Cryptocurrency Volatility, Profitable Roller Coaster

This year we can see that cryptocurrencies tend to move up and down as much as 15% in value daily. Such price changes are known as volatility. But what if … it’s completely normal and sudden changes are one of the characteristics of cryptocurrencies that allow you to make good profits?
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First, cryptocurrencies have only recently entered the mainstream, so all the news and rumors about them are “hot”. After every announcement by government officials about the possible regulation or ban of the cryptocurrency market, we see huge price movements.

Second, the nature of cryptocurrencies is more like a “store of value” (as gold was in the past) – many investors see them as a backup option to investing in stocks, physical assets such as gold and fiat (traditional) currencies. Transfer speed also affects cryptocurrency volatility. With the fastest ones, the transfer takes even a few seconds (up to a minute), making them a great asset for short-term trading when there is currently no good trend for other asset types.
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What everyone should keep in mind is that the speed also follows the trends of the life span of cryptocurrencies. While in normal markets trends can last for months or even years, here it happens within days or even hours.
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This brings us to the next point – although we are talking about a market worth hundreds of billions of US dollars, it is still a very small amount compared to the daily trading volume compared to the traditional currency market or stocks. So a single investor making a 100 million transaction in the stock market will not cause a huge price change, but at the scale of the cryptocurrency market, it is a significant and visible transaction.
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Because cryptocurrencies are digital assets, they are subject to technical and software updates to cryptocurrency features or blockchain collaboration, making them more attractive to potential investors (for example, the activation of SegWit basically doubled the value of Bitcoin).
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All of these elements combined are the reasons why we see such huge swings in cryptocurrency prices over the course of hours, days, weeks, etc.
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But to answer the question from the first paragraph – one of the classic rules of trading is to buy low, sell high – so having short but strong trends every day (instead of weaker ones that last for weeks or months like in stocks) gives a lot more chances to make a decent profit if used correctly.


A Beginner’s Guide to Cryptocurrency Exchange

Cryptocurrency exchange or digital currency exchange is a business that involves exchanging cryptocurrency for other assets such as money or any other digital currency. It is a web service that provides electronic transactions in electronic forms and the collection of fees for them.
Any transactions or transactions with the digital currency exchange can be made using debit and credit cards, postal money order or any other type of money transfer. This article is dedicated to discussing the various cryptocurrency exchanges that facilitate cryptocurrency trading for beginners and what they offer in terms of affordability, ease of use, security, deposit/withdrawal methods, and fees. We hope this cryptocurrency trading guide will help you get started with cryptocurrency exchanges.
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Coinbase is one of the largest cryptocurrency exchanges in San Francisco, California. It is available in 32 countries and currently serves more than 10 million customers. Launched in 2012, it has an easy-to-use interface that makes exchanging digital currency an easy task for a non-technical person. It is also available for iOS and Android. Unfortunately, Coinbase does not provide cryptocurrency mining for beginners and is only an exchange.
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It currently offers four coins: Bitcoin, Bitcoin Cash, Ethereum and Litecoin. It exchanges digital currency for US dollars, Euros and British pounds. With minimal transfer fees, Coinbase has never experienced a security breach, making it the ideal platform for exchanging digital currency. In addition to this, Coinbase also offers a full-fledged advanced exchange called GDAX. It offers more advanced features and different and better trading fees than Coinbase.

Bitstamp is another platform that provides digital currency exchange. It is relatively easy to use and offers more advanced features through TradeView. Bitstamp offers coins such as Bitcoin, Litecoin, Ethereum, Bitcoin Cash and Ripple. It exchanges digital currency for US dollars and Euros. You can put into practice all the latest crypto currency trading methods on this exchange.
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It offers flat deposits via bank transfers and supports debit/credit cards. Perhaps the only downsides to be found with Bitstamp are the slightly high fees and the fact that it has suffered one security breach in its 7 years of operation. However, it is one of the most reliable exchanges. It is available for both iOS and Android.
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Gemini is a British company founded in 2015 by the Winklevoss twins. It is available in several countries including the US, Canada, Hong Kong, Singapore and South Korea. One of the disadvantages of this platform is that it is not very user-friendly. So, beginners are not advised to use this platform.
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It offers two coins and 1 FLAT currency Bitcoin Cash, Ehtereum and US Dollars. Gemini follows strict protocols when it comes to security, and as of 2018, not a single security breach has been detected, making it one of the safest and most reliable digital currency platforms. However, it is important to have digital currency investment strategies before you start trading.

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Digital ticks is a modern crypto exchange that aims to change the game in this sector. They have implemented many latest techniques that make it easy for anyone to start trading.

