Crypto TREND – Second Edition

In the first issue of CRYPTO TREND, we introduced cryptocurrency (CC) and answered several questions about this new market space. There are many NEWSPAPERS in this market every day. Here are some highlights that give us an insight into how new and exciting this market space is:

The world’s largest futures exchange for creating futures contracts for Bitcoin

Terry Duffy, president of the Chicago Mercantile Exchange (CME) said “I think sometime in the second week of December you will see our [bitcoin futures] listing agreement. You can’t cut bitcoin today, so there is only one way. Either buy it or sell it to someone else. So you create a two-way market, I think it’s always much more efficient. “

CME intends to launch Bitcoin futures by the end of the year pending regulatory review. If successful, it will give investors a sustainable way to go “long” or “short” on Bitcoin. Some stock market traders have also applied for bitcoin ETFs that track bitcoin futures.

This development has the potential to allow people to invest in the space of cryptocurrencies without owning a CC or using the services of a CC exchange. Bitcoin futures could make digital assets more useful by enabling users and intermediaries to protect their foreign exchange risks. This could increase the adoption of cryptocurrency by traders who want to accept bitcoin payments but are wary of its volatile value. Institutional investors are also accustomed to trading in regulated futures, which are not bothered by worries about money laundering.

The CME move also suggests that bitcoin has become too large to be ignored, as the stock market seemed to have ruled out crypto futures in the recent past. Bitcoin is almost everything that someone talks about in brokerage and trading companies, which have suffered because of the growing, but unusually peaceful markets. If futures on the stock market took off, it would be almost impossible for any other stock exchange, such as CME, to catch up, as volume and liquidity are important in derivatives markets.

“You can’t ignore the fact that this is becoming more and more a story that won’t go away,” Duffy said in an interview with CNBC. There are “mainstream companies” that want access to bitcoin and there is “huge accumulated demand” from customers, he said. Duffy also believes that bringing institutional traders to market could make bitcoin less volatile.

The Japanese village will use cryptocurrency to raise capital to revitalize municipalities

The Japanese village of Nishiawakura is exploring the idea of ​​holding an Initial Coin Offer (ICO) to raise capital to revitalize municipalities. This is a very new approach and they can seek the support of the national government or seek private investment. Several ICOs have had serious problems, and many investors are skeptical that any new token will have value, especially if the ICO turns out to be another joke or scam. Bitcoin was certainly not a joke.


We didn’t mention ICO in the first issue of Crypto Trend, so let’s mention it now. Unlike the Initial Public Offering (IPO), where a company has an actual product or service to sell and wants to buy shares in their company, an ICO can be held by anyone who wants to launch a new Blockchain project with the intention of creating a new token on their chain. ICOs are unregulated, and a few are completely false. However, a legitimate ICO can raise a lot of money to fund a new Blockchain project and network. It is typical for an ICO to generate a high token price near the beginning, and then return to reality soon after. Since the ICO is relatively easy to maintain if you know the technology and have a few dollars, there were a lot of them, and today we have about 800 tokens in play. All of these tokens have a name, they are all cryptocurrencies, and apart from very well-known tokens, such as Bitcoin, Ethereum and Litecoin, they are called alt-coins. At the moment, Crypto Trend does not recommend participating in the ICO, because the risks are extremely high.

As we said in number 1, this market is currently the “Wild West” and we recommend caution. Some investors and early users have made big profits in this market space; however, there are many who have lost much, or all. Governments are considering regulations because they want to know about each transaction in order to tax them all. They all have huge debts and don’t have enough money.

So far, the cryptocurrency market has avoided many government and conventional financial problems and pitfalls, and Blockchain technology has the potential to solve many more problems.

A great feature of Bitcoin is that the originators chose the final number of coins that can ever be generated – 21 million – thus ensuring that this crypto coin can never be inflated. Governments can print as much money (fiat currencies) as they want and inflate their currency to death.

Future articles will deal with specific recommendations, however, make no mistake, early investment in this sector will only be for your most speculative capital, money you can afford to lose.

CRYPTO TREND will be your guide if and when you are willing to invest in this market space.

Stay Tuned!

Cryptocurrency mining

Cryptocurrency mining is a game that has no end in this digital world. Bitcoin, the first decentralized currency introduced in early 2000. Cryptocurrency mining is a complex procedure for verifying transactions and adding them to the public book (blockchain). This book of past transactions is called a blockchain because it is a chain of blocks. The blockchain serves to confirm that transactions have occurred to the rest of the network. Blockchain is also responsible for releasing new bitcoins. Each of the many cryptocurrencies present depends on the basic idea of ​​the blockchain.

