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6 Benefits of investing in cryptocurrencies

The birth of bitcoin in 2009 opened the door for investment opportunities in a completely new type of asset class – cryptocurrency. A lot went into space early.
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Interested in the enormous potential of these young but promising assets, they bought the cryptophone at cheap prices. So in 2017, they became millionaires / billionaires. Even those who did little reaped a decent income.

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After three years, cryptocurrencies still remain profitable, and the market remains here. Maybe you are already an investor / trader or maybe you are thinking of trying your luck. In both cases, it makes sense to know the benefits of investing in cryptocurrencies.

Cryptocurrencies have a bright future

According to the “Imagine 2030” report published by Deutsche Bank, credit and debit cards will become obsolete. They will be replaced by smartphones and other electronic devices.

Cryptocurrencies will no longer be seen as outcasts, but as an alternative to existing monetary systems. Their benefits, such as security, speed, minimum transaction fees, ease of storage and relevance in the digital age, will be recognized.

Specific regulations promote cryptocurrencies and increase their use. The report predicts that by 2030 there will be 200 million users of cryptocurrency wallets, and by 2035 – almost 350 million.

The opportunity to be part of a growing community

#IndiaWantsCrypto from WazirX the campaign recently ended 600 days. It has become a mass movement that supports the adoption of cryptocurrencies and blockchain in India.

In addition, a recent Supreme Court ruling that lifted RBI’s ban on crypto banking from 2018 has instilled a new surge of confidence among Indian investors in bitcoin and cryptocurrencies.

The Edelman Trust Barometer 2020 report also notes the growing people’s faith in cryptocurrency and blockchain technology. According to the results, 73% of Indians trust cryptocurrencies and blockchain technology. 60% note that the impact of the cryptocurrency / blockchain will be positive.

As an investor in cryptocurrency, you remain part of a thriving and fast-growing community.

Increase profit potential

Diversification is an important investment rule. Especially at a time when most assets have suffered heavy losses due to economic hardship caused by the COVID-19 pandemic.

While investing in bitcoin has yielded 26% return since the beginning of the year to date, gold has returned 16%. Many other cryptocurrencies have a three-digit ROI. Stock markets, as we all know, have published horrible results. In April, crude oil prices are known to have fallen below 0.

Inclusion in your portfolio of bitcoin or any other cryptocurrency will protect the value of your fund in such uncertain situations in the global market. This fact also impressed billionaire macro hedge fund manager Paul Tudor Jones when a month ago he announced plans to invest in bitcoin.

Cryptocurrency markets operate 24X7X365

Unlike conventional markets, cryptocurrency markets operate around the clock, all days of the year without fatigue. This is because digital currency systems are essentially designed using software code that is provided with cryptography.

The operational plan does not provide for human intervention. This way, you are free to trade cryptocurrencies or invest in digital assets if you wish. This is a great benefit! Cryptocurrency markets are very efficient.

For example, since its inception in 2009, Bitcoin has successfully processed 99.98% uptime transactions.

Tweet: https://twitter.com/fernandoulrich/status/1185368277557620736

No documents or formalities are required

You can invest in bitcoin or any other cryptocurrency anywhere and anytime without any unnecessary conditions.

Unlike conventional investment options, where an absurdly large amount of documentation is required to prove yourself as an “accredited investor,” crypto-investments are free for everyone. In fact, this was the goal behind the creation of cryptocurrencies. Democratization of finance / money.

To buy any cryptocurrency on WazirX, you need to open an account for which you just need to provide some basic data including your bank account details. Once they are checked, within hours, you are ready to go.

The sole ownership of the investment

By buying bitcoin or any other cryptocurrency, you become the sole owner of this digital asset. The transaction is peer-to-peer.

Unlike bonds, mutual funds, stockbrokers, no one “manages your investments” for you. You call for a sale whenever you want.

User autonomy is the biggest advantage of cryptocurrency systems, which provides incredible opportunities for self-investment and building a fixed capital.

These were some of the benefits of investing in cryptocurrencies. We hope you find them useful and compelling enough to begin your crypto-investment journey.

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How to find cryptocurrency predictions?

