Beginner’s Guide: Introduction in Cryptocurrencies

While most people only started learning about “blockchain” because of Bitcoin, its roots – and applications – go much deeper than that.

Blockchain is a technology unto itself. It powers Bitcoin and is essentially why *so many* new ICOs have flooded the market – creating an “ICO” is ridiculously easy (no barriers to entry).

The point of the system is to create a decentralized database – which essentially means that instead of relying on “Google” or “Microsoft” to store data, a network of computers (mainly managed by individual people) can act in the same way as a larger company. .

To understand the implications of this (and therefore where the technology could take the industry) – you need to look at how the system works at a fundamental level.

Created in 2008 (a year before Bitcoin), it is an open source software solution. This means that its source code can be downloaded and edited by anyone. However, it must be noted that the central “repository” can only be modified by certain individuals (so code “development” is basically not a free-for-all).

The system works with what is known as a merkle tree – a type of data graph that was created to allow computer systems to access versioned data.

Merkle trees have been used to great effect in a number of other systems; especially “GIT” (source code management software). Without getting too technical, it basically stores a “version” of a dataset. This version is numbered and therefore can be loaded whenever the user wants to recall its older version. In the case of software development, this means that a set of source code can be updated on multiple systems.

The way it works – which is to store a huge “file” of updates to a central data set – basically powers the likes of Bitcoin and all other “crypto” systems. The term “crypto” simply means “cryptographic”, which is the technical term for “encryption”.

Regardless of its basic functionality, the real benefit of the wider adoption of “on-chain” is almost certainly the “paradigm” it provides to the industry.

There’s been an idea called “Industry 4.0” that’s been floating around for a few decades. Often confused with the “Internet of Things”, the idea is that a new layer of “autonomous” machinery can be introduced to create even more efficient production, distribution and delivery techniques for businesses and consumers. Although this is often objected to, it has never been adopted.

Many experts are now looking to technology as a way to facilitate this change. The reason is that the interesting thing about “crypto” is that – as Ethereum in particular testifies – the various systems that are built on top of it can actually be programmed to work with a layer of logic.

This logic is really what IoT / Industry 4.0 has been missing so far – and why many are looking to the “blockchain” (or equivalent) to provide a ground-level standard for new ideas moving forward. This standard will give companies the ability to create “decentralized” applications that empower intelligent machines to create more flexible and efficient manufacturing processes.

In the next ten years, bitcoin will be more likely to cost $100 than $100,000, says a Harvard economist

Harvard University professor and economist Kenneth Rogoff said Tuesday that the possibility of bitcoin prices falling to $100 is greater than the price of the digital currency trading at $100,000 a decade from now.

“I think bitcoin will be worth a fraction of what it is now if we go out ten years from now … I think $100 is much more likely than $100,000 ten years from now,” Rogoff told CNBC’s ” Squawk Box .”

“If you take away the opportunity for money laundering and tax avoidance, its real use as a means of transaction is minimal,” said the former chief economist of the International Monetary Fund (IMF).

Many illegal transactions are linked to Bitcoin, whose valuations fluctuate in proportion to the use of the digital currency used in illegal activities. According to Shone Anstey, co-founder and president of Blockchain Intelligence Group, he calculated that the level of illegal transactions decreased to 20 percent in 2016 and was “significantly lower than that” in 2017.

Regulations introduced by the government will cause bitcoin prices to fall, Rogoff said, although he stressed that developing a global regulatory framework will take time.

“It needs to be a global regulation. Even if the US cracks down on it and China does, but Japan doesn’t, people will still be able to launder money through Japan,” he said.

Bitcoin traded around $11,242.61 during morning trading in Asia on Tuesday, according to industry website CoinDesk. The price of the digital currency has fallen this year from a record high of more than $19,000 in December last year.

Authorities have been passive about regulating bitcoin, Rogoff says, because of the anticipation of the technology behind the digital currency.

“They want to see technological advances,” Rogoff said, adding that the private sector has historically “designed everything” in the history of currency, from standardized coinage to paper currency.