The mining process

The cryptocurrency was to be decentralized, secure, and unchangeable. So every transaction is encrypted. Once that encrypted transaction occurs, it is added to what many call a “block” until the settled number of transactions is recorded. That block is then added to the chain – the blockchain – which is publicly available. During the mining of cryptocurrencies, be it Bitcoin, Dash, Litecoin, Zcash, Ethereum and many more, the miner must assemble recent transactions into blocks and break a computationally difficult puzzle. There are several websites for bitcoin mining. It has become a very popular way to make money.

Cryptocurrency is cryptographic, which means that it uses special encryption that allows you to control the generation of coins and confirm the transaction. The block is quite useless in its currently available form. However, after applying the algorithm to a specific block. After the match, the miner receives several bitcoins. To earn bitcoin by mining, a miner must be technical. Bitcoin mining for profit is very competitive. The price of bitcoin makes it difficult to make cash gains without price speculation. The payment is based on how much their hardware has contributed to solving that puzzle. Miners verify transactions, ensure they are not fraudulent and keep infrastructure up to date.

The best coins for the mine

Bitcoins are not a decent decision for beginners who try to a small extent. Current prior speculation and maintenance costs, as well as the pure scientific trouble of the procedure, simply do not make it productive for hardware at the customer level. Currently, bitcoin mining is saved for expansive activities, so to speak. Litecoins, Dogecoins, and Feathercoins, again, are the three digital forms of Scrypt-based money that are the best money-saving advantage for apprentices. According to Litecoin’s current estimate, a person can get anywhere in the range of 50 pence to $ 10 for each day using user-level mining hardware. Dogecoins and Feathercoins would bring slightly less benefits with similar mining hardware, but they are becoming more famous every day. Peercoins can also be a reasonably fair profit for your venture of time and vitality.

As more and more individuals join the rise of cryptocoin, your decision could become increasingly difficult to mine as more expensive hardware will be needed to find the coin. You will be forced to either contribute energetically in case you stay to mine that coin, or you will have to take your income and change to less demanding cryptocoin. Understanding the 3 main bitcoin mining strategies is probably where you need to start; This article focuses on coin mining scripting. Also, make sure you are in a country where bitcoin and bitcoin mining are legal.

The goal of mining

How about we focus on cryptocurrency mining. The whole focus of mining is to achieve three things:

1. Give accounting administrations a network of coins. Mining is essentially every minute of everyday PC accounting called ‘transaction verification’.

2. Get a small reward for your accounting administration by accepting fractions of coins every few days.

3. Reduce your personal expenses, including electricity and hardware.

Some basic conditions

A free private database called a wallet with coins. This is a password-protected container that stores your earnings and keeps a large record of transactions. A free mining software package, similar to this one from AMD, usually consists of a cgminer and a stratum. Enrollment in a web-based mining pool, which is a community of miners who consolidate their computers to increase profitability and wage stability. Enroll in an online exchange, where you can exchange your virtual coins for conventional cash and vice versa. Reliable full-time web association, ideally 2 megabits for every second or higher speed. A location to install hardware in your basement or other cool and air-conditioned space.

Work area or personalized computer intended for mining. Indeed, you can use your current computer to get started, but you will not have the capacity to use the computer while the digger is running. A special purpose PC is ideal. Tip: Do not use a laptop, game console or hand-held mining device. These devices are simply not successful enough to generate a salary. ATI graphics processing unit (GPU) or a specialized processing device called a mining ASIC chip. The price will be from $ 90 to $ 3000 for a new one for each GPU or ASIC chip. The GPU or ASIC will be the workhorse for accounting and mining.

A home fan that blows cool air through your mining computer. Mining generates significant heat, and cooling hardware is key to your prosperity. Personal interest. You absolutely need a solid appetite for reading and constant learning, as there are constant changes in innovation and new methods to upgrade coin mining. The best workers in a coin mine invest hours consistently considering the most ideal ways to adjust and improve their coin mining performance.

