startcoin can be found online. Startcoin’s Reddit page is an especially helpful place to begin as the site contains a wide variety of discussions, Q&A’s, and expanded definitions on topics related to Startcoin and blockchain technology.
How Do I Buy Startcoin?
There are two ways users can buy Startcoins. It all depends on which fiat currency is being used. Startcoins can be bought directly with Euros by going to the LiteBit exchange. Once the START option is selected, users determine how many coins they want to purchase and then choose their payment method. The exchange accepts a majority of payment types, including bank transfers and wires.
If, however, Euros are not the fiat currency of choice, users must take an additional step to complete the purchasing process. They must first register and link their wallet with a cryptocurrency exchange like Bittrex. After funding the exchange account with cash or with a credit card, they must buy Bitcoins with their fiat currency. Then, Bitcoins can be used to buy Startcoins. Because there is no way to convert a fiat currency like US dollars, for example, into Startcoins, the additional step must be taken.
How Do I Turn Startcoin into Cash?
To turn Startcoin into cash, users must follow the reverse process of the steps outlined above. For Euro users, coins are sold to LiteBit in exchange for Euros or other coins. For all other users, Startcoins must be converted back into Bitcoins, and then sold in exchange for a fiat currency. Once the trade has taken place, the fiat currency funds can be transferred to a traditional bank account. Then the cashout can be completed by withdrawing the money from an ATM.
How to Use Startcoin
Like with other cryptocurrencies, Startcoins can be utilized as an investable asset. Investors can purchase Startcoins with the hope that their positions will rise in value. Typically, Startcoin investors will follow one of two strategies.
The first strategy is a longer term bet on the future success of Startcoins and the StartJoin platform. In this case, investors purchase Startcoins and hold them. This is a simple buy and hold strategy. The focus is on the long term, rather than short term price fluctuations.
The second strategy involves more active trading. Rather than buying and holding Startcoins, traders seek to anticipate short term price movements and profit off of quick price appreciations. Traders move in and out of positions at a much higher pace than buy and hold investors.
Startcoin’s decentralized nature means that its price cannot be controlled by a central bank. Thus, investors don’t have to worry about monetary policy affecting exchange rates, nor do they have to worry about central bankers manipulating the currency’s price.
Startcoins can also be used as platform tokens within the StartJoin crowdfunding community. Startcoins allow users to create, fund, or share projects and / or startups with the crowdfunding community. In doing so, StartJoin users have the ability to promote popular projects which will be displayed on StartJoin’s leaderboard.
What is Startcoin Mining?
Startcoin mining is the process whereby bundles of transactions, called blocks, are verified and added to other blocks of transactions, forming a blockchain. The job of a miner is to find and verify a block. This is done by solving a set of mathematical problems using a formula. When the problems are solved, the block is added to the blockchain. Through the mining process, all participants are able to independently discover and verify the transactions on a blockchain. For their efforts, Startcoin miners are compensated with Startcoins. Miners can use mining calculators to determine the processing power needed to mine a block, as well as its profitability.
Miners can mine alone or in groups called mining pools. Mining alone typically comes with less processing power, but the profitability percentage is greater. On the other hand, mining in pools comes with more processing power, but a lower profitability percentage because the reward is split between all of the miners.
How to Mine Startcoin
To mine Startcoin, users must first download a Startcoin compatible wallet. This can be accessed directly on Startcoin’s website. Next, they must download applicable mining software, and then they can begin the process described above. As more coins are created, Startcoin’s market cap will rise. This may also influence other investors to begin buying Startcoins, further expanding the market cap. Thus, miners have the ability to earn more tokens and watch the tokens appreciate in price. In this case, the miner’s profitability will increase rapidly.
Though it is not technically mining, users with one hundred or more Startcoins on StartJoin will receive a free coin every week. In a sense, this is similar to Proof-of-Stake mining–coins are rewarded simply for holding coins.
How will Startcoin Scale?
One aspect of blockchains that has plagued even the best is their lack of scalability. Because of their design, most blockchains can only process a limited number of transactions per second, sometimes causing a large backlog that slows down the network. This can pose a problem for cryptocurrencies like Startcoin. Though the company has not announced plans to further scale the blockchain, Startcoin currently has sixty second block times, so transactions can be confirmed within one minute. Compared to other digital coins like Bitcoin, this is remarkably fast.
Investors who want to spice up their investment portfolios should consider adding Startcoins. The coin has the potential to appreciate in price, much like a stock or bond, while also providing a type of dividend, as described above. Additionally, Startcoins can be used within the StartJoin community, giving investors a practical way to further invest their crypto assets.