Crypto

Tips When Investing in Cryptocurrency

When investing in cryptocurrency, you can find many one-stop-shop over the Internet that will give you many advises. As an investor research only objective information about any cryptocurrency or crypto app that you might be interested in.  If you are considering to invest in any crypto coins, it would be helpful to understand these projects. The best cryptocurrencies out there are the ones that solve these giant problems in the startup world. You would also want to know how the price has been performing over the last month, 6 months, year, 2 years, so you can think about how you want to time your entity in the market. You’ll definitely want to follow the coin and check the news and reviews to get a sense of what the general market sentiment is like towards that coin and figure out is it being worked on, if yes, by who? Are they no-names in the industry, or do they have serious street credit? Is the project evolving?  Is it getting faster, cheaper, better and easier to use? These are very important things. If you see that prices are going up, but there doesn’t seem too much progress, then that’s probably a red flag. But if you see that the price is staying flat or declining, but there seems to be a massive progress being made on that project, then that could be a sign that’s it’s a good time to be involved. You would also want to look into the economics behind the coin in question that you’re doing research on. An example on this is check how many coins are out there in active circulation for that currency? Is the overall supply of coins capped and limited to a fixed number, or is there inflation built into it in a yearly basis? The answers to these questions vary greatly from coin to coin. So it’s very important that you understand the supply and demand economics behind it.

Only invest what you can only afford to lose. Note that every dollar that you invest in cryptocurrency could all go to zero overnight. At the end of the day, cryptocurrencies are programs or software. Software and programs are built using codes, which comes from humans. Humans aren’t perfect and these codes may contain bugs. It’s possible that a bug could get discovered that can lead to a “black swan” events that could wipe out your entire investment overnight. Aside from just bugs, there’s a risk of a 51% attack on the network, or the fear of quantum computing. There are user errors that you also have to consider. Cryptocurrency has only been around as an industry for about 12 years now, so we’re all kind of learning on the fly how to do it. It’s very much so an experiment, it’s early days, so make sure you’re treating it as such and that you only invest what you can afford to lose.

 

Posted by Lyndsey Annabel in Crypto

What You should Know When Investing in Cryptocurrency

Whether you are new to cryptocurrency and you’re excited and ready to buy, or if you’ve been reflecting this decision for a while and you’re finally ready to take that plunge remember to take note of these advises before investing into cryptocurrency. This will enable you to get off to a good start. This will make you sleep well at night and help you manage your crypto assets like a pro. When investing in cryptocurrency, you will definitely experience some mistakes along the way, especially in the early days. You will be able to learn from these mistakes. Avoid these mistakes by following these great tips:

  • Learn the basics of cryptocurrencies. Educating yourself about these digital assets is definitely the most important thing you can do to set yourself up for success. For generations, we’re used to storing our wealth in banks, and it’s someone else’s responsibility to safeguard and protect our money. But with cryptocurrency, this is flipped entirely around. You are in control of your own money. And if you happen to lose access to your wallet or if you send your coins to a dead-end or to the wrong person, there’s no Help Desk or Support center that you can call up to try to reverse the transaction, this does not exist with cryptocurrency. It’s important that you take security very seriously at the onset and understand how these systems work. For a lot of the cryptocurrency projects out there like Bitcoin and Ethereum, there’s actually no company, CEO’s or shares. Instead these are decentralized, peer to peer systems that operate much less like a company, and a lot more like the Internet, where no single person or entity owns or control it.

  • Trust nobody and do your own research. Just like the Internet was in the 90’s, Cryptocurrency today isn’t all sunshine and rainbows. There are a lot of pump and dump schemes out there. There are scammers that will try to swindle you for your money if you’re not careful. There are many that will promote these projects that they don’t really believe in. They are just trying to make you look like the greater fool. If someone is trying to tell you that they know the hottest coin you should invest in, you should really think about what are their real motives and why they be saying that. If it’s someone on the Internet saying this, chances are there might be something up there. Do your own research and not take anyone else’s word for it.
Posted by Lyndsey Annabel in Crypto

Ways to Invest in DeFi

Here are some ways on how a person can potentially profit from DeFi or decentralized finance trend. This is an area in which many people believe could actually grow significantly over the years. DeFi  is essentially the crypto currency spaces that attempt to recreate, rebuild and prove upon the traditional financial system and financial services.

