Tag: cryptocurrencies

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Crypto Videos

High Frequency Trading in Cryptocurrencies – Can Normal Traders Utilise This Groundbreaking Strategy

https://youtu.be/pc8vSUAJNyY

 
High-Frequency Trading in Cryptocurrencies
High-frequency trading, also known as HFT, is a relatively new method of trading. It takes advantage of powerful computer programs that can transact

https://youtu.be/pc8vSUAJNyY

 
High-Frequency Trading in Cryptocurrencies
High-frequency trading, also known as HFT, is a relatively new method of trading. It takes advantage of powerful computer programs that can transact

 

High-Frequency Trading in Cryptocurrencies

High-frequency trading, also known as HFT, is a relatively new method of trading. It takes advantage of powerful computer programs that can transact a large number of orders in a time-span no human could succeed to do manually. The trading strategy is called high-frequency because the transactions are done in fractions of a second, and the sheer number of transactions can reach thousands per hour. High-frequency trading uses extremely complex proprietary algorithms to analyze various markets and determine which trades are worth taking and which are not.

One important thing that these systems strive to perfect is fast execution speeds. As these trades are performed at such high speeds, traders with the fastest execution speed will be significantly more profitable than ones that can’t execute their orders as fast.
The history of High-Frequency Trading
High-frequency trading is a fairly new trading strategy. In fact, several things needed to happen in order for it to even be considered as a trading strategy. The first one was, of course, the advancement of technology. The other was when exchanges started to offer incentives for companies to become liquidity providers.
The New York Stock Exchange’s group of liquidity providers is called Supplemental Liquidity Providers. This group was created after the collapse of Lehman Brothers in 2008 as a response to the investors showing major concern regarding liquidity. This group’s job is to create and add competition and liquidity for the existing quotes on the aforementioned exchange. The New York Stock Exchange, as an incentive to liquidity providers, pays a fee for providing liquidity. Even though the fee is extremely small (a fraction of a $ cent), high-frequency traders transact millions of times per day. As a result, the fees pile up and bring in large profits.

High-Frequency Trading in Cryptocurrencies

A handful of cryptocurrency exchanges are currently incentivizing high-frequency traders to use this trading strategy. Huobi, based in Singapore, and ErisX, based in Chicago, have separately started to offer colocation. Colocation enables a client’s server to be placed in the same facility or cloud as the exchange’s server. This would allow for execution speeds up to a hundred times faster than what was available before. This essentially gives these traders an edge over the rest of the market. Gemini was, however, the first big crypto company to offer colocation at a popular data center in the New York area. On top of that, it plans to expand its positions to a second site in Chicago.


These exchanges’ moves are a sign that high-frequency trading is something they are planning to approve as a viable trading strategy on their platform. They are doing this for a simple reason; cryptocurrency space has an enormous amount of exchanges, and crypto beginners usually choose to trade on an exchange with the highest liquidity. That’s why crypto exchanges are allowing and encouraging this controversial practice to slowly enter the crypto sphere. While “trading bots” have been present in crypto since the days of Mt. Gox, colocation takes algorithmic trading to a whole another level.
Pros and Cons of High-Frequency Trading
Pros of High-Frequency Trading
High-frequency trading provides two major benefits:

It improves market liquidity.
It removes bid-ask spreads.

By transacting millions of times throughout the day, high-frequency trading helps increase liquidity and remove bid-ask spreads that would otherwise be too small. This was even tested by adding fees on HFT, which resulted in bid-ask spreads increasing.
Another upside of high-frequency trading is that it removes the need for manual trading at big companies, therefore reducing labor and labor education costs dramatically. Once the algorithm is programmed, the operators only interfere with the system is when they notice an error.

Cons of High-Frequency Trading

High-frequency has also had some criticism on its back due to its downsides. What has been listed as a benefit can also be considered a downside in this case. High-frequency trading has almost completely replaced humans for mathematical models and algorithms to make decisions. Decisions of whether to buy or sell happen in milliseconds and due to the similarity of models between companies, the market swings upwards or downwards without any particular fundamental reason.
May 6, 2010, has shown us how the unexplained swings could shake the markets. The Dow Jones Industrial Average suffered its largest intraday point drop ever in just 10 minutes by declining 1,000 points. The price plummeted and rose back up again 20 minutes later. A government investigation found out that the reason for this crash was a massive order that triggered a sell-off.

Another downside to high-frequency trading is from the perspective of retail traders and companies that do not have the capital to position their servers near the trading mainframe. As a result, the big companies with well-developed high-frequency trading systems now profit at the expense of the “little guys.”
Another major concern about high-frequency trading is the type of liquidity it provides. The liquidity produced by this type of algorithmic trading is momentary and is also called “ghost liquidity.” This means that high-frequency trading provides liquidity that is available to the market for an extremely short amount of time. This way of providing liquidity, in most cases, prevents traders from actually using the liquidity provided.

Recommendations

Since High-Frequency Trading is a relatively new concept, information on it is quite scarce. On top of that, trading algorithms and models used by the large companies are kept a secret in order to remain as profitable as possible.
However, there are some quite interesting pieces on high-frequency trading worth reading. Anyone who is interested in reading about algorithms and high-frequency trading should take a look at:

Algorithmic and High-Frequency Trading (Álvaro Cartea, Sebastian Jaimungal, José Penalva) – This book first explains how market microstructure works. After that, it focuses on using various tools from stochastic analysis to solve problems such as optimal liquidation or optimal acquisition problems. The book also discusses some HFT strategies that can be used by anyone and everyone.

High-Frequency Trading: A Practical Guide to Algorithmic Strategies and Trading Systems (Irene Aldridge) – This book focuses on high-frequency trading strategies and models. It also shows proper and appropriate ways of backtesting these strategies and analyzing their performance over time. The book also sheds light on how high-frequency trading is used in a business scenario.

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Crypto Market Analysis

Daily Crypto Review, Nov 28 – Another bull rally despite China crypto-business crackdown

The cryptocurrency market had another great day. After a day of consolidation that the industry had yesterday, the past 24 hours have been quite bullish. Most cryptos ended up in

The cryptocurrency market had another great day. After a day of consolidation that the industry had yesterday, the past 24 hours have been quite bullish. Most cryptos ended up in

The cryptocurrency market had another great day. After a day of consolidation that the industry had yesterday, the past 24 hours have been quite bullish. Most cryptos ended up in the green, and some of them even broke their old key levels. If we take a look at today’s prices, Bitcoin went up %4.84, and it is now trading at $7,484. Ethereum gained 3.12%, while XRP went up 3.13%.

Of the top100 cryptocurrencies by market cap, the biggest gainer is Siacoin, with an explosive gain of 33.82% on the day. The biggest losers of the day were Silverway and Molecular Future, which lost 14.83% and 4.84% of their value, respectively.

 

The most recent jump in price was disproportional when we take into consideration all cryptocurrencies. Bitcoin’s dominance has increased more than 0.5% when compared to the value it had yesterday as it gained more value than the rest of cryptocurrencies. Its dominance is currently 66.52%.

The cryptocurrency market as a whole now has a market capitalization of $203.87 billion, which represents a significant increase when compared to the value it had yesterday.

What happened in the past 24 hours

China is showing its teeth with its latest crypto-crackdown. As reported, at least five local exchanges had to stop their operations or announce that they will no longer serve domestic users this month. Chinese regulators issued a series of warnings and notices as part of a cleanup of cryptocurrency trading.

The latest wave of shutdowns and restrictions in the crypto industry represent the biggest cleanup of the sector since September 2017.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin did not spend much time consolidating its price as the bulls seemed to have made a decision to move the price up. After consolidating above 7,000, the bulls pushed Bitcoin above $7,415. This move was successful and Bitcoin has now made this key level its support.


Bitcoin’s volume was on the levels it was at during the sell-offs, which happened a few days ago. Its RSI level is currently more near overbought than near oversold territory.

 

Key levels to the upside                   Key levels to the downside

1:  $8,000                                          1: $7,415

2: $8,425                                           2: $6,620

3: $8,640                                

Ethereum

Ethereum bulls also had their run but left Ethereum right on the key level of $153. Ethereum is now trying to decide whether its price will stay above this line or below it. However, whether the price ends up above or below $153, the bullish move was successful as this key level was not the only one that the price passed to the upside.


Ethereum’s RSI is now approaching overbought territory, while its volume has decreased heavily after the move has ended.

Key levels to the upside                    Key levels to the downside

1: $167.8                                            1: $127

2: $178.6

3: $185

XRP

XRP was another cryptocurrency that had a bull rally in the past 24 hours. However, its price is still not stable enough that we can say that this move was completely successful. After consolidating at around $0.21, XRP’s price shot up to $0.227 it is now trading at. However, with no key resistance levels broken and no real support levels formed, this move hasn’t brought XRP out of the limbo yet.


XRP’s RSI is slowly increasing while its volume is declining slightly.

Key levels to the upside                   Key levels to the downside

1: $0.235                                           1:  $0.202

2: $0.245

3: $0.266

Categories
Crypto Videos

Will Cryptocurrency Replace Fiat? – Which Crypto Will Be Dominant?

https://youtu.be/HLUrFWkdBto

 
Can any cryptocurrency replace fiat?
The cryptocurrency community tried to predict how digital currencies will someday take over the world and stand on the spot of fiat

https://youtu.be/HLUrFWkdBto

 
Can any cryptocurrency replace fiat?
The cryptocurrency community tried to predict how digital currencies will someday take over the world and stand on the spot of fiat

 

Can any cryptocurrency replace fiat?

The cryptocurrency community tried to predict how digital currencies will someday take over the world and stand on the spot of fiat currencies. However, there are several problems that the industry has to tackle before becoming mainstream. Some economists view cryptocurrencies with quite a bit of disdain. Even though some traditional financial institutions pointed out the importance of the concept of blockchain technology and even announced working on developing or adopting something similar, only a few have made any suggestion that they will adopt cryptocurrencies at the expense of fiat money.


Even though cryptocurrencies have a long way to go before being considered mainstream, some obvious signs show various cryptocurrencies are making it in the traditional business space.
When talking about any cryptocurrency taking over fiat, we have to think about which one would be the best replacement for the traditional financial system.

Bitcoin

Bitcoin is the one cryptocurrency that remains most likely to become mainstream and get adopted by the world on a large scale. While there is no single authoritative list of companies that accept cryptocurrencies such as Bitcoin, Coin Telegraph suggests that over 54 major companies currently accept one or more cryptocurrencies. Out of the 54 companies, just two don’t accept Bitcoin.
Looking at this statistic, Bitcoin easily outpaces all other cryptocurrencies at the moment.


Altcoins

Altcoins are cryptocurrencies that are alternative to Bitcoin. They tend to see lower levels of acceptance among major companies, as fewer companies want to take such a risk. Coin Telegraph suggests that, when compared with the 52 major companies that accept Bitcoin at the moment, only 25 accept Litecoin, 13 accept Ethereum, 14 accept Bitcoin cash, 15 accept Dogecoin and 12 accept Monero.
However, these 52 companies reported by Coin Telegraph are not the only ones that accept cryptocurrencies. UseBitcoin is a directory that lists over 5,000 businesses and retailers, with nearly all of them accepting Bitcoin. On the other hand, the large majority of these companies don’t accept other cryptocurrencies.
More and more businesses are accepting cryptocurrencies other than Bitcoin or are even developing their own ones. Cryptocurrencies are witnessing wider acceptance as the years go by. Places that have accepted only Bitcoin in the past started accepting Litecoin, Ethereum, or some other cryptocurrency. On top of that, there are even ATMs that offer cryptocurrencies other than Bitcoin. That being said, Bitcoin is still dominant in the cryptocurrency space.
In the end, it’s difficult to guess if cryptocurrencies will get mainstream and if they will, which will able to break into it most decisively. Bitcoin has the advantage of the biggest name and largest market cap cryptocurrencies, as well as being the first one to break into the market. However, altcoins continue to grow in popularity against Bitcoin, even when we take into consideration the bear market.
At the moment, no cryptocurrency has effectively become mainstream and overtaken fiat in any aspect in any part of the world.

Conclusion

There is a possibility that cryptocurrencies may one day take over the role of money from fiat currencies. However, the obstacles they face at the moment, such as widespread adoption, regulation, and such, are extending the horizon enough for the analysts to be unable to predict the future outcome.
One thing is certain, and that is that cryptocurrencies are a groundbreaking technology.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 27 – Crypto markets consolidating as adoption rises

After an explosive gain cryptocurrency industry had yesterday, the past 24 hours have been quite stagnant in price. Many cryptocurrencies just tried to consolidate and form respect towards support/resistance lines.

After an explosive gain cryptocurrency industry had yesterday, the past 24 hours have been quite stagnant in price. Many cryptocurrencies just tried to consolidate and form respect towards support/resistance lines.

After an explosive gain cryptocurrency industry had yesterday, the past 24 hours have been quite stagnant in price. Many cryptocurrencies just tried to consolidate and form respect towards support/resistance lines. If we take a look at today’s prices, Bitcoin went down2.15%, and it is now trading at $7,107. Ethereum lost 1.5%, while XRP went down 1..51%.

Of the top100 cryptocurrencies by market cap, the biggest gainer is LINA, with 67.55% daily gain. The biggest loser of the day was Digitex Futures, which lost 8.10% of its value.

Bitcoin’s dominance has stayed on virtually the same spot when compared to its value from the past 24 hours. Its dominance now sits at 65.94%.

Note: At the moment of this publication, Bitcoin drops below $6,900 on the news of a $50 million hack of Ethereum in the Korean exchange Upbit. All cryptos are currently losing their close supports.

The cryptocurrency market as a whole now has a market capitalization of $1195.19 billion, which represents a significant increase (around $9 billion) when compared to the value it had yesterday.

What happened in the past 24 hours

Even though the price doesn’t show it, Bitcoin and other cryptocurrencies are slowly getting more and more adoption. A cryptocurrency-friendly travel booking platform has partnered with the online travel agency giant Booking.com therefor making cryptocurrencies available to people using Booking.com. This deal will allow Travala users to book their accommodation listed on Booking.com with cryptocurrencies.

While this is a great thing, there are no changes to Booking.com as a platform, so this info will impact just the Travala platform users.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After yesterday, when Bitcoin bulls rallied and managed to pull the price back above the $7,000 threshold, Bitcoin started consolidating. Once the price even pushed to break its key level of $7,415 but failed to do so, Bitcoin has been on a slight decline, but contained within two key levels.


Bitcoin’s volume started to drop after the failed attempt to break $7,415. Its RSI level broke the oversold territory once the movement up started.

 

Key levels to the upside                   Key levels to the downside

1:  $7,415                                        1: $6,620

2: $8,000

3: $8,425                                

Ethereum

Ethereum had a terrible weekend as well as its price plummeted almost $50. After the big drop, it rallied back up along with most cryptocurrencies. However, unlike Bitcoin, Ethereum did not manage to stay contained within its “safe zone.” It is now trading at around $145, which is just below the support zone, which now turned resistance.


Ethereum’s RSI is now above the oversold territory, while its volume has decreased heavily when compared to the past couple of days.

Key levels to the upside                    Key levels to the downside

1: $167.8                                            1: $127

2: $178.6

3: $185

XRP

XRP has not yet decided on what price to anchor to, meaning its s support levels are still unclear. Its price seems to be consolidating as well, which means that support and resistance lines will be revealed soon. XRP did not break any resistance levels and stayed in the price limbo that it was at after the bear move. Its price is now somewhere around $0.219.


XRP’s RSI barely moved above the oversold territory, while its volume is still on very high levels.

Key levels to the upside                   Key levels to the downside

1: $0.235                                           1:  still unclear

2: $0.245

3: $0.266

Categories
Crypto Videos

Bitcoin The Biggest Enemy Of Cryptocurrency Success

https://youtu.be/SheLhGdKSQI
For the cryptocurrency skeptics

Ever since its inception over a decade ago, Bitcoin and the cryptocurrency market, in general, had quite a big group of skeptics declaring the

https://youtu.be/SheLhGdKSQI
For the cryptocurrency skeptics

Ever since its inception over a decade ago, Bitcoin and the cryptocurrency market, in general, had quite a big group of skeptics declaring the

For the cryptocurrency skeptics

Ever since its inception over a decade ago, Bitcoin and the cryptocurrency market, in general, had quite a big group of skeptics declaring the market dead or directed towards obsolescence. Ten years later, Bitcoin is worth four figures, while the crypto sector as a whole is stabilizing and maturing.
However, cryptocurrencies still can’t seem to break into the mainstream and start getting used as they were intended. Very few merchants accept cryptocurrency payments, and even those that do immediately exchange their holdings to fiat currencies.

Argument against cryptocurrencies

There are currently several thousand cryptocurrencies on the market. This can be considered a sign of the success of the market as a whole. However, these numbers can be deceptive. According to a CNBC report, over 800 cryptocurrencies are essentially dead and worth less than a single penny. When we take those out, the vast majority are not relevant or popular. Not to mention reports of various scams and fraud that happened and are still happening in the ICO market.
Other cryptocurrencies aside, the chief troublemaker in the industry is, according to skeptics, none other than Bitcoin itself. After reaching stratospheric heights of $20,000 in December 2017, Bitcoin price started falling in January, which started a lengthy bear market. On top of that, the value of crypto transactions fell by nearly 75% during the second quarter of 2018 when compared to the first quarter.
This lack of acceptance, both in the investment and retail arena, can partially be attributed to the US SEC’s denial of over a dozen ETF filings. On top of it, the regulators are trying to protect their respective fiat currencies, which brings Bitcoin and the crypto market to another obstacle – regulation.


Argument for cryptocurrencies

While it is true that Bitcoin prices crashed in early 2018, the market seems to be maturing, and the volatility, which was one of the main problems, is gradually fading. While this is bad news for speculators, it is excellent news for both institutional and retail investors, as well as for people who want to use cryptocurrencies as a payment method.
Cryptocurrencies and blockchain technology, in general, are starting to receive more and more attention for their utility rather than price movements. While merchants still remain wary of cryptocurrencies, banks and other corporations already started employing them.
While many are advocating the idea that Bitcoin and the crypto market are mainstream, the sector is determined to prove them wrong. While cryptocurrencies may still not be a standard payment method, the technology, as well as the idea behind cryptocurrencies, is quickly becoming extremely popular in different sectors and industries. As companies continue to fix their problems by introducing their infrastructure to a new frictionless solution to old problems with blockchain, cryptocurrency will strive.


The Bottom Line

Even though the market is divided on whether the cryptocurrency market is going to fail or not, the market has continued to plug along and thrive. Although prices have fluctuated wildly, the sector is maturing and stabilizing.
As more companies discover uses for cryptocurrency and blockchain, and more users accept them as a way to simplify their lives, they will remain at a top spot when it comes to technological improvements. On top of that, at one point, if the concept gets fully adopted, we can expect cryptocurrencies to integrate itself in all ways of life. Coins and tokens may come and go as most projects are not resilient enough to survive the harsh market conditions. Still, the idea and the concept behind cryptocurrencies will undoubtedly thrive and get more respect as time passes.

Categories
Cryptocurrencies

9 Best Cryptocurrency Wallets in 2019

Unlike fiat money, cryptocurrencies do not have a central authority or a designated place where you can safely keep them. But just like with real money, you need to store

Unlike fiat money, cryptocurrencies do not have a central authority or a designated place where you can safely keep them. But just like with real money, you need to store

Unlike fiat money, cryptocurrencies do not have a central authority or a designated place where you can safely keep them. But just like with real money, you need to store your crypto funds somewhere safe and secure.

Cryptocurrency wallets are the answer to the “how do I interact with my crypto coins safely?” question. A cryptocurrency wallet lets you trade, store, buy, sell, and swap cryptocurrencies in a safe way.

It can be difficult identifying the crypto wallet that suits your personality and needs. Whether you’re the laid back guy or girl that likes to check into cryptoverse once a week, the savvy trader who’s always on top of the market, or the HODLer, we have compiled a list of the top cryptocurrency wallets that are reputable, secure, and convenient to help you navigate the crypto world as safely and rewardingly as possible.

We based our criteria on supported cryptos, security, recovery options, and more. Read on for the top 9 cryptocurrency wallets in the market today.

Top Cryptocurrency Wallets

Ledger Nano X

Ledger Nano X is the latest hardware wallet offered by crypto solutions company, Ledger. The wallet won the “Consumers Innovation Honoree Award” during its launch – stirring the attention of crypto enthusiasts. 

The wallet’s screen is designed to display all the details of your transactions at once. It has two buttons, which will control the entire operation of the hardware wallet. The Nano X is also Bluetooth enabled, enabling you to pair it with your iPhone or Android and check your balance, send and receive crypto, and add accounts – all with a few taps on your phone. 

Ledger Nano X has an in-built rechargeable battery, so you don’t have to worry about tagging along the USB cable everywhere with you. It will also allow you to store up to 22 coins and ERC-20 tokens with its live version and is compatible with other crypto wallets ranging from MyCrypto, MyEtherWallet, Magnum Wallet, Yoroi Wallet, AdaLite, Trinity, Galleon, OWallet, LisKish and more. 

As of November 2019, Nano X supports a cool 1338 crypto assets, from the most popular ones like Bitcoin, Tether, Ethereum, Litecoin, Ripple, Ethereum Classic, Cardano, to other less known ones like Pundi, Quant, Aeternity, RHOC, CA, and so on.

The device is equipped with a state-of-the-art security chip – the CC EAL5+ – making it nearly impossible for your cryptos to be stolen. 

Ledger Nano X allows users to connect it via two ways: USB and Bluetooth. Currently, it’s compatible with 64-bit computers (Windows+, macOS, and Linux), as well as iOS 9+ and Android 7+. 

Also, Nano X allows you to recover your crypto account even if you lose your device. Its 24-word recovery phrase, a.k.a seed phrase, is a list of words that stores all the info you need to recover your wallet.

Ledger Nano S

Listing two wallets from the same company might seem an overkill, but Ledger’s products deserve space on this list simply because they both go toe to toe with the best in the market.

Ledger Nano S is the older sibling to Nano X but has qualities that help it maintain its revered place in the wallet market.

Nano S’ screen lets you see everything at a go, with two buttons that let you control it. Your wallet is protected with a secure chip always locked by a pin code. That and its offline status secures your private key from prying eyes and internet vulnerabilities.

Customers can choose from either matte black, saffron yellow, lagoon blue, transparent, and jade green colors. Nano S can support 1100+ cryptocurrencies and tokens, including Bitcoin, Bitcoin Cash, Ethereum, Bitcoin Gold, Litecoin, Waves, Ark, Stealth, Horizen, and more.

Just like Nano X, Nano S is compatible with other crypto wallets such as Yoroi, MyCrypto, MyEtherWallet, Fairy Wallet, Beryllium, VeForge Vault, OWallwt, Neo Wallet, Kin Laboratory, and more.

You can connect Ledger Nano S to the computer via a USB 2.0 port, and the system is compatible with 64-bits computers (Windows 8+, Mac 10.8+) and Linux. It’s also compatible with Android 7+ smartphones.

The wallet doesn’t need to be charged – it uses your PC’s power when you plug it in.

KeepKey

Launched in 2015, KeepKey is one of the most recognizable crypto wallets. The wallet uses advanced security technology to protect your funds from theft and hacks. Even if someone gets hold of your wallet and installed it in a modified software that’s not designed by KeepKey, the device wouldn’t let them proceed.

Part of the reason KeepKey is popular is that it’s embedded with a cryptocurrency exchange – ShapeShift – making it possible to trade crypto coins and tokens right on the device. 

KeepKey supports 12, 18, and 24 recovery phrases to enable you to recover your cryptos in case the device is spoiled, stolen, or lost.

KeepKey wallet supports eight cryptocurrencies – namely Bitcoin, Bitcoin Cash, Bitcoin gold, DASH, Dogecoin, Ethereum, Litecoin, and Digibyte. It can also host 46 ERC-20 tokens, including Decentraland, Edgeless, FisrtBlood, Gnosis, District0X, Dai, CyberMiles, and more. Also, users can interact with 1000 more cryptos via KeepKey and MyEtherWallet integration.

KeepKey is compatible with Windows, Mac, and Linux, and you will find the KeepKey Client app on either of the platforms via Google Chrome. iPhone and Android users can access KeepKey by installing the MyCelium app available on Google Play and Apple’s App Store. If you want to use a phone to operate KeepKey, you have to connect to your phone using an OTG adapter cable.

Exodus

Exodus wallet is a desktop and mobile wallet that gives users the whole crypto experience – from sending to loved ones to paying for things to HODLing to trading right within the software. It has a simple design that even beginner traders will find it extremely easy to navigate. Its versatile design with real-time display of digital assets; and a customizable portfolio that allows you to change themes, background color, and other features has endeared it to the crypto community.

As of November 2010, the wallet supports 102+ crypto coins and tokens, including Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ethereum Classic, plus other little known ones like Genesis Vision, Salt, Otum, Leopring, Aragon, Storj, Decred, TrueUSD and more.

Exodus is a perfect option for users who trade regularly or want to trade on the go. It’s also very convenient to log in to your account and pay for things. And if you lose access to your assets, it provides the option of a seed phrase that will generate your wallet address and private keys.

The wallet doesn’t store any of your information online – including your passcodes and private keys. This is a good thing because it keeps your crypto safe from hackers, but it also means it’s your sole responsibility to protect your account.

Being a software wallet, you don’t need extra hardware like OTG or USB cables to access your wallet. All you need to do is install it on Windows, Linux, or Mac and get to interact with crypto in no time.

CoolWalletS

CoolWalletS is a hardware mobile cold storage introduced in 2016 by the Taiwanese company CoolBitX. With the mobile wallet, you can store, swap, send, and receive crypto at the single touch of a button. The wallet is integrated with Binance DEX and Changelly crypto exchanges, so you never miss any trading opportunity. 

If you’re looking for a discreet (which is a no-brainer when it comes to your private keys), portable, lightweight, and sleekly designed wallet, the CoolWalletS is your go-to option. The wallet is ‘cool’ enough to look exactly like a credit card – so no one will be the wiser to the fact that you’re transacting with a crypto wallet. 

CoolWallet utilizes a high-end security solution – Secure Element (SE) to store your private keys – making it virtually impossible for your coins to be stolen. The secure element is also capable of verifying if your device has been tampered with- by verifying its integrity. CoolWallwet also uses passcodes, a touch ID, and a 2+1 factor authentication (with facial recognition) – which in our opinion sums up to pretty foolproof security. 

On top of that, CoolWalletS is waterproof, shockproof, and temperature resistant – meaning you can get away with quite a lot with your wallet still intact.

The wallet provides support for Bitcoin, Ripple, Ethereum, Bitcoin Cash, Horizen, ICX, stable coins, and ERC20 tokens, with BitDegree, Formosa Financial, Metal, Cortex, USD Dollar, JoyToken and others. 

CoolWallet utilizes Bluetooth Low Energy (BLE) to facilitate connection to your smartphone or tablet. Currently, it supports iOS 9.1+, and Android 5.0+, with at least the BLE version of 4.0. 

Indacoin

Indacoin is a mobile-based crypto wallet offered provided by UK-based Indacoin Limited, the company that runs the Indacoin crypto exchange. Launched in 2013, the wallet allows users to instantly buy crypto with the use of their credit or debit card. As well, you can exchange and manage cryptocurrency from right within the wallet with the use of a single app. However, the wallet does not support selling crypto as of now.

Russia and Turkey users can use Indacoin to withdraw crypto to a debit or credit card. Users from other countries only have the option of crypto-based withdrawals.

The wallet features an intuitive and easy to use interface that makes it stress-free to buy, receive, swap, or trade crypto on the go. The wallet provides support for 100+ cryptocurrencies, including big hitters like Bitcoin, Ethereum, Ripple, Bitcoin Cash, Tether, Litecoin, Binance as well as other less dominant ones like IOTA, Bumbacoin, Chesscoin, CondenSate and so on. 

To ensure users’ safety, Indacoin only accepts 3D-secured cards like MasterCard and SecureCode and Visa Verified. Indacoin also does not store your card details – a move that protects your personal data. Purchases are also verified via a verification code sent via SMS to your phone. 

Indacoin is available for Android 4.1+ and iOS 9.0 and later versions. 

Trezor 

Trezor is almost an instantly recognizable name in nearly every crypto setting. That’s because it was the first-ever wallet to store crypto offline, and it has so far maintained the reputation of being one the most secure hardware wallet out there. Trezor is available in two models: Trezor One and Trezor Model T. The difference between the two models is Model T lets you control it via a touchscreen while One uses two physical buttons.

Both models let you view the status of your transactions on the display. You don’t need a battery to power them since they will be powered by your PC when you plug them in.

Trezor supports 1000+ coins, with big-timers like Bitcoin, Litecoin, Stellar, EOS, DASH, ZCash, Monero and also others you probably haven’t heard of, like Seele, Revain, FunFair, GNY, Unobtanium, Fusin, Tael, Ruff, Numerai, Insolar, Polis, DADI and so on.

The wallet is also compatible with other crypto wallets, including Exodus, Magnum, Bloks.io, AdaLite, and Yoroi.