It has a unique feature called Single Portfolio View that allows traders to see all positions in a single portfolio. With this unique feature, it would be easy for traders to make informed decisions regarding the cryptocurrency exchange. It also supports Bitcoin, Ethereum, Litecoin and Dashcoin.


Kraken is one of the oldest cryptocurrency exchange platforms. Launched in 2011, Kraken is the largest exchange in terms of volume and liquidity for EUR trading pairs. It serves worldwide, including the United States.

Kraken offers a variety of coins including Bitcoin Cash, Ethereum, Monero, Augur, Litecoin and many more. It also supports deposit/withdrawal via bank transfers and cryptocurrencies. Having a not very friendly user interface, it also suffers from stability and performance issues, but it is nevertheless a good platform for cryptocurrency exchanges.


Bitfinex is the largest cryptocurrency exchange platform. Launched in 2012, it has an easy-to-use interface and offers advanced features such as margin trading, margin financing, etc. It is available for both iOS and Android platforms. It offers BTC, BCH, ETH, LTC, IOTA, XMR and NEO.

Like previous cryptocurrency exchanges, it supports withdrawals in USD and EUR via bank transfers. Bitfinex has suffered two security breaches, the first was in May 2015, resulting in a loss of $330,000. And the second in August 2016, which resulted in a loss of $72 million.


EtherDelta is a decentralized exchange that directly supports peer-to-peer connections. It is very different from the cryptocurrency exchange platform discussed earlier. Here, the funds are stored in a smart contract on the Ethereum network, for which you are fully responsible for deposits and withdrawals. Currently, EtherDelta only supports Ehtereum based tokens.

EtherDelta has a rather confusing interface that makes it difficult for users to perform cryptocurrency exchange transactions. Someone once tried to buy 750 Kyber at 0.007 ETH each but ended up buying 0.007 KNC at 750 ETH.


After reviewing various cryptocurrency exchange platforms, we can confidently say that Coinbase and Bitstamp stand out with good features such as security, user-friendly interface, multiple withdrawal/transfer methods, and more.

I wouldn’t call them perfect, but I would recommend that they are the safest bet you can make. Each cryptocurrency exchange platform is unique in its own way and has both advantages and disadvantages. We just need to choose the one that suits our needs. We hope this guide to basic cryptocurrency exchange and trading gives you a head start on your cryptocurrency trading journey.

E-Currency Exchange: Can Darwing Be Applied To It?

How would you feel if you doubled your investment within the first month? Do you know that this is possible with electronic currency exchange?

To some people, it may seem like it’s not something they can do. Although I didn’t really do much, I have to say that I was pleasantly surprised when I realized that I had doubled my investment in less than 30 days. The only reason why you wouldn’t be able to get these results for yourself is because you didn’t get the proper education for yourself.

What most people don’t realize is that when a professional teaches you directly in their area of ​​expertise, you start learning much faster and gain an understanding of things that may have taken you years to learn. The same can be applied if you want to trade e-currency. What takes months to understand can be learned in hours if you choose to learn directly from a professional.

This is one of the most important principles that most people need to start applying in their lives in order to be successful: learning from others means becoming successful in half the time.

What happens when you learn how to trade cryptocurrencies directly from a professional?

When you think about the life-changing impact this can have, imagine knowing exactly how the system works and being able to double your money as a result.

The most important aspect that changes is that you are now learning strategies that make more money. Once you learn and follow this strategy, it will start showing up in your bank statements and you will realize that it is something you can do. You’ll learn what it’s like to be a successful investor, your life will become more comfortable, and you’ll be able to brag to your wife about how good an investor you are.

While you are starting to invest in electronic currency, you may be asking, “How does it work?” Well, here is the answer.

This is the concept behind the exchange of electronic currencies: every day, a lot of money is made through monetary transactions on the Internet. This is what we call “internet money” that requires having a physical backup of every cent that is traded. Because this happens daily, the same day you decide to provide financial support to “Internet Cash”, the same day you will start making money from it.

The easiest way to learn from a professional is to take a training program that gives you all the knowledge a professional has. You will start thinking, acting and trading electronic currencies like a pro.

Cryptocurrency is the way forward and the possibilities

Cryptocurrency is getting better every day. This continues to increase your wealth, as do your viral posts on social media. A contagious financial instrument for a good portfolio and a catalyst for growth. An interesting fact is that there are more than 5000 cryptocurrencies.

2021 has been fantastic, but where to next?

Let’s zoom in on the situation here. Both Bitcoin and Ethereum have reached record highs. Long-term investors are counting on it. By the time you read this article, there may be even more great news about cryptocurrency. I will try to present here the future possibilities of cryptocurrency.