Bitcoin is a significant area of ​​growth as an application of blockchain technology that enables transactions to be maintained and recorded.

However, there have been claims of bitcoin prices falling in the past as well. Before bitcoin sold off last December, Rogoff said last October that valuations of the digital currency would “crash” amid attempts by governments to regulate the space.

Technology is advancing by leaps and bounds. It introduces new terms and systems for business and communication every day. The Internet has contributed greatly to this progress; especially when it comes to the field of business. Online trading or online currency trading has recently attracted many traders. One of the common forms of online trading is Bitcoin Exchange.

What is Bitcoin?

Bitcoin exchange is a new money system for the internet that works on the concept of digital currency. It powers a peer-to-peer payment system for individuals with no central authority. It uses a new concept of crypto currency that was originally introduced in 1998. Cryptography controls the creation and transactions of digital money. Bitcoin works through a software system and does not have any central controlling authority, so it is equally managed and controlled by its users around the world.

Working Bitcoin Exchange

Bitcoin exchange can be done just like any other type of exchange. Just like working with banks, it is easy to transact through Bitcoin Exchange. Analogous to a physical store, the user must pay to purchase Bitcoin. The difference is that a person has to open an account with a Bitcoin Exchanger. The user’s paid assets will be available in the form of digital currency that can be used to purchase any type of product. Bitcoins can also be exchanged with other bitcoin holders. This system works similarly to exchange offices in banks.

Carrying out transactions

In almost all payment systems, payments can be reversed after a PayPal or credit card transaction has been completed. But with Bitcoin, the situation has changed, because once a transaction is made, you cannot return it or reverse it. So be careful while exchanging your bitcoins with currency media as you may face refund issues. It is preferable to exchange with other bitcoin holders near you.

Advantages of Bitcoin Exchange

Bitcoin currency exchange is fairly new. It is a kind of software payment system where you transact digitally. Here’s how it can benefit you:

· Make transactions faster than other systems

· Always available for transactions

· Make transactions from anywhere in the world

· Make more secure transactions

· Carrying out transactions without the interference of any third party

· Track all transactions from your home computer or smartphone

· Buy any type of asset using bitcoin

Disadvantages of Bitcoin

Bitcoin exchange is an innovation in the economic systems of the world. When it is used practically, some disadvantages also appear. Some of them are as follows:

Ø Market acceptance

The number of bitcoin users is growing, but it is still not a widely used currency or exchange system. Its level of acceptance in financial matters is still low.

Ø Instability

As Bitcoin is not used often, it is not a stable currency. However, there is hope that this volatility will decrease as the list of users and the amount of bitcoins in the market become more readily available.

Ø Partial development

The big problem is that the Bitcoin software is still in beta and there are a number of imperfect features that still need to be fixed. New modules are in the process of development to make Bitcoin exchange safer for everyone.

The price of Bitcoin skyrocketed in 2017. Coinbase, one of the world’s largest cryptocurrency exchanges, was in the right place at the right time to take advantage of the rise in interest. Even so, Coinbase isn’t interested in taking its crypto gains for granted. To stay ahead of the much larger cryptocurrency market, the company is pouring money back into its master plan. By 2017, the company’s revenue was $1 billion, and over $150 billion in assets were traded by over 20 million clients.

Coinbase, a San Francisco-based company, is known as the leading cryptocurrency trading platform in the United States and with its continued success, it was ranked 10th on the CNBC Disruptor list in 2018 after failing to make the list for the previous two years. .

On its way to success, Coinbase left no stone unturned in its pursuit of key executives from the New York Stock Exchange, Twitter, Facebook and LinkedIn. In the current year, the size of its full-time engineering team has nearly doubled.

Earn.com acquired Coinbase this April for $100 million. This platform allows users to send and receive digital currency while responding to mass market emails and completing micro tasks. Currently, the company plans to bring in former Andreessen Horowitz venture capitalist Earns founder and CEO as its first chief technology officer.