Trezor provides the option of creating a seed phrase that protects your private key in the event of theft, loss, and destruction. It supports BIP39 phrases – which it doesn’t store nor remember. This way, even if someone gets their hands on your wallet, your account remains safe. As a further protective measure, Trezor’s hardware case is ultrasonically welded in such a way that it cannot be restored after breakage. 

The device is compatible with both computers and smartphones. If you have Windows 7 and later versions, macOS 10.11+, Linux, and Android, you can get Trezor and try it out.

Guarda

Guarda is a non-custodial web, desktop, mobile, and Chrome Extension wallet that allows you to buy, sell, receive, send, and store crypto. Introduced in 2017, the wallet is one of the few that allows so many functionalities for crypto in ‘one roof.’

The web and desktop wallets can be used on any device running on Windows, Linux, or macOS, while the mobile-based wallet allows Android and iOS users anywhere, anytime. Its inbuilt crypto purchase function lets you buy crypto using both crypto and fiat currencies. Besides, it features an exchange that lets you effortlessly swap coins from one currency to the other.

All Guarda’s wallets are non-custodial – meaning you are entirely in charge of your addresses and private keys. Also, your personal information is not out there in the hands of a third party, and you won’t be subjected to intrusive Know Your Customer procedures.

Guarda requires you to save a backup file each time you create or import a wallet. You get logged out of the account if there’s no activity for a particular period. All backups are secured through the cutting edge Advanced Encryption Standard (AES), so your sensitive data is always safe and secure. What’s more, you can configure the mobile version wallet to require Touch ID/Face ID unlock.

You can even import private keys From Guarda’s own wallets or other exchange, desktop, or web-based wallets. There’s also a dedicated menu that lets you connect to Ledger Nano S and view your transactions on the Nano S wallet on Guarda. 

You can create your own ERC20 tokens via the wallet’s Guarda Token Generator – another exciting functionality of this wallet.

Guarda supports over 40 major blockchains and 10,000+ tokens. Household names like Bitcoin, Ethereum, DASH, Litecoin make the list. So do other little known ones like Groestlcoin, ReddCoin, Maker, Gulden, Expanse, Gemini dollar, and so on.

Coinbase

Coinbase wallet is an app wallet provided by the crypto exchange Coinbase that offers your state of the art security for your crypto. With Coinbase, you can store tokens bought from other exchanges or Initial Coin Offering events. Users can also interact with Ethereum-based decentralized applications (DApps) on its DApp browser.

Cooinbase is a separate product from the exchange – meaning you don’t have to have an account on the exchange to access and use the wallet. Anyone from anywhere with any IOS or Android device can download and install it.

It’s important to distinguish between the Coinbase wallet and the exchange wallet on Coinbase.com. The exchange wallet will store your private keys on Coinbase’s servers, while the wallet app lets you store your private keys on your device. Also, with the app, you can easily move cryptocurrency from its existing wallet apps like Metamask, MyEtherWallet, and others.

With Coinbase Wallet, your private keys are secured with Secure Enclave – a high-end security feature that enables your wallet to remain intact even if it were hacked. On top of that, the wallet employs biometric technology to prevent unauthorized success.

Another remarkable feature by the wallet is always keeping you up to speed with the current price of cryptos in your local currency. Over 100 fiat currencies are supported – including EUR, GBP, USD, AUD, and CAD.

Currently, the Coinbase wallet lets you manage Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, and all ERC-20 tokens. You can also store cats, monsters, art, and even ERC721 digital collectibles all in one beautiful gallery.

The wallet lets you back up your private keys on Google Drive and iCloud. Some people are skeptical about how safe those options are, but with a strong, unique password and multiple-factor authentication, we think they can be considered safe.

You can operate the wallet on iPhone, iPad, and iPod Touch as long as the device supports version 11.0 or later versions. For Android devices, you need to have at least the 6.0 version or later versions. The Coinbase wallet app is available for download on Google Play and iOS App Store. 

Conclusion

If you’re serious about crypto, you need to get a safe, secure, and robust crypto wallet. Each of these options provides one of the best experiences possible of interacting with crypto. Of course, you should get the wallet that best suits your needs, your personality, and how regularly you interact with crypto. Also, ensure to buy your wallet directly from the company’s website, just to stay safe. 

Categories
Crypto Videos

Tether & Its Controversies – Is Your Money At Risk?

https://youtu.be/Dgxi9lC6QyA

Tether and its controversies
Before talking about how does Tether work, we have to know what it is.
Tether is a blockchain-based stable cryptocurrency backed in fiat currency.

https://youtu.be/Dgxi9lC6QyA

Tether and its controversies
Before talking about how does Tether work, we have to know what it is.
Tether is a blockchain-based stable cryptocurrency backed in fiat currency.


Tether and its controversies

Before talking about how does Tether work, we have to know what it is.
Tether is a blockchain-based stable cryptocurrency backed in fiat currency. Tether is backed by the US Dollar, which is all held in a designated bank account. Tether tokens are traded under the USDT ticker symbol.

Tether was first launched under a different name. It was called RealCoin when it first came out in July 2014. However, it was quickly renamed to Tether in November by Tether Ltd. Tether Ltd. is the company that maintains the reserve amounts of fiat currency. Tether started trading in February 2015.


In-depth explanation

Tether is the leader of the new type of cryptocurrencies called stablecoins. Stablecoins are created to keep cryptocurrency valuations stable, as most cryptocurrencies fluctuate too much in price to be considered viable currencies. Low volatility would allow stablecoins to be used as a medium of exchange rather than as a medium of speculative investments.
There are many forms of stablecoins, and Tether specifically belongs to fiat-backed stablecoins. As previously said, the US Dollar backs each Tether token in circulation. Tether was created to build the bridge between fiat currencies and cryptocurrencies. It is supposed to offer stability, transparency, and minimal transaction charges to its users. Tether is pegged against the US Dollar and maintains a 1-1 ratio in terms of value and price. However, there is no guarantee whatsoever provided by Tether Ltd. that users can exchange their Tether tokens for US dollars.

According to CryptoCompare data cited by The Wall Street Journal, somewhere around 80% of all Bitcoin trading is currently done in Tether. If this is true, Tether would be considered a major source of liquidity for Bitcoin as well as the cryptocurrency market in general.


Controversies on Tether

Tether was known for its controversies throughout its history. It allegedly got hacked for $31 million worth of Tether tokens, which made the company fork the coin to create a rollback. This event happened in November 2017.

This is not the end of controversies with Tether. Another controversy happened as the audit that was created to ensure that the fiat reserve is maintained never took place. Instead, Tether announced it was parting ways with the firm that was supposed to audit them. Right after that happened, Tether was issued a subpoena by financial regulators. This event happened in January 2018.


In April 2019, New York Attorney General Letitia James accused the parent company of Tether Ltd. as well as the operator of cryptocurrency exchange Bitfinex of hiding tremendous losses from its investors. Allegedly, Tether hid a loss of $850 million from its investors.

Tether has always been a center of attention when it comes to controversies. Many people are still insecure about whether it is backed by fiat currency or not. As there is no real evidence of whether the fiat funds exist, no one can say for sure. However, Tether remained a stable cryptocurrency for quite some time. So far, it has been a safe haven for traders and investors that want to move their funds away from volatile cryptocurrencies when the bear market approaches, without actually exchanging the cryptocurrencies for fiat. This way, they are avoiding various exchange and transaction fees.

Tether token is transacted on many popular cryptocurrency exchanges such as Binanace, BitFinex, and Kraken.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 22 – Crypto market crashes as China allegedly shuts down Binance Shanghai office in a crackdown

The cryptocurrency market had a major crash today. Most cryptocurrencies ended up being in the significant red. If we take a look at the past 24 hours, Bitcoin went down

The cryptocurrency market had a major crash today. Most cryptocurrencies ended up being in the significant red. If we take a look at the past 24 hours, Bitcoin went down

The cryptocurrency market had a major crash today. Most cryptocurrencies ended up being in the significant red. If we take a look at the past 24 hours, Bitcoin went down 0.6.51%, and it is now trading at $7,577. Ethereum lost 8.01%, while XRP went down 3.62%.

Of the top100 cryptocurrencies by market cap, the biggest gainer is MMO Coin, with 104.8% daily gain. The biggest loser of the day was DxChain Token, which lost 40.09% of its value.

Bitcoin’s dominance decreased by around 0.4% when compared to yesterday’s value. Its dominance now sits at 65.58%.

The cryptocurrency market as a whole now has a market capitalization of $208.21 billion, which represents a significant decrease when compared to the value it had yesterday.

What happened in the past 24 hours

Chinese authorities have reportedly shut down Binance’s Shanghai offices. Binance is one of the biggest cryptocurrency exchanges in the world.

Citing unnamed local sources, The Block announced that the local police raided Binance’s Shanghai offices and shut them down. Binance has around 50-100 employees working in Shanghai.

Binance has not yet responded to any requests for comment at the moment.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin had a significant crash today. Its price managed to break down under $8,000 and even test the big $7,415 key support level. As that level managed to hold the bears off for now, Bitcoin is now trading just above it.


Bitcoin’s volume increased as the move down progressed. Its RSI level is extremely low and is sitting in the oversold territory for some time now. It currently has a value of 13.6.

The key level of $8,000 passed to the upside, while the major key level to the downside is not $7,415.

Key levels to the upside                   Key levels to the downside

1: $8,000                                           1: $7,415

2: $8,425

3: $8,640                                   

Ethereum

Ethereum also broke its immediate resistance in the past 24 hours. After spending the day trading just below its immediate resistance of 178.6, Ethereum’s price slipped down and made its way towards below the $163.5 line. The price managed to stabilize above the green support area and is now trading close to $160.


The only major change in key levels is that the key level of $167.9 moved to the upside.

Key levels to the upside                   Key levels to the downside

1: 178.6                                             1: $167.8

2: $185

3: $193.5

XRP

XRP’s ranging movements stopped today, as the price crashed down. Its price fell below its key support level of $0.245, which made XRP unstable as bears took over the market. Even though it fell all the way down to $0,236, XRP managed to recover slightly and is now trading just under its $0,245 support level. If, however, bulls do not manage to cross over it, XRP may attempt to break down the $0.235 support key level.


The key levels of $0.245 moved to the upside, while the key level of $0.235 is added to the downside levels.

Key levels to the upside                   Key levels to the downside

1: $0.245                                           1:  $0.235

2: $0.266

3: $0.285

Categories
Blockchain and DLT Crypto Daily Topic

Smart Contracts: A new phase of contracts

When the first cryptocurrency – Bitcoin, came into existence, it brought with it more

When the first cryptocurrency – Bitcoin, came into existence, it brought with it more

When the first cryptocurrency – Bitcoin, came into existence, it brought with it more than a digital medium of exchange. Blockchain, the technology underlying it, has brought with it more possibilities that can revolutionize entire industries and even society itself.

Smart contracts are one of the most interesting and explored applications of blockchain technology. Today, Ethereum is almost synonymous with smart contracts – and that’s because it’s the most successful blockchain in providing a platform for people to create smart contacts. In this article, we discover what exactly smart contracts are, their current standing in today’s world, their strong and weak points, and more. But first, where did this whole concept of smart contracts emanate from?

The History of Smart Contracts

The concept of “smart contracts” originated in 1996 with Nick Szabo, a computer scientist, legal scholar, and cryptographer. He defined smart contracts as “a set of promises, specified in digital form, including protocols within which the parties perform on these promises.” As for why “smart,” he explained: “I call these new contracts “smart” because they are far more functional than their inanimate paper-based ancestors.”

Szabo went on and refined the concept over several years – releasing new literature on the subject. He described the concept of establishing contract laws via e-commerce protocols between strangers on the internet.

But the idea of smart contracts remained that – just an idea, until 2009, when Bitcoin, the first cryptocurrency emerged, along with blockchain technology. Blockchain provided the environment where smart contracts could now be implemented.

Nowadays, smart contracts are mostly associated with cryptocurrencies, whose underlying technology is blockchain. And although Bitcoin broke the ground for smart contracts, it has limited support for the function. Today, the Ethereum blockchain is the most popular platform for creating smart contracts.

What Are Smart Contracts?

A smart contract is a protocol that allows you to exchange anything of value in a transparent, self-executing, and undeniable way without the need for a middle man. Smart contracts are indeed the reason why the blockchain is referred to as decentralized because they allow us to execute trackable, unalterable, and safe transactions without the involvement of a central authority.

Smart contracts have all the information about a transaction, and they self-verify and self-execute once all the conditions have been met. Unlike traditional contracts, smart contracts are purely computer-generated. A programmed code delineates the obligations, rules, and penalties of the involved parties – the parties involved can even be people who have never met but who are nevertheless bound by the agreement.

With smart contracts, a party cannot deny their involvement at a later date. 

Jeff Garzik, the owner of blockchain technology company Bloq, describes smart contracts as such: “Smart contracts guarantee a very, very specific set of outcomes. There’s never any confusion, and there’s never any need for litigation.”

Objects of Smart Contracts 

Any smart contract has three integral parts to it. Also known as objects, the three integral parties are as follows:

  • Signatories – who are parties subject to the contract and who agree or disagree with the terms set out – using digital signatures
  • Subject of agreement – this object has to exist within the smart contract’s environment.
  • Specific terms – these are the obligations expected of all parties and the rules, rewards, and penalties associated with those terms. The terms must be mathematically described using a programming language suitable for the particular contract’s environment.

How Do Smart Contracts Work?

Smart contracts are essentially deterministic processes – which means their end behavior is entirely dependent on initial input. They execute agreements if and when certain conditions are fulfilled. As such, smart contracts work on the “if…then” premise. It’s important to note that smart contracts are not legal contracts, but pieces of code running on a blockchain.

Smart contracts running on the majority of blockchains are akin to a vending machine. You simply input your cryptocoin into the vending machine (in this case, the blockchain ledger). If your input satisfies the code within the smart contract, the smart contract executes the terms of the agreements set out in it.

For instance, “If Person A completes task 1, then payment from Person B is delivered to Person A.” Based on this protocol, smart contracts allow for the exchange of any kind of value, with each contract duplicated many times over and stored on publicly distributed ledgers. Once that happens, data encryption is employed to ensure the full anonymity of the participants.

Features of Smart Contracts

Smart contracts have inherent characteristics that are unique to them, and that set them apart from conventional contracts. These characteristics are as follows: 

Distributed. Smart contracts are replicated and distributed across all the nodes in a blockchain network 

Deterministic. Smart contracts only execute the actions they were instructed to, provided the conditions are met. Also, the outcome is the same, no matter who executes it

Autonomous. Smart contracts self-execute themselves by automating all sorts of tasks

Immutable. Smart contracts are unchangeable after being executed. As such, we can say they’re tamper-proof

Customizable. Before they’re deployed, smart contracts can be coded to suit specific preferences and needs

Trustless. Thanks to their automated process, parties can transact via smart contracts without knowing or trusting each other

Transparent. Smart contracts take place on a publicly available ledger. So, anyone can verify the details of a transaction

Potential Applications of Smart Contracts

Smart contracts can be used to improve and streamline processes across a wide chain of industries. Here are some examples:  

☑️ Elections

Since they are publicly verifiable, trackable, and irreversible, smart contracts would provide a fool-proof, secure system, allaying all concerns about elections rigging. Also, smart contracts would enable voters to vote online, allowing them to make their voice heard from whatever location they’re in. 

☑️ Management

Today’s business operations are riddled with back-and-forth verification and approval processes that slow down productivity. A blockchain ledger acts as a single source of trust as well as streamlines communication and work processes thanks to its accuracy, transparency, and autonomy.

☑️ Automobile

By using smart contracts, it could be easier to determine whose fault it was in an accident – the sensor or the driver, in self-driving cars. Also, automobile insurers could know how to charge rates depending on where, and under which conditions customers were operating their vehicles.

☑️ Real Estate

Smart contracts would help real estate agents cut on advertising costs. Since the blockchain is publicly available, all you would need to do is pay with cryptocurrency and encode your contract on the ledger. On the ledger, your services are open for everyone can see, helping you cut on advertising costs and so on.

☑️ Healthcare

Smart contracts could improve the healthcare industry in so many ways. Firstly, personal health records could be encoded and stored on the blockchain with a private key available to only the relevant parties. Receipts of delivered services could be stored on the blockchain and sent to insurers as proof of delivery. Smart contracts would also make it inherently easier to perform general healthcare management tasks such as regulation compliance, result testing, and managing health care supply inventories.

☑️ Insurance

With smart contracts, it would be easier to fulfill insurance claims when certain conditions are met as per the client-company terms of agreement. Also, smart contracts would come in useful in times of disaster by allowing people to claim their money in a timely fashion. Details like the degree of damage or loss can be recorded on the blockchain and compensation decided upon accordingly. 

☑️ Internet of Things (IoT)

IoT technology enables everyday devices to be connected to the internet in order to improve their usefulness to us. These devices could be connected to the blockchain to track all the products and processes in action.

And in e-commerce, Blockchain technology combined with IoT would enable the location and possession of products so that the right product gets delivered to the right person.

☑️ Mortgaging

Smart contracts would eliminate the need for middlemen and lengthy processing usually involved in mortgage agreements. Also, all details and information could be stored in a location where anyone can verify at all times.

☑️ Employment Contracts 

Smart contracts could help reinforce employer-employee contracts. The terms, conditions, and expectations on either side would be made clear, helping to improve fairness. Moreover, smart contracts can be used to streamline salary processing and avoid delays. They can also be used to improve transparency by preventing companies from altering an employee’s contract once they’re hired. 

☑️ Supply chains

The supply chain – the flow of goods from production to the final user is a central part of many industries, and it involves a lot of work verifying and tracking products. Smart contracts can remove the need for this as every detail is available on the blockchain, where everyone can track the location of commodities at any time. And if an item is lost in the process, smart contracts can be used to identify its exact location.

Besides, smart contracts bring transparency to the whole supply chain so that no party can default or breach the contract terms.

Blockchain platforms That Support Smart Contracts

The following blockchains are some of the most popular platforms facilitating the creation of smart contracts. Of course, Ethereum is the most recognized of them all because it was built almost solely as a smart contract platform. NEM, the blockchain supporting the cryptocurrency XEM, is also popular because it allows users to create smart contracts with Java, one of the most widely used programming languages in the world. These are the go-to blockchains for smart contracts in 2019:

Pros and cons of Smart Contracts

Smart contracts provide several benefits to users. From watertight security to saving on costs to accuracy, the following are the advantages of using smart contracts:

Pros of smart contracts:

Autonomy

Smart contracts allow you to eliminate the need for third parties, e.g., lawyers, facilitators, guarantors, etc. – granting you full control of the agreement process.

Time-efficient

Smart contracts remove the need for intermediaries and the lengthy processes involved in traditional contracts. Everything is executed in a timely fashion, which avoids delays.

Precision

The code that is the smart contract is written in a detailed manner outlining the obligations, rules, and penalties pertaining to the agreement. As such, the smart contract becomes a comprehensive agreement that accomplishes everything upon execution. This precision helps ensure there can be no room for miscommunication or misinterpretation. And in case of any error, it’s easy to track exactly where it occurred.

Safety

Smart contracts are protected with high-level cryptography, which provides the highest safety standards. It’s extremely difficult to hack smart contracts – so users can be sure their documents are safe and secure. 

Efficient

Owing to their accuracy, security, and time-saving qualities, smart contracts provide a high level of efficiency that helps the parties involved realize more value-generating transactions.

Paperless

Since smart contracts use computer codes, the use of paper is eradicated. This saves on stationery costs and also helps companies reduce their carbon footprint and contribute to environmental protection.

Storage and Backup

Smart contracts are accurate to the tiniest of details. All the details of any transaction are stored on a public ledger, and any of the signees can access them at any time. And in case of any dispute regarding the terms of agreement, the parties can refer to the public ledger.

Saves money

As smart contracts only involve the signatories to the agreement, there’s no need for intermediaries and third parties like lawyers, witnesses, etc. Thus, the money that would have been used to pay these third parties is removed from the equation.

Trust

The properties of transparency, autonomy, and security of smart contracts generate confidence in their execution. They eliminate any chance for manipulation, bias, or manual errors. Also, their undeniable nature significantly removes the need for litigations since every detail is clear on the blockchain.

Speed

Smart contracts run on computer codes and exist on the internet. There is no need to process or verify documents manually or correct every little detail. As a result, they can complete transactions very fast. 

Cons of Smart Contracts:

Smart contracts also have their own share of challenges. Most of these challenges arise from the fact that they are still an evolving technology. Some of the challenges are:

They Are Vulnerable

Smart contracts are still a young technology. For example, the code that makes up the contract has to be perfect and bug-free. However, mistakes can still be made that would allow bugs into the network – which would be exploited by scammers.

Government Regulation

The novelty of smart contract technology leaves a lot of questions unanswered. How will governments regulate these contracts? How will they be taxed? What happens when the contract can’t get to the subject of agreement?

Immutability

The unchangeable nature of smart contracts can be advantageous in some situations, but not so much in others. For instance, hackers made away with millions of ether (ETH) after they hacked a decentralized autonomous organization (DAO) in 2016. This was possible partly because developers were unable to fix the code. This is what eventually led a hard fork that gave rise to a second Ethereum chain – Ethereum Classic. Had it been possible to fix the code, this situation would have been mitigated.

Uncertain Legal Status 

Smart contracts do not fit into the current legal framework in many countries. Most contracts today require parties to be at least a certain age and be properly identified. The anonymity and lack of intermediaries make those requirements a challenge.  

Limited Use

For now, smart contracts can only be used to agree on assets of digital value. This poses a challenge when it comes to transacting in real-life assets.  

Examples of Real-life Uses of Smart Contracts

While most governments and the banking establishment have an ambivalent attitude to cryptocurrencies, the technology behind – blockchain, and smart contracts have had a more welcoming reception. Smart contracts are now being implemented across various industries. The following are examples of real-life applications of smart contracts:

Inmusik is a streaming platform that uses smart contracts to decentralize revenues and properly allocate revenues to the rightful contributors. Powered by blockchain technology, the company can facilitate fair and lucrative payouts for artists, collaborators, labels, and also incentivize music listeners by offering rewards to music listeners.

Ascribe is a digital platform that uses smart contracts to facilitate secure ownership of digital work by the rightful artists. The blockchain technology enabling this allows artists to track where their work is published on the web so that they can claim their rightful publication fee.

Tracr is a blockchain-based project that helps improve the diamond industry’s supply chain by monitoring the production and traceability of diamonds, reducing compliance costs, and improving visibility in the chain. It also helps to enhance privacy and security in regards to handling sensitive data in the chain.

Applicature is an agency that uses smart contracts to protect patients’ privacy, reduce healthcare transaction costs, and improve healthcare protocols. Patients have access to a secure and transparent record of their health information, and practitioners get rid of go-betweens and red tape in data conservation and compliance procedures.

The Future of Smart Contracts 

Smart contracts are still an evolving technology. Their future lies in detangling some of the issues that have held smart contracts from achieving mainstream acceptance. Some of these are the question of their legal status, regulation, and the ‘final’ nature of their transactions. 

Still, blockchain enthusiasts see the technology making a significant impact on law, the merchant industry, credit, accounting, etc. It’s possible that we’ll begin seeing smart contract templates – which are legally enforceable smart contracts. We’ll also start seeing accountants utilize smart contracts for real-time auditing as well as the merging of smart contracts into a hybrid of paper and digital content where transactions are verified on the blockchain and corroborated by physical copy.  

Conclusion

Smart contracts have the potential to change how we carry out daily transactions. They can help increase trust, save money, and revolutionize entire industries by introducing more transparency and facilitating accountability. For now, crypto and blockchain enthusiasts are keenly watching smart contract technology evolve further, and if after all, the technology will manage to transcend the current barriers to its full-scale adoption across different facets of businesses and society.

Categories
Crypto Videos

What Happens After An ICO? – Get Rich Quick Or Scam

https://youtu.be/8lGywGdgjLw

What happens after an ICO
Initial coin offerings became an extremely popular subject as people saw the crowdfunding and profit-making potential is brought to the market. Companies create

https://youtu.be/8lGywGdgjLw

What happens after an ICO
Initial coin offerings became an extremely popular subject as people saw the crowdfunding and profit-making potential is brought to the market. Companies create


What happens after an ICO

Initial coin offerings became an extremely popular subject as people saw the crowdfunding and profit-making potential is brought to the market. Companies create an ICO where they sell their tokens in exchange for funds. On the other hand, investors give their funds to the ICO project as they believe that it will solve a certain problem or simply bring a profit. The creation of ICOs meant that companies could finance a project based on just the idea.

ICO stages

ICOs usually have more than one stage. The first one is private and inaccessible to the public in most cases. It is available only to the big investors and companies that are willing to support the project. They get special deals as well as bonuses depending on the support they are willing to provide, and the amount of money they are willing to invest.

The Pre-ICO stage is next in line. In this stage, early investors get a chance to acquire the biggest bonuses available to the public. After that, the regular ICO can be divided into a few stages, with each one giving different bonuses, depending on the time of investing (the earlier, the bigger the bonus), and/or based on the amount invested (which is rarely the case).


ICO caps

Most ICOs have soft and hard caps to measure the funds required for their projects. The soft cap is the minimum amount of investment required to be acquired to even start the project. If the ICO doesn’t manage to get enough starting capital, they shut down the project and return the money to the investors.
Hard cap, on the other hand, is the polar opposite of the soft cap and represents the maximum amount of money an ICO needs. If reached before the offering is finished, the ICO stops as all the required funds are acquired, and no more funds are needed. The best project ideas tend to sell all of their available tokens in a matter of minutes.

ICO aftermath

After a project finishes crowdfunding through an ICO, the second stage of a project starts. The acquired funds are used to pay for project development or improvement (if the project had any form of a product before the ICO), marketing, and branding the idea that the ICO was based on in the first place.
The first move is, in most cases, to list the token on as many exchanges. By doing this, projects quickly enable profit-making from their tokens as the invested funds grow in market value, turning profits for the investors and making them happy, as well as making a profit to the project managers and developers, so they can have more funds to work with.
Buying into an ICO is much like investing in a company through a stock market. The main distinction is that a company that is listed on a stock market is most likely well-developed already, while an ICO represents an investment into an idea.
That idea is described in a whitepaper. When time is added to the equation, we get a roadmap for the project. The roadmap includes the project’s schedule of improvements, public and official launching of the product, and major exchange listings of their coin or token. If the project wants to be successful, they have to keep up with their timeline, or the investors will not be satisfied, therefor reducing the market price of the coin or token they bought.


ICO regulation

Many countries have decided to take a look at ICOs, how they operate, and how they should be regulated after the 2017 ICO craze. Many of the ICOs were just money grabs or scams while others were decent projects with good visions, but unable to deliver on their vision properly.
Even though the whole idea of cryptocurrency is based on decentralization, regulation can be a good thing, especially in the ICO sphere. Some countries, like China and the USA, have made strict regulatory actions towards ICO. However, both of these countries are now easing up on regulation and trying to come up with a solution on how to utilize ICOs.

KYC – know your customer

KYC laws were introduced in 2001 in the USA as part of the Patriot Act, which was passed after 9/11 to provide a variety of means to deter terrorist behavior. The section of the Act that pertained specifically to financial transactions added requirements and enforcement policies to the Bank Secrecy Act of 1970 that had thus far regulated banks and other institutions.
There are many fully legal reasons to invest in an ICO, ranging from belief in the utility of a new piece of cryptocurrency infrastructure to speculation on a coin’s rising value. Outside of these legal motivations, there are also illegal practices such as laundering fiat currency through ICO projects. Unfortunately, the ongoing lack of regulatory clarity and regulation means that people who wish to invest in a project for its intrinsic utility to disrupt established industries for the better feel they risk being treated as money launderers.
This is why the KYC system is what all of the ICO investors usually have to go through to be able to invest in an ICO. KYC is completed by submitting your information (name, address, country of origin) and then providing one or more documents to prove the information provided.

Final word

Investing in ICOs can be highly lucrative, but only if the investment is well thought out, and the project is successful. Much time has to pass until an ICO proves its worth, so investors need to have a lot of patience. The roadmap is the holy grail of investors and should be considered as such by the developers, too, for the sheer positive thinking in the times of waiting for the project to come to life.

Categories
Crypto Daily Topic

Bitcoin’s Thirst for Power: Why it Uses a Quarter Percent of the World’s Electricity?

If you thought the report by Nature.com a few days ago that it takes more energy to mine Bitcoin than mining gold of similar value was the most surprising thing

If you thought the report by Nature.com a few days ago that it takes more energy to mine Bitcoin than mining gold of similar value was the most surprising thing

If you thought the report by Nature.com a few days ago that it takes more energy to mine Bitcoin than mining gold of similar value was the most surprising thing you read about Bitcoin this week, you’re in for another surprise!

The amount of power Bitcoin mining consumes has been a growing concern over the years, but it has reached a point where it is plainly alarming. Today, it is estimated that Bitcoin consumes as much as a quarter percent of the world’s electricity supply, according to a tweet posted by James Todaro, the Managing Partner at Blocktown Capital and Columbia University Alumni.

