Trend of Bitcoin Crash
As of the 18th of December, bitcoin prices hover around the 3600$ mark, fluctuating between 3500$ and 3620$ price range. This is not the lowest Bitcoin prices have hit this year, it crashed as low as 3200$ just a few days ago. The alarming trend of bitcoin price crashes is simply outstanding and has led to massive panic among investors. While bitcoin has gone down about 70% from its boom last year, some of the altcoins have fared even worse with drops up to 90%. From an all-time high of $20,000 which goaded many to invest their savings into it, down to $3600, bitcoin has seen a crash of about 80%. The question remains. Can it come back up?
The History of the Crashes
Let’s take a trip down cryptocurrency memory lane. The first-time investors went through this kind of panic was back in 2011, when bitcoin went from $39 in June to $2 come November. This 93% crash as compared to a similar 83% crash in April 2013 when it went from $259 to $45 within a three-day period. After this came the Mt. Gox hack in November 13’, which saw Bitcoin plummet from $1151 to $177, a trend that only ended in 2015 January. These crashes were trailed with the massive drop in trade/transaction volumes. Massive sell-outs always pre-empt or coincide with these price crashes, after which they will level out, dipping to a point before coming back up.
As it has been seen, BTC has undergone some pretty massive crashes in the past. The only difference in 2018’s price drop is the height from which the drop happened. The forks of BTC also involved have made the crash even more noteworthy. While it might appear that the sceptics were right afterward, most HODLers and cryptocurrency enthusiasts retain their faith in the market and point out the fact that this may not been the worst crash in term of percentage crashes.
The Worst Affected Investors
The early birds to the Bitcoin market might be able to afford being ‘blasé’ about it, because the prices are still way higher than how much they bought theirs. However, the recent stream of Crypto market influx who went in during the boom of last year will not be able to share their sentiments. Most of the people who rushed in with everything they had late last year to get a piece of the pie as it boomed are now left high and dry, holding their hats in their hands. Stories of investors taking out loans or putting in life-savings only to be running at almost 90% loss a year later have become the talk of the hour.
The worst hit investors seem to be the ones who invested in altcoins, based on promises of software sharing or other benefits. The coins have crashed, none of the initial offerings on which the coins/tokens were offered where honored, and investors are left feeling cheated and with virtually valueless coins.
Despite the crash, Bitcoin still remains the most valuable cryptocurrency, as some exchanges are trading and dealing in bitcoin despite price crashes. Ethereum is holding its own quite a bit and sometimes tops as the better investment.
Predicting Cryptocurrency Trends
All Investments come with a possible risk factor. A major determinant of being a responsible investor is being able to mitigate all risks to make maximum return on your investments (ROI). Predicting the direction or the actual price of any cryptocurrency at a particular time is becoming more difficult to do; considering the current market trends.
Being able to definitively or conclusively project prices might be impossible. But knowing the range at a time can be possible using some of the following tips. Always keep in mind though that, predictions are just that — a prediction.
Below are the 5 Basic tips for predicting cryptocurrency trends.
1) Follow Trend Lines: Trend lines can be referred to as the obvious trajectory that a coin appears to be following. The volatile nature of crypto assets can render a particular trend implausible or inefficient. Although the trends can help follow the rise and fall, this volatility might deter a wholesome view of trends. Knowing how to read a chat can help in understanding how things like candles, moving averages, RSI, and the order book can clue you into good spots to buy and sell.
Bollinger Band is one of the best price guess approximator in following trend lines. What it does is, stock of the price is bracketed by upper and lower band and these bands are its standard deviations. The simple logic is studying if the current price is below or above the bands and predicting it to fall back within the bands
Learning technical analysis is another strong way of following trend lines. The Long Short Term Memory (LSTM) is a good example. The Recurrent Neural Networks, a part of which are the LSTMs which help solve tike series problems. LSTMs have gained ground as a great forecast method for both stock market and crypto prices.
