Bitcoin’s record price surge of 2017 was caused by a ...
How Did I Discover Cryptocurrency and Why I Choose BitcoinCash
How Did I Discover Cryptocurrency and Why I Choose BitcoinCash. One of the first questions always asked in the Crypto sphere is how did you learn about Bitcoin? Then followed up by which coin or coins do you hold? The answer to this first question is not as easy to answer as you would think. Right before the split between Bitcoin and BitcoinCash I met someone very involved in the community we were discussing how I became a libertarian which naturally lead us to a discussion about economic freedom, Ross Ulbricht and then Bitcoin. The following day I ran home and researched Silk Road and Ross Ulbricht. Five minutes later, I had signed the petition. My interest was piqued, I started to do my own research in regards to Bitcoin. I bought several books but all that did was confuse me more. I started watching YouTube videos and remember thinking to myself “who are these people” and “are they even speaking English” but I kept researching determined to learn about economic freedom, I just couldn’t grasp how someone could gain economic freedom with online money. Fast forward to the Bitcoin/BitcoinCash fork, I knew this was a big deal but I didn’t know what was going to happen. So I called my friend and set up another time to meet, well this time I was prepared I had my notes laid out from the books I had read and I was pretty proud of myself after all Bitcoin is not easy to understand with words like nodes, Raspberry Pi's (what does pie have to do with economic freedom), miners, QR's, checkpoints, lightning (still waiting) and why only 21 million and do I have to buy a full coin? I mean this list goes on (after all I am much older than the usual crypto enthusiast) little did I know I had already entered the rabbit hole and from the look I received from my friend he knew it. So after 2 days that was it, I needed to get my hands on Bitcoin. As soon as I got home I joined Coinbase and I saw a few coins listed and thought Bitcoin is really expensive and I can get 4 times the amount with this coin called Litecoin so I put in a buy order for that, Etherum and BitcoinCash. I had never been a huge fan of Social Media but at this time I decided I needed to join Twitter to see what others were experiencing and oh God what a jolt to the senses that was. Everyone tweeting why this and that coin is bad and this person is bad and that person is good, Crypto Twitter can be a shit show especially in the beginning and being new to both Twitter and Crypto my brain was in overload. I followed my friend on Twitter and just started to pay attention to him and basically began stalking his feed and Youtube channel but I never really engaged (I truly felt like a stalker). But I was learning my way around and who did what in their relative fields. As everyone knows Coinbase can be very frustrating because it seems like forever before you have access to your coins and the whole time I’m thinking what have I done? So a month went by and I finally received an email saying my funds are now available in Coinbase I opened up that app and to my surprise, my money had just quadrupled. I had learned while investing once you make back your initial investment sell that portion and that is exactly what I did! But the damage had been done I was hooked and immediately took that initial investment and bought every altcoin I could get my hands on via Binance, which can seriously do some damage to your wallet. I still really did not know what to do with Cryptocurrency, there were all these wallets, but why were they needed if all it did was sit there like digital gold. So I started to engage with people on Twitter to discover what others were doing, I didn’t have any followers so outside of a few likes here and there I would never really get any feedback. I asked my friend about this and he started to respond to me and soon after that, others started to respond to me, then I was included in threads and I had my first Crypto Twitter follower, he was no joke and little did I know at that time how much of an influence this person would have in my Twitter and Crypto life. But Crypto Twitter will have to be its own story. As I started to learn how to navigate my way through Crypto Twitter and began to understand the correct questions to ask I began to get the answers I needed. These questions amounted to where/who accepts crypto and why is this coin better than that coin? The people that came forward were the BitcoinCash community, I couldn’t understand why was it only the BitcoinCash people that would respond to me, after all, there are so many coins out there? But these were the people that had a passion for what they were doing and believed in that passion, from the CEO to the developers down to the end user. It was like a breath of fresh air to find people passionate about rewarding hard work and not caring about who you are and which country you are from along with giving back to communities that are far less fortunate by no fault of their own they just don’t have access to resources that are available to Western Nations, Europe, and Asia. I discovered the philanthropic work was incredible and still to this day I still am overwhelmed by how much the BitcoinCash community does and feel very fortunate to be a part of it. Downloading wallet after wallet, I discovered some were easy some were difficult and well some were just ridiculous. I started to tag random developers on Twitter and honestly was surprised when they responded to me and offered their help after all these are really busy people why would they take the time to help one person. The reason is simple they want Cryptocurrency to be a success and they understand how difficult it is, especially for an older person who just got her first smartphone 2 years earlier. After learning about the importance of 12-word seed phrases how a QR code works and legacy addresses I now felt comfortable enough to begin introducing people to cryptocurrency and more importantly BitcoinCash. Little did I know how difficult this would be, I mean who doesn’t want money even if it’s free. After months of interaction on Twitter and other platforms, I decided I needed to do something besides just talking about Crypto I needed to shout it from the rooftops. I desperately wanted to find others around me that I could share my experiences with so I created a Meetup in my area and began talking about it at work with my friends and family I just started telling everyone I ran into have you heard about BitcoinCash? “No” here let me show you” inevitably I started to hear oh that’s for drug dealers or it’s a scam. So now I thought how do I get past this obstacle that CNN and Fox News has put in front of me? I became more determined than ever to beat them at their own game. I had another hurdle to jump, so my path now came to what is an everyday product I can buy with Bitcoincash? Well, there are tons you just have to find them, and since my area of the country is about 10 years behind the rest of the country this was very difficult. But one thing I do a lot is travel and I was about to buy a plane ticket so I found CheapAir.com which accepts BitcoinCash, so I used that and discovered how easy it is, I can literally lay in bed find a flight and/or a hotel and right there without turning on the lights or getting up for my credit card number. What about overcoming only drug dealers use it (which my stepmom throws in my face almost every day) so for Christmas I purchased her some beauty products with BitcoinCash. I am constantly scouring the internet looking for more ways to spend Crypto instead of government-funded cash. My meetups started out with 2 people 1 of which was my dad to 12 strong and growing (which does not include my dad). That may not seem like many but those 12 people have become strong and confident users of Cryptocurrency and one of them even accepts BitcoinCash for his business. My story does not end here, and with every day there is a change with some great, some good and some not so good stories. Keep your eyes out for updates to my never ending and exciting Crypto life.