James points out that humanity is justified to devote such a significant amount of resources to an asset because of how important it is to our future. If anything, he implies, Bitcoin as a technology asset is here to stay, and such assets as rat poison, tulips, beanie babies, and others that have already disappeared cannot be compared with Bitcoin.

Why Bitcoin is so power-hungry

You already know that Bitcoin runs on a blockchain network. You probably also know that at the core of its network is the Proof-of-Work consensus, a protocol that requires work in terms of data processing by a computer that takes time in order to validate blocks. Miners, a term that refers to the owners of computers that do the processing work, are rewarded with a certain amount of Bitcoins for every block validated.

Bitcoin’s Proof-of-Work consensus verifies the legitimacy of each block of blockchain transactions added to the chain using complex mathematical processes that uses the computer’s processing capabilities. In the early days of Bitcoin, mining was an easier process that required very little processing power. This is why anyone with a half-decent computer could use it to mine the coins back in the day.

With time, as the Bitcoin network scaled and grew in size, it demanded more processing power to validate blocks of transactions. This meant that the more powerful computers aptly known as ‘rigs’ had to enter the mining scene to meet the platform’s thirst for processing power. Mining Bitcoin became expensive because these powerful machines are not only expensive to acquire, but also use up a lot of electricity. It requires tremendous processing power to validate blocks of transactions in the shortest time possible.

How much power is 0.25% of the global supply?

Current statistics on the Digiconomist Bitcoin Energy Consumption Index show that Bitcoin mining uses as much as 79.79 terawatt-hours (TWh) of electricity annually, which is comparable to the amount of power consumed by Belgium estimated to be 82.1 TWh and higher than that of the Philippines which stands at 78.3 TWh annually.

Going by Digiconomist estimates, the amount of power the Bitcoin network gobbles up is in the upwards of $3.66 billion, but it generates revenue estimated to be $5.72 billion, a cost percentage of 63.9%. This is a lot of investment in a single asset, especially since the global adoption of the Bitcoin is still relatively low. While more people are appreciating and embracing cryptocurrency, and in particular Bitcoin, the uptake is generally gradual. It is estimated that it may take as long as 24 years for half of the global population to start using Bitcoin for regular payments.

While these figures may look scary, it is important to note that the Bitcoin technology platform has merit and is expected to ultimately grow to become the world’s primary form of payment. Considering that Television, the world’s most power-hungry electronic device now used in most households, uses as much as 8% of the total global electricity, Bitcoin’s 0.25% is not a figure to worry about at this point.

Effects on the environment

Bitcoin mining uses electricity that is not always harvested from renewable sources. If the figures on the Digiconomist’s Bitcoin Energy Consumption Index are anything to go by, the Bitcoin mining industry has a carbon footprint of 34.73 metric tonnes (MT) of carbon dioxide (CO2), a figure comparable to the carbon footprint of Denmark. It also produces as much as 10.62-kilo tonnes (KT) of electronic waste that is made up of discarded electronic devices that rarely ever make it back to recyclers.

In many ways, Bitcoin is like gold. It cannot be arbitrarily created, and its supply is limited. It was easy for the Nature magazine to compare Bitcoin mining to gold mining, not just because of the amount of resources it requires, but also because it takes increasingly greater effort as more of it is mined. Since the supply of Bitcoin is limited to 21 million, it will get to a point when miners will have unlocked all the available supply, unless its original protocol is altered to allow for more.

Presently, about 18 million Bitcoins have been mined, leaving just under 3 million left to be mined. It will cost more in terms of electricity consumption to mine the remaining quantity compared to what has already been mined. As such, it is expected that Bitcoin mining rigs will continue to demand more power until the last coin is mined sometime in the year 2140 if the bitcoin network protocol remains unchanged between now and then.

Conclusion

In 2015, Adam Hayes published a paper titled “A Cost of Production Model for Bitcoin,” in which he compares the production of Bitcoin to a competitive market where the miners “produce until their marginal costs equal their marginal product.” Since the marginal costs, in this case, is electricity costs (once the initial costs of equipment and infrastructure have been settled), he concludes that the costs of electricity will determine the future of Bitcoin mining.

It is expected that within a few months to years, Bitcoin will need as much as 1% or more of the total global electricity supply. However, all this will happen only if the energy does not become prohibitively expensive as to cost more than the miners will earn from the Bitcoins they mine.

Categories
Crypto Guides

Consensus & Its Importance In Any Existing Cryptocurrency

Introduction
In most of our previous articles, we have discussed a lot of topics regarding cryptocurrencies. We now know the properties of cryptos, advantages, and their fundamental purpose. In this

Introduction
In most of our previous articles, we have discussed a lot of topics regarding cryptocurrencies. We now know the properties of cryptos, advantages, and their fundamental purpose. In this

Introduction

In most of our previous articles, we have discussed a lot of topics regarding cryptocurrencies. We now know the properties of cryptos, advantages, and their fundamental purpose. In this article, let’s discuss the concept of consensus and why it is essential for the existence of any cryptocurrency.

The consensus algorithm plays a vital role in validating the transactions of any crypto network. One of the crucial reasons for the success of cryptos is its ability to handle the problem of double-spending adequately. And this also an important reason for the failure of digital currencies before Bitcoin; they weren’t able to solve the problem of double-spending. So let’s see what this problem is about.

Double Spending

Double spending is a fraud where the same money is promised for two different transactions but is spent on making only one transaction in real. This is a significant problem for digital currencies because the entire system is decentralized, and there is no entity confirming the authenticity of the transactions. The cryptos after Bitcoin alleviate this problem by waiting for the confirmation of the payments. During this wait time (which is very minimal in general), the transactions are validated by the users present in the blockchain network using the ‘consensus’ algorithms.

The consensus here is nothing but a mutual agreement within all the partiers that are present in a cryptocurrency network. The majority of the validators must approve the transactions, and this is made possible by the consensus algorithm. Also, because of this protocol, a crypto network cannot be controlled by a single person or a group of people. Now, let’s look at two of the most important and equally reliable consensus mechanisms – Proof of Work & Proof of Stake.

Proof of Work (POW)

Proof of Work is used by Bitcoin blockchain. This consensus algorithm proposes a mathematical problem for the miners in the network. To solve this challenge, high power computing devices are used, and thereby a lot of electricity is consumed. The first one to solve the problem gets to validate the transactions and communicate the same to all the other miners in the network through gossip protocol. Then all the other miners verify the transactions and seal them in a block.

The crux here is this. To solve this challenge, the miner uses a considerable amount of power and hardware, which is a costly process. Hence, one would be honest enough to not validate faulty transactions as a lot of stake from the user side is already expended. This is how POW makes the miners be reliable and run the blockchain efficiently. They are rewarded with the in-house cryptos for doing this work. Though the POW consensus algorithm is the most efficient one out there, it is the costliest of all the consensus algorithms and not eco-friendly, which is the need of the hour.

Proof of Stake (POS)

In this consensus protocol, the participants who want to be the validators must stake some of the native cryptocurrency in a virtual safe for a specified period. The network randomly picks the validators based on certain methods. The two most used methods are ‘Randomized Block Selection’ and ‘Coin Age Selection.’ In Randomized block selection, the validator is chosen based on the highest stake and lowest hash value. While in the Coin Age Selection, the validators are picked based on the duration of the native currency staked in the virtual safe. Dash and Peer coin are examples of cryptos that use POS.

Why is POS more reliable than POW? 

POS algorithm uses considerably less energy compared to POW. Hence, the process is less expensive, and most importantly, it is eco-friendly. Also, the POS protocol fulfills the fundamental property of blockchain as it serves the purpose of complete decentralization. This is not the case in POW because currently, there are large mining pools who mine cryptos (Bitcoins, for example) and get the maximum reward. But that’s not possible in POS, making them truly decentralized.

Conclusion

Apart from these two, there are other major consensuses like Delegated Proof of Stake (DPOS), Proof of Burn (PoB), Proof of Elapsed Time (PoET), and Proof of Activity (PoA). These protocols are gaining momentum because of their efficiency and eco-friendly nature. However, a lot of research is still happening to develop more efficient and cost-effective consensuses. We hope you find this article worthful. Let us know if you have any questions in the comments below.

Categories
Cryptocurrencies

The ultimate guide to cryptocurrency mining

So, can you still make enough money out of crypto mining in 2019? This simple guide tells you everything you need to know about cryptocurrency mining. And acts as the

So, can you still make enough money out of crypto mining in 2019? This simple guide tells you everything you need to know about cryptocurrency mining. And acts as the

So, can you still make enough money out of crypto mining in 2019? This simple guide tells you everything you need to know about cryptocurrency mining. And acts as the perfect launchpad to a successful crypto mining career.

The concept of cryptocurrency mining is often baffling to people outside cryptoverse and even to some inside it. Cryptocurrency mining, a.k.a crypto mining, is the process by which transactions between cryptocurrency users are verified and added on to the long list in the public blockchain ledger. The same process also introduces new coins into the circulating supply of a particular cryptocurrency.

Cryptomining is achieved via the use of specialized computers. Technically, anyone with a computer and internet can mine cryptocurrency. The only problem in actual success with crypto mining depends on several factors, such as which crypto you’re mining, how powerful your computer is, and the cost of electricity where you live. (More on that later). Depending on all these factors, crypto mining may be more expensive – both financially and time-wise – than anything you’re gaining from it.

Who Are Cryptocurrency Miners? 

Cryptominers are sometimes called the backbone of many cryptocurrency networks. And they’re worthy of this title because they are the ones responsible for issuing new crypto coins, validating transactions, and ensuring the security of blockchain networks.   

Bitcoin miners use specialized computers known as application-specific integrated circuits (ASICs), which are designed for the sole purpose of mining cryptocurrency. ASIC miners are usually designed to mine a specific cryptocurrency. This means a Bitcoin ASIC miner can only mine bitcoin. A Litecoin ASIC miner can only mine Litecoin, and so on. 

As cryptocurrency has increased in value, so have more cryptominers jumped into the bandwagon. As such, crypto mining has become so competitive that it’s no longer profitable to mine alone. Today, most cryptocurrency mining is done by “mining pools” in warehouses that have low-cost electric power. 

Mining pools are made of a group of miners who agree to share block rewards in proportion to the amount of work that each contributed to finding a new block (a block is essentially a collection of unconfirmed transactions plus a set of data about those transactions) 

What Is Hash Rate? 

Hash power, or hash rate, is the measure of the processing power of a mining computer. The higher the hash rate, the faster the next block on the blockchain network is found. The creator of the first cryptocurrency – Satoshi Nakamoto – intended for Bitcoin to be mined via computer CPUs. However, innovative programmers soon discovered they could derive more hashing power from graphic cards and wrote mining software to facilitate this. 

Graphic cards were then surpassed by Field Programmable Gate Arrays (FPGAs), which were soon phased out by ASICs, which packed inordinately more hashing and staying power. Nowadays, all serious crypto mining is done with ASICs, usually in low-cost electricity areas and in thermally-regulated areas. (Data mining centers are thermally regulated because the power ASICs consumes ends up as so much heat.)

What Is The Purpose Of Mining And How Does It Work? 

Cryptocurrency mining is actually another term to refer to a type of validation model known as proof of work (PoW). Different cryptocurrencies utilize different validation models to facilitate their release into circulation. Apart from proof of work, the other more common validation model is proof of stake, which uses a random selection of stakeholders (coin holders) as transaction validators. 

However, in PoW – which is used by cryptos such as Bitcoin, Bitcoin Cash, Litecoin, and others, miners compete with each other to solve computational puzzles to solve the next block. 

So, what is the point of mining at all? Mining is central to cryptocurrencies that rely on PoW TO keep the network functional. There are many intricacies involved with mining, but it has three most important functions which are as follows: 

It issues new coins into circulation.

Unlike fiat currency, which can be issued by the central bank at any time, mining is what facilitates the entry of new crypto coins into circulation. The issuance of new coins is set in the cryptocurrency code, so miners cannot manipulate the system or create new coins out of thin air. 

It validates transactions on the network 

When transactions are sent on the blockchain network, miners include these transactions in their blocks. A transaction is only considered secure and complete once it’s recorded on the blockchain – because that’s when it’s added on the public blockchain.

It secures the blockchain network 

Miners keep the blockchain network secure from attacks. The more miners are on the network, the more secure the network is. The only way to sabotage a blockchain network is for one miner to have more than 51% of the network’s hash power, which is near impossible with the many different miners working on the network across the globe.

How Miners Make Money and Block Rewards

Block rewards refer to the crypto coins that are awarded by a blockchain network to block miners each time they mine a block successfully. These rewards are issued by cryptocurrencies that use the proof of work consensus mechanism. Most miners channel these rewards back to the ecosystem to fuel their mining costs while keeping the rest.

Bitcoin – the first cryptocurrency and the pioneer of cryptocurrency, currently rewards miners with 12.5 BTC for each mined block. In the beginning, miners were rewarded with 50 BTC. Satoshi Nakamoto, the creator(s) of Bitcoin, embedded “halving” – or what’s colloquially referred to as “halvening” in cryptoverse, into the system so that the block reward is slashed into two after every 210,000 blocks have been mined. Bitcoin’s halvening happens after about every four years. 

Another example is Litecoin, which also halves its mining rewards. Litecoin’s halving occurs after every 840,000 blocks. As of November 2019, the block reward for the cryptocurrency is 12.5, having been halved from 25 in August.

The question that bugs many in cryptosphere is this: what happens after these cryptocurrencies’ coins, and others that rely on mining, are all mined? How will miners be rewarded? Well, besides block rewards, these crypto’s protocols have also provided transaction fees as a means of reward. The transaction fees will shoot up once the maximum supply is achieved – in response to increased demand. Thus, new coins may no longer enter into circulation, but miners will still have a payday. 

Cryptocurrency Mining Step By Step

When a transaction is made on the blockchain, e.g., a user sending bitcoin to another user’s address, the transaction must be recorded – that is, the information must be indicated on a new block

  • This block must be secured and encrypted so that it cannot be reversed or modified, and is up for grabs for all miners on the network 
  • To encrypt the block, miners must find the solution to a computational puzzle through trial and error method in a race to find the proper cryptographic hash for the block. 
  • Once a miner finds a new block, it’s verified by other computers in the network in a process known as consensus and then added on the blockchain.
  • If a miner has successfully mined, verified, and secured the block, they are awarded newly created coins.

The Downsides to Cryptomining

Though mining is the lifeblood of certain cryptocurrencies, it comes with its own share of challenges. Some of these are as below: 

Complexity: Cryptomining is not for the uninitiated. Even people with a pretty good grasp of cryptocurrencies and blockchains might find themselves befuddled in the first few days. What’s more, you’ll need to assemble a range of equipment such as a customized mining computer, an ASIC chip, cooling equipment, and so on. 

On top of that, you’ll need to read a lot, keep abreast of what’s happening in the crypto world, and be prepared to make mistakes once in a while.  

Electricity Costs – Mining can prove quite expensive, mainly because it consumes a lot of electricity. The ASIC computers and the massive servers involved usually rake up enormous power bills. Bitcoin mining is especially electricity-intensive – so much that it has raised questions from ecologists who argue that it’s becoming a threat to the environment. 

Current estimates show that the current global power consumption by Bitcoin mining is a minimum of 22 terawatt-hours per year – which is almost the same as the annual power consumption by Ireland. 

Hardware Costs – Mining farms need to spend a lot of money to purchase stronger equipment every other few months as the prior equipment becomes obsolete due to increased mining competition. The cooling systems further add up to the hardware costs. 

Vulnerability: The proof of work model is vulnerable to an individual or an entity gaining control of 51% of the network’s computing power. If this were to happen, it would essentially hold the network hostage. The more dominant mined cryptocurrencies like Bitcoin, Litecoin, Bitcoin, and Monero are safe from this nature of attacks. However, smaller cryptocurrencies that require longer block processing durations and have weaker daily volumes could fall prey easily. 

Conclusion

The concept of cryptocurrency mining is fun, as it can be confusing. This guide should lift part of the mystery surrounding the concept. It has been interesting to see the evolution of crypto mining – from being able to mine from the comfort of your home on your PC to dedicated warehouses solely for mining. The innovation of ideas that have gone into the space is also exciting, and we can only wait to see what more the enterprising mining community comes up with in the future.   

 

 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 18 – Wyoming banking with cryptocurrency, Venezuela paying Christmas bonus in Petro

The cryptocurrency market had an interesting weekend. Most cryptocurrencies had a price spike at the start of the weekend, followed by a sharp decline after it. If we take a

The cryptocurrency market had an interesting weekend. Most cryptocurrencies had a price spike at the start of the weekend, followed by a sharp decline after it. If we take a

The cryptocurrency market had an interesting weekend. Most cryptocurrencies had a price spike at the start of the weekend, followed by a sharp decline after it. If we take a look at the past 24 hours, Bitcoin went down 0.47%, and it is now trading at $8,440. Ethereum gained 0.67%, while XRP went down 0.39%.

Of the top100 cryptocurrencies by market cap, the biggest gainer is Dx Chain Token, with 18.17% daily gain. The biggest loser of the day was Aurora, which lost 8.91% of its value.

Bitcoin’s dominance remained at the same place from the last time we checked the markets. Its dominance now sits at 65.72%.

The cryptocurrency market as a whole now has a market capitalization of $233.84 billion, which represents a slight decrease when compared to the value it had before the weekend.

What happened in the past 24 hours

Wyoming passed legislation that authorized charters for Special Purpose Depository Institutions (or SPDI banks), the first-of-their-kind commercial-grade bank that allows companies dealing in cryptocurrencies to conduct its business in the same manner as any other non-cryptocurrency company would.

In other news, Venezuelan President Nicholas Maduro announced that the retirees and pensioners will receive their Christmas bonus in the form of the newly-created national cryptocurrency Petro.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin had a turbulent weekend. As the weekend started, its price tried to overcome the $8,820 level but failed. It passed $8,640 to the downside as a response to the lack of bull power. This move paints a very unclear picture of the future Bitcoin movements as there are no clear-set support lines that the price can anchor to.


Bitcoin’s volume is even lower than before the weekend, with RSI heading towards the oversold territory. Key levels have not changed, as there have been no significant price movements.

Key levels to the upside                   Key levels to the downside

1: $8,640                                           1: $8,425

2: $8,820

3: $9,120                                         

Ethereum

Ethereum broke the range it was trading at before the weekend started. As the price fell below the $185 line, it found new support at $178.6. The price tested the newfound support at one point during the weekend, but the bulls quickly reacted and brought Ethereum above it. Ethereum is currently retesting the resistance level of $185.


Key levels to the upside                   Key levels to the downside

1: $185                                              1: $178.6

2: $193.5                                           2: $167.8

3: $198

XRP

XRP is, similar to Bitcoin, stuck in a price limbo. As it fell below its major support of $0.266, it had no clear support lines to anchor to. With the first major key support level being $0.245, XRP is now roaming freely between this level and the $0.266 level, which now became resistance. At one point during the weekend, XRP attempted to break the resistance level to the upside, but failed and tumbled down from 0.266 to the current $0.26.


The key levels remain the same as they were before the weekend as XRP didn’t pass any key levels up or down.

Key levels to the upside                   Key levels to the downside

1: $0.266                                           1: $0.245

2: $0.285

3: $0.31

Categories
Crypto Daily Topic

Ethereum 2.0: Ethereum’s new dawn

Ethereum, the world’s most popular blockchain platform for decentralized applications, is undergoing a revolution, and it promises to be BIG!

If you are savvy with the developments in the tech

Ethereum, the world’s most popular blockchain platform for decentralized applications, is undergoing a revolution, and it promises to be BIG!

If you are savvy with the developments in the tech

Ethereum, the world’s most popular blockchain platform for decentralized applications, is undergoing a revolution, and it promises to be BIG!

If you are savvy with the developments in the tech world, then you probably already know what Ethereum is and why Ethereum 2.0 is a big deal. If you don’t, Ethereum is a blockchain platform proposed in 2013 by Vitalik Buterin, the then young student at the University of Waterloo, to support application development as well as generalized scripting language.

Over the course of two years, Vitalik, together with seven other developers, created Ethereum as a robust smart contract platform on which anyone can develop and run decentralized applications. The project went live in 2015 and has generally fulfilled its promise to become a global decentralized computer on which anyone can run their code at a small fee.

Fast forward four years, and the platform is getting ready for its biggest upgrade leap since it was first rolled out. Ethereum 2.0 has been discussed since mid-2018, and the first phase is expected to be rolled out at the end of 2019. But before going to the details of the upgrade, let’s first review the current position of the Ethereum platform.

Understanding Ethereum

The first stable version of Ethereum, ‘Homestead,’ was released in March 2016. Like Bitcoin, Ethereum is essentially a distributed public ledger but with some significant differences in purpose and capability. While Bitcoin’s major and only blockchain application is of peer-to-peer electronic cash payments system online, the Ethereum blockchain platform is focused on running the programming code of third-party developers published on the platform.

Miners on the Ethereum blockchain earn Ether/ This is a form of cryptocurrency tokens that essentially fuels the network. Other than being a tradeable crypto, Ether is also used by developers on the network to pay for services and transaction fees. 

Just like the Bitcoin network, Ethereum uses a Proof of Work (PoW) consensus system.  In this system, a participant node in the network is required to submit proof that they have done some work in order to receive the rights to new transactions to the blockchain. The ‘work’ in PoW protocol refers to the computer processing time and effort that often uses power. As a result, PoW is not only hard but also expensive.

The switch from Proof-of-Work to Proof-of-Stake

The biggest change in the upgrade of Ethereum from 1.0 to 2.0 is the switch from the work-based PoW to stake-based PoS. PoS (Proof of Stake) is a low-cost, low-energy type of consensus that involves the allocation of responsibility of maintaining the blockchain ledger to a participant node based on their proportion of the virtual currency they hold. With PoW, getting the right answer is easy, but getting the wrong answer is expensive. PoW rewards the miner for finding the right answer while PoS punishes the miner for getting the wrong answer.

The switch from PoW to PoS will not only make Ethereum a more secure platform, but it will also improve its scalability. The new consensus will be less susceptible to the 51% attack, which happens when a miner or miners in a pool take control of more than half of the network’s computational power. With such an ability, malicious attackers will have the power to invalidate even valid transactions and even approve the double-spending of cryptocurrency.

Ethereum is planning a hard fork by the end of 2019 to switch from the current PoW to PoS. The switch will be implemented in three phases to minimize the risks that such development brings.

Phase 0 (Beacon Chain): The Beacon Chain will be a proof-of-stake chain that will be implemented to run parallel to the current proof-of-work chain. In the beginning, the new chain is designed for simplicity and will not support accounts or smart contracts.

Phase 1 (Basic Sharding): Sharding will divide the network across multiple shards to enable the network to process the many transactions on the network concurrently. This is necessary to help transactions to scale.

Phase 2 (eWasm): eWasm is the new rebuilt Ethereum Virtual Machine. It will fully support the proof-of-stake consensus as well as sharding. This phase will introduce accounts and smart contracts to Ethereum 2.0.

Sharding will help Ethereum to scale by partitioning the network’s database into smaller and faster pieces called shards. Each of these shards will have a chain of transactions, and accounts on the network will be assigned to a shard. They will then be able to seamlessly transact with other accounts within and outside the shard.

The planned rollout of the Ethereum 2.0 will be implemented in phases to test every element of the network in a safe environment to uphold the integrity and security of the system. 

Design Goals of Ethereum 2.0

Ethereum 2.0 was developed with five core design goals.

  1. Simplicity: The platform will be less complex compared to the current network. However, this will be at the cost of some network efficiency.
  2. Resilience: The network will stay live even when undergoing major partitions or when large portions of network nodes go offline.
  3. Longevity: All components of the network will be quantum secure. Those that are not will be easily and safely replaced with quantum secure ones when available.
  4. Security: Ethereum 2.0 uses cryptographic and design techniques that facilitate greater participation of validators per unit time.
  5. Decentralization: The network will allow for a typical consumer laptop with O(C) resources to validate (process) O(1)  shards (this includes system-level validation).

What the rollout of Ethereum 2.0 means

Vitalik shared a broken-down overview of what network users should expect during and after the transition from Ethereum 1.0 to Ethereum 2.0. Here is a summary of what you should expect:

☑️ It may be possible to move ETH from the new to the old network for a short time.

Since it may take a couple of years for the new PoS platform to be fully merged with the older PoW platform, users may be able to move their crypto back and forth within this time. However, during the transition period, the transfer of ETH between the old and new chains will be disabled largely due to the complexities involved in creating a two-way bridge between the two chains.

☑️ A complete transition from Ethereum 1.0 to Ethereum 2.0 is expected by Jan 03, 2020.

The switch from PoW-based to PoS-based consensus will be officially launched on December 4th, 2019 and is expected to take a month. To avoid any hiccups, all developers, stakeholders, and major Ethereum clients are expected to have completed the transition during the switchover month.

☑️ You need to have 32 ETH to be a master node

To be eligible to stake or perform the functions of a master node, you would need to own 32 ETH on the network. The new economic model of the Ethereum network suggests that validators will be able to earn between 4.6% and 10.3% in annual returns. You can use the ETH 2.0 Calculator available on the Telegram app to estimate net returns based on the adjusted dynamic rewards scale.

☑️ It will be more expensive to recall data on the Ethereum blockchain

If you are a DApp developer, recalling and accessing data on Ethereum 2.0 will incur increased transaction costs. This is because of the changes in how the Ethereum state (the full account of transactions) is stored on the PoS network. However, there are ways in which developers can minimize these costs.

☑️ Ethereum will no longer be able to execute transactions atomically

The upgrade will break the ability for Ethereum transactions to occur all at once. To developers, this means it will no longer be possible to execute transactions between two or more applications such that when they fail, they can recover the entire series of transactions. Ethereum 2.0 will break up transaction loads into different shards, unlike the current network, which has all the dapps on one shared chain.

Ethereum 1.0 has the capacity to process roughly 25 transactions per second (TPS). The old PoW consensus clearly is not capable of taking the blockchain platform mainstream. For comparison, Visa has the capacity to process 24,000 transactions per second.

During the transition period, Ethereum 2.0 is expected to be capable of only half the total speed of transaction processing speed of 1,024 shards. Depending on the number of shard chains and the shard block sizes, this can translate to as much as 15,000 transactions per second. This limit is put in place to enable simpler and faster communication between shards in the early stages of Ethereum 2.0.

Ethereum 2.0, even after launch, will remain a work-in-progress. The hard fork will be a major leap in the lifetime of the network, and while it is expected to go smoothly, there is always a risk in implementing something new. As such, users and stakeholders are advised to stay updated on the upgrade.

Categories
Crypto Videos

Trading Stocks & Forex vs Trading Cryptocurrencies – what Is Best For The Every Day Trader

https://youtu.be/8ilLmV6_7mY

 
Trading stocks and FOREX vs. trading cryptocurrencies
Many people are wondering if trading cryptocurrencies can match trading stocks or FOREX in terms of profit potential. Many factors

https://youtu.be/8ilLmV6_7mY

 
Trading stocks and FOREX vs. trading cryptocurrencies
Many people are wondering if trading cryptocurrencies can match trading stocks or FOREX in terms of profit potential. Many factors

 

Trading stocks and FOREX vs. trading cryptocurrencies

Many people are wondering if trading cryptocurrencies can match trading stocks or FOREX in terms of profit potential. Many factors affect traders’ choice on which market to trade. Whether it is the liquidity of the market, volatility, or simply the ease of access to the profit-making trade, everything, and anything can influence that decision. We can certainly point out a few factors that differentiate stocks or FOREX to cryptocurrency trading.

Ease of access

When it comes to trading, the ability to start the process fast and without any issues should be a priority. When it comes to stocks and FOREX trading, trading software is expensive and requires a lot of paperwork and time. It is also demanding in terms of computer performance. On the other hand, cryptocurrency exchanges and trading platforms offer a quick and painless registration process as well as the ability to trade from any device in most cases.


Stockbrokers also have a day-trading rule, which requires accounts to have more than $25,000 balance in order to day trade. This rule is called “pattern day trading rule” and is created by FINRA (Financial industry regulatory authority) to stop people from day trading stocks with no intention of supporting the companies or investing into their stocks for the longer term. This makes the barrier to enter the “playing field” when it comes to trading stocks much higher.

Volatility

Volatility is the single most important indicator when deciding whether something is tradable or not. It signifies the price oscillation of the tradable asset. The more volatile the asset is, the more profit potential it has. It is safe to say that cryptocurrencies are far more volatile than stocks or FOREX, and still have enough volume for traders to avoid any form of slippage. Markets like FOREX or the big stock indexes are safer, but also much slower.
We can compare the NYSE FANG+ index, which consists of the biggest tech companies: Facebook, Amazon, Netflix, Google, Alibaba, Baidu, Nvidia, Tesla, and Twitter. This stock index has returned a total of 21.65% annualized total return, starting from September 19, 2014, until October 31, 2019. It has outperformed the NASDAQ-100 index and S&P500 index by a large margin. Still, when compared to the return Bitcoin has made from September of 2014, it is not even close.