2) Use Social Media: A ton of social media platforms, accounts, and groups on Twitter, Slack and even Reddit offer current and professional insight into the world of cryptocurrency. Some even have current information on new appearances. Social vices should also help in knowing when big companies partner or invest in the coin and when cryptopreneurs start promoting a particular coin. Cryptocurrency market capitals are increasing super fast. But still, it is too volatile and manipulative. People are following each other’s movements.
3) Learn about position sizing and risk management. This method is akin to taking bets. The odds should determine the level of safety that a purchase or trade will represent. The ability to maintain an even keel regardless; will save a lot at the end. The skill acquired here will help in realizing that crypto tends to be pattern based and tends to go in cycles. This means that you want to be in coins before it starts it's rotation and leaving it as the rotation ends.
These takes experience and a good knowledge on position sizing and risk management.
4) Read the source codeYou can reach it from https://coinmarketcap.com/, just click on the coin you want to see and select source code from this helps in knowing how strong their security and core code is. This could also help in knowing the amount of a coin that has been traded in the last 24 hours.
Major trends precede very high trading numbers. Low trading volumes on the other hand represent a weaker trends.
5) Use Paid Resources and know your technology. It is A fact that value of paid products is higher than that of the free versions.
In other words, use paid resources to keep ahead of the cryptomarket and encourage better trading practices. Finally knowing what the coin you are investing in offers is very important because most times you need to check with your beliefs like how much do you believe technology will take over traditional banking?
Timestamping in Blockchains
Timestamping; in the simplest way simply refers to the process of attributing a particular time identity to the creation or modification of a product, content or document.
The idea of timestamps has existed for over 200years. According to Wikipedia; the idea is as old as Hooke's law and might have preceded Newton.
The idea was simple; an inventor; creator; intellectual or whoever was working on an idea.
Despite not being ready to share this idea or invention with the public; for the need of more time to straighten out the kinks; how does this individual lay claim to his originality of the idea if it is in future stolen or claimed before they officially present it?
This was what inspired Hooke to try to figure out an inimitable or otherwise unquestionable system of evidence.
Both Newton and Galileo are believed to have enlisted some form of encryption to protect their intellectual property from being published before they were ready to do so.
Timestamping in old industrial settings and factories were required to keep track of how much work an employee was getting done per day.
How Timestamping in blockchains work
With the new level of technological know-how and continuity; digital timestamping is an obvious necessity.
Making use of blockchain
Timestamps can be classified based on their different schemes and levels or types of security they are trying to achieve.
1. PKI-based (Public Key Infrastructure) stamps that Are built on a set of policies, and procedures that manage online digital certificates. They are necessary for regulating online transactions and other activities where basic encryption and password coding are inadequate security measures. These include e-commerce and internet banking as well as secure emails....
2. Linking based schemes where various time stamps are related to each other.
3. Database: a time stamp where document hashes are saved in reliant archives.
4. Transient key scheme; this is a variant of PKI.
All these are just a few of the types of timestamps available.
A Trusted Time Stamp or TTS is one issued by a trusted third party acting as a Trusted Stamping Authority (TSA)
A TTS is basically proof that certain data or software was in existence prior to a particular time period.
For blockchain miners, this is necessary to keep tabs on their mining progress.
Also, bitcoin technology has been able to facilitate the creation of a decentralized timestamp system.
By hashing data; it can be incorporated into a transaction on the blockchain and secured.
This security relies on how much computations that are carried out after the encryption of the hash; such that any attempt to unravel or mess with the timeStamp will ultimately unravel the entire blockchain leading to a devaluation of the digital currency to zero.
There are various decentralized blockchain time Stamp providers.
Timestamping on blockchain is tamper proof and relevant for keeping digital content including files, emails, and even plain text.
Examples of such providers include Origin stamp, Open timestamp.
When it comes to bitcoin technology, the possibility kitties ate endlessly and this is just one of them.