If you have invested in a cryptocurrency, you know that taking into account market conditions is paramount. As an investor, you need to know what is happening with different currencies and what other traders are saying about the future.
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Therefore, if you want to make smart investment decisions, it is better to consider predictions about cryptocurrency. Fortunately, there are many sources on the Internet that allow you to research and search for predictions. This can help you stay ahead of others in the market. Make sure you stay away from scammers and other schemes that claim you will get rich overnight. Below are some credible sources of forecasts that can help you succeed as an investor.
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TradingView

If you are looking for a reliable forecast source, check out TradingView. This platform offers great charting tools that anyone can use. It doesn’t matter if you are a newbie or an advanced user. This platform allows you to learn how different types of cryptocurrencies behave over time. So you can predict their behavior.
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One of the main reasons why this platform offers reliable forecasts is that it has a wide community of experienced investors who are always ready to share their knowledge. Strictly speaking, more than 3.3 million active investors are part of this platform.
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Finder.com

Finder – this is your ideal source if you want to get a valuable idea of ​​the future of cryptocurrency from various reliable authorities. In fact, Finder regularly consults with experts in finance and cryptocurrency and publishes their forecasts for other investors.
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In addition, the platform works with experts from a variety of fields, such as news, finance and technology. Based on discussions with these experts the Finder can make accurate predictions.
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Bitcoin-Wolf

Bitcoin Wolf is another great platform that can provide accurate predictions about cryptocurrencies. By joining the chat of this platform, you can chat around the clock with other experienced investors. In addition, you can take advantage of other great features offered by the platform, such as real-time alerts, peer counseling centers, technical analysis and so on.
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This place is the best platform where you can talk about the future of these currencies. And the great thing is that the experts will give you a deeper understanding of this world and help you make informed decisions.
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When it comes to investing in cryptocurrency, make sure you do your homework first. It’s great to consider predictions so you can make the right decisions. You need to pay attention to what other experienced investors think about the future. Alternatively, you might want to get expert opinion in this area.
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Final thoughts

So, if you check the above sources, you will be able to get an idea of ​​the opinions of other investors in the field. By doing so, you can make better decisions that will ensure the profits of your business. It is better to check the forecasts regularly.
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The technical deal you expected

Everyone loves the deal.

We love that feeling of revealing a hidden value that everyone else didn’t notice. Incorrectly rated vintage corvette with a small scratch on the quarter panel that you could easily remove. A large-screen HD TV in the open box area of ​​your local electronics store.
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You get the image.

But even your savvy shopping hunters have nothing against investors looking for the “next big deal”. In fact, this speculative quest to “come early” often misleads investors.
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Their emotions prevail as they inflate, in effect, short-term market trends, into major stock trading drivers.

This leads to unreasonable expectations and no less unreasonable stock prices.

This leads to irrational trade.

One of the best examples of irrational expectations this year Advanced Micro Devices Inc. (Nasdaq: AMD).

Cryptocurrency Madness

In July, stocks increased on the inflow of profits from the growing cryptocurrency mining market. Ethereum was the “next big deal,” and investors were heavily speculating on AMD’s price, despite signs that the fashion would not continue.
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Even Wall Street analysts were guilty of inflating AMD shares against the backdrop of Ethereum fashion, and somewhat raised their ratings and pricing to, frankly, volatile levels. AMD shares quickly hit overbought territory due to the oddity and wild surge of emotional investment.
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Then AMD had to be fixed, because “there are newcomers, and the more the bearish contingent in the brokerage community is starting to sound on valuation issues and pitfalls.”

This week Morgan Stanley did just that. The brokerage firm said that “sales of AMD graphics chips related to cryptocurrency mining will fall by 50% next year, or a decrease in revenue of $ 250 million.” Morgan Stanley also noted that game console sales will decline by 5.5% in 2018, but this is a drop for AMD, and investors probably already expected this, given the age of the current generation of consoles.

You could almost hear the heart of cryptocurrency speculators breaking when AMD shares fell 9% after the report.

Genuine AMD

To remember the real reason for investing in AMD, you need to look back at 2016. The company caught fire early last year after reviewing several new chips, including a new Ryzen CPU chipset and a new graphics processing unit (GPU), the Vega. Both products had significant prospects, and AMD expected strong sales after the release of the chips.

But both Ryzen and Vega knocked analysts’ expectations out of the water. When they hit the market earlier this year, Ryzen and its family chip, dubbed Threadripper, not only outperformed rival chips from Intel Corp. (Nasdaq: INTC), but also beat them in price. At the same time, Nvidia Corp. (Nasdaq: NVDA) touted its Titan Xp GPU as the fastest in the world, but the top-of-the-line AMD Radeon Vega Frontier Edition GPU model quickly stole the title.