Profitability of cryptocurrency mining Every time a mathematical question is understood, a constant amount of Bitcoin is created. The amount of bitcoins generated per block starts at 50 and is halved every 210,000 blocks (about four years). The current number of allocated Bitcoins per block is 12.5. The last halving was in July 2016, and the next will be 2020. Profitability estimates can be made using a variety of online mining calculators. The development of digital currency standards, for example, Bitcoin, Ethereum and Bitcoin Cash, has spurred huge ventures by companies and this is needed to help significantly develop the market in the near future.

Cryptocurrency mining is a computationally intensive process, which requires a network of several computers to verify transaction records, known as a blockchain. Excavators are offered a share of transaction costs and are more likely to find another block through the contribution of high computational power. These support transactions help provide enhanced security to network customers and guarantee honesty, which is believed to be a visible factor influencing the development of the global cryptocurrency mining market.

Cryptocurrency versus fiat currency

Cryptocurrency versus fiat currency

Are you familiar with fiat currencies and cryptocurrencies? Both currencies are in one form or another and are open to public use around the world. But they are both different and different in their own way. There is always one group that favors the use of cryptocurrencies, while the other has a soft corner for fiat currencies.

In a cashless society – crypto money plays a huge role

If you look at the market in the 1970s and 1980s, you will see that cash played a dominant role. But with the change in technology, electronic transactions have become the norm. Today, more and more people are influenced to become a cashless society. With the progress towards a cashless society, cryptocurrencies play a big role.

Cryptocurrency and fiat currency are always at odds

Cryptocurrency and fiat currency are popular types of digital currencies, especially when it comes to online transactions. Both are currencies currently used in the market, but have some differences in themselves. There are a hell of a lot of commercials you’ll hear on a daily basis comparing crypto money and fiat money. This article will highlight the difference between them in a more comprehensive and clear way.

Distinguish what currencies represent

Before you move on to the difference between them, you need to understand what they represent and how they are defined.

Fiat currency is a legal tender that has the support of the central government and operates in physical form. For example, US dollars, British pounds, euros, etc. On the other hand, cryptocurrency is not a legal tender and has no support from the central government or the bank.

Thus, the difference between cryptocurrency and fiat currency is noted as follows:

• Cryptocurrencies are decentralized and global in nature. There is no entity or government that controls the currency by its laws and regulations. Fiat currency is centralized, controlled by the laws and regulations of banks and the government.

• Cryptocurrencies exist only in the digital domain. On the other hand, you will find that fiat currencies have a tangible and physical existence.

• There is a limited supply of cryptocurrencies with the maximum set of them delivered to the market. While, fiat money has an unlimited supply because the government and the bank have the right to produce coins and paper money whenever needed.

• Bitcoin and other cryptocurrencies are created by computers, while fiat currencies are issued by the local government and banks.

• Cryptocurrencies are presented as public and private parts of the code. On the other hand, fiat currencies are presented in the form of coins and paper money.

• Market supply and demand do not recognize the value of cryptocurrencies. While the value of fiat currency is determined by market regulations of supply and demand.

Different types of crypto and fiat currencies

In the last decade, the popularity of cryptocurrencies has proven to be a huge success. It was in 2009, when Bitcoin was first introduced, and years after several other types of cryptocurrencies appeared. Starting with Litecoin. Dogecoin, Ripple to the Dcash and Zcash, there are many of them. On the other hand, the fiat currency has rich and ancient roots, with the Great British Pound dating back to 775 AD. It is considered to be the oldest currency in the world still in use.

Differences in anonymity between two currencies

When using fiat currencies, you must go through the process of identifying or verifying the user. You are asked to upload your recent picture and some of the necessary documents that will be issued to the public authorities. You do not have to undergo any of the required cryptocurrency processes. Although your personal data and confidential details do not become public, all your transactions are recorded and tracked in fiat and cryptocurrencies.

Fiat currency versus cryptocurrency: level of transparency

• The level of transparency in cryptocurrencies is considered to be higher. This is because revenue streams are shown in the public chain. Everyone can witness their own and other people’s transactions.

• Fiat or others. currencies are not transparent because there are no public chains to see people’s income streams.

Comparative historical roots

If you compare cryptocurrency with that of its counterpart, fiat or national currency, you will see that their existence and creation make a difference. Fiat, or the national currency, dates back to 775 AD with the introduction of the British Pound. That is why the fiat type currency is easily accepted by people all over the world.

On the other hand, the crypto coin was perhaps first introduced just ten years ago, with the introduction of Bitcoin in 2009. The challenge facing Bitcoin and other cryptocurrencies is to catch up with the huge popularity and growing base of fiat currency fans. . Cryptocurrency, without a doubt, gained in importance and popularity in the economic market, but it is still not widely accepted in society as a fiat currency.

