cryptocurrency

The Advantages of CFD Trading in the Cryptocurrency Market

cfd trading

Cryptocurrency trading has rapidly evolved into a dynamic and unpredictable landscape, attracting investors seeking lucrative opportunities. Amidst the volatility, Contracts for Difference (CFDs) have emerged as a powerful tool, offering distinct advantages that can amplify gains and navigate the challenges of the crypto market. When considering trading on CFDs, have a look at the Broker Breakdown project here. Find the best brokerage that meets your needs to maximize your trading potential.

What are CFDs and CFD Trading?

Contracts for Difference (CFDs) are financial derivatives that allow traders to speculate on the price movements of various assets, including cryptocurrencies, without owning the underlying assets. In CFD trading, investors enter into a contract with a broker to exchange the difference in the value of an asset from the time the contract is opened to when it is closed.

This unique financial instrument enables traders to capitalize on both rising and falling markets, providing a versatile approach to navigating the dynamic landscape of the cryptocurrency market. The appeal of CFDs lies in their flexibility, allowing traders to employ diverse strategies and benefit from the inherent volatility of the crypto space.

CFD Trading with a Trusted Broker

Choosing the right broker is the gateway to unlocking the full potential of CFD trading in the cryptocurrency market. A reliable broker acts as the bridge between you and the vast crypto market, providing a platform to execute trades seamlessly. When venturing into CFDs, selecting a broker with a solid reputation, transparent fee structures, and user-friendly interfaces is paramount.

Maximizing Gains Through Flexibility

One of the key advantages of CFD trading in the cryptocurrency market lies in its inherent flexibility. Unlike traditional asset trading, CFDs allow you to speculate on the price movements of cryptocurrencies without owning the underlying assets. This flexibility opens doors to various trading strategies, enabling you to go long or short depending on market conditions.

Going Long: Riding the Bull Market

When you anticipate a cryptocurrency’s value will rise, going long with CFDs allows you to profit from the upward movement. This means you can potentially earn significant returns even when the market is bullish, all without owning the actual cryptocurrency.

Going Short: Profiting from Market Declines

Conversely, CFDs empower you to profit from falling cryptocurrency prices by going short. This unique feature enables traders to capitalize on market downturns, making it possible to generate income regardless of whether the market is bullish or bearish.

Leverage: Magnifying Opportunities and Risks

Leverage is a double-edged sword in CFD trading. On one hand, it provides the ability to control a larger position size with a relatively small amount of capital, potentially multiplying profits. However, it’s crucial to recognize that leverage also intensifies risks, as losses can surpass the initial investment. It is imperative for traders to exercise caution and employ risk management strategies when utilizing leverage in the crypto market.

Unique Trading Opportunities in the Crypto Market

CFD trading in the cryptocurrency market unveils unique opportunities that may not be available in traditional financial markets. Cryptocurrencies operate 24/7, allowing traders to react swiftly to market developments. Moreover, the abundance of cryptocurrencies provides a diverse array of assets to trade, each with its own set of opportunities and risks.

Understanding the Mechanics of CFDs

To harness the advantages of CFD trading in the cryptocurrency market, it’s essential to grasp the mechanics of CFDs. A Contract for Difference is essentially an agreement between a trader and a broker to exchange the difference in the value of an asset from the time the contract is opened to when it is closed.

No Ownership, Just Speculation

Unlike traditional investments, CFDs do not grant ownership of the underlying asset. Instead, traders speculate on the price movements, allowing for greater flexibility in trading strategies.

Margin Trading: The Power of Leverage

CFD trading often involves margin trading, where traders only need to deposit a fraction of the total trade value. This leverage magnifies both potential gains and losses, emphasizing the importance of careful risk management.

Optimizing Your Cryptocurrency Trading Portfolio

Achieving success in CFD trading requires a thoughtful and strategic approach to portfolio management. Diversification, risk assessment, and staying informed about market trends are essential components of optimizing a cryptocurrency trading portfolio.

Diversification: Balancing Risk and Reward

Diversifying your CFD portfolio across different cryptocurrencies can help mitigate risks. While some assets may experience volatility, others may remain more stable, providing a balance that cushions against potential losses.