Market liquidity and market depth

Bitcoin and the cryptocurrency market have a decent market size, but not close to anything like FOREX. FOREX is by far the biggest tradable market in the world. It trades 5.3 trillion dollars each day. However, even though the cryptocurrency market is a lot smaller, it has no liquidity issues. Both markets are liquid, and the market depth is good enough, so the traders do not have to worry about their orders not being filled, or any form of slippage. As far as liquidity goes, any market liquidity that does not allow for slippage and sudden non-fluid jumps in price are good enough for trading.

Institutional involvement

Institutions are trading every form of asset and commodity they can earn money on. However, the cryptocurrency market is still young and fairly free of institutional manipulation. There is no denying that institutions manipulate the order books and use the latest software and the best technology to create a trading “edge.” This makes trading traditional assets extremely hard. FOREX is especially filled with algorithmic robot-trading and market manipulation (to a degree), which destroys all profit potential traders should have. According to data gathered by Morton Glantz and Robert Kissell, the percentage of algorithmic trading in FOREX is ranging from 85% to 90%. On the other hand, algorithmic trading in cryptocurrencies is minuscule compared to the numbers FOREX shows. Competing with machines that are analyzing as well as entering/exiting positions faster than any human can be extremely hard.


Regulation

When compared to FOREX and stock trading, cryptocurrency markets are less regulated. This gives many platforms a chance to rise and try to offer the best options for the traders, as it is much easier to create a cryptocurrency trading platform than a FOREX brokerage firm. However, quantity does not mean quality. Only a few exchanges are offering innovative and good options to their customers. Most trading platforms offer crypto traders 100x leverage on their traders, among other options, making it much easier to start with less money and profit more from small movements in price.

Uptime

Quite simply, cryptocurrency trading is available every minute, hour, and every day. There is no downtime, not even for holidays. FOREX markets, on the other hand, are not tradable on weekends, while stock markets have trading hours each day. Why should a trader lose two trading days a week in case of FOREX, or even more when it comes to stocks? Most retail traders are trading only part-time, and this gives them the option to be more involved in trading, as the markets are available and tradable at all times.

Conclusion

Every trader needs to decide how much risk he or she can handle. Trading cryptocurrencies is a bit riskier but brings massive profit potential. On the other hand, investing in stock indexes or FOREX can bring constant minute profits over a longer period.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 14 – Markets slightly down, NEO still gaining in value

The cryptocurrency market was in a slight red, though many cryptocurrencies gained some value. While most of the cryptos are losing value in the 1%-2% range, quite a lot of

The cryptocurrency market was in a slight red, though many cryptocurrencies gained some value. While most of the cryptos are losing value in the 1%-2% range, quite a lot of

The cryptocurrency market was in a slight red, though many cryptocurrencies gained some value. While most of the cryptos are losing value in the 1%-2% range, quite a lot of gainers increased in price 5%-6%. If we take a look at the past 24 hours, Bitcoin went down 0.69%, and it is now trading at $8,688. Ethereum gained 0.28%, while XRP went down 1.59%.

Of the top100 cryptocurrencies by market cap, the biggest gainer is Noah Coin, with 328.96% daily gain. The biggest loser of the day was Aurora, which lost 30.53% of its value.

Bitcoin’s dominance remained at the same place from the last time we checked the markets. Its dominance now sits at 65.9%, which is a decrease of 0.02% from yesterday’s value.

The cryptocurrency market as a whole now has a market capitalization of $239.7 billion, which represents a decrease of $0.5 billion from yesterday’s value.

What happened in the past 24 hours

There was no big fundamental news that could spark up any moves to the upside or downside in the past 24 hours. As a result of that, the markets kept consolidating, and the price of most cryptocurrencies didn’t move.

However, a more bearish outlook on the cryptocurrency market resulted in most cryptocurrencies being in the red. That being said, bullish news coming from the east are still strong and cryptocurrencies like NEO are having no problem defying the markets.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

When compared to yesterday’s values, Bitcoin’s price is slightly lower. It is now right above the $8,640 support line, which actually got tested a couple of times. Each time it got tested, the bulls rallied and managed to keep the price above it. There were no attempts at breaking 8,820 yet.


Bitcoin’s volume is lower than yesterday, with RSI approaching oversold territory. The key levels remained the same.

Key levels to the upside                   Key levels to the downside

1: $8,820                                           1: $8,640

2: $9,120

3: $9,250                                            

Ethereum

Unlike Bitcoin, Ethereum was in a slight green if we compare the price to the one from the past 24 hours. Its price is still contained within a range between the resistance line of $193.5 and a support line of $185. Ethereum had a great day for the majority of the day, having one green candle after another. However, the price suddenly dropped to the support line, which is when the bulls rallied.


The key levels remain the same as Ethereum is back in the same position as it was yesterday.

Key levels to the upside                   Key levels to the downside

1: $193.5                                          1: $185

2: $198                                             2: $178.6

3: $163.5                                          3: $167.8

XRP

XRP did not have a good day. Even though its price is contained between the support level of $0.266 and resistance standing at $0.285, it managed to drop in value quite a bit. As the range between its key support and key resistance levels is bigger than with Bitcoin’s current support-resistance distance, the price’s ability to move is somewhat bigger. Still, there was almost no movement in the past 24 hours. The $0.266 line did not get tested, but we can see that bulls are already standing still near that price line.


XRP’s volume is still slightly elevated, while its RSI value is approaching oversold levels.

Key levels to the upside                   Key levels to the downside

1: $0.285                                           1: $0.266 (major support)

2: $0.31                                             2: $0.245

3: $0.325

Categories
Crypto Videos

The Complete Guide To Binance DEX – Crypto Master

https://youtu.be/nR68RoM5pm4

 
Binance DEX guide
Binance has released a decentralized exchange in addition to its traditional one. The Binance DEX is now running on the testnet. Binance wanted to

https://youtu.be/nR68RoM5pm4

 
Binance DEX guide
Binance has released a decentralized exchange in addition to its traditional one. The Binance DEX is now running on the testnet. Binance wanted to

 

Binance DEX guide

Binance has released a decentralized exchange in addition to its traditional one. The Binance DEX is now running on the testnet. Binance wanted to tackle the problems of the conventional exchange model. Having a decentralized exchange puts back full custody in customers’ hands as well as goes along with the principle that cryptocurrency decentralization.

Binance DEX is a decentralized order-matching engine that does not have any influence, power, or custody over its users. Binance DEX should be seen as an extension of the traditional Binance exchange, especially now that Binance DEX is only in testnet. As Binance DEX required a blockchain to be built on, Binance Coin (BNB) will transform from an ERC-20 token to a cryptocurrency with its blockchain called Binance Chain.


Binance DEX guide

Binance DEX currently allows people to create a wallet and start exchanging their tokens on it.

How to Start Creating a Wallet

Click the “Create Wallet” icon that appears on the official website. After creating a wallet, pick one of the three options to how you want to access your wallet:
Keystore File + Password;
Mnemonic Phrase;
Private Key.

Binance DEX requires all users to use the Keystore file + password, while the choice between Mnemonic Phrase and Private Key is left to the users. The chosen method will act as a secondary way of accessing the account wallet.
Creating a Keystore file requires users to enter a password that is at least eight characters in length. The password must include an upper case letter, a symbol, and a number for it to be accepted. After the password is created, the mnemonic phrase will be shown.


Unlocking the wallet

Before placing any trades, users are required to unlock their wallets. That can be done by clicking on any of the relevant tabs which will lead you to the password window. Once you choose one of the three aforementioned methods of wallet accessing and input it, you are ready to go.
Adding funds to the Testnet account
Adding funds to Binance DEX will give users free 200 BNB funds. All testnet users are required to have at least 1 BNB token on their traditional Binance account so they can receive the 200 BNB testnet funds. This requirement is not a limitation, but rather a security measure against spam.


Binance DEX trading interface

Binance DEX user interface (UI) is created to be easy to use and intuitive, as that was one of the biggest downsides to other DEXs.
TradingView chart is the center of Binance’s user interface. This chart is connected to TradingView, which means that all indicators, strategies as well as the ability to draw on the chart are available on Binance DEX.

The bottom left-hand side of the UI is where users can track their Open Orders, Order History, Trade History, and Balances.

Binance DEX currently supports only Limit orders, but other types of orders will be available. Limit orders can be located at the lower right-hand corner of the interface.

The order book can be found in the right-hand side middle part of the interface. By utilizing the order book, users can see a list of open orders on the exchange for both asks and bids.

The Left-hand side middle part of the UI is reserved for the trading history panel. This part of the UI shows users all trades that occurred on the selected trading pair and in a certain period.

Available trading pairs can be located at the upper left-hand side of the UI. Additionally, this part of the UI also shows the current price of the asset, 24-hour percentage price change, and the 24-hour volume.

Users can sign out by clicking the “Sign Out” icon at the top right of the user interface when they are finished with trading.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 13 – China’s stance on crypto skyrockets NEO’s price

The cryptocurrency market is currently in a state of consolidation. However, while the market is consolidating, NEO has been moving up. Due to fundamental news (China’s stance on cryptocurrency), this

The cryptocurrency market is currently in a state of consolidation. However, while the market is consolidating, NEO has been moving up. Due to fundamental news (China’s stance on cryptocurrency), this

The cryptocurrency market is currently in a state of consolidation. However, while the market is consolidating, NEO has been moving up. Due to fundamental news (China’s stance on cryptocurrency), this cryptocurrency increased in price over 100% over the past few weeks. If we look at the past 24 hours, Most of the market is precisely where it was 24 hours ago. Bitcoin went down 0.27%, and it is now trading at $8,744. Ethereum lost 0.16%, while XRP went down 0.34%.

Of the top100 cryptocurrencies by market cap, the biggest gainer is Aurora, with 24.80% daily gain. The biggest loser of the day was RIF Token, which lost 8.62% of its value.

Bitcoin’s dominance remained at the same place from the last time we checked the markets. Its dominance now sits at 65.92%, which is an increase of 0.05% from yesterday’s value.

The cryptocurrency market as a whole now has a market capitalization of $240.2 billion, which represents a decrease of $0.6 billion from yesterday’s value.

What happened in the past 24 hours

There was no big fundamental news that could spark up any moves to the upside or downside in the past 24 hours. As a result of that, the markets kept consolidating, and the price of most cryptocurrencies didn’t move.

However, China’s positive stance on cryptocurrency is still relevant news, especially for NEO. Its price increased by over 100% in the past few weeks. This Chinese cryptocurrency is tied to the government, so any positive news on cryptocurrency coming from China will most likely be followed by NEO’s increase in price.

Michael Novogratz warned the United States of their position in the fintech and blockchain revolution. He stated that China’s blockchain and cryptocurrency revolution might be a threat to the current position of the US in the global economy. He also said that China is already ahead in research on fintech and that the United States is just trying to catch up.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After Bitcoin’s price tumbled to $8,550, bulls rallied to put it over the $8,640 support level. Bitcoin spent the past 24 hours moving between its support level and $8,820 resistance level. One attempt of breaking this range to the upside was quickly dismantled.


Bitcoin’s volume is still very low, but it has not dropped when compared to yesterday. The values remained relatively the same. The key level of 8,820 added as the price respected resistance at the price point.

Key levels to the upside                   Key levels to the downside

1: $8,820                                           1: $8,640

2: $9,120

3: $9,250                                            

Ethereum

Ethereum didn’t move much for the past 24 hours. Its price is still contained within a range between the resistance line of $193.5 and a support line of $185. Ethereum’s bears rallied in a try to break the $185 level to the downside, but the bulls did not allow for that to happen, and the price returned above $185. At one time in the past 24 hours, the price reached $182 for a brief amount of time.


The key levels remain the same as Ethereum is back in the same position as it was yesterday.

Key levels to the upside                   Key levels to the downside

1: $193.5                                          1: $185

2: $198                                             2: $178.6

3: $163.5                                          3: $167.8

XRP

XRP hasn’t seen a lot of movement in the past 24 hours, either. Its price is contained between the support level of $0.266 and resistance standing at $0.285. As the range between support and resistance is a bit bigger than with Bitcoin’s current support-resistance distance, the price’s ability to move is also a bit bigger. Still, there was almost no movement in the past 24 hours.


XRP’s volume is still slightly elevated, while its RSI value is approaching oversold levels.

Key levels to the upside                   Key levels to the downside

1: $0.285                                           1: $0.266 (major support)

2: $0.31                                             2: $0.245

3: $0.325

Categories
Crypto Videos

What You Don’t Know About Decentralised Exchanges In Under Four Minutes

https://youtu.be/co7bMojkLEE
Decentralized exchanges explained
Bitcoin was designed to be a peer-to-peer system that allows its users to transfer funds or information without central authority or third party getting involved.

https://youtu.be/co7bMojkLEE
Decentralized exchanges explained
Bitcoin was designed to be a peer-to-peer system that allows its users to transfer funds or information without central authority or third party getting involved.

Decentralized exchanges explained

Bitcoin was designed to be a peer-to-peer system that allows its users to transfer funds or information without central authority or third party getting involved. By using Bitcoin, users fix the problems of censorship, fraud, and many others. On top of that, the automated issuance mechanism of Bitcoin through mining removes the control that central and private banks had.
The primary goal of Bitcoin’s creation was to return the control of money to its owners. However, these same fund owners entrust their funds to third-party services on a daily basis. The most popular service providers in this industry are cryptocurrency exchanges. These centralized exchanges are easy to use and access. On top of that, they are a great option when it comes to using advanced trading features such as margin trading.
However, these exchanges represent a security risk for the users’ funds. Not only that, but they go against everything that Bitcoin and cryptocurrencies in general stand for. While some exchanges have better security features than others, security breaches are not rare in this industry. Exchanges got hacked, and people lost their crypto holdings in a matter of seconds.

So what’s the alternative?

With all that being said, users still need to exchange their funds somewhere. Bitcoin is not yet an accepted payment method in most places, and people need places where they can sell it for fiat currency. Also, obtaining some altcoins can only be done in exchanges where people can exchange major cryptocurrencies for smaller ones. So how can people not compromise their security while still being able to exchange cryptocurrency? The answer lies with decentralized exchanges (better known as DEXs).

Decentralized exchanges

Decentralized exchanges are exchange markets that don’t require a third-party service to hold the customer’s funds. The exchange trades occur directly between users through an automated process, which greatly increases the decentralization aspect of DEXs. The decentralized exchange system opposes the centralized model in which users deposit their funds while the exchange issues them an ‘IOU’ that can is then traded on the platform. These funds are converted back into the cryptocurrency once a withdrawal is asked for.

Pros and cons of DEXs

Decentralized exchanges are a safer option to traditional centralized exchanges as they do not own their users’ keys. On top of that, users are not required to trust the security of the exchange as their funds are held in their wallet rather than the third party.
Decentralized exchanges also value the privacy they provide. Users are not disclosing their details to anyone on the network, which keeps them safe from any type of government intervention.
On the other hand, there are always downsides when it comes to decentralized exchanges. Most DEXs have very complicated user interfaces, which are challenging even to seasoned traders. On top of that, most decentralized exchanges have far lower liquidity than their centralized counterparts. On top of that, margin trading, lending, and stop-loss are currently unavailable on many DEXs.

Summary

Decentralized exchanges provide a unique way of transacting cryptocurrencies. However, there are still many obstacles to tackle before DEXs become what they are intended to be. With low liquidity and non-user-friendly interfaces, DEXs are just another tool for people that want to exchange their crypto assets safely. However, to mass adoption, DEXs have a long way to go.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 12 – Markets stale, XRP preparing for a new move

The cryptocurrency market did not move at all since our last report. After the bears took over the market for a short time, everything stayed calm. If we look at

The cryptocurrency market did not move at all since our last report. After the bears took over the market for a short time, everything stayed calm. If we look at

The cryptocurrency market did not move at all since our last report. After the bears took over the market for a short time, everything stayed calm. If we look at the past 24 hours, Bitcoin went down 0.31%, and it is now trading at $8,763. Ethereum lost 0.45%, while XRP went down 0.26%.

Of the top100 cryptocurrencies by market cap, the biggest gainer is Aurora, with 23.28% daily gain. The biggest loser of the day was DxChain Token, which lost 19.11% of its value.

Bitcoin’s dominance remained at the same place from the last time we checked the markets. Its dominance now sits at 65.87%.

The cryptocurrency market as a whole now has a market capitalization of $240.87 billion.

What happened in the past 24 hours

There was no news that could spark up any moves to the upside or downside in the past 24 hours. As a matter of fact, after the markets dropped in price, everything stopped. No significant fundamental news worth noting, low volume in the markets, no significant price movement.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin’s price tumbled to $8,650 yesterday morning as bears took over. However, the key level of $8,640 held and the price bounced back quickly. All the key levels proved to be well-respected. However, Bitcoin’s price took another blow this morning. Bitcoin fell under the $8,820 line and even tested the lows under the key level of $8,640 by reaching the price of $8,600. Bulls, however, rallied, and the price remained above this key level.


 

Bitcoin’s volume keeps decreasing more and more if we exclude occasional volume spikes, which results in sudden price drops.

Key levels to the upside                   Key levels to the downside

1: $9,125                                           1: $8,640

2: $9,250

3: $9,580                                            

Ethereum

Ethereum is still in the same spot it was for the majority of the past week. Its price is contained within a range between the resistance line of $193.5 and a support line of $185. If we look at the past 24 hours, its price slowly decreased and tried to test the $185 key level, and even broke it downwards to $184,4 at one point. However, the bulls rallied and moved the price back up.


Ethereum’s volume is on extremely low levels when compared to the previous days. The key levels remain the same as Ethereum is back in the same position as it was before the weekend.

Key levels to the upside                   Key levels to the downside

1: $193.5                                          1: $185

2: $198                                             2: $178.6

3: $163.5                                          3: $167.8

XRP

XRP is in a pretty interesting spot at the moment. Even though its price is contained within a range, its volume is rather high (and so is the probability of a move – to the upside or downside). After failing to break its resistance of $0.285, XRP is trading between that key level and its major support of $0.266.


As XRP’s RSI shows quite low values and its volume is high, there is a high chance of an attempt to break the key resistance level to the upside happening soon.

Key levels to the upside                   Key levels to the downside

1: $0.285                                           1: $0.266 (major support)

2: $0.31                                             2: $0.245

3: $0.325

Categories
Cryptocurrencies

Public and Private Keys: A must read before buying any cryptocurrency 

If you’ve heard of cryptocurrency, you’ve probably also heard of private and public keys, or at least private and public address. You’ve also probably wondered about the concept behind them.

If you’ve heard of cryptocurrency, you’ve probably also heard of private and public keys, or at least private and public address. You’ve also probably wondered about the concept behind them.

If you’ve heard of cryptocurrency, you’ve probably also heard of private and public keys, or at least private and public address. You’ve also probably wondered about the concept behind them. This simple guide is all you need to understand the concept and secure your coins. 

Private and public keys are important components of blockchain – the technology behind cryptocurrencies. To understand cryptocurrencies better and stay safe while interacting with them, it’s essential to know the meaning of private and public keys and their role in cryptocurrency. 

Public and private keys are based on cryptography, which simply means the science and art of encrypting information so that third parties can’t understand it. In other words, cryptography enables data to be stored and communicated in a manner that unauthorized parties cannot understand. It’s employed today in private and public keys to make blockchain- and hence cryptocurrency, a safe environment for users. 

Cryptography is mostly famous for being used in wartime, especially by Julius Caesar, the Roman military general who sent encrypted messages to his generals to ensure the enemy couldn’t understand them. Known today as Caesar’s cipher, his cryptography involved shifting each letter of a word three times to the left of the alphabet. 

Today, encryption is all around us, even if we don’t realize it. From our phone apps to our phone screens to our credit cards – all these are encrypted to protect our personal information.  

Symmetric Key Cryptography and Asymmetric Key Cryptography  

Cryptography exists in two forms: asymmetric key cryptography and symmetric key cryptography. 

In symmetric cryptography, the same key is used to both encrypt and decrypt the message. A good example is Julius Caesar’s encrypted messages. The same key, i.e., using three letters to the left of the alphabet, can be used to decrypt or decode the message. Another example is today’s door lock, in which the same key is used to lock and unlock the door. 

The drawback to symmetric key cryptography is somebody can figure it out soon enough. Using the above examples, for instance, it’s easy for someone to steal a key to a door lock. And Julius Caesar’s opponents could figure out the cipher, eventually.

Asymmetric cryptography, on the other hand, is more complex. Two keys are used to decrypt information. In the case of blockchain, one key – the public key, is used to encrypt data and a second key – the private key, is used to decrypt it. 

Asymmetric cryptography adds an extra layer of security to a transaction by securing both the item transacted and the recipient’s ability to access it.  

Public Key Cryptography and Blockchain

The idea behind blockchain technology is to create a network where people can securely carry out transactions without the possibility for a third party or a central authority interfering. The security of the network, transactions, and parties involved is crucial to this process. In a traditional model, the third party, or the authority, usually provides the security – like the bank overseeing transactions, or protecting money in general.

But the blockchain model has no overseeing authority. So how will security be ensured? The answer is in public and private keys – which are based on cryptography. 

Public and private keys are digital assets that, when combined, form a digital signature, allowing the secure sharing and unlocking of information or data. 

What’s the Difference between Public and Private Key? 

Since the blockchain model uses cryptography to facilitate transactions, and public cryptography uses both public and private keys, every user on a blockchain network has a public and private key.

Now, the keys are usually randomly generated alphanumeric sequences that are unique to every user.   

A blockchain network, e.g., Bitcoin, usually generates a private key when a user creates a wallet. This key uses 256-bit encryption. This encryption makes use of really large numbers that unauthorized parties can’t guess or calculate. After the key is generated, it’s incredibly important that it’s kept private and secure. Nobody other than the owner is to see or have access to it. 

The private key confirms a person’s identity when carrying out a transaction on the blockchain. 

By contrast, the public key is exactly that – the key that an individual shares with the public, or in this case, the blockchain network. The public key is also generated by the blockchain network based on the private key. This means it’s only that private key in the world that can decrypt a message attached to that public key.

It helps to think of the public and private keys in real-world terms. Think of the public key as your bank account number – people who know it can send you money through it. The private key is like your pin code – it’s only known to you, and you use it to access the money in your bank account. 

How Public and Private Keys Work

An individual’s private and public keys combine to create a digital signature that proves their ownership of funds and allows them access to those funds. To carry out a transaction on the blockchain, a person must use both keys together. 

The following is an illustration of how public and private keys work. Person A wants to send, let’s say, Bitcoin to Person B. They can do this by obtaining Person B’s public key, and attaching the relevant information – in this case, the number of coins, to that public key, and then send it to Person B. 

As the information is attached to person B’s public key, and it’s only their private key than can decrypt the information on their public key, Person A is sure that it’s only Person B who can see that information on the blockchain network. So, Person A will use Person B’s key to encrypt the information, because only Person B’s private key can decipher it.

Person B receives the information from Person A, and using their private key, creates a digital signature which will unlock the information and access it. 

The role of a digital signature is central to this process. On the blockchain network, it serves these three purposes:

☑️ It proves that the owner of a private key has authorized a transaction

☑️ It proves that a transaction is undeniable – i.e., there’s no doubt that the owner and they alone authorized the transaction, and they cannot repudiate their involvement in it in future

☑️ It proves that the transaction has been authorized by that signature and has not been altered or modified by anyone after it was signed

How does Blockchain Use Cryptography? 

The blockchain model uses cryptography in these ways: 

Protects the identity of users – It enables every individual to keep their identity private, so they can securely transact on the network

Secures blocks –It allows people to execute transactions on the blockchain, which then adds blocks which no one can modify, sealing them permanently

Validate transactions – It enables individuals on the network to confirm transactions are indeed initiated by who they say they’ve been initiated by, and they can thus be added on the blockchain 

Conclusion 

It’s exciting to see how cryptography – the technology behind public and private keys, has evolved from being used during medieval wars to become the technology that enables people to transact on the futuristic blockchain world. And as blockchain technology continues to become accepted by other industries outside of finance, cryptography will continue to be central. It will be exciting to see how art and science will play a role in blockchain-based processes in the future. 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 11 – Cryptocurrency markets dropping, IRS chasing crypto-tax evaders

The cryptocurrency market had a slightly red weekend but started to consolidate and rise in price afterwards. After most cryptocurrencies had their time consolidating, bears took over the market and

The cryptocurrency market had a slightly red weekend but started to consolidate and rise in price afterwards. After most cryptocurrencies had their time consolidating, bears took over the market and

The cryptocurrency market had a slightly red weekend but started to consolidate and rise in price afterwards. After most cryptocurrencies had their time consolidating, bears took over the market and the price of most cryptocurrencies fell significantly. If we look at the past 24 hours, Bitcoin went down 3.24%, and it is now trading at $8,721. Ethereum lost 2.54%, while XRP went down 2.69%.

Of the top100 cryptocurrencies by market cap, the biggest gainer is DxChain Token, with 28.38% daily gain. The biggest loser of the day was Synthetics Network, which lost 8.55% of its value.

Bitcoin’s dominance decreased as its price fell more when compared to most altcoins. However, the decrease was is only fractional. Its dominance now sits at 65.87%, which represents an increase of around 1% when compared to the value it had on Friday.

The cryptocurrency market as a whole now has a market capitalization of $239.5 billion.

What happened in the past 24 hours

The Joint Chiefs of Global Tax Enforcement which include representatives from the US, UK, Australia, Canada as well as the Netherlands talked about cryptocurrencies and ways that people avoid taxes as well as how to potentially stop it. The IRS stated that they are now better suited to tackle cryptocurrency tax evasion.

The IRS also claims that they already identified “dozens” of suspects by using the knowledge they obtained during this forum.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin had a rough weekend as cryptocurrency markets tumbled down. However, its price recovered fast, and the outlook is slightly bullish at the moment. During the drop, the price reached the price of $8,650, but bounced back quickly. All the key levels proved to be well-respected. However, Bitcoin’s price took another blow this morning. Bitcoin fell under the $8,820 line. BTC is now held by the support standing at $8,640.


Bitcoin’s volume keeps decreasing more and more if we exclude occasional volume spikes which result in sudden price drops. One change in the key levels is that the support level of $8,820 was not respected well enough, so it will be removed for now.

Key levels to the upside                   Key levels to the downside

1: $9,125                                           1: $8,640

2: $9,250

3: $9,580                                            

Ethereum

Ethereum spent quite a few days of the past week contained within a range between the resistance line of $193.5 and a support line of $185. When bears took over the market, the price fell below the support line and reached a price of $180. However, as time passed, Ethereum regained its strength and moved back to the same range it was in previously. It is currently trading at $186.


Ethereum’s volume had a big volume spike which helped it cross the $185 resistance. However, that volume died down quickly. The key levels remain the same as Ethereum is back in the same position as it was before the weekend.

Key levels to the upside                   Key levels to the downside

1: $193.5                                          1: $185

2: $198                                             2: $178.6

3: $163.5                                          3: $167.8

XRP

Unlike Bitcoin and Ethereum which mostly recovered from their latest price losses, XRP failed to do so. After bears took the market in their own hands, XRP fell to the price of $0.27. Bulls quickly came to the fight but failed to form enough buying power to pass the $0.285 resistance level. XRP is currently positioned between the $0.285 resistance and $0.266 support, with its price being $0.275 at the moment.


XRP is currently trading with a volume that exceeds the average by quite a large margin. The only change to key levels is that the $0.285 is now acting as resistance rather than support.

Key levels to the upside                   Key levels to the downside

1: $0.285                                           1: $0.266 (major support)

2: $0.31                                             2: $0.245

3: $0.325

Categories
Crypto Videos

What Is Proof Of Stake & Will It Make Ethereum Better Than Bitcoin

https://youtu.be/iVWWsAGB0K0

 
What is proof of stake, and how does it work?
The proof of stake system is a consensus protocol that came as a response to the shortcomings

https://youtu.be/iVWWsAGB0K0

 
What is proof of stake, and how does it work?
The proof of stake system is a consensus protocol that came as a response to the shortcomings

 

What is proof of stake, and how does it work?

The proof of stake system is a consensus protocol that came as a response to the shortcomings of proof of work. It is attracting a lot of attention as of late, with Ethereum switching its consensus protocol from proof of work to proof of stake. Proof of stake is nothing more than an alternative way to verify transactions on a blockchain.

How does it all work?

Proof of work and proof of stake works very differently, even though they are trying to do the same thing. The proof of work system has its users validate transactions and create new blocks by solving a “puzzle,” which requires some computational power. On the other hand, a proof of stake consensus algorithm requires the user to show ownership of their funds to validate transactions.


When it comes to proof of stake system, the creator of a new block is picked in a pseudo-random way. The block creator has more chance depending on the size of their “stake.” In the proof of stake system, blocks considered forged or minted rather than mined. Nodes who validate transactions and create new blocks with this system are not miners, but rather forgers.
To validate transactions and create blocks, a forger must stake their funds. Their holdings are being held in an escrow account, which acts as collateral for any potential fraud attempts. If a forger tries to validate a fraudulent transaction, they lose both their staked holdings and their rights to participate in the process. This way, the proof of stake protocol incentivizes forgers to validate only non-fraudulent transactions.
An important thing to note is that most proof of stake projects already created and distributed their digital currency units already. When this is the case, the forgers receive transaction fees instead of new cryptocurrency as rewards. This is considered true only if the cryptocurrency cannot inflate itself by minting more and more coins.