As a result, AMD’s market share in the desktop market increased by approximately 45% and reached 31% to its highest level in 10 years, while Intel fell to 69%. It also steals market share from Intel’s server and data center through the increasingly popular Threadripper processor.

And these are just AMD’s core business operations. When we get to areas like virtual reality, driverless vehicles and artificial intelligence, AMD is already at the cutting edge and ready to become a market leader.

Many of you at this point may ask, “What about AMD’s weak earnings report last week?”

And I would oppose, “What weak incomes are reported?”

Just look at the numbers. AMD earned $ 71 million last quarter with revenue of $ 1.64 billion. Not only did it outpace Wall Street’s main expectations, but it also disgraced last year’s loss of 50 cents a share on earnings of $ 1.31 billion. %.

So why after such a stellar report, AMD shares fell by about 20%? Because the company said profit in the fourth quarter would decline 15% consistently (though that’s still 20% from last year). Once again, it all comes down to the irrational level of the hunt for deals and the excess of emotional trading.

Invest in advanced micro-devices

But you are in luck! This emotional storm has led to AMD trading at a significant discount … and a considerable deal given its significant growth potential – next year AMD sales are expected to grow by about 17% compared to 12.3% for Nvidia and a slight 2.3% for Intel.

Next year, the shares will rise by more than 30%. About how many other large companies besides Alibaba Group Holding Ltd. (NYSE: BABA), can you say so?

So, ignore the hype with cryptocurrency and focus on AMD’s core products and their potential with leading technologies such as AI and data centers. I don’t promise you a smooth ride, but it should be very profitable.

Planning to trade Monero cryptocurrency? Here are the basics to get you started

One of the main precepts of blockchain technology is to provide users with constant privacy. Bitcoin, as the world’s first decentralized cryptocurrency, relied on it to sell itself to a broad audience that then needed a virtual currency free from government intervention.

Unfortunately, along the way, bitcoin has proven to be a number of weaknesses, including scalability and a changeable blockchain. All transactions and addresses are recorded on a blockchain, making it easy for anyone to connect points and disclose private user information based on existing records. Some government and non-governmental agencies already use blockchain analytics to read data on the Bitcoin platform.

Such flaws have led developers to consider alternative blockchain technologies with improved security and speed. One such project is Monero, usually represented by an XMR ticket.

What is Monero?

Monero is a privacy-focused cryptocurrency project whose main goal is to provide better privacy than other blockchain ecosystems. This technology protects user information through hidden addresses and ring signatures.

An open address is the creation of a single address for an individual transaction. Two addresses cannot be linked to one transaction. The received coins go to a completely different address, which makes the whole process incomprehensible to an outside observer.

On the other hand, a ring signature involves mixing account keys with public keys, thus creating a “ring” of multiple signatories. This means that the monitoring agent cannot associate a signature with a specific account. Unlike cryptography (a mathematical method of securing crypto projects), a ring signature is not a new child. Its principles were studied and recorded in a 2001 article by the Weizmann Institute and MIT.

Cryptography has certainly won the hearts of many blockchain developers and fans, but the truth is that it is still a nascent tool with multiple uses. Because Monero uses the already proven Ring signature technology, it has identified itself as a legitimate project to be adopted.

What you need to know before you start trading Monero

Monero Market

The Monero market is similar to the market for other cryptocurrencies. If you want to buy it, then Kraken, Poloniex and Bitfinex are a few exchanges to visit. Poloniex was the first to adopt it, followed by Bitfinex and finally Kraken.

This virtual currency basically looks like pegged to the dollar or against crypts. Some of the available pairings include XMR / USD, XMR / BTC, XMR / EUR, XMR / XBT and more. The trading volume of this currency and liquidity record very good statistics.

One of the good things about XMR is that anyone can participate in mining either as a person or by joining a mining pool. Any computer with much good computing power can extract Monero blocks with a few hiccups. Don’t bother going for ASICS (Integrated Circuits), which are currently required for bitcoin mining.

Price volatility

Despite the formidable network of cryptocurrencies, it is not so special when it comes to volatility. Virtually all altcoins are extremely volatile. This should not worry any avid trader, because it is this factor that makes them profitable in the first place – you buy when prices fall, and sell when they tend to rise.