Risk Management: Safeguarding Your Capital

Effective risk management is the bedrock of successful CFD trading. Setting stop-loss orders, defining risk tolerance, and continuously reassessing your portfolio are crucial steps to safeguarding your capital in the unpredictable crypto market.

READ ALSO: The Importance of Learning About Cryptocurrency

In Conclusion: Navigating the Crypto Market with CFDs

In the ever-evolving world of cryptocurrency trading, leveraging the advantages of CFDs can be a game-changer. From flexibility and leverage to unique trading opportunities, CFDs provide a versatile toolkit for navigating the highs and lows of the crypto market. Remember, choosing the right broker is your first step, and strategic portfolio optimization is the key to maximizing gains while minimizing risks.

Posted by Lyndsey Annabel in Crypto

Trading Cryptocurrencies in Indonesia: Exploring Trends, Preferences, and Reasons Behind Them

Indonesia’s trading landscape has traditionally been dominated by conventional markets such as stocks, commodities, and forex. However, in recent years, there has been a noticeable shift towards cryptocurrency trading, marking a significant departure from the established norms. This gradual transition is facilitated by the emergence of professional trading brokers like Quotex (https://quotexloginbroker.id) who offer expertise, guidance, and access to digital asset markets, empowering Indonesians to explore this new frontier of finance with confidence and security.

Understanding the Indonesian Crypto Scene

Indonesia has emerged as a significant player in the global cryptocurrency market, with a burgeoning community of traders and investors navigating the regulatory landscape and exploring diverse digital assets.

  • Booming Industry: The cryptocurrency industry in Indonesia has experienced exponential growth in recent years, fueled by increasing adoption, technological innovation, and changing attitudes towards digital finance.
  • Regulatory Landscape: Despite regulatory challenges and uncertainty, the Indonesian government has shown a proactive approach to understanding and regulating cryptocurrencies, signaling a potential shift towards greater acceptance and integration.
  • Diverse Market: Indonesian traders have access to a diverse array of cryptocurrencies, ranging from established players like Bitcoin and Ethereum to newer, more niche altcoins, catering to a wide range of investment preferences and strategies.

Trends in Cryptocurrency Trading

The cryptocurrency trading landscape in Indonesia is characterized by several notable trends that reflect the evolving nature of the market and the preferences of local traders.

  • Rising Popularity: Cryptocurrency trading has become increasingly mainstream in Indonesia, driven by factors such as media coverage, social influence, and the allure of potential profits in a rapidly evolving market.
  • Youthful Demographic: The majority of cryptocurrency traders in Indonesia are young adults, drawn to the technology’s disruptive potential, financial opportunities, and digital-native lifestyle.
  • Mobile Trading: The widespread adoption of smartphones and mobile apps has facilitated the growth of mobile trading platforms, empowering Indonesian traders to participate in the cryptocurrency market on the go, with convenience and accessibility as key drivers.

Preferences in Trading Platforms

When it comes to choosing a trading platform, Indonesian traders have distinct preferences shaped by factors such as usability, security, and local support.

  • Local Exchanges: Indonesian traders often prefer local cryptocurrency exchanges due to their familiarity with the platform, ease of use, and localized customer support, fostering a sense of trust and reliability.
  • User-Friendly Interfaces: Intuitive and user-friendly interfaces are highly valued by Indonesian traders, who prioritize platforms that offer a seamless trading experience and robust features, catering to both novice and experienced users.
  • Security Features: With cybersecurity threats on the rise, Indonesian traders prioritize platforms that prioritize security measures such as two-factor authentication, cold storage, and regulatory compliance, safeguarding their assets and personal information.

Reasons Behind Trading Cryptocurrencies

The decision to trade cryptocurrencies is influenced by a multitude of factors, ranging from financial motivations to ideological beliefs and aspirations for a better future.

  • Potential for High Returns: Many Indonesians are attracted to cryptocurrency trading by the potential for high returns, driven by the market’s volatility, speculative nature, and the allure of discovering the next big investment opportunity.
  • Diversification of Investments: Cryptocurrencies offer Indonesians a means to diversify their investment portfolios beyond traditional assets like stocks and real estate, providing exposure to a new asset class with unique risk-return profiles and growth prospects.
  • Financial Inclusion: Cryptocurrency presents an opportunity for financial inclusion in Indonesia, empowering individuals with limited access to traditional banking services to participate in global financial markets, transact peer-to-peer, and build wealth independently.

