Cryptocurrency Market Crash: Is Ethereum a Good Buy Now?

Cryptocurrencies are the latest “big thing” in the digital world and are already recognized as part of the monetary system. In fact, enthusiasts described it as a “money revolution.”

Clearly, cryptocurrencies are decentralized digital assets that can be exchanged between consumers without the need for a central authority, most of which are created using special computational techniques called digging.

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

Factors that determine the value of cryptocurrencies

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

Supply and demand are a major determinant of the value of everything valuable, including cryptocurrencies. This is because if more people are willing to buy cryptocurrency and others are willing to sell, the price of that particular cryptocurrency will increase and vice versa.

Mass adoption

The mass acceptance of any cryptocurrency can drive its price to the moon. This is due to the fact that the supply of many cryptocurrencies is limited to a certain limit and, according to economic principles, an increase in demand without a corresponding increase in supply will lead to an increase in the price of this particular commodity.

Many cryptocurrencies have invested more resources to ensure their widespread adoption, with some focusing on the applicability of their cryptocurrencies to urgent personal issues as well as important everyday cases, with the intention of making them indispensable in everyday life.

Fiat Inflation

If the fiat currency, such as USD or GBP, inflates, its price rises and its purchasing power decreases. This will then lead to an increase in cryptocurrencies (let’s use bitcoin as an example) compared to this fiat. The result is that you will be able to acquire more of this Fiat with each bitcoin. In fact, this situation is one of the main reasons for the rise in bitcoin prices.

History of fraud and cyber attacks

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

That is why it is imperative to watch out for cryptocurrency fraud before investing your money.

Some other factors to keep in mind that affect the value of cryptocurrencies include:

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

• The strength of the community supporting cryptocurrency (this includes funding, innovation and loyalty of its members)

• Low associated risks of cryptocurrency, as perceived by investors and consumers

• News mood

• Market liquidity and volatility of cryptocurrency

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

The modern concept of cryptocurrency is becoming very popular among traders. A revolutionary concept presented to the world by Satoshi Nakamoto as a by-product became a hit. Decoding. We understand that cryptocurrency is something hidden, and currency is a medium of exchange. This is a form of currency used in the created and stored blockchain. This is done through encryption techniques to control the creation and verification of the currency with which the transaction is performed. Bitcoin was the first cryptocurrency to emerge.

Cryptocurrency is only part of the process of a virtual database operating in the virtual world. The identity of the real person cannot be determined here. In addition, there is no centralized body to manage cryptocurrency trading. This currency is equivalent to hard gold, preserved by humans and whose value is supposed to increase by leaps and bounds. The electronic system set up by Satoshi is decentralized, where only miners have the right to make changes by confirming initiated transactions. They are the only providers of human touch in the system.

Counterfeiting of cryptocurrency is not possible, as the whole system is based on solid mathematical and cryptographic puzzles. Only those people who are able to solve these puzzles can make changes to the database, which is almost impossible. Once confirmed, the transaction becomes part of the database or blockchain, which cannot be reversed afterwards.

Cryptocurrency is nothing but digital money, which is created using a coding technique. It is based on a system of equal control. Let us now understand how one can benefit from trading in this market.

It cannot be reversed or forged: Although many people may deny that transactions are irreversible, the best thing about cryptocurrencies is that once the transaction is confirmed. A new block is added to the blockchain and then the transaction cannot be falsified. You become the owner of this block.

Online transactions: This not only makes it suitable for transactions by anyone sitting in any part of the world, but also facilitates the speed with which the transaction is processed. Compared to real time, when you need third parties to enter the picture to buy a house or gold or take out a loan, you only need a computer and a prospective buyer or seller in the case of cryptocurrency. This concept is easy, fast and full of investment return prospects.

The fee is low per transaction: There is a low or no fee charged by miners during transactions, as this is taken care of by the network.

