Cryptocurrency – The Way Forward and Possibilities

Well, like almost everything else in life – if not everything – you have to buy it before you invest in it. Investing in Bitcoin can be very difficult, and that is if you don’t have a step ahead.

First of all, you should know that Bitcoin is a type of cryptocurrency, one of the first digital currencies, which was invented, designed and developed by Satoshi Nakamoto, and went public in 2009.

And since then, updates and improvements have been made by a network of highly experienced developers and the platform has been partially funded by the Bitcoin Foundation.

Since Bitcoin has become a topic of great interest and many people are investing in it, there is no harm if you too get digital wealth. Interestingly, in 2012, Bitcoin companies were only able to raise $2.2 billion.

Despite the drop in prices this year, cryptocurrency continues to see growth in both users and merchants accepting it as payment.

So how can you be part of the action? Investing in Bitcoin can be easy for the average Joe, he just buys some.

Buying today has become simple, with many companies in the United States and all over the world participating in the business of buying and selling.

For US investors, the easiest solution is Coin Base, which is a company that sells BTC to people at a markup that is usually around 1% of the current market price.

If you want a traditional exchange, Bit Stamp may be a better option, as users are not only trading with the company, but with the users.

The company acts only as an intermediary. Liquidity is higher and you can almost always find another person to take the other side of your trade.

Fees start at 0.5% and drop to 0.2% if you have traded more than $150,000 in the last 30 days. All of these are already in their own way, means of making investments, because the more BTC you buy, the more profit you will accumulate to keep or if you choose to resell to other traditional buyers at a higher price than what you bought. real companies

You can also buy bitcoins in another way to exchange them. One of the most popular offline avenues is Local Bitcoins, which is a website that matches you with potential buyers and sellers. At the time of purchase, the coins are locked from the seller in escrow, from which they can only be released to the buyers.

But buying bitcoins offline should be done with some additional precautions, which are always common, like when you meet a stranger. Meet in a public place during the day and if possible, bring a friend.

Bitcoin is the hottest thing on the web today. Investors and venture capital firms are betting it’s here to stay. For the average Joe, there are many ways to invest and buy Bitcoin.

In the US, the most popular avenues are Coin Base, Bit Stamp, and Local Bitcoins. Each has its advantages and disadvantages, so do your research to find the one that’s right for you.

Cryptocurrency is getting better every day. Your wealth continues to grow, just like your viral posts on social media. A contagious financial tool for a good portfolio and a catalyst for growth. An interesting fact is that there are more than 5000 cryptocurrencies.

2021 was a wonderful year, but where do we go from here?

Let’s zoom in on the situation here. Both Bitcoin and Ethereum touched the highest performance bars. Long-term investors rely on it. By the time you read this article, there may be more exciting cryptocurrency news. I will try to present here the cryptocurrency future opportunities.

The new regulation is in effect. They are under the carpet. Measures are in place to minimize the risk of cybercriminals. The goal is to make this investment a safe tool for people. For example: China declared in September that all cryptocurrency transactions are illegal. Clear regulations will remove all barriers to make trade safer.

How will the new regulations affect investors?

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

ETF approval – An important factor to consider

The Bitcoin ETF made its debut on the NYSE. It will help investors to buy cryptocurrency from existing investment companies. Due to the increasing demand, both stock and bond markets are facing it. Let’s look at it from an investor’s point of view. Easier accessibility of cryptocurrency assets helps people to buy them without any hassle. If you plan to invest in a Bitcoin ETF, remember that the risks are the same as any other cryptocurrency. You have to be willing to take a risk. Otherwise, it is useless to invest your money.

What does the Future hold?

Bitcoin is the best in the crypto market. It has the highest market capitalization rate. In November 2021, its price increased to $68000. In October, the rate was $60000, while in July it was $30000. There is a lot of fluctuation in market rates. Experts suggest keeping cryptocurrency market risk in your portfolio to less than 5%. When talking about short-term growth, people are hopeful. Bitcoin price volatility is a factor to consider. If you want to play for the long term, short term results shouldn’t affect you.