Block selection methods

Proof of stake consensus algorithm needs a way to select future forgers. There are two main ways to do so:

Selecting a user randomly
Selecting a user based on their coin age.

Selecting a forger only by the size of their account balance would go against the whole premise of cryptocurrencies, and is a bad idea. That way, people with more funds would get richer, while the ones with fewer funds on their account would be hindered and have less control over block creation. To counter this problem, these two methods have come up as the most popular and reasonable.


Randomized block selection

The randomized block selection method is just what it sounds. The method seeks a user that offers the lowest hash value regarding the size of its stake. As all stake sizes are public, each node can predict (with high probability) whether they will be selected to forge the next block.

Coin age-based selection

This system is a bit different than the randomized block selection one. It selects the next forger based on the ‘coin age’ of the node’s stake. Coin age is a multiplier of the number of days the funds have been staked and the number of coins that are being staked. Coins must be staked for 30 days before they can compete for block creation. Users with larger stakes have an advantage, but so do users who have staked for a longer time. Once a user forges a block, their coin age is reset to zero. After a node forges a block, they must wait at least 30 days before creating another block. This mechanism promotes decentralized forging while maintaining a power balance between large stake forgers and lower stake forgers.
Advantages of proof of stake
Proof of stake is a much more environmentally friendly and efficient consensus algorithm than the proof of work method. The electricity and hardware costs are much lower due to how the method is made.

Unlike proof of work system where a 51% attack is performed by obtaining the majority of hash rate, proof of stake attackers would be required to obtain 51% of the cryptocurrency to perform the attack. Even though performing a 51% attack is possible, forgers with the majority of funds would not risk their money to perform such an attack. If the cryptocurrency price drops due to the attack, their holding value would also drop.

Conclusion

Proof of stake is a consensus algorithm that is created as an answer to the disadvantages of proof of work. It offers a unique way of validating transactions and creating blocks, and it is gaining popularity. With that being said, the Proof of Stake algorithm is not better than Proof of Work on all fronts, and each project should consider both methods before picking the one they like.

Categories
Crypto Videos

Will The Next Bitcoin Halving Send The Price Into Space? #Moon

https://youtu.be/obpfVVZY02M
What is Bitcoin halving?
Before explaining Bitcoin halving, we need to know how Bitcoin mining works. Each time a block is verified by submitting a correct answer to

https://youtu.be/obpfVVZY02M
What is Bitcoin halving?
Before explaining Bitcoin halving, we need to know how Bitcoin mining works. Each time a block is verified by submitting a correct answer to

https://youtu.be/obpfVVZY02M

What is Bitcoin halving?

Before explaining Bitcoin halving, we need to know how Bitcoin mining works. Each time a block is verified by submitting a correct answer to the equation, new Bitcoins come as a reward. Satoshi Nakamoto set up two major rules for the proof of work protocol:

Bitcoin’s maximum supply is finite. It is limited to 21 million and cannot be changed.

The number of Bitcoins generated per block and distributed as a mining reward halves (decreases by 50%) every 210,000 blocks.


How long until Bitcoin rewards halve?

As one block is found every 10 minutes on average, 210,000 blocks would be found in approximately four years. The mining reward for solving the block puzzle will halve by 50% every four years. Bitcoin’s first mined block rewarded the miner 50 Bitcoin. Two halvings after, and we are in the present, where each block grants 12.5 Bitcoin. Next, halving will reduce that amount to 6.25 Bitcoin and so forth until there are no more Bitcoin to be mined. When there are no more Bitcoin to be mined, miners will be compensated through mining fees.

Why is halving created?

The explanation of the creation of halving events lies in the law of supply and demand. If coins are mined too fast, the supply will rise too fast, and there will be a lot more Bitcoin in circulation. This will, in turn, devalue the currency.
Vitalik Buterin, the lead developer of the Ethereum project, explained the need for halving to occur is to keep inflation under control. Additionally, he explained that “One of the major faults of traditional fiat currencies controlled by central banks is that the banks can print as much of the currency as they want, and if they print too much, the laws of supply and demand ensure that the value of the currency starts dropping quickly.”


When Will the Next Halving Occur?

As previously mentioned, each block takes 10 minutes to generate on average. Taking that into consideration, we can estimate the next block halving event to occur somewhere around June 2020. Many websites track block generation and estimate when the reward halving will happen exactly. They even have countdowns that let people know the date and time of the estimation.
One important thing to mention is that some people noticed that each block takes only 9 minutes and 20 seconds on average to generate, instead of the presumed 10.

How Will the Bitcoin Halving Affect Bitcoin’s Price?

As block halving essentially reduces the further supply of Bitcoin, many people will ask whether the price will be affected by this event. Sadly (or fortunately), no one knows. The 2016’s halving event had no major effects on the price at that time. A week after the event, Bitcoin went from $650 to $675.
However, even if there are no apparent signs of price change, economic principles of supply and demand still work. Either the price will increase after the halving, or the current price already includes the speculation of what’s about to happen.

Conclusion

Bitcoin is a scarce asset by design. The specific rules, such as a limited supply of 21 million Bitcoin as well as an inflation reduction “tool,” which is the halving event, make sure that Bitcoin becomes even more valuable over time. The Bitcoin halving event should not be considered as a date at which the price of Bitcoin skyrockets, but rather a tool which keeps inflation in check. This is one of the main attributes of Bitcoin and one that separates it from fiat currencies, which are inflationary by nature.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 7 – Crypto-mining in China no longer illegal

After a green day yesterday, the cryptocurrency market has started to consolidate. There were no big movers if we look at the top10 cryptocurrencies. This consolidation is usually a healthy

After a green day yesterday, the cryptocurrency market has started to consolidate. There were no big movers if we look at the top10 cryptocurrencies. This consolidation is usually a healthy

After a green day yesterday, the cryptocurrency market has started to consolidate. There were no big movers if we look at the top10 cryptocurrencies. This consolidation is usually a healthy move after the price drops or surges. Bitcoin went down 0.17%, and it is now trading at $9,299. Ethereum lost 0.14%, while XRP gained 0.86%.

Out of the top100 cryptocurrencies by market cap, the biggest gainer is Tezos, with 28.30% daily gain followed by Swipe’s 13.20% and Ren’s 12.27% gain. The biggest loser of the day was Chiliz, which lost 14.84% of its value.

Bitcoin’s dominance went slightly down when compared to the previous day as some cryptocurrencies outperformed its daily gain. Its dominance now sits at 66.59%, which represents a decrease of 0.5% when compared to yesterday’s value.

As the market was pretty stable in the past 24 hours, the market capitalization has not changed much. The slight decline in market capitalization could is just temporary and is a part of the daily crypto fluctuation. Cryptocurrencies as a whole now have a market capitalization of $252.6 billion, which represents an almost $1.1 billion decrease when compared to the previous day.

What happened in the past 24 hours

Most of today’s news came from China. The biggest one would be that China is now outright bullish on cryptocurrencies and does not intend to shut down cryptocurrency mining whatsoever.

China officially stated that cryptocurrency mining is no longer featured on the list of industries it considers undesirable. On top of that, China’s President Xi Jinping calling the country to accelerate blockchain adoption as well as people to invest into cryptocurrencies.

However, cryptocurrency trading is still officially banned in China as the new law comes takes effect on Jan 1, 2020.

_______________________________________________________________________

Technical analysis

_______________________________________________________________________

Bitcoin

After Bitcoin broke its triangle pattern and surged from $9,150 levels to $9,300 levels, it started to consolidate. The price seems to be contained within a range and any attempts of moving out of that range gets shut down. Bitcoin is now trading at $9,09, which is just slightly less than how much it was trading for at 24 hours ago.


Bitcoin’s volume is approximately on the same level as it was for the past couple of days. As there were no new moves to the upside or downside, the key levels stay the same. One addition to the key levels could be the price where Bitcoin broke its triangle pattern, as that seems to be its immediate support at the moment.

Key levels to the upside                   Key levels to the downside

1: $9,580                                          1: $9,250

2: $9,740                                          2: $8,820

3: $10,350                                        3: $8,640

Ethereum

After breaking the $185 resistance line, which now became support, Ethereum seems to be in the hands of the bulls. While volume showed that there was no space for Ethereum’s price to go up or down, the cryptocurrency platform proved otherwise. It tried to move above the $193.5 resistance line, which proved to be a valid bear-filled price point. As the upward-facing move failed, Ethereum is now consolidating close to the $193.5 resistance line.


Key levels to the upside                   Key levels to the downside

1: $193.5                                          1: $185

2: $198                                             2: $178.6

3: $163.5                                          3: $167.8

XRP

XRP has proven to be an almost-isolated market. While slightly affected by the price movements of the industry, XRP is more than capable of not mirroring Bitcoin. Not only that, but its price movements are almost completely different. While Bitcoin is trying to stabilize and consolidate, XRP tried to make a quick move up. The price surged from $0.03 all the way to $0.315 before crashing down to the same level it started at, creating two major candles, one green, and one red.


XRP’s RSI touched the overbought indicator at the same time that bears started kicking in. Even though the price movement was quite wild, the key levels are remaining the same as the price did not move past any support or resistance levels.

Key levels to the upside                   Key levels to the downside

1: $0.31                                            1: $0.285

2: $0.325                                          2: $0.266 (major support)

3: $0.333                                          3: $0.245

Categories
Crypto Guides

Which kind of Problems can be Solved by Cryptocurrencies?

Introduction
Cryptocurrencies have made an impact on the world’s financial system in an unprecedented way. The speed and agility of global transactions have changed with the advent of cryptos. At

Introduction
Cryptocurrencies have made an impact on the world’s financial system in an unprecedented way. The speed and agility of global transactions have changed with the advent of cryptos. At

Introduction

Cryptocurrencies have made an impact on the world’s financial system in an unprecedented way. The speed and agility of global transactions have changed with the advent of cryptos. At present, there are around 3053 cryptocurrencies trading across the world, with a market cap of more than $246 billion. Many global companies around the globe have started to accept cryptos as a mode of payment for the products and services they provide. Bitcoin atm’s and debit cards are making the widespread adoption of cryptocurrencies easy and worthwhile. In this article, let us understand the reason for this wide adoption of these cryptos by looking at some of the problems they solve.

🏳️ Centralization: Cryptocurrencies are built on blockchain platforms enabling them to adopt all the features of the blockchain technology. The fiat currency we use today is minted by the central banks of the respective countries. The presence of a central entity to control something is called centralization. Banks play a significant role in the financial status of any country. It is well known that the financial crisis of 2008 is due to the banking crisis. That was the time when Bitcoin came into the picture, paving the way for the decentralized currency. Cryptocurrencies are decentralized with no third-party control. They run on blockchain technology as per the network setup initially. The network is maintained and run by different entities mining the native currency. Thus by no one controlling the money, they remain unique and stable. This is the prominent problem that cryptocurrencies solve over fiat currency.

🏳️ Intermediary costs: The transaction costs to send money between different countries is too high. The respective entities charge a certain percentage of the transaction amount, and it depends on the amount we send and the service we utilize. Also, it takes more time to settle transactions across different countries. There is no limit for cryptocurrency transfer across the world. It is instantaneous with a minimal amount as a transaction fee when compared with the standard bank wire transfers.

🏳️ Privacy: The transactions you make in cryptos are semi-anonymous; some cryptos even ensure complete anonymity. Each of the users will have their crypto addresses, which are used to make transactions. These addresses ensure privacy while transacting cryptos. Having said that, the level of privacy varies from one crypto to others.

🏳️ Security: Blockchain assures the utmost protection when it comes to cryptocurrency transactions. The transactions in the blockchain cannot be reversed; once committed, they are committed for a lifetime. The cryptographic techniques used to secure the transactions are almost impossible to hack.

🏳️ Inflation: Any cryptocurrency has a limit of coins that it can ever have or in some coins, the number of coins that can be mined per year will be capped. In the case of fiat currency, the government can issue bonds and manipulate interest rates to increase the circulating money, thus decreasing its value leading to inflation. Since the number of coins that ever will be available is capped in the case of crypto, inflation can be effectively handled.

These are only a few problems that cryptocurrencies can solve, but with the widespread usage, there would be solutions for problems that we don’t even see now. We hope you find this article informative. Cheers!

Categories
Crypto Daily Topic

Tips to Trading Cryptocurrencies

Cryptocurrencies present a world of possibilities. Trading in cryptos can be a thrilling endeavor, not just because of their novelty but also their volatility. Many traders and investors – new

Cryptocurrencies present a world of possibilities. Trading in cryptos can be a thrilling endeavor, not just because of their novelty but also their volatility. Many traders and investors – new

Cryptocurrencies present a world of possibilities. Trading in cryptos can be a thrilling endeavor, not just because of their novelty but also their volatility. Many traders and investors – new and experienced alike, are moving in to try their hand at crypto trading.

While trading in cryptos can be profitable, it’s also really easy to lose your money – thanks in part to their wild volatility and unpredictability. A single mistake in crypto trading can be very costly, and that’s why you should go in with a strategy.

With that, the tips below should set you in the right direction in crypto trading; whether you’re looking to dip your toe in the water or have been in the game for a while. 

Research and Research More

Before diving headfirst into what is usually a murky world of cryptocurrency trading, it’s important to arm yourself with its very basic concepts. This starts with knowing the terminologies mostly thrown around and understanding what they might mean for you. Understand what cryptocurrencies are, the technology powering them (blockchain), how to be safe while trading cryptocurrencies, and so on.

You will also need to read up on the language used in crypto trading, such as limit order, bullish, bearish, market depth, all-time lows, all-time highs, etc. It’ll also be essential to keep tabs on what is happening in the cryptocurrency world. This means knowing new cryptocurrencies, which cryptos are increasing or falling in prices, the market value of different cryptos, etc.

Knowing how different cryptocurrencies have performed in the past, their all-time lows and all-time highs is also necessary. It will help you assess the volatility of cryptos you’re interested in and determine if they’re worth investing in. It might even give you an inkling of their probable future market trends.

Bear in mind that things keep changing in cryptoverse, so one single sitting of research is not nearly enough. What was true six weeks ago may not be true today. The regulation, technology, news, and pretty much everything concerning cryptos is always changing at a fast pace.

Understand Arbitrage

Arbitrage is the difference in the price of the same commodity in two different exchanges – like, say, Bitcoin trading at a slightly lower price on Coinbase than on Binance. Understanding this and acting accordingly can be profitable for you, the trader. But keeping track of the different prices on crypto exchanges is a difficult and time-consuming thing to do.

Other factors that may affect your trading are current volumes of the currencies, variation prices, network fees. To stay on top of these elements, resources such as CoinScanner and other similar tools should be of help. They can help you understand arbitrage better and how to capitalize on it, as well as trade cryptos at the cheapest prices and gain profits.

Be Safe

The first safety rule is to find out the safest places for buying cryptos. The second is to know how to protect them once you’ve bought them. Cryptos, in particular, tend to attract scammers, hackers, phishing attacks, impostors, etc. Take precautions. Always double-check before you enter passcodes/private keys or send money to accounts. Disable any unnecessary extensions in your browser and be careful before opening any URLs.

Protection also means knowing how to store your crypto coins. There are several purpose-built crypto wallets designed with security as a priority. Ledger Nano S, TREZOR, Atomic Wallet, Abra, are some of the most trusted wallets out there.

Crypto Exchanges Are For Just That – Exchanging

Even if you’re a pro at crypto trading, you could lose your money if you’re not careful enough. Cryptocurrency has no insurance, and the responsibility of protecting your coins is yours only.

Many people make the mistake of leaving their fiat holdings on crypto exchanges after they make profitable trades. Yet, exchanges are not a secure place to store your assets. The story of Mt. Gox illustrates this too well. The former world’s leading Bitcoin exchange was put out of business, and thousands of customer coins stolen after a cyber-attack.

The best way to avoid losing your assets on exchanges is to keep your coins in a secure wallet. Also, don’t use the device that contains your assets over public Wi-Fi. Apply other precautions detailed on the safety tip above.

Don’t Ignore the Market Cap

Most inexperienced traders are prone to making trading decisions based solely on the current coin price of a crypto. The reality is the value of a crypto includes the current circulating supply. So when you’re considering whether to buy a cryptocurrency, try to look beyond the current going price and look at the percentage of the total market cap for the currency. The closer a cryptocurrency is to its market cap, the likelier its demand will rise in the near future. 

Beware of Pump and Dump, FOMO and FUD

FOMO is an abbreviation for fear of missing out. FOMO is one of the reasons many crypto traders fail in the art. This a trick that most ‘whales’ use. Whales are people who are holding massive volumes of crypto coins. Some whales buy (pump) the coins in an attempt to show that the currency is in such high demand, only to come and sell it at high prices (dump) after many people have bought the lie. But once they’ve bought it, they may never get the opportunity to trade it for profit, making losses.

When you see a sudden euphoric rush by many traders to buy a crypto, don’t jump in too because of FOMO. Always do your research and rely on your gut to make decisions – following the crowd might cost you big time.

FUD, on the other hand, stands for fear, uncertainty, and disinformation/doubt. Some people deliberately spread FUD with fake news, fake social media accounts, and manipulated facts just to dump some coins. Always verify the sources and intentions of any crypto news before being driven by FUD to make trading decisions.

Invest With Money You Can Afford To Lose

This goes without saying. The first thing to know is: the only predictable thing about crypto prices is their unpredictability. While this might actually be a good thing for crypto trading, it also might mean that nothing’s ever really assured.

Cases abound of many who have emptied their savings in cryptos, took loans, and lost most of those savings. The bottom line: never invest too much money in a very high-risk market (like cryptos).

Diversify Your Portfolio

The reason why it’s important to diversify your portfolio when trading in cryptos comes down to their unpredictability, again. Don’t be tempted to “hold all your eggs in one basket” and invest in one crypto only.

Also, many people think they should spread risk across several cryptos so that in case one tanks, the rest will turn a profit. But what they need to know is all cryptos seem to follow the pattern set by Bitcoin. When Bitcoin decreases in value against the dollar, all other coins almost always follow suit. So, diversifying among different cryptos may not be enough to cushion you against losses. The idea here is to trade in other types of assets as well.

Know Which Altcoins to Trade In

The truth about many altcoins (all other cryptos besides Bitcoin) is they end up losing value over time, sometimes unexpectedly. This means you shouldn’t hold on to an altcoin for too long.

One way to know if an altcoin is ideal for long term investment is to check the daily trading volumes. If a crypto has a high daily trading volume, then chances are it’s a good option for HODLing to sell in the future. Ethereum. Monero, Litecoin, and Dash are some of the currencies that have displayed consistent daily trading volumes.

Also, check regularly the charts of these cryptos and note spikes in price. The patterns can help to identify the perfect time to sell or buy a coin.

Have a Reason for Your Trades

You need to have a purpose for entering any crypto trade. This is because in cryptocurrency trading, someone always wins, and another one always correspondingly loses.

The crypto market is unfortunately controlled by whales who wait for the ‘small fish’ to make a mistake that will land more money on their hands.

Whether you’re a casual or active trader, sometimes it’s better to cool off and not gain anything than rush in and lose. It may seem counterproductive, but sometimes not trading at all is the only way to stay profitable.

Set Profit Targets and Stop Losses

Trading in any asset requires us to determine a point when we’ll exit the market, whether we’re profiting or losing. The target level is an upper limit where you will close the trade after you have reached a certain profit. If you had set a particular profit target and have achieved that target, it’s time to exit the market.

Also, a stop loss level can help you not lose more than you’re willing to lose. A stop-loss is the limit at which you close out your position if the price is falling. For example, if you bought a coin at $600, you can set that as the minimum point you’re willing to trade it. So if the market doesn’t go as expected, you can walk away without losing much. 

The crypto market is exceptionally volatile, and prices can fall any time. Don’t let greed or emotion guide your decision making.

Do Your Due Diligence on Initial Coin Offerings (ICOs)

ICOs offer the public a way to invest in a crypto coin and make a profit when the coin is listed on an exchange. Since they promise high returns, many traders rush in without conducting some due diligence. This is a mistake because some ICOs have turned out to be scams, and many people have lost money this way.

‘‘Trust, but verify’’ is true when it comes to ICOs. Do your own research about the project. Who are the people behind it? Analyze, based on your research, if they really have the ability to deliver on their promise. Analyze, too, the feasibility of the project. Scrutinize the white paper and seek answers where it doesn’t add up. If by the end, you still doubt the credibility of the project, you’d instead give it a pass than sink your money into it.

Don’t Buy Just Because the Price Is Low

Some beginner traders make the mistake of buying a coin just because it has a low price or is “affordable.” But the decision to buy a coin shouldn’t be determined by its affordability, but rather its market cap.

It’s just like with conventional stocks – they’re evaluated with this formula: Current Market Price multiplied by the Total Number of Outstanding Shares. This same formula applies to cryptocurrencies.

Thus, it’s better to determine a coin’s worth based on its market cap than its market price. The larger a coin’s market cap, the more it is worth to invest in.

Find a Community

It can be challenging to keep up with cryptoverse. There is a lot of information about it, and everything is always changing. To stay on top of things, find a reliable group of fellow traders with whom you can share trends, ideas, strategies, and analyses. And whether it’s on Facebook, Reddit, WhatsApp, or Telegram, remember not everyone is worth listening to.

Conclusion

Crypto trading can turn handsome profits, but the opposite is also true. The very aspect that makes cryptocurrencies an attractive trading option is the same one that requires you to tread carefully when dealing with them. Before you invest your hard-earned money in cryptocurrency, remember these cardinal tips. Also, remember trading in any asset requires a cool and sober head – whether you’re winning or losing. Good luck.

 

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 6 – Senator Romney and the FBI view Crypto as National Security Threat

The cryptocurrency market had another green day. Major cryptocurrencies’ volume is on the decrease, and yet the price rose two days in a row. Almost every cryptocurrency in the top100

The cryptocurrency market had another green day. Major cryptocurrencies’ volume is on the decrease, and yet the price rose two days in a row. Almost every cryptocurrency in the top100

The cryptocurrency market had another green day. Major cryptocurrencies’ volume is on the decrease, and yet the price rose two days in a row. Almost every cryptocurrency in the top100 is currently in the green, the exceptions mostly being stablecoins. Bitcoin went up 1.78%, and it is now trading at $9,385. Ethereum gained 4.98%, while XRP gained 1.35%.

Out of the top100 cryptocurrencies by market cap, the biggest gainer is Dragon Coins, with 24.53% daily gain followed by Lambda’s 21.71% and Algorand’s 19.42% gain. The biggest loser of the day was Chiliz, which lost 17.59% of its value.

Bitcoin’s dominance went slightly down when compared to the previous day as some cryptocurrencies outperformed its daily gain. Its dominance now sits at 66.82%, which represents a decrease of 0.3% when compared to yesterday’s value.

Cryptocurrencies ended up being in the green in the past 24 hours, which resulted in a small increase in market capitalization of the whole asset class. It now has a market capitalization of $253.78 billion, which represents an almost $3.09 billion increase when compared to the previous day.

What happened in the past 24 hours

The United States Republican Senator Mitt Romney is considering impeaching cryptocurrency from the US as, in his opinion, the threat to national security is rising. The FBI also agreed with that by saying that cryptocurrencies are a “significant problem that will get bigger and bigger”. All this happened during a hearing in the United States Senate Committee On Homeland Security And Governmental Affairs.

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Technical analysis

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Bitcoin

Bitcoin’s has broken its triangle pattern that it was forming on a daily time-frame and its standing above it with conviction. While the price seems to be performing movements contained in a range, the current candle is looking promising. Bitcoin is now trading at $9,385, which is close to $100 more than it was trading at 24 hours ago.


Bitcoin’s volume is approximately on the same level as it was yesterday. As there were no new moves to the upside or downside, the key levels stay the same.

Key levels to the upside                   Key levels to the downside

1: $9,580                                          1: $8,820

2: $9,740                                          2: $8,640

Ethereum

Ethereum’s bulls and bears were fighting for its place above or below the $185 line yesterday. The bulls won, and the price went above the line, but that was not the end of the move. Etherum is now trying to tackle another resistance, which is sitting at $193.5. Ethereum is now trying to break the resistance and its trading right at this price level. The price broke resistance once but was quickly driven down by the strong selling pressure.


Key levels to the upside                   Key levels to the downside

1: $193.5                                          1: $178.6

2: $198                                             2: $167.8

3: $163.5

Ripple

XRP has not changed much in terms of price or overall position in the market. It has been stagnant in the past couple of days in terms of breaking any supports or resistances. However, its price did move slightly up in the past 24 hours. The price is still going up and down, performing price moves in the range of $0.286-$0.306. XRP’s price is currently $0.303.


XRP’s RSI is approaching overbought on the 4-hour time frame, which may indicate that bears will be kicking in soon. The key levels are remaining the same as the price did not move past any support or resistance levels.

Key levels to the upside                   Key levels to the downside

1: $0.31                                            1: $0.285

2: $0.325                                          2: $0.266 (major support)

3: $0.333                                          3: $0.245

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 5 – Markets in the green, BTC triangle pattern broken

The cryptocurrency market had a green day. Major cryptocurrencies’ volume is increasing due to new money coming into the markets. Almost every cryptocurrency in the top100 is currently in the

The cryptocurrency market had a green day. Major cryptocurrencies’ volume is increasing due to new money coming into the markets. Almost every cryptocurrency in the top100 is currently in the

The cryptocurrency market had a green day. Major cryptocurrencies’ volume is increasing due to new money coming into the markets. Almost every cryptocurrency in the top100 is currently in the green. Bitcoin went up 1.63%, and it is now trading at $9,315. Ethereum gained 2.02%, while XRP gained 2.84%.

Out of the top100 cryptocurrencies by market cap, the biggest gainer is Noah Coin, with 36.10% daily gain followed by Augur’s 16.12% and Aeternity’s 13.68% gain. The biggest loser of the day was iExec RLC, which lost 5.43% of its value.

Even though the prices among the cryptocurrency market started changing, Bitcoin’s dominance has stayed at almost the same level that it was yesterday. Its dominance now sits at 67.23%.

Cryptocurrencies ended up being in the slight red in the past 24 hours, which resulted in a small drop in market capitalization of the whole asset class. It now has a market capitalization of $250.69 billion, which represents an almost $4 billion increase when compared to the previous day.

What happened in the past 24 hours

There was no major fundamental news that sparked this upswing in the past 24 hours. The move probably started by Bitcoin breaking its triangle pattern (which can be seen on the daily time-frame), which, in turn, gave the other cryptocurrencies an initial push.

As a result, most cryptocurrencies saw a daily gain of around 2%, while some gained much more.

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Technical analysis

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Bitcoin

Bitcoin’s has broken its triangle pattern that it was forming on a daily time-frame. After breaking it upwards, it immediately pushed to test the $9,580 level, but failed to pass it. It is now consolidating at $9,300 level. As it moved further up from the support line of $9,115, we can expect another push to break the first key resistance or a downswing to test the suppport.


Bitcoin’s volume is on a slight upswing due to new money coming in with the push. However, there are no other significant increases.

Key levels to the upside                   Key levels to the downside

1: $9,580                                          1: $8,820

2: $9,740                                          2: $8,640

Ethereum

Ethereum’s bulls and bears are fighting for its place above or below the $185 line. After spending almost a week in between its $178.6 support line and $185 resistance line, Ethereum broke the ranging movement with an upswing, which reached $190. This move was, however, unsuccessful, as the price quickly dropped below the $185 line and returned to its previous state. Ethereum is currently trading at $183.5. Key levels are remaining the same as the move did not impact any support/resistance line standings.


Key levels to the upside                   Key levels to the downside

1: $185                                             1: $178.6

2: $193.5                                          2: $167.8

3: $198                                             3: $163.5

XRP

XRP has been pretty stagnant in the past couple of days in terms of breaking any supports or resistances. However, its price did move up in the past 24 hours. After giving up on pushing its price up to follow the extremely steep upward-facing trend line, XRP started performing price movements in a range of $0.286-$0.306. Lack of volume continued throughout the weekend and gave XRP no chance to make a move. However, the past 24 hours brought in new volume, and XRP spiked upwards.


The move did not last long and was quickly almost nullified with a big red candle, which brought the price from $0.306 to $0.296, with the tendency to fall further.

Key levels to the upside                   Key levels to the downside

1: $0.31                                            1: $0.285

2: $0.325                                          2: $0.266 (major support)

3: $0.333                                          3: $0.245

Categories
Cryptocurrencies

Everything You Need To Know About Crypto Currency Wallets

So you’ve bought your cryptocurrency, what’s next? Unlike fiat currency, cryptocurrency doesn’t have real-world institutions that keep and protect your money. And storing it on the crypto exchange may not

So you’ve bought your cryptocurrency, what’s next? Unlike fiat currency, cryptocurrency doesn’t have real-world institutions that keep and protect your money. And storing it on the crypto exchange may not

So you’ve bought your cryptocurrency, what’s next? Unlike fiat currency, cryptocurrency doesn’t have real-world institutions that keep and protect your money. And storing it on the crypto exchange may not be a good idea, especially with incidences of exchanges being hacked or turning out to be a scam. Thankfully, innovative people have come up with brilliant ideas to enable crypto users store their coins safely.