Comparative history of two currencies:

• It was in the 11th century, when the Chinese Song Dynasty was perhaps the first to issue paper money. It was not allowed to exchange valuables such as gold and silver or silk.

• There were Tally sticks that were introduced as fiat or national currency. 1100 Tally sticks were introduced as a fight for gold shortages.

• 1971 was the year when the fiat currency received worldwide recognition. President Nixon introduced it to eliminate the dollar peg to gold system.

• It was in 1998, when Wei Dai came up with the idea of ​​an anonymous electronic cash system. Bitgold’s first cryptocurrency was created by Nick Szabo, but it did not receive as much attention as Bitcoin.

• In 2009, Bitcoin was introduced to the market, becoming the first cryptocurrency to be accepted worldwide. In 2011 and later, it was introduced through several other cryptocurrencies. Some of the popular ones include Litecoin, Dogecoin, Ethereum, Ripple, Zcash, Dash and so on.

Features of both currencies

The potential of cryptocurrencies and fiat currencies, access to their features is important. You will find that by some criteria Bitcoin and other cryptocurrencies are superior to fiat or the national currency, and in some cases the latter excels. It is up to you to choose the type of currency (crypto currency or fiat type currency) based on your personal needs and requirements.

Let’s compare their properties in relation to certain factors.

• Both crypto coins and fiat currencies are interchangeable by nature.

• In terms of portability, both currencies provide more or less the same position.

• In terms of non-expendable criteria, cryptocurrency and fiat currency have equal status.

• Crypto-type currencies have high durability compared to fiat currencies that have a moderate level of durability.

• Both crypto or virtual currencies and fiat or government currencies ensure secure and secure transactions and exchanges.

• Crypto or digital currencies are very divisible in nature. Fiat-type currencies, on the other hand, are moderately divisible.

• As for the transaction process, cryptocurrencies are simple and hassle-free. While, on the other hand, the learning process associated with fiat currencies is easy, but not as with cryptocurrencies.

• Cryptocurrency-based currencies are decentralized and global in nature, unlike fiat currencies that are centralized and operate under government laws and regulations.

• Currencies based on cryptocurrencies have great scarcity, while fiat currencies are unlimited because the government can issue coins and paper money whenever there is a need.

• Cryptocurrency-based currencies are based on mathematical algorithms and can be programmed. Fiat currencies cannot be programmed at all.

• Fiat currencies are sovereign in nature, while cryptocurrencies are not.

The process of functioning of currencies

You can find significant differences between crypto or digital currencies and fiat currencies in the way both work and the process of the transaction that takes place. They are contrasting in nature. Transferring money using Bitcoin is very fast and you absolutely do not need any third party.

On the other hand, if you are involved in exchanging money using a Fiat type currency, a mobile wallet is in use. You can replace the amount of e-money transferred to the same amount of e-value. Both fiat and cryptocurrencies allow you to buy whatever you want. But the processes involved are absolutely different from each other.

Depending on the things you buy, you will find that one form of currency is better than another. This is absolutely your choice.

Is Bitcoin, a cryptocurrency, better than fiat currency?

The long-term benefits and capabilities of Bitcoin have not yet been determined. But gurus and cryptocurrency experts predict they will go a long way, especially revolutionizing the way online transactions are conducted. In the current market, Bitcoin is mainly included in online casinos and gambling, but is not limited to it.

Moreover, when you compare fiat currencies, Bitcoin allows you to take power and authority from banks and the government since it is not under control. Cryptography-based currency has the ability to create or design free market capital. Fiat currencies are affected by inflation and market changes, unlike cryptocurrency-based currencies. Such aspects lead individuals to believe that cryptographic-based currencies will soon take over major currencies and bring about a transformation in the way money is used.

Why is Bitcoin considered a better aspect than fiat currencies?

• Bitcoin gives you the opportunity to recreate free market capitalism.

• The power to control money is absolutely with individuals, not with banks as with fiat currencies.

• When there is inflation, Bitcoin is not affected. But a Fiat-type currency will be easier to lose and be influenced by.

• Bitcoin currency is easier to exchange and transfer compared to fiat or state currencies.

• Transaction fees related to Bitcoin are much cheaper and easily accessible.