Looking at it from an angle of increasing your wealth is not a good decision. Stick to traditional investment instruments in addition to cryptocurrencies. For example: if you want cryptocurrency as your retirement savings tool, it’s time to rethink your decision. Keep your investments small and diversified. It will reduce the risk factor. At the same time, you will have more time to think about cryptocurrencies.

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

In the first edition of CRYPTO TREND we introduced Crypto Currency (CC) and answered several questions about this new market space. There is a lot of NEW in this market every day. Here are some highlights that give us an idea of ​​how new and exciting this market space is:

The world’s largest futures exchange for creating a Bitcoin futures contract

Terry Duffy, president of the Chicago Mercantile Exchange (CME), said: “I think you’ll see in the second week of December our [bitcoin futures] recruit for the list. Currently, you cannot short bitcoin, so there is only one way. You buy it or sell it to someone else. So you create a two-sided market, which I think is always much more efficient.”

CME plans to launch Bitcoin futures by the end of the year, pending regulatory review. If successful, it will give investors a viable way to go “long” or “short” Bitcoin. Some sellers of Exchange-Traded Funds have also introduced bitcoin ETFs that track bitcoin futures.

These developments allow people to invest in the cryptocurrency space without owning CC or using the services of a CC exchange. Bitcoin futures can make the digital asset more useful by allowing users and brokers to hedge their currency risks. This could increase adoption of the cryptocurrency by merchants who want to accept bitcoin payments but are wary of its volatile value. Institutional investors are also used to trading regulated futures, which do not have money laundering concerns.

CME’s move also suggests that bitcoin has become too big to ignore, as the exchange seemed to ignore crypto futures in the recent past. Bitcoin is all anyone is talking about in brokerage and trading firms, which have suffered amid a bullish but unusual market. If futures were to take off on one exchange, it would be nearly impossible for any other exchange, like CME, to move forward, as scale and liquidity are important in derivatives markets.

“You can’t ignore that this is becoming more and more of a story that’s not going to go away,” Duffy said in an interview with CNBC. There are “major companies” that want access to Bitcoin and there is “high demand” from customers, he said. Duffy also believes that bringing institutional traders into the market could make bitcoin less volatile.

Japanese people use cryptocurrency to raise capital for municipal revitalization

The Japanese town of Nishiawakura is investigating an Initial Coin Offering (ICO) to raise capital for municipal revitalization. This is a very innovative approach, and they can seek support from the national government or seek private investment. Several ICOs have run into serious problems, and many investors are skeptical that any new tokens will have any value, especially if the ICO turns out to be another joke or scam. Bitcoin was definitely no joke.

INITIAL COIN OFFERING – ( ICO )

We didn’t mention ICO in the first edition of Crypto Trend, so let’s mention it now. Unlike an Initial Public Offering (IPO), where a company has an actual product or service for sale and wants to buy shares in their company, an ICO can be held by anyone who wants to start a new Blockchain project with the intention of creating it. a new token on their chain. ICOs are not regulated and there have been several scams. A legitimate ICO, however, can raise a lot of money to fund a new Blockchain project and network. It is common for an ICO to generate a high token price near the beginning and then return to reality soon after. Since having an ICO is quite easy if you know the technology and have a few dollars, there have been many, and today we have about 800 tokens in play. All these tokens have a name, they are all cryptocurrencies, and except for the very popular tokens like Bitcoin, Ethereum and Litecoin, they are called alt-coins. At this time Crypto Trend does not recommend participating in an ICO, as the risks are very high.

As we said in #1, this market is the “wild west” right now, and we advise caution. Some investors and early adopters have made huge profits in this market space; however, many, if not all, have lost. Governments are looking at regulations because they want to know about every transaction in order to tax them all. Everyone is heavily in debt and strapped for money.

So far, the cryptocurrency market has avoided many of the financial problems and pitfalls of government and conventional banks, and Blockchain technology has the potential to solve even more problems.

A great feature of Bitcoin is that the creators chose a limited number of coins that can ever be created – 21 million – thus ensuring that this cryptocurrency can never be inflated. Governments can print as much money (fiat currency) as they want and inflate their currency to death.