New rules are currently in effect. They are under the carpets. Measures are being taken to minimize the risk from cybercriminals. The goal is to make this investment a safe tool for people. For example: In September, China announced that all cryptocurrency transactions are illegal. Clear rules remove all obstacles to make trade safer.

How will the new rules affect investors?

It will be easier for the IRS to track tax evasion. Investors can keep track of transactions transparently. For example: it will be easier to record capital gains or losses on crypto-assets. On the other hand, market fluctuations will also affect the price of cryptocurrencies.

ETF approval is an important factor to consider

Bitcoin ETF debuts on NYSE. This will help investors buy cryptocurrency from existing investment companies. As demand rises, how do stock and bond markets deal with it. Let’s look at it from an investor’s perspective. Easier access to cryptocurrency assets helps people acquire them without hassle. If you are considering investing in a Bitcoin ETF, remember that the risks are the same as with any other cryptocurrency. You have to be willing to take risks. Otherwise, it is useless to invest money.

What does the future hold?

Bitcoin is the best in the crypto market. It has the highest market capitalization. In November 2021, its value increased to $68,000. The rate was $60,000 in October and $30,000 in July. There are large fluctuations in market rates. Experts suggest keeping the market risk for cryptocurrencies below 5% in the portfolio. When it comes to short-term growth, people hope. Bitcoin price volatility is something to consider. If you want to play long, short-term results shouldn’t affect you.

Looking at it from an angle to increase your wealth is not a very good decision. Stick to traditional investment instruments other than cryptocurrency. For example: if you want cryptocurrency as a tool to save for retirement, it’s time to rethink your decision. Keep your investments small and diversify them. This will reduce the risk factor. At the same time, you will have more time to think about cryptocurrency.

It is necessary to spend your money wisely and then invest in cryptocurrency. The associated risk factor must be assessed and a decision made. I hope this article helps you.

Trading on the Forex market (foreign exchange)

What is Forex trading?

Forex, also known as foreign exchange and foreign exchange market, is where currencies are traded. Currencies are important to people all over the world.

Currencies are necessary for exchange to conduct foreign trade business. It is the largest and most liquid market in the world. It dwarfs the various markets to the extent of even stock trading systems with normal exchange valuations around.

It is a global decentralized marketplace for exchanging monetary forms. This market defines distance trading. The main participants in this market are the larger universal banks. There is a wide range of different types of buyers and sellers in this market.

The Forex trading market is unique due to the following characteristics:

A huge volume of exchange, speaking of the largest class of resources on the planet, which causes high liquidity;. A continuous task, 24 hours a day, except at the end of the week;

• Geographic dispersion;

• Continuous work 24 hours a day, except for weekends;

• Variety of factors affecting exchange rates;

• Low rate of return compared to other markets;

• Using leverage to increase profit and loss margins.

The Forex trading market is called a haven of perfect competition.

With such a huge number of experts associated with Forex trading, there are several dangers associated with it that need to be considered.

One needs to be sure that their internet connection and computer are working smoothly at all times. We all know that things like this happen: servers go down and our computers freeze or shut down depending on the current activity. This may affect transactions, so be aware that something may happen during trading.

There are also risk-free accounts that allow you to practice without losing your own money.


The Forex trading market is always open 24 hours a day, 7 days a week. It doesn’t matter your time, location, internet connection and computer, you can log in anytime to rest me trade.

It’s scalable. With this feature, the trader can control and limit the risk depending on his account.

Leverage is one of the huge advantages of the Forex trading market, where brokers allow trading up to 2% of the total contract size compared to the stock market. It is possible to use a small account for trading large amounts, where the winnings can be quite large and only small capitals are needed to obtain them.

Data and software are provided free of charge; you don’t have to pay, all you have to do is log in to your broker’s website. Download the software, the charts will be displayed as soon as you log in.

There are no commissions; well, you pay costs for spreads that depend on how much you trade.


As an individual, you face a lot of competition, especially from huge funds associated with money, with trained traders and large resources invested in programming and equipment.

There is no centralized exchange, unlike the stock exchange. A broker acts like an exchange, making it a market maker.

You have no idea about capital exposure and how to calculate leverage, then you will suffer big losses.

Good traders start trading with only 2% of initial capital and no more.

The Forex trading market moves differently throughout the day, there are only a few peak hours that are worth your time to trade.


Margin trading also has a high level of risk that a smart trader should avoid. Always assess your capital and the amount of risk you are willing to take when trading.

Never enter a Forex trade with an amount you cannot afford to lose.

It is also your commitment to see all the dangers that accompany Forex trading before you go for your first trade.

Leverage is one of the biggest risks in Forex trading. It can bring big profits if you win but on the other hand huge losses if you lose.

Forex trading in Islam.