Fall of bitcoin
Isaac Newton may have revolutionized our knowledge of the world as we know it, but he still had his blind spots. The physician got suckered into the mania of his day, the South Sea Bubble which cost him a ton of money. “I can calculate the motion of heavenly bodies but not the madness of people,” he is attributed to have reflected. If he had considered it In retrospect; his own very laws of physics might have been the answers he needed to apply. Just like his law of gravity: “What goes up, must come down", the laws of the financial market aren't too far off the mark.
Bitcoin investors are starting to appreciate, albeit negatively, this old truth. This is most pronounced within the last few weeks, with its continuous downtrend.
According to CoinMarketCap.com bitcoin valuation fell to a new bearish low at $89.42billion. At the same time, the price of the digital currency fell to an average of $5,143 on average as at the beginning of the third week in November. Overall, this continuous fall intensifies the possibility of Bitcoin establishing a double bottom anytime this year.
The forking of Bitcoin Cash (BTC) is often being touted as one of the main catalysts behind the unending plunge of Bitcoin. ~As an asset that appears stuck in unwelcome negativity, the reallocation of Bitcoin harsh power by the chief of a big mining company; to support Bitcoin ABC, one of the Bitcoin Cash Blockchain~. While this trend was meant to be temporal, it has left an indelible dent on the face of the Bitcoin Market and in general the entire crypto market, which now appears very much unstable to investors, now more than ever.
One other major catalyst for this decline can be attributed to the volume of family offices and institutional investors Another strong reason is the vast majority of institutional investors that trade with cryptocurrency, but without the use of exchanges; thereby cutting off a major arm of the trade. By buying over the counter (OTC), their trade with the OTC markets do not add any value or basically influence much of the market determinants governing the price of Bitcoin (BTC). At this level, the only viable trade that can influence the price of Bitcoin (BTC) is retail buyers. And these are buyers who; at present; the majority are not convinced that the market is ready for a reversal. The SEC's recent statement on how it plans to crack down on ICOs has also had its effects. This has set a fresh wave of panic coursing through the major investors. The situation is such that, if the other conditions and market forces remain as they are, BTC/USD has not seen the worst of the fall. Speculations are high over whether this latest fall might actually lead to market capitulation.
Of course; the fall of bitcoin causes a ripple through the market that will see altcoins to an all-time low; or at best the worst annual price fall. This might be terrible news to the people who need to trade their altcoins ASAP, but for new and potential investors; this might be the best time ever to go all in. This phenomenon is most especially good for holders. At the very least, November is most likely the month we see the worst of the fall and the perfect time to correct Bitcoin (BTC) trade faults. Tons of big league industry traders and analysts have had to lower yearend price projections for Bitcoin (BTC).
This in itself; says a lot for the ongoing trend
Crypto dividends are based on blockchain models that are capable of earning income without having to trade or work the markets. Dividends are paid to shareholders in a company or corporation. This involves distributing the profits from a business among all those who have some stakes in it, whether as cash, shares or properties. In cryptocurrency world, dividends are known as crypto dividends.
Crypto dividends is another form of passive income that can grow your investments without day trading. So, here is a little bit about Crypto Dividends
How to Earn by Cryptocurrency Dividends
There are various ways of earning dividends in digital currency sphere. This can be done by HOLDing (a.k.a HODLing; Holding On For Dear Life) cryptocurrency. When people talk about HOLDing, it simply indicates that they aren’t trading their currency at a fall period, because they believe it will still appreciate. But first, the need to understand each currency as the rules of engagement differ from one to another. There are 2 ways of earning crypto-dividends.:
- HOLDing: The act of buying en masse just to keep in a particular wallet.
- Keeping a Proof-of-stake-coin
The Top Cryptocurrencies to HOLD/HODL
Here is a list of top cryptocurrency that as of now are worth Holding. These are the high yielders or those with high yield potential.