Cryptocurrencies seem to be a favorable option among people

Fiat currencies are a centralized and legal way of exchanging money. However, cryptocurrencies have gained immense popularity in recent years. There will never be anyone who would act as an intermediary, as is the case with banks. Moreover, cryptocurrencies are much cheaper and cheaper than conventional fiat currencies.

Send money anywhere directly without waiting for bank approval

You can send money to anyone in the world directly, and it’s super fast. The money is cleared within minutes. You do not have to wait for the traditional processes of clearing and verification of banking systems, which can take several days to get approval. Because it is decentralized and does not fall under government law and regulations, no one has the authority to do anything with your account.

Blockchain technology plays a very big role

Thanks to cryptocurrencies, it gives us the power and authority to become our own bank and take control of our finances. This is due to blockchain technology that offers a higher level of sophistication while dealing with finance. In fact, there are some major financial industries that have begun to incorporate the idea of ​​technology.

Cryptocurrency volatility, profitable slide

This year we can notice that cryptocurrencies tend to move up and down even by 15% of the value on a daily basis. Such price changes are known as volatility. But what if … this is perfectly normal and sudden changes are one of the characteristics of cryptocurrencies that allow you to make good money?

First of all, cryptocurrencies have come into the mainstream very recently, so all the news about them and the rumors are “hot”. After each statement of civil servants about the possible regulation or prohibition of the cryptocurrency market, we notice large price movements.

Second, the nature of cryptocurrencies is more like a “store of value” (as gold has been in the past) – many investors see them as a reserve investment option for stocks, physical assets such as gold and fiat (traditional) currencies. The transfer rate also affects the volatility of the cryptocurrency. With the fastest, the transfer takes even just a few seconds (up to a minute), which makes them a great tool for short-term trading, if there is currently no good trend on other types of assets.

What everyone should keep in mind – this speed also applies to the lifetime trends of cryptocurrencies. While in regular markets trends can last for months or even years – here it takes place in a couple of days or hours.

This brings us to the next point – although we are talking about a market worth hundreds of billions of US dollars, it is still a very small amount compared to the daily trading volume compared to the traditional currency market or stocks. Therefore, one investor who makes a transaction of 100 million on the stock exchange will not cause a big change in price, but on the scale of the cryptocurrency market, this is a significant and noticeable transaction.

As cryptocurrencies are digital assets, they are subject to technical and software updates of cryptocurrency characteristics or the expansion of blockchain cooperation, making it more attractive to potential investors (such as the activation of SegWit has basically doubled the value of Bitcoin).

Combined, these elements are the reasons why we observe such large changes in the prices of cryptocurrencies within a few hours, days, weeks, etc.

But the answer to the question in the first paragraph – one of the classic trading rules is to buy cheap and sell expensive – so having short but strong trends every day (instead of weaker ones lasting weeks or months like stocks) gives you a much better chance of making a decent profit if is used properly.

A Guide to Successful Trading in Major Cryptocurrencies

Cryptocurrency trading has taken over the world and this is what has become the norm for most traders and investors. If you are eager enough to research before you start trading, you have a chance to enjoy real growth and profit in the end. The worst thing you can do when it comes to this kind of trade is to go into it blindly simply because everyone else is doing it. A little research on major currencies and delving into the basics of buying and trading can make a big difference. Below are a few guidelines that will encourage you to succeed in trading.

Take the time to understand how a chain of blocks works

Blockchain technology has redefined transactions and changed everything. A blockchain can be defined as a list of records that continuously grow into blocks secured and linked by cryptography. Blockchains are resistant to data modifications and serve as a public ledger of transactions between parties. The transparent and decentralized nature of the blockchain makes it very secure, and in the world of hacking it is truly functional and reliable. It solves the problems of manipulation that have become so obvious in the world today. While no person can claim to understand everything that a blockchain is, learning a few basics will make trading much easier for you.

Meet and learn the best currencies

The space of virtual currencies is becoming full thanks to the popularity of these currencies. The fact is that today there are more than 100 cryptocurrencies, which means you need to know which ones are the best and most popular, in order to be able to properly choose to buy and sell keeping in mind profitability. Bitcoin makes up half of the overall market with the largest volume, but Litecoin and Ethereum are also at the top and give Bitcoin a race. Learn as much as you can about the currency you are interested in. The more you know the better you will be at making decisions; you can actually manage to trade more than one cryptocurrency without any challenges.