How Did I Discover Cryptocurrency and Why I Choose BitcoinCash
One of the first questions always asked in the Crypto sphere is how did you learn about Bitcoin? Then followed up by which coin or coins do you hold? The answer to this first question is not as easy to answer as you would think. Right before the split between Bitcoin and BitcoinCash I met someone very involved in the community we were discussing how I became a libertarian which naturally lead us to a discussion about economic freedom, Ross Ulbricht and then Bitcoin. The following day I ran home and researched Silk Road and Ross Ulbricht. Five minutes later, I had signed the petition. My interest was piqued, I started to do my own research in regards to Bitcoin. I bought several books but all that did was confuse me more. I started watching YouTube videos and remember thinking to myself “who are these people” and “are they even speaking English” but I kept researching determined to learn about economic freedom, I just couldn’t grasp how someone could gain economic freedom with online money. Fast forward to the Bitcoin/BitcoinCash fork, I knew this was a big deal but I didn’t know what was going to happen. So I called my friend and set up another time to meet, well this time I was prepared I had my notes laid out from the books I had read and I was pretty proud of myself after all Bitcoin is not easy to understand with words like nodes, Raspberry Pi's (what does pie have to do with economic freedom), miners, QR's, checkpoints, lightning (still waiting) and why only 21 million and do I have to buy a full coin? I mean this list goes on (after all I am much older than the usual crypto enthusiast) little did I know I had already entered the rabbit hole and from the look I received from my friend he knew it. So after 2 days that was it, I needed to get my hands on Bitcoin. As soon as I got home I joined Coinbase and I saw a few coins listed and thought Bitcoin is really expensive and I can get 4 times the amount with this coin called Litecoin so I put in a buy order for that, Etherum and BitcoinCash. I had never been a huge fan of Social Media but at this time I decided I needed to join Twitter to see what others were experiencing and oh God what a jolt to the senses that was. Everyone tweeting why this and that coin is bad and this person is bad and that person is good, Crypto Twitter can be a shit show especially in the beginning and being new to both Twitter and Crypto my brain was in overload. I followed my friend on Twitter and just started to pay attention to him and basically began stalking his feed and Youtube channel but I never really engaged (I truly felt like a stalker). But I was learning my way around and who did what in their relative fields. As everyone knows Coinbase can be very frustrating because it seems like forever before you have access to your coins and the whole time I’m thinking what have I done? So a month went by and I finally received an email saying my funds are now available in Coinbase I opened up that app and to my surprise, my money had just quadrupled. I had learned while investing once you make back your initial investment sell that portion and that is exactly what I did! But the damage had been done I was hooked and immediately took that initial investment and bought every altcoin I could get my hands on via Binance, which can seriously do some damage to your wallet. I still really did not know what to do with Cryptocurrency, there were all these wallets, but why were they needed if all it did was sit there like digital gold. So I started to engage with people on Twitter to discover what others were doing, I didn’t have any followers so outside of a few likes here and there I would never really get any feedback. I asked my friend about this and he started to respond to me and soon after that, others started to respond to me, then I was included in threads and I had my first Crypto Twitter follower, he was no joke and little did I know at that time how much of an influence this person would have in my Twitter and Crypto life. But Crypto Twitter will have to be its own story. As I started to learn how to navigate my way through Crypto Twitter and began to understand the correct questions to ask I began to get the answers I needed. These questions amounted to where/who accepts crypto and why is this coin better than that coin? The people that came forward were the BitcoinCash community, I couldn’t understand why was it only the BitcoinCash people that would respond to me, after all, there are so many coins out there? But these were the people that had a passion for what they were doing and believed in that passion, from the CEO to the developers down to the end user. It was like a breath of fresh air to find people passionate about rewarding hard work and not caring about who you are and which country you are from along with giving back to communities that are far less fortunate by no fault of their own they just don’t have access to resources that are available to Western Nations, Europe, and Asia. I discovered the philanthropic work was incredible and still to this day I still am overwhelmed by how much the BitcoinCash community does and feel very fortunate to be a part of it. Downloading wallet after wallet, I discovered some were easy some were difficult and well some were just ridiculous. I started to tag random developers on Twitter and honestly was surprised when they responded to me and offered their help after all these are really busy people why would they take the time to help one person. The reason is simple they want Cryptocurrency to be a success and they understand how difficult it is, especially for an older person who just got her first smartphone 2 years earlier. After learning about the importance of 12-word seed phrases how a QR code works and legacy addresses I now felt comfortable enough to begin introducing people to cryptocurrency and more importantly BitcoinCash. Little did I know how difficult this would be, I mean who doesn’t want money even if it’s free. After months of interaction on Twitter and other platforms, I decided I needed to do something besides just talking about Crypto I needed to shout it from the rooftops. I desperately wanted to find others around me that I could share my experiences with so I created a Meetup in my area and began talking about it at work with my friends and family I just started telling everyone I ran into have you heard about BitcoinCash? “No” here let me show you” inevitably I started to hear oh that’s for drug dealers or it’s a scam. So now I thought how do I get past this obstacle that CNN and Fox News has put in front of me? I became more determined than ever to beat them at their own game. I had another hurdle to jump, so my path now came to what is an everyday product I can buy with Bitcoincash? Well, there are tons you just have to find them, and since my area of the country is about 10 years behind the rest of the country this was very difficult. But one thing I do a lot is travel and I was about to buy a plane ticket so I found CheapAir.com which accepts BitcoinCash, so I used that and discovered how easy it is, I can literally lay in bed find a flight and/or a hotel and right there without turning on the lights or getting up for my credit card number. What about overcoming only drug dealers use it (which my stepmom throws in my face almost every day) so for Christmas I purchased her some beauty products with BitcoinCash. I am constantly scouring the internet looking for more ways to spend Crypto instead of government-funded cash. My meetups started out with 2 people 1 of which was my dad to 12 strong and growing (which does not include my dad). That may not seem like many but those 12 people have become strong and confident users of Cryptocurrency and one of them even accepts BitcoinCash for his business. My story does not end here, and with every day there is a change with some great, some good and some not so good stories. Keep your eyes out for updates to my never ending and exciting Crypto life.