According to Islamic law, this question is difficult to answer unequivocally. Trading money under certain conditions is halal, according to an Islamic expert, but there are some questions under the right conditions.

This means that any transaction that involves an element of interest is completely prohibited according to Islam. Forex trading is not permitted in Islam and is defined very broadly. The Forex retailer mirrored the market by paying or charging the enthusiasm between the two parts of any money match whose position remains open in the medium term. It would seem that this is permissible as long as it (the exchange) takes place from hand to hand. Prophet Muhammad (peace be upon him) meant the exchange of various types of goods. This will be done between the two parties, recognizing that it is a natural aspect of trade.

Most Forex professionals have responded to demonstrate the power and weight of Islamic dealers by creating an “Islamic Forex Broker” and offering “Muslim Forex Accounts” that operate without installments.

However, “regular” Forex trading offered by Forex brokers, with same-day interest payments or fees, can get rid of the fish obstacle.

Online trading requires online exchanges for crypto currency trading. Many online exchanges help by providing strong security, fast transactions and stability. Some of them are Binance, Changelly and recently introduced Nexchange. These platforms deal in the trading of various cryptocurrencies.

Why did banks ban cryptocurrency purchases with their credit cards?

The wave of banks banning cryptocurrency purchases with their credit cards is growing as Wells Fargo now supports such bans. A number of other banks such as Chase, Bank of America, Citigroup and others are also part of this new trend that restricts the purchase of cryptocurrencies.

It appears that debit cards can still be used to purchase crypto (check with your bank to confirm their policy), but the use of credit cards to purchase crypto has changed and these banks are leading the way with these purchase bans, and probably not it will be a long time before this ban becomes standard.

It would seem that the overnight purchases started to go away when credit cards were used to buy crypto, and people who had never had a problem before buying crypto with their credit cards started to notice that they were no longer allowed to make these purchases. Volatility in the cryptocurrency market is to blame here, and banks don’t want people to spend a lot of money that will be a problem to get back if there is a major downturn in cryptocurrency like it did at the beginning of the year.

Of course, these banks will also lose money to be made when people buy cryptocurrency and the market goes up, but they seem to have decided that the bad outweighs the good when it comes to gambling with their credit cards. It also protects consumers by limiting their ability to get into financial trouble by using credit to buy something that could leave them cash and credit poor.

Most investors who used credit cards to buy cryptocurrency were probably looking for a short-term gain and didn’t plan to stick around for the long term. They were hoping to get in and out quickly and then pay off their credit cards before the high interest rates hit. But due to the constant volatility of the cryptocurrency market, many who bought with this plan in mind have lost huge amounts of assets with the market downturn. Now they are paying interest on the money they lost, which is never a good thing. This, of course, was bad news for banks, and has led to the current and growing trend of banning crypto purchases with credit cards.

The lesson here is that you should never max out your line of credit to invest in crypto, and only use a percentage of your hard assets to buy crypto. These funds should be funds that you can block for the long term without hurting your budget.

So, don’t find yourself investing in a cryptocurrency you’ll need soon, only to find that an economic downturn has taken the money out of your pocket. There’s an old adage that says, “Don’t gamble with money you can’t afford to lose,” and that’s a lesson banks want people to learn as they venture into this new investment frontier.

Types of cryptocurrency wallets and their general security aspect

There are different types of cryptocurrency wallets that allow users to store and access their digital currencies in different ways. The question that is relevant in this context is how secure these wallets are. Before looking at the security aspect, it is helpful to understand the different types or varieties of cryptocurrency wallets that exist today.

Cryptocurrency wallet: types and varieties

These wallets can be broadly divided into 3 categories:

  • Software wallets
  • Hardware wallets and
  • Paper wallets

Cryptocurrency software wallets can again be divided into desktop wallets, online wallets, and mobile wallets.

  • Desktop Wallets: These wallets are designed to be downloaded and installed on desktops and laptops. This particular option provides the highest level of security, although their access is limited to the computer on which they are installed. Moreover, if your computer is hacked or infected with a virus, there is a possibility that you can lose all your money.
  • Online wallet software: This range of cryptocurrency wallets is cloud-based. Therefore, they can be easily accessed from any computing device and from any geographical location. Besides the convenience of accessibility, this type of digital wallet stores private keys online. The keys are even controlled by third parties; this makes them easily vulnerable to hacking and theft.
  • Mobile wallets: Unlike the other two types, mobile software wallets work on smartphones through an app. They can be easily used anywhere, including retail stores and shopping malls. This range of wallets are usually much simpler and smaller compared to the usual desktop wallets to fit the very limited space on mobile phones.