According to current estimates, Coinbase valued itself at around $8 billion when it moved to acquire Earn.Com. This value is much higher than the $1.6 billion value that was estimated in the last round of venture capital funding in the summer of 2017.

Coinbase refuses to comment on its valuation despite the fact that it has more than $225 million in funding from major VCs, including Union Square Ventures, Andreessen Horowitz and also from the New York Stock Exchange.

To meet the needs of institutional investors, the New York Stock Exchange plans to launch its own cryptocurrency exchange. Nasdaq, the NYSE’s rival, is also considering a similar move.

• Competition is coming

As competing organizations look to take a bite out of Coinbase’s business, Coinbase is seeking other venture capital opportunities in an attempt to build a moat around the company.

Dan Dolev, a Nomura Instant analyst, said Square, the company run by Twitter CEO Jack Dorsey, could eat up Coinbase’s exchange business because it started trading cryptocurrencies on its Square Cash app in January.

According to Dolev’s estimates, Coinbase’s average trading fees were roughly 1.8 percent in 2017. Such fees could drive users to other cheaper exchanges.

Coinbase wants to become a one-stop shop for institutional investors while protecting its exchange operations. To attract investors to that white-glove class, the company announced a fleet of new products. This class of investors was especially cautious when diving into the volatile cryptocurrency market.

Coinbase Prime, The Coinbase Institutional Coverage Group, Coinbase Custody and Coinbase Markets are products launched by the company.

Coinbase believes that there are billions of dollars of institutional money that can be invested in the digital currency. It already holds $9 billion in client assets.

Institutional investors are concerned about security despite knowing that Coinbase has never suffered a hack like some other global cryptocurrency exchanges. Coinbase’s president and CEO said the impetus for launching Coinbase Custody last November was the lack of a trusted custodian to protect their crypto assets.

• Right now Wall Street is moving from Bashing Bit to Cryptocurrency Backer

According to the latest data available from Autonomous Next Wall Street, interest in cryptocurrencies appears to be on the rise. There are currently 287 crypto hedge funds, while in 2016 there were only 20 cryptocurrency hedge funds. Goldman Sachs even opened a cryptocurrency trading desk.

Coinbase also introduced Coinbase Ventures, which is an incubator fund for early-stage startups working in the cryptocurrency and blockchain space. Coinbase Ventures has already accumulated $15 billion for further investments. His first investment was announced in a startup called Compound that allows lending or borrowing cryptocurrency with interest rate earnings.

In early 2018, the company launched Coinbase Commerce, which allows merchants to accept major cryptocurrencies for payment. Another bitcoin startup was BitPlay, which recently raised $40 million in venture capital. Last year, BitPlay processed more than $1 billion in bitcoin payments.

Proponents of blockchain technology believe that in the future cryptocurrency will be able to eliminate the need for central banking authorities. In the process, it will reduce costs and create a decentralized financial solution.

• Regulatory certainty remains intense

For restricting access to four cryptocurrencies, Coinbase has drawn a lot of criticism. But they must be careful as US regulators consider how to control certain uses of the technology.

For cryptocurrency exchanges like Coinbase, the question of concern is whether cryptocurrencies are securities that would fall under the jurisdiction of the Securities and Exchange Commission. However, Coinbase has been slow to add new coins since the SEC announced in March that it would apply security laws to all cryptocurrency exchanges.

The Wall Street Journal reported that Coinbase met with SEC officials to register as a licensed brokerage and electronic trading venue. In such a scenario, it would become easier for Coinbase to support more coins and comply with security regulations.

Crypto currency vs. fiat currency

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

In a cashless society – crypto money plays a huge role

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

Crypto currency and fiat currency are always at odds

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

The difference in what the currencies represent

Before starting to differentiate between them, you need to understand what they represent and how they are defined.

Fiat currency is a legal tender that is backed by a central government and operates in physical form. For example, US Dollars, British Pounds, Euro, etc. On the other hand, cryptocurrency is not legal tender and does not have any backing from a central government or bank.

