Bytecoin (BCN) Review (UPDATED 2018): A Beginner’s Guide | VKOOL

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While Bitcoin is the only cryptocurrency most people can name, there are countless others that have sprung up to do a different take on what cryptocurrency can do. Some focus on the way it's mined, others offer different rewards and features their coins can be used for. Others were unsatisfied with its privacy protocols. That's why Bytecoin was invented. This old-school, first-generation cryptocurrency has been consistently developed since 2012, but recently the team behind it has started to take steps to bring Bytecoin out of its relative obscurity and into the wider crypto community at large.

Using our guide below, you'll get acquainted with what Bytecoin is and how it works. And if you're looking for other altcoins with a promising year ahead, don't forget to read our new list of the best altcoins of 2018.

How Bytecoin Works

As mentioned before, Bytecoin's main focus is privacy. Many people don't want any information about their purchases to be known, and while Bitcoin doesn't include your personal information with transactions, all transactions are recorded on a public ledger. That means people could track coins from one wallet to another, and eventually find the original sender.

Bytecoin uses a system called CryptoNote that uses multiple methods of making payments anonymous and untraceable. One method, related to the Diffie-Hellman protocol, involves the receiver having multiple one-time use addresses to receive their payment, and only the receiver's key can give them access to the payment. No one would be able to link the receiver to it, as the addresses are one-time use only and are never used again.

It also uses ring signatures, where your signature (used to initiate a transaction) is mixed up with other signatures from people on the network, so no one would be able to connect the payment with you.

Another problem with Bitcoin is that its mining system is slanted in favor of miners that have tricked-out mining rigs, centering mining around this minority and leaving others out. That's why Bytecoin's introduced something called egalitarian proof-of-work, which allows miners to use CPU power to mine effectively (as opposed to power-hungry GPU work). As of the writing of this article, however, almost all Bytecoins have already been mined and are already in circulation, so it might not be worth looking into if you want to get into mining.

The Team Behind Bytecoin

This project started, like many other cryptocurrencies, with a team of anonymous volunteers developing the code and infrastructure. Different from others, though, is the fact that Bytecoin was developed by different groups that rarely communicated with each other.

That changed in 2017, when the now unified (more-or-less) project team decided to make themselves a little more approachable by adding some names to the project page, and re-gearing the project to be more easily-adoptable. That said, it's not as transparent and open as many other projects, but that's not why they got into this industry in the first place.

The platform now has over 11,000 users.

If Bytecoin doesn't seem open or transparent enough for your taste, why not check out our list of the best altcoins of 2018, to see which ones made the cut?

Trading Bytecoin

Unlike Ethereum and other inflationary coins, Bytecoin has a hard cap at around 184.5 billion, so as we said before, mining Bytecoin has become very difficult and doesn't give you as many rewards as other coins that have more to be mined.

The price of Bytecoin was always low, dragging around $0.000051 (that's 5 billionths of a dollar), but in May of 2017 it shot up to $0.003877 before sinking again. Its next boom was in late January 2018, when it shot up to $0.017. That's as good as it got, unfortunately. Lately it's been hovering around $0.004.

As Bytecoin continues to warm into its new brand, it's possible we could see the price go up again with new announcements, partnerships, or features.

Buying BNC

Right now the best places to buy BNC are Poloniex and HitBTC. You'll need to use Bitcoin to buy it, however. If you'd rather use fiat, you can buy it with USB at the exchange Changelly, but users should be warned ahead of time that their fees can get quite high. Before you buy BCN, you should already have a BCN wallet set up to receive it.

Storing Bytecoin

Users have a couple options for storing Bytecoin. You can use the coin's desktop wallet, their browser-based wallet, or the wallet for Android. They haven't released one for iOS – their website still says it's ”coming soon,” but we're not sure when exactly.

The variety of choices for storing Bytecoin make it a little more appealing than some other currencies which have only one or two choices. As Bytecoin is hard to mine and hasn't had many upsurges in price, flexibility is the least users can expect.

Don't forget to read our new list of the best altcoins of 2018.