Keep in mind the inherent risks

Bitcoin and other currencies are quite volatile even when the stock market and gold are compared. Remember that this is still a technology in its early days and it faces a lot of challenges. The probabilities of profit are quite high, but so are the risks. Public sentiment about a currency can actually affect its prices. What goes up is sure to come down so be careful with the trading moves you make. The higher the risks, the higher the reward could be, but be prepared for losses as well. The best thing you can do no matter what cryptocurrency you choose is to keep an eye on events that can affect prices and act quickly.

Once you learn everything that is important in cryptocurrency trading, then you can go ahead and open a brokerage account and finance it, and then you can start buying and selling currencies. The prizes are numerous for interested traders.

Everything you need to know about ICO

What is ICO: Not so long ago, Bitcoin went through a process of emerging and promising a potential future, although it is interpreted and understood as a pointless step towards a digital currency. In the years that followed with the maturation of Bitcoin, the cryptocurrency ecosystem detonated. Amid the aggravatingly accelerated pace of birth of freshly launched coins, there is a type of transaction called the “Initial Coin Offer” or ICO. ICO is a tool that seeks financial support that involves trading cryptocurrencies intended for the long term in exchange for the expeditious value of current cryptocurrencies. According to The Financial Times, ICOs are overseen by cryptocoin procurement and distribution laws where investors can spend money.

On the other hand, The Economist describes ICOs as digital tokens issued based on an ineradicable distribution of logs and blockchains.

In conclusion, we can say that ICOs are new hand-held catapults that open the place for newly created cryptocurrencies.

Laws: Smith + Crown explains that most ICOs sell software tokens that relate to the time before they were made available for purchase. To circumvent legal needs, ‘crowdsale’ or ‘donation’ instead of ICO are the languages ​​now commonly used.

Is there a chance the ICO could slow down: In this regard, Crypto Hustle writes in a recent article that the ICO is hysterical because of those people who first adopted Ethereum and are now interested in returning. So, one cannot assume whether the pleasure search phases will last long or not, but when the corrections come, we will see which cryptocurrencies remain in place.

If ICO is a safe buy: If you take a risk and do not change the risk, not paying attention to the end of capitalism, or the fact that this topic could bury you in the ground, without capital, then go ahead, it is your decision.

Now that we have gathered information on ICOs, we come to the final question.

What is the future of ICO: According to research reports from 2017, “about 46% of ICOs have not reached the realization stage despite raising about $ 104 million.”


  • Increased risk of investing in cryptocurrencies.

  • Draconian regulations.

  • Tough competitions.

  • Yield reduction.

  • The volatile nature of cryptocurrency.

China has banned the ICO, and Russia has brought to light a completely different set of rules and regulations for the ICO with the promise that investors can resell their tokens. ICO promotions on Google and Facebook are tough, and Twitter has deliberately banned fake crypto accounts. More authorities believe the blockchain has a living future, but the ICO? Her future rots in her own skin in the struggle to cross that extra bridge to prove her credibility.

So, yes. The death of an ICO is really big in the air, and before we know it, it could fit in and disappear as if it never existed in the economy. But still there are some coins that can be converted into the following Bitcoins so you have to be looking for the best ICOs.

What is Bitcoin and is it a good investment?

Bitcoin (BTC) is a new type of digital currency – with cryptographic keys – that is decentralized to a network of computers used by users and miners around the world and is not controlled by a single organization or government. It is the first digital cryptocurrency to attract public attention and be accepted by a growing number of traders. Like other currencies, users can use digital currency to purchase goods and services online, as well as in some physical stores that accept it as a form of payment. Currency traders can also trade bitcoins in bitcoin exchanges.

There are several major differences between Bitcoin and traditional currencies (e.g. the US dollar):