Thank you for being a part of the first ColossusXT Reddit AMA! Below we will summarize the questions and answers. We had 13 questions from the community, and responded to 13 questions from the community! The ColossusXT team will do a Reddit AMA at the end of every quarter. Q: What type of marketing plan are you guys looking to do in 2018? A: Paid ads, b2b partnerships, and in person representation at more blockchain conferences this year are all being negotiated. Suggestions can be made by the community here: https://colossusxt.fider.io/ Q: If I am correct, currently only the devs of COLX are being paid. I understand that the majority of people working on COLX are volunteers and I respect and appreciate that. However, when do you guys think you are going to hire paid full/part time employees/professionals? How will you guys make this happen? As in where are you going to get the funds for this? A: Currently the paid COLX employees are blockchain developers as they have a specific skill set that is difficult to acquire. In the future if the community feels that paid professionals are required in a specific job function, for example marketing, a budget proposal can be created and the community can pay for this from the colx governance system. Note, the governance system is not an endless bucket of money, so care needs to be taken to ensure the community is allocating these funds appropriately across all of the colx priorities. Q: When will Zerocoin protocol be released? A: Zerocoin Protocol will be released in Q2. Roadmap: https://colossuscoinxt.org/roadmap/ Q: Do you guys know when some COLX holders will get their coins back from Coinsmarkets? Also, where do you guys see COLX being used further down the road? A: Based on an internal COLX investigation, we believe that all of the coins have been moved off of CoinsMarkets and sold on other exchanges. We're currently partnered with Polis Pay which will alow fiat to crypto purchases through their Debt card platform. We're also working on partnerships with multiple different payment processors and merchants. Press Release:https://github.com/ColossusCoinXT/Documentation/blob/masteCM_PressRelease.pdf Forensic Statement:https://github.com/ColossusCoinXT/Documentation/blob/masteColossusXT_Forensic_Statement_on_CoinsMarkets_Exchange_Fraud.pdf Q: What separates colx from pivx, and other pivx forks? A: ColossusXT is a privacy based blockchain. The future of ColossusXT is expansive. It will be built on the expansion of the Colossus Grid, with a backbone of privacy features. You'll be able to rent or sell computing power from the network to perform or even just speed up tasks that your computer has trouble handling. This is ideal if you routinely perform intensive calculations for activities like natural language processing (NLP), artificial intelligence (AI), or even machine learning for DNA exploration. Example: You have 16GB of Ram, you rent 4GB for someone to use. Same with hard drive space, ect; ColossusXT anonymous blockchain will protect your privacy, while you rent computing power. This is the difference. Some privacy coins purpose is to be a private currency, ColossusXT aims to have a functioning anonymous currency, and Grid computing power utility. Q: What other exchanges are we trying to get on? What is the status? Thank you guys, I am really looking forward to this AMA! A: We cannot discolse which exchanges ColossusXT has currently applied to at this time. When we are able to make an announcement about an exchange listing we will post it on Twitter. Q: Why do I always mint orphan blocks? I know what an orphan is but the last 7 times I have staked and minted they have been orphans A: If a wallet is selected to generate the next new block (which will result in a staking reward) but does not complete this task in time, the new block will be orphaned and the task will be completed by another staking wallet. Thus, less responsive systems with a slower network connection and / or less available system resources will tend to generate more orphan blocks over time. If you have not updated to the latest wallet v1.0.3 you may see an increased number of Orphans. Orphan blocks are a normal occurrence on a blockchain. Q: Is the max supply of coins fixed at 12 billion or are there plans to increase supply on a need basis? Since one of the features of COLX is to enable a lower than 1:1 split with major fiat currencies(USD/EUR), i wonder how will this be managed in the scenario that the exchange rate goes up and up and up ? A: There is no max supply of COLX. Starting on April 28th, new COLX will be minted at a permanent rate of 1000 COLX per block, or 525,600,000 COLX per year, forever. As supply increases, these newly minted COLX will represent a smaller and smaller portion of the total supply. This means that the inflation rate will slowly decrease (asymptotically toward zero) over time. For example, next year the COLX supply will increase from 11.28B to 11.80B, an inflation rate of 4.7%. However, ten years later in 2029, the supply will increase from 16.53B to 17.06B, an inflation rate of 3.2%. While we have designed our supply and inflation rate toward a goal of easy comparison to major fiat currencies, it is impossible to predict how this will compare in the future. There are currently no plans to alter the COLX supply to match world currency trends. Q: Any additional informaton on the how the colx marketplace will work apart from what is mentioned in the whitepaper ? Reminds me of SilkRoad and we know what happened to that marketplace… A: The colx decentralized marketplace will work similar to other decentralized marketplace projects currently in development from other teams. There are no specifics to release at this time, but Silk Road is not a development goal. (Other projects, https://phore.io/marketplace/, https://www.syscoin.org/, https://soma.co/, https://www.openbazaar.org/ ) Q: How will ColX go about ensuring listings at the bigger exchanges. Is there a plan in place to reach the likes of bittrex and binance? A: Yes, ColossusXT has reached out to many different exchanges recently. We do not believe that Bittrex or Binance are exchanges out of this communities reach. Funding for large exchange listings will be generated from the community governance system. Q: Any thoughts on a rebrand at some point to something that rolls off the tongue better? Really not digging the name. A: We recently re-branded from ColossusCoinXT to ColossusXT. At this time there are no plans to rebrand any time soon, but we are looking at requests from the community and have found that Colossus is being recommended. What do you recommend? All community suggestions can be posted here to be voted on by the community; https://colossusxt.fider.io/ Q: Are you guys planning on making Master nodes cheaper? With Bitcoin, it doesn't cost as much as it does with altcoins. You can have a basic PC/laptop with 140GB of space and you're good to go to run a node. Masternode does few different things than a normal node, which is the following: Increasing privacy of transactions Doing instant transactions Participating in governance and voting Enable budgeting and treasury system in cryptos So if we can have cheaper Master Nodes that will increase the privacy of the transactions, there won't be any scalability issues in the long run and more people will participate with governing and voting. Which leads to more decentralized currency. Of course there should be a barrier with creating Master nodes so that nobody can cheat the system, but can we consider a lower entry barrier? What are your stance on this? Thanks! A: Cost for masternodes will not change. Implementing a safe shared masternode system is on the roadmap for development. Q: When are you going to start marketing.?....i think we have enough working product to market it.tech and marketing should go side by side.....what are your plans to keep the discord more active ? Shift from telegram to discord made the community bit lousy...not much interactions and activity as in telegram.