Bytecoin vs Monero

These coins are both focused on user privacy and anonymity in transactions. Bytecoin uses ring signatures and CryptoNote's multiple one-time address system, and Monero uses a combination of ring signatures and stealth addresses to accomplish the same goal. Monero is fungible (no record of a coin's usage history), while it isn't clear right now if Bytecoins are fungible or not. Monero is trading pretty high ($317 as of this article) while Bytecoin has traded consistently low, never breaking even a single dollar.

Bytecoin vs Bitcoin

Bytecoin was based on Bitcoin, so they do have similarities. Both are cryptocurrencies which can be mined, traded, exchange, bought and sold. Bytecoin however employs anonymization protocols that make transactions private, while Bitcoin transactions are basically visible to anyone who cares to inspect the blockchain. Bytecoin has a handful of wallets and is traded on a few exchanges, while Bitcoin has lots and lots of wallets that take it and is traded on every major (and minor) crypto exchange. Bytecoin trades lower, but makes up for it with stealth.

Bytecoin vs Verge

These coins are both seeking to offer users anonymity in their transactions. Verge, however, makes it very clear that they intend their currency to have use in the everyday and be simple to use, trying to engage new users, while Bytecoin has remained secretive and low-key through its long lifespan. Verge uses TOR and I2P to anonymize transactions, while Bytecoin mainly uses ring signatures and one-time addresses. Verge has many wallets, is traded on many exchanges, and offers more mining rewards, while Bytecoin falls a little short in these areas.

Frequently Asked Questions

  1. What is Bytecoin's value?
    Right now it's trading around $0.004, according to CoinMarketCap.
  2. Where can I read Bytecoin news?
    Twitter, Reddit, or on crypto blogs.
  3. Is there a Bytecoin Reddit?
    There's a community of people on Reddit talking about it, yes.
  4. Is there a Bytecoin wallet?
    Yes, there are a few wallets for desktop, web browsers, and for Android.
  5. What's the future of Bytecoin?
    Hard to tell, but it will be brighter if they make an effort to increase the amount of mineable BCN or introduce new uses for it.
  6. Is Bytecoin an exchange?
    No, it's a blockchain ledger and a token of payment.
  7. What's the price prediction for Bytecoin?
    It could go up, but only by introducing new functionality, new wallets (like for iOS), or if other privacy coins end up doing well.
  8. How do I buy Bytecoin?
    Check out Poloniex or HitBTC and buy it for Bitcoin there.
  9. What's the future of Bytecoin?
    The company is secretive and doesn't make many announcements, but they're unveiling new tokens for their network and are releasing a new API.
  10. Can you buy Bytecoin with Paypal?
    No, unfortunately.
  11. How do you buy Bytecoin with USD?
    You have to buy it on Changelly if you want to use U.S. dollars.
  12. Is there a Bytecoin wallet for Windows?
    Yes.
  13. Is there a Bytecoin wallet for iPhone?
    Not yet, although they claim on their website that it's coming soon.
  14. How high will Bytecoin go?
    Hard to say, but based on its history it's unlikely that it'll go higher than $1.
  15. I need help with my Bytecoin wallet. What do I do?
    Your best bet is to get in touch with customer service and ask them to help you out.

Conclusion

There are infinite possibilities when it comes to blockchain technology and cryptocurrency, and maintaining privacy in transactions is just one area that's being worked on. Bytecoin has been around since 2012 – a dinosaur, in crypto terms – but it never really had the breakthrough success that Bitcoin and its other forks have had. Is it possible that 2018 will see Bytecoin finally get adopted by more people? Will its price ever get higher than 10 cents? It's hard to say, but if Bytecoin starts really engaging the community and improving their coin's functionality (maybe including dApp capabilities?) then there's a chance it can survive in the competitive arena of cryptocurrency.

Bytecoin has a lot of competition, but how do you figure out which are your best investments? Feel free to use our new list of recommended altcoins to invest in in 2018 as a helpful guide.

Peter Lehmann

Peter is a blockchain investor and cryptocurrency writer at Vkool.com. Since 2014 Peter has advised blockchain startups and ICOs on content marketing, strategy and business development.

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