cryptocurrency Archives

In this modern day and age, especially in today’s uncertain times, more and more people are shopping online or are making purchases from their home computers, smartphones and tablets. While most online companies accept debit and credit card payments, it is not uncommon to see certain retailers accepting a form of payment known as cryptocurrency. Understanding what these types of funds are and how it can work for you is crucial when using it correctly.

What is Cryptocurrency?

Essentially, cryptocurrency is digital money that is created and protected using code. This form of payment is monitored heavily by a peer-to-peer protocol and includes an encrypted string of data specific to its worth. Some of the most popular forms of cryptocurrency include Bitcoin and Ethereum, with Bitcoin being one of the most popular and widely used. The value of such currency has increased over the course of the few years it’s been in circulation. Different cryptocurrencies can be traded against each other via dedicated crypto exchanges, without the need for traditional cash transactions. Additionally, crypto CFDs (contracts for difference) are available for those who wish to speculate on cryptocurrency price movements against the US Dollar.

Pros

One of the most obvious benefits of using cryptocurrency is that it is not specific to one country. Unlike money that is specific to one or two areas, this form of payment offers ubiquity. Funds are effortless to transfer, authenticate and secure, so you won’t need to worry about issues with late payments. Transactions are final and cannot be reversed, so you won’t need to deal with people wanting refunds and returns when handling payments. Transfers take just seconds in comparison to other forms of payments that can take minutes, hours or even days.

Cons

A common problem with cryptocurrency is that some establishments may not accept it. This means that you won’t always be able to use your Bitcoin everywhere that you go shopping. Bitcoin and other methods are vulnerable to theft like any other form of payment that you might have used in the past, so you’ll need to take security measures to keep your balance protected. Because Bitcoin and other types aren’t government-backed, some people don’t trust payments using these methods and will not accept them at all. While it might be considered a positive for many people, the fact that all sales are final and irreversible can be a deterrent for some.

The Bottom Line

Bitcoin and other options are still considered a relatively new form of currency and they aren’t entirely understood by a lot of people. It’s not used everywhere and even though it’s gone up in value since first introduced, it has had issues with maintaining this value over time. For this reason, it’s crucial that you educate yourself about different methods before investing into anything or using them for yourself. Many people rely heavily on funds, like Bitcoin, while others may be hesitant to make the switch. Educating yourself about how cryptocurrency works and what you can expect out of it will make all the difference in terms of your financial security.

Read Complete Article

Cryptocurrencies are still a relatively new phenomenon to a lot of people. Very few people all over the world can wrap their heads around this concept, but the interest is growing and will soon enough be household knowledge. Before then, those already experienced in this industry need to continue enlightening those that are not to dispel the skepticism inherent in a lot of people. Apart from the very many uses digital currencies promises or prospects to provide, there is the part of trading and making profits or losses. New ways of trading, including using crypto trading bot have emerged over time. We will go through some of the latest trading methods.

Speculating

There are two ways you can approach cryptocurrency trading. the first one is to speculate on particular coins and either short or long sell them. If you think the price will go up, you buy and wait, then sell when the price reaches your target. If you project the price will go down, you sell and wait for it to go down then you can buy at a lower price. The difference in each case between the two points of transactions is your profit. You should know, however, that if the price goes against your prediction, you make a loss. You need to identify a reliable broker to make such trades. The broker takes a fixed percentage of your trading volume.

Building a Portfolio

The second method is building a portfolio, much the same way you would buy stocks from different companies and keep them for a given period. With stocks, you can earn dividends at the end of a trading period, but with cryptocurrencies, you will have to wait and sell them when the price is higher than you bought them. This strategy requires patience as it is long term. You should identify coins that look promising and have a mix in your portfolio. Mixing different digital currencies reduces your risk. If you are patient enough to build a large and diversified portfolio, you will have a higher chance of making a profit in the long run.

Using Advanced Trading Bots

You can start with a minimal investment then grow your way up. A good starting point would be about just $500. The secret is to keep buying a few coins now and then and grow your portfolio. Many inexperienced traders just buy and leave the coins lying on the exchanges waiting to cash on them when the price goes up. However, the trick is to keep a consistent growth of your portfolio, and releasing some every once in a while. You can use advanced trading bots to do this task for you instead of utilizing a lot of time trying to read the markets.

Compounding

Compounding is a secret of growing your wealth, but very few people are patient to reach their goals. This process involves reinvesting your profits to hit a particular set goal. If you can hold on and not be tempted to withdraw your investment, you can make it big with cryptocurrencies.