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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 is a lot of NEWS in this market every day. Here are some highlights that give us an insight into how new and exciting this market space is:
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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. ”
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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.
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This development has the potential to allow people to invest in cryptocurrency space without owning a CC or using CC exchange services. The future of bitcoin 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 money laundering concerns.
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The CME move also suggests that bitcoin has become too big 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, since volume and liquidity are important in derivatives markets.
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“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 a “huge backlog of demand” from customers, he said. Duffy also believes that bringing institutional traders to market could make bitcoin less volatile.
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The Japanese countryside uses cryptocurrencies 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 may seek the support of the national government or seek private investment. Several ICOs have had serious problems, and many investors are skeptical that each new token will have value, especially if the ICO turns out to be another joke or scam. Bitcoin was certainly not a joke.
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INITIAL COIN OFFER – (ICO)

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. The ICOs were unregulated, and some were completely fake. However, a legitimate ICO can raise a lot of money to fund a new Blockchain project and network.
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It is typical for an ICO to generate a high price token 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 many, and today we have about 800 tokens in the game. All these tokens have a name, they are all cryptocurrencies, and except for 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.
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As we said in No. 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 every transaction in order to tax them all. They all have huge debts and do not have enough money.
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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.
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A great feature of Bitcoin is that the founders 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.
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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.
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CRYPTO TREND will be your guide if and when you are ready to invest in this market space.
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Stay Tuned!

Getting Started with Crypto

Investing in the cryptocurrency market space can be a bit daunting for a traditional investor, as investing directly in cryptocurrency (CC) requires the use of new tools and the adoption of some new concepts. So, if you decide to put your fingers in this market, you will want to have a very good idea of ​​what to do and what to expect.

Buying and selling CC requires you to choose an exchange that deals with the products you want to buy and sell, whether it is Bitcoin, Litecoin or any of over 1300 other tokens in the game. In previous editions, we have briefly described the products and services available on several exchanges, in order to give you an idea of ​​the different offers. There are many exchanges to choose from and they all do things their own way. Look for things that are important to you, for example:

– Deposit policies, methods and costs of each method

– Withdrawal policies and costs

– What fiat currencies do they use for deposits and payouts

– Products they deal with, such as crypto coins, gold, silver, etc.

– Transaction costs

– where is this stock exchange? (USA / UK / South Korea / Japan …)

Be prepared for the Exchange setup procedure to be detailed and time consuming, as exchanges generally want to know a lot about you. This is similar to opening a new bank account, because stock exchanges are brokers of valuables and want to make sure that you are what you stand for and that you are a person you trust. It seems that “trust” is earned over time, because stock exchanges usually allow only small amounts of investment to begin with.

Your Exchange will keep your CCs in storage for you. Many offer “cold storage” which simply means keeping your coins “offline” until you indicate that you want to do something with them. There is a lot of news about Exchange hacking and a lot of coins stolen. Imagine that your coins are on something like a bank account on the stock exchange, but remember that your coins are only digital and that all blockchain transactions are non-refundable. Unlike your bank, these exchanges do not have deposit insurance, so keep in mind that hackers are always out there trying to get their crypto coins and steal them. Stock exchanges generally offer password-protected accounts, and many offer two-factor authorization schemes – something to seriously consider to protect your account from hackers.

Since hackers like to rob stock exchanges and your account, we always recommend that you use a digital wallet for your coins. It is relatively easy to move coins between your Exchange account and your wallet. Be sure to choose a wallet that holds all the coins you want to buy and sell. Your wallet is also a device you use to “spend” your coins at merchants who accept CC for payment. The two types of wallets are “hot” and “cold”. Hot wallets are very easy to use, but leave your coins exposed to the Internet, but only on your computer, not on an Exchange server. Cold wallets use offline storage media, such as specialized hardware memory sticks and simple printouts. Using a cold wallet makes transactions more complicated, but they are the most secure.

Your wallet contains a “private” key that authorizes all transactions you want to initiate. You also have a “public” key that is shared online so that all users can identify your account when they are involved in a transaction with you. Once hackers get your private key, they can move your coins wherever they want, and that’s irreversible.

Despite all the challenges and wild volatility, we are convinced that underlying blockchain technology is changing the game and will revolutionize the way transactions are conducted in the future.

What is Bitcoin?