- KuCoin: The world renown blockchain exchange cryptocurrency was introduced in 2017 and is growing quite strong, especially with the work put into promoting it. Ku Coins shares reward with bonus dividends. Anyone holding Ku Coin shares gets daily Ku Coin bonuses which is equivalent to about 50% of the trading fees. This strategy ensures that their shareholders help in driving the transactions and also improve trading volumes on the exchange platform. Increasing trade volumes will, of course, drive up the share bonuses. Particulars for trading are:
Sold as: KCS
Wallet: Any ERC Wallet
Annual returns: Variable
- NEO: Also popularly called the Chinese Ethereum is both a blockchain and the name of the currency. Under NEO block there is also GAS, formerly ANC. GAS brings great returns in the NEO wallet. NEO does not necessitate keeping open wallets. Although, not all wallets can claim NEO dividends. The particulars for NEO are as follows:
NEO Worth: $44.5
Returns in Form: NEOGAS
Annual Returns is 5.5%
Staking: NEO wallet.
- NEBLIO: This new platform which launches ICOs also develops smart contracts and is getting more and more traffic. It gives a solid roadmap for the development of smart contracts, Dapps and stuff, giving standard examples for execution. It’s a strong market contender with Ethereum, NEO and similar stalwarts. But even better; Neblio has the potential to carve out a niche for itself in the crypto services platforms. Neblio makes use of the ‘Nebli-token’ which can be staked in the Neblio Wallet. Annual returns can be up to 10%. So, the trading particulars are:
Currency: NEBLI token
Annual Returns: 10%
Returns are paid into a NEBLIO Wallet.
These are just a few of the possible blockchains that can earn dividends on the long run. Early investments actually benefit much more than later will. Some of the coins are still pretty young and therefore affordable. Investing early like the first investors in bitcoin will reap rewards.
Airdrops in Cryptocurrency
Have you ever come across the term AirDrops? Well, it's not the new Nike product or some weird weather phenomenon. When it comes to cryptocurrency, AirDrops are simply another way of making some passive income. Everyone dealing in cryptocurrency already knows all the deal about making money by day-trading, that’s the most common and most popular method.
However, wouldn’t you like to have some alternative method of making some bucks? Some might at the very least, get an edge in your day trading to help make the trading more pocket-friendly. AirDrops have proven to be a major avenue to earn from cryptocurrency.
What Is An AirDrop
Airdrops simply refer to the distribution of new tokens or coins. These newbie currencies are distributed in certain proportions to individuals or other units of people who already have some Cryptocurrency, so if you are HODLer of a high-value digital currency such as BTC and ETC, you just might be eligible for an Airdrops. The Airdrops are because you are holding the parent currency or part of the blockchain for which the Airdrop Is developed. Air probably signifies that the currency is coming to you free: out of thin air and the drop indicates the debut of a new cryptocurrency.
Being new tokens or coins from a pre-existing blockchain or coins, there are a variety of reasons why the airdrops are given. New tokens are developed sometimes to fork out from a pre-existing successful coin.
Why Do AirDrops Come Free?
For any token or coin to be successful in the world of cryptocurrency, it depends on the number of people trading with the coin. Regardless of how much is invested in making the coin, they have next to no value if they aren’t being constantly traded, which is impossible if the coin has low exposure. By I traducing the coin as an airdrop, it creates the needed buzz and hype. The word has to go out to as many quarters as possible to bring in crypto-investors.
Giving it free to established crypto-investors is a way of both testing and advertising all in one. Giving it free is just a way to grab the interest of the right people.
Other Reasons For Airdrops
Rewards: Major cryptocurrencies wanting to reward their longest active investors who first bought, traded or promoted their currency will use airdrops. So, for their faith in the original currency, before it became big, they reward old HODLers with new currencies that have a great prospect. This, of course, encourages them to invest more in the chain and the new forks.