Accessibility: The concept is so practical that all those people who have access to smartphones and laptops can access the cryptocurrency market and trade it anytime, anywhere. This affordability makes it even more profitable. As the return on investment is commendable, many countries such as Kenya have introduced the M-Pesa system, which allows a bitcoin device that now allows one in three Kenyans to have a wallet of bitcoin coins.

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

The world’s largest futures exchange to create a bitcoin futures contract

Terry Duffy, president of the Chicago Board of Trade (CME), said: “I think sometime in the second week of December you will see our [bitcoin futures] listing agreement. You can’t cut bitcoin today, so there’s only one way. Either you buy it or you sell it to someone else. So you create a two-way market, I think it’s always much more efficient. “

CME intends to release bitcoin futures by the end of the year pending regulatory review. If it succeeds, it will give investors a viable way to go “long” or “short” on bitcoin. Some exchange-traded vendors have also submitted documents for bitcoin ETFs that track bitcoin futures.

These developments have the potential to allow people to invest in cryptocurrency space without directly owning a CC or using the services of a CC exchange. Bitcoin futures could make the digital asset more useful by allowing consumers and intermediaries to hedge their currency risks. This can increase the acceptance of cryptocurrency by traders who want to accept bitcoin payments but are wary of its variable value. Institutional investors are also accustomed to trading in regulated futures that are not plagued by money laundering worries.

CME’s move also suggests that bitcoin has become too big to ignore, as the exchange seems to have ruled out crypto futures in the recent past. Bitcoin is almost everything that is talked about in brokerage and trading companies, which have suffered against the background of growing but unusually calm markets. If futures on an exchange rise, it would be almost impossible for any other exchange, such as CME, to catch up, as scale and liquidity are important in derivatives markets.

“You can’t ignore the fact that this is becoming more and more a story that will not go away,” Duffy said in an interview with CNBC. There are “major companies” that want access to bitcoin and there is a “huge hold back” from customers, he said. Duffy also believes that attracting institutional traders to the market may make bitcoin less volatile.

A Japanese village will use cryptocurrency to raise capital to revive the municipality

The Japanese village of Nishiawakura is exploring the idea of ​​conducting an initial coin offering (ICO) to raise capital to revive the municipality. This is a very new approach and they can ask for support from the national government or seek private investment. Several ICOs have had serious problems and many investors are skeptical that any new token will have value, especially if the ICO turns out to be another joke or scam. Bitcoin was definitely not a joke.

INITIAL OFFER OF COINS – (ICO)

We didn’t mention ICO in the first issue of Crypto Trend, so let’s mention it now. Unlike an initial public offering (IPO), in which a company has an actual product or service for sale and wants to buy shares from their company, an ICO can be conducted by anyone who wants to initiate a new Blockchain project with the intention of creating a new one. token on their chain. ICOs are unregulated and some of them are completely fake. However, the legal ICO can raise a lot of money to fund a new Blockchain project and network. It is typical for an ICO to generate a high token price near the beginning and then return to reality soon after. Because ICO is relatively easy to hold if you know the technology and have a few dollars, there were a lot and today we have about 800 tokens in play. All of these tokens have a name, they are all cryptocurrencies, and with the exception of very well-known tokens such as Bitcoin, Ethereum and Litecoin, they are called alt-coins. Currently, Crypto Trend does not recommend participating in the ICO, as the risks are extremely high.

As we said in issue 1, this market is the ‘Wild West’ at the moment and we recommend caution. Some investors and early adopters have made big profits in this market space; however, there are many who have lost much or all. Governments are considering regulations because they want to know about each transaction in order to tax them. They all have huge debts and are limited to money.

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

A great feature of bitcoin is that the creators have chosen a finite number of coins that can ever be generated – 21 million – thus ensuring that this cryptocurrency can never be inflated. Governments can print as much money (fiat currency) as they want and inflate their currency to death.

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

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

Stay on the line!