Bitcoins have become a very well-known and popular form of currency over time. However, what exactly is Bitcoin? The following article will go through the in-s and outs of this currency that jumped out of nowhere and spread like wildfire. How is it different from normal currencies?

Bitcoin is a digital currency, it is not printed and never will be. They are kept electronic and no one has control over them. They are produced by people and companies, creating the first form of money known as cryptocurrency. While normal currencies are seen in the real world, Bitcoin passes through billions of computers around the world. From Bitcoin in the United States to Bitcoin in India, it has become a global currency. However, the biggest difference it has from other currencies is that it is decentralized. This means that no particular company or bank owns it.

Who created it?

Satoshi Nakamoto, a software developer, proposed and created Bitcoin. He saw it as a chance to have a new currency in the market without central government.

Who prints it?

As mentioned earlier, the simple answer is no one. Bitcoin is not a printed currency, it is a digital currency. You can even make online transactions using bitcoin. So you can’t produce unlimited Bitcoins? Absolutely not, Bitcoin is designed to never “mine” more than 21 million Bitcoins in the world at once. Although they can be divided into smaller quantities. The hundred millionth part of Bitcoin is called “Satoshi”, after its creator.

What is Bitcoin based on?

For appearance and conventional use, Bitcoin is based on gold and silver. However, it is true that Bitcoin is actually based on pure mathematics. He also has nothing to hide because he is open source. So everyone can look at it to see if it works the way they claim.

What are the characteristics of Bitcoin?

1. As mentioned earlier, it is decentralized. It is not owned by any particular company or bank. Every software that Bitcoin miners makes a network and they work together. The theory was, and it worked, that if one network broke down, money would still flow.

2. Easy to install. You can set up a Bitcoin account in seconds, unlike big banks.

3. It is anonymous, at least in part, that your Bitcoin addresses are not associated with any type of personal information.

4. It is completely transparent, all transactions using Bitcoin are shown on a large chart, known as a blockchain, but no one knows that it is you because no name is associated with it.

5. Fees for transactions are small, and compared to bank fees, the rare and small fees charged for Bitcoin are almost non-existent. It’s fast, very fast. Wherever you send money, it will usually arrive in a few minutes after processing. It is undeniable, which means that once you submit your Bitcoins, they will disappear forever.

Bitcoin has greatly changed the world and the way we see money. Many people are wondering if it is possible to make a living from bitcoin. Some have even tried to do so. Despite that, Bitcoin is now part of our economy, a unique type of currency, and will not disappear soon.

5 Benefits of Cryptocurrency Trading

When it comes to cryptocurrency trading, you have to guess whether the market you have chosen will grow or fall in value. And the interesting thing is that you never own digital assets. In fact, derivatives are traded such as CFDs. Let’s look at the benefits of cryptocurrency trading. Read on to find out more.

Volatility

Although cryptocurrency is a new market, it is quite unstable due to short-term speculative interest. The price of bitcoin fell to $ 5,851 from $ 19,378 in 2018, in just one year. However, the value of other digital currencies is fairly stable, which is good news.

What makes this world so exciting is the volatility of cryptocurrency values. Price movements offer many opportunities for traders. However, this also carries a high risk. Therefore, if you decide to research the market, just make sure you research and put together a risk management strategy.

Business hours

The market is usually open for 24/7 trade because it is not regulated by any government. Moreover, transactions are conducted between buyers and sellers around the world. There may be short downtime when the infrastructure is updated.

Improved liquidity

Liquidity refers to how quickly digital currency can be sold for cash. This feature is important because it allows for shorter transaction times, better accuracy and better prices. In general, the market is somehow illiquid because financial transactions take place on different stock exchanges. Thus, small shops can bring big changes in prices.

Leverage exposure

Since CFD trading is considered a leverage product, you can open a position on what we call “margin”. In this case, the value of the deposit is part of the value of the trade. So you can enjoy great exposure to the market without investing a lot of money.

The loss or gain will reflect the value of the position at the time of its closing. Therefore, if you trade on the margins, you can make a huge profit by investing a small amount of money. However, it also increases losses that can exceed your deposit in the trade. Therefore, make sure to consider the total value of the position before investing in CFDs.

It is also important to ensure that you follow a solid risk management strategy, which should include appropriate restrictions and stops.

Quick account opening

If you want to buy cryptocurrencies, make sure you do it through an exchange office. All you have to do is sign up for a currency account and keep the currency in your wallet. Keep in mind that this process can be restrictive and time consuming and labor intensive. However, once the order is created, the rest of the process will be fairly smooth and hassle-free.