Forks-Off: When an old currency is branching off or creating a new fork of the old coin such as BTC did with BCH and BTG, airdrops are a perfect way to start it off. Airdrops are given to HOLDers or HODLers of the original coin.
Equal Distribution: Aside from creating the right hype, airdrops also gives the currency handlers a chance to ensure that a particular set of HODLers does not acquire the majority of the currency. To prevent the monopoly from Holders with high buying power, airdrops provide equity for the new token.
To know about happening Airdrops, you have to be up to date with
- an active cryptocurrency forum
- Bitcoin Forums
- Social media.
In order to lay claims to your airdrops you need to
- Sign up to a chain or platform
- Have the private key to your wallet
- Carry out social media
Mining Cryptocurrencies and Reward System
It's one thing to make a ton of cash from trading cryptocurrencies, watching market trends and selling or buying at the best. But making money from cryptocurrency is obviously not limited to this. With blockchain technology, we all are familiar with mining of cryptocurrency and the potential for income from that avenue. But what does blockchain mining actually entail? In this article, I will be showing you the processes of mining cryptocurrencies and Reward system.
There are two main functions involved in mining cryptocurrency and reward system; bringing forth new currency into the market and maintaining transactions on the blockchain. Sounds pretty simple, right? Well, it's really not. Aside from having a very powerful processor and advanced programs that are necessary to compete at all on the mining platform, problem-solving is a requisite. And we are talking complex mathematical problems here. It is important to keep in mind that a powerful computer will be consuming a good dose of energy.
The cost of mining crypto back in the day was way higher than the profit from unlocking a new coin. But modern programs allow easier mining of currency in the comfort of your home. The fact remains that the digital currency world will be non-existent if there was no access to the coins the miners unlock. If this were to happen, trading wouldn’t continue as the chain will break. But due to the capital-intensive nature of mining, it is mostly being handled by a motley group of people with pooled resources who control everything, or almost. How can the average individual manage to survive in the mining industry? The answers are embedded in even more complex technology and code algorithms.
Platforms have been created to meet the needs of cryptocurrency miners, even to an individual level. They provide software that can solve those impossibly complex algorithms on a personal computer. These platforms support different cryptocurrency chains across the globe. The platforms not only allow mining but are linked to exchanges that give ease of trading when the need arises. Miners are paid usually in cryptocurrencies, but can also fiat options for fiat payment or vouchers. A bitcoin still remains the most ambitious currency to mine, requiring a lot of dedicated hours, and for now is impossible for PC software. It might take quite a while for bitcoins to be mined at the level of a personal computer. There is a specially dedicated machine called the ASIC for bitcoin mining. There are however a ton of other cryptocurrencies that can be easily mined by Personal Computer.
Lots of new coins are created and a good number of them are easily mineable while the older ones provide some more value. With payment coming in cryptocurrency, it is quite tricky getting a constant value for money considering fluctuating cryptocurrency values. Some platforms provide payment in US Dollars om order to regularize payment. Mining rewards are given based on participation in solving the challenge that unlocks coins. The actual mining to unblock a coin is a collaborative effort across a pool.
That means that all users collaborate in mining that coin and are rewarded based on the computing power they generated (on a pro-rata basis). Therefore, users get paid for their participation even if their computer was not the one that solved the computational challenge for which coins are being awarded. I hope you have learnt something about the processes of mining cryptocurrencies and reward system.
For any questions, be free to contact us or drop a comment.
TOP CRYPTOCURRENCY TO CRYPTOCURRENCY EXCHANGE PLATFORMS
Cryptocurrency to cryptocurrency Exchange which allows the only exchange of cryptocurrency. Only rarely do cryptocurrency exchanges allow fiat money in. this is why it’s necessary to choose the right exchange to fit your requirements. Most often, cryptocurrencies listed are BTC and ETH, these are the most prolific market stables.