This year, the value of bitcoin has jumped even by an ounce of gold. There are also new cryptocurrencies on the market, which is even more surprising, bringing the value of cryptocurrencies to more than one hundred billion. On the other hand, the long-term outlook for cryptocurrency is somewhat blurred. There are quarrels about the lack of progress among the main developers, which makes it less attractive as a long-term investment and as a payment system.

bitcoin

Still the most popular, bitcoin is the cryptocurrency that started it all. It currently has the largest market capitalization of about $ 41 billion and has existed for the past eight years. Bitcoin is widely used around the world and it is not easy to take advantage of the weakness of the method it works with. Both as a payment system and as a stored value, bitcoin enables users to easily receive and send bitcoins. The blockchain concept is the foundation on which bitcoin is based. It is necessary to understand the concept of blockchain in order to understand what cryptocurrencies are.

Simply put, a blockchain is a database distribution that stores each network transaction as a block of data called a “block”. Every user has blockchain copies, so when Alice sends 1 bitcoin to Mark, everyone on the web knows.

Litecoin

An alternative to bitcoin, Litecoin is trying to solve many of the problems that hold bitcoin. It is not as sustainable as Ethereum, and its value is derived mostly from the acceptance of solid users. It is worth noting that Charlie Lee, a former Google employee, runs Litecoin. He also practices transparency with what he does with Litecoin and is quite active on Twitter.

Litecoin was Bitcoin’s second fiddle in a long time, but things started to change in early 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Litecoin then fixed the bitcoin problem by adopting Segregated Witness technology. This gave him the capacity to reduce transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to put his only focus on Litecoin and even left Coinbase, where he was engineering director, for Litecoin alone. As a result, the price of Litecoin has risen over the past few months, with the strongest factor being the fact that it could be a real alternative to Bitcoin.

Ethereum

Vitalik Buterin, a superstar programmer, invented Ethereum, which can do everything Bitcoin can do. However, its main purpose is to be a platform for building decentralized applications. Blockchains are where the differences between the two lie. In principle, the bitcoin blockchain records a type of contract that specifies whether funds have been moved from one digital address to another. However, there is a significant extension with Ethereum, as it has a more advanced language script and has a more complex and wider range of applications.

Projects began to emerge on Ethereum when developers began to notice its better qualities. Through the crowd selling symbols, some have even raised millions of dollars, and this is still a trend even today. The fact that you can create wonderful things on the Ethereum platform makes it almost like the Internet itself. This has caused the price to rise sharply, so if you buy Ethereum for $ 100 earlier this year, it won’t be valued at nearly $ 3,000.

Money

Monero aims to solve the problem of anonymous transactions. Even if this currency is perceived as a method of money laundering, Monero seeks to change that. In general, the difference between Monero and Bitcoin is that Bitcoin has a transparent blockchain, with each transaction being public and recorded. With bitcoin, everyone can see how and where the money was transferred. However, there is some imperfect anonymity about bitcoin. In contrast, Monero has a non-transparent rather than transparent transaction method. No one is completely sold with this method, but since some people love privacy for any purpose, Monero is here to stay.

Zcash

Unlike Monero, Zcash also aims to solve the problems that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, not everyone likes to show how much money they actually spent on Star Wars souvenirs. Therefore, the conclusion is that this type of cryptocurrency does have an audience and demand, although it is difficult to determine which cryptocurrency that focuses on privacy will eventually come out on top.

Bancor

Also known as the “smart token”, Bancor is the next generation standard for cryptocurrencies that can hold more than one token in reserve. In principle, Bancor seeks to facilitate the trading, management and creation of tokens by increasing their level of liquidity and allowing them to have a market price that is automated. Bancor currently has a front-end product that includes a wallet and smart token creation. The community also has features such as statistics, profiles and discussions. In short, the Bancor protocol allows the discovery of a built-in price as well as a liquidity mechanism for smart contract tokens through an innovative reserve mechanism. With a smart contract, you can immediately liquidate or purchase one of the tokens in the Bancor reserve. With Bancor you can create new cryptocurrencies with ease. Now who wouldn’t want that?