The Role of Trading Brokers in Indonesia

Trading brokers play a vital role in facilitating cryptocurrency transactions and providing essential services to Indonesian traders, ensuring a seamless and secure trading experience.

  • Key Players: Trading brokers serve as intermediaries between buyers and sellers in the cryptocurrency market, offering a platform for traders to execute trades, manage their portfolios, and access liquidity, with reliability and transparency as core principles.
  • Educational Resources: Many trading brokers offer educational resources, market analysis, and trading tools to empower Indonesian traders with the knowledge and skills needed to navigate the complexities of the cryptocurrency market, make informed decisions, and mitigate risks effectively.
  • Compliance and Regulation: Trading brokers operating in Indonesia are subject to regulatory oversight and compliance requirements, aimed at safeguarding investor interests, preventing financial crimes, and maintaining market integrity, fostering trust and accountability within the industry.

READ ALSO: The Advantages of CFD Trading in the Cryptocurrency Market

Conclusion

As Indonesia continues to embrace cryptocurrency trading, understanding the prevailing trends, preferences, and motivations of local traders is paramount for stakeholders looking to navigate the market successfully and capitalize on emerging opportunities.

Posted by Lyndsey Annabel in Crypto

The Basics of Cryptocurrencies

The finance industry has been transformed by cryptocurrencies such as Bitcoin and Ethereum. As society embraces digital currencies, pre-settlement funding companies are gaining attention as a crucial lifeline for plaintiffs awaiting settlement during legal proceedings. To learn more about the top lawsuit loan companies and best pre-settlement funding options available, you can visit https://www.jpost.com/special-content/best-pre-settlement-funding-companies-top-lawsuit-loan-companies-776730. This resource helps you make informed financial decisions by guiding you through leading industry players.

How Cryptocurrencies Work?

Blockchain is a decentralized technology used by cryptocurrencies to keep a transparent and secure ledger of transactions across a network of computers. Cryptocurrencies are not regulated by a central authority, which means users have complete control over their finances. The decentralization of cryptocurrencies guarantees transparency and security while eliminating the necessity for intermediaries.

Popular Cryptocurrencies in the Market

The digital currency market offers various cryptocurrencies with distinct characteristics and uses. The first-ever cryptocurrency is still highly valued for its limited supply and widespread adoption. Ethereum brought smart contracts to the scene, allowing the development of decentralized apps. Ripple concentrates on facilitating fast cross-border transactions, while Litecoin prioritizes quicker transaction confirmation times.

Storing and Securing Your Cryptocurrency

Keeping your digital assets safe is crucial when it comes to cryptocurrencies. Actually, there are two types of wallets that you can find nowadays and these are:

  1. Hardware-based – hardware wallets offer protection by keeping your private keys offline.
  2. software-based – simply put, this provide secure storage for your digital currencies

To ensure the safety of your investments, it’s essential to adhere to best practices for password management and activate two-factor authentication.

Risks and Challenges

Cryptocurrencies present exciting opportunities for investors, but it is essential to know the associated risks. One common characteristic is price volatility, which can make investing in these digital assets risky. Additionally, the decentralized nature of cryptocurrencies makes them a prime target for cybercriminals. 

Robust security measures are crucial to minimize crypto theft/fraud. Keep this in mind to make informed investment decisions.

The world of cryptocurrencies is constantly evolving and presents opportunities for those willing to approach it with a discerning mindset. To embark on a journey into the captivating realm of digital finance, it is essential to have a solid grasp of the fundamentals, select appropriate cryptocurrencies, secure your investments, and stay aware of the associated risks. By doing so, you can equip yourself with the knowledge needed to navigate this dynamic landscape and potentially reap the benefits that come with it.