The previously discussed exchanges offer Fiat currency to cryptocurrency option among others. But with the growth of the digital currency market and the diversification if investments, there are now even more cryptocurrency to cryptocurrency exchanges needed. This is especially true for early investors who are looking at diversifying their investment portfolio.
Now for those that are strictly Cryptocurrency to cryptocurrency; here is a list.
- Best crypto trading exchange.
- Hong-Kong based, with high trade volume and quite a good number of cryptocurrencies.
- Available worldwide.
- Has its own trade coin, the BNB.
- Now provides Security Asset Fund for Users (SAFU) which costs about 10% of trading fees.
- The platform offers day traders a discount on BNB trades.
- Korea based newcomer.
- Has a mobile app.
- 1% trading fees
- Alt coin listings that aren’t common.
- A wide base of cryptocurrency.
- A good number of trading pairs.
- Over 190 digital currencies.
- Speedy transactions.
- Fees set at .25%
- Very stable platform.
- Great customer service.
- The exchange has a risk management protocol.
- Started fiat deposits recently.
- A US-based exchange.
- Services are provided for all countries.
- They provide a wide range and selection of currencies.
- Fees are .15% for makers and .25% for takers.
- Located in Hong Kong and has one of the largest customer bases.
- There is an app for this exchange.
- Traders are allowed to lend to get interest.
- Trading fees are .1% for makers and .2% for takers.
- Limited reach.
- Offers a good number of digital currencies including BTC, LTC Tetter trading pairs.
- .2% trading fees.
- Runs a crypt market open to all countries.
- Don’t store cryptocurrency on this exchange.
- Only conversion trabnsactions are allowed.
- Fiat USD, Euro can be used but at higher charges.
- Simply involves entering the currency to be converted and conversion results are provided.
- The address for paying in is provided as well as the address for converted currency.
- Charges at .5%
These are some of the top exchange brokers in the world of cryptocurrency. As all the main attributes are listed, investors are free to make their choices on which exchange profile best meets their investment needs and expertise.
Top Cryptocurrency Exchanges in 2018
In today's article, we have compiled some of the top cryptocurrency exchanges in 2018. All investments are operated with the aim of making maximum profit off the unit capital. As smart as it would be to invest in cryptocurrency, building a great portfolio as an investor requires using the right tools. Cryptocurrency investments aren’t left out, for most people, trading in cryptocurrency requires the use of a cryptocurrency exchange. Getting the right exchange to fit your needs, wallet and coins will determine how well your investments thrive.
To this end, having investigated on a variety of different types of exchange, here are some of the top cryptocurrency exchanges in 2018.
Get Started with the Right Cryptocurrency Exchange
To get started on picking the right exchange for your cryptocurrency you’re going to differentiate between the various types. The two main types of exchange are Fiat Exchange and Cryptocurrency to Cryptocurrency exchange.
Fiat Exchange makes use of actual government issue currency trading for cryptocurrency.
Both types of exchange will be needed on the short or long run as the case might be. Any first timer will at first have to convert fiat money to cryptocurrency before trading any types of crypto. So, to get started, here is a list of exchanges that allow Fiat to cryptocurrency, along with their unique peculiarities.
1. Operates from San Francisco
2. Offers an uncomplicated interface that ranks it as one of the easiest fiat exchange options for beginners.
3. Functions like a brokerage in that the cryptocurrency is purchased directly from CoinBase.
4. They charge fees of 1.49% on bank purchases and 3.499% on credit and debit card purchases, both of which are cheap at average market rates.
5. Its easier to use a bank account for large transactions on this platform.
6. The exchange is always looking at the possibility of adding more cryptocurrencies.
7. The advantages of being easy to use, low fees, and card payable make for great start.
1. This also has card purchase option, easily usable for first timers, and instant delivery.
2. Trade in BTC, ETH, LTC, Ripple, Qtum, BCH, ETH Classic, and trades all over the world.
3. This exchange offers higher fees and 5.5% on transactions by debit or credit card.
4. Sales to fiat currency aren’t allowed on this platform.
5. This cryptocurrency exchange doesn’t provide a cryptocurrency wallet.
6. This exchange is best for when COINBASE doesn’t support transactions from your country and if you have a deposit address in another exchange to buy cryptocurrency into.