EOS

Another competitor to Ethereum, EOS promises to solve the problem of scaling Ethereum by providing a set of tools that are more stable to run and build applications on the platform.

Theses

An alternative to Ethereum, Tezos can be upgraded by mutual consent without too much effort. This new blockchain is decentralized in the sense that it is self-governing by creating a real digital community. It facilitates a mathematical technique called formal verification and has features to increase the security of the most financially weighted, sensitive smart contract. Definitely a great investment in the coming months.

Sentence

It is incredibly difficult to predict which bitcoin on the list will become the next superstar. However, consumer acceptance has always been a key success factor when it comes to cryptocurrencies. Both Ethereum and Bitcoin have this, and even if there is strong support from the early adopters of each cryptocurrency on the list, some have not yet proven their resilience. Nevertheless, these are the ones you need to invest in and be careful about in the coming months.

In the first days of its launch in 2009, several thousand bitcoins were used to buy pizza. Since then, the sharp rise in cryptocurrency to $ 65,000 in April 2021, after a heartbreaking decline in mid-2018 of about 70 percent to about $ 6,000, has stunned many people – cryptocurrency investors, traders or just curious missed the boat.

How it all started

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

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

Beyond bitcoin

Bitcoin has inspired the release of many other digital currencies. There are currently more than 1,000 versions of digital coins or tokens. Not all of them are the same and their values ​​vary significantly, as well as their liquidity.

Coins, altcoins and tokens

At this point, suffice it to say that there are subtle differences between coins, altcoins and tokens. Altcoins or alternative coins are usually different from the pioneering bitcoin, although altcoins such as ethereum, litecoin, ripple, dogecoin and dash are considered the “main” category of coins, which means that they are traded on more cryptocurrency exchanges.

Coins serve as currency or a means of storing value, while tokens offer assets or useful uses, such as a blockchain supply chain management service to validate and track wine products from the winery to the consumer.

It is important to note that low value tokens or coins offer opportunities to raise, but do not expect such meteorite increases as bitcoin. Simply put, lesser-known tokens may be easy to buy, but they may be difficult to sell.

Before embarking on cryptocurrency, start by studying the value proposition and technological considerations, namely the trading strategies outlined in the White Paper accompanying any initial coin offering or ICO.

For those familiar with the stock and the shares, this is no different from the initial public offering or IPO. However, IPOs are issued by companies with tangible assets and business experience. Everything is done within a regulated environment. On the other hand, the ICO is based solely on an idea proposed in a white paper by businesses – which are yet to function and without assets – that are looking for start-ups.

Unregulated, so buyers beware

“One cannot regulate what is unknown” probably sums up the situation with digital currency. Regulators and regulations are still trying to catch up with cryptocurrencies, which are constantly evolving. The golden rule in crypto space is “caveat emptor”, let the buyer beware.

Some countries are open-minded, adopting policies to end cryptocurrencies and blockchain applications, while keeping an eye out for outright fraud. Still, there are regulators in other countries who are more interested in the pros than the cons of digital money. Regulators are generally aware of the need to strike a balance, and some are reviewing existing securities laws to try to address the many tastes of cryptocurrencies worldwide.

Digital wallets: The first step

The wallet is essential to start working with cryptocurrency. Consider e-banking, but without the protection of the law in the case of virtual currency, so security is the first and last thought in the crypto space.

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

• Hot wallets that are connected to the Internet, which puts users at risk of hacking

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

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

The choice of wallet depends on the user’s preferences whether the interest is only in bitcoin or etherium, as each coin has its own wallet, or you can use a third-party wallet that includes security features.

