Lyndsey Annabel

Bitcoin a Cryptocurrency

The most popular cryptocurrency is bitcoin. This system was created by Satoshi Nakamoto. It is not known if Satoshi really exists or is referring to a group of people who brought about the use of Bitcoin.

 

 

 

 

 

To understand further how Bitcoin works, it grants its users to generate a Bitcoin wallet. The users automatically become the owner, guardian, and maker of the Financial instrument. The wallet is where the users save their bitcoins. This is also where Bitcoin mining is performed. compare to real money, Bitcoin Mining is a process wherein the verification of amounts to be transferred takes place. It is where a user transfers a cryptocurrency to another account. An encryption process takes place which is then registered in the blockchain. Just like when you log in to any site, each bitcoin wallet has its own password and numbering. Confidentiality is dependent on its user. Bitcoin does not disclose the identity of the wallet’s owner since only their wallet number is the one available. This is one of its critical points because one is not able to identify the real user compared to the traditional banking system.

Posted by Lyndsey Annabel in Crypto

Cryptocurrencies – Subject To New Threats

Whether or not a company accepts a cryptocurrency, it is still subject to the risk of new threats. Bitcoin, the most popular cryptocurrency at the moment, has experienced rapid growth in terms of perceived value. A year ago, the exchange rate was $ 104 per Bitcoin, peaking at around $ 1,100 in December 2013. This explosion in value has sparked new advanced threats centered on the creation (“mining”) and theft of Bitcoin. No device has remained immune to the phenomenon, including mobile environments, virtualization platforms such as VMware, and endpoint devices.

The Risks of Investing in Cryptocurrency

Companies that accept payments in cryptocurrencies are exposing themselves to new types of risk. Some points must be considered very carefully: immediately store or convert the digital money received, pay suppliers in traditional or cryptographic currency, what methods to use to convert cryptocurrencies into normal currency if necessary. Storing crypto money as a form of asset or payment exposes the company to risks similar to those of any other digital asset, not to mention extreme fluctuations in market values. Using a payment processor to convert cryptocurrencies into traditional money can mitigate this risk. But if a company decides to leave these options out and keep digital money, this is where the implications of such a choice would come in as most regulators do not currently insure assets of this type. To ensure maximum security, it is highly advisable to keep Bitcoins in an isolated storage resource disconnected from everything else.

The new advances made by cryptocurrencies offer companies interesting opportunities to compete in the global market; however, new spaces have also been created for advanced threats, also provoked from within companies themselves. It is, therefore, necessary to be aware of the implications that this phenomenon presents in terms of digital security regardless of the attitude that a company may have towards cryptographic currencies. Careful examination of users and internal assets is essential for maximum protection against fraud and vulnerabilities and new waves of attacks. Finally, businesses need to understand the security risks associated with accepting cryptocurrencies.

Posted by Lyndsey Annabel

How to Avoid Scams when getting into Cryptocurrency

Becoming involved with cryptocurrency most definitely has its ups and downs. There is bound to be risks and dangers associated with such transactions. Scams are everywhere, Especially online.

Expert advice that when you get into the world of cryptocurrency it is best to get involved with companies and startups that are blockchain-powered, those that track detailed transaction data.

Assessing whether or not they have tangible and solid business plans is an essential, and checking up on their rules and digital currency liquidity is a bonus to ensure a smooth and convenient transaction.

Posted by Lyndsey Annabel in Crypto

Cryptocurrencies and the Future

The Digital age has brought about the use of digital currency. This is also popularly known as Cryptocurrencies. This came about by the use of cryptography. This technique uses advanced encryption techniques that encode information.
 
While cryptocurrency is gaining popularity some may still be hesitant about this concept. Users take to consider many limitations in its use compared to traditional currency. Users are considering safety measures that come.

Cryptocurrency: The Future of Finance and Money

when using it. They consider issues like losing digital earnings when a computer gets corrupted. Or the possibility of digital earnings stolen by hackers. Although this may improve as technology advances many are still questioning its existence. But still, cryptocurrency is widely used in the net.
 
Many users are embracing its existence thus the government is scrutinizing its use. Stricter regulations are also imposed. This will strengthen the use of cryptocurrency.
Posted by Lyndsey Annabel

Are Bitcoin Certificates A Sensible Investment?

Many investors have raised eyebrows on Bitcoin certificates because these certificates were always too speculative, too uncertain, and “without intrinsic value”. But this initial assessment eventually changes for some investors who have tried investing in Bitcoin certificates.