  1. Bitcoin does not have a centralized authorization or clearing house (e.g. government, central bank, MasterCard or Visa network). The peer-to-peer payment network is managed by users and miners around the world. The currency is anonymously transferred directly between users via the Internet without passing through the clearing house. This means that transaction fees are much lower.
  2. Bitcoin is created through a process called “Bitcoin mining”. Miners around the world use mining software and computers to solve complex bitcoin algorithms and to authorize Bitcoin transactions. They are rewarded with transaction fees and new Bitcoins generated by solving Bitcoin algorithms.
  3. There is a limited amount of Bitcoin in circulation. According to Blockchain, there have been about 12.1 million in circulation since December 20, 2013. The difficulty of mining Bitcoin (solving algorithms) becomes more difficult as more Bitcoin is generated, and the maximum amount in circulation is limited to 21 million. The limit will not be reached until around 2140. This makes Bitcoins more valuable because more and more people are using them.
  4. A public book called ‘Blockchain’ records all Bitcoin transactions and shows the ownership of each Bitcoin owner. Anyone can access the public ledger to check transactions. This makes the digital currency more transparent and predictable. More importantly, transparency prevents fraud and double consumption of the same Bitcoins.
  5. Digital currency can be obtained through Bitcoin mining or the Bitcoin exchange.
  6. Digital currency is accepted by a limited number of merchants on the web and at some retail outlets.
  7. Bitcoin wallets (similar to PayPal accounts) are used to store Bitcoin, private keys and public addresses, as well as to anonymously transfer Bitcoin between users.
  8. Bitcoins are not insured and are not protected by government agencies. Therefore, they cannot be recovered if a hacker steals secret keys or loses them on a faulty hard drive or due to the closure of a Bitcoin exchange. If the secret keys are lost, the associated bitcoins cannot be recovered and will be out of circulation. Visit this link for a Bitcoin FAQ.

I believe Bitcoin will gain more public acceptance because users can remain anonymous while buying goods and services online, transaction fees are much lower than credit card payment networks; the public book is available to all, which can be used to prevent fraud; the currency supply is limited to 21 million, and the payment network is managed by users and miners instead of the central government.

However, I don’t think it’s a great investment tool because it’s extremely unstable and not very stable. For example, the price of bitcoin rose from about $ 14 to a peak of $ 1,200 this year before falling to $ 632 per BTC at the time of writing.

Bitcoin jumped this year because investors speculated that the currency would gain wider acceptance and become more expensive. The currency fell 50% in December as BTC China (China’s largest bitcoin operator) announced it could no longer accept new deposits due to government regulations. And according to Bloomberg, China’s central bank has banned financial institutions and payment companies from handling bitcoin transactions.

Bitcoin is likely to gain more public acceptance over time, but its price is extremely volatile and very sensitive to news – such as government regulations and restrictions – that could negatively affect the currency.

Therefore, I do not suggest investors to invest in Bitcoins unless they are purchased at a price less than $ 10 per BTC as this would allow much higher margin of safety.

By the way, I believe it is much better to invest in stocks that have strong fundamentals as well as great business prospects and management teams because core companies have intrinsic values ​​and are more predictable.

Disclosure: Victor Liang has no position in bitcoins and has no plans to change his position in the next 72 hours.

Cryptocurrency – stay informed

Cryptocurrencies seem to be the hottest investment products that exist. Eavesdrop on any conversation of your friend, it’s about bitcoins. All workplace conversations also apply to virtual currencies. A popular word about online chat rooms is also about cryptocurrency these days. A quiet economic revolution is happening, thanks to the growing popularity of these virtual currencies.

It goes without saying that if you want to become big in the world of bitcoin, then you have to have a nose for news. Now that you’ve narrowed your list down to a few cryptocurrencies, you’ll need to analyze and decide which ones have the potential to trade more and faster than others. That’s why you have to keep up with the news. You will scan information about blockchain trends from various sources. These days, several business channels are devoting exclusive time to these trends.

Another potential source of information may be others involved in virtual currency trading. Meet a few of them who are very good at trading and choose your brain for valuable information. The internet is a great way to get in touch with such experts. You can find them through online forums. Keep up with them regularly. Similarly, you can subscribe to websites that specialize in cryptocurrency trading. This way you can make sure you don’t miss any important news.

You can get good sources of information about cryptocurrencies from various organizations. They offer a wealth of information about the blockchain ecosystem. The organization’s website offers extremely detailed information on digital currencies.

Keeping your coins

Security is another thing that is crucial whenever you deal with cryptocurrencies. Since you will need to create and use several passwords for different accounts, we suggest using a password manager. Make sure you are using a strong antivirus on your computer. A good firewall is also a must to ensure perfect security of your data and online transactions.

Another important thing to keep in mind is to never find out how much you have traded cryptocurrencies online. This applies both offline and online. You should also never make a mistake when you click on links to anyone in crypto groups. You could end up downloading a virus on your computer so easily. It is known that most pages in these groups contain viruses.