(recruits from all the time zones is needed) A: Marketing has already started. The team recently attended the London CryptoCurrency Show. If there are specific marketing tactics that the community would like to employ they can be added and voted on here; https://colossusxt.fider.io/. With a working governance system in place the community can also create marketing proposals as part of the colx governance system. Note, the governance system is not an endless bucket of money, so care needs to be taken to ensure the community is allocating these funds appropriately across all of the colx priorities. Telegram is an awful platform for running a Community. We encourage all colx users to switch to Discord for more support and a better user experience. Discord: https://discord.gg/pJdvA Thank you for the questions! Originial AMA Questions:https://np.reddit.com/ColossuscoinX/comments/8bia7o/official_colossusxt_ama/ If you feel that you can contribute to this community please review our hiring form: https://goo.gl/PQeCm7 Website:http://colossusxt.io/ Whitepaper:https://colossuscoinxt.org/whitepape Roadmap:https://colossuscoinxt.org/roadmap/ Discord:https://discord.gg/UatyC Telegram:https://web.telegram.org/#/[email protected]
Hello! My name is Mihail Kudryashev, I am a frontend engineer at Platinum. We are a an international STO/IEO/ICO/POST ICO consulting, promotion and fundraising company with huge experience in STO and ICO marketing and best STO blockchain platform in the world! Learn more about it: Platinum.fund Our company gained popularity after launching the world’s number one online university with only practical knowledge on crypto economics. Now you can learn how to create and develop your own ICO and STO, how to market your campaign and make it super successful. Who are cryptocurrency investors? What drives people to invest in cryptocurrency? Read the extract of the UBAI lesson to get all the answers. Introduction to the Investors §2 In 2017, the total cryptocurrency market capitalization was approaching $850B which begs the question: Why are investors turning to cryptocurrencies? A survey by Blockchain Capital indicated that at least 30% of millennials would rather invest in bitcoin than invest in traditional stocks. Cryptocurrency investors, like traditional investors, expect a return at least proportionate to the risk they take. Due to the fundamental lack of regulation, incredible volatility and astronomical relative risk, many cryptocurrency investors expect to earn meteoric returns. Returns in the ranges of multiples from 200% to 1000%. Let us first begin by examining the kinds of people who invest in cryptocurrency, and then let’s see the reasons why each of them is investing in this relatively new market. Types of Investors The “Newbie” Cryptocurrency Investor This investor is just starting out. They probably have not had any significant experience in any form of investing before and bitcoin is their first experience. They have heard about people making incredible returns from cryptocurrency investing, or some aspect of the entire blockchain and crypto revolution attracts them, and they decide they want to invest too. Unfortunately, most of the newbie investors will end up losing their money, primarily because of one specific misconception; they think cryptocurrency investing is an easy way to make huge profits. “ “Types of Investors §2 “Gambler” or “Get Rich Quick” Investor This is the second class of cryptocurrency investor, and is actually not really an investor at all. This type of person is out to make a fortune as fast as possible. They will fall for whatever sweet-sounding scheme they hear. They love ideas that promise to double or triple their investment quickly. Like the Newbie, they do not understand how cryptocurrencies work, and they don’t care. The difference between this kind of investor and the successful individual or professional investor is that the gambler does not care about the management of risk, or about the timing of trades. They place their money on the table, and they hope it will make a good return. They are gambling rather than creating an investment thesis and executing a well-thought out strategy. They might even have an infectious positive attitude, but unfortunately it is not backed by knowledge or the due diligence required to be a successful investor. A good example of this style of thinking, outside of cryptocurrency, is high yield investment plans (HYIPs) that promise to multiply an investors capital by a certain factor. This is not to say that all HYIP programs are scams, but a good number of them are. Most importantly, the investors who flock into such plans have similar characteristics to that of the Get Rich Quick investor in that they will not take the time to learn about the field in which they are investing. They are just looking for fast money and an overnight success. “ “Types of Investors §3 Short Term Traders (Day/Swing Traders) Short term traders must, without a doubt, be the most knowledgeable investors if they are going to succeed at their chosen profession. They have, or they should have, studied the art and science of trading more thoroughly than other people. This is the kind of investor who has taken the time to learn about cryptocurrencies and the markets on which they trade. Short term traders create deliberate and timed strategies in an attempt to profit from fast market movements. Maybe many of the short term traders started off as Newbies, but these are the individuals who took the time and effort to learn about the market. They wanted to know what they were doing. These are the people who survived and thrived to grow into the type of trader that they want to be. Interestingly, the Day Trader does not attach emotion to any given coin. They do not need to believe in the sustainability/whitepapevision/road map, etc. of the project they are buying into at any particular time. They just need to be confident about the direction and timing of the potential price movement of the coin. “ “Types of Investors §4 Long Term Investors/ Hodlers A great majority of successful cryptocurrency investors can be most properly classified as Long Term Investors, or HODLers in true crypto terminology. These are investors who understand quite a bit about cryptocurrency and blockchain technology and believe in the sustainability of the coins in which they are investing. Think of the first few investors who bought bitcoin in the early days and years, when it was still deep under the radar for most people. These are the