In January 2015, the XMR was worth $ 0.25 and then ran up to $ 60 in May 2017, and now it’s bowling above the $ 300 mark. The Monero coin recorded its ATH (all-time high) of $ 475 on January 7 before it began falling along with other cryptocurrencies to $ 300. At the time of writing, almost all decentralized currencies are in the price correction phase, and bitcoin ranges between $ 10-11 thousand from its glorious ATH of $ 19,000.

Validity and adoption

Due to its ability to provide reliable privacy, XMR has been adopted by many people, making its coins easily exchanged for other currencies. Simply put, Monero can be easily exchanged for something else.

All Bitcoins in the Bitcoin Blockchain are recorded, and so when an incident like theft happens, every coin involved avoids work, making them unchanged. With monero you can’t tell one coin from another. Therefore, no seller can refuse any of them because it was due to a bad incident.

Currently, the Monero blockchain is one of the most trending cryptocurrencies with a significant number of followers. Like most other blockchain projects, its future looks great, though looming government repression. As an investor you need to conduct proper checks and research before trading any cryptocurrency. If possible, seek the help of financial experts to get on the right track.

Cryptocurrency volatility, lucrative roller coasters

This year, we can observe that cryptocurrencies tend to move up and down daily by as much as 15% of value. Such price changes are known as variability. But what if … it’s perfectly normal, and drastic changes are one of the characteristics of a cryptocurrency that allows you to make a good profit?

First of all, cryptocurrencies have recently hit the mainstream, so all the news about them and rumors are “hot”. After each statement of government officials about the possible regulation or prohibition of the cryptocurrency market, we observe a huge price movement.

Second, the nature of cryptocurrencies is more like a “stock of value” (as it was in the past for gold) – many investors view them as a reserve option for investing in stocks, physical assets such as gold and fiat (traditional) currencies. The transfer rate also affects the volatility of the cryptocurrency. The fastest transfers take even a few seconds (up to a minute), making them an excellent asset for short-term trading when there is currently no good trend for other types of assets.

What everyone needs to keep in mind is that speed also depends on the life trends of cryptocurrencies. Although in conventional markets trends can last for months or even years – here it happens over even 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 100 million transaction in the stock market will not cause huge price changes, but on the scale of the cryptocurrency market it is an important and notable transaction.

Because cryptocurrencies are digital assets, they are subject to technical and software upgrades of cryptocurrency functions or expansion of blockchain collaboration, making it more attractive to potential investors (e.g., activating SegWit basically doubles the value of bitcoin).

These elements together are the reasons why we observe such huge price changes in cryptocurrencies over hours, days, weeks, etc.

But answering the question from the first paragraph – one of the classic rules of trade – buy cheap, sell high – so every day to have short but strong trends (instead of weak ones that last weeks or months like on stocks) gives a much better chance of getting a decent profit when used properly.

Fear not, China does not ban cryptocurrency

In 2008, after the financial crisis, the article “Bitcoin: peer-to-peer electronic monetary system” was published, which describes in detail the concepts of the payment system. Bitcoin was born. Bitcoin has attracted worldwide attention using blockchain technology and an alternative to fiat currencies and commodities. Named the next best technology after the Internet, the blockchain offered solutions to problems we hadn’t been able to solve or ignored over the past few decades. I won’t delve into its technical aspect, but here are a few articles and videos I recommend:

How bitcoin works under the hood

Gentle introduction to blockchain technology

Have you ever wondered how bitcoin (and other cryptocurrencies) actually work?

True, today, February 5, the Chinese authorities have just introduced a new set of rules banning cryptocurrencies. The Chinese government already did this last year, but many have bypassed foreign exchanges. It has now enlisted the almighty “Great Firewall of China” to block access to foreign exchanges to stop its citizens from conducting any cryptocurrency transactions.

To learn more about the position of the Chinese government, let’s go back to a few years ago, in 2013, when bitcoin was gaining popularity among Chinese citizens and prices were rising rapidly. Concerned about price fluctuations and speculation, the People’s Bank of China and five other government ministries issued an official statement in December 2013 entitled “Bitcoin Financial Risk Prevention Notice” (link to Mandarin). Several points were highlighted:

1. Due to various factors such as limited supply, anonymity and the absence of a centralized issuer, bitcoin is not an official currency but a virtual commodity that cannot be used on the open market.