Here’s how Bitcoin works in the world of cryptocurrencies

If you don’t know, bitcoin is a type of decentralized network of cryptocurrencies. In this process, transactions are based on a 16-character encrypted address. In simple words, it’s like your social security number. As far as security is concerned, only you can transfer funds once you have the address, which includes two-factor verification. In fact, bitcoin consists of a network of several independent computers that are responsible for generating, propagating and verifying money transactions. Let’s find out more.

How do you buy Bitcoin?

If you want to buy Bitcoin, be sure to install the wallet application on your computer. With this app you can send and receive Bitcoin as much as you want.

To purchase Bitcoin, you are required to deposit funds into your web-based wallet that serves as a bridge between sellers and buyers.

Once the stock exchange has accepted your currency, your next step is to set up an account, which is the same as buying stocks.

How does Bitcoin work?

Basically, Bitcoin is an international, decentralized peer-to-peer network. Below is a description of how Bitcoin works.

1. First of all, mines create Bitcoin with the help of computers to solve mathematical functions. Then there is the process of verifying transactions.

2. In the next stage, traditional currencies are used to trade bitcoins. In fact, it works as a gateway to the world of cryptocurrencies, especially for those who are not miners. We can say that it is the same as buying stocks using a trading app.

3. Whether you are an individual or a businessman, you can create wallets to send or receive Bitcoin. If you have used a PayPal account, you can easily use this type of wallet as well. The good thing about cryptocurrency is that it is based on a secure network. In addition, it makes all transactions completely secure.

Can you mine Bitcoins at home?

If you are interested in mining Bitcoin at home, the description below can help you get started.

Cryptocurrency mining

Cryptocurrency mining is an approach that involves confirming cryptocurrency transactions and entries in the blockchain book. If you want to authorize or mine cryptocurrency transactions, you have to compete with many other minors by doing complex calculations. This type of processing requires a lot of processing power.

As soon as the transaction is completed, the system rewards you with bitcoin or any currency you mine.

Can you use your laptop for bitcoin mining?

The good news is that you can use your laptop to mine Bitcoin. However, the million dollar question is can this bring you enough money? The short answer is no. Although you can mine using your laptop, you will not earn more than a penny, which is not worth it.

In other words, you need an extremely powerful computer with multiple graphics cards to enjoy the highest mining speed.

So, if you are interested in mining or investing in Bitcoin, you can follow the tips given in this article.

4 common mistakes you should avoid when trading cryptocurrencies

Today, you can invest in cryptocurrencies quickly and easily. You have the freedom to invest with the help of an online broker, but you cannot say for sure if this is a safe endeavor. There are many risks and pitfalls you have to face if you are considering entering this area. However, you don’t have to become a master in the world of informatics or finance to get started. What this means is that you need to make an informed decision. In this article, we will talk about some common mistakes that most cryptocurrency investors make. Read on to find out more.

1: You are buying the wrong coins

If you decide to buy Bitcoin, you have to be careful. There are different types of Bitcoin, such as Bitcoin Private, Bitcoin SV, Bitcoin Gold and Bitcoin Cash. In other words, there are a number of shoots that you need to look out for.

While these are not bad or scams, be sure to know what you are buying. Even if you buy the wrong coin, you can still sell it and look for the right one.

2: You’re not for Wild Ride

If you want to enter the world of cryptocurrencies, you have to have nerves of steel to face instability. Unlike the traditional world of finance, cryptocurrency has extreme volatility, says Theresa Morison, a certified financial planner in Arizona.

According to her, as a new investor, you should initially invest a small amount, for example $ 100 a month, and then forget about it. If you watch the market every day, it will drive you crazy.

In addition, just because you are a beginner, you may want to stick to 2 to 3 cryptocurrencies that are familiar to you. Ideally, first consider established coins such as Bitcoin and Ethereum.

3: You do not double check the address

Many cryptocurrency traders lose their coins just because they don’t check the address. Unlike a conventional bank transfer, you can’t just cancel a transaction. So, you have to be very careful when performing this type of transaction using cryptocurrency. If you are not careful enough, you can lose thousands of dollars per second.

4: You have lost access to your wallet

Although there is a limited number of 21 million Bitcoins, the entire number of Bitcoins is not created. The reason is that many coin owners have lost access to their wallets due to forgotten passwords.

According to a Chainanalysis report, 1 in 5 Bitcoins mined so far is not available due to a lost password. So make sure you store your password in a safe place before you start reading.

In short, we suggest that you avoid these four most common mistakes if you want to become successful in the world of cryptocurrency trading. We hope these tips will help you be confident and achieve success as a trader or investor.