The difference between hardware and software wallets

Hardware digital wallets differ from software wallets in terms of storing the user’s private keys. Hardware wallets store user keys in a hardware device (such as a USB). Therefore, since the keys are stored offline, these wallets provide additional security. In addition, hardware wallets are easily compatible with many online interfaces and can also handle different currencies. This variety of cryptocurrency wallets is also easy to transact. As a user, you simply need to connect your device to any computer that is connected to the Internet before entering your PIN, transferring currency and simply confirming the transaction. Your digital currency is stored offline by hardware wallets and hence the risk factor or security issue is also much less.

Paper Digital Wallets: This range of digital wallets is also convenient and offers a high level of security. The term “paper wallet” refers only to a printout of a user’s public and private keys. However, given the examples, it can also refer to a software application designed to securely generate keys before printing.

Sweeping with paper purses

Using paper wallets is relatively easier. To transfer any cryptocurrency to your paper wallet, simply transfer funds from your soft wallet to the public address displayed on your paper wallet. Likewise, when you want to spend or withdraw your money, simply transfer funds from your paper wallet to your software wallet. This procedure is popularly called “sweeping”.

Sweeping can be done manually by entering private keys or scanning a QR code on a paper wallet.

How secure are cryptocurrency wallets

Different types of digital wallets offer different levels of security. The security aspect mainly depends on two factors:

  • The type of wallet you are using is hardware, paper, online, desktop or mobile
  • Selected service provider

It goes without saying, it is much safer to store currencies in an offline environment than online. Security measures simply cannot be ignored, no matter which wallet you choose. If you lose your private keys, all the money stored in the wallet will disappear from your hands. On the other hand, if the wallet is hacked or you transfer funds to a fraudster, it will be impossible to either reverse the transaction or get the money back.

Investing in cryptocurrency is a smart business idea, and for that, using a suitable wallet is inevitable. You just need to be a little careful to ensure the safety and security of your money transfers and transactions.

How to find cryptocurrency predictions?

If you’ve invested in cryptocurrency, you know that keeping an eye on market conditions is paramount. As an investor, you need to be aware of what is happening with different currencies and what other traders are saying about the future.

Therefore, if you want to make smart investment decisions, it is better to consider cryptocurrency predictions. Fortunately, there are many sources on the Internet that allow you to research and search for predictions. This can help you stay ahead of others in the market. Make sure you stay away from scammers and other schemes that claim to make you rich overnight. Below are a few trustworthy sources of predictions that can help you succeed as an investor.


If you’re looking for a reliable source of predictions, check out TradingView. This platform offers great charting tools that anyone can use. It doesn’t matter if you are a beginner or an experienced user. This platform allows you to learn how different types of cryptocurrencies behave over time. That way, you can predict their behavior going forward.

One of the main reasons why this platform offers reliable predictions is that it has a large community of experienced investors who are always ready to share their knowledge. In fact, more than 3.3 million active investors are part of this platform.


Finder is your ideal source if you want valuable information about the future of cryptocurrency from various trusted authorities. In fact, Finder regularly consults with financial and cryptocurrency experts and publishes their predictions for other investors.

In addition, the platform works with panelists from various industries such as news, finance and technology. Based on discussions with these experts, Finder can make accurate predictions.

Bitcoin Wolf

Bitcoin Wolf is another great platform that can provide accurate cryptocurrency predictions. By joining the chat of this platform, you can communicate with other experienced investors 24/7. Apart from this, you can benefit from other great features offered by the platform such as real-time alerts, peer-to-peer advice centers, technical analysis, etc.

This place is the best platform to talk about the future of these currencies. And the great thing is that experts will give you a deeper insight into this world and help you make informed decisions.

When it comes to investing in cryptocurrency, make sure you do your homework first. It’s a great idea to consider forecasts to make better decisions later. You should pay attention to what other experienced investors think about the future. In addition, you can learn the point of view of experts in this field.

Final thoughts

So if you check out the above sources, you can get an insight into the minds of other investors in the industry. By doing so, you can make better decisions that will ensure your business becomes profitable. It is better to check the forecasts regularly.

4 Common Mistakes to Avoid When Trading Cryptocurrency

Today, you can invest in cryptocurrency quickly and easily. You have the right to invest with the help of online brokers, but you cannot say with certainty that it is a foolproof venture. There are many risks and pitfalls that you need to face if you are thinking of going into this field. However, you don’t have to be a whiz in the world of computer science or finance to get started. This means you have to make an informed decision. In this article, we are going to talk about some common mistakes that most cryptocurrency investors make. Read on to learn more.

1: You are buying the wrong coins

If you decide to buy bitcoins, you need to be careful. There are different types of Bitcoin such as Private Bitcoin, Bitcoin SV, Bitcoin Gold and Bitcoin Cash. In other words, there are many branches that you need to keep an eye on.