2. All banks and financial institutions are prohibited from offering bitcoin-related financial services or engaging in bitcoin-related trading activities.

3. All companies and websites that offer bitcoin-related services must register with the required government ministries.

4. Due to the anonymity and cross-border nature of bitcoin, organizations providing bitcoin-related services should take preventive measures, such as KYC, to prevent money laundering. Any suspicious activity, including fraud, gambling and money laundering, should be reported to the authorities.

5. Organizations that provide services related to bitcoins should inform the public about bitcoins and the technologies that underlie them, and not mislead the public with misinformation.

Simply put, bitcoin is classified as a virtual commodity (such as gaming credits) that can be bought or sold in its original form rather than exchanged for fiat currency. It cannot be defined as money – that which serves as a medium of exchange, a unit of account and a stock of value.

Despite the report, dated 2013, it is still relevant to the Chinese government’s position on bitcoins, and, as mentioned, there is no information on a ban on bitcoins and cryptocurrencies. Most likely, regulation and education about bitcoin and blockchains will play a role in the Chinese crypto market.

A similar message was published in January 2017, which again emphasizes that bitcoin is a virtual commodity, not a currency. In September 2017, the initial coin offer (ICO) boom led to the publication of a separate notice entitled “Financial Risk Warning Notice for Issued Tokens”. Soon ICOs were banned, and Chinese stock exchanges were investigated and eventually closed. (Looking back 20/20, they made the right decision to ban ICOs and stop pointless gambling). Another blow was dealt to China’s cryptocurrency communities in January 2018, when mining faced serious overclocking, citing excessive electricity consumption.

Although there is no official explanation for the repression against cryptocurrencies, control over capital, illegal activities and protection of citizens from financial risk are among the main reasons cited by experts. Indeed, Chinese regulators have introduced tighter controls, such as restrictions on foreign withdrawals and regulation of foreign direct investment, to limit capital outflows and secure domestic investment. The anonymity and ease of cross-border transactions have also made cryptocurrency a favorite means of money laundering and fraud.

Since 2011, China has played a crucial role in the meteorite rise and fall of bitcoin. At its peak, China accounted for more than 95% of global bitcoin trade and three-quarters of mining operations. With regulators overseeing trade and mining operations, China’s dominance has declined significantly in exchange for stability.

Countries like Korea and India are following suit and are now casting a shadow over the future of cryptocurrencies. (Here I will repeat my opinion: countries regulate cryptocurrency, not ban it). Undoubtedly, we will see that in the coming months new countries will join, which will restrain the turbulent crypto market. Indeed, some order is long overdue. Over the past year, cryptocurrencies have experienced unprecedented price volatility, and ICOs occur literally every other day. In 2017, total market capitalization rose from $ 18 billion in January to a record $ 828 billion.

However, the Chinese community is surprisingly well-disposed, despite the dispersal. Online and offline communities are thriving (I have personally attended many events and visited some firms), and blockchain startups are growing all over China.

Large firms operating on the blockchain, such as NEO, QTUM and VeChain, are attracting huge attention in the country. Startups such as Nebulas, High Performance Blockchain (HPB) and Bibox are also gaining considerable strength. Even giants like Alibaba and Tencent are also exploring blockchain capabilities to enhance their platform. The list goes on and on, but you understand me; it will be HUGGEE!

The Chinese government has also adopted blockchain technology and in recent years has stepped up efforts to support the creation of a blockchain ecosystem.

In China’s 13th Five-Year Plan (2016-2020), he called for the development of advanced technologies, including blockchain and artificial intelligence. It also plans to step up research into the application of fintech in regulation, cloud computing and big data. Even the People’s Bank of China is also testing a prototype digital currency based on the blockchain; however, since it is likely to be a centralized digital currency that has been slapped by some encryption technology, its adoption by Chinese citizens will still have to wait.

The launch by the Ministry of Industry and Information Technology of the Trusted Blockchain Open Lab, as well as the China Technology and Industry Development Forum in China – are some other Chinese government initiatives to support the development of the blockchain in China.

A recent report titled “China Blockchain Development Report 2018” (English version at link) of the China Blockchain Research Center details the development of the blockchain industry in China in 2017, including various measures to regulate the cryptocurrency on the mainland. In a separate section, the report highlighted the optimistic prospects of the blockchain industry and the much attention it received from venture companies and the Chinese government in 2017.