Future articles will delve into specific recommendations, however, make no mistake, early investing in this sector is only for your most speculative capital, money you can lose.

CRYPTO TREND will be your guide if and when you are ready to invest in this market space.

Stay tuned!

The Sovereign Individual ~ by James Dale Davidson and William Rees Morg

The Sovereign Individual is one of those books that changes how you see the world forever. It was published in 1997, but the degree to which it predicts the impact of blockchain technology will give you chills. We are entering the fourth phase of human society, moving from the industrial to the information age. You must read this book to understand how things will change.

As it becomes easier to live comfortably and earn an income from anywhere, we already know that those who will really thrive in the new information age will be location-independent workers who are not tied to a single job or career. The drive to choose where to live based on price savings is already more attractive, but this goes beyond digital nomadism and freelance gigs; the foundations of democracy, government and money are changing.

The authors predicted Black Tuesday and the collapse of the Soviet Union, and here they predict a rise in the power of individuals as decentralized technology cuts into the power of governments. The death toll of nation-states, they predicted with extraordinary conviction, will be private and digital money. When that happens, the dynamic of governments will change as passive bandits stealing taxes from hardworking citizens. If you’ve become someone who can solve problems for people anywhere in the world, you’re about to join the new cognitive elite. Don’t miss this one.

Choice quote: “When technology is mobile and transactions take place in cyberspace, as they increasingly will, governments will not be able to charge more for their services than the people who pay for them deserve.”

Sapiens: A Brief History of Humankind ~ by Yuval Noah Harari

Whenever I want to impress upon someone how good this book is, I ask them, “Do you want to know the basic difference between humans and monkeys? A monkey can jump up and down on a rock and wave a stick and scream at its friends that a threat is coming. “Danger! Danger! A lion!” Even a monkey can lie. He can jump up and down on words and wave a stick and scream about a lion when, in fact, there is no lion. He’s just being silly. But that’s what a monkey can’t do. jump up and down and wave a stick and shout, ‘Danger! Danger! Dragon!'”

Why is this? Because dragons aren’t real. As Harari explains, it is the human imagination, our ability to believe and talk about things we have never seen or touched, that has driven the species to cooperate with aliens in large numbers. There is no god, no nation, no money, no human rights, no law, no religion and no justice in the universe beyond the common imagination of men. We are the ones who make them that way.

All of this is a great introduction to where we are today. After the Cognitive Revolution and the Agricultural Revolution, Harari will guide you to the Scientific Revolution, which started just 500 years ago and could start something completely different for mankind. The money, however, will remain. Read this book to understand that money is the greatest story ever told and that trust is the raw material from which all forms of money are made.

Optional Quote: “The Sapiens, on the other hand, live in a triple-layered reality. In addition to trees, rivers, fears, and desires, the Sapiens world also has stories about money, gods, nations, and corporations.”

The Internet of Money ~ by Andreas M. Antonopoulos

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

His first book, Mastering Bitcoin, is a technical in-depth look at the technology, aimed at developers, engineers, and software and systems architects. But this book uses some choice metaphors to explain why you can’t ban or shut down Bitcoin, how the scaling debate doesn’t really matter, and why Bitcoin needs designer help to block mass adoption.

“When you drive your new automobile in a city,” he writes, “you drive on roads used by horses that have infrastructure designed and used for horses. There are no traffic lights. There are no rules of the road. There are no paved roads. And what happened? Cars got stuck because they didn’t have balance and four feet.” But fast-forward a hundred years and the once-derided cars are completely commonplace. If you want to dive into the philosophical, social, and historical implications of Bitcoin, this is your place to start.

Optional quote: “Bitcoin isn’t just money for the internet. Yes, it’s the perfect money for the internet. It’s instant, it’s secure, it’s free. Yes, it’s money for the internet, but it’s so much more. Bitcoin is internet money. Currency is just the first application is. If you understand that, you can look beyond the price, you can look beyond the volatility, you can look beyond the fad. At its core, Bitcoin is a revolutionary technology that will change the world. forever. Enter.”