Notes in the wallet

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

The public key is available to everyone, but transactions are only confirmed after verification and validation based on the consensus mechanism associated with each cryptocurrency.

The private key can be considered a PIN, which is commonly used in electronic financial transactions. It follows that the user should never disclose the private key to anyone and make backup copies of this data, which should be stored offline.

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

Portfolio formats

Different types of wallets are available to suit individual preferences.

• Hardware wallets manufactured by third parties to be purchased. These devices work somewhat like a USB device, which is considered safe and is only connected to the Internet when needed.

• Web-based wallets provided, for example, by cryptocurrencies are considered hot wallets that put consumers at risk.

• Software-based wallets for desktops or mobile devices are mostly free and can be provided by coin issuers or third parties.

• Paper wallets can be printed, bearing the relevant data on the cryptocurrency owned with public and private keys in QR code format. They should be stored in a safe place until required during the crypto transaction, and copies should be made in case of incidents such as water damage or printed fading data over time.

Crypto exchanges and markets

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

Therefore, there are many crypto exchanges located in different countries, but with different standards of security and infrastructure practices. They range from allowing anonymous registration, requiring only email, to open an account and start trading. But there are others that require consumers to comply with international proof of identity, known as “Know Your Customer,” and anti-money laundering (AML) measures.

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

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

Cryptocurrency exchanges are in two categories.

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

• Cryptocurrency only. There are cryptocurrencies that only trade cryptocurrencies, which means that customers must already own cryptocurrencies – such as bitcoin or etherium – in order to be “exchanged” for other coins or tokens based on the market rate.

Fees are charged to facilitate the purchase and sale of cryptocurrencies. Consumers need to do the survey to be satisfied with the infrastructure and security measures, as well as to determine the fees that are convenient for them, as different tariffs are charged by different exchanges.

Don’t expect a total market price for the same cryptocurrency with a difference exchange. It may be worth taking the time to research the best price for coins and tokens that are of interest to you.

Online financial transactions carry risks and consumers should heed warnings such as two-factor authentication or 2-FA, be aware of the latest security measures and be aware of phishing scams. One golden rule of phishing is not to click on the links provided, no matter how authentic the message or email is.

The birth of bitcoin in 2009 opened the door to opportunities to invest in an entirely new type of asset class – cryptocurrency. They entered space very early.

Intrigued by the huge potential of these emerging but promising assets, they bought crypto at cheap prices. As a result, during the overtaking in 2017, they became millionaires / billionaires. Even those who did not gamble reaped decent profits.

Three years later, cryptocurrencies are still profitable and the market is here to stay. Maybe you are already an investor / trader or maybe you are considering trying your luck. In both cases, it makes sense to know the benefits of investing in cryptocurrencies.

Cryptocurrency has a bright future

According to a report entitled Imagine 2030, published by Deutsche Bank, credit and debit cards will become obsolete. Smartphones and other electronic devices will replace them.

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

Specific regulatory guidelines will promote cryptocurrencies and strengthen their acceptance. The report estimates that there will be 200 million users of the cryptocurrency portfolio by 2030 and almost 350 million by 2035.

Opportunity to be part of a growing community

#IndiaWantsCrypto on WazirX the campaign recently ended 600 days ago. This has become a mass movement supporting the adoption of cryptocurrencies and blockchain in India.

Also, a recent Supreme Court ruling lifting RBI’s 2018 ban on cryptocurrency has sparked a new surge of confidence among Indian investors in bitcoin and cryptocurrencies.

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

As a cryptocurrency investor, you are part of a thriving and fast-growing community.

Increased profit potential

Diversification is a basic rule for investment. Especially in these times, when most of the assets have suffered heavy losses due to economic difficulties caused by the COVID-19 pandemic.

While bitcoin investments have given a 26% return since the beginning of the year, gold has returned 16%. Many other cryptocurrencies have registered three-digit ROI. Stock markets, as we all know, are reporting grim results. Crude oil prices fell below 0 in April.