While it’s not bad or a scam, make sure you know what you’re buying. Even if you buy the wrong coin, you can still sell it back and search for the right one.

2: You are not for a Wild Ride

If you want to enter the world of cryptocurrency, you need to have nerves of steel to face volatility. According to Theresa Morrison, who is a certified financial planner in Arizona, unlike the traditional world of finance, cryptocurrency has extreme volatility.

According to her, as a new investor, you should first invest a small amount, like $100 a month, and then forget about it. If you follow the market daily it will drive you crazy.

Other than that, just because you are a beginner, you can stick with 2-3 cryptocurrencies that you are familiar with. Ideally, you can consider established coins like Bitcoin and Ethereum first.

3: You don’t verify the address

Many cryptocurrency traders lose their coins just because they don’t verify the address. Unlike a regular bank transfer, you cannot simply reverse the transaction. Therefore, you should be very careful when making this type of transaction using cryptocurrency. If you are not careful enough, you can lose thousands of dollars in a matter of seconds.

4: You have lost access to your wallet

Although the number of bitcoins is limited to 21 million, the full number of bitcoins is not created. The reason is that many coin owners have lost access to their wallets due to forgotten passwords.

According to a report by Chainanalysis, 1 in 5 bitcoins mined so far are inaccessible due to lost passwords. So make sure you keep your password in a safe place before you start reading.

In short, we suggest you avoid these four most common mistakes if you want to succeed in the world of cryptocurrency trading. Hopefully these tips will help you stay safe and successful as a trader or investor.

Fear not, China is not banning cryptocurrency

In 2008, after the financial crisis, a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” was published, detailing the concepts behind the payment system. Bitcoin was born. Bitcoin has gained world attention due to its use of blockchain technology and as an alternative to fiat currencies and commodities. Touted as the next best technology after the Internet, blockchain offers solutions to problems we have been unable to solve or ignored for the past few decades. I won’t go into the technical side of this, but here are some articles and videos I recommend:

How Bitcoin Works Under the Hood

A gentle introduction to blockchain technology

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

Fast forward to today, February 5th to be exact, the Chinese authorities have just introduced a new set of regulations banning cryptocurrency. The Chinese government already did this last year, but many of them went through foreign exchanges. It has now enlisted the all-powerful “Great Firewall of China” to block access to foreign exchanges in an attempt to prevent its citizens from conducting any cryptocurrency transactions.

To learn more about the Chinese government’s stance, let’s go back a couple of years to 2013, when Bitcoin was gaining popularity among Chinese citizens and prices were skyrocketing. Concerned about price fluctuations and speculation, the People’s Bank of China and five other government ministries issued an official notice in December 2013 titled “Bitcoin Financial Risk Prevention Notice” (link in Chinese). Several points were noted:

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

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

3. All companies and websites offering Bitcoin-related services must register with the necessary government ministries.

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

5. Organizations that provide Bitcoin-related services must inform the public about Bitcoin and the technology behind it and not mislead the public with misinformation.

In simple terms, Bitcoin is classified as a virtual commodity (such as in-game credits) that can be bought or sold in its original form, rather than exchanged for fiat currency. It cannot be defined as money – something that serves as a medium of exchange, a unit of account and a store of value.

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ from 2013, it is still relevant to the Chinese government’s stance on Bitcoin, and as mentioned, there is no sign of a ban on Bitcoin and the cryptocurrency. Rather, Bitcoin and blockchain regulation and education will play a role in China’s crypto market.

A similar message was published in January 2017, which again emphasized that Bitcoin is a virtual commodity and not a currency. In September 2017, the boom in Initial Coin Offerings (ICOs) led to the publication of a separate notice entitled “Financial Risk Prevention Notice of Issued Tokens”. Soon after, ICOs were banned and Chinese exchanges were investigated and eventually shut down. (Hindsight being 20/20, they made the right decision to ban ICOs and stop pointless gambling). Another blow was dealt to the Chinese cryptocurrency community in January 2018, when mining faced a major crackdown due to excessive power consumption.

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

Since 2011, China has played a crucial role in the meteoric rise and fall of Bitcoin. At its peak, China accounted for more than 95% of the world’s bitcoin trading volume and three-quarters of its mining operations. With the intervention of regulators overseeing trade and mining operations, China’s dominance has been greatly reduced in exchange for stability.

With countries like Korea and India following their lead in cracking down, the future of cryptocurrency is now being cast in shadow. (I’ll repeat my point here: countries regulate cryptocurrency, not ban it). There is no doubt that in the coming months we will see more countries join in taming the booming crypto market. Indeed, some kind of order was long overdue. Cryptocurrencies have experienced unprecedented price volatility over the past year, with ICOs happening literally every other day. In 2017, total market capitalization rose from $18 billion in January to an all-time high of $828 billion.