In general, the Chinese government has demonstrated a positive attitude towards blockchain technology, despite the fact that it applies to cryptocurrencies and mining operations. China wants to control the cryptocurrency, and China will get control. Repeated coercive measures by regulators were to protect their citizens from the financial risk of cryptocurrencies and limit the outflow of capital. Today, Chinese citizens legally have cryptocurrencies, but they are not allowed to make any transactions; hence the ban on sharing. As the market stabilizes in the coming months (or years) we will undoubtedly see a revival of the Chinese crypto market. Blockchain and cryptocurrency go hand in hand (except for a private network where a token is not needed). Therefore, countries cannot ban cryptocurrency without banning amazing technology blockchain!

In one we can all agree: the blockchain is still in its infancy. We have a lot of exciting events ahead of us, and right now is probably the best time to lay the groundwork for a world involving a blockchain.

Last but not least HODL!

Crypto TREND – the fifth edition

As we expected, since the publication of Crypto TREND we have received many questions from readers. In this edition we will answer the most common.

What are the changes that could change the game in the cryptocurrency sector?

One of the biggest changes that will affect the world of cryptocurrencies is an alternative method of checking blocks called Proof of Stake (PoS). We will try to maintain this explanation at a fairly high level, but it is important to have a conceptual understanding of what the difference is and why it is an important factor.

Remember that the basic technology of digital currencies is called blockchain, and most modern digital currencies use a validation protocol called Proof of Work (PoW).

With traditional payment methods, you need to trust third parties such as Visa, Interact, a bank or a cash center to pay for your transaction. These trusted structures are “centralized,” meaning they keep their own private ledger that stores the transaction history and balance of each account. They will show you the transaction and you have to agree to the correctness or start a dispute. It is seen only by the parties to the transaction.

In the case of bitcoins and most other digital currencies, books are “decentralized,” meaning everyone on the network gets a copy, so no one should trust third parties, such as banks, because anyone can directly verify the information. This verification process is called “distributed consensus”.

PoW requires “work” to verify a new transaction to log in to the blockchain. In cryptocurrencies, the test is performed by “miners” who have to solve complex algorithmic problems. As algorithmic tasks become more complex, these “miners” need more expensive and powerful computers to solve problems that are ahead of all others. Computers for “mining” often specialize, typically using ASIC chips (integrated circuits dedicated to applications) that are more knowledgeable and quick in solving these complex puzzles.

Here is the process:

  • Transactions are combined into a “block”.
  • The miners argue that the transactions in each block are legal by solving a hashing algorithm puzzle known as the “proof of work problem”.
  • Miner, who solved the “problem of proof of work” block, is rewarded with a small amount of cryptocurrency.
  • After verification, transactions are stored in a public blockchain throughout the network.
  • As the number of transactions increases and so does the complexity of solving hashing problems.

Although PoW has helped take down blockchain and decentralized, distrustful digital currencies, it has some real drawbacks, especially in how much energy these miners consume, trying to solve “evidence of work problems” as quickly as possible. According to the Digiconomist Bitcoin Energy Consumption Index, bitcoin miners use more energy than 159 countries, including Ireland. As the value of each bitcoin grows more and more miners are trying to solve problems by consuming even more energy.

All of this power consumption just for checking trades has forced many people in the digital currency space to look for an alternative way to check blocks, and the main candidate is a method called “Proof of Rate” (PoS).

PoS is still an algorithm, and its purpose is the same as in job validation, but the process of achieving the goal is quite different. There are no PoS miners, but instead we have “validators”. PoS is based on trust and knowledge that all people who check transactions have skin in the game.

Thus, instead of using energy to respond to PoW puzzles, the PoS validator is limited to checking the transaction percentage that reflects its ownership share. For example, a validator that owns 3% of the available airtime could theoretically check only 3% of the blocks.

In PoW, the chances of solving a proof of work problem depend on how much computing power you have. With PoS it depends on how much cryptocurrency you have on the “bet”. The higher your bet, the more likely you are to decide a block. Instead of winning cryptocurrencies, the winning validator receives a transaction fee.

Validators enter their bet by “closing” part of their fund tokens. If they try to do anything harmful against the network, such as creating an “invalid block,” their bet or deposit will be forfeited. If they do their job and do not break the network but do not win the right to check the unit, they will get their share or deposit back.