In short, these are some of the most prominent benefits of cryptocurrency trading here and now. We hope you find this article very helpful.

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 can’t say for sure if this is a safe endeavor. There are many risks and pitfalls you must 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 buy the wrong coins

If you have decided to buy Bitcoin, you must 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 must 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, you can first consider established coins such as Bitcoin and Ethereum.

3: Do not check the address again

Many cryptocurrency traders lose their coins just because they do not 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, a whole number of Bitcoins are not being 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 keep 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 succeed as a trader or investor.

Has cryptocurrency become the dream investment of every Indian?

Rich rewards often carry great risks, and so does a very volatile cryptocurrency market. Uncertainties in 2020 have led globally to increased interest from the masses and large institutional investors in cryptocurrency trading, a new-age asset class. Increased digitalisation, a flexible regulatory framework and the lifting of the Supreme Court ban on banks doing business with cryptocurrency-based companies have halted the investment of more than 10 million Indians last year. Several major global cryptocurrency exchanges are actively exploring the Indian cryptocurrency market, which shows a continuous increase in daily trading volume over the past year amid a sharp drop in prices as many investors looked to buy value. As the cryptocurrency craze continues, many new cryptocurrency exchanges have emerged in the country that enable buying, selling and trading by offering functionality through user-friendly applications. WazirX, India’s largest cryptocurrency trading platform, doubled its users from one million to two million between January and March 2021.

What drives the world’s largest crypto exchanges on the Indian market?

In 2019, the world’s largest cryptocurrency exchange by trading volume, Binance bought Indian trading platform WazirX. Another crypto start up, Coin DCX has secured an investment from Seychelles-based BitMEX and San Francisco-based Coinbase giant. Crypto and blockchain startups in India attracted investments of $ 99.7 million by June 15, 2021, for a total of about $ 95.4 million in 2020. In the last five years, global investment in the Indian crypto market has increased by an incredible 1487%.

Despite India’s vague policies, global investors are making big bets on the country’s digital coin ecosystem due to a number of factors such as

• Technologically savvy Indian population

The predominant population of 1.39 billion are young (average age between 28 and 29) and technically savvy. While the older generation still prefers to invest in gold, real estate, patents or stocks, the newer ones accept high-risk cryptocurrency exchanges because they are more flexible. India ranks 11th in the 2020 Chainalysis report on the list for global adoption of cryptocurrencies, showing excitement over cryptocurrencies among the Indian population. No less than the government’s friendly attitude towards cryptocurrencies or rumors swirling around cryptocurrencies can shake young people’s confidence in the digital coin market.

India offers the cheapest internet in the world, where one gigabyte of mobile data costs around $ 0.26, while the global average is $ 8.53. Thus, nearly half a billion users benefit from affordable internet access, which increases India’s potential to become one of the world’s largest crypto-economies. According to SimilarWeb, this country is the second largest source of web traffic to the peer-to-peer bitcoin trading platform, Paxful. While the mainstream economy is still struggling with the “pandemic effect”, cryptocurrency is gaining momentum in the country as it provides young generations with a new and fast way to make money.

It is safe to say that cryptocurrencies could become Indian millennials, which is gold for their parents!

• The rise of Fintech start-ups

The craze for cryptocurrencies has led to the emergence of multiple trading platforms such as WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin and many others. These cryptocurrency exchange platforms are highly secure, available on a variety of platforms and enable instant transactions, providing a friendly interface for crypto enthusiasts to buy, sell or trade digital assets indefinitely. Many of these platforms accept INR for purchases and trading fees of only 0.1% so simple, fast and secure platforms represent a lucrative opportunity for both first-time investors and local retailers.

WazirX is one of the leading cryptocurrency exchange platforms with more than 900,000 users, providing users with the possibility of equal transactions. CoinSwitch Kuber provides the best cryptocurrency exchange platform for Indians and is ideal for beginners as well as for those who work every day. Unocoin is one of the oldest cryptocurrency exchange platforms in India with over one million traders via mobile applications. CoinDCX provides users with more than 100 cryptocurrencies as an exchange option, and even provides investors with insurance to cover losses in the event of a security breach. So, global investors are looking at the multitude of cryptocurrency exchange platforms in India to take advantage of the emerging market.