people who believed in the blockchain and cryptocurrency revolution. They didn’t sell their bitcoin for fast profit, although they had many chances to do so. They knew what they were doing, holding for the long term. These early investors and HODLers enjoyed astronomical growth all the way up to 2016 and 2017. But to be a long-term holder despite all the bad news and negative factors surrounding this brand new asset class, they must have really believed that bitcoin and the blockchain were going to change the world. This belief can only be established through study and research about the blockchain industry and the specific currencies and tokens in which you are going to invest. Follow up and learn more on www.ubai.co!” “Types of Investors §5 Sophisticated/Professional Investors These are experts in cryptocurrency investing. They most likely have a background in other forms of trading and investing, such as in stocks, bonds or options etc. They may also be earning fees by investing or managing money for other people. The Iconomi fund managers are a good example. Each Fund Manager manages an array of digital assets. Investors might choose Iconomi because it offers a platform for the investor to allocate funds to specific fund managers, with the ability to swap between managers instantly if the investor desires to do so. Each fund manager selects a number of coins in which they wish to trade or invest, with specified time horizons, short or long term. Investors can buy into the array of mutually held coins. This allows investors to utilize the knowledge and experience of professional fund managers to trade an allocated pool of capital, hopefully generating returns greater than the individual investor would be able to produce on his own. The fund managers are motivated by the fees and commissions they earn, and perhaps a performance-linked bonus. You can certainly be properly classified as a Sophisticated Investor without any need to be a fund manager for other peoples’ money. But a professional fund manager has the ability to trade with a larger pool of capital, manage complicated risk, and diversify trading strategy to generate various streams of income. “ “Between Countries A particular country’s participation in cryptocurrencies largely has to do with the legal regulations about blockchain projects and crypto currency investment in that jurisdiction. When China banned the use of cryptocurrency, most Chinese nationals had to withdraw their investments. Many other countries have also placed bans on the use or trade of cryptocurrencies. Countries like Japan that have allowed the use of cryptocurrencies have witnessed a significant rise in cryptocurrency investments as a result. Japan and South Korea are home to several high-traffic cryptocurrency exchanges, meaning that a notable proportion of their population is investing in cryptocurrencies. Another way to look at cryptocurrency investment demographics is to look at the bitcoin ATMs present in each country. The United States of America is the leading country, followed by Canada and then the United Kingdom. According to a report by Google trends, the five top countries interested in bitcoin are: South Africa, Slovenia, Nigeria, Colombia and Bolivia. Remember, cryptocurrency demographics can be a little tricky due to the anonymity involved. Many people may be afraid to participate in surveys, especially when their governments have placed legal restrictions on cryptocurrency investing. The main point the research seems to validate is that the demographics of the cryptocurrency investor base is diverse. While the average investor may be a white or Asian male between the ages of 26-30 with at least a university degree, the entire investor base is so much larger than that. Many big investors are likely to be significantly older, and have connections and businesses in the traditional economy as well. “ “Notable Investors in Cryptocurrency While many people have made fortunes from cryptocurrency investing, a handful of them stand out as being particularly remarkable. We will take a more detailed look at some of the biggest investment success stories to see how they did it and learn about their investing strategy. The Winklevoss Twins After being awarded their settlement from the lawsuit against Facebook, the Winklevoss twins decided to invest a significant portion of their money in Bitcoin. They invested $11million of the $65million they received. At that time, the price of a single bitcoin was about $120. This high-risk investment paid off handsomely and they became the first publicly known Bitcoin Billionaires, perhaps owning more than 1% of the total bitcoin in circulation. In an interview with Financial Times in 2016, the twins jointly said that they consider “Bitcoin as potentially the greatest social network because it is designed to transfer value over the internet”. They also pointed out that compared to gold, bitcoin has equal or greater foundational traits of scarcity and portability. “ “Notable Investors in Cryptocurrency §2 Michael Novogratz A self-made billionaire ex-Goldman Sachs investment banker, Novogratz has invested more than 30% of his fortune in cryptocurrency. In 2015, he announced a $500million cryptocurrency hedge fund, including $150million of his own money. Novogratz believes that “the blockchain, the computer code that underpins all cryptocurrencies, will reshape finance, just as the internet reshaped communication”. The investment thesis of Mr. Novogratz is similar to that of the Winklevoss twins. He has taken and maintains a long-term position while he trades in and out of short term moves, based on his fundamental belief in the potential and likely application of the underlying blockchain technology. By starting an investment fund in addition to his other cryptocurrency related ventures, he is demonstrating a strong fundamental grasp of the technology, including its applicability and impact across so many industries. Slide Barry Silbert In December 2014 after the US Marshal’s office seized 50,000 bitcoins from the Silk Road, Barry Silbert purchased just 2,000 of those bitcoins at $350 per coin. A few years later of course, those coins were worth millions of dollars. Barry is the founder and CEO of the Digital Currency Group (DCG) a cryptocurrency investment firm. Barry also made significant profits from Ethereum Classic, purchasing the coin in its very first days. He has invested in over 75 bitcoin related companies, including CoinDesk. As founder of the Digital Currency Group, Barry endeavors to support bitcoin and blockchain companies and accelerate the development of the global financial system. “ “Directly through Exchanges Step One: Register on a reputable cryptocurrency exchange To start investing, you first need to register on a reputable cryptocurrency exchange where you can buy bitcoin and other cryptocurrencies. Binance is a good exchange to use in this lesson. While it may or may not be the best, it is currently the largest, and they provide a very supportive layout and customer service department. You should remember, to buy most altcoins (cryptocurrencies other than bitcoin), you specifically need to use an exchange like Coinbase or Kraken that allows you to convert fiat currency into cryptocurrency. From there, if