Still, the Chinese community is in surprisingly good spirits despite the crackdown. Online and offline communities are thriving (I personally attended quite a few events and visited some firms) and blockchain startups are popping up all over China.

Major blockchain firms such as NEO, QTUM and VeChain are attracting a lot of attention in the country. Startups like Nebulas, High Performance Blockchain (HPB) and Bibox are also gaining a significant amount of traction. Even giants like Alibaba and Tencent are also exploring the possibilities of blockchain to improve their platform. The list goes on and on, but you get my point; it’s going to be HUGE!

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

China’s 13th Five-Year Plan (2016-2020) envisioned the development of promising technologies, including blockchain and artificial intelligence. It also plans to strengthen research on fintech applications in regulation, cloud computing and big data. Even the People’s Bank of China is also testing a blockchain-based digital currency prototype; however, since it will most likely be a centralized digital currency with encryption technology, its acceptance by Chinese citizens remains to be seen.

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

A recent report titled “2018 China Blockchain Development Report” (English version at the link) by the China Blockchain Research Center details the development of China’s blockchain industry in 2017, including the various measures taken to regulate cryptocurrency on the mainland. A separate section of the report highlights the optimistic outlook of the blockchain industry and the massive attention it has received from VCs and the Chinese government in 2017.

In summary, the Chinese government has shown a positive attitude towards blockchain technology, despite its application to cryptocurrencies and mining. China wants to control cryptocurrency, and China will get control. Repeated control measures by regulators were aimed at protecting citizens from the financial risks of cryptocurrencies and limiting capital outflows. At the moment, it is legal for Chinese citizens to hold cryptocurrencies, but they are prohibited from transacting in any form; hence the ban on exchanges. If the market stabilizes in the coming months (or years), we will undoubtedly see a revival of the Chinese crypto market. Blockchain and cryptocurrency go hand in hand (except on a private chain where a token is not needed). So countries can’t ban cryptocurrency without banning blockchain – an amazing technology!

One thing we can all agree on is that blockchain is still in its infancy. There are many exciting developments ahead, and now is definitely the best time to lay the groundwork for a blockchain-enabled world.

Last but not least: HODL!

Things that look positive for cryptocurrencies

Although 2018 saw corrections in the cryptocurrency market, everyone agrees that the best is yet to come. There have been many events in the market that have changed things for the better. With proper analysis and the right dose of optimism, anyone who has invested in the crypto market can make millions from it. The cryptocurrency market is here to stay. In this article, we give you five positive factors that can drive further innovation and the market value of cryptocurrencies.

1. Innovation in scaling

Bitcoin is the first cryptocurrency on the market. It has the most users and the most value. It dominates the entire value chain of the cryptocurrency system. However, it is not without problems. Its main bottleneck is that it can only handle six to seven transactions per second. By comparison, credit card transactions average several thousand per second. There seems to be room for improvement in transaction scaling. With the help of peer-to-peer transaction networks based on blockchain technology, the volume of transactions per second can be increased.

2. Legitimate ICOs

Although there are cryptocurrencies on the market with a stable value, new coins are created that are designed to fulfill a specific purpose. Coins like IOTA are designed to help the Internet of Things market exchange powerful currencies. Some coins address the issue of cyber security by providing encrypted digital vaults to store money.

New ICOs come up with innovative solutions that disrupt the existing market and bring new value to transactions. They also gain credibility in the market with their easy-to-use exchanges and reliable backend operations. They are innovating both on the technology side of using specialized mining equipment and on the financial market side, giving more freedom and options to investors on the exchange.

3. Clarity of regulation

In the current scenario, most of the governments are studying the impact of cryptocurrencies on the society and how their benefits can be obtained for the society as a whole. We can expect that reasonable conclusions can be drawn from research.

Few governments are already choosing to legalize and regulate crypto markets like any other market. This will prevent uninformed retail investors from losing money and protect them from harm. 2018 is expected to see regulations that promote the growth of cryptocurrency. Perhaps this will pave the way for widespread adoption in the future

4. Increasing application

There is tremendous enthusiasm for the application of blockchain technology in virtually all industries. Some startups are coming up with innovative solutions like digital wallets, cryptocurrency debit cards, etc. This will increase the number of merchants willing to transact in cryptocurrencies, which in turn will increase the number of users.

The reputation of crypto-assets as a transaction medium will only grow as more people trust the system. Although some startups may not survive, they will make a positive contribution to the overall state of the market by creating competition and innovation.