• Mixed government response

A bill banning virtual currency that would criminalize anyone involved in the possession, issuance, mining, trading and transfer of cryptocurrencies could be passed in law. However, Finance and Corporate Affairs Minister Nirmala Sitharaman eased concerns from some investors by saying the government had no plans to ban the use of cryptocurrencies altogether. In a statement given to the leading English newspaper, Deccan Herald, the Minister of Finance said: “For our part, we are very clear that we are not closing all options. We will allow certain windows for people to experiment on blockchain, bitcoins or cryptocurrencies.” It is obvious that the government is still examining the national security risks posed by cryptocurrencies before deciding on a total ban.

In March 2020, the Supreme Court overturned a central bank decision to ban financial institutions from trading cryptocurrencies, prompting investors to accumulate in the cryptocurrency market. Despite the constant fear of a ban, the volume of transactions continued to grow, and user registration and cash inflows on the local cryptocurrency exchange increased 30 times compared to a year earlier. One of India’s oldest stock exchanges, Unocoin added 20,000 users in January and February 2021. The total volume of Zebpay per day in February 2021 is equivalent to the amount generated throughout February 2020. Addressing the cryptocurrency scenario in India, the Finance Minister in an interview with CNBC-TV18 said: “I can only give you this clue that we are not closing our minds, but looking for ways in which experiments can take place in the digital world and cryptocurrency.”

Instead of sitting on the sidelines, investors and stakeholders want to make the most of the expansion of the digital coin ecosystem until the government imposes a ban on “private” cryptocurrency and announces a sovereign digital currency.

Is India moving towards financial inclusion with cryptocurrencies?

Formerly considered a “boys’ club ”due to the dominant engagement of the male population in the cryptocurrency market, the ever-growing number of female investors and traders has led to more gender neutrality in new and digital forms of investment methods. Women used to stick to traditional investments, but now they are becoming increasingly risky and entering the crypto space in India. After the Supreme Court clarified the legality of the “virtual currency,” India’s cryptocurrency platform, CoinSwitch witnessed an exponential increase of 1,000% of female users. Although female investors still make up a small percentage of the crypto community, they are creating fierce competition in the Indian market. Women tend to save much more than their male counterparts, and greater savings mean greater diversity in investments such as high-return assets such as cryptocurrencies. Also, women are more analytical and better at assessing risks before making the right investment choices, so they are more successful investors.

Increasing the usual institutional adoption of cryptocurrencies

Uncertainty and panic caused by SARS-Covid 19 led to a liquidity crisis even before the economic crisis erupted. Many investors have turned their funds into cash to protect their finances, resulting in falling bitcoin and altcoin prices. But even though the cryptocurrency suffered a major crash, it still managed to be the asset class with the best performance in 2020. With the increased vulnerability of the system and the loss of confidence in central bank policies and money in its current design, people have an increased appetite for digital currencies resulting in the return of cryptocurrency. Due to the great performance of cryptocurrency in the midst of the global financial crisis, the upward trend has strengthened interest in the virtual currency market in Asia and the rest of the world.

Furthermore, to stimulate society’s demand for practical and reliable transactional solutions, digital payment applicants such as PayPal have also demonstrated their support for cryptocurrencies that can enable consumers to hold, buy or sell virtual assets. Recently, Tesla CEO Elon Musk announced an investment in the cryptocurrency market worth $ 1.5 billion, and that the electric company will accept bitcoin from customers, which led to an international jump in the price of bitcoin from $ 40,000 to $ 48,000 within two days . The two largest payment platforms worldwide, Visa and Mastercard, also support cryptocurrencies by introducing them as a medium for conducting transactions. While Visa has already announced that it allows transactions with stable coins on the Ethereum blockchain, Mastercard will start transactions with cryptocurrencies sometime in 2021.

What is the future of the cryptocurrency market in India?

The Indian cryptocurrency market is not immune to the terrible declines of cryptocurrencies. Despite huge investments from global partners, local investors continue to stay away from crypto investments due to uncertainty over the legality of India’s digital coin ecosystem, as well as high market volatility. Although the cryptocurrency market has been booming since last year, Indians own less than 1% of the world’s bitcoin, creating a strategic disadvantage for the Indian economy. The Indian government plans to appoint a new panel to study the possibilities of regulating digital currencies in the country, as well as focus on blockchain technology and propose it for technological improvements.