you want to trade altcoins not listed on that exchange, you will have to transfer your BTC or ETH to a larger exchange like Binance, and buy the altcoin you want, using whichever trading pair that is best suited (BTC and ETH pairs are most common). As we have already explained, if you are buying Bitcoin or any cryptocurrencies, you should invest in a wallet to safely store your coins. It is not advisable to store your BTC or other crypto on the exchanges for too long, due to hacking and other risks. “ “Directly through Exchanges Step Two: Determine your Strategy There are different ways to invest. You need to find a strategy that works for you and your specific set of skills. The value of a cryptocurrency is not defined by a formula or something out a textbook. If everyone was able to calculate the actual value of a share of stock, for example, or a bond, or other tradeable asset, then the price on an open market exchange would never move. Buyers and sellers would know exactly how much the asset is worth, so there would be no reason to sell lower or buy higher than the actual value. You need to come up with your own ideas and strategies to take advantage of market moves. Sometimes you will have a position that is contrary to the general market. Other times you might be trading in agreement with a majority of other market participants. Investors are basically separable into one of two groups of thinkers. Contrarian investors go against the crowd, swimming against the current; Momentum investors ride the wave feeling secure in the majority. Being different can be good or it can be bad. You do not always want to necessarily get caught up in the most crowded trade. “ “Things to keep in Mind Bitcoin Futures We need to mention the bitcoin futures market as another potential way to invest. Toward the close of 2017, Bitcoin started trading on two fully recognized and well-established futures markets; the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile Exchange CME. The key quote from the exchanges was “because the futures can be traded on regulated markets, it will attract investors, making the market liquid, stabilizing prices and it will not suffer from low transaction speeds of Bitcoin Exchanges.” For a risk averse investor, this offers a safer entry into cryptocurrency investing. A futures contract commits its owner to buy or sell the underlying asset, BTC, at a set price, and at a set date in the future. The investor in the futures contract does not actually own the underlying asset, but rather is trading on fluctuations in the price of the asset over a certain timeframe, as specified in the futures contract. “ “Things to keep in Mind §2 Common Pitfalls We cannot conclude this lesson without one more look at the common pitfalls a new cryptocurrency investor should avoid. The problem areas are: -Falling for scams by failing to carry out due diligence. -Relying solely upon self-acclaimed crypto gurus and experts. If you want to trade, you must understand how to read news and charts for yourself. -Too much Greed. Not taking profit when you should. It is better to take a 20% gain, than wait for a 100% gain, only to lose it all in the end. -Lacking an investment strategy or exit plan. -Not sticking to your investment plan or strategy. -Allowing emotions to rule your decisions. Chasing your losses. -Investing what you cannot afford to lose. And finally, some time-tested wisdom from Wall Street: Bulls make money. Bears make money. Pigs get slaughtered every time. (Don’t be greedy!) We cannot overemphasize the risk involved in cryptocurrency investing. The potential to make huge gains over a short period of time does not come without risk. There is no doubt that significant players in the global financial markets are entering the cryptocurrency markets too. We are likely to witness more and more government authorities trying to regulate cryptocurrencies, hopefully to the overall benefit of a healthy market. It seems safe to say we will see cryptocurrencies become more mainstream due to the intense interest from the traditional financial industry and institutional investing community all over the world. What are better ways to successfully invest in cryptocurrencies? Which pitfalls should you avoid? Learn all on successful ICOs and STOs after reading the full lesson: UBAI.co How to start your STO/ICO campaign in 2019? 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Hello! My name is Slava Mikhalkin, I am a Project Owner of Crowdsale platform at Platinum, the company that knows how to start any ICO or STO in 2019. If you want to avoid headaches with launching process, we can help you with ICO and STO advertising and promotion. See the full list of our services: Platinum.fund I am also happy to be a part of the UBAI, the first educational institution providing the most effective online education on blockchain! We can teach you how to do ICO/STO in 2019. Today I want to tell you how to sell and transfer cryptocurrencies. Major Exchanges In finance, an exchange is a forum or platform for trading commodities, derivatives, securities or other financial instruments. The principle concern of an exchange is to allow trading between parties to take place in a fair and legally compliant manner, as well as to ensure that pricing information for any instrument traded on the exchange is reliable and coherently delivered to exchange participants. In the cryptocurrency space exchanges are online platforms that allow users to trade cryptocurrencies or digital currencies for fiat money or other cryptocurrencies. They can be centralized exchanges such a Binance, or decentralized exchanges such as IDEX. Most cryptocurrency exchanges allow users to trade different crypto assets with BTC or ETH after having already exchanged fiat currency for one of those cryptocurrencies. Coinbase and Kraken are the main avenue for fiat money to enter into the cryptocurrency ecosystem. Function and History Crypto exchanges can be market-makers that take bid/ask spreads as a commission on the transaction for facilitating the trade, or more often charge a small percentage fee for operating the forum in which the trade was made. Most crypto exchanges operate outside of Western countries, enabling them to avoid stringent financial regulations and the potential for costly and lengthy legal proceedings. These entities will often maintain bank accounts in multiple jurisdictions, allowing the exchange to accept fiat currency and process transactions from customers all over the globe. The concept of a digital asset exchange has been around since the late 2000s and the following initial attempts at running digital asset exchanges foreshadows the trouble involved in attempting to disrupt the operation of the fiat currency baking system. The trading of digital or electronic assets predate Bitcoin’s creation by several years, with the first electronic trading entities running afoul of the Australian Securities and Investments Commission (ASIC) in late 2004. Companies such as Goldex, SydneyGoldSales, and Ozzigold, shut down voluntarily after ASIC found that they were operating without an Australian Financial Services License. E-Gold, which exchanged fiat USD for grams of precious metals in digital form, was possibly the first digital currency