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

• Cryptocurrencies are decentralized and global in nature. There is no single entity or government that controls the currency with its own laws and regulations. Fiat currency is centralized, under the control of the laws and regulations of the banks and the government.

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

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

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

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

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

Different types of crypto and fiat currencies

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

Differences in anonymity between the two currencies

When using fiat currencies, you must go through a user identification or verification process. You are required to upload a recent picture of yourself and some of the required documents that will be issued by the public authorities. You don’t have to undergo any of the necessary processes with cryptocurrencies. Although your personal information and confidential details do not become public, but all your transactions are recorded and tracked in fiat and crypto currencies.

Fiat Currency vs. Crypto Currency: The Level of Transparency

• The level of transparency in crypto-type currencies is considered to be higher. This is because the revenue streams are shown on the public chain. Anyone can witness their own and other people’s transactions.

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

Comparative historical roots

If you compare crypto money with that of its counterpart, fiat or government currency, you will see that their existence and creation make a difference. Fiat or national currency dates its existence back to 775 AD with the introduction of the Great British Pound. This is why fiat currency is easily accepted by people around the world.

On the other hand, crypto coin may have been introduced for the first time only ten years ago, with the introduction of Bitcoin in 2009. The challenge that Bitcoin and other cryptocurrencies face is to catch up with the huge popularity and growing fan base of fiat currency. . Crypto currency is undoubtedly gaining importance and popularity in the economic market, but it is still not widely accepted in society as fiat currency.

Comparative history of the two currencies:

• It was in the 11th century, when China’s Song dynasty was perhaps the first to issue paper money. It was not allowed to exchange precious things like gold and silver or silk.

• There were tally sticks that were introduced as fiat or government currency. 1100 Tally sticks were introduced to fight the shortage of gold.

• 1971 was the year when fiat currency gained world recognition. President Nixon introduced it to eliminate the system of pegging the dollar to gold.

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

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

Features of both currencies

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

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

• Both crypto coins and fiat currencies are fungible in nature.

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

• In terms of non-consumable criteria, crypto-currency and fiat currency have equal status.

• Crypto currencies have a high durability compared to fiat currencies which have a moderate level of durability.

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

• Crypto or digital currencies are highly divisible in nature. On the other hand, fiat-type currencies are moderately divisible.

• In terms of the transaction process, cryptocurrencies are simple and hassle-free. While, on the other hand, the withdrawal process associated with fiat currencies is easy, but not as with cryptocurrencies.

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

• Cryptocurrency-based currencies have a high scarcity, while fiat currencies are unlimited because the government can issue coins and paper money whenever the need arises.

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

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

The process of functioning of currencies

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

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

Depending on the things you’re buying, you’ll find that one form of currency is better than another. This is absolutely your choice.

Is Bitcoin, a cryptocurrency, better than fiat currency?

The long-term benefits and capability of Bitcoin are still undetermined. But cryptocurrency gurus and experts predict that they will come a long way, especially by revolutionizing the way online transactions are done. In the current market, Bitcoin is mainly involved in online casinos and gambling, but it is not limited to it.

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

Why is Bitcoin considered a better aspect than fiat currencies?

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

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

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

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

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

Cryptocurrencies seem to be a favorable option among people

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

Send money anywhere directly without waiting for bank approval

You can send money to anyone in the world directly, and it’s super fast. Money clears within minutes. You don’t have to wait for the traditional clearing and verification processes of banking systems, which can take several days to get approved. Since it is decentralized and not subject to government laws and regulations, no one has the authority to do anything with your account.

Blockchain technology has a very big role

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

Cryptocurrency mining is a never-ending game in this digital world. Bitcoin, the first decentralized currency introduced in early 2000. Cryptocurrency mining is a complex procedure of verifying transactions and adding them to the public ledger (blockchain). This ledger of past transactions is called a blockchain because it is a chain of blocks. Blockchain serves to confirm that transactions have occurred to the rest of the network. Blockchain is also responsible for releasing new bitcoins. Each of the many cryptocurrencies present depends on the basic idea of ​​the blockchain.