DeFi is based on liquidity. Profits depends on the usage of this liquidity. This decentralized liquidity allows anyone to provide money in the system. Here are ways to potentially make money from this trend:

  1. Staking and Yield Farming. Staking is equivalent to a term deposit in DeFi, in which borrowed cryptocurrency and interest can only be accessed after a predetermined period. Yield farming is equivalent to “no commitment” staking. This has a slightly lower interest rate but has the advantage for one to withdraw the money deposited at any time. Some platforms of yield farming are:
  • Sushi
  • Harvest
  • Yearn
  • Uniswap
  • Curve
  • Aave
  1. Directly within DeFi itself. There are many ways and applications to do this. A good example is by the use of different protocols. You can lend your cryptocurrencies to other people at the same time generating interests or income from lending them out to people. You can do this in an open manner throughout DeFi itself. You can also make money as a liquidity provider. Liquidity providers can earn 0.3% fee on all trades proportional to their share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity. But be mindful of risks that come with this . When not careful you can loose all your money.
Posted by Lyndsey Annabel in Crypto

Is Buying or Selling a House with Bitcoin Ideal?

Bitcoin Money

 

Whether you are tech-savvy or not, then it is highly likely you have already come through the expression cryptocurrency. In case you haven’t, it is practically guaranteed that you have heard about a particular kind of cryptocurrency: Bitcoin. . .even when you’ve got zero clues about what it really is!

Bitcoin was hitting the headlines for late nights as a result of its striking price increase. Just one Bitcoin is presently trading in more than 5,000*, which can be quite impressive once you think about the fact you might have picked up one for under a tenner back at the beginning of 2013! As a real estate agent, the apparent question we have been asking is will somebody purchase a home using Bitcoin? Well, let us have a look at it.

Bitcoin: A fundamental summary

We are not likely to enter the profound technical facets of Bitcoin, like blockchains, however, it is important to put out a couple of pointers until we delve deeper into whether property trades with Bitcoin are becoming commonplace in the not too distant future.

Simply speaking, Bitcoin is a peer-reviewed system specifically created for internet payments – digital money, if you may. As a peer system, there’s absolutely no demand for a centralized authority (such as the Bank of England or even Federal Reserve) to manage trades, and that’s exactly what makes cryptocurrencies such as Bitcoin so fascinating (and threatening to authorities).

Removing the middleman effectively gets rid of interest charges and sets the holder in management. This is particularly interesting once you think about the effect such monies may happen on third-world nations where access to conventional bank account is earmarked for some, as opposed to the many.

Together with Bitcoin, you are able to invest and save money with no conventional account or charge card. All you actually need is a pc or cell phone to create trades, and you will not be charged hefty fees to move money across borders just like you would if you’d like.

So, what about purchasing a house with Bitcoin?

Property sales between Bitcoin are already occurring however, it may be claimed, for the wrong motives. Bitcoin is great news at current and journalists are looking to get a narrative involving this exciting and new money. Bearing that in mind, some vendors, with the help of a house sale company, are using the money as a means of promoting the property they’re selling (then promoting it through conventional means) or even as a means of promoting themselves.

There have been several star houses and improvements hitting the marketplace using a ‘Bitcoin approved’ label. This tendency is very likely to last so long as doing this makes the information but what about the rest of those? Is there actually a marketplace for buying and selling land using Bitcoin?

 

ALSO READ: What Makes Cryptocurrency Go Up in Value?

 

Purchasing a Home with Bitcoin: Our view

At the moment, we do not view Bitcoin as a feasible solution for buying and selling real estate. That is not to say that it won’t be, however at the present time there are many issues holding it back again.

Firstly, there is how it is not mainstream enough to draw the number of buyers demanded in the current market if you’re to solely give you the purchase in Bitcoin. You can surely add cryptocurrencies within an alternate payment system, but would lots of individuals take you up on the deal in case you did? Likely not.

Then there is the trust element. As burgeoning money, Bitcoin remains very likely to trigger the uninitiated level of concern. . .especially when creating one of the largest transactions of your lifetime. Though the crypto-geeks will guarantee that Bitcoin is quite secure (and we concur that it is), it is likely still too fresh for nearly all vendors to embrace at any certainty. What happens when something goes wrong? In the end, you don’t have any regulatory board or central bank to conduct to whether it will.