Including bitcoin or other cryptocurrencies in your portfolio would protect the value of your fund in such uncertain global market situations. This fact was also impressed by the manager of the macro hedge fund billionaire Paul Tudor Jones, when a month ago he announced plans to invest in bitcoin.

Cryptocurrency markets are at 24X7X365

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

The operational plan does not involve human intervention. So you are free to trade cryptocurrencies or invest in digital assets whenever you want. This is a great benefit! Thus, cryptocurrency markets are very efficient.

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

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

No documents or formalities are required

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

Unlike conventional investment options, which require an absurdly large amount of documentation to prove yourself as an “accredited investor”, crypto-investing is free for everyone. In fact, this was the goal behind the creation of cryptocurrencies. The democratization of finance / money.

To purchase any cryptocurrency WazirX, you need to open an account for which you simply need to provide some basic information, including information about your bank account. Once confirmed, within a few hours, you can leave.

Sole proprietorship in investments

When you buy bitcoin or another cryptocurrency, you become the sole owner of that particular digital asset. The transaction is carried out in an agreement between partners.

Unlike bonds, mutual funds, stockbrokers, no third party “manages your investment” for you. You decide to buy and sell whenever you want.

Consumer autonomy is the biggest advantage of cryptocurrency systems, which provide incredible opportunities to invest and build on their fixed capital “independently”.

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

When it comes to cryptocurrency trading, you need to speculate on whether the market you have chosen will increase or decrease in value. And the interesting thing is that you never own a digital asset. In fact, derivatives are traded such as CFDs. Let’s look at the benefits of cryptocurrency trading. Read on to learn more.

Volatility

Although cryptocurrency is a new market, it is quite volatile due to short-term speculative interest. The price of bitcoin fell to $ 5851 from $ 19,378 in 2018, in just one year. However, the value of other digital currencies is quite stable, which is good news.

What makes this world so exciting is the volatility of the value of the cryptocurrency. Price movements offer many opportunities for traders. However, this also comes with a lot of risk. Therefore, if you decide to research the market, just make sure you do some research and devise a risk management strategy.

Work time

The market is usually open for 24/7 trading as it is not regulated by any government. In addition, transactions take place between buyers and sellers around the world. There may be short interruptions when infrastructure updates are performed.

Improved liquidity

Liquidity refers to how quickly a digital currency can be sold for money. This feature is important because it allows for faster transaction times, better accuracy, and better pricing. In general, the market is a bit liquid, as financial transactions take place on different exchanges. Therefore, small deals can lead to big changes in prices.

Leverage exposure

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

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

It is also important to make sure that you follow a solid risk management strategy, which should include appropriate limits and suspensions.

Quick account opening

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

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

What is mania? It is defined as a mental illness characterized by great agitation, euphoria, delusions and overactivity. When investing, this is expressed in investment decisions driven by fear and greed, without being mitigated by analysis, reason or balance between the results of risk and rewards. Mania usually runs in parallel with the development of the product business, but time can sometimes go awry.

The technology.com boom of the late 1990s and today’s cryptocurrency boom are two examples of how a mania works in real time. These two events will be highlighted with each stage in this article.

Stage of the idea

The first stage of the mania starts with a great idea. The idea is not yet known to many people, but the potential for profit is huge. This usually translates to unlimited profits, as “something like this has never been done before.” The Internet was one such case. People using paper systems at the time were skeptical, “How can the Internet replace such a well-known and well-established system?” The backbone of the idea is beginning to take shape. This has become the modems, servers, software and websites needed to turn the idea into something tangible. Investments in the idea stage start weak and are made by people “familiar”. In this case, it could be the visionaries and the people working on the project.

In the world of cryptocurrencies, the same question is asked: How can part of the crypto code replace our monetary system, contractual system and payment systems?