The ability of blockchain technology to provide secure and unchanging infrastructure has been understood by various industries to embed transparency in transactions. For a country with more than 15 million cryptocurrency users, the new board recommendation could be of great value in determining the future of cryptocurrency in India. However, stakeholders believe that technical and economic power will make India a key player in the crypto and blockchain market. Gradually, cryptocurrency is becoming increasingly accepted, which could lead to greater adoption of digital currency.

According to another TechSci Research report on “Indian cryptocurrency market By offer (hardware and software), by process (mining and transactions), by type (Bitcoin, Etgereum, Bitcoin Cash, Ripple, Dashcoin, Litecoin, others), by end user (banking, real estate, stock exchange and virtual currency), By regions, forecasts and opportunities, 2026 “, the Indian cryptocurrency is projected to grow with significant CAGR due to the growing demand for transparency and reduced transaction costs. In addition, increasing digital currency adoption and growing blockchain technology are boosting the Indian cryptocurrency market.

4 tips to help you enjoy a successful crypto trading career

Today, if you want to make a lot of money with Bitcoin, it is best to trade instead of investing. All you need to do is buy and sell your coins and earn a small amount of profit after each sale. If you are just starting out, you will have to start from scratch like everyone else. If you play well, you can earn tons of money in a short period of time. In this article, we have some tips that can help you enjoy a successful cryptocurrency trading career. Read on to find out more.

You need to consider many important things if you are interested in making tons of money by trading Bitcoins. It all comes down to your experience and intelligence. Without further ado, let’s take a look at some tips that can help you make a lot of money and avoid some common mistakes.

1. Know the risk first

This is one of the most common mistakes most traders make. If you don’t know what the risk is in this trade, you shouldn’t go on this adventure. If you are not aware of the challenge, you may end up losing a lot of money.

Before you invest your hard-earned money, you may want to assess the risk. So, this is one of the most important things to consider.

2. Diversify your investments

When it comes to bitcoin trading, we suggest you diversify your investments. This applies to all types of investments. In other words, if you want to invest only in Bitcoin, you will be wrong. You also need to invest your money wisely in other cryptocurrencies.

This is important if you want to be safe and reduce your losses and turn them into profits.

3. Be patient

Money does not grow on trees. All traders enter the world of cryptocurrencies to make money. However, you cannot make money immediately after you have purchased the desired cryptocurrency. And then there is no guarantee that you will continue to make a profit during your career. Therefore, you may need to be prepared to deal with this type of situation.

4. Don’t be greedy

Lastly, it is important to stay away from greed because it is your biggest enemy when it comes to cryptocurrency trading. As Bitcoin prices continue to fluctuate, you need to have patience. It is not a good idea to be afraid of fluctuations and sell your coins immediately. So if you don’t have patience, you can’t achieve success in a career as a trader.

Summary

In short, these are some of the most useful tips you can try if you want to succeed in cryptocurrency trading. If you play the game well, you can make a good chunk of money in a few years, if not months.

How does cryptocurrency gain in value?

Cryptocurrencies are the latest ‘big thing’ in the digital world and are now recognized as part of the monetary system. In fact, enthusiasts have labeled it a ‘money revolution’.

Clearly, cryptocurrencies are decentralized digital assets that can be exchanged between users without the need for central authority, most of which are created by special computing techniques called “mining”.

The acceptance of currencies, such as the US dollar, the British pound and the euro, as legal tender is because they were issued by the central bank; digital currencies, however, such as cryptocurrencies, do not depend on public confidence and trust in the issuer. As such, several factors determine its value.

Factors determining the value of cryptocurrencies

Principles of a free market economy (mainly supply and demand)

Supply and demand are the main determinants of the value of anything valuable, including cryptocurrencies. This is because if more people are willing to buy a cryptocurrency and others are willing to sell, the price of that particular cryptocurrency will rise, and vice versa.

Mass Adoption

Mass adoption of any cryptocurrency can bring down its price per month. This is because the supply of many cryptocurrencies is limited to a certain limit and, according to economic principles, an increase in demand without a corresponding increase in supply will lead to an increase in the price of that particular commodity.

More cryptocurrencies have invested more resources to ensure their mass adoption, and some have focused on the applicability of their cryptocurrencies to urgent personal issues as well as key everyday cases, with the intention of making them indispensable in everyday life.