Ultimately, there is the volatility of those cryptocurrency markets. Bitcoin is flying at the moment, making the type of hockey stick graph traders typically dream of if they’re tucked up in their beds during the nighttime, but does it survive? There is every possibility it will (a few are calling costs of $500,000 from 2030), however, there is every chance that it will not, also. What occurs when a rival cryptocurrency enhances on the bases laid by Bitcoin, for instance? It is all somewhat sketchy today.

A property marketplace where Bitcoin can take hold shortly

While purchasing and selling land using Bitcoin could possibly be deemed somewhat too insecure for now, as a result of the large sums of ‘money’ changing hands, there’s a marketplace where cryptocurrencies can become commonplace rather shortly: lettings. The leasing market is growing quickly, particularly using under 35s, therefore supplying an alternate payment option could do the job here.

Bitcoin is a whole good deal less frightening to millennials than it would be to the old generations, and leasing payments are clearly lower than buys. Thus, paying your rent using a cryptocurrency such as Bitcoin could grow to be a ubiquitous fact in the very close to future, which subsequently can cause more revenue being made together, also.

Like all these things in existence, only time will say Bitcoin along with other cryptocurrencies can affect the home market, but we are going to be watching with fantastic interest, that is for certain.

 

Posted by Lexi Farley in Crypto

Crypto Investing And Crypto Trading – Tips To Do It Safely And Successfully

According to studies, about 36.5 million of the population in the United States made investments in cryptocurrency. Although the goal of people who have taken on crypto trading is to earn money, many Americans have lost their investments primarily because they have decided to quit along the way or have become a victim of crypto scams. In 2018 alone, American crypto traders lost approximately $1.7 billion. But this isn’t and shouldn’t always be the case as there are a few things that you could do to safely, proficiently and successfully trade cryptocurrencies.

Tips to Safely Invest and Trade Cryptocurrency

Regardless of the investment that you make, there will be risks attached to it. This includes investing in cryptocurrencies which experts say that it is one of the investment options that carries so much risk. Nonetheless, cryptocurrencies are also one of the hottest commodities to invest and trade in. A lot of individuals believe that digital currencies are the future of finance. However, if you intend to venture into crypto trading, there are a number of things you need to consider for you to make better informed choices as well as increase your success rate.

Choose a Reliable Crypto Broker

One of the most important things to consider when venturing into crypto trading or crypto investing and increasing your success in the market is to choose a reputable crypto broker. Check out https://www.asktraders.com/broker-reviews/roinvesting/. There are a lot of reliable crypto brokers to choose from and all of them have different strengths and weaknesses. It is then imperative that you compare and contrast your choices so that it would address as well as match your crypto trading or crypto investing needs and styles.

Do your Research on Exchange

Prior to investing even a dollar, you first need to research on cryptocurrency exchanges. Crypto trading/investing platforms would provide a way for to buy and sell cryptocurrencies, however there are over 500 crypto exchanges to select from. Hence, doing your research and learning from those who have more experience in crypto trading or crypto investing is essential and important to achieve your goal.

Prepare Yourself for Volatility

Since you’re interested in trading or investing in cryptocurrency, you should be aware of how volatile the market can be where you would see dramatic rises and falls in prices. So, you have to make certain you are prepared for this. If you think your investment portfolio or your mental health cannot handle such, crypto trading/investing may not be a smart choice for you.

Determine How to Store Your Cryptocurrency

When buying cryptocurrency, you should have a place to store it. Either you store it in a digital wallet or on an exchange. Again, there are various types of digital wallets where each has its own sets of advantages, technical requirements, as well as level of security. In terms of exchanges, you need to research for a good storage before you begin investing.

Posted by Alise Bella in Crypto

How Popular is Cryptocurrency?

A study has been done about cryptocurrencies in the United Kingdom. The aim of the study is to find out how popular is cryptocurrencies. Here are some results of the study:

  • Over 70% of those surveyed haven’t heard of cryptocurrencies or didn’t know how to define one. This reflects that these digital currencies are still very young in still a tiny niche.
  • Buying cryptocurrencies is not very popular. It was estimated that only 3% of the overall sample have done so in the past.
  • Only 7% of those who haven’t bought any cryptocurrency so far would consider it in the future.
  • Owners of cryptocurrencies tend to use their own money to buy it. None of the respondents reported borrowing money from financial firms or to friends and family. This means that people are not using much leverage.
  • Only 8% of all cryptocurrency owners completed deep research before purchasing, with 16% doing no prior research.
  • Over 1 in 3 have never checked the value of their cryptocurrency since purchasing.
  • Around 40% of cryptocurrency owners expect to hold it for 3 or more years, while some report selling some or all of it already.
Posted by Lyndsey Annabel in Crypto

What Makes Cryptocurrency Go Up in Value?