Posted by Bella Isolde in Block Chain Crypto, Crypto

Unveiling the Cryptocurrency Veil: Decoding Bitcoin Tumblers for Unparalleled Transaction Privacy and Security

Is bitcoins traceable

Ever wondered if bitcoins traceable? Bitcoin tumblers have emerged as a crucial tool for those seeking heightened transaction privacy and security. As advocates for the seamless integration of cutting-edge technologies with financial privacy, we look into the intricacies of Bitcoin tumblers, dissecting their effectiveness and impact on ensuring confidential and secure transactions.

Understanding Bitcoin Tumblers

What are Bitcoin Tumblers?

Bitcoin tumblers, often referred to as mixers or blenders, are innovative services designed to enhance the privacy of cryptocurrency transactions. In essence, they obfuscate the trail of transactions, making it challenging for prying eyes to trace the origin and destination of funds.

How Bitcoin Tumblers Work

These tools function by aggregating multiple transactions into a single pool, mixing them together, and then redistributing the funds to their intended recipients. This intricate process introduces a layer of complexity that baffles any attempts at tracing the flow of funds. Anonymity becomes the cornerstone of Bitcoin tumblers, elevating the security and privacy of transactions to unprecedented levels.

The Necessity of Transaction Privacy

Escaping the Watchful Eye

In a world where data is often regarded as the new currency, the need for financial privacy has never been more critical. Bitcoin, despite its decentralized nature, is not entirely immune to surveillance. Governments, institutions, and malicious actors constantly seek to unveil the identities behind transactions. Bitcoin tumblers serve as a shield against such intrusive attempts, allowing users to reclaim the essence of true financial autonomy.

Protecting Against Transaction Analysis

Transaction analysis, a method employed by blockchain analysts to scrutinize the flow of funds, poses a significant threat to individual privacy. Bitcoin tumblers disrupt this analysis by introducing a layer of indistinguishability, making it virtually impossible to link transactions to specific individuals or entities.

Evaluating the Effectiveness

Robustness of Bitcoin Tumblers

The effectiveness of Bitcoin tumblers lies in their ability to create a complex web of transactions, confounding even the most sophisticated tracking tools. This robustness ensures that the privacy and security promised by these tumblers are not just theoretical but practical solutions to the constant threat of surveillance.

Real-world Use Cases

Numerous real-world use cases highlight the practical advantages of Bitcoin tumblers. From protecting the financial details of high-profile individuals to shielding businesses from competitors’ prying eyes, the versatility of these tools cannot be overstated.

Overcoming Criticisms and Challenges

Addressing Legitimacy Concerns

Critics often raise concerns about the potential misuse of Bitcoin tumblers for illicit activities. However, it is essential to acknowledge that, like any tool, the intent behind its usage is determined by the user. Bitcoin tumblers, when utilized responsibly, provide a legitimate means for individuals and businesses to safeguard their financial privacy.

Regulatory Landscape

Navigating the regulatory landscape is a challenge for any emerging technology. Bitcoin tumblers are no exception. However, ongoing dialogue and collaboration between regulators and the cryptocurrency community can pave the way for a balanced approach that ensures privacy without compromising the integrity of financial systems.

Learn more about bitcoin and cryptocurrency with this related article: The Advantages of CFD Trading in the Cryptocurrency Market

Conclusion: Unveiling a New Era of Financial Privacy

In conclusion, Bitcoin tumblers stand as formidable guardians of financial privacy and security in the digital age. Their role in ensuring the confidentiality of transactions cannot be overstated, providing individuals and businesses with the means to reclaim control over their financial information.

 

Posted by Adelia Tyler in Crypto

Top Crypto Trading Applications: Tools for Success in the Digital Marketplace

Cryptocurrency trading has surged in popularity, and with it, the demand for efficient and reliable crypto trading applications has reached new heights. Your choice of crypto trading app should be based on tested trading algorithms (read more about trading algorithms on Dex.ag Crypto News). These platforms serve as the gateway to the dynamic world of digital assets, offering tools that can make or break a trader’s success. In this exploration of the top crypto trading applications, we’ll delve into the features, security measures, and user-friendliness that set these platforms apart. Choosing the right application is crucial, aligning with individual trading goals and risk tolerance. Join us on this journey into the realm of crypto trading applications.

Exploring the Landscape

The crypto market is teeming with diverse trading applications, each vying for attention with unique offerings. Let’s compare some of the leading platforms to help you navigate this digital landscape.

