BitShares Review — The Complete Guide

Investing and trading in cryptocurrency entails finding the next new coin that will bring financial success to you. This is why rising cryptocurrencies are always welcome in the field, continuously creating the next generations of cryptocurrency.

The question is, will BitShares become the next addition to your investment portfolio? Many crypto traders struggle to grasp how expansive cryptocurrency is, regardless of whether they are just starting out or they’ve been in the industry for years.

After all, there are more than 4,000 cryptocurrencies in existence as of 2021. That is astronomical compared to the recognized 180 fiat currencies in the world.

So ready to dive into BitShares? Cryptocurrency can get complicated, but it doesn’t have to be. In this beginner’s guide, we’ll help you understand what BitShares is, how it works, and if it’s a worthy investment for you.

BitShares Overview

As an overview, there are ups and downs when it comes to the BitShares technology. Here’s our fast-tracked review of BitShares:

Pros

  • BitShares is decentralized. Under their exchange, users will have complete control over their security. It’s also strategic because, in cases of a security breach, it can only be on one user and not affect the whole chain.
  • Less volatile. The value of BitShares is more tied down to real-world markets since it’s treated as security or collateral. Unlike other cryptocurrencies, BitShares’ values are not totally based on the scale of community involvement. This means volatility is taken away in BitShares.
  • Ease of trading. BitShares allow their users to trade any amount at any money, regardless of their country location or time.
  • Fair trading. BitShares can execute trades within seconds, and since the platform is decentralized, it doesn’t have high-frequency trading. That ensures that all traders have equal footing within their platform.
  • Secure platform. One of the essential things in crypto trading is security. In BitShares, every account and every transaction is backed up.
  • Complete financial freedom. When it comes to trading, one of the barriers to entry is the high minimum trading amount. This is why platforms would have to approve your account first to check if you have the financial capacity to trade. In BitShares, third-party approval is not required, giving you ultimately the financial freedom and control to trade within your means.

Cons

  • Limited real-life use. Unlike other established cryptocurrencies like Bitcoin and Ethereum, BitShares have limited reach in real-life transactions. It’s a relatively new cryptocurrency, so don’t expect that you can pay with BitShares in your online transactions soon.
  • Can be too advanced for some. There is a steep learning curve that crypto traders would have to face in BitShares. Considering that it is a decentralized platform and the only way you can trade with it is through exchanges, users might need some time to adjust.
  • The interface is not yet fully developed. This is a common complaint from BitShares users. The platform’s interface is not the most user-friendly out of all, and it’s a bit touch-and-go considering that BitShares is relatively new to the market.
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The Takeaway

Certainly, there are pros and cons to be considered when it comes to BitShares. There is no doubt that the venture can be profitable with the right trading strategy, but ultimately, it all boils down to your preference when it comes to cryptocurrency trading.

More so, users should remember that BitShares is still undergoing its early launches. So expect a few bumps in the road. However, the potential is very high.

What Is BitShares?

cryptocurrencies

BitShares is a crypto equity service that, instead of focusing on being a currency like other coins, is mainly used as collateral. BitShares tokens (BTS) are used in decentralized financial transactions like banking, contracts, currency rails, and more.

Essentially, BTS is tied to the real-life market. Other cryptocurrencies get their value from user engagements —the supply and demand of the crypto market. But with BitShares tokens, since they are used as collateral, the value comes to real-life market demands as well as crypto engagements.

Currently, BitShares has a total supply of 3,600,570,502 BTS  with only around 2.99B in circulation. The highest price recorded in BitShares was in January 2018, with an equivalent of $0.973504. The platform is currently undergoing its 2021 relaunch.

How Does BitShares Work?

BitShares describes itself as the “tech running ahead of its time.” They are the first platform running on Delegated Proof-of-Stake Consensus (DPoS) blockchain technology fully tied to a decentralized self-governance.

Through the DPoS algorithm that BitShares developed, BTS traders use smart coins, which are market-based assets for their transactions. These smart coins are connected to real-world fiat currencies, unlike other cryptocurrencies, where their values are based on the scale of the users’ involvements.

As a result, the value of BTS is less volatile compared to other cryptocurrencies. BitShares is also more predictable and stable. This makes it ideal for financial transactions like investments and banking.

When it comes to the process of crypto exchanges, platforms would usually handle issuing and bookkeeping at the same time. This makes the whole transaction prone to mismanagement or breach attacks. 

Under BitShares, this problem is addressed. Through the use of smart coins as collateral, counterparty risks are lessened with the use of decentralized exchanges. Gateways are used for trading assets in BitShares which are two-way portals that are independent of each other.

These portals are responsible for buying and storing the coins directly in your wallet.

In terms of the user’s coin wallet, BitShares simplified the process. Other cryptocurrencies use randomly generated strings of letters and numbers that make it a pain to transact with. Any typographical errors would compromise the transaction, not to mention that it’s impossible to remember.

Instead, the BitShares wallet address uses your username. It’s simpler and easier to manage without compromising its security.

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How to Buy BitShares?

As we’ve discussed, BitShares is a decentralized platform that banks on the rationale of independent trading that is not subject to any financial control of third parties.

That means you can only trade BitShares peer-to-peer as there are no third-party cryptocurrency platforms that will allow their users to buy BitShares directly.

There are two ways for you to buy BitShares. You can do so directly on the BitShares website or via cryptocurrency exchanges that offer BTS.