An ICO is a short initial coin offering. When they launch a new cryptocurrency or crypto-token, developers offer a limited number of units to investors in exchange for other major cryptocurrencies like Bitcoin or Ethereum.

ICOs are amazing tools to quickly rain development funds to support new cryptocurrencies. Tokens offered in an ICO can be sold and traded on cryptocurrency exchanges, assuming there is sufficient demand to do so.

Ethereum is one of the most notable ICO successes and the popularity of Initial Coin Offerings is growing as we speak.

A brief history of ICOs

Ripple is likely to be the first cryptocurrency distributed through an ICO. In early 2013, Ripple Labs began developing the Ripple payment system and created approximately 100 billion XRP tokens. These were sold through an ICO to fund the development of Ripple’s platform.

Mastercoin is another cryptocurrency that sold 1 million tokens in an ICO, also in 2013. Mastercoin aimed to tokenize Bitcoin transactions and implement smart contracts, creating a new layer on top of the existing Bitcoin code.

Of course, there are other cryptocurrencies that have been successfully funded through ICOs. In 2016, Lisk raised about $5 million in its Initial Coin Offering.

However, Ethereum’s ICO in 2014 is probably the most notable to date. During their ICO, the Ethereum Foundation sold ETH for 0.0005 Bitcoin, raising nearly $20 million. Harnessing the power of smart contracts, Ethereum paved the way for the next generation of initial coin offerings.

Ethereum’s ICO, a recipe for success

Ethereum’s smart contract system has established the ERC20 protocol standard, which sets the ground rules for creating other enforceable tokens that can be transacted on Ethereum’s blockchain. This allowed others to create their own tokens, complying with the ERC20 standard that can be traded directly with ETH on Ethereum’s network.

The DAO is a prominent example of the successful use of smart contracts on Ethereum. The investment company raised $100 million worth of ETH and investors received DAO tokens in exchange, allowing them to participate in the governance of the platform. Unfortunately, the DAO failed after being hacked.

Ethereum’s ICO and its ERC20 protocol have defined the latest generation of crowdfunding blockchain-based projects through Initial Coin Offerings.

It was also very easy to invest in other ERC20 tokens. You simply transfer the ETH, stick the contract in your wallet and the new tokens appear in your account for you to use as you wish.

Of course, not all cryptocurrencies have ERC20 tokens living on the Ethereum network, but almost any new blockchain-based project can launch an Initial Coin Offering.

Legal status of ICOs

It’s a bit of a jungle when it comes to the legality of ICOs. In theory, tokens are sold as digital goods, not financial assets. Most jurisdictions have yet to regulate ICOs, so assuming the founders have a seasoned lawyer on their team, the entire process should be paperless.

However, some jurisdictions have become aware of ICOs and are already regulating them similarly to the sale of stocks and securities.

In December 2017, the US Securities and Exchange Commission (SEC) classified ICO tokens as securities. In other words, the SEC was gearing up to stop ICOs that they consider misleading investors.

There are some cases where the token is just a utility token. This means that the owner can use it to access a particular network or protocol, in which case it may be defined as financial security. However, equity tokens that appreciate in value are quite close to the concept of security. In reality, most token purchases are made specifically for investment purposes.

Despite the efforts of regulators, ICOs remain in a gray legal area and until a clearer set of regulations is in place entrepreneurs will try to profit from Initial Coin Offerings.

It is also worth noting that once the regulations reach their final form, the costs and effort required to comply may make ICOs less attractive compared to traditional funding options.

Last words

For now, ICOs remain an amazing way to fund new crypto-related projects and have had multiple successes with more to come.

However, keep in mind that everyone is launching ICOs these days and many of these projects are either scams or lack the solid foundation they need to thrive and be worth the investment. This is why you should definitely do your due diligence and research the team and background of any crypto project you want to invest in. There are several websites that list ICOs, do a Google search and you will find a few options. .

There are several types of cryptocurrency wallets for users to store and access their digital currencies in different ways. An important question in this context is how secure these wallets are. Before taking on the security aspect, it is helpful to understand the various types or varieties of cryptocurrency wallets that exist today.

