A beginner’s guide to Bitcoin Private: how it works and how to buy BTCP in India.
Launched in February 2018, Bitcoin Private (BTCP) aims to offer a few key advantages over bitcoin, including privacy, decentralisation and faster transactions. Created from a fork-merge of bitcoin (BTC) with Zclassic (ZCL), it was issued using a 1:1 airdrop to BTC and ZCL holders.
As one of the world’s 50 largest cryptocurrencies by market cap at the time of writing (April 2018), Bitcoin Private has attracted plenty of attention from the wider crypto community. If you’re thinking of buying BTCP, read on to find out where you can access this new digital currency and the steps you need to follow to complete your purchase.
Where to buy Bitcoin Private
Bitcoin Private is currently listed on a limited number of exchanges, including:
- Trade Satoshi
A step-by-step guide to buying Bitcoin Private
If you want to know how to buy Bitcoin Private, check out this simple guide:
Step 1. Register for an account on a cryptocurrency exchange that offers BTCP in a currency pairing
The first thing you need to know is that Bitcoin Private isn’t listed on every possible cryptocurrency exchange, so you’ll need to search for a platform that offers this new digital currency in one or more pairings. Once you’ve found a suitable site, sign up for an account by providing your email address and creating a password.
Depending on the exchange you choose, you may be asked to provide personal information (such as name, address and contact details) as well as proof of ID to satisfy Know Your Customer (KYC) requirements.
Don’t forget to also enable two-factor authentication on your account, as this provides an extra layer of security for your funds.
Step 2. Deposit funds into your account
It’s currently not possible to exchange fiat currency (such as Indian Rupees) for BTCP. Instead, you will need to exchange another cryptocurrency listed in pairings with Bitcoin Private, such as bitcoin. If you don’t already own any bitcoin, check out our how to buy bitcoin guide. Log in to your account and check your wallet address, then copy that address to transfer BTC to your account.
Step 3. Buy BTCP
The final stage of the process begins when you log in to your account and navigate to the exchange or markets section. You will then be able to search for BTCP pairings and click on your desired pair, such as BTCP/BTC.
Click on the “Buy BTCP” button and enter the specifics of your transaction, such as how much BTCP you want to buy or how much BTC you want to spend. Finally, take a moment to review all the details of your purchase before confirming it.
How to sell Bitcoin Private
If you want to sell your Bitcoin Private holdings, the process for doing so is very similar to that outlined in Step 3 above. Of course, you’ll need to make sure to look for the “Sell BTCP” link on your chosen exchange.
It’s also important to point out that cryptocurrency exchanges simply don’t offer every possible currency pairing, so you may not be able to directly exchange BTCP for the currency you want.
Which wallets can I use to hold Bitcoin Private?
While you do have the option of storing your BTCP on an exchange, this exposes you to a number of security risks and is not recommended for long-term holders. Instead, you can move your coins into a secure wallet that is compatible with BTCP.
On the official BTCP website, you can find links for a full-node desktop wallet or to help you create a paper wallet, while the coin is also supported by the Coinomi mobile app and an Electrum wallet.
How Bitcoin Private works
Bitcoin may be the biggest cryptocurrency in the world by some margin, but that doesn’t mean it has escaped criticism for several shortcomings, which include:
- The absence of privacy.
- Slow transaction processing times.
- High transaction fees.
- Centralisation of mining.
Bitcoin Private was launched with the aim of overcoming these problems. A fork-merge of bitcoin and Zclassic, BTCP is designed to combine the former’s security and high standing in the community with the latter’s privacy features.
On 28 February 2018, BTCP was airdropped on a 1:1 ratio to BTC and ZCL holders – in other words, 1 BTCP for every BTC and ZCL. It uses a different mining algorithm to bitcoin, Equihash, and offers a larger block size and shorter block time than the world’s biggest digital currency. To provide private and anonymous transactions, it uses zk-SNARKs, a privacy technology originally implemented by the Zcash Foundation.
How does Bitcoin Private differ from bitcoin and the other forks of the world’s best-known cryptocurrency? Check out the table below to see how they all compare.
|Bitcoin Private||Bitcoin||Bitcoin Cash||Bitcoin Gold|
|Total supply||21 million||21 million||21 million||21 million|
|Block time||2.5 minutes||10 minutes||10 minutes||2.5 minutes|
|Difficulty adjustment||Every block||2 weeks||Every block||Every block|
What to consider when buying BTCP
Cryptocurrencies are not only notoriously volatile but also highly complicated, and there are many factors that can play a part in determining future price movements. With this in mind, make sure to undertake a careful assessment of any coin or token before buying.
If you are thinking of purchasing any BTCP, remember to consider the following factors first:
- Supply. According to CoinMarketCap, at time of writing (17/04/2018) the circulating supply of BTCP was 20,403,830, out of a total supply of 21 million coins.
- Availability. BTCP is only listed in currency pairs on a small number of exchanges. This could potentially not only have a negative impact on public perception of the coin’s credibility, but could also make it harder to access for new cryptocurrency buyers. However, more listings are expected shortly.
- Privacy. The popularity of privacy coins such as Monero (XMR) demonstrates that there’s certainly a demand for currencies that can offer anonymous transactions. By using zk-SNARKs, Bitcoin Private payments are published on a public blockchain, but the details of the sender, recipient and other transactional metadata cannot be identified.
- Team. Bitcoin Private was originally proposed by Zclassic founder Rhett Creighton on Twitter. You can find more details of the rest of the development team on the coin’s official website.
- White paper. If you want to know more about the goal of Bitcoin Private and the technology behind this new cryptocurrency, check out its white paper.
- Competition. One key factor that could impact on the level of widespread adoption Bitcoin Private achieves is the competition it will face from other cryptocurrencies. Not only will it need to compete with bitcoin and the several other bitcoin hard forks for adoption, but it will also be compared with privacy coins like Monero and Verge (XVG).
By considering these and a range of other factors, you’ll be well placed to make an informed decision about the merits or otherwise of buying BTCP.
Disclosure: At the time of writing, the author holds IOTA and XLM.