If you understand the basic difference between PoW and PoS, this is all you need to know. Only those who plan to be miners or validators should understand all the intricacies of these two verification methods. Most people who want to own cryptocurrencies will simply buy them through an exchange rather than engage in actual mining or verification of blocked transactions.

Most of the crypto sector believes that in order for digital currencies to survive long, digital tokens need to move to the PoS model. At the time of writing, Ethereum is the second largest digital currency after bitcoin, and their development team has been working on its PoS algorithm called Casper for the past few years. We are expected to see how Casper will be implemented in 2018, putting Ethereum ahead of all other major cryptocurrencies.

As we have seen in this sector, major developments such as the successful implementation of Casper can significantly raise Ethereum prices. We will keep you informed in future issues of Crypto TREND.

Stay tuned!

What you need to know about cryptocurrency trading boots

Are you particularly interested in cryptocurrency? Do you want to learn more about the tools that will allow you to achieve the best deals? So you better slap your eyes with a cryptocurrency trading bot. Sounds interesting, right? In an era when bots seem to find their application almost everywhere, it is not surprising that they have been introduced even in cryptocurrency trading. Let’s learn more about these bots and clarify key aspects.

Trading bots for cryptocurrencies (or cryptocurrencies) are computer programs that allow you to buy and sell cryptocurrencies at the right time. They strive to bring profit to their users and ensure that they will have an advantage in the long run. Bots closely monitor market conditions and make transactions based on predefined algorithms. It should also be emphasized that you can set your own settings that will facilitate various transactions. Such software is able to respond almost a thousand times faster than human – so its efficiency can not be said.

Crypto trading bots can be divided into many types. Among them you can find bots that follow trends, arbitrage bots and scalping bots. However, according to bitcoin.com, the most popular of these are arbitrage boots.

Trendy bots will come in handy if you’re mostly focusing on trends, as long as you’re working out your strategies. These bots can follow trends and decide if it is profitable to buy and / or sell something.

Scalping programs make it easier for their users to work more effectively in side markets. This means that “scalpers” (as these users are often called) manage to buy something at a lower price and resell at a higher price.

As for arbitrage bots, they should make a profit by studying the prices on several exchanges and, as a consequence, take advantage of price differences.

Once you have decided to try to apply bots to cryptocurrency trading in practice, you should think about which one will be able to meet your business needs. Remember that all bots have different software and hardware requirements. Consider all aspects before making a decision.

Once all the formalities are resolved, you can proceed to the installation procedure. As a matter of fact, you can get a trading bot by turning to any of the 3 options below:

  • Get it for free through an open source platform;

  • Get a paid version of a licensed bot;

  • Create a trading bot (provided you have enough technical knowledge and skills).

Having processed all the details above, you have probably formed an opinion about bots for crypto-trading. Yet let’s summarize all the benefits they have over people.

  • Speed: without a doubt, bots run a hundred times faster than humans

  • Endurance: boots can run around the clock without weekends

  • Capacity: Bots are capable of processing gigabytes of data per second

  • 100% objectivity: bots are not prone to any emotions. They just do what is required of them.

However, many experts argue that in some cases subjective thinking is required, and thus people can surpass heartless bots. But these are individual cases, and given that bots offer so many huge opportunities, you’ll definitely get better if you give them priority.

As you can see, bots for cryptocurrency trading are really useful and versatile, which allows you to make big profits. Just keep in mind that in order to give them a full game, it is strongly recommended to carefully study the features of the bots. And then you have every chance to benefit from this ingenious technology.

Practical tips on cryptocurrency trading

For some time now, I have been closely monitoring the work of cryptocurrencies to feel where the market is heading. The routine taught to me by my elementary school teacher – where you wake up, pray, brush your teeth and take breakfast, moved a little on waking up, praying, and then online (starting with coinmarketcap), just to know which crypto-assets are red .

The start of 2018 was not great for altcoins and relative assets. Their performance has been crippled by bankers ’frequent speculation that the crypto-bubble is about to burst. However, avid cryptocurrency followers are still “trading” and, truth be told, they are reaping.

Recently, bitcoin returned to nearly $ 5,000; Bitcoin Cash has approached $ 500, while Ethereum has found peace in $ 300. Virtually every coin came under attack from beginners who were still in the excitement stage. As of the time of writing, bitcoin is back on track and is selling it for $ 8,900. Many other cryptophones have doubled since the uptrend began, and the market capitalization is $ 400 billion from the recent $ 250 billion threshold.