Cryptocurrency Wallet: Types and Varieties

These wallets can generally be classified into 3 categories:

• Software portfolios
• Hardware cases and
• Paper wallets

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

• Desktop software portfolios: These wallets need to be downloaded and installed on desktop computers and laptops. This particular variety offers the highest level of security, although accessibility is limited only to the computer they are installed on. Also, in case, if the computer is hacked or infected with viruses, there is a chance that someone will lose all their money.
• Online Software Wallets: This range of cryptocurrency wallets runs on the Cloud. Thus, they can be easily accessed from any computer device and from any geographical location. In addition to the convenience of accessibility, this type of digital wallet stores private keys online. Keys are also controlled by third parties; this makes them easily vulnerable to hacking and theft.
• Mobile Software Wallets: Unlike the other two varieties, mobile software wallets run through an app on smartphones. These can be used anywhere, including retail stores and shopping malls. This range of wallets is usually much simpler and smaller compared to the usual desktop ones to fit the very limited space on mobile phones.

The difference between hardware and software wallets

Hardware digital wallets differ from software in the aspect of storing the user’s private keys. Hardware wallets store user keys on a hardware device (such as a USB). Thus, since the keys are stored offline, these wallets offer additional security. Also, hardware wallets are easily compatible with many online interfaces and can even handle different currencies. This type of cryptocurrency wallet is also easy to transact. As a user, you simply need to connect the device to any computer connected to the network before entering a PIN, transfer the currency and confirm the transaction. Hardware wallets keep your digital currency offline and hence the risk factor or security concern is also much less.

Digital paper wallets: This range of digital wallets is also easy to use and ensures a high level of security. The term “paper wallet” refers only to the paper printout of the user’s public and private keys. However, depending on the case, it can also refer to a software application that serves to securely generate keys before printing.

Sweeping with paper bags

Using paper wallets is relatively easier. To transfer any cryptocurrency to your paper wallet, transfer funds from your software wallet to the public address displayed by your paper wallet. Also, when you want to spend or withdraw your money, transfer the funds from your paper wallet to your software wallet. This procedure is called “scanning”.

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

How secure are cryptocurrency wallets?

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

• The type of wallet you use: hardware, paper, online, desktop or mobile
• Your chosen service provider

Needless to say, it is much safer to keep your currencies in an offline environment compared to an online one. There is no way to ignore security measures, regardless of the wallet you choose. If you lose your private keys, all the money stored in the wallet will be removed from your hands. On the other hand, if your wallet is hacked or you transfer funds to a fraudster, it will not be possible to reverse the transaction or recover that money.

Investing in cryptocurrencies is a smart business idea and for that, using a proper wallet is inevitable. You must exercise due care to ensure the safety and security of your fund transfers and transactions.

When trading cryptocurrencies, you have to speculate whether your chosen market will go up or down in value. And the interesting thing is that you never own the digital asset. In reality, trading is done with derivative products like CFDs. Let’s take a look at the benefits of cryptocurrency trading. Read on to find out more.

Volatility

Although cryptocurrency is a relatively new market, it is quite volatile because speculative interest is short-lived. The price of Bitcoin fell to $5851 in 2018 from $19,378 in just one year. However, the value of other digital currencies is quite stable, which is good news.

What makes this world so exciting is the volatility of cryptocurrency value. Price movements present many opportunities to traders. However, this has many risks. Therefore, if you decide to explore the market, be sure to do your research and put a risk management strategy in place.

Business hours

Usually, the market is open for trading 24/7 because it is not regulated by any government. Moreover, transactions are made between buyers and sellers from all over the world. There may be brief outages when infrastructure updates are performed.

Improved liquidity

Liquidity refers to how quickly a digital currency can be sold for cash. This feature is important because it enables faster transaction times, better accuracy and better prices. Generally, the market is illiquid, as financial transactions take place on different exchanges. Therefore, small trades can lead to large changes in prices.