There are millions of cryptocurrencies circulating these days. The crypto market is booming. Here are some reasons why Cryptocurrencies are valuable.

  1. Supply and demand. We are still in a transition but this can be a thing of the future. Many people don’t want to be out of the game so many are investing early in crypto currencies.
  2. Cryptocurrency is a store of value that cannot be censored. The block chain network allows us to upload digital files and information which can be stored in this network and verify cryptographically without the requirement of trust. This system represents a ledger technology that can be accessible to anyone and anywhere simultaneously.
  3. It is scarce. It is scarce because of the protocol to only to limit the unit of currency.
  4. It is useful because it allows people to do things with money we have never previously been able to do. It is a programmable money that operates in a digital economy that has no physical borders.

What does this digital currency allow us to do?

 

 

 

 

 

  • Send money anywhere, anytime to anyone (Essentially, it has no limit on the movement of money.
  • Send us much or as little as we like for negligible fees.
  • Send money potentially anonymously and with almost no delay.
  • The block chain allows us t verify all information- proof of work, ownership, existence etc.
Posted by Lyndsey Annabel in Crypto

Can We Buy an Item With The Use of Cryptocurrency?

People critique cryptocurrencies as something that they are claiming to be but they are not. Up to this time, one cannot use cryptocurrency to purchase items like traditional currency does. It would be amazing if a person can use these digital currencies to purchase something in the grocery or in malls. This isn’t yet possible because it’s still in the early stages and there are many skepticisms on the use of this. As far as this article goes, cryptocurrencies cannot be used to buy or spend. There are merely digital tokens. However the founders of these digital tokens are looking to change this on the years to come. They are hoping for wider acceptance and adaptation of these digital currencies.

Who Accepts Bitcoin as Payment? Where Can I Spend Crypto?

Posted by Lyndsey Annabel

How did cryptocurrency come about?

The term cryptography describes a science that encrypts information or data and protects it accordingly. The first approach to a digital currency based on cryptography goes back to the end of the last millennium, namely to the year 1998. However, another ten years passed before it was actually implemented, until a peer-to in November 2008 under the identity of Satoshi Nakamato -Peer Electronic Cash System has been published – a payment system that links the payee directly with the payer without the intermediary of a bank.

Even if one assumes today that behind this pseudonym there is a whole group of developers who fell into disagreements in the course of the process, it is undisputed what they created. They published the so-called Bitcoin protocol in a whitepaper. This protocol is considered to be the founding document of virtual currencies and is a kind of answer to the classic banking system.

Thus, if you want to invest in cryptocurrency then reading crypto mixer review is helpful.

 

Bitcoin as the first digital currency

In 2009, the starting signal was given for the new era of digital payments. Bitcoin was the very first digital currency and is still by far the best-known crypto coin worldwide. So when you talk about the history of cryptocurrencies, you are also talking about the history of bitcoin.

The price increase of Bitcoin has since attracted countless imitators. There are now said to be more than 1,000 cryptocurrencies – the best known besides Bitcoin are Ethereum, Ripple and Cardano.

But what is a Bitcoin anyway and how does this payment system work?

Bitcoins are often compared to gold and the bitcoins are also “mined”, but bitcoins are not real money. They only exist virtually and are managed in a digital wallet, a so-called Bitcoin wallet, in which the private cryptographic keys for your own Bitcoins are stored. These can be sent to a different address, i.e. a different wallet, at any time across the entire Bitcoin network without data being stored – the process is completely anonymous and without middlemen such as banks. The decentralized network that manages the credits and payments is called the blockchain. The blockchain is a distributed data structure – to put it simply, a kind of digital cash book with which every transaction can be precisely tracked.