1. This exchange allows the transacting of BTC and ETH and fiat currency.
2. Supported countries and states are Europe, Indonesia, Malaysia, South Africa and Nigeria.
3. Can work with both transfers and cards.
4. With a trading fee of .25%, the fees for this cryptocurrency exchange are quite friendly.
5. If an account is verified, it can trade over 100,000 Euros.
1. A Europe based exchange that trades BTC, BCH, LTC, ETH, IOTA, Komodo, Ripple, etc.
2. Trades these cryptocurrencies with fiat currencies US Dollars, Euros, and Swiss Francs.
3. Payments can be made via bank transfers, Skrill, Neteller, Credit and debit Cards.
4. Card charges are about 3.98%
5. Payment isn’t required for transfer of cryptocurrency between accounts within the exchange. This lessens the stress of low amount transfers.
6. This exchange provides an easy interface and supports a wide range of payouts?
1. High security, easy liquidity, trading across various platforms are some of the benefits of the crypto-exchange.
2. The fees are a bit higher than most but it also has an almost 100% uptime.
3. They have over 2million accounts.
4. CEX has been hacked a long time ago.
5. They charge on BTC.
1. Operates from San Francisco, and is one of the best exchanges that offer fiat exchange.
2. They offer low fees, high liquidity and fast funding.
3. Secure and reliable with legal compliance.
4. Cryptocurrency offered include BTC, Monero, ZCash, Ripple… etc.
5. KRAKEN also offers some advanced exchange options such as loss stopping.
6. Can be used for Cryptocurrency to Fiat conversion.
7. Offers a wide variety of cryptocurrency.
1. This exchange offers peer to peer exchange.
2. Traders are allowed to place ads on the platform to sell or buy currency.
3. There is a rating system to keep track of traders.
4. This platform is the best for Peer to peer trading
The concept of cryptocurrency is pretty much invalidated if it can not be converted to real-world value. Converting cryptocurrency into local currency, whether cash or wire transfer is the basis of the cryptocurrency exchange. Exchange can be a physical business venture where crypto coins are exchanged for a payment by traditional means. The trading can also be done virtually by online money transfer. Digital transfers are often time the most common exchange trade you’d come in contact with. This is because they are subject to fewer regulations.
In our last article, however, we discussed Cryptocurrency Mining Basics for Beginners
Exchanges still retain accounts all over the world to better facilitate payouts in various currencies. Exchanges can be done by direct cryptocurrency debit into another crypto wallet. Prepaid cards can be used also when they are loaded anonymously. These cards can be used all over the world. Some digital currencies are backed by gold or other such materials in the real time. Cryptocurrency exchange simply deals with the trade of cryptocurrencies.
Digital Currency Providers
A Digital Currency Providers DCP are businesses set up for the purpose of monitoring accounts. DCPs hardly issue currency to their customers, but merely maintain accounts. A customer trades on the exchange and the value of their transaction is deducted or added to their DCP account. A few exchanges are subsidiary businesses of DCP. Creators of cryptocurrency have no direct effect on cryptocurrency exchange.
With over 1500 cryptocurrencies playing around in the market, investors have taken a lot of notice of this market. According to CoinMarketCap, the Cryptocurrency market has a combined market value of about $289 billion. With such market strength, its no wonder that a wide range of investors need trading platforms to help them provide much-needed structure in the digital currency sphere. This is where the exchanges come in strong.
Exchanges can include both cryptocurrency and fiat currency. Different exchanges are used for trading different crypto coins. Some coins can only be traded by bitcoin since they are still quite new and can’t be traded directly by fiat currency.