In this article, we’ll discuss what crypto wallets are, types of crypto wallets, and what you should consider before investing in one, and more.

What Is A Cryptocurrency Wallet?

A cryptocurrency wallet is a device, a physical medium, or a software program that stores private and public keys and allows users to transfer, receive, or spend their cryptocurrency. You don’t walk around holding your fiat money, do you? You store it in a bank or some type of wallet to protect it. That’s the same principle with crypto wallets. 

How Do Cryptocurrency wallets Work?

Many people don’t understand how cryptocurrency wallets work mainly because they try to associate them with traditional wallets. Unlike “real world” wallets, crypto wallets don’t store crypto ‘money.’ In fact, cryptocurrencies are not stored in any physical shape or form, so they can’t technically be stored in any single location. What exists is records of transactions stored in a public ledger or – the blockchain.

What crypto wallets store is the public and private keys- which are used to access your public cryptocurrency address and transaction signatures.

Both of these keys are just a combination of random numbers and letters. To better understand public and private keys, we can compare them to our bank account. The public key is like your bank account number – people who know it can send you money. But the private key is like your pin code or password – you’re the only one who knows it. The same logic applies to crypto wallets – people can send you cryptocurrencies, but you will need to use your passcode to access it.  

When someone sends you, let’s say, Bitcoin, they are essentially transferring ownership of the coins to your wallet’s address.

For you to access those coins and spend, store or transfer them to somebody else, your wallet’s private key should be compatible with the public address the coins are assigned to. If the two keys match, the balance in your wallet increases, while the sender’s decreases. There is no real exchange of the currency. The transaction exists in the form of “a transaction on the public ledger” and a change in the balance of both parties.

What are the Types of Cryptocurrency Wallets?

There are several types of crypto wallets that enable you to store and access your crypto coins. ‘Type’ here refers to the medium that the wallet is built on. This could be software, hardware, or paper. Software wallets can be on desktop, web, or mobile

☑️Desktop Wallets: These wallets are usually downloaded and installed on your computer. From then on, they are only accessible from that particular computer. By broad definition, desktop wallets provide more security than their online and mobile counterparts because they don’t rely on third parties for data. However, they are vulnerable to hackers or malware. But these wallets are a good solution for traders of small crypto amounts.

☑️Web Wallets: These wallets are cloud-based and store your private keys on a server. They can be accessed from any internet-enabled device from any location. They are controlled by a third party, too, which renders them susceptible to hacking and theft.  

Different web wallet providers provide different features, some of which can link to mobile and desktop features and sync your addresses across your devices.

☑️Mobile Wallets: These wallets run as an app on your phone. They are great solutions for active users who interact with their crypto coins often. They can be used to pay for goods at e-stores or physical stores by allowing you to scan a QR code.

Since any crypto user requires access to the blockchain network – which is large enough, mobile wallets use a simpler verification technology. This means they utilize small subsections of the blockchain by relying on certain trusted nodes to ensure they get the correct information.

While mobile wallets provide much more convenience, they are also more prone to hacking. And if someone gains entry to your phone, you could lose control of your funds.

☑️Hardware Wallet: these wallets store your private keys on a hardware device like a USB. Hardware wallets are by far the most secure of any wallet because they are immune from malware attacks, hacking, and funds cannot be transferred out of the device in plaintext. Some providers even offer hardware wallets with a screen that can verify and display important details, like a recovery phrase and details of the transaction you wish to make.

Depending on the provider, hardware wallets can be compatible with several web interfaces and support several currencies. You can easily make a transaction by simply plugging the device to an internet-enabled device, enter your passcode, and carrying out your transaction.

☑️Paper Wallet: These wallets are essentially printouts containing a public and private key. They are usually printed as QR codes, meaning you can quickly scan them and transfer them to a software wallet to carry out a transaction. This process is known as ‘sweeping’ and can also involve manually entering the keys on the device. A paper wallet can also be a piece of software that can generate the keys, which are then printed. 

Just like hardware wallets, paper wallets are immune to hacking and malware attacks. Still, you need to take certain precautions, like ensuring no one is watching you when you’re generating a paper wallet and using a printer that is not connected to the internet. Also, you need to keep your paper wallet in a dry and safe place to avoid exposure to water and wear and tear. You could even keep it in a sealed plastic bag or laminate it and store it in a safety deposit box.

How Secure Are Crypto Wallets?

The level of security of a wallet depends on its type and the service provider. Web-based wallets are more vulnerable since hackers could gain access and steal your coins. On the other hand, offline wallets are safer because they are not connected to the internet and don’t rely on a third party. 

The most important thing to remember is regardless of the wallet you’re using, whether online or offline based, your private key is what matters. You lose the private key, you lose your funds. Bear in mind that cryptocurrency transactions are irreversible, so utmost care is necessary. 

That said, here are some measures you can take to secure your online wallet: 

☑️Back up your wallet. This simply means don’t store everything online. Store only small, daily-use amounts online. Store the rest away in a highly secure environment, like a paper or hardware wallet. Offline storage will ensure your currency is safe in case of computer failure or virus attacks. 

☑️Update software. Hackers are usually smart people, and they keep devising new ways to infiltrate security software. So what do you do? You keep up with them. Ensure your software has the latest security enforcements. This applies to both your wallet software and computer, or mobile software. 

☑️Add layers of security. When it comes to online wallets, the more the security layers, the safer they are. This can mean setting long and complicated passwords. Use wallets that enable multi-factor authentication or other extra pin code requirements. You could also choose wallets that offer multi-signature transactions – meaning another user or users must approve before any transaction takes place. 

Can You Store All Your Cryptocurrencies In A Single Wallet? 

Some wallet providers design wallets dedicated to the storage of only type of cryptocurrency. For instance, Armory and Copay are designed to store only Bitcoin. But other providers allow you to keep a variety of cryptocurrencies. Instead of purchasing a wallet that only supports one currency, you may find it more convenient to purchase or signup one that allows you to store, access, and spend your coins from the same location.

Are Crypto Wallets Anonymous? 

Just like how your identity on a cryptocurrency blockchain is pseudonymous, i.e., recognizable by your public address, so are crypto-wallets. Your actual identity will not be there, but your wallet address could be traced back to you.

In addition, to prevent illegal use of cryptos, most exchanges will require your full identity – which means they know your identity is linked to your wallet transactions. 

Which Is The Best Cryptocurrency Wallet?

New crypto wallets are always being introduced. Your decision to pick a specific crypto wallet depends on how you intend to use it. Ask yourself these questions:

Do you need your cryptos for everyday use or for holding as an investment?

Do you need to access your wallet from anywhere or just at home?

Do you plan to use and/or trade several currencies or just one?

What is the security track record of your considered wallet?

What is the reputation of the manufacturer?  

With that, here are some of the tried and tested crypto wallets in the market: Atomic Wallet, Ledger Nano, Trezor, Armory, Mycelium, Bread Wallet, Copay, Electrum, Exodus, and Jaxx. 

Conclusion 

By now, you should have a pretty good idea of what a wallet is, how it works, and probably identified your preferred wallet choice. Remember, the type of wallet you choose should respond to your needs – be it ease of transfer or security from hacking attacks.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 4 – UK says Cryptocurrencies are not Money

The cryptocurrency market had another pretty slow weekend when looking at the price movement. Major cryptocurrencies’ volume is dropping each day. The volume drop did not translate into a price

The cryptocurrency market had another pretty slow weekend when looking at the price movement. Major cryptocurrencies’ volume is dropping each day. The volume drop did not translate into a price

The cryptocurrency market had another pretty slow weekend when looking at the price movement. Major cryptocurrencies’ volume is dropping each day. The volume drop did not translate into a price drop in most cases. If we take a look at the past 24 hours, most cryptocurrencies ended up being in the slight red, but a good minority did end up in the green. Bitcoin went down 1.98%, and it is now trading at $9,134. Ethereum lost 1.86%, while XRP lost 1.84%.

Out of the top100 cryptocurrencies by market cap, the biggest gainer is ILCoin, with 37.92% daily gain followed by Decred’s 17.29 and Chiliz’s 12.59% gain. The biggest loser of the day was Bytecoin, which lost 10.99% of its value.

Bitcoin’s dominance has stayed at almost the same level that it was on Friday. Its dominance now sits at 67.04%.

Cryptocurrencies ended up being in the slight red in the past 24 hours, which resulted in a slight drop in market capitalization of the whole asset class. It now has a market capitalization of $246.75 billion, which represents a $3.41 billion decrease when compared to the previous day.

What happened in the past 24 hours

The United Kingdom’s tax, payments, and customs authority, Her Majesty’s Revenue and Customs (HMRC), updated its guidelines on crypto taxation. The update is aimed towards both businesses and individuals.

HMRC released tax guidance updates that clarify on how businesses and individuals taxation will work when it comes to cryptocurrency. Her Majesty’s Revenue and Customs stated that it does not consider any form of cryprocurrency (at the moment) to be currency.

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Technical analysis

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Bitcoin

Bitcoin’s price is in a very interesting spot at the moment. It currently hovers around the $9,140 point, right above its $9,110 line of support. The interesting part is that its price on the daily chart is creating a small triangle pattern, which is extremely close to breaking. Bitcoin’s continous volume reduction is also an indicator of a “calm before the storm”.  It is more probable that the price will break downwards, but the upswing is not excluded either.


As mentioned before, Bitcoin’s RSI is slowly dropping. Its volume is also dropping day by day.

Key levels to the upside                   Key levels to the downside

1: $9,580                                          1: $8,820

2: $9,740                                          2: $8,640

Ethereum

Ethereum is having a hard time moving away from its immediate support and resistance lines. It spent another day in between its $178.6 support line and $185 resistance line, with no intention of going upwards or downwards. Ethereum’s volume, like Bitcoin’s, is slowly reducing. It is most likely that, if it doesn’t make a move itself, it will follow Bitcoin’s initiative in any direction. Ethereum is currently trading at $181.5.


Key levels to the upside                   Key levels to the downside

1: $185                                             1: $178.6

2: $193.5                                          2: $167.8

3: $198                                             3: $163.5

XRP

As seen in the previous days, XRP has finally given up on pushing its price up to follow the extremely steep upward-facing trend line. Lack of volume continued throughout the weekend. XRP is currently creating a doji candle on a daily time frame, which may indicate a small trend-reversal to the upside. XRP’s price remained stable over the past 24 hours, and it is now sitting at $0.291.


XRP’s volume and RSI value have stabilized for the duration of the weekend. However, many indicators suggest that XRP will soon make a move, which will impact both volume and RSI.

Key levels to the upside                   Key levels to the downside

1: $0.31                                            1: $0.285

2: $0.325                                          2: $0.266 (major support)

3: $0.333                                          3: $0.245

Categories
Crypto Daily Topic

The Mess That is Telegram’s $1.7 Billion Token Sale

The unexpected growth and ultimate dominance of messaging apps in the tech world – prime examples being WhatsApp, Facebook messenger, Viber, Telegram, and WeChat – has been phenomenal. Everyone who

The unexpected growth and ultimate dominance of messaging apps in the tech world – prime examples being WhatsApp, Facebook messenger, Viber, Telegram, and WeChat – has been phenomenal. Everyone who

The unexpected growth and ultimate dominance of messaging apps in the tech world – prime examples being WhatsApp, Facebook messenger, Viber, Telegram, and WeChat – has been phenomenal. Everyone who bought into the craze early enough will probably retire richer than they ever imagined.

Combine this staggering success with the emergence of blockchain technology, in particular, cryptocurrency, and you have a combination that no investment expert will advise against. If you doubt it, ask yourself why Facebook is so adamantly pursuing the Libra – or why a simple search for messaging brings up crypto as a related search.

Considering how privacy-focused the world of crypto is, and seeing how fast the crypto industry is evolving to revolutionize every other industry, it was only a matter of time before it catches up with messaging. This is where Telegram’s messaging app rules.

Telegram may not be the top messaging app in the world by number of users, but it ranks highly. This is largely because of its speed and history of focus on user security and privacy. The app’s enhanced privacy protection is one of the top reasons why it has grown from obscurity to having over 200 million active users in just over five years.

It is an open secret that Telegram enjoys fanatic following and loyalty in the crypto world, and it is for this reason that the company was able to raise over $1.7 billion from private token sales as it prepared to launch its ICO.

Telegram Open Network’s breakthrough private sales

Telegram’s most recent and most controversial endeavor has been the launch of its own token, the Gram or Telegram Open Network (TON). The third-generation blockchain token that promised ‘superior capabilities’ was an instant hit, with demand hitting the roof even before it was official. Telegram’s founder, Pavel Durov, launched the ambitious TON project as a future payment option that would be used outside the global regulatory system, a lot like Facebook’s Libra would have.

TON was supposed to have a record-breaking ICO that would see them develop a blockchain-based one-of-a-kind decentralized messaging internet. In an industry with over 2.5 billion users already and projected to have about 3 billion by the end of 2022, their idea for a new communication platform that is independent from traditional bottlenecks and detractors was grand.

The tightly controlled process the company used to raise funds ended in disarray as its earliest backers sold their tokens too early, earning good profits in the process. While the company initially aimed to raise $1.2 billion through invite-only private sales and public offerings, it extended its target to $1.7 billion, which it raised from private backers before the public sale was canceled altogether.

The trouble with SEC

There is a universal disdain from governments and regulatory bodies for companies and technologies that are outside their reach. This explains why Telegram is always under scrutiny, and unnecessary controversies world over. Shortly after the company raised the funds it needed to bankroll the TON, the United States Securities and Exchange Commission (SEC) abruptly declared that the token offering was illegal.

Telegram had raised the entire $1.7 billion by selling the tokens to qualified investors in two rounds. The company had submitted a Form D, required when selling securities without registering with the SEC, back in February 2018. However, SEC found fault in the process in that qualified buyers of Gram tokens resold their assets in violation of the Form D exemption.

The regulator quickly obtained a court order to stop Telegram from distributing the Gram and outlawing trading in it in the United States. Hearing for the case is scheduled for February 2020.

What does this mean for the buyers, the public with interest in the Gram, and, more importantly, for Telegram?

While the SEC has the authority to stop the sale of Telegram’s tokens in the US, there is little it can do to prevent it from being traded openly in the international market. The whole point of Telegram launching its own token was to beat such regulatory bottlenecks and launch a genuinely open asset that the entire world can use with minimal interference from the bureaucrats. However, the influence of the SEC should not be underestimated, considering how early in its stages of conception, the Gram is.

The move by the SEC has had multiple adverse effects on the investors of TON:

☑️ First, they have been forced to choose between making a guaranteed 23% loss on their investment on the token, or sitting tight and waiting (hoping for) the token’s official launch in April 2020.

☑️ Public investors who bought the TON at $4 will be under pressure to sell it off along with the first and second round private investors who bought it at $0.37 and $1.37, respectively.

☑️ The move by the SEC may have set a precedent that will deter the Gram, or any other such blockchain tokens, from ever successfully raising funds in the US.

Why does the Gram stand out?

There are thousands of crypto tokens in use and being traded in the US today. Despite the TON being launched by a popular messaging company with a strong foundation, what makes it so unique as to attract the wrath of SEC?

In our view, Telegram’s token has three major strengths that makes it stand out:

☑️ Telegram’s TON promises lightning transaction speed – the kind that no other blockchain platform is capable of. It is estimated that TON’s third-generation blockchain platform will be capable of executing over 10,000 transactions every second, a speed which even Ethereum is not capable of.

☑️ Great infrastructure: Telegram promises to deploy massive storage and processing power to the decentralization of TON’s files. The already-popular messenger app will be an added advantage for quick and easier user onboarding.

☑️ The platform is already popular and trusted. Telegram already has over 200,000 loyal and informed users and a brand that sells itself. The Gram does not need to start from scratch, and neither does it have a baggage of distrust like Facebook’s Libra.

There is a vast potential for growth and prosperity of the Gram, despite the mess with the SEC. Early investors have proven that the company has the backing of the crypto world, and the company has shown that it has the tech to deliver on its promises. It is unclear what the way forward is for the Gram, but for now, we just wait.

Categories
Cryptocurrencies

What Can You Buy With Crypto Currencies?

Cryptocurrencies have come a long way. In the not-too-distant past, most people used crypto mainly for speculation, and it is easy to see why. There were countless reports of people

Cryptocurrencies have come a long way. In the not-too-distant past, most people used crypto mainly for speculation, and it is easy to see why. There were countless reports of people

Cryptocurrencies have come a long way. In the not-too-distant past, most people used crypto mainly for speculation, and it is easy to see why. There were countless reports of people who had become overnight millionaires as a result of investing in crypto. Still, such rosy stories were quickly erased from people’s minds when the very opposite started happening. The group that invested after the first windfall was quickly impoverished by making belated and ill-advised decisions. With many and frequent bubbles, the crypto market was beginning to look like a graveyard, but things have since acquired a reasonable measure of stability.

Fast forward to 2019! While speculation was the overriding factor making people invest in crypto, the modern user of cryptocurrencies has other and even more important considerations. People want to know where and how easily they can spend their cryptocurrencies. That is why you’ll find that many online retailers have readily embraced crypto, and there are countless online stores where these currencies are readily accepted. 

One of the leading online retailers that have been accepting cryptocurrencies for a long time is Overstock, whose payments are processed using the third party site Coinbase. Other well-known sites include eGifter, a website that sells online cards, and Fancy.com.

Even when online retailers do not have an in-house system that allows them to accept cryptocurrencies, it is now possible for almost any kind of retailer to make this possible. There are plenty of platforms and apps that make it possible for retailers to accept crypto payments, and some of the leading ones include Square and Shopify. The latter, for instance, has a global clientele and has hundreds of thousands of online merchants using its software platform. This basically means that you are likely to get any product or service from an online seller as long as the business uses the Shopify software. Moreover, where most other platforms are limited to Bitcoin, Shopify makes it possible for merchants to accept payments in a host of other cryptocurrencies.

You Can Still Use Crypto Even When Retailer Site Doesn’t Expressly Say So

Any mention of online shopping must bring the giant retailer, Amazon, to mind, and you must wonder whether it is possible to make purchases using cryptocurrencies. While Amazon does not allow for purchases using cryptocurrencies, you can make an indirect payment using Purse.io. This ability to make use of cryptocurrencies even when the retailer site does not expressly say so is not limited to Amazon.

At the end of the day, what really matters is where you have stored your cryptocurrency, and there are various ways in which you can make the storage to make your shopping hassle-free. If you are in the habit of shopping using your debit card, for example, you have the ability to link your cryptocurrency to a debit card. These cards are usually backed by the leading card companies such as MasterCard, and any location accepting MasterCard will make it possible for you to use the cryptocurrency.

Where Speed and Privacy Are Of the Essence

Players in the hospitality industry were among the first people to embrace the use of cryptocurrencies, and it is easy to see why. In a world where people constantly feel that their privacy is being intruded upon, joining the crypto world ensures, among other things, that the individual’s privacy is protected. That is why one of the leading travel booking companies, Expedia, was one of the first to embrace this kind of currency.

You can, therefore, book for your flight and accommodations on the site using cryptocurrency, thus making the entire travel experience seamless. Another renowned travel site that accepts cryptocurrency is bitcoin.travel. On the site, you can pay for your entire package from travel to accommodation and even attractions at the destination using bitcoins. Other players offering similar services and accepting cryptocurrencies are Travala, Future Travel, and CheapAir.

When it comes to speed of execution, paying using cryptocurrencies eliminates most of the hurdles that were prevalent when non-digital payment methods were used. That is why you’ll find that some of the companies that have embraced crypto include AT&T, one of the leading global carriers. And as if to say that this might be the favorite way to make payments now and in the future, the ever-innovative Virgin Group, through its subsidiary, Virgin Galactic (the company that was expressly created to offer space travel) also accepts payments via cryptocurrencies.

The speed of execution is also what makes payments via cryptocurrencies a favorite for professionals in IT. Many domain creators such as NameCheap (which sells domains) accept crypto. In addition, a leading online retailer of computer hardware, NewEgg, also accepts bitcoin payments, as does the tech giant Microsoft.

Charities and Non-Profits

In addition to the many merchants accepting cryptocurrencies, there are also many charities and non-profits to which you can make a donation using these currencies. One of the most well-known charities that accept such donations is Save the Children, which tries to provide for the basic needs of impoverished children globally. And if you have been enjoying the services provided by Wikipedia and wish to make a donation, you can easily do so using bitcoin.

Crypto Is All-Encompassing

When it comes to cryptocurrency usage in 2019, perhaps the real question should be what you cannot buy rather than what you can buy using cryptocurrencies. Whether you want to pay for your pizza or shop online for your favorite coffee, buy a limo, or even pet food, the chances are that there’s a retailer ready and willing to accept bitcoin or some other cryptocurrency. The acceptance of cryptocurrencies is also global, and that is why you’ll find that on top of online stores, many brick and mortar stores around the world accept cryptocurrencies.

Of course, there’s much that needs to happen to make cryptocurrencies the ideal way to shop. And this will only occur when more companies start accepting cryptocurrencies received directly from the buyer rather than the current trend where most merchants only accept payments made via debit cards or payment processors. When all is said and done, you can buy almost anything using one or other cryptocurrencies.

Categories
Crypto Market Analysis

Daily Crypto Review, Nov 1 – China warning against crypto-speculation, Bitcoin crossing a major milestone

The cryptocurrency market had yet another day of slight decline while consolidating at the same price levels. Major cryptocurrencies are losing volume each day, which also translates in slight drops

The cryptocurrency market had yet another day of slight decline while consolidating at the same price levels. Major cryptocurrencies are losing volume each day, which also translates in slight drops

The cryptocurrency market had yet another day of slight decline while consolidating at the same price levels. Major cryptocurrencies are losing volume each day, which also translates in slight drops in price. Most cryptocurrencies ended up being in the slight red. Bitcoin went down 0.01%, and it is now trading at $9,107. Ethereum lost 0.81%, while XRP lost 0.62%.

Out of the top100 cryptocurrencies by market cap, the biggest gainer is Thunder token, with 63.77% daily gain followed by Lambda’s 27.32 and WINk’s 20.72% gain. The biggest loser of the day was Noah Coin, which lost 55.43% of its value.

Bitcoin’s dominance has increased slightly over the past 24 hours because many cryptocurrencies lost a bit more value than Bitcoin. Its dominance now sits at 67.4%, which represents a 0.2% gain when compared to its position 24 hours ago.

Cryptocurrencies ended up being mostly in the red in the past 24 hours. The industry’s market capitalization fell slightly when compared to yesterday’s value. It now has a market capitalization of $244.6 billion, which represents a $1.3 billion decrease when compared to the previous day.

What happened in the past 24 hours

Bitcoin has reached $1 billion in cumulative transaction fees right on the day of its “birthday” on Oct 31. It has been confirmed that more than 200,000 Bitcoin has now been paid in transaction fees since its launch in 2009.

After China announced that it is accepting cryptocurrencies as a technology worth looking at and deciding to even creating their own, they are calling for caution when it comes to crypto investments.  People’s Daily, a newspaper controlled by the Communist Party of China, announced that:

“The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”

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Technical analysis

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Bitcoin

Bitcoin’s price is exactly where it was 24 hours. It currently hovers around the 9,110 point and hanging on a thread which is line of support. Bitcoin is continuing to struggle with the reduced upward momentum and currently has higher percentage of dropping in price. With declining volume and dropping RSI, if Bitcoin falls too far under the area of support at which it stands now, we can expect a downward move to face $8,800 levels.


As mentioned before, Bitcoin’s RSI is slowly dropping, but a bit slower than it did yesterday. It now stands at 45. Bitcoin’s volume is also dropping day by day.

Key levels to the upside                   Key levels to the downside

1: $9,580                                          1: $8,820

2: $9,740                                          2: $8,640

Ethereum

Ethereum has spent another day in between its $178.6 support line and $185 resistance line. The past day went without any attempts of price movement to the upside or downside. Ethereum is in a much safer space than Bitcoin as it is not fighting a support line that could decide its short-term future. However, as these two cryptocurrencies are extremely correlated, Bitcoin’s price drop could result in Ethereum’s price drop without any fundamental or technical indicators suggesting that it should happen.


Key levels to the upside                   Key levels to the downside

1: $185                                             1: $178.6

2: $193.5                                          2: $167.8

3: $198                                             3: $163.5

XRP

XRP has finally given up on pushing its price up to follow the extremely steep upward-facing trend line. Lack of volume and therefore buying pressure made it impossible to follow the path of this line. XRP’s price remained pretty stable over the past 24 hours, and it is now sitting at $0.292.


XRP’s volume and RSI value seem to be dropping today, unlike yesterday, which was remarkably stable for XRP when it comes to these indicators.

Key levels to the upside                   Key levels to the downside

1: $0.31                                            1: $0.285

2: $0.325                                          2: $0.266 (major support)

3: $0.333                                          3: $0.245

 

 

 

 

Categories
Crypto Guides

Understanding The Basics Of Binance Coin

Introduction
For crypto enthusiasts, Binance is a well-known word as it is one of the largest cryptocurrency exchanges. The word Binance is a portmanteau of Binary and Finance. Binance coin

Introduction
For crypto enthusiasts, Binance is a well-known word as it is one of the largest cryptocurrency exchanges. The word Binance is a portmanteau of Binary and Finance. Binance coin

Introduction

For crypto enthusiasts, Binance is a well-known word as it is one of the largest cryptocurrency exchanges. The word Binance is a portmanteau of Binary and Finance. Binance coin was initially launched on the Ethereum platform and later was moved on to the Binance’s proprietary blockchain (Binance Chain).

Binance was founded by its CEO Changpeng Zhao who is known as CZ in the world of cryptocurrency, with co-founder & CTO Roger Wang.

Objective

The objective of the Binance coin creation was to serve as a medium for transaction fees, which includes trading fees, exchange fees, and listing fees on the Binance exchange. Just like Ether fuels the Ethereum blockchain platform, Binance coin fuels the Binance exchange. Like any other cryptocurrency, this coin can be traded as well in many of the cryptocurrency exchanges. Binance initially had its headquarters in China, and then in Japan, because of local government regulations. Finally, it had to move its headquarters to Malta.

Binance Coin ICO

Binance coin had its Initial Coin Offering from June 14th to June 27th in 2017. Before the  ICO happened, the network minted a total of 200 million tokens. 50% of the total tokens mined (100 million) were reserved for the ICO, and they raised approximately $15 million. The funds raised are used in three different ways; 35% of the funds raised were used to build and maintain the platform. 50% of the funds were used for branding and marketing the platform. The remaining 15% are reserved for emergency contingencies.

Fee model of the exchange

As mentioned earlier, in Binance exchange, BNB acts as a token for transaction fees. There is a benefit for using BNB token for transaction fees in the exchange. At present, Binance charges 0.1% on each trade, but if we use BNB token for transacting, the exchange offers a discount. For the first year, the concession stands at 50%, and from there on, it will be halved till the 4th year. That means, for the second year the discount would be at 25%, the third year it is 12.5% and 6.75% for the fourth year. From the fifth year onwards there wouldn’t be any discounts. Hence, there are high chances of the coin value to get depreciated as the discount decreases for each passing year. Therefore to combat the depreciation, Binance plans to burn 50% of its coins, i.e., a total of 100 million coins overtime to stabilize the currency.

Consensus 

Binance Chain uses the Tendermint Byzantine fault tolerance (BFT) consensus mechanism. The network uses different types of nodes in the system to validate and broadcast the transactions to other nodes. Validator nodes, as the name suggests, validate the transactions in the network. Witness nodes act as a witness for the consensus process and broadcast transactions to all the nodes involved in the network. Finally, the accelerator nodes are owned by the organization to speed up the validation process.

Market Cap

Binance coin stands in eighth place in terms of market cap with a value of approximately 3 billion dollars. Each coin is traded at $19.91 as of 28/10/2019. The 24-hour trading volume is $353 million, while a total of 155 million BNB’s are available in the market as of now.

Conclusion

Binance coin is one of the most innovative cryptos out there in terms of its consensus and usage. As discussed, the founders plan to burn 50% of their coins to stabilize the value of the currency. 20% of the profits are to be burnt every quarter, eventually burning 100 million of the existing tokens. By looking at the history of the coin, the industry experts believe that the currency will sustain the market and emerge as one of the leading cryptocurrencies due to its strong backing and security.

Categories
Cryptocurrencies

Blockchain – Public, Distributed, Global Ledgers

You have probably already heard the term ‘Blockchain’ in the context of a new technological innovation. You would not be wrong to compare this advancement with other significant innovations such

You have probably already heard the term ‘Blockchain’ in the context of a new technological innovation. You would not be wrong to compare this advancement with other significant innovations such

You have probably already heard the term ‘Blockchain’ in the context of a new technological innovation. You would not be wrong to compare this advancement with other significant innovations such as the Internet because of its far and wide-reaching applications. What makes it so unique?

Consider an online Google document. When you create a document and share it with two other people, the original document remains, but everyone has access to it. The document is considered ‘decentralized’ since it can be accessed and modified by multiple people at the same time. The best part about such an online document is that everyone sees all the changes (and can even track them) when they are made, making it very transparent.