What is a Bitcoin and how it works?

Are Bitcoins a sensible investment?

Cryptocurrencies like Bitcoin are definitely only suitable for very risk-conscious investors. There is a risk of a total loss, theft of your own wallet, loss of access data, becoming a victim of fraud (especially when new currencies (ICOs) are published), etc. Therefore, only “play money” should be used, if at all. This means invest only with money that does not bring you economic difficulties in the event of losses.

Why invest in Bitcoin?

Although Bitcoin and other cryptocurrencies have no intrinsic value, it can still bring crisis protection to some degree, at least as long as there are still people who believe in the currencies.

Similar to gold, it can be assumed that if a major crash is imminent, the prices of the cryptocurrencies are likely to rise sharply. Simply because trust in the central bank’s paper money system is waning.

Conversely, cryptocurrencies are more likely to get stuck in a stock market boom like the one in December 2019.

Assets that are likely to behave in the opposite direction to other assets are good as a hedge, which is why some investors use cryptocurrencies in addition to gold to diversify for the crash. It will then be seen whether there will be a new financial crisis.

Regardless of that, there is an assumption that the long-term rates of the two cryptocurrencies will rise – even without a crash. But this statement is more of a forecast without a real basis.

Are Bitcoin certificates a perfect investment vehicle?

The participation certificates or simply called Bitcoin certificates have advantages and disadvantages. Again, Bitcoin certificates are just as risky and speculative as a direct investment in Bitcoin.

Bitcoin certificates have an invaluable advantage. You can keep previous securities account and just buy these certificates and then you have a foot in the world of cryptocurrencies.

Disadvantages of Bitcoin certificates

  • Tax disadvantage: Certificates fall regularly under the flat tax of almost 26 percent when buying or selling. Just like ETF or stocks. After the allowance of 801 euros (single) is exceeded, this tax always applies to your winnings. It is different with a direct investment in Bitcoin and its sale: From a tax perspective, these are “private sales transactions”. There is an allowance of 600 euros per year. Any income above this amount must be taxed at the personal income tax rate. As a rule, this should be higher than the 26 percent flat tax. BUT: If you hold your Bitcoin for more than a year, the entire proceeds are tax free. Here, Bitcoin is treated like physical gold, an invaluable benefit of direct investment.
  • Issuer risk: Certificates are always subject to the risk that the issuing bank could go bankrupt. This can lead to significant losses up to the total loss of you. Especially when everyone is talking about a crash, a risk that should not be underestimated. So always choose a stable and healthy bank as an issuer.
  • Bitcoin crash, resulting in a total loss. Cancellation of the certificate by the issuer: In the securities prospectus of the certificate you will often find clauses stating that the bank may terminate the certificate in the event of unforeseen events with a period of notice. Now your Bitcoin certificates are currently in the red and the bank will cancel them in 3 months, for example. Although the certificates have no due date (open end certificates), a due date can still occur.
  • Bitcoin crashes and disappears from the market: no question – if the base value (Bitcoin) of a certificate dies, the certificate no longer has any value and you suffer a total loss. Admittedly, this also applies to direct investment.
  • Running costs: Only death is free. Of course, the issuer of a Bitcoin certificate also wants his part of the cake. For my open-end certificates, these are running costs of 1.5% per year that gnaw on my return. But you can usually get over it.

Advantages of Bitcoin certificates

  • Fast and liquid tradable: Because the transaction is carried out via the regular securities account, you can get in and out of the market in a matter of seconds. For direct investments in cryptocurrencies, this is usually a longer-term procedure until your own money is actually back in the account
  • Easy tax handling through flat tax through your broker
  • No risk of hacker attacks, theft of your wallet or dubious Bitcoin exchanges or their bankruptcies
  • Participation of almost 1: 1 of the underlying asset

Conclusion

It is not advisable to invest a large part of your assets in Bitcoin certificates mainly because they are speculative and high-risk investments. And if you have borrowed a capital to invest (https://www.southeasttitleloans.com/lending-options/), do not invest in participation certificates. To keep it simple, if Bitcoin dies, then your entire invested capital will also die and you don’t want that to happen. So if you want to diversify and include a Bitcoin certificate in your portfolio, keep it small and simple.