If you are slowly warming up to cryptocurrencies and want to become a successful trader, the tips below will help you.

Practical tips on cryptocurrency trading

• Start modestly

You have heard that cryptocurrency prices are rising rapidly. You have also probably received the news that this upward trend may not last long. Some parasites, mostly respected bankers and economists, usually call them schemes of rapid enrichment without a stable basis.

Such news can make you rush to invest and not apply moderation. A small analysis of market trends and depreciable currencies can guarantee you a good return. Whatever you do, don’t invest all that hard-earned money in these assets.

• Understand how exchanges work

I recently saw a friend of mine posted on Facebook a feed about one of his friends who continued to trade the stock market, he had zero ideas about how it works. This is a dangerous step. Always inspect the site you are going to use before registering or at least before you start trading. If they provide a bogus account that you can play with, take the opportunity to find out what the dashboard looks like.

• Don’t insist on trading at all

There are over 1,400 cryptocurrencies to trade, but it is impossible to deal with all of them. Spreading your portfolio to a huge number of crypts than you can effectively manage minimizes your profits. Just pick a few of them, read more about them and how to get their trading signals.

• Stay sober

Cryptocurrencies are volatile. This is both their ugliness and well-being. As a trader, you need to understand that wild price fluctuations are unavoidable. Uncertainty when to take a step makes an inefficient trader. Use solid data and other research methods to be sure when making a deal.

Successful traders belong to various online forums where discussions of cryptocurrencies concerning market trends and signals are discussed. Sure, your knowledge may be enough, but you need to rely on other traders to get more relevant data.

• Significantly diversify

Virtually everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies used in the real world. There are a few bad coins you can handle to get quick money, but the best crypts you can deal with are the ones that solve existing problems. Coins used in the real world tend to be less volatile.

Don’t diversify too sooner or later. And before you take the step of buying any crypto-asset, make sure you know its market capitalization, price changes and daily trading volumes. Maintaining a healthy portfolio is a way to get the most out of these digital assets.

How does cryptocurrency gain value?

Cryptocurrencies are the last “big thing” in the digital world that is now recognized as part of the monetary system. In fact, enthusiasts called it a “money revolution”.

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

The adoption of currencies such as the US dollar, the British pound and the euro as legal tender is due to the fact that they were issued by the central bank; However, digital currencies, such as cryptocurrencies, do not depend on public confidence and trust in the issuer. Thus, several factors determine its significance.

Factors determining the value of cryptocurrencies

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

Demand and supply are the main factor that determines the value of something valuable, including cryptocurrencies. This is because when more people are willing to buy a cryptocurrency and others are willing to sell, the price of that cryptocurrency will increase, and vice versa.

Mass adoption

Mass adoption of any cryptocurrency can raise its value to the moon. This is due to the fact that the number of 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 higher prices for this particular product.

Several cryptocurrencies have invested more resources to ensure their mass adoption, with some focusing on the suitability of their cryptocurrencies for pressing personal issues as well as important day-to-day occasions in order to make them indispensable in everyday life.

Fiat inflation

When a fiat currency, such as the U.S. dollar or GBP, becomes overvalued, its value rises and purchasing power falls. Then cryptocurrencies (let’s use bitcoin as an example) increase against this fiat. As a result, you will be able to get most of this funding with each bitcoin. In fact, this situation has become one of the main reasons for the rise in bitcoin prices.

History of fraud and cyberattacks

Fraud and hacking are also major factors affecting the value of cryptocurrencies, as they are known to cause wild fluctuations in valuations. In some cases, a team that supports cryptocurrency may be a fraud; they will pump up the value of the cryptocurrency to attract unsuspecting people, and when they invest their money with difficulty, the price is reduced by fraudsters who then disappear without a trace.

It is therefore very important to be careful with cryptocurrency fraud before investing.

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

  • The manner of storage of cryptocurrency, as well as its usefulness, security, ease of acquisition and borderline visibility

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

  • The associated associated cryptocurrency risks are perceived by investors and users

  • News

  • Market liquidity and cryptocurrency volatility

  • Country rules (this includes banning cryptocurrencies and ICOs in China and accepting them as legal tender in Japan)