Posted by Lyndsey Annabel in Crypto

What We need To Know About Cryptocurrency

The word Cryptocurrency has been a popular word in the internet for the past years. Cryptocurrency is considered as an intangible digital asset that is protected by a complex encryption known as cryptography. This protects and authenticates every transaction  connected with Cryptocurrency. This will also ensure, to manage the creation of new units of this digital currency. Cryptocurrencies are intended to function as a decentralized medium of exchange. They are a non-partisan financial institution and not connected with a central authority. The most popular cryptocurrency is Bitcoin. There are many other kinds of these digital currencies like Ripple, LiteCoin, and others. However popular many investors have been still skeptical of its use and reliability. Because of its freshness in the market there are many uncharted territory to explore about Cryptocurrencies. Investors are wise enough to learn more about them before investing on them.

 

Posted by Lyndsey Annabel in Crypto

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

The Goal Of Getting An Insurance For Your Home And Your Digital Assets

Homeowners get a homeowners insurance policy for the same purpose one takes out a health insurance or an automobile insurance. In the event a home is damaged because of a disaster, possessions lost due to theft, or someone gets injured within your property, a homeowners insurance would greatly help the owner handle and deal with the financial consequences. A homeowners insurance usually combines two different kinds of protection, liability insurance as well as hazard insurance. Visit homeownersinsurancecoverage.com to learn more of these coverage.

The Goal Of Getting An Insurance

The most basic aim of purchasing an insurance, like a homeowners insurance, is to provide you financial protection in order for you to be financially whole after a loss. You will agree to pay an insurance provider a certain fee, which is usually paid on a monthly basis, for a period of time until you have completed the cost of the insurance policy you have chosen. In return, the insurer guarantees to shoulder the large financial burden of an uncertain or unforeseen loss in the future. Hence, with a homeowners insurance, you are protected from the financial obligations that comes with the loss, making a homeowners insurance very much important. Go to homeownersinsurancecoverage.com to check on possible coverages to ensure you are well protected.

There are various types of insurance in the market wherein you could insure almost anything such as cars, business, health, and life. One of the assets that some people have is cryptocurrency. Since the cryptocurrency markets are starting to mature and the use of digital currencies becoming prevalent, they are starting to appeal and draw in more players from different industries, including the insurance industry. This means that your crypto assets could now be insured.

According to a report by Bloomberg, cryptocurrency insurance is primed and ready to be a “big opportunity”. A representative of Allianz, one of the biggest insurance providers in the world, told Bloomberg that the insurance company was exploring various options for insurance product as well as coverage in the cryptocurrency markets since cryptocurrencies were starting to become more pertinent, significant, and widespread on the economy of the world.

Why Insurance is Needed in the Cryptocurrency Space

The cryptocurrency business, at present, which predominantly consists of exchanges and startups, isn’t large enough to provide the insurance industry ample returns or revenues. Based on information which is available to the public, even Coinbase, the largest cryptocurrency exchange in North America, holds just 2% of its coins which is insured by Lloyd’s of London. These digital coins are kept in hot storage, which are connected to the Internet, whereas the remaining are disconnected and only little is known regarding the status of their insurance.

If you take into consideration the instability and variability of the cryptocurrency space, insurance for digital assets becomes imperative. The valuation of cryptocurrencies which could skyrocket at any time has caused immense theft of digital wallets as well as exchanges. In January 2019, for instance, $500 million worth of cryptocurrency was stolen from Coincheck. The increasing attacks and hacks made the cryptocurrency space vulnerable which the mainstream or conventional financial space either rejects to take seriously or ignore.

Posted by Alise Bella in Crypto

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

MA of Singapore Grants Temporary Payment Services Licenses to Crypto Firms

In line with the recent passing of the Payment Services Act, the MAS announced that temporary licenses have been granted to 7 cryptocurrency companies.

The Monetary Authority of Singapore (MAS) named Binance, Bitstamp, Coinbase, Gemini, Upbit, Luno and Wirex as the only cryptocurrency operators permitted to act as payment service providers up to six months. Within the six-month period, the related license applications of the said crypto firms will be approved or rejected by the MAS.

The Monetary Authority granted temporary license-exemption to the aforementioned companies, because they complied with the prerequisite of giving notification of their cryptocurrency operations in Singapore, even before the Payment Services Act passed legislation in January 2020. The MAS, which acts as the central bank of Singapore, made it clear that the unlicensed status will cease once the institution approves or rejects the related applications for payment-services licensure in the country.