Mining process

Cryptocurrency was supposed to be decentralized, secure and immutable. So every transaction is encrypted. Once that encrypted transaction occurs, it is added to what many call a “block” until the settled number of transactions is recorded. That block is then added to the chain – the blockchain – which is publicly available. While mining cryptocurrencies, be it Bitcoin, Dash, Litecoin, Zcash, Ethereum and more, the miner has to assemble recent transactions into blocks and crack a computationally heavy puzzle. There are several online bitcoin mining sites. It has become a very popular way of making money.

Cryptocurrency is cryptographic, which means it uses special encryption that allows control of coin generation and transaction confirmation. The block is pretty much useless in its currently available form. However, after applying the algorithm to a particular block. After matching, the miner receives a few bitcoins. To earn bitcoins by mining, a miner must be technical. Bitcoin mining for profit is very competitive. The price of Bitcoin makes it difficult to make monetary gains without speculating on the price. Payment is based on how much their hardware contributes to solving that puzzle. Miners verify transactions, ensure they are not fraudulent, and keep the infrastructure running.

Best coins to mine

Bitcoins are not a decent decision for novice miners trying on a small scale. The current upfront speculation and maintenance costs, as well as the sheer scientific difficulty of the procedure, simply do not make it productive for customer-level hardware. Currently, Bitcoin mining is saved for expansive activities as it were. Litecoins, Dogecoins and Feathercoins, again, are three Scrypt-based digital forms of money that are the best money-saving advantage for apprentices. According to the current valuation of Litecoin, a person can get somewhere in the range of 50 pence to 10 dollars for each day using user-level mining hardware. Dogecoins and Feathercoins would benefit slightly less with similar mining hardware, but they are becoming more popular every day. Peercoins can also be a reasonably fair profit for your venture of time and vitality.

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

The goal of mining

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

1. Give accounting administrations to the coin network. Mining is essentially every minute of everyday PC accounting called ‘transaction verification’.

2. Get a small reward for your accounting administrations by accepting coin fractions every few days.

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

Some basic conditions

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

A desktop or personalized computer dedicated to mining. Indeed, you can use your current computer to begin with, but you won’t have the capacity to use the computer while the miner is running. A dedicated PC is ideal. Tip: Do not use a laptop, game console, or handheld mining device. These devices are simply not successful enough to generate a salary. ATI graphics processing unit (GPU) or a specialized processing device called a mining ASIC chip. The price will be from $90 to $3000 for a new one for each GPU or ASIC chip. GPU or ASIC will be the workhorse for accounting administrations and mining jobs.

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

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

Cryptocurrency mining is a computationally intensive process, requiring a network of several computers to verify transaction records, known as the blockchain. Miners are offered a share of transaction costs and gain a higher probability of finding another block through the contribution of high computational power. These support transactions help provide enhanced security to network clients and guarantee fairness, which is believed to be a noticeable factor influencing the development of the global cryptocurrency mining market.

In the first edition of CRYPTO TREND, we introduced cryptocurrency (CC) and answered several questions about this new market space. There are many NEWS on this market every day. Here are a few highlights that give us an idea of ​​how new and exciting this market space is:

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

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

CME intends to launch Bitcoin futures by the end of the year pending a regulatory review. If successful, it will give investors a viable way to go “long” or “short” Bitcoin. Some sellers of exchange-traded funds have also filed for bitcoin ETFs that track bitcoin futures.

This development has the potential to allow people to invest in the cryptocurrency space without owning a CC or using the services of a CC exchange. Bitcoin futures could make digital assets more useful by allowing users and intermediaries to hedge their foreign exchange risks. That could increase adoption of the cryptocurrency by merchants who want to accept bitcoin payments but are wary of its volatile value. Institutional investors are also used to trading regulated futures, which are free from money laundering concerns.