Posted by Lyndsey Annabel in Crypto

Bitcoin And Cryptocurrencies

Decentralized Proof of Ownership cryptocurrencies has become increasingly popular in recent years. Analysts calculate that over 300 types of cryptocurrencies are currently in use. Bitcoin and Litecoin are two of the most popular, while companies continue to grow a platform suitable for accepting these cryptocurrencies. An alternative payment platform offers numerous benefits to both buyers and sellers, such as lower collection costs for the seller and a global instant payment system for the consumer. The rapid growth in the value of Bitcoin and Litecoin has created a new market for seigniorage, digital asset trading, and a global payment system. Because of this, a new market for fraud and digital threats also exists today.

Digital currencies are based on the principle of decentralization; no one “owns” the protocol and everyone can participate in it. Likewise, no one owns the Internet. If an individual wants to create a website, all they need is a computer and a gateway to the Internet. The same concept applies to Bitcoin. Anyone can participate in the protocol and make it secure. The recent introduction of cryptocurrencies was designed to use public-key cryptographic techniques to ensure the security, traceability, and verification of each transaction. Businesses are quickly realizing that cryptocurrencies, particularly Bitcoin, have now become mainstream in many areas of the world. Due to the global nature of the internet, a payment through Bitcoin and other similar currencies is instant and free of costs. A truly remarkable advantage when you think of credit card fees, which can weigh on the merchant up to 5% of each transaction.

Posted by Lyndsey Annabel

Bitcoin Not Immune To Financial Market Crisis

The recent slump may come as a surprise to observers, but it is not only within the scope of what is known from Bitcoin, but is also in harmony with the financial markets. Yesterday even the “crisis currency” had given way to gold, if only by five percent.

What Happens to Bitcoin if Stock Markets Crash into a Bear Market?

However, anyone who has seen Bitcoin as a new “safe haven” in times of crisis in recent months should now be disappointed. In places, Bitcoin was even given the nickname “digital gold”.

Experts stay relaxed

For experts like Kai Kuljurgis, founder of the crypto investment platform Coindex, the recent drop in price is more an effect of the beginning professionalization of the market. A lot of institutional money has flowed into crypto values ​​in recent months. That drove the courses. However, new investors, in particular, would quickly withdraw.

Die-hard Bitcoin supporters do not see the recent price losses as a drama, but rather a good opportunity to buy cheaply.

Posted by Lyndsey Annabel in Crypto

The Cryptocurrencies of the Cannabis Industry

Due to federal legislations, majority of cannabis-related businesses and companies are still having the biggest challenge of utilizing the banks for their transactions. As a response to address this issue, the creation of digital currencies increases in support to this kind of market and the Stocktrade’s complete coverage of Canadian marijuana stocks. Cryptocurrency is generally a big help for the cannabis market or to those individuals who wants to purchase pot and carry out weed transactions.

Bitcoin is the main crypto that popularly dominates the virtual space and how does Bitcoin actually work is an exciting thing to learn. Yet, there are alternative cryptocurrencies that penetrate the weed industry offering specific pot transactions. The most common cannabis-based crypto are, but not limited to, CannabisCoin, HempCoin, PotCoin, CannaCoin, and DopeCoin to name a few.

Cannabis-based Cryptocurrencies

Here are some details on those crypto that popularly dominating the weed sector.

CannabisCoin

CannabisCoin or CANN operates to assist companies to have easy transactions of medical marijuana within the dispensaries. This marijuana-based crypto utilizes digital wallets as well in order to manage and store coins.

HempCoin

The goal of HempCoin (THC) is to provide funding for the farming industry of weeds and the use of medical or recreational marijuana in the dispensaries. The website of HempCoin is said to be useful in the facilitation of transactions among weed farmers and local dispensaries. Purchasing of weed farming tools and equipment can be done through the website of HempCoin.

PotCoin

PotCoin is considered as the oldest cryptocurrencies within the weed industry. Solution for banking problems for those who are seeking transaction in legal marijuana is the main design of this cannabis-based cryptocurrency. Without performing any bank transaction or clearing house, the trading of PotCoin is made to life. PotCoin trades into three market places in which people are allowed to validate transactions that are blocked based on the number of coins they have on hand. In addition, the speed of transaction for POT is about 40 seconds which is really impressive compared to Bitcoin.

“New features for this crypto include HD wallets, synch times reduction, and faster synchronization of network.

DopeCoin

The mission of DopeCoin or DOPE is primarily to offer marijuana aficionados with doing their business in a more secure and modern way. Based on their website, users of DOPE can transact free of charge pseudo-anonymously. However, this should be done for just under a minute.