Opportunities

The first websites were rude, limited, slow and annoying. Skeptics would look at the words “information superhighway” that the visionaries uttered and said “how can this really be so useful?” The forgotten element here is that ideas start at their worst and then develop into something better and better. This sometimes happens due to better technology, larger scale and cheaper costs, better applications for the product in question or more familiarity with the product, combined with great marketing. In terms of investment, early consumers are getting involved, but there is still no euphoria and astronomical return. In some cases, the investment has yielded a decent return, but not enough to encourage the masses to get involved. This is similar to the slow internet connections of the 90s, the collapse of Internet sites or inaccurate information in search engines. In the world of cryptocurrencies, this is reflected in the high cost of digging coins, slow transaction times and hacking or stealing accounts.

Acceleration

It’s starting to turn out that this internet and “.com” is the hottest new thing. The products and the tangibility are constructed, but due to the huge scale, the cost and time spent would be huge before everyone uses them. The investment aspect of the equation is beginning to outpace business development as markets discount business potential with the cost of investment. The euphoria began to materialize, but only among the first adoptive parents. This is happening in the world of cryptocurrencies with the explosion of new “altcoins” and the big media press that the space is receiving.

The euphoria

This stage is dominated by the parabolic returns and the potential that the Internet offers. I don’t think much about implementation or problems, because “the return is huge and I don’t want to miss it.” The words “irrational abundance” and “mania” are beginning to become common as people buy out of sheer greed. Negative risks and largely ignored. Symptoms of mania include: Any company that has.com in its name is hot, the analysis is thrown out the window in favor of optics, investment knowledge is becoming less obvious among new entrants, expectations for 10 or 100 returns on luggage are common and few people actually know how the product works or doesn’t work. This took place in the world of cryptocurrencies with stellar returns from the end of 2017 and incidents with shares of companies that jumped hundreds of percentage points by using “blockchain” in their name. There are also “takeover bids” in which front companies that are listed but are dormant change their names to something involving a blockchain, and the shares are suddenly actively traded.

The collapse and the burning

The business scene for the new product is changing, but not as fast as the investment scene. Eventually, a change in thinking occurs and a huge sale begins. Volatility is huge and many of the “weak hands” have been wiped out of the market. Suddenly, analysis is used again to justify that these companies have no value or are “overvalued”. Fear is spreading and prices are accelerating. Companies that have no profits and that survive with noise and future prospects are blown away. Incidents of fraud and fraud that are increasing to take advantage of greed have been uncovered, causing more fear and selling off securities. Businesses that have the money are quietly investing in the new product, but the pace of progress is slowing because the new product is an “ugly word” unless profits are convincingly demonstrated. This is beginning to happen in the world of cryptocurrencies with the folding of credit schemes using cryptocurrencies and the more common cases of coin theft. Some of the marginal coins decrease in value due to their speculative nature.

Survivors

At this stage, the investment landscape is charred with stories of losses and bad experiences. Meanwhile, the great idea is becoming tangible and for the business that uses it, it’s a boom. Begins to be applied in daily activities. The product is beginning to become the standard, and visionaries are quoted as saying that the “information superhighway” is real. The average consumer notices an improvement in the product and he starts mass acceptance. Businesses that have had a real profit strategy get hit during the collapse and burnout phase, but if they have the money to survive, they get to the next wave. This has not yet happened in the world of cryptocurrencies. The expected survivors are those who have a tangible business case and corporate support – but it remains to be seen which companies and coins this will be.

The next wave – Business is catching up

At this stage, the new product is standard and the profits become obvious. The business case is now based on profits and scale, not on the idea. A second wave of investment emerges, starting with these survivors and extending to another early-stage mania. The next stage is characterized by companies for social media, search engines and online shopping, which are derivatives of the original product – the Internet.

The conclusion

Mania works on a pattern that manifests itself in a similar way over time. Once one recognizes the stages and thought process of each, it becomes easier to understand what is happening and investment decisions become clearer.