While blockchain is a tad more complicated technology than a Google doc, this analogy lays bare three vital features of blockchain:

☑️It is a digital record of events (transactions) that is distributed among many people. It is not copied or transferred copies.

☑️It is decentralized. This means that multiple individuals have real-time access to the asset and is not ‘owned’ or ‘controlled’ by a single entity or person.

☑️It is transparent. Being a ledger, all the people with access to it can trust the document since all the changes are preserved when made. 

So, what is blockchain?

Blockchain is best described as a distributed database. It is a storage technology where a digital ledger of transactions are stored in groups of transactions or sequence of blocks, chained together and distributed among many users in the network. This is where the term ‘blockchain’ originates.

Because blockchain is a way to keep records of items stored in millions of computers all over the world, it is essential to understand that it is not a device or currency. Think of it as an incorruptible ledger of transactions that are connected to each other such that one cannot be altered without requiring the alteration of all the other linked records.

Blockchain is undeniably an ingenious invention that is already conquering every aspect of modern human life – almost as much as electricity and the Internet did. This technology was the brainchild of one or a group of individuals known by the pseudonym Satoshi Nakamoto. To this day, the identity of Satoshi Nakamoto is still unknown.

Satoshi Nakamoto introduced blockchain to the world sometime in 2009 with the publication of the Bitcoin whitepaper. This innovation was largely inspired by the 2007/8 financial crisis, whose primary cause was the manipulation of the property market by financial banks. Bitcoin emerged as a currency alternative that would be free from manipulation, devaluation, taxation, or control by a central body. However, blockchain, the technology on which it runs, has since then evolved into something much more significant than just money and touching on almost every industry.

The humble beginnings of Blockchain

Contrary to what most people believe today, blockchain technology did not just arise out of nothingness with the publication of the Bitcoin whitepaper in 2008. Before it found its application in cryptocurrency, blockchain was a concept in computer science that had been around since 1979. In particular, it was theorized for use, in its primitive form, in the domains of data structures and cryptography.

With the invention of the hash tree by Ralph Merkle, patented as the Merkle tree in 1979, the first form of blockchain was already in practical use. Back then, the hash tree was used to handle and to verify data transferred between computer systems in peer-to-peer networks. The hash tree proved useful in validating data and ensuring the integrity of the data in the receiving system. This technology also ensured that false data was not transmitted and that users could prove the integrity of information shared using these early computers.

By 1991, the Merkle tree had evolved enough to create a chain of secured blocks of information. The series of data records, designed to be connected to previous blocks in the series, now contained a history of all the chains in the tree. With this addition, blockchain was born.

When Satoshi Nakamoto conceptualized the idea of a distributed blockchain that contained a secure history of all the data exchanged in the network, it gave rise to a world of possibilities that resulted in the invention of Bitcoin. What made this possible was that the security and transparency of transactions in the peer-to-peer network could be timestamped, and each transaction could be verified over the internet. The best part of the new technology was that it could be managed autonomously, and no single entity could claim absolute authority.

But what makes blockchain special?

Blockchain is a string of secured data that cannot be controlled by a single authority. The shared, immutable ledger that the connected chains of data forms has industry-disrupting capabilities for the simple reason that it is an ideal and practical democratized system.

While the information on this system is available for everyone to see and verify authenticity, it is almost impossible to alter, hence trusted. When blockchain is applied to any industry, it brings this nature of transparency with it, making it easy for countless individuals to be involved in it while maintaining accountability for every action or activity on the ledger.

Blockchain was first demonstrated to be practical and effective with the release of the Bitcoin Whitepaper, and it was quickly applied in digital currency. Soon after, the tech community found a lot many useful and practical uses of blockchain, and many more were theorized not so long later. One of the top features of blockchain that stood out almost immediately was that transactions carried out on the network carried no cost whatsoever. However, infrastructural investment was necessary to make it functional.

Benefits of global distributed ledgers

Consider the blocks of information on the blockchain as collections of data, much like records of financial accounts on a ledger. The chain, with all its benefits, is a very simple yet ingenious way to pass the data from one point to another in a secure and verifiable manner. The sender initiates the transaction, which is verified by hundreds, thousands, or even millions of computers that are part of the network.

When a block of transactions is verified, it is added to the chain and safely stored on the network, with a copy being stored on every computer on the network. The copy of the transaction will not only be unique in the record, but also in the history of records within the chain. This means that for a party on the network to alter or falsify the record, they would have to alter all the records in the chain sitting on all the computers on the network at the same time. This is almost impossible because it would take a lot of resources.

Bitcoin was a hugely successful and first virtual currency running on the oldest blockchain network because this format of storing information and conducting transactions could be trusted by all the parties in the network.

In summation, blockchain’s core benefits that make it ideal for use in cryptocurrency are:

☑️Efficiency and speed: Transactions on a blockchain can be completed much faster and more efficiently compared to the paper-heavy traditional processes that often involve a third-party. Considering that record keeping on a blockchain system is carried out on a single digital ledger available in real-time to all the peers in the network, clearing and settlement are super fast.

☑️Enhanced security: Before being recorded, transactions on a blockchain must be agreed upon aforehand. Once approved, transactions are encrypted and linked with previous and next transactions in a way that makes them tamper-proof. This is what makes blockchain ideal for use in any industry where the protection of sensitive data is crucial – from governance and financial services to healthcare and manufacturing.

☑️Great transparency: Since blockchain is essentially a digital ledger technology where all participants keep a copy of all ‘documentation,’ the data on it is not only alter-proof but also consistent and transparent. Data and transactions carried out in a transparent manner can be trusted by anyone who has access to it and can verify authenticity.

☑️Better traceability: Companies that deal in products that are manufactured and traded in complex supply chains often have a hard time tracing items in the market back to their origins to verify authenticity. With blockchain, each product can carry with it a history of transaction data that can go a long way in preventing fraud. To make this practical, manufacturers and distributors would need to record exchanges of the goods on a blockchain in such a way that an audit trail can show every stop and change of hand a product underwent.

☑️Lower costs of transactions: Every business needs to cut the costs of transactions as much as they can to increase their profits. Businesses that adopt distributed ledgers in their operations will need fewer third-parties and middlemen to make guarantees or carry out transactions since this technology builds trust between trading partners. They just need to trust the data on the blockchain to minimize the need to review every trading process or documentation.

The extent of blockchain disruption today

Make no mistake about this: blockchain is a very disruptive technology that is already revolutionizing how the world works – even if you do not ‘feel’ it yet. While you may have already heard of how it is shifting the way we use the internet and how we view money, the global economy is quickly adapting to inevitable takeover by the digitization of assets.

The fundamental shift from the present-day Internet of information to the age of distributed data as assets is a clear sign that the new global economy with no intermediaries is happening, and nobody – not even the biggest banks and multinational tech companies making money off data – can stop it.

Blockchain technology was originally developed to help solve the various economic challenges facing the financial industry. But it has proven that it can achieve much more.

It can be programmed to record and store virtually any other form of data in any industry.

As a result, we have seen the development of different types of Blockchain, each of which is aimed at helping solve more than just financial challenges. Ethereum, for instance, has smart contracts and many other applications, which we will explain later.

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 31 – China’s Official Cryptocurrency, XRP’s Daily Transactions Through the Roof!

The cryptocurrency market had a slow day price-wise, which might not be a bad thing. Most of the cryptocurrencies’ prices remained near yesterday’s levels even though their volume is slowly

The cryptocurrency market had a slow day price-wise, which might not be a bad thing. Most of the cryptocurrencies’ prices remained near yesterday’s levels even though their volume is slowly

The cryptocurrency market had a slow day price-wise, which might not be a bad thing. Most of the cryptocurrencies’ prices remained near yesterday’s levels even though their volume is slowly dropping. The past 24 hours were quite uneventful as far as the price of top cryptocurrencies is concerned. Most cryptocurrencies ended up being in the slight red. Bitcoin went down 1.14%, and it is now trading at $9,109. Ethereum lost 2.02%, while XRP lost 1.43%.

Out of the top100 cryptocurrencies by market cap, the biggest gainer is Molecular Future, with 66.88% daily gain followed by Seele and IOST with 11.91% gain for both. The biggest loser of the day was Swipe, which lost 42.05% of its value.

Bitcoin’s dominance remained the same over the past 24 hours. Its dominance now sits at 67.22%, which is almost exactly where it was 24 hours ago.

Cryptocurrencies ended up being divided between being in the green or red in the past 24 hours. The industry’s market capitalization fell slightly when compared to yesterday’s value. It now has a market capitalization of $245.9 billion, which represents a $2.7 billion decrease when compared to the previous day.

What happened in the past 24 hours

It has been announced that China is preparing for the launch of its cryptocurrency. The initiative is quickly gaining traction as China is removing online posts that claim blockchain technology is a scam. China’s President Xi Jinping called launching their state-backed cryptocurrency an “important breakthrough” that should be developed.

Taking a look at the crypto data-tracker BitInfoCharts shows that XRP’s daily transactions now account for more than 50% of all the cryptocurrency transactions in the past 24 hours.  In the same time period, Ethereum came in second while Bitcoin and Bitcoin SV shared the third place. The last time we’ve seen XRP’s daily transactions being this high was the middle of the December 2017 bull run.

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Technical analysis

_______________________________________________________________________

Bitcoin

Bitcoin’s price was pretty stable in the past 24 hours. The $9,110 price level that it’s at currently indicates Bitcoin’s struggle, as it is sitting right on top of the support line. With declining volume and dropping RSI, Bitcoin looks like it’s getting ready for a bounce or a drop very soon. If the $9,110 line gets broken, its support will be at the $8,800 levels.


As mentioned before, Bitcoin’s RSI is slowly dropping along with its volume. This indicates a lack of buying pressure and preparation of a move (to the upside or downside – depending on the situation).

Key levels to the upside                   Key levels to the downside

1: $9,580                                          1: $8,820

2: $9,740                                          2: $8,640

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Ethereum

Ethereum spent another day almost mirroring Bitcoin. After the big price surge, a consolidation needed to happen to make this move healthy. However, the dropping volume and RSI levels show the lack of strength to keep at these levels. Ethereum dropped below the $185 level which is now its immediate resistance. It is hovering right below this line and has made several attempts of breaking it, but failed every single time. If Ethereum breaks $185 it might be possible to see another swing upwards. However, this seems unlikely at this point.


Key levels to the upside                   Key levels to the downside

1: $185                                             1: $178.6

2: $193.5                                          2: $167.8

3: $198                                             3: $163.5

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XRP

XRP has proven to be a separate currency with not much influence from Bitcoin. On top of that, its transaction volume has been skyrocketing. While it has been following the upward-facing trend line until today, it seems to have stopped doing that. The steepness of the line was too much for XRP to handle. However, XRP did not lose any of its value, it just stopped climbing up along with the trend line. It is now trading in between its immediate support (which is at $0.285) and resistance ($0.31)


XRP’s volume, as well as RSI value, seems to be quite stable and without any significant fluctuations.

Key levels to the upside                   Key levels to the downside

1: $0.31                                            1: $0.285

2: $0.325                                          2: $0.266 (major support)

3: $0.333                                          3: $0.245

Categories
Crypto Videos

Cryptocurrency – Coin Vs Token – Which Is Better?

https://youtu.be/9ON1S4_EMaM
Cryptocurrency Coin vs. Token
Before we jump into the comparison, let’s start with understanding the definition of cryptocurrencies. Cryptocurrencies are digital currencies that are secured with encryption. This

https://youtu.be/9ON1S4_EMaM
Cryptocurrency Coin vs. Token
Before we jump into the comparison, let’s start with understanding the definition of cryptocurrencies. Cryptocurrencies are digital currencies that are secured with encryption. This

Cryptocurrency Coin vs. Token

Before we jump into the comparison, let’s start with understanding the definition of cryptocurrencies. Cryptocurrencies are digital currencies that are secured with encryption. This encryption is created by using cryptography, which is simply the use of encryption techniques to secure and verify the transfer of transactions.
Bitcoin is considered the first decentralized cryptocurrency. It is powered by blockchain, a public ledger that records and validates all transactions that happen on it. Even though Bitcoin was not the first cryptocurrency, its creation is extremely important as it is the first distributed and decentralized one. The creation of Bitcoin managed to start a whole market of other cryptocurrencies (coins and tokens) that are regarded as cryptocurrencies even though most of them do not fall under the definition of a “currency,” but rather try to solve a different problem in society.

Cryptocurrency Categorisation

As previously mentioned, the term cryptocurrency is not completely accurate for most cryptocurrencies. In order for a cryptocurrency to be considered a currency, it technically needs to represent a unit of account, a store of value, and a medium of exchange.
These currency characteristics are inherent within Bitcoin, and since the whole cryptocurrency industry started with Bitcoin’s creation, the rest of the cryptocurrencies began being called currencies. In order to better understand the nature of cryptocurrencies, there are a couple of categorizations. We will talk about the most common one today. Cryptocurrencies can be separated into:
Coins (Altcoins), Tokens.

Coins


Alternative cryptocurrency can also be called altcoins or simply “coins.” Altcoin simply refers to coins that are not Bitcoin. Most altcoins came to life as a fork of Bitcoin, built using Bitcoin’s original protocol with a couple of changes to its underlying codes. These changes are, even though seemingly small, what actually sets these new coins apart from Bitcoin, as they offer a different set of features to it.
A concept of modifying open source codes to create new coins is called hard forks, while a change to a code that does not create a new cryptocurrency is called a soft fork. A few examples of altcoins that came from Bitcoin’s code are Namecoin, Litecoin, Dogecoin, Bitcoin Cash, Bitcoin Private, Auroracoin…
However, not all altcoins came from Bitcoin’s code. There are altcoins that have created their own Blockchain as well as a protocol that supports their native currency.

These coins include Ethereum, Ripple, Bitshares, NEO, Waves. What sets altcoins apart is that they each possess their own independent blockchain. This blockchain is where all transactions of their native currency occur.

Tokens

Tokens are considered a representation of an asset or utility that resides on top of another blockchain. Tokens do not have their own blockchains as altcoins do. They can represent basically any asset that is fungible and tradable. This could range anywhere from commodities to loyalty points.

Creating a token is a much easier task than creating a coin. This is simply because the code from a particular protocol does not have to be modified in order to create a token. Platforms such as Ethereum or Waves offer certain guidelines which, if followed, allow anyone to create a token. Creating tokens is made possible through the use of smart contracts. Smart-contracts are programmable computer codes that are self-executing as long as the terms are met. They don’t need any third-parties to operate.
As tokens built on the same blockchain have the same template, they share many characteristics. This provides a standard interface for interoperability between tokens, which allows people to store different types of tokens on a single wallet. A great example is the ERC-20 standard on the Ethereum blockchain, which has been used to create over a thousand tokens. Most (if not all) of these tokens can be stored on ERC-20 wallets.

Tokens are mostly created and distributed through an Initial Coin Offering (ICO). An ICO is simply a way of crowdfunding where developers fund their projects through the release of a new token or a promise of a token. The ICO market has been filled with successful as well as very unsuccessful projects. There were also a lot of scams on the market as people were buying anything and everything during the time of the cryptocurrency price boom of late 2017. Nowadays, the ICO market has died down compared to 2017 but is still active. However, people are a lot more cautious when it comes to where they invest their money.

Final Thoughts

The main difference between coins and tokens is in their structure, where coins are separate currencies with a separate blockchain, while tokens are cryptocurrencies that operate on top of an already-made blockchain.
When it comes to the number of coins and the number of tokens, the majority of cryptocurrencies in existence are tokens as they are simply easier to create.

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 30 – UK discusses Crypto Regulation, Chinese Mining Company files for $400 mill IPO

The cryptocurrency market had a slow day price-wise. Most prices stayed on the same levels even though the volumes, as well as RSI values, fell. The past 24 hours were

The cryptocurrency market had a slow day price-wise. Most prices stayed on the same levels even though the volumes, as well as RSI values, fell. The past 24 hours were

The cryptocurrency market had a slow day price-wise. Most prices stayed on the same levels even though the volumes, as well as RSI values, fell. The past 24 hours were uneventful as far as price is concerned as most cryptocurrencies are either in the slight green or slight red. Bitcoin went down 1.72%, and it is now trading at $9,238. Ethereum gained 0.44%, while XRP gained 1.07%.

Bitcoin’s dominance increased over the weekend even as cryptocurrencies rose in price. However, it is on the downturn in the past 48 hours. Its dominance now sits at 67.3%, which represents a 0.4% decrease when compared to its dominance value 24 hours ago.

Cryptocurrencies ended up being divided between being in the green or red in the past 24 hours. The industry’s market capitalization fell slightly when compared to yesterday’s value. It now has a market capitalization of $248.6 billion, which represents a $2.3 billion decrease when compared to the previous day.

What happened in the past 24 hours

There was no major news in the cryptocurrency industry in the past 24 hours that could shake the prices up or down. The volumes, as well as RSI values, are descending. These are just indicators of a healthy consolidation.

The UK lenient approach to crypto regulation might change by Jan 10, 2020. This may be done with the implementation of the “Fifth Money Laundering Directive.” Eric Benz, CEO of Changelly, said that the UK’s regulatory framework is just trying to keep up with the cryptocurrency market, which is growing. He said:

“I do think regulation is a good thing but only if done in a way, which suits this new market. Applying traditional archaic regulation to crypto simply will not work as it’s been designed in its nature to avoid regulation. There has to be a much better understanding of the market and technology on behalf of Governments not just in the U.K. but globally.”

Chinese cryptocurrency mining company Canaan Creative filed for an IPO on Oct 28. Canaan intends to be the first publicly-traded crypto-mining company. Canaan Creative filed for an IPO with the U.S. Securities and Exchange Commission to raise $400 million by selling its shares on the Nasdaq under the ticker CAN.

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Technical analysis

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Bitcoin

There were no significant changes in Bitcoin’s price in the past 24 hours. Ever since Oct 26, which is right after Bitcoin surged up to $10,430, the price was steady and in the consolidation state. Its price is currently hovering around the $9,220 mark, which is a bit lower than the $9,450 that it was trading at yesterday.


Bitcoin’s RSI levels are now falling under the RSI overbought territory and entering the regular trading territory. This indicates that the pressure that the buyers had is slowly dying out. On top of that, its volume is descending slowly. However, it is still above the levels it was at before the big spike.

Ethereum

Ethereum is doing pretty much the same thing Bitcoin does. After the big price surge, a consolidation needed to happen to make this move healthy. Ethereum is now hovering between its immediate support and resistance levels of $$185 and $193.5. Ethereum has attempted to break this range both to the upside and the downside in the past 24 hours but failed both times. It is currently trading at $186.7, which is almost exactly the price it was trading at 24 hours ago.


Ethereum’s RSI is falling below the overbought territory, and it is now valued at 53. Ethereum’s volume stopped dropping as it returned to the state it was in before the price spike.

XRP

XRP is, as stated in yesterday’s article, performing its consolidation a bit differently from Bitcoin and Ethereum. It is not trading in a specific range, but following its ascending trend line. Even though the volume seems to stay at the same levels, XRP is finding the strength to move upwards and follow the ever-rising resistance line. Just following this line indicates major strength to the upside. However, the trend of price hovering just below the line will have to stop soon as the aforementioned line is too steep.


XRP’s RSI is dropping from the overbought levels into regular trading levels. It’s currently sitting at the value of 53.

 

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Forex Videos

Why do we need private cryptocurrencies? – Who Is Collecting Your Financial Data?

https://youtu.be/wbbNvtabkSo
Why do we need private cryptocurrencies?
One of the most essential features, as well as one of the main reasons that cryptocurrencies were invented, are the anonymity and

https://youtu.be/wbbNvtabkSo
Why do we need private cryptocurrencies?
One of the most essential features, as well as one of the main reasons that cryptocurrencies were invented, are the anonymity and

Why do we need private cryptocurrencies?

One of the most essential features, as well as one of the main reasons that cryptocurrencies were invented, are the anonymity and privacy features. The fact is that most people do not care enough about privacy and anonymity as they believe that these features only important to fraudsters and criminals. However, ordinary people do need privacy to protect their everyday life.

 


The past decade has brought us various cryptocurrencies that try to fix specific problems in society. Privacy coins became increasingly popular because they provided privacy features that other cryptocurrencies only could not.

What are privacy coins?

Privacy coins are cryptocurrencies that encrypt its transaction by using a technology called “zero-knowledge verifications” or similar private technology. When a blockchain has privacy, its users can transact on it with complete anonymity as well as keep their wallet balances completely private.

Some of the most popular privacy coins include:
Monero
Zcash
DASH
PIVX
Verge
Particl
Bitcoin Private…

Let’s touch upon some important things about privacy itself as well as privacy coins (both good and bad).

Privacy matters

Keeping user’s information private lessens the risk of monitoring, surveillance, or even manipulation coming from governments or any other authority. The more is known about a user, the easier the person becomes to monitor and control. Living in this day and age leaves us exposed to various data mining technology as well as another form of information collector technology that can be used and abused.

Privacy is the only thing standing between people and external control, personal attacks, companies, and other individuals. When it gets ignored and marginalized, it allows third parties to collect your data. Every web search on a search engine or social media post acts as an information carrier which can be accumulated over time to make a detailed digital profile.
It’s about the freedom of thinking and expression
Every human being should be guaranteed freedom of thought and expressing themselves. This freedom is a necessity, but it has lately been entirely blurred by censorship and third-party control. Privacy gives people enough protection for them to feel free and be themselves.
It’s personal – Financial Safety and Reputation
Neglecting your financial privacy can attract various forms of fraud, theft, and danger. The same thing applies to cryptocurrencies as well, as most of them are only pseudonymous but are also quite transparent. The wallets whose private keys leaked have been hacked, damaged, or infected with malware.

 

The list of exchanges that have been hacked is ever-growing, as they are the easiest to break into. All of the funds are stored on a few addresses as centralized exchanges keep their customers’ keys to themselves. Privacy coins are here to help manage risk when it comes to any attempt of fraud or theft.

If we move away from finance, we can also include reputation as a significant factor that requires privacy. Every person on this planet has things they wouldn’t want the public to know or see. Some personal information is just not meant for being on display. Privacy features help people stay anonymous and safe from any information theft, which could result in reputation damage.

Privacy is even more than personal

Talking about privacy is often associated with only the privacy of an individual. However, that should not be the case. Privacy is only real when it’s applied to the whole system of network users as well as exchanges. One user’s carelessness about security could potentially leak information that extends further than most people imagine. That’s why secure systems, rather than secure individuals, should be a priority.
Privacy coin disadvantages
Privacy coins bring a solution to all the problems mentioned above. However, they also bring some drawbacks to the table along with the advantages that they offer.
Various governments, as well as external authorities, are frightened that privacy coins offer the perfect mechanism for concealing criminal operations. Offering the option for untraceable money and information transfers can be a threat to security. Robert Novy, Deputy Assistant Director of the Secret Service’s office of investigations, announced that privacy coins are “one of the greatest emerging threats to U.S. national security.” On top of that, Japan (which is usually quite open to cryptocurrencies) has put a blanket ban on any cryptocurrency exchange, which allows its users the obfuscation of its transactions.
The evidence suggests that financial regulators are undoubtedly anxious and afraid of how introducing full privacy could affect their control over the system. They are slowly but steadily crafting policies that will shape the future of using privacy coins.

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 29 – Cryptocurrencies surging, China’s President Optimistic on Blockchain

The cryptocurrency market has had an astonishing weekend, which brought many cryptocurrencies great gains. Yesterday was a continuation of the buying move that started over the weekend. Many cryptocurrencies gained

The cryptocurrency market has had an astonishing weekend, which brought many cryptocurrencies great gains. Yesterday was a continuation of the buying move that started over the weekend. Many cryptocurrencies gained

The cryptocurrency market has had an astonishing weekend, which brought many cryptocurrencies great gains. Yesterday was a continuation of the buying move that started over the weekend. Many cryptocurrencies gained over 5%. In order to make the moves healthy, the cryptocurrency market required a consolidation, which it is getting now. As for the past 24 hours, Bitcoin went down 2.59%, and it is now trading at $9,403. Ethereum gained 0.41%, while XRP lost 1.34%.

 

Bitcoin’s dominance increased over the weekend even as cryptocurrencies rose in price, but fell back down a bit in the past 2 hours. Its dominance now sits at 67.7%, which represents a 0.5% decrease when compared to its dominance value 24 hours ago.

Cryptocurrencies ended up being divided between being in the green or red in the past 24 hours. The industry now has a market capitalization of $250.9 billion.

What happened in the past 24 hours

There was no major news in the cryptocurrency industry in the past 24 hours. The elevated volume and continuous buying pressure seemingly come from China after their president told his citizens to seize the opportunity that is blockchain and crypto industry.

As reported by many news outlets, the Chinese took the words of their president very literally and started investing in cryptocurrency almost immediately.

Technical analysis

Bitcoin

There were no significant changes in Bitcoin’s price when compared to the state, it was 24 hours ago. After bouncing from the $7,410 support line, Bitcoin surged up to $10,430. To keep the gains and to consider this move healthy, Bitcoin needed to retrace. That is exactly what it is doing at the moment. The price is currently hovering around the $9,450 mark.


Bitcoin is currently trading right below the RSI overbought territory, with its volume elevated, but descending.

Ethereum

Ethereum is doing pretty much the same thing Bitcoin does. After the big price surge, a consolidation needed to happen to make this move healthy. Ethereum is currently trading at $186.5. After leaving its falling wedge pattern, Ethereum’s outlook is much more positive. However, its other indicators show a possible downward-facing move in the near future.


Ethereum’s RSI is also right below the RSI overbought territory with trading volume elevated, but descending.

 

 

XRP

XRP is performing its consolidation a bit differently from Bitcoin and Ethereum. Even though it is trading within a range just like the other two cryptocurrencies, XRP does not experience significant volume drops. On top of that, its RSI is dropping from the overbought levels into regular trading levels.



When it comes to the position of XRP’s price, XRP is hovering just below the upward-facing trend line, which it does not intend to cross. Just following the line below, it would indicate major strength to the upside for XRP.

It has become a regular occurrence that Bitcoin and Ethereum almost mirror each other while XRP makes its own moves in the industry.

Categories
Crypto Videos

Is Your Cryptocurrency Anonymous? How To Ensure It Is!

https://youtu.be/o0-w9g9TVxw

 
Anonymity in cryptocurrencies

Confidentiality and privacy (financial and in general) are becoming more and more important nowadays as the world has pretty much given up on privacy

https://youtu.be/o0-w9g9TVxw

 
Anonymity in cryptocurrencies

Confidentiality and privacy (financial and in general) are becoming more and more important nowadays as the world has pretty much given up on privacy

 

Anonymity in cryptocurrencies

Confidentiality and privacy (financial and in general) are becoming more and more important nowadays as the world has pretty much given up on privacy with the expansion of the internet. Cryptocurrencies have given users an option to protect their financial privacy. These cryptocurrencies are based on cryptographic protocols that act as security methods. By utilizing these protocols, all the transactions are safe, irreversible, and do not contain any personal information whatsoever.
Privacy and anonymity are one of the most important factors that lifted cryptocurrencies in the eyes of potential users. However, we have to make a distinction between “anonymity” and “pseudonymity” and what they represent, as well as which cryptocurrencies possess these features.
Simply put, anonymous transactions are transactions that can’t be connected to any person/user. But are cryptocurrencies anonymous?

Bitcoin’s anonymity

Bitcoin is often described as anonymous because people can send and receive transactions without actually revealing their identity. However, the truth is a bit different.
Even though Bitcoin does not tie an identity to a person, all Bitcoin transactions are stored publicly and permanently on the Blockchain. This means anyone can see anyone’s balance as well as transactions. Even the identity of the user behind an address can be cracked down if an address is used to purchase goods or services outside the “system.”
Most blockchains aren’t truly anonymous but rather pseudonymous, and that includes Bitcoin. Transacting in Bitcoin is like writing under a specific pseudonym. If the pseudonym is ever tied to one of the transactions, everything done under that pseudonym is also tied to the account.

People may say that full privacy is what they want, but pseudonymity and having no anonymity is exactly the argument against people saying that Bitcoin can be used for illegal transactions. However, if full and complete privacy is required, then people should turn to a branch of Cryptocurrency called “privacy coins.”
Private cryptocurrencies
Unlike Bitcoin, every transaction involving so-called “privacy coins” obscures the digital addresses of the sender and the receiver. Not only that, but the network also obscures the value of the transaction. This feature offers privacy coin users near-total anonymity.
We will cover a few privacy coins with the biggest market capitalization to show what they have to offer to the market:
Monero;
Dash;
Zcash.

Monero

Monero is the biggest privacy coin by market capitalization. This is most likely due to a lot of people believing that this cryptocurrency is the most anonymous coin on the market. Monero is based on CryptoNote, a privacy protocol that implements ring signatures which obfuscate payments in order to ensure anonymity when both are sending and receiving funds.
However, throughout time, Monero has evolved far beyond CryptoNote. The development team behind Monero combined CryptoNote’s ring signatures with Greg Maxwell’s Confidential Transactions to create Ring Confidential Transactions (RingCTs), which only obscure senders but also hide the transaction amount. Monero is constantly improving and implementing new features, such as giving its users the option to hide their IP address and geographic location through garlic encryption and routing.