Exchanges are also suited to fit into different levels of trading. The functions and variety of these exchanges can be likened to brokerage firms. A different type of exchange meets the needs of full-time trading and quite distinct from that for less-experienced investors and traders. Regulations on these trading platforms also vary greatly with the location of the exchange. In November ’17 Chinese exchanges were clamped down on and had to either move their trading outside the country or shut down operations. In the United States, various state by state regulations and federal laws determine the extent an exchange can transact.
As earlier stated, there is quite a number of different exchanges with a wide array of offerings and options. Differences come in terms of securities, coin offerings, fees and trading features. There are over 200 cryptocurrency exchanges currently in business. It is quite imperative to read the fine print of any exchange before venturing to do business with them. The online sites might be a bit riskier, therefore, a potential investor should look out for website security as the first measure of safety.
Cryptocurrency Mining for Beginners
Cryptocurrency Mining is the newest rising trend within the last decade to ease virtual transactions. These currencies do not actually exist as coins or paper bills, but only as data in virtual space but with real-world equivalence. Although known as currency, crypto-currency is ‘mined’. Mining, in this case, refers to the verification process of a crypto transaction. So basically, cryptocurrency is a unit of currency that cuts across all geo-economic borders and has a specific value that allows people to trade among themselves, all around the world, regardless of local currency.
Find out what cryptocurrency mining is and how it works
Miners maintain the ‘blockchain’ by verifying the transactions. A blockchain is a collection of encrypted and linked transactions [blocks]. Blockchains are always growing and open to the public domain so that anyone can join in. A block includes the details of both parties and the e-currency value of the exchange, a hash or unique fingerprint; a hash to the preceding block in the blockchain. Mining also releases new cryptocurrency units to the chain.
Before a block can be added to the blockchain, it has to be verified by all the network users. All existing cryptocurrencies have their own blockchain that’s being managed by complex automated calculations. To own a blockchain, one must first have an e-wallet or cryptocurrency wallet. The basic requirements of cryptocurrency mining are simply an internet connection and a hardware device.
Is it still worth it to mine Bitcoins?
Bitcoins is the unquestionable trailblazer in the cryptocurrency race and is heavily mined and monitored. It is being seriously monitored to prevent the addition of coins as it has been established that only 21million bitcoins will be produced. Bitcoin paved the way for the huge market of cryptocurrency with the rise from a rate of 1309 BTC to 1$ to about $20,000 dollar to 1BTC now.
Bitcoin has created 2 forks off the original chain for an option of creating new blockchains. These are the Bitcoin Cash (BCH) and Bitcoin Gold (BTG).
BCH, created August 2017 is a new version of blockchains run under a different set of rules. The software has a capacity for a higher number of transactions since it’s a new version of the Bitcoin blockchain.
BTG is the second child from the Bitcoin source code. BTG retains transaction information from the main Bitcoin chain before the forking out. Therefore, anyone with Bitcoins prior can actually retain their bitcoins value and transfer into BTG fork.
There is also Litecoin (LTC), similar to BTC, save for the fact that it takes a fourth of the time for creating a BTC to create an LTC. This makes LTC quite attractive to miners since you can create 4times the number of BTC within the same time slot. However, complex cryptography makes LTC mining a complicated task.
Another minable cryptocurrency is Ethereum (ETH). ETH is capable of storing computer programs or smart contracts. This edge it has over Bitcoin has made it highly visible to banks worldwide.
EOS E-coin poses the biggest competition to ETH as it provides effective transaction security and records.
Ripple (XRP) is another leading cryptocurrency technology, it was created to manage finance industry leaders.
As at July this year, according to Forbes, Bitcoin pays out a value of 2BTC ass transaction fee for mining a block. This doesn’t include the 12.4 BTC payout per block solved. This was an equivalent of $92000 as at the time. So why wouldn’t you want to try cryptocurrency?
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