Leveraged exposure

Since CFD trading is considered a leveraged product, you can open a position on what we call “margin”. In this case, the value of the deposit is a part of the trade value. So you can enjoy great exposure to the market without investing a lot of money.

The loss or gain will reflect the value of the position at the time of closing. Therefore, if you trade on margin, you can make huge profits by investing a small amount of money. However, it also increases losses that can exceed your deposit in one trade. Therefore, be sure to consider the full value of the position before investing in CFDs.

It is also important to ensure that you follow a sound risk management strategy, which should include appropriate limits and stops.

Fast account opening

If you want to buy cryptocurrency, make sure you do it through an exchange. All you have to do is sign up for an exchange account and store the currency in your wallet. Keep in mind that this process can be restrictive and require a lot of time and effort. However, once the account is created, the rest of the process will be quite smooth and uncomplicated.

Long story short, these are some of the prominent benefits of cryptocurrency trading in the here and now. Hopefully, you will find this article quite helpful.

Cryptocurrency is a type of digital currency that you can use to buy goods and services. For secure transactions, cryptocurrencies depend on a very complex online ledger. Millions of people around the world are investing in these unregulated currencies for profit. Among all these popular cryptocurrencies, Bitcoin tops the list. In this article, we will delve deeper into cryptocurrency. Read on to find out more.

1. What is Cryptocurrency?

Basically, you can pay with cryptocurrency to buy goods or services online. Today, several companies have launched their own cryptocurrency. Known as tokens, they can be exchanged for goods and services. You can think of them as casino chips or arcade tokens. You can use your real currency to buy cryptocurrency for these transactions.

To verify transactions, cryptocurrencies use a state-of-the-art system known as blockchain. This decentralized technology is powered by many computers programmed to manage and record transactions. Security is the best thing about this technology.

2. What is Cryptocurrency worth?

Today, there are more than 10,000 types of cryptocurrencies. And they are traded all over the world, according to reports from CoinMarketCap. To date, the value of all cryptocurrencies is over $1.3 trillion.

At the top of the list is Bitcoin. The value of all Bitcoins is $599.6 billion, give or take.

3. Why are they so popular?

Cryptocurrencies are very attractive for a number of reasons. Some of the more common ones are listed below:

Some believe that cryptocurrency is the currency of the future. Therefore, many of them are investing their hard-earned money in the hope that the cryptocurrency will increase in value in a few years.

Some believe that this currency will be free from central bank regulation, as these institutions reduce the value of money through inflation.

Some proponents prefer the technology that powers cryptocurrencies, namely blockchain. Basically, this is a decentralized registration and processing system that can offer a higher level of security than traditional payment systems.

Some speculators are chasing cryptocurrency because it is increasing in value.

4. Is it a good investment?

According to most experts, the value of cryptocurrencies will continue to rise as time goes on. However, some experts suggest that these are just speculations. Like real currency, this type of currency has no cash flow. So if you want to make a profit, someone has to pay a larger amount of money to buy the currency.

Unlike a well-run business that increases in value over time, cryptocurrency has no assets. But if the cryptocurrency remains stable for a long time, it will definitely help you earn a lot of profit.

In short, this was a basic introduction to cryptocurrency. Hopefully, this article will help you get to know this new type of currency.

If we look at the most influential development of recent times, the first thing that certainly comes to mind is cryptocurrency. People have made huge profits by investing in cryptocurrencies like bitcoin and more at the right time. Many people have managed to have a heyday by simply offering a cryptocurrency exchange platform for investors to trade cryptocurrencies.

Setting up an exchange is relatively easy. but there are some basic things you need to know before starting your exchange.

Let’s see them –

Do you have a target audience in mind?

One of the most important things to consider before creating any business platform is figuring out your target audience. It’s the same here.

When you plan to set up a Bitcoin exchange platform, the first thing you need to analyze and determine is your target audience.

For example, in the case of bitcoins, you can target both local and global audiences. So you need to know who is your target audience and then plan with the development process. Why is it important? Well, you will find out in the following sections.

Do you understand the legal requirements?

The second thing you need to consider is the legal terms and conditions you will need to comply with.