CME’s move also suggests that bitcoin has become too big to ignore, as the exchange appeared to shut out crypto futures in the recent past. Bitcoin is pretty much all anyone is talking about at brokerages and trading firms, which have suffered from rising but unusually quiet markets. If exchange-traded futures were to take off, it would be nearly impossible for any other exchange, like the CME, to catch up, since volume and liquidity are important in derivatives markets.

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

A Japanese village will use cryptocurrency to raise capital for municipal revitalization

The Japanese village of Nishiawakura is exploring the idea of ​​holding an Initial Coin Offering (ICO) to raise capital for municipal revitalization. This is a very new approach and they can seek national government support or seek private investment. Several ICOs have had serious problems, and many investors are skeptical that any new token will have value, especially if the ICO turns out to be another joke or scam. Bitcoin was certainly no joke.

INITIAL COIN OFFERING – ( ICO )

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

As we said in #1, this market is the “wild west” right now and we recommend caution. Some investors and early adopters have made big profits in this market space; however, there are many who have lost much, or everything. Governments are considering regulations because they want to know about every transaction in order to tax them all. They all have huge debts and don’t have enough money.

Until now, the cryptocurrency market has avoided many governmental and conventional financial problems and pitfalls, and Blockchain technology has the potential to solve many more problems.

A great feature of Bitcoin is that the originators chose a finite 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 currency) as they want and inflate their currency to death.

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

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

Stay Tuned!

The modern concept of cryptocurrency is becoming very popular among traders. The revolutionary concept introduced to the world by Satoshi Nakamoto as a side product became a hit. Decoding Cryptocurrency we understand that crypto is something hidden, and currency is a means of exchange. It is a form of currency used in a blockchain that is created and stored. This is done through encryption techniques to control the creation and verification of the currency transaction. Bit coin was the first cryptocurrency to be created.

Cryptocurrency is just part of the virtual database process that works in the virtual world. The identity of the real person here cannot be determined. Also, there is no centralized body that governs cryptocurrency trading. This currency is equivalent to the hard gold that people keep and whose value should rise rapidly. The electronic system set up by Satoshi is decentralized in which only miners have the right to make changes by confirming the initiated transactions. They are the only providers of human touches in the system.

Counterfeiting cryptocurrency is not possible because the entire system is based on hard math and cryptographic puzzles. Only those people who are capable of solving these puzzles can make changes to the database which is almost impossible. Once a transaction is confirmed, it becomes a part of the database or blockchain that cannot then be undone.

Cryptocurrency is nothing but digital money created with the help of coding techniques. It is based on a peer-to-peer control system. Let us now understand how one can benefit from trading in this market.

It cannot be reversed or forged: Although many people may refute this that transactions done are irreversible but the best thing about cryptocurrencies is that once the transaction is confirmed. The new block is added to the block chain and then the transaction cannot be forged. You become the owner of that block.

Online transactions: This not only makes it convenient for anyone sitting in any part of the world to transact, but also facilitates the speed at which the transaction is processed. Compared to real time when you need third parties to show up to buy a house or gold or take out a loan, you only need a computer and a potential buyer or seller in the case of cryptocurrency. This concept is easy, fast and full of ROI prospects.

The fee is low per transaction: Miners take little or no fee during transactions because the network takes care of it.

Accessibility: The concept is so practical that all those people who have access to smartphones and laptops can access the cryptocurrency market and trade it anytime anywhere. This affordability makes it even more lucrative. As the ROI is commendable, many countries like Kenya have introduced the M-Pesa system which enables a bit coin device which now allows one in three Kenyans to have a bit coin wallet.

Introduction:

Cryptocurrency is a relatively new concept. Doing transactions using cryptocurrencies requires good knowledge. This area is growing rapidly and becoming very popular. At the same time, hackers started adopting newer methods to cause trouble and steal all the currencies. But it is possible to secure protection with digital currencies to avoid huge losses. This article deals with the part about cryptocurrency, which talks about protecting them from malicious attacks. The liquidity pool locker concept is also discussed in detail below.