1. Coinbase

  • Features:
    • Intuitive user interface for beginners.
    • Wide range of supported cryptocurrencies.
    • Educational resources for users.
  • Security Measures:
    • Two-factor authentication (2FA).
    • Cold storage for the majority of user funds.
  • User-Friendliness:
    • Simple onboarding process.
    • Mobile and web platforms for accessibility.

2. Binance

  • Features:
    • Extensive range of trading pairs.
    • Advanced charting tools for experienced traders.
    • Binance Coin (BNB) discounts on trading fees.
  • Security Measures:
    • Multi-tier and multi-cluster system architecture.
    • SAFU (Secure Asset Fund for Users) for added protection.
  • User-Friendliness:
    • Customizable dashboard for personalized trading experience.
    • Binance app for trading on the go.

3. Kraken

  • Features:
    • Futures trading for advanced strategies.
    • Staking options for earning passive income.
    • OTC (Over-the-Counter) trading desk for large transactions.
  • Security Measures:
    • Cryptographic proof of reserves.
    • Global settings lock for account security.
  • User-Friendliness:
    • Tiered verification for varying user needs.
    • TradingView integration for in-depth analysis.

The Importance of Choosing Wisely

Selecting the right crypto trading application is not a one-size-fits-all endeavor. Your choice should align with your trading goals and risk tolerance. Consider the following factors before making a decision:

  • Trading Goals:
    • Are you a long-term investor or a day trader?
    • Does the platform support the specific cryptocurrencies you’re interested in?
  • Risk Tolerance:
    • Evaluate the platform’s security measures.
    • Look for insurance coverage in case of unforeseen events.

Tools for Informed Decision-Making

In the fast-paced world of crypto trading, staying informed is key. Top-tier trading applications provide a suite of tools for market analysis, portfolio management, and real-time tracking.

  • Market Analysis Tools:
    • Candlestick charts, technical indicators, and real-time market data.
    • News aggregators for staying updated on market trends.
  • Portfolio Management:
    • Customizable dashboards for a comprehensive overview.
    • Tax reporting features for hassle-free filing.
  • Real-Time Tracking:
    • Instant price alerts for timely decision-making.
    • Live order book and trade history.

READ ALSO: Understanding The Key Features Of Cryptocurrencies

Conclusion: Navigating the Crypto Seas

In the vast ocean of crypto trading, the right application acts as a reliable compass, guiding you toward success. Whether you opt for the user-friendly simplicity of Coinbase, the extensive features of Binance, or the advanced options on Kraken, understanding your needs is paramount. Embrace the tools at your disposal, and may your crypto trading journey be prosperous.

Posted by Lyndsey Annabel in Crypto

Empowering Cryptocurrency Security: Unveiling BitAI’s Advanced Solutions for Risk Management and Fraud Detection

Cryptocurrency BitAI Security

As the popularity of digital currencies continues to soar, so do the challenges associated with safeguarding transactions and assets. BitAI or BitAI Trading, a cutting-edge artificial intelligence system, has emerged as a game-changer in the realm of cryptocurrency security, offering innovative solutions for risk management and fraud detection that have the potential to reshape the industry.

The Rising Need for Enhanced Cryptocurrency Security

The rapid adoption of cryptocurrencies has opened up a world of possibilities, but it has also exposed investors, traders, and businesses to a range of security risks. High-profile hacking incidents, fraudulent schemes, and unauthorized access have highlighted the vulnerability of the cryptocurrency ecosystem. With billions of dollars at stake, it has become imperative to bolster security measures and mitigate potential risks.

Introducing BitAI: Revolutionizing Cryptocurrency Security

BitAI, an advanced artificial intelligence system, has emerged as a beacon of hope for enhancing cryptocurrency security. Leveraging the power of machine learning and data analytics, BitAI has been designed to address the intricate challenges that come with securing cryptocurrency transactions and assets.

Risk Management Redefined

One of the standout features of BitAI is its ability to revolutionize risk management in the world of cryptocurrencies. Traditional risk assessment models often struggle to keep up with the dynamic and fast-paced nature of digital transactions. BitAI, however, excels in analyzing vast amounts of data in real-time, enabling it to identify potential risks and vulnerabilities swiftly.