There is a lot of buzz about the legal aspects related to cryptocurrency, but you will be surprised to know that there are 96 countries where bitcoin transactions are still unrestricted.

Therefore, creating a cryptocurrency exchange platform targeting these countries may be the best idea.

Always remember to thoroughly research the legal guidelines in place in the area you intend to work in.

Do you have a partner bank?

Another thing to remember here is that you will need a partner bank. The simple reason behind this is that you will be dealing with financial transactions.

To ensure that financial transactions are carried out smoothly and hassle-free, you need to ensure that you have the right support in the form of a partner bank.

Therefore, you need to contact a few banking institutions to see if they can help you, and to understand their terms.

Do you have the right platform development partner?

The most important step in the process is finding the right professional to help you develop a secure platform. The reason why we mentioned the term safe in particular is because the enormous popularity of cryptocurrency has made these exchanges prime targets for hackers.

To make sure that your reputation doesn’t take a hit due to something unwanted, you need to focus on creating a safe platform. You can easily achieve this by hiring a seasoned developer who knows the ins and outs of the industry.

For example, they can test the platform by mimicking a malware attack and see how your cryptocurrency exchange stacks up against it.

Conclusion

This last point summarizes the basic things you should keep in mind when planning to set up a cryptocurrency exchange platform for yourself. Once these questions are answered, you can easily move forward with the development and make some profits.

But, remember to take all the necessary legal, compliance and security measures if you want to be in this game for a long time.

So are you ready?

Bitcoin Risks Investors Should Be Aware Of

One risk-Bitcoin’s volatility

Everyone knows how volatile bitcoin is and those who invest in it will see the value of this cryptocurrency fluctuate significantly. Unless you can handle the rise and fall of bitcoin, investing in bitcoin is not for you. Little is gained if losing your capital will cause you to lose sleep. I cannot stress enough the importance of using your discretionary spending money to play the cryptocurrency market.

What is discretionary spending?

This is money spent on travel, dining, entertainment, hobbies and sports.

You would never spend rent money or retirement savings on entertainment, such as a day at the races, so you shouldn’t use that money to play the cryptocurrency market either.

Risk bi-Hacking

A company called “Cryptopia”, which was an online bitcoin trading platform, had funds invested in Bitcoin. It got hacked and everyone who had bitcoin invested with crypto lost their money. There were some sad stories about the large amount of money lost by some. individuals

It bears repeating that you should never play cryptocurrency with funds you cannot afford to lose or put too many eggs in one basket as many of these investors seem to have done.

The other thing I should add is that the actual amount of money lost by crypto investors is likely to be wildly inflated by the rise in the price of bitcoin. If someone invested $1,000 in bitcoin and this rose to $10,000 in a few years, they have a lot to lose. This person will be recorded as having lost 10k when in fact they have lost 1k.

Risk of losing three passwords

An Australian man is locked out of his bitcoin wallet because he can’t remember his password. The website that holds his bitcoin will permanently lock him out of his wallet after ten failed login attempts. He has done eight. He has more than 300k in his bitcoin wallet.

The lesson here is to write down your password and keep it in a safe place.

The other tip is to diversify your portfolio so you don’t lose too much in one fell swoop if something goes horribly wrong.

Risk four-Government controls

Governments have the ability to ban crypto trading; China has done just that. Several Chinese agencies have joined forces to ban what they describe as “illegal” cryptocurrency activity. This does not mean that other countries will follow suit, but it does show a point that governments have the power to do so.

Risk five-Tax

Two things are certain in life, death and taxes. Rest assured that at some point the taxman will want a piece of your bitcoin pie. Whether it’s in the form of Capital Gains Tax or increasing the value of bitcoin. It’s worth remembering that if you’re being taxed on your bitcoin capital gains, it may be possible to get a tax refund on capital losses. A good accountant will advise you here.

Regardless of the capital gains you are investing in, keep in mind that when there is a potential for capital gains, there is also a capital loss. Investing in cryptocurrencies is risky, so it cannot be stressed enough that the money you invest in bitcoin should be money you can afford to lose.