exchange as we know it, allowing users to make instant transfers to the accounts of other E-Gold members. At its peak in 2006 E-Gold processed $2 billion worth of transactions and boasted a user base of over 5 million people. Popular Exchanges Here we will give a brief overview of the features and operational history of the more popular and higher volume exchanges because these are the platforms to which newer traders will be exposed. These exchanges are recommended to use because they are the industry standard and they inspire the most confidence. Bitfinex Owned and operated by iFinex Inc, the cryptocurrency trading platform Bitfinex was the largest Bitcoin exchange on the planet until late 2017. Headquartered in Hong Kong and based in the US Virgin Island, Bitfinex was one of the first exchanges to offer leveraged trading (“Margin trading allows a trader to open a position with leverage. For example — we opened a margin position with 2X leverage. Our base assets had increased by 10%. Our position yielded 20% because of the 2X leverage. Standard trades are traded with leverage of 1:1”) and also pioneered the use of the somewhat controversial, so-called “stable coin” Tether (USDT). Binance Binance is an international multi-language cryptocurrency exchange that rose from the mid-rank of cryptocurrency exchanges to become the market dominating behemoth we see today. At the height of the late 2017/early 2018 bull run, Binance was adding around 2 million new users per week! The exchange had to temporarily disallow new registrations because its servers simply could not keep up with that volume of business. After the temporary ban on new users was lifted the exchange added 240,000 new accounts within two hours. Have you ever thought whats the role of the cypto exchanges? The answer is simple! There are several different types of exchanges that cater to different needs within the ecosystem, but their functions can be described by one or more of the following: To allow users to convert fiat currency into cryptocurrency. To trade BTC or ETH for alt coins. To facilitate the setting of prices for all crypto assets through an auction market mechanism. Simply put, you can either mine cryptocurrencies or purchase them, and seeing as the mining process requires the purchase of expensive mining equipment, Cryptocurrency exchanges can be loosely grouped into one of the 3 following exchange types, each with a slightly different role or combination of roles. Have you ever thought about what are the types of Crypto exchanges?
Traditional Cryptocurrency Exchange: These are the type that most closely mimic traditional stock exchanges where buyers and sellers trade at the current market price of whichever asset they want, with the exchange acting as the intermediary and charging a small fee for facilitating the trade. Kraken and GDAX are examples of this kind of cryptocurrency exchange. Fully peer-to-peer exchanges that operate without a middleman include EtherDelta, and IDEX, which are also examples of decentralized exchanges.
Cryptocurrency Brokers: These are website or app based exchanges that act like a Travelex or other bureau-de-change. They allow customers to buy or sell crypto assets at a price set by the broker (usually market price plus a small premium). Coinbase is an example of this kind of exchange.
Direct Trading Platform: These platforms offer direct peer-to-peer trading between buyers and sellers, but don’t use an exchange platform in doing so. These types of exchanges do not use a set market rate; rather, sellers set their own rates. This is a highly risky form of trading, from which new users should shy away.
To understand how an exchange functions we need only look as far as a traditional stock exchange. Most all the features of a cryptocurrency exchange are analogous to features of trading on a traditional stock exchange. In the simplest terms, the exchanges fulfil their role as the main marketplace for crypto assets of all kinds by catering to buyers or sellers. These are some definitions for the basic functions and features to know: Market Orders: Orders that are executed instantly at the current market price. Limit Order: This is an order that will only be executed if and when the price has risen to or dropped to that price specified by the trader and is also within the specified period of time. Transaction fees: Exchanges will charge transactions fees, usually levied on both the buyer and the seller, but sometimes only the seller is charged a fee. Fees vary on different exchanges though the norm is usually below 0.75%. Transfer charges: The exchange is in effect acting as a sort of escrow agent, to ensure there is no foul play, so it might also charge a small fee when you want to withdraw cryptocurrency to your own wallet. Regulatory Environment and Evolution Cryptocurrency has come a long way since the closing down of the Silk Road darknet market. The idea of crypto currency being primarily for criminals, has largely been seen as totally inaccurate and outdated. In this section we focus on the developing regulations surrounding the cryptocurrency asset class by region, and we also look at what the future may hold. The United States of America A coherent uniform approach at Federal or State level has yet to be implemented in the United States. The Financial Crimes Enforcement Network published guidelines as early as 2013 suggesting that BTC and other cryptos may fall under the label of “money transmitters” and thus would be required to take part in the same Anti-money Laundering (AML) and Know your Client (KYC) procedures as other money service businesses. At the state level, Texas applies its existing finance laws. And New York has instituted an entirely new licensing system. The European Union The EU’s approach to cryptocurrency has generally been far more accommodating overall than the United States, partly due to the adaptable nature of pre-existing laws governing electronic money that predated the creation of Bitcoin. As with the USA, the EU’s main fear is money laundering and criminality. The European Central Bank (ECB) categorized BTC as a “convertible decentralized currency” and advised all central banks in the EU to refrain from trading any cryptocurrencies until the proper regulatory framework was put in place. A task force was then set up by the European Parliament in order to prevent and investigate any potential money laundering that was making use of the new technology. Likely future regulations for cryptocurrency traders within the European Union and North America will probably consist of the following proposals: The initiation of full KYC procedures so that users cannot remain fully anonymous, in order to prevent tax evasion and curtail money laundering. Caps on payments that can be made in cryptocurrency, similar to caps on traditional cash transactions. A set of rules governing tax obligations regarding cryptocurrencies Regulation by the ECB of any companies that offer exchanges between cryptocurrencies and fiat currencies It is less likely for other countries to follow the Chinese approach and completely ban certain aspects of cryptocurrency trading. It is widely considered more progressive and wiser to allow the technology to grow within a balanced accommodative regulatory framework