BitAI’s risk management capabilities extend to anomaly detection, which plays a crucial role in spotting irregularities in transaction patterns. By continuously monitoring transactions, BitAI can raise alarms and trigger proactive responses when it detects suspicious activities, thereby reducing the window of opportunity for potential attackers.

Fraud Detection and Prevention

Cryptocurrency fraud has become a thorn in the side of the industry, causing financial losses and eroding trust among participants. BitAI’s advanced fraud detection capabilities offer a promising solution to this problem. Through its deep learning algorithms, BitAI can recognize patterns associated with fraudulent behavior and unusual activities.

Furthermore, BitAI’s fraud prevention measures include the ability to implement multi-factor authentication and real-time identity verification. This significantly reduces the likelihood of unauthorized access and ensures that only legitimate users can initiate transactions.

The Road Ahead: Embracing BitAI for a Secure Crypto Future

As the cryptocurrency landscape continues to evolve, the importance of robust security measures cannot be overstated. BitAI’s advanced solutions for risk management and fraud detection present a compelling avenue for addressing the security challenges that have plagued the industry. By harnessing the power of artificial intelligence, BitAI empowers users and businesses to transact with confidence, knowing that their assets are shielded by state-of-the-art security measures.

The integration of BitAI into cryptocurrency exchanges, wallets, and platforms could mark a turning point in the ongoing battle against security threats. As developers continue to refine and expand BitAI’s capabilities, the cryptocurrency ecosystem stands to benefit from enhanced security, reduced fraud, and increased trust among participants.

Want to understand more about cryptocurrency? Read this article: Understanding Cryptocurrency And Its Fundamental Concepts

In conclusion, BitAI stands as a beacon of hope in the world of cryptocurrency security. Its advanced solutions for risk management and fraud detection have the potential to usher in a new era of safety and trust within the industry. As the cryptocurrency revolution unfolds, BitAI could play a pivotal role in ensuring that the promise of digital currencies is realized securely and responsibly.

Posted by Adelia Tyler in Crypto

SEO Tips for Cryptocurrency Websites

Cryptocurrencies are a response to the need for privacy in the digital economy. You can earn and buy cryptocurrencies without banks or other central authorities overseeing the process.

As this fast-growing open-source currency continues to grow in market capitalization, value, popularity, and demand, there is a growing need to use Phoenix SEO for cryptographic websites. SEO remains the same even as the nature of some of the components evolves. The core components or pillars of SEO that should be applied to encrypted websites are technical SEO and on-page and off-page SEO.

Cryptocurrency SEO helps you get more traffic from people in your crypto niche and increase customer growth, awareness, and platform sales. His effective SEO strategies for crypto businesses help market the company’s products and services to target the correct audience and drive real traffic to your site.

The value of cryptocurrencies is recognized as users flow to your site and are directed to your site through online searches. Cryptocurrency advertising offers many opportunities, increasing the need to incorporate his SEO crypto strategy into campaigns. Crypto SEO is a significant driver of cryptocurrency-related organic traffic and can help you grow your customers, increase sales, and increase referrals to your business website.

Conduct a keyword research

When it comes to her SEO optimization of cryptocurrency sites, the first step is to know the specific keywords of your target audience to search for your service on search engines like Google.

Optimize your content

Creating SEO content is the best way to customize your content to a quality that appeals to your target audience and search engines. An encrypted website’s SEO content marketing strategy should focus on creating and publishing relevant, high-quality encrypted website content using keywords relevant to your niche. 

Get backlinks

Link building provides an efficient solution for obtaining authority for encrypted websites. Create a backlink profile to increase your website’s visibility and get better rankings on search engine result pages (SERPs). This will also improve your SEO rankings resulting in higher traffic and sales.

Organize the site structure

An encrypted website should be very different from other websites. Additionally, visitors have little to no trouble identifying your site as a crypto site if it is organized and structured with cryptocurrency technical information. 

Therefore, when optimizing a page for SEO, considering the structure of the crypto website, the website will only appeal to the target audience.