5. Investments from financial institutions

Many international banks are monitoring the cryptocurrency situation. This could lead to institutional investors entering the market. The influx of significant institutional investment will fuel the next phase of growth in crypto markets. He took over many banks and financial institutions.

As the surprises and bottlenecks around cryptocurrencies diminish, traditional investors will begin to use them more. This will lead to great dynamism and liquidity, much needed in any growing financial markets. Cryptocurrency will become the de facto currency for transactions worldwide.

The best books on cryptocurrency

The Sovereign Individual ~ James Dale Davidson and William Rees Morgue

The Sovereign Person is one of those books that will change the way you look at the world forever. It was published in 1997, but the extent to which it foresees the impact of blockchain technology will give you chills. We are entering the fourth stage of human society, moving from the industrial to the information age. You need to read this book to understand the scope and scale of how things will change.

As it becomes easier to live comfortably and earn an income anywhere, we already know that those who will truly thrive in the new information age will be workers who are not tied to one job or career and are not dependent on location. The appeal of choosing where to live based on cost savings is already more appealing, but it goes beyond digital nomadism and freelance gigs; the foundations of democracy, government and money are changing.

The authors predicted Black Tuesday and the collapse of the Soviet Union, and here they predicted that the rise of people’s power would coincide with decentralized technology eroding the power of governments. The death toll in nation-states, they predicted with uncanny prescience, would be a private digital asset. When that happens, the dynamic of governments as immovable thugs robbing hard-working citizens of their taxes will change. If you become someone who can solve problems for people anywhere in the world, then you are about to enter the new cognitive elite. Don’t miss this one.

Choice quote: “When technology becomes mobile and transactions take place in cyberspace, as they increasingly will, governments will no longer be able to charge more for their services than they are worth to the people who pay for them.”

Sapiens: A Brief History of Mankind ~ Yuval Noah Harari

Whenever I want to impress someone with how good this book is, I ask, “Do you want to know the fundamental difference between humans and apes? A monkey can jump up and down on a rock, wave a stick and shout to his friends that he saw a threat coming their way. “Danger! Danger! Lion!” A monkey can lie too. She can jump up and down a rock, wave a stick, and shout about a lion, when in fact there is no lion. He’s just being silly. But what the monkey can’t do is jump up and down, wave a stick and shout, “Danger! Danger! Dragon!’

Why is this? Because dragons aren’t real. As Harari explains, it’s the human imagination, our ability to believe and talk about things we’ve never seen or touched, that has pushed the species to cooperate in large numbers with strangers. There are no gods, no nations, no money, no human rights, no laws, no religions, no justice in the universe beyond the common imagination of men. We make them so.

All of this is a pretty great preamble to where we are today. After the cognitive revolution and the agricultural revolution, Harari takes you to a scientific revolution that started just 500 years ago and could start something completely different for humanity. The money, however, will remain. Read this book to understand that money is the greatest story ever told, and that trust is the raw material from which all kinds of money are built.

Choice quote: “Sapiens, on the other hand, live in a three-layered reality. Besides trees, rivers, fears and desires, the world of Sapiens also contains stories about money, gods, countries and corporations.’

The Internet of Money ~ Andreas M. Antonopoulos

If the two books mentioned above help us understand the historical context in which Bitcoin first appeared, this book explains why with infectious enthusiasm. Andreas Antonapoulos is perhaps the most respected voice in the crypto space. He has been traveling the world as a Bitcoin promoter since 2010, and this book is a summary of the talks he gave on the circuit between 2013 and 2016, all of which have been prepared for publication.

His first book, Mastering Bitcoin, is a deep technical dive into the technology aimed more specifically at software and systems developers, engineers, and architects. But this book uses some choice metaphors to explain why you can’t ban or shut down Bitcoin, how the scaling debate doesn’t matter, and why Bitcoin needs the help of designers to lock in mass adoption.

“The first time you drive your brand new car in the city,” he writes, “you’re driving on roads that are driven by horses and that have infrastructure designed and used for horses. There are no traffic lights. There are no traffic rules. No hard coating. roads. And what happened? The cars got stuck because they had no balance and no four legs.’ But fast-forward a hundred years, and cars that were once derided have become the absolute norm. If you want to dive into the philosophical, social, and historical implications of Bitcoin, this is your starting point.

Choice quote: “Bitcoin is not just money for the Internet. Yes, it is the perfect money for the Internet. It is instant, secure, free. Yes, it is money for the Internet, but it is much more. Bitcoin is the Internet of Money. Currency is only first application. When you understand this, you can look beyond price, you can look beyond volatility, you can look beyond fashion. At its core, Bitcoin is a revolutionary technology that will change the world forever. Join in.”