Fiat Inflation

If a fiat currency, such as the USD or GBP, becomes inflated, its price rises and its purchasing power declines. This will then cause an increase in the cryptocurrency (we use Bitcoin as an example) compared to that fiat. The result is that with every bitcoin you will be able to acquire more of that fiat. In fact, this situation was one of the main reasons for the increase in the price of Bitcoin.

Fraud and the history of cyber attacks

Fraud and hacks are also key factors affecting the value of cryptocurrencies, as they are known to cause wild changes in estimates. In some cases, a team that supports cryptocurrency may be fraudsters; they will pump up the price of cryptocurrency to attract unsuspecting individuals, and when their hard-earned money is invested, fraudsters cut the price, which then disappear without a trace.

It is therefore imperative that you watch out for cryptocurrency scams before investing your money.

Some other factors to consider that affect the value of cryptocurrencies include:

  • The way cryptocurrency is stored, as well as its usefulness, security, ease of acquisition and cross-border acceptability

  • The strength of a community that supports cryptocurrency (this includes funding, innovation and loyalty of its members)

  • Low related cryptocurrency risks as perceived by investors and users

  • Sense of news

  • Cryptocurrency market liquidity and volatility

  • Country regulations (this includes banning cryptocurrency and ICO in China and accepting it as legal tender in Japan)

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 rumors is “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 was in the past) – many investors see them as a reserve investment option for stocks, physical assets such as gold and fiat (traditional) currencies. Baud rate also affects cryptocurrency volatility. For the fastest, the transfer takes only 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 cryptocurrency lifecycle trends. 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, an investor who makes a transaction of 100 million on the stock exchange will not cause a huge 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 to cryptocurrency features or the expansion of blockchain collaboration, making it more attractive to potential investors (such as activating SegWit basically caused Bitcoin to double in value).

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 first paragraph question – 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 used properly.

Cryptocurrency for beginners

In the first days of its launch in 2009, several thousand bitcoins were used to buy pizza. Since then, the meteoric rise in cryptocurrency to $ 65,000 in April 2021, after a staggering 70 percent drop to about $ 6,000 in mid-2018, has baffled many people – cryptocurrency investors, traders or simply the curious who missed the ship.

How it all started

Keep in mind that dissatisfaction with the current financial system has led to the development of the digital currency. The development of this cryptocurrency is based on the blockchain technology of Satoshi Nakamoto, a pseudonym apparently used by a programmer or a group of developers.

Despite many opinions predicting the death of cryptocurrency, the performance of bitcoin has inspired many other digital currencies, especially in recent years. The success with crowdfunding brought about by blockchain fever has also attracted those to deceive the unsuspecting public and this has attracted the attention of regulators.

Outside of bitcoin

Bitcoin has inspired the launch of many other digital currencies. There are currently more than 1,000 versions of digital coins or tokens. Not all are the same and their values ​​are very different, as is their liquidity.

Coins, altcoins and tokens

At this point, suffice it to say that there are fine differences between coins, altcoins and tokens. Altcoins or alternative coins generally describe anything other than pioneering bitcoin, although altcoins such as ethereum, litecoin, ripple, dogecoin and dasha are considered the ‘main’ category of coins, meaning they are traded on multiple cryptocurrency exchanges.

Coins serve as currency or a storehouse of value, while tokens offer the use of assets or useful assets, an example being a blockchain supply chain management service to validate and track wine products from the winery to the consumer.

It is important to note that low-value tokens or coins offer opportunities to increase, but do not expect similar meteoric increases as bitcoin. Simply put, lesser-known tokens are easy to buy, but difficult to sell.

Before embarking on cryptocurrency, start by studying the value proposition and technological considerations, or commercial strategies listed in the White Paper that accompanies each initial coin offering or ICO.

For those familiar with stocks and stocks, this is no different than an initial public offering or IPO. However, IPOs are issued by companies with tangible assets and business experience. Everything is done in a regulated environment. On the other hand, the ICO is based solely on the idea proposed in the White Paper by a company – which has yet to operate and without assets – that is looking for start-up funds.

Unregulated, so customers beware

‘What is unknown cannot be regulated’ probably sums up the situation with digital currency. Regulators and regulations are still trying to keep up with cryptocurrencies that are constantly evolving. The golden rule in crypto space is ‘caveat emptor’, let the customer beware.