Dash

Dash, previously known as Darkcoin, came to life as a fork of Bitcoin in 2014. Even though Dash includes privacy features, this cryptocurrency also tries to achieve other features such as Portability, Inexpensiveness, Divisibility, Speed.

When talking about Dash’s privacy features, its users have two options. Dash gives you the option to send funds PrivateSend or through a regular network. PrivateSend implements a feature called “CoinJoin,” which mixes the sent funds with other people’s PrivateSend funds before sending them to the recipient. The coins that a recipient receives are not in any way associated with the wallet from which the transaction was initiated.

Zcash

Zcash is another extremely popular private cryptocurrency. It utilizes a feature called Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge (or simply zk-SNARKs). Zk-SNARKs validate the transaction without ever having to reveal the details of the transaction. This feature makes it possible to send ZEC, Zcash’s currency, while the sender’s address, the recipient’s address, as well as the amount is never compromised or revealed.
Even though Zcash developers built this cryptocurrency on the original Bitcoin code base, these two cryptocurrencies have very little in common today. One significant difference between Bitcoin and Zcash is that Zcash is run by a for-profit company called the Electric Coin Company. This company receives 10% of all the mining rewards, which is regarded as a “Founder’s Reward.” These funds are then used to support further development of the project.

Conclusion

It’s no secret that Bitcoin isn’t actually anonymous, despite what various public figures might claim. Its pseudonymity makes its transactions vulnerable to being tracked by governments and intelligence agencies. However, Bitcoin’s privacy features are steadily increasing.
With Bitcoin’s improving privacy, it is possible that cryptocurrencies such as Monero, Zcash, and Dash may become obsolete. This will, however, happen only if Bitcoin offers anonymity alongside with superior store of value.

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 28 – Cryptocurrencies surging, China’s president optimistic on blockchain technology

The cryptocurrency market has had an astonishing weekend. The past couple of days have brought us one of the largest price surges in a single 24-hour candle. The last time

The cryptocurrency market has had an astonishing weekend. The past couple of days have brought us one of the largest price surges in a single 24-hour candle. The last time

The cryptocurrency market has had an astonishing weekend. The past couple of days have brought us one of the largest price surges in a single 24-hour candle. The last time we saw a 40%+ 24-hour candle from Bitcoin, it was trading at $0.40 and $5.65. This could indicate an influx of buyers that are here to stay. Precisely this happened, as most cryptocurrencies’ price did not retrace, but instead stayed at their highs. As for the past 24 hours, Bitcoin went up 5.86%, and it is now trading at $9,698. Ethereum gained 4.59% of its value, while XRP gained 3.56%.

Bitcoin’s dominance increased over the weekend even as cryptocurrencies rose in price. This is because Bitcoin’s price itself gained more than the other cryptos did. Its dominance now sits at 68.2%, which represents a 2.1% increase from the beginning of the weekend.

Most cryptocurrencies ended up being in the green in the past 24 hours, which reflected on the market cap of the cryptocurrency industry as a whole. The industry now has a market capitalization of $256.69 billion.

What happened in the past 24 hours

There was no significant news regarding cryptocurrencies in the past 24 hours. The price was keeping up its upward momentum from the news that came earlier during the weekend.

As far as the weekend goes, the big news was the Chinese president Xi says that China should “Seize Opportunity” to adopt blockchain. On top of that, China passed a cryptography law which will be effective on January 1, 2020. This law will try to tackle regulatory and legal challenges in commercial cryptography use-cases.

Technical analysis

Bitcoin

The past week was not especially good for Bitcoin until the weekend came. After failing to spike up from the bull flag that it formed, Bitcoin started dropping in value, managing to fall from $7,950 down to $7,300 in less than 30 minutes. The support line at $7,410 was quite a strong one, and Bitcoin manage to consolidate at that price point. However, the volume suddenly spiked up, and Bitcoin’s price skyrocketed all the way to $10,360 before retracing a bit. Bitcoin is now trading around the $9,700 mark.


Bitcoin’s volume is still quite high, while its RSI is indicating trading in overbought territory.

Ethereum

Ethereum has also had a great weekend, as its price skyrocketed as well. After reaching the big support area at $153, it went up and eventually gained upward momentum. Ethereum’s price reached $199.6 before retracing. One important thing to note is that Ethereum’s price did try to fall below the falling wedge line. However, it quickly declined, and the price shot up once again.


Ethereum is now trading at $186.6 with elevated levels of volume. Its RSI is approaching overbought territory but is not there yet.

XRP

XRP has also gained quite a bit over the weekend. After breaking its upward-facing trend at $0.29, it crashed down to $0.25. However, the price recovered as the bulls kicked in, establishing support at $0.266. This was a baseline for the big move upwards, which ended at $0.315. As the volume faded, XRP retraced a bit and fell under the aforementioned trend line, which it did manage to cross during the spike. It has tried to break it quite a few times since but failed every single time.


Even so, there is no need for attempts to break above the trend line to be successful as the line is too steep upwards. Even following it is a great indicator of strength. XRP is now trading for $0.30.

Categories
Crypto Daily Topic

Dusting Attack: What is it and How Does it Work?

Since most cryptocurrencies in use today are open and decentralized, anyone can join the network and set up a wallet without providing any personal or identifying information. This is what

Since most cryptocurrencies in use today are open and decentralized, anyone can join the network and set up a wallet without providing any personal or identifying information. This is what

Since most cryptocurrencies in use today are open and decentralized, anyone can join the network and set up a wallet without providing any personal or identifying information. This is what makes cryptocurrencies somewhat anonymous. But not completely.

Although it is not always easy to find the identity behind a wallet address, each crypto transaction is publicly recorded on the blockchain and open for anyone to see. Therefore, technically, cryptos are not really anonymous but pseudonymous currencies. As such, it leaves users susceptible to a new kind of crypto fraud known as dusting attacks.

What is a Dusting Attack?

A dusting attack is a way in which an attacker steals a crypto user’s anonymity. This is done by analyzing transactions on the blockchain to deanonymize users in a process known as dusting. What may appear as a shower of small amounts of money or ‘dust’ sent to a wallet address could actually be a scam that can help the attackers narrow down on the identity of the user behind a wallet address. Hackers just need a little identifying information such as a pattern of addresses or locations to do a lot of damage on their targets.

What is dust?

In the world of cryptocurrencies, the term ‘dust’ refers to very small amounts of tokens or coins sent to a wallet, often in such insignificant amounts that the wallet’s owner may not notice in his/her balance. For Bitcoin, dust can be multiple amounts as little as 1 Satoshis (0.000000001 BTC). Dust can be hundreds of these tiny amounts sprayed by an attacker throughout the blockchain network with the hope that some of the amounts will ‘get stuck’ on the victim’s wallet.

At the core of cryptocurrency transactions, there is the concept of unspent transactions or UTXO. For every transaction carried out and recorded on the blockchain, there is a record of the input and the output. The output part of the transaction has two elements – the first goes to the recipient of the transaction, and the second returns to the sender as change.

In every successful transaction, the change that goes back to the sender is what makes up the UTXO and automatically becomes a part of the wallet’s UTXO set. The next transaction carried out by the owner of the wallet will include the UTXO from the set.

How a dusting attack works

The next step of the dusting attack is dependent on the victim unknowingly spending the dust. Since the balance amount in their wallet will automatically be a sum of what they had before and after the dust, most victims never realize when they spend it. The attacker will then track the dust funds and eventually deanonymize the owner of the wallet.

Despite how simple it may seem, deanonymizing the identity of a wallet owner is not a straightforward process. The way cryptocurrency wallets work is that a single wallet can generate several addresses when a transaction is initiated. Some tech-savvy and informed users have even set up their wallets such that they use a different address every time they carry out a transaction. The attacker will have a chance to attack only when the wallet owner combines UTXOs from several different addresses along with the dust amounts from those addresses.

By continuously analyzing the addresses on the blockchain network and comparing them with the information from the dust sprayed on the network, an attacker may track back addresses and ultimately find the network of addresses that manage a user’s wallet. The analysis is possible despite the large number of transactions carried out on the blockchain network because the hackers narrow down the transactions using transaction amounts, transaction times, and even exchanges.

The endgame in a dusting attack

What we have covered so far is the preparation stages in a dusting attack. The goal of this form of fraud is to link the dusted addresses with wallets and ultimately single out a wallet address to which they can trace the individual or company operating it. If a dusting attack is successful, the hackers will use this information against their targets, often through elaborate extortion schemes or through old school techniques such as phishing.

In the past, dusting attacks happened only on the Bitcoin cryptocurrency network. Of late, though, there are more of such cases on other cryptocurrencies. Just the other day, a network-wide attack on the litecoin network affected all users who had active addresses at the time of the attack, as reported on the Coin Telegraph. A quick analysis on the LTC blockchain revealed that over 300,000 addresses had been sprayed with dust, showing just how serious this form of attack is growing to be.

Back in October 2018, Bitcoin users who had Samourai wallets were the targets of dusting attacks. Upon noticing the attempts, the developers of the wallet responded in a tweet, alerting their users and explaining how to better protect themselves against the attack, which was still very new then. They then implemented a ‘DO NOT SPEND’ feature that marks suspicious funds sent to its users so that the dust is not included in any future transactions automatically.

The dangers of dusting

While almost all cryptocurrency blockchain networks today are almost impossible to disrupt or hack, users’ wallets are the weak points where attackers are focusing on when carrying out dusting attacks. Dusting and de-anonymizing attacks are not easy to pull off and may not be severe on their own, but it is important that users are educated on the damage that hackers can do when they know who they are.

Since Dusting attackers could use the information they harvest for other more serious attacks such as cryptojacking, phishing, and ransoming, it is important that cryptocurrency users understand the importance of putting in place measures to protect themselves from the moment they choose to open a cryptocurrency wallet. These may include using VPNs every time they access their wallets or the blockchain network, encrypting wallets, setting up different addresses for each transaction, and storing their keys in encrypted folders.

Categories
Crypto Videos

What Are Stablecoins? – The Crypto Safe Haven

https://youtu.be/4_V91nsbhJM
What are stablecoins?

Cryptocurrency and blockchain both have the potential to change how we see the world. However, cryptocurrencies are still young and too volatile on every single

https://youtu.be/4_V91nsbhJM
What are stablecoins?

Cryptocurrency and blockchain both have the potential to change how we see the world. However, cryptocurrencies are still young and too volatile on every single

What are stablecoins?

Cryptocurrency and blockchain both have the potential to change how we see the world. However, cryptocurrencies are still young and too volatile on every single time-frame. Crypto investors have become millionaires overnight, only to lose a sizable portion of the earnings just a month or two later. Even though some see volatility as an opportunity, it mainly shows how cryptocurrencies are still unreliable and how their price is not yet determined by society. This is how the idea of stablecoins came to life.
Stablecoins are cryptocurrencies that have a much more fixed price when compared to the regular cryptocurrencies. The fixed price most often comes from pegging stablecoin’s price to other assets such as the US dollar or gold. This lets stablecoins retain most of the attributes of a cryptocurrency (transparency, security, privacy, etc.) without extreme volatility. Stablecoins were created with the intention of people using them, just like any other cryptocurrency. They are meant to be a simplistic, stable, easy to use, scalable, and secure means of transactions.
Many stablecoin projects have been released lately. This so-called “stablecoin invasion” brought at least 57 stablecoins to the market, according to a recent report. Out of the 57, Paxos Standard (PAX) and Gemini Dollar (GUSD) have even been approved and regulated by the New York State Department of Financial Services.

Why do we need stablecoins?

Stablecoin is a cryptocurrency that was created with the aim to mimic traditional, stable currencies. A stablecoin is collateralized to the value of an underlying asset, which can vary from one stablecoin to another. Many stablecoins are pegged to certain fiat currencies, such as the US dollar or the Euro, while other stablecoins are pegged to other kinds of assets, such as precious metals, real estate, or even other cryptocurrencies.

The primary characteristic of stablecoins is that they are not subject to the extreme price volatility that affects other cryptocurrencies. Stablecoins leverage the benefits of cryptocurrencies (transparency, security, immutability, fast transactions, low fees, privacy, etc.) while keeping the expected value that the market expects from it in order to be a viable means of payment as well as a unit of account
Stablecoins can be used in many cases to improve the state of finance all around the world:

They could benefit many industries and individuals that need to make international payments quickly as well as securely. Stablecoin users could range from migrant workers that want to send some money back to their families all the way to big businesses looking for a more efficient way of paying their international suppliers.

Many people all across the globe are underbanked, meaning that they don’t have sufficient access to mainstream financial services. People in underbanked communities can transact using stablecoins.
Stablecoins could help in areas where economic uncertainty is a regular concern, and inflation is extremely high. Using stablecoins will bring safety to its users as it will have no notable inflation regardless of the local laws, news, or conditions.

Using stablecoins globally could drastically improve the financial industry. This could range from cross-border lending to financial planning. Broadly, this could transform those involved with applications across the cryptocurrency space, such as traders, investors, and blockchain-based businesses.

Stablecoins are mainly used as a safety net for crypto investors at the moment. By acting as a safe haven in the event of a market crash, cryptocurrency investors can move their funds from regular cryptocurrencies into stablecoins without ever having to move their capital back into fiat currencies. This reduces exchange costs and cuts back on time required to leave cryptocurrency positions.
Types of stablecoins

There are four types of stablecoins based on how what they are backed by:
Fiat-backed stablecoins;
Commodity-backed stablecoins;
Cryptocurrency-backed stablecoins;
Stablecoins with no collateral (algorithm-backed stablecoins).

Fiat-backed stablecoins

Fiat-backed stablecoins are backed by fiat currency in a 1-1 ratio. This way, the stablecoin’s value always stays roughly around $1 (as most stablecoins are backed by USD). Fiat-backed stablecoins are the most common stablecoins.
Some of the most popular fiat-backed stablecoins are USDT (Tether), TrueUSD (TrustToken), PAX (Paxos), etc.

Commodity-backed stablecoins

Commodity-backed stablecoins backed by any interchangeable commodity. These stablecoins could be backed by oil, precious metal, or grain. Most commodity-backed stablecoins are using either gold or oil as their collateral.
Some of the most popular commodity-backed stablecoins are DGX (Digix) and Gcoin (G-Coin). Cryptocurrency-backed stablecoins
Cryptocurrency-backed stablecoins backed by other cryptocurrencies, usually the ones with the largest market caps. These stablecoins almost always use Bitcoin or Ethereum as their collateral. They can, however, be backed by more than one cryptocurrency to avoid extreme volatility. Crypto backed stablecoins are usually overcollateralized as they need to take into consideration the price fluctuations of the native cryptocurrencies.

Some of the most popular cryptocurrency-backed stablecoins are DAI (Maker DAO), bitUSD (BitShares), and sUSD (Synthetix).
Stablecoins with no collateral (algorithm-backed stablecoins)
Noncollateralized stablecoins are stablecoins that are not backed by any asset. Instead, they use certain algorithms to adjust the supply and demand of the stablecoin itself. That way, they can keep the stablecoin’s value stable.
Some of the most popular non-collateralized stablecoins are CarbonUSD (Carbon) and kUSD (Kowala).

Conclusion
Stablecoins bring a completely new aspect of complete stability to cryptocurrencies, but will that be enough for them to become popular and widely-used? Only time can tell.

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 25 – Today’s market neutral, Peter Schiff warming up on crypto

The cryptocurrency market has been relatively neutral in the past 24 hours. After a pretty horrible drop that ended with some cryptocurrencies dropping double digits in price, the market is

The cryptocurrency market has been relatively neutral in the past 24 hours. After a pretty horrible drop that ended with some cryptocurrencies dropping double digits in price, the market is

The cryptocurrency market has been relatively neutral in the past 24 hours. After a pretty horrible drop that ended with some cryptocurrencies dropping double digits in price, the market is in a stabilization phase. While some cryptocurrencies gained a bit of value, most remained at their yesterday’s levels. As for the top3 cryptocurrencies, Bitcoin went up 0.24%, while Ethereum gained 0.2% of its value. XRP was the biggest gainer out of the three and gained 2.45%.

Bitcoin has lost a fraction of its dominance due to it not moving much while some other cryptocurrencies managed to secure gains in the past 24 hours. It now sits at 65.6 %, which represents a 0.04% decrease when compared to the previous day.

The industry has gained some value as far as market capitalization goes in the past 24 hours. Cryptocurrencies now have a market capitalization of $205.66 billion, which represents a $1.5 billion increase from the previous day.

What happened in the past 24 hours?

The markets have been pretty stable in the past 24 hours as there were no moves from neither bears nor bulls. There were also no significant news that could impact the price of the overall crypto market.

XRP has managed to gain some value on positive news, however. CryptoBull tweeted that he remains bullish on XRP and that his price goal would be $10 by the end of 2020. On top of that, Tim Draper also announced that he expects XRP to explode soon.

Cryptocurrencies are gaining momentum in adoption, and we can see the future changing right before our eyes. Peter Schiff, an economist that is considered anti-crypto and a goldbug, announced that “Privately issued cryptocurrencies, backed by real assets, would represent a major improvement over our current system of national fiat currencies.”

Technical analysis

Bitcoin

Bitcoin was pretty stagnant in the past 24 hours. After finding resistance at $7,410, Bitcoin could not move far above the price point. However, this support line stopped a big bear move from that could cause much more harm to Bitcoin’s price.


Bitcoin’s RSI is slowly moving out of the oversold territory while the volume is on the decrease. This condition has historically shown that a move (bullish or bearish) is near.

Ethereum

Ethereum has had a slightly better day than Bitcoin in terms of price. Even though its price gain is far from big, Ethereum did manage to pull away somewhat from its support zone.


It is now sitting at $161.5, with the same indicator positions as Bitcoin (RSI and volume)

XRP

XRP has gained the most in the past 24 hours. This fact could be attributed to a large bull rally when the price broke $0.266. Even though the price managed to slip below the line, bulls rallied and propelled it upwards.


XRP is now trading at around $0.278 and looks pretty bullish in the short-term.

Categories
Crypto Videos

The Ultimate Guide To Hardware Wallets – Keep Your Crypto Secure

https://youtu.be/-XxXbXc5zh8

What are hardware wallets and how to use them?

Cryptocurrencies are becoming a global phenomenon, and it is becoming more apparent that they are not just a phase

https://youtu.be/-XxXbXc5zh8

What are hardware wallets and how to use them?

Cryptocurrencies are becoming a global phenomenon, and it is becoming more apparent that they are not just a phase

What are hardware wallets and how to use them?

Cryptocurrencies are becoming a global phenomenon, and it is becoming more apparent that they are not just a phase, but a thing that might actually change the world. The more people invest in digital assets, the more important it becomes to have a safe way to store the crypto portfolio. The current cryptocurrency wallet market is huge, and picking the right one can be tricky. The sheer supply of wallets on the market can cause “analysis paralysis” with the potential users. This article will hopefully help people make the right choice in picking their wallet.

Hardware wallets

A hardware wallet is a special type of Bitcoin wallet (as most wallets are so-called software wallets). Hardware wallets are special because they store the user’s private keys in a secure hardware device. This is providing a major advantage over standard software wallets as it grants its user much-needed security.
More and more companies started offering hardware wallets, but the two companies that always stay one step ahead in features and marketing are Ledger and Trezor.

Ledger

Ledger was created launched in 2014 by eight cryptocurrency/security experts. As previously said, Ledger is one of the two most popular hardware wallet companies, with the other one being TREZOR. That being said, there are a lot of companies offering their iterations of hardware wallets, but these two came out on top due to what they have to offer to their users (in terms of hardware, features, and pricing). Ledger currently offers three hardware devices:
Ledger Nano S – Small and secure;
Ledger Nano X – Ledger’s upgraded version of the Nano S, more features but also bulkier;
Ledger Blue – tablet-like device with a touchscreen. It offers the most options and features, but it is also the priciest out of the three.

All of the Ledger devices are multi-currency wallets as they support over 1,000 cryptocurrencies. They do, however, are slightly different. The difference comes in the form of which coins they support. Ledger Nano S and Nano X support the exact same cryptocurrencies except “The Validator” cryptocurrency, which Nano S supports. Ledger Blue offers support to less cryptocurrencies but offers more features overall.

Ledger Live

All Ledger devices are powered by software called Ledger Live, which acts as its main wallet. The Ledger Live app/program is supported by these operating systems:
Mac OS;
Windows;
Linux;
iOS;
Android.

Ledger Live natively supports only 22 cryptocurrencies, but that’s far from what it can do. Ledger devices offer support to far more cryptocurrencies by using the Ledger Live feature of integrating other wallets. That way, Ledger live can integrate third-party wallets that offer support to other cryptocurrencies. Less popular cryptocurrencies and ERC20 tokens are supported by Ledger only by integrating their respective wallets. Ledger supports smaller and less popular cryptocurrencies by integrating MyEtherWallet and MyCryptoWallet in most cases.
When all adds up, Ledger supports over 1150 cryptocurrencies, which makes it a multi-currency wallet by definition.

Trezor

Trezor is a hardware wallet created by Satoshi Labs in 2012. This company is also responsible for several well-known cryptocurrency projects (such as Slush Pool – a Bitcoin mining pool and CoinMap – a map of establishments that accept Bitcoin). Trezor has been developed by Satoshi Labs CEO and CTO, which go under the pseudonym Slush and Stick.
Besides Ledger, Trezor is currently the other most popular hardware wallet in the world. Trezor has two options to choose when it comes to hardware wallet devices:
Trezor One – has buttons to operate it;
Trezor Model T – a newer version, has a touchscreen but is pricier.
Trezor hardware wallet, unlike Ledger Live, offers native support to over 1000 cryptocurrencies right off the bat. There is no need for integration of any wallet whatsoever. This makes Trezor wallet the only wallet in the industry that offers native support to all ERC20 tokens. Even though most users do not seem to care whether the support comes natively or by the integration of other wallets, this should be a significant thing. This feature alone greatly improves on the wallet security, making it safer than other hardware wallets.
Many wallets offer support to more than one cryptocurrency, which gives them the right to be called “multi-currency wallets,” but Trezor shows the true meaning of the word.

Conclusion

Hardware wallets should be used for their safety and security, as well as their sturdiness and durability. Each and every cryptocurrency investor (no matter how insignificant their funds are) should think about investing in buying a hardware wallet. As for the ultimate decision of which hardware wallet is better: Ledger, TREZOR, or some other company’s wallet, there is no final answer. It mainly comes down to the personal preference of the buyer themselves.

Categories
Crypto Guides

What Should You Know About Ripple? The Most Centralized Cryptocurrency!

Introduction 
In our previous articles, we have seen that Bitcoin has inspired and paved the way for a multitude of new and affordable platforms using cryptocurrencies. Ripple is one such

Introduction 
In our previous articles, we have seen that Bitcoin has inspired and paved the way for a multitude of new and affordable platforms using cryptocurrencies. Ripple is one such

Introduction 

In our previous articles, we have seen that Bitcoin has inspired and paved the way for a multitude of new and affordable platforms using cryptocurrencies. Ripple is one such platform developed by Ripple Lab’s incorporation, a US-based company in 2012. It is a payment platform built upon a distributed open-source protocol. This best part about this cryptocurrency is that it is backed by major Banking and financial institutions. They use Ripple for transferring money, commodities, cryptocurrencies, or any other units of value like flier miles or free mobile minutes.

Objective

The Objective of Ripple is to rule over all the international transactions worldwide. They have come up with this objective as the cost of international transactions is too high if we transact using traditional means. It also takes days to settle the transaction. The most innovative idea behind this platform is that we can use the network to transfer any currency, not only cryptocurrency, to be more specific. Thus, making the platform currency independent. Ripple Network, also knows as RippleNet, enables many banks and financial institutions to send and receive money smoothly throughout the world.

How is Ripple different from other cryptocurrencies?

In the world of blockchain, the upcoming networks or platforms are trying to eradicate the existing systems. Ripple is doing precisely the opposite. Instead of trying to remove them, this technology is trying to cooperate with them to make them better. Several products by Ripple Labs (XCurremt, XVia, and XRapid) are being used by several banks to perform transactions globally. The native cryptocurrency of the platform XRP plays an essential role in the system.

Let us see how the transactions are performed globally using Ripple technology. The currency which is being transacted is converted into XRP before the transaction. As the recipient receives the money, the user will have an option to convert the XRP into his/her desired currency. Thus, XRP plays a bridge between two different currencies in this case. The transaction fees for this transaction is as less as $0.00001. This transaction fee disappears from the network after the transaction is processed.

Market Capitalization 

Ripple’s XRP is in third place in terms of market capitalization amongst Cryptocurrencies. Currently, this crypto is trading at $0.295, while the total market cap is around 12 billion dollars. The 24-hour trading volume is $1,729,560,739. The maximum number of coins the XRP ever can have is 100,000,000,000, while 43,242,653,330 out of them are already in circulation (43.2%).

Pros and Cons of Ripple

We have already seen that many banks have trust in Ripple technology and started using this network. By using this technology, some world-renowned banks claim that they are potentially saving 70% of the transaction costs annually. Since all the coins are minted already, inflation i.e., the value of Ripple, remains stable over the period.

Ripple is highly centralized, unlike other cryptocurrencies. 61% of the coins minted are in control of the founders of the Ripple Labs. They decide when and how much of the coins are released. Hence centralization is the major con. In May 2018, Ripple was accused of alleged cheating through its ICO.

Conclusion

Since 2013, many traditional platforms that serve international transactions have adopted Ripple as an alternative remittance option to its customers. By December 2014, Ripple combined its services with Earhports payments systems, making it the first-ever partnership of Ripple with a giant payments network. Western Union, American Express, and Unicredit are some of the largest customers of this technology, making the technology achieve its goal closer every passing day.

Categories
Crypto Market Analysis

Daily Crypto Review, Oct 24 –Crypto market bleeding out, Zuckerberg announces Libra’s strategy

The cryptocurrency market has been bleeding out in the past 24 hours. After a pretty average performance throughout the day, cryptocurrencies dropped in price in a blink of an eye.

The cryptocurrency market has been bleeding out in the past 24 hours. After a pretty average performance throughout the day, cryptocurrencies dropped in price in a blink of an eye.

The cryptocurrency market has been bleeding out in the past 24 hours. After a pretty average performance throughout the day, cryptocurrencies dropped in price in a blink of an eye. Most of them lost 5%-8% of their value in a matter of minutes. The move happened extremely fast and with an amazing bear force. It seems like more bearish funds entering the market after cryptocurrencies have consolidated. The market is fighting for dear life as many people have given up on thoughts that this is a retracement in the bull trend, but rather an extension of a bear market that dates back from January 2018. As for the top3 cryptocurrencies, Bitcoin went down 6.84%, while Ethereum lost 4.09% of its value and XRP lost 6.2%.

Unlike with most bear moves, Bitcoin’s dominance decreased this time.  It now sits at 66 %, which represents a 0.05% decrease when compared to the previous day.

As almost every single cryptocurrency was in the red, the market lost a significant portion of its value. The industry now has a market capitalization of $204.28 billion, which represents an enormous $13.1 billion decrease from the previous day.

What happened in the past 24 hours?

Big influx of selling pressure caused the cryptocurrency market to lose over $13 billion of its market capitalization in a matter of minutes. There was no specific news that caused this. In fact, there was no news at all that was regarded as completely bearish in the past 24 hours. However, after the price drop happened, people started resurrecting the thought that the markets have not been in a bull market at all after the big crash of Jan 2018. In fact, many people believe that the price rise to $13,000-$14,000 was just a bear market retracing and then falling back again.

Besides the price drop, the cryptocurrency industry spent the day talking about Mark Zuckerberg’s appearance before the United States House of Representatives Committee on Financial Services. He was in front of the Committee as the sole witness that was invited to testify about his role in developing Libra, Facebook’s cryptocurrency that is backed by a basket of stable international assets.

Technical analysis

Bitcoin

Bitcoin has had an incredibly bad day, which is what we can say about many cryptocurrencies in if we take a look at their performance in the past 24 hours. After failing to spike up from the bull flag that it formed, Bitcoin started dropping in value slowly. However, today’s selling pressure spike caused its price to plummet. Bitcoin fell from $7,950 all the way down to $7,450 in less than 30 minutes. After hitting a support line sitting at $7,410 Bitcoin started consolidating. This support line dates back from Nov 2017 and most recently May-Jun 2019.


So far, the support seems strong and the downward-facing move seems to have ended. This is further confirmed by RSI which is now heavily oversold.

Ethereum

Ethereum has also had a red day, but a better one than Bitcoin price-wise. Its price is currently $160 as the support held on during the time of crisis. The $153 support area is quite a strong one and should hold any slight fluctuations or bearish attempts.


Ethereum’s RSI is approaching oversold territory, indicating the end of the bearish move.

XRP

XRP was certainly not excluded from the influx of sellers coming into the market. After it’s ranging ascending price trend got broken yesterday, the price started falling sharply. The price fell quickly and even reached $0.25 levels. However, the bulls kicked in and established support at $0.266 which is considered a strong long-lasting support price point for XRP.


The price is now consolidating right above the support while RSI is just fluctuating above oversold territory.