CannaCoin

Operating under thee Peer2Peer technology which is a decentralized blockchain, CannaCoin or CNN became known as one of the cannabis crypto. It works to provide developments of future crypto applications in relation to the production, cryptocurrency processing, vape station creation, and other cannabis-related businesses.

Posted by Lyndsey Annabel in Crypto

Applying For A Cryptocurrency Loan?

Almost all people know what you are talking about when borrowing money. Then you go to the bank and you may receive a sum of money. For example, to start your own business, you can contact traditional or non-traditional financial institutions such as New Horizons (https://newhorizons.co.uk/quick-loans/). Yet nowadays there are also other things that you can borrow than the euro. Namely cryptocurrency. But how can you borrow such a cryptocurrency? Let’s take a look at Bitcoin Lending.

What is Bitcoin lending?

This is a way for bitcoin holders to earn extra money. You lend your cryptocurrency to someone else for a certain amount. It works just like fiat money or just borrow money. In this way, you can also borrow cryptocurrency. Cryptocurrency is sometimes used as collateral for loans, but that is not the case here. The whole idea is that someone will borrow cryptocurrency to make a profit with it.

Finally, after a certain period, he returns the cryptocurrency to the original owner, with an extra sum of money. The borrower can then sell the borrowed goods and buy a new one for a profit. This way both parties can earn a little extra. Will 2020 be the year in which cryptos will be adopted en masse?

Peer to peer borrowing

Bitcoin lending, also called bitcoin financing, is a form of peer to peer lending. But what exactly does that mean? Peer to peer borrowing is basically investing your money in a loan from a private person. It is a loan that does not involve a bank. An example of this p2p borrowing is: Someone is urgently looking for 2000 euros and you have that left. You then lend that directly to that person, who returns it with interest after a while.

The same works for cryptocurrency. Someone wants a specific cryptocurrency, you have that, you lend it to that person. After a while, it returns the amount of cryptocurrency with a sum of money. What he does well with your loan in the meantime doesn’t matter. You won’t lose anything with it.

Blockchain as an ideal loan aid

Blockchain is very useful when you want to apply for a loan. That does not only have to be borrowing money but can also be done when borrowing cryptocurrency. Many people don’t really know what blockchain is and what it actually means. That’s because it hasn’t been around that long. It was conceived at the same time with the arrival of the bitcoin system. But what is it anyway? Perhaps this article about Bitcoin for dummies helps you to understand things better.

A blockchain can easily be compared with a ledger. A lot of data, including financial facts, is stored together. The biggest difference between a ledger and a blockchain is that a ledger is linked to a specific thing. For example, the accounting of a company. A ledger is used for this.

Open and decentralized

However, a blockchain is open and decentralized, meaning that nobody owns the data. So it belongs to everyone. It is an open network in which everyone can participate if they want to. You can, therefore, compare this part with the internet. It belongs to nobody and anyone who wants can use it. The advantage of this is that the data is spread everywhere and therefore cannot easily be stolen or manipulated.

In short, a blockchain is a large list of data that everyone can see and has access to. Everyone can make an adjustment, which is immediately implemented for everyone. The advantage of a blockchain is that you can only add data at the bottom of the list. Old data cannot be deleted or modified. Because of this, many people rely on a blockchain.

This is the principle that is also used with bitcoins. Since cryptocurrency is not something tangible, you cannot just check whether someone actually has it. You can easily check that in a blockchain. You can only enter a transaction if the cryptocurrency has been sold to you before. This of course also gives a safe feeling when borrowing and lending cryptocurrency.

You agree that you purchase a quantity of cryptocurrency and that the initial owner will buy it back later. Suppose you would borrow a bitcoin from someone for € 200. Then you buy the bitcoin for, for example, € 2000, – and later the owner buys back what you borrowed from you for € 1800. You can see that money as collateral.

Conclusion borrowing cryptocurrency

Bitcoin lending is the purchase of cryptocurrency such as bitcoins with the agreement that the seller will buy back the bitcoin. In a sense, the money is the collateral for the loan. Bitcoin lending is made possible by blockchain, a long list with a lot of data that is accessible to everyone. Such a list of data is also used for other purposes, such as applying for a mortgage loan. Do you have Bitcoin in your portfolio and are you prepared to earn extra money with this? Think about securing your Bitcoins with Bitbond.

Posted by Lyndsey Annabel in Crypto