If you do not personally invest in cryptocurrency, then it is likely that at this point you have friends, family members or colleagues who do. Cryptocurrencies have risen from a very niche market to almost completely mass and have done so in a very short period of time. Now that they are so ubiquitous, there is a new question to deal with, and that is the question of how cryptocurrencies are handled in the divorce process.

The determination and distribution of financial assets, as well as the determination of maintenance payments, are central issues that need to be addressed during most divorce proceedings. There are many tools available to a lawyer to disclose financial assets, but when you combine bitcoin and divorce, you are left with something completely new.

Dealing with bitcoin and divorce is different from dealing with other financial assets for several major reasons. One is the pure instability of their value. Bitcoin and other cryptocurrencies are known to fluctuate in absolute value, both up and down. Therefore, the value must either continue to be tracked and updated on the go, or set at a time when it may end up costing something very different in the future. In both cases, this is less than the ideal circumstance for determining and allocating assets or determining maintenance.

Another key issue that needs to be understood between cryptocurrency and divorce is that these markets and their transactions are designed to be both anonymous and secure. Searching for cash, accounts or transactions of an individual is not the same as searching for a bank account, retirement account or stock portfolio. Traceability of a person’s crypto accounts will be difficult at best, and it remains unclear whether or not the courts place any right of subpoena behind it.

Obviously, this is just the beginning of the issue of bitcoin and divorce, because all cryptocurrencies are still on the rise. As more and more people start or continue to use them and they become more common and accepted, the way they are treated as financial assets during divorce proceedings will continue to be in the spotlight. The fact that they rose so fast in the beginning has left many people unprepared today for how to treat them in such matters. Keep in mind that Bitcoin was launched less than a decade ago.

As always, be sure to consult an experienced professional in your area. Although there is still much uncertainty about how bitcoin and divorce will be treated and what types of solutions may await us in the future, an experienced divorce lawyer will be able to guide you through the process and offer you an insight into the areas of financial discovery and all. aspects of pending case.

This year we can see that cryptocurrencies tend to move up and down even by 15% of the value on a daily basis. Such price changes are known as volatility. But what if … this is perfectly normal and sudden changes are one of the characteristics of cryptocurrencies that allow you to make good profits?

First of all, cryptocurrencies have only recently reached the mainstream, which is why all the news and rumors about them are “hot”. After each statement of government officials for possible regulation or ban on the cryptocurrency market, we see huge price movements.

Second, the nature of cryptocurrencies is more like “storage of value” (as gold has been in the past) – many investors see them as a reserve investment option for stocks, physical assets such as gold and fiat (traditional) currencies. The speed of transfer also affects the volatility of cryptocurrency. For the fastest, the transfer takes even just a few seconds (up to a minute), which makes them an excellent asset for short-term trading, if there is currently no good trend for other types of assets.

What everyone should keep in mind – this speed also applies to the life expectancy trends of cryptocurrencies. While in regular markets the trends can last for months or even years – here it happens within even days or hours.

This brings us to the next point – although we are talking about a market worth hundreds of billions of dollars, it is still a very small amount compared to the daily trading volume compared to the traditional foreign exchange market or stocks. Therefore, an investor making 100 million transactions in the stock market will not cause a huge change in price, but on the scale of the cryptocurrency market, this is a significant and noticeable transaction.

Because cryptocurrencies are digital assets, they are subject to technical and software updates of cryptocurrency functions or expanded blockchain cooperation, making it more attractive to potential investors (activating SegWit has doubled the value of bitcoin).

These elements together are the reasons why we see such huge changes in the prices of cryptocurrencies in a few hours, days, weeks, etc.

But the answer to the question in the first paragraph – one of the classic rules of trade is to buy cheap, to sell high – therefore the presence of short but strong trends every day (instead of weaker, lasting weeks or months, as in stocks) gives a lot more chances to make a decent profit if used properly.