If you want a direct and no-fuss transaction, directly going to the BitShares website might be preferable. However, your trading engagements are limited.

But if you’re looking to crypto trading as a whole and see yourself trading other cryptocurrencies than BTS, then going to crypto exchanges is the process we recommend.

Both processes are easy enough. Decide which one you’ll go with and follow the necessary steps below.

Buying BitShares Directly

1. Create a BitShares account.

To start, go to the BitShares website and scroll down to the “Create Account” button.

This will open a new tab. Wait for a couple of seconds for the security check to confirm. Choose your preferred language, then click “Create Account.”

Essentially, you can also create an account using their advanced form. There’s essentially no difference between the two —the wordings are different, but the content is still the same. Looking through the advanced form might give you an insight into why certain information is needed.

2. Create a Local Wallet via BitShares

Along with the account creation, you’ll be asked for an account name. This account name is public and will be used in your BitShares transactions. This is essentially your wallet “label.” For free accounts, BitShares puts a limit to which characters you can use for your wallet.

You should have at least eight characters only containing consonant letters.

The system will generate a string of letters and numbers for your password. Safely store it by copying it and pasting it on a secured document or write it down. Click the button beside it to copy the password.

It’s IMPORTANT that you have a copy of your password. You will lose access to your funds if you lose your password. No one can recover it (not even BitShares itself).

Opening your first account on BitShares is free. Succeeding fees are charged for multiple accounts.

3. Explore the BitShares dashboard.

Now that you have your account, you’re ready to go! Before trading, take the time to explore the BitShares dashboard and learn the ropes first so you’ll be able to make sound trading decisions. You should also consider upgrading your account for a fee to remove the limits of your involvement.

Buying Bitshares via a Crypto Exchange

Crypto Exchange

The most common way to trade BTS is via an exchange. Not all crypto exchanges allow a direct exchange of fiat currency to cryptocurrency, so you might need to buy Bitcoin or Ethereum first before trading it to BTS.

But if you found a cryptocurrency exchange that allows direct fiat currency purchase, go directly to Step Five.

1. Look for a cryptocurrency trading platform.

There are tons of cryptocurrency trading platforms available online with minimal to no fees. Choose your preferred crypto trading platform and create an account.

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2. Open a coin wallet.

You need a wallet to store your cryptocurrency, so go ahead and open one. Usually, your crypto trading platform would have its own wallet or a third-party affiliation.

When choosing a coin wallet, check if there are any transactions or hidden fees. It’s also worth researching the security protocols that they have.

Make sure that you have all the information securely stored somewhere. Your wallet will NOT BE RECOVERED once you lost your username or password. That means all the content inside it will be lost.

3. Deposit funds to your wallet.

Once you have your wallet, deposit your funds through their approved channels. Usually, wallets will allow you to deposit money through PayPal, bank accounts, and other digital wallets available in your country.

4. Purchase Bitcoin, Ethereum, or other cryptocurrencies.

Now that you have your funds, you can now use your money to purchase a cryptocurrency that you will use to trade with BTS. We highly recommend using Bitcoin or Ethereum because they’re the most common options in exchange markets. Their value also doesn’t fluctuate by mere hours.

5. Trade BitShares through a cryptocurrency exchange.

As we said, there are no trading platforms that offer direct purchases of BTS. So you have to resort to cryptocurrency exchanges to trade BitShares.

Choose a cryptocurrency exchange that will suit your trading and financial needs. Then, deposit your BTC or ETH from your wallet to the exchange. If you found an exchange that offers other deposit options, then you can go ahead and input money into your account.

Once you have your exchange account funded, you can now go ahead and trade BTS through their platform. Various exchanges have different methods to trade, so make sure that you do your research and explore the platform to get your bearing.

Where to Buy BitShares?

There are a lot of crypto exchanges that you can resort to for BTS trading. Here’s a list of them, including their fees (if any) and deposit methods:

Binance

Cryptocurrencies available: 170+

Deposit methods: AdvCash, Bank Transfer, Crypto, Etana, iDEAL, Mastercard, VISA

Fees: Trading fee (0-0.1%) and withdrawal fee

Bittrex Global

Cryptocurrencies available: 273

Deposit methods: Bank transfer, credit card, cryptocurrency, debit card

Fees: Trading fee (0.25%) and withdrawal fee

Poloniex

Cryptocurrencies available: 115

Deposit methods: Credit card, cryptocurrency, debit card, Simplex

Fees: Trading fee (Maker: 0-0.125% & Taker: 0.04-0.125%)

YoBit Cryptocurrency Exchange

Cryptocurrencies available: 1427

Deposit methods: Cryptocurrency

Fees: Deposit and withdrawal fees

Huobi

Cryptocurrencies available: 218

Deposit methods: AdvCash, Cryptocurrency, SWIFT, Wire transfer

Fees: Trading fee (Maker: 0.2% & Taker: 0.2%)

Conclusion — Is It investment-worthy?

When it comes to investing and trading in cryptocurrencies, there will always be accompanied risks. But so does the returns.

So is it worth investing in BitShares? Well, that’s really up to you and your trading methods and strategies. We highly recommend doing your due diligence in research and easing your way into it so you won’t incur crippling losses, and you’ll have the opportunity to get your bearings with it.

But as we’ve seen, BitShares is a pioneer in its own right. If there’s anything that crypto trading has taught the industry, innovations are worth investing in.