Some countries keep an open mind by adopting a hands-free policy for cryptocurrencies and blockchain applications, while keeping an eye on open scams. However, there are regulators in other countries who are more concerned with the disadvantages than the advantages of digital money. Regulators generally understand the need to strike a balance and some look to existing securities laws to try to control many types of cryptocurrencies globally.

Digital wallets: the first step

A wallet is necessary to start working with cryptocurrency. Consider electronic banking, but without the protection of the law in the case of virtual currency, so that security is the first and last thought in the crypto space.

The wallets are of the digital type. There are two types of wallets.

  • Internet-related hot wallets that put users at risk of hacking

  • Cold wallets that are not connected to the Internet and are considered safer.

In addition to the two main types of wallets, it should be noted that there are wallets for only one cryptocurrency and others for multiple cryptocurrencies. There is also the option to have a wallet with multiple signatures, somewhat similar to a joint bank account.

The choice of wallet depends on whether the user is interested in bitcoin or ethereum, because each coin has its own wallet, or you can use a third-party wallet that includes security features.

Notes in the wallet

The cryptocurrency wallet has a public and private key with personal transaction records. The public key includes a reference to the account or cryptocurrency address, as opposed to the name required to receive payment by check.

The public key is available for everyone to see, but transactions are confirmed only after verification and validation based on a consensus mechanism relevant to each cryptocurrency.

A private key can be considered a PIN commonly used in e-financial transactions. It follows that the user must never reveal the private key to anyone and make backup copies of this data to be stored offline.

It makes sense to have a minimum amount of cryptocurrency in a hot wallet, while a larger amount should be in a cold wallet. Losing a private key is just as good as losing your cryptocurrency! The usual precautions apply to online financial transactions, from having strong passwords to being wary of malware and phishing.

Wallet formats

Different types of wallets are available to suit individual preferences.

  • Third-party hardware wallets that must be purchased. These devices work as a USB device that is considered secure and connected only when needed to the Internet.

  • Web-based wallets provided by, for example, crypto exchanges are considered hot wallets that put users at risk.

  • Wallets based on desktop or mobile software are generally available for free and can be provided by coin issuers or third parties.

  • Wallets on paper can be printed with relevant data on cryptocurrency owned with public and private keys in QR code format. They should be kept in a safe place until they are required during a crypto transaction, and copies should be made in the event of an accident such as water damage or printed data that fades over time.

Crypto exchanges and markets

Crypto exchanges are trading platforms for those who are interested in virtual currencies. Other options include websites for direct trade between buyers and sellers, as well as brokers where there is no ‘market’ price, but it is based on a compromise between the parties to the transaction.

So, there are many crypto exchanges located in different countries, but with different standards of security practices and infrastructure. They range from those that allow anonymous registration that only requires email to open an account and start trading. However, there are others that require users to adhere to international authentication, known as Know-Your-Customer, and anti-money laundering measures (AML).

The choice of cryptocurrency exchange depends on the preferences of the users, but anonymous ones may have restrictions on the allowed volume of trading or may be subject to sudden new regulations in the country of the domicile market. Minimum administrative procedures with anonymous registration allow users to start trading quickly, while going through KYC and AML processes will take longer.

All cryptocurrencies must be properly processed and verified, which can take from a few minutes to a few hours, depending on the coins or tokens being performed and the volume of the trade. Scalability is known to be a problem with cryptocurrencies and developers are working on ways to find a solution.

Cryptocurrency exchanges are in two categories.

  • Fiat-cryptocurrency Such exchanges allow the purchase of fiat-cryptocurrency through direct transfers from bank or credit and debit cards, or through ATMs in some countries.

  • Only cryptocurrencies. There are cryptocurrencies that deal only with cryptocurrencies, which means that customers already have to own a cryptocurrency – such as bitcoin or ethereum – to ‘exchange’ for other coins or tokens, based on the market rate

Fees are charged to facilitate the purchase and sale of cryptocurrencies. Users should conduct a survey to be satisfied with the infrastructure and security measures, as well as to determine the fees that suit them given the different rates charged by the various stock exchanges.

Don’t expect the usual market price for the same cryptocurrency with exchange differences. It might be worth spending time researching the best price of coins and tokens that interest you.

Financial transactions online carry risks and users should heed warnings such as two-factor authentication or 2-FA, keep abreast of the latest security measures and be aware of phishing scams. One golden rule for identity theft is not to click on the links provided, no matter how authentic the message or email is.