Overview of the Payment Services Act of Singapore

The Payment Services Act is described as one that sets the framework for the dynamic and flexible regulation of Singapore’s payment system and providers of payment services. The purpose of which, is to establish regulatory certainty aimed at safeguarding the interest of consumers, whilst encouraging growth and innovation of the country’s payment services and FinTech systems.

”Specific Payment Services”

The regulatory framework of the PS Act applies to licensed payment Institutions that provide “specific payment services” such as account issuance, e-money issuances, merchant acquisitions, domestic money transfers, inward cross-border money transfers, and digital payment tokens. Under the Act, the payment services of cryptocurrency companies fall under the digital payment token classification.

Distinction of Licenses to Conduct Payment Services as a Business, from License to Conduct Money-Changing Services as a Business

Although some payment services may include foreign currency conversion, a licensed payment service provider must be a licensed money-changer when including stand-alone money-changing services as part of its business activities. In the same way, a licensed money changer can conduct only money-changing services, unless the operator obtains a duly approved license to provide payment services.

Distinction of Payment Services from Banking Services

The PS Act also contains prohibitions that distinguish payment services from banking services, by stating that:

Licensed payment service providers are prohibited from storing or accepting e-money as deposits on behalf of Singapore residents and of facilitating e-money cash withdrawals in Singapore dollars. This suggests that all e-money transactions will cover only direct payment transactions.

Moreover, payment service providers conducting e-money issuance as payments are prohibited from lending its customers’ money, or using customers’ money to finance any of the business activities being performed in connection with payment-service operations.

The above distinctions clearly state beforehand that for inquiries on whether the licensed money lender SG City Loan recommends, can loan out cryptocurrency money, the answer is no.

Posted by Lucia Kerri in Crypto

Why Bitcoin Miners Ceased Operations Amidst Crisis

The Covid-19 crisis and the resulting volatility of the cryptocurrency market prompted many digital asset farms and independent miners to stop operations.

Contrary to expectations that Bitcoin, being the leading digital asset, will surge once stock market investors shift to cryptocurrency investment during the crisis, the opposite happened. Along with the stock market rush that saw many investors unloading their shares, the bitcoin market reacted similarly. The cryptocurrency market also crashed, resulting to daily losses of about 50% that eventually drove the Bitcoin price below the $4,000 threshold, down to as low as $3,600.

Although the crypto-community saw the prices of cryptocurrencies rising, after the government legislated CARES Act was passed by Senate. The increases though were not enough to warrant that the price of bitcoin will not go down below threshold again.

That being the trend, many bitcoin miners and mining farms went ahead with decisions to halt operations, wary that the worsening health crisis will yet again spur sell offs that only spell losses to digital currency miners.

Why Volatility in Prices Affects Crypto Mining Operations

First off, it should be understood that the profitability of crypto mining operations is not the same as what investors could gain when trading their digital currencies.

Cryptomining after all is cost intensive, particularly with bitcoin; being the most transacted of all digital assets. Where some bitcoin investors may realize gains by leveraging their cryptocurrencies during price volatility, the same cannot be held true for coin miners.

If at the end of the day the price of a bitcoin is much lower than the costs incurred in analyzing and solving encryptions bitcoin transactions for the day, bitcoin miners incur losses. Mainly because the bitcoin compensations they will receive will not be enough to cover the corresponding costs of mining.

Underscoring the Significance of Digital Assets in Times of Economic Crisis

One trait that can distinguish digital assets from physical assets is that the uncertainty of cryotocurrency prices creates an advantage in times of real-cash insolvency. There have been bankruptcy proceedings in which the bankruptcy court was unable to pin down digital money as potential payment in satisfying the legal demands of creditors.

The extreme volatility in the price of bitcoins as demonstrated by the recent bitcoin trading activities, makes digital currency an unlikely asset to demand as settlement for a credit obligation.

Let us say a bankruptcy court includes bitcoins without objection by creditors, because at the time of awarding, the digital currency had a value of $6,600.

However, if in the next few days the price of bitcoin drops to $2,300, the creditor can trade or exchange the digital money for real cash at the lowered price, or wait until the price rises. The creditors can no longer demand for more bitcoins, since they took a risk when they agreed to accept digital currency as settlement of the bankrupt person’s obligations.

When looking for a bankruptcy lawyer san diego businesses recommend those who will be able to make the court understand why cryptocurrencies will not work as a reliable, equitable settlement of credit obligations.

Posted by Lucia Kerri in Crypto, Cryptocurrency Mining

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