Optimize page speed

The importance of page speed in ranking a website cannot be overemphasized. Statistics show that 53% of mobile website visitors abandon pages that take longer than 3 seconds to load. Web pages that load slowly are not only tiring and discouraging, but they also increase your bounce rate, but Google isn’t oblivious to this.

Posted by Lexi Farley in Crypto

A Great Way To Diversify Cryptocurrencies

Cryptocurrencies are a form of electronic money. It only exists in virtual form. So there are no coins or notes. You can pay with its cash, but digitally without the need for a bank or other third party. Bitcoins and other cryptocurrencies such as Ethereum, Dash, Ripple, Litecoin, and Monero do not have 1 owner but are owned by everyone who uses them. The underlying, secure technology that makes all of this possible is called Blockchain. If you are interested visit this site ()

Success Stories

So you can pay with cryptocurrency, but most stories in the media are about people who have invested in it. To illustrate: anyone who bought Bitcoins for $50 in 2009 – the year they were first offered – is now a multimillionaire. But even those who ‘only’ started at the beginning of 2017 will have a profit of almost 2000% (!) in the digital wallet a year later.

‘Anti-government, anti-regulation

Proponents of Bitcoin like to draw the comparison with gold. That too has no social benefit and no economic basis. It is only worth a lot because of its scarcity. Cryptocurrencies are hot. ‘Investors feel smart. They understand things that no one else understands,” said leading economist Robert Shiller. “The Bitcoin is anti-government, anti-regulation. It’s a beautiful story.’

Cryptocurrency Risks

It is therefore not surprising that more and more people are becoming nervous, especially now that it is no longer possible to earn dry bread with savings. Of course, investing always involves risks, but with cryptocurrency, this risk is quite large. For example, if you buy a share, you purchase a part of the underlying company. Cryptocurrency lacks such intrinsic value. The value is determined only by the demand of speculators. If you step out, it can be over in no time. In addition, your wallets can be hacked online or the digital key can be lost. Then you lose all Bitcoins, or you can’t get to them anymore. After all, no banks also mean no supervisor you can turn to.

AFM advises against investing

That is why in the past both the Netherlands Authority for the Financial Markets (AFM) and De Nederlandsche Bank (DNB) warned about the risks of ‘the umpteenth new Bitcoin’. According to financial regulators, these are vulnerable to deception, fraud, and manipulation. The AFM even advises consumers not to invest in new cryptocurrencies that are not under its supervision. Pieter Hasekamp, ​​director of the Central Planning Bureau, goes one step further. In an article in Het Financieele Dagblad (June 11, 2021), Hasekamp argued that the Netherlands should ban bitcoin as soon as possible.

Similarities with the stock market crash

Also, 2 former winners of the Nobel Prize in economics spoke out against Bitcoin. According to Joseph Stiglitz, the digital payment method is only popular because of the possibilities for money laundering and does not serve any social benefit. The aforementioned Robert Shiller sees similarities with the situation before the stock market crash of 1929. ‘The value is rising. Just like the stock markets in the 1920s. In the end, 1929 is reached. Then the coin comes down. Not to zero, but he will fall for sure,” Shiller predicts.

Politics tightens the reins

Cryptocurrencies are also not well on the Dutch political scene. This is evident from a bill from Minister Hoekstra (Finance) from 2019. It states, among other things: ‘The anonymity of virtual currencies also makes it possible to abuse them for criminal purposes, such as laundering criminally obtained income.’ Both the House of Representatives and the Senate have approved this bill. Companies that offer services for exchanging between virtual money (cryptos) and ‘ordinary’ money have therefore come under the Money Laundering and Terrorist Financing Act (Wwft) since 21 May 2020. That also applies to companies that offer crypto custodial wallets. This means that:

Bad for the Environment

Another argument against Bitcoins is that ‘mining’ costs a lot of electricity. Worldwide at least 40 TWh. That is as much as Hungary uses in a year. To be profitable, the special mining computers have to run permanently, which is bad for the environment.

Advice Consumers’ Association

We are not necessarily anti-cryptocurrency. But only put in money that you can afford to lose. This is no different from other forms of investment. And make sure you spread your risks. So never invest more than 10% of the assets that you have available for investments.

Posted by Lyndsey Annabel in Block Chain Crypto, Crypto, Cryptocurrency Mining

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