What are Bitcoin and cryptocurrencies?
Virtual currencies are a digital payment method and system. Cryptocurrencies in turn are virtual currencies based specifically on cryptography. There are currently over 2000 different cryptocurrencies, and new ones are generated constantly. The most known example is Bitcoin, but there are also other alternative cryptocurrencies called altcoins and tokens.
The altcoin term refers to all cryptocurrencies that are alternatives to Bitcoin and have their own blockchain. Tokens in turn are created on top of an existing blockchain or other decentralised ledger. The most popular among such platforms is Ethereum.
What is Bitcoin?
Bitcoin is the world’s first decentralised cryptocurrency – a payment method and system operating over data networks – controlled only by its users. Bitcoin is based on an open code and decentralised technology called blockchain, whereby it cannot be censored or controlled by any state, central bank or other party. Using Bitcoin requires no permission from anyone and no external party can interfere in users’ bitcoin transactions. Bitcoin can be traded for almost any service or goods and is used in more countries than for example dollars or euros.
What is Litecoin?
Litecoin is one of the most established and used currencies among so called altcoins. Like its name suggests, Litecoin is “lighter” than Bitcoin and meant for smaller and faster transactions. Litecoin was created in 2011 and the underlying technology is very similar to Bitcoin. Litecoin is often used as a test platform for new changes implemented in Bitcoin.
What is Ethereum?
Ethereum is called a second generation cryptocurrency, which aside payment also has other uses.
Ethereum is an entire ecosystem, which can be depicted by the words platform and framework. Ethereum provides an environment in which anyone can create their own cryptocurrency or build dApp (decentralized App) solutions for smart contracts. Ethereum is by far the most known project of this platform category. Nowadays it already has several competitors, such as NEO, EOS and Cardano. Despite grown competition Ethereum remains a superior option for organizing ICO (Initial coin offering) projects.
You can acquaint yourself further with Ethereum on Coinmotion blog.
What is XRP?
XRP is a virtual currency administered by the U.S.-based Ripple Labs. XRP intends to provide a more effective and cheaper version for traditional transactions and exchanges between banks.
The Ripple payment network is a network created for the use of payment providers, banks and other financial operators. Its ecosystem is meant to function as a platform whereby users can exchange anything with value for some other product with value.
You can read more about XRP here.
How are cryptocurrencies taxed?
Any profit gained from selling or trading cryptocurrencies is considered taxable income in Finland and many other countries. Profits can be counted based on the user’s cryptocurrency trading history. In Coinmotion you can see your customer history from the Wallet page and it can also be downloaded as a separate file.
Every customer is responsible for their own tax declarations, as Coinmotion does not file taxes on behalf of their customers. You have to be aware of the laws in your country and take care of your tax duties accordingly.
Many countries still have unclear laws regarding cryptocurrency taxation, so we ask you to contact local authorities in case any questions arise.
How do I store bitcoins and other cryptocurrencies safely?
When used correctly, Bitcoin is by far the safest way to store money ever invented by humanity. Safe storage in its simplicity means that the private key used for controlling funds does not disappear or end up in wrong hands. The safety of storing one’s private key depends on the wallet’s technical properties and the user’s actions.
You can read Coinmotion’s article on how to store bitcoins safely.
How do I start trading cryptocurrencies?
The first step in cryptocurrency investing is the same as any other: study the investment product carefully before making a decision. When you are familiar with the product you can avoid surprises, since you know what to expect from course development and the investment is handled and stored safely.
The safest way to start investing is Bitcoin, since it is the oldest and most reliable cryptocurrency instrument. Smaller altcoins also provide opportunities, and it is definitely worth studying them as well.
What is Coinmotion?
Coinmotion is an international Finland-based service where you can buy, sell, store and use cryptocurrencies fast and easily. Coinmotion also provides additional services for investors and merchants as well as a private banking service. Creating and owning an account is completely free of charge.
Why should I use Coinmotion?
Coinmotion is more than an exchange service, since it also provides a safe storage place for your cryptocurrencies in addition to other useful features. In Coinmotion you can:
- Store funds in a top-secure Vault protected by a time lock
- Send cryptocurrencies to other Coinmotion users instantly without fees
- Send cryptocurrencies outside the service
- Exchange cryptocurrencies for euros and vice versa instantly
- Make limit and stop orders at certain prices
- Transfer euros to and from your bank account
- Make an ongoing saving plan
Coinmotion is a service provided by Prasos Ltd, complying with current Finnish law. Prasos has over 7 years of experience in safely managing customer funds both for Finnish and international customers.
How does Coinmotion work?
A user creates a Coinmotion account and verifies one’s identity. After the user has been verified, one can buy, sell and use bitcoins and other cryptocurrencies without restrictions. Cryptocurrencies can also be transferred outside the service or left in storage. Coinmotion also provides the opportunity to store cryptocurrencies in a top-security Vault service behind a time lock.
Is Coinmotion safe to use?
Using Coinmotion is extremely safe. We take every measure to ensure our customers a secure storage place for funds. For this reason most customer funds are in a safe multisignature offline storage. This means that no single person can alone transfer the funds, as it always requires a digital signature by several parties.
How do I start using Coinmotion?
You can start by creating a Coinmotion account. After the creation and verification customers can use all of Coinmotion’s features, such as transfers, trading and safe storage.
Where can I get help for using Coinmotion?
On our support page we have collected advice for the most common questions regarding Coinmotion. A majority of our customers’ problems can be solved through the support page. The page also has a search field in which you can with a few words specify the subject of your question. If you are unable to find a solution through the support page, you can also contact our customer service.
Coinmotion’s message service
The message service is the primary customer service channel. The message service is protected and only works for users logged in to the service. Messages received through the service can safely be verified to be sent by a real customer, unlike email and chat. Due to this all account-related matters can be dealt with through the message service.
The customer service chat provides help for general questions. Due to security concerns, customer-related matters can only be addressed through Coinmotion’s message service and not the chat.
When the chat service is available a speech bubble icon will be displayed in the lower right corner of the page, which opens a chat window. We ask you to present your subject in a simple and detailed form to assure fast and precise service.
How do I open a Coinmotion account?
Coinmotion has a signup assistant that will guided you through the steps needed to open the account. For more detailed help please refer to the Coinmotion user manual.
How do I verify my identity?
Finnish customers can easily verify their identity with online bank codes. Alternatively you can identify by scanning an identification card as well as a personal bill no older than 3 months.
Verification process is automated and you will most likely get notified of the result right away.
Can I use Coinmotion without verification?
You can acquaint yourself with Coinmotion using a small sum without verification, but unlocking all features requires identification. The requirement is based on the law, which Coinmotion is obliged to comply with.
How do I confirm an IP address?
You will receive an email confirmation when you log in to Coinmotion from a new IP address. Logging in can be done through the confirmation link in the email. Alternatively you can copy the confirmation code to the login page.
You can avoid IP confirmations by enabling two-factor authentication on your account settings.
Can I change my email address?
Email addresses cannot be changed for security reasons. We verify all orders of value by email, and to avoid abuse we do not allow altered email addresses.
It is recommended to create an account with a personal email. Do not for example use the email of your workplace or school.