Cryptocurrency can be defined as digital tokens that can be secured by cryptography. We can think of it as a digital asset. Cryptocurrencies have seen a lot of backlash and controversy for a number of reasons. These reasons mainly include their use for illegal activities and their vulnerability to malicious attacks. At the same time, they are praised for various reasons, including their transparency, portability, etc. Bitcoin is the most popular form of cryptocurrency.

How to protect cryptocurrency?

As mentioned before, cryptocurrency is a new market. But that doesn’t make it any less vulnerable to hacking and theft. Therefore, it becomes very necessary to protect digital currencies. There have been various cases where people have been subjected to malicious attacks.

Such attacks lead to the loss of several cryptocurrencies. People who hack these accounts then usually disappear online and become impossible to trace. They also carry a bunch of digital currencies with them.

One of the best ways to protect digital currencies is to use a wallet. Originally, there were two types of wallets. New designs are also being introduced these days. Among all these options, a physical wallet has to be the best option. These are also called hardware wallets. They have a password, which needs to be known, to gain access to the tokens. There is also a major downside to these hardware wallets. If the user loses or forgets the password, they can never access the tokens in any other way.

Apart from these, there are also paper wallets, which are online wallets.

Users should always use strong passwords and should never share their secret keys.

Why should we use a liquidity compartment?

Cryptex is a type of liquidity locker. The liquidity pool locker allows the user to store their tokens under a smart contract. Under this contract, they cannot transfer tokens from the start date to the end date specified in the contract. There are various such cabinets, and some of them are highly valued. Due to such restrictions, currencies remain safe and sound and are not vulnerable to malicious attacks. The user can also customize the duration and then store the LP tokens. These lockers do not retrieve tokens, their function is to keep them safe for the specified period according to the smart contract.

Among all techniques, liquidity pool locking is very effective. It also carries no risks compared to cold wallets.

If an individual (developer) does not have ownership of LP tokens, he cannot request a refund of fund funds at any time.

Put simply, cryptocurrency is digital money, which is designed to be secure and anonymous in some cases. It is closely related to the Internet which uses cryptography, which is basically a process where readable information is converted into an uncrackable code to record all transfers and purchases made.

Cryptography has a history dating back to World War II, when there was a need to communicate in the most secure way. Since that time, the same evolution has taken place and today it has become digital where various elements of computer science and mathematical theory are used for the purpose of securing communications, money and information on the Internet.

The first cryptocurrency

The first cryptocurrency was introduced in 2009 and is still well known around the world. Many more cryptocurrencies have been introduced in the past few years and you can find them online today.

How they work

This type of digital currency uses technology that is decentralized to allow different users to make secure payments and also store money without necessarily using a name or even going through a financial institution. They are mostly run on blockchain. Blockchain is a public ledger that is distributed publicly.

Units of cryptocurrency are usually created using a process called mining. This usually involves the use of computing power. In this way, mathematical problems that can be very complex in coin generation are solved. Users are only allowed to buy currencies from brokers and then store them in crypto wallets where they can spend them with great ease.

Cryptocurrencies and the application of blockchain technology are still in their infancy when thinking about them in financial terms. More uses may appear in the future because you never know what else will be invented. The future of transactions in stocks, bonds and other types of financial assets could very well be traded using cryptocurrency and blockchain technology in the future.

Why use cryptocurrency?

One of the main features of these currencies is the fact that they are secure and offer a level of anonymity that you may not get anywhere else. There is no way a transaction can be reversed or faked. This is by far the biggest reason why you should consider using them.

The fees charged for this type of currency are also quite low, making it a very reliable option compared to conventional currency. Since they are decentralized in nature, they can be accessed by anyone, unlike banks where accounts can only be opened with authorization.

Cryptocurrency markets offer a whole new form of cash and sometimes the rewards can be great. You can make a very small investment only to find that it has grown into something big in a very short period of time. However, it is still important to note that the market can also be volatile, and there are risks associated with buying.