that takes all interests and factors into consideration. It is probable that the most severe form of regulation will be the formation of new governmental bodies specifically to form laws and exercise regulatory control over the cryptocurrency space. But perhaps that is easier said than done. It may, in certain cases, be incredibly difficult to implement particular regulations due to the anonymous and decentralized nature of crypto. Behavior of Cryptocurrency Investors by Demographic Due to the fact that cryptocurrency has its roots firmly planted in the cryptography community, the vast majority of early adopters are representative of that group. In this section we cover the basic structure of the cryptocurrency market cycle and the makeup of the community at large, as well as the reasons behind different trading decisions. The Cryptocurrency Market Cycle Bitcoin leads the bull rally. FOMO (Fear of missing out) occurs, the price surge is a constant topic of mainstream news, business programs cover the story, and social media is abuzz with cryptocurrency chatter. Bitcoin reaches new All Timehigh (ATH) Market euphoria is fueled with even more hype and the cycle is in full force. There is a constant stream of news articles and commentary on the meteoric, seemingly unstoppable rise of Bitcoin. Bitcoin’s price “stabilizes”, In the 2017 bull run this was at or around $14,000. A number of solid, large market cap altcoins rise along with Bitcoin; ETH & LTC leading the altcoins at this time. FOMO comes into play, as the new ATH in market cap is reached by pumping of a huge number of alt coins. Top altcoins “somewhat” stabilize, after reaching new all-time highs. The frenzy continues with crypto success stories, notable figures and famous people in the news. A majority of lesser known cryptocurrencies follow along on the upward momentum. Newcomers are drawn deeper into crypto and sign up for exchanges other than the main entry points like Coinbase and Kraken. In 2017 this saw Binance inundated with new registrations. Some of the cheapest coins are subject to massive pumping, such as Tron TRX which saw a rise in market cap from $150 million at the start of December 2017 to a peak of $16 billion! At this stage, even dead coins or known scams will get pumped. The price of the majority of cryptocurrencies stabilize, and some begin to retract. When the hype is subsiding after a huge crypto bull run, it is a massive sell signal. Traditional investors will begin to give interviews about how people need to be careful putting money into such a highly volatile asset class. Massive violent correction begins and the market starts to collapse. BTC begins to fall consistently on a daily basis, wiping out the insane gains of many medium to small cap cryptos with it. Panic selling sweeps through the market. Depression sets in, both in the markets, and in the minds of individual investors who failed to take profits, or heed the signs of imminent collapse. The price stagnation can last for months, or even years. The Influence of Age upon Trading Did you know? Cryptocurrencies have been called “stocks for millennials” According to a survey conducted by the Global Blockchain Business Council, only 5% of the American public own any bitcoin, but of those that do, an overwhelming majority of 71% are men, 58% of them are between the ages of 18 and 35, and over half of them are minorities. The same survey gauged public attitude toward the high risk/high return nature of cryptocurrency, in comparison to more secure guaranteed small percentage gains offered by government bonds or stocks, and found that 30% would rather invest $1,000 in crypto. Over 42% of millennials were aware of cryptocurrencies as opposed to only 15% of those ages 65 and over. In George M. Korniotis and Alok Kumar’s study into the effects of aging on portfolio management and the quality of decisions made by older investors, they found “that older and experienced investors are more likely to follow “rules of thumb” that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated and earn lower income.” Geographic Influence upon Trading One of the main drivers of the apparent seasonal ebb and flow of cryptocurrency prices is the tax situation in the various territories that have the highest concentrations of cryptocurrency holders. Every year we see an overall market pull back beginning in mid to late January, with a recovery beginning usually after April. This is because “Tax Season” is roughly the same across Europe and the United States, with the deadline for Income tax returns being April 15th in the United States, and the tax year officially ending the UK on the 6th of April. All capital gains must be declared before the window closes or an American trader will face the powerful and long arm of the IRS with the consequent legal proceedings and possible jail time. Capital gains taxes around the world vary from jurisdiction to jurisdiction but there are often incentives for cryptocurrency holders to refrain from trading for over a year to qualify their profits as long term gain when they finally sell. In the US and Australia, for example, capital gains are reduced if you bought cryptocurrency for investment purposes and held it for over a year. In Germany if crypto assets are held for over a year then the gains derived from their sale are not taxed. Advantages like this apply to individual tax returns, on a case by case basis, and it is up to the investor to keep up to date with the tax codes of the territory in which they reside. 2013 Bull run vs 2017 Bull run price Analysis In late 2016 cryptocurrency traders were faced with the task of distinguishing between the beginnings of a genuine bull run and what might colorfully be called a “dead cat bounce” (in traditional market terminology). Stagnation had gripped the market since the pull-back of early 2014. The meteoric rise of Bitcoin’s price in 2013 peaked with a price of $1,100 in November 2013, after a year of fantastic news on the adoption front with both Microsoft and PayPal offering BTC payment options. It is easy to look at a line going up on a chart and speak after the fact, but at the time, it is exceeding difficult to say whether the cat is actually climbing up the wall, or just bouncing off the ground. Here, we will discuss the factors that gave savvy investors clues as to why the 2017 bull run was going to outstrip the 2013 rally. Hopefully this will help give insight into how to differentiate between the signs of a small price increase and the start of a full scale bull run. Most importantly, Volume was far higher in 2017. As we can see in the graphic below, the 2017 volume far exceeds the volume of BTC trading during the 2013 price increase. The stranglehold MtGox held on trading made a huge bull run very difficult and unlikely. Fraud & Immoral Activity in the Private Market Ponzi Schemes Cryptocurrency Ponzi schemes will be covered in greater detail in Lesson 7, but we need to get a quick overview of the main features of Ponzi schemes and how to spot them at this point in our discussion. Here are some key indicators of a Ponzi scheme, both in cryptocurrencies and traditional investments: A guaranteed promise of high returns with little risk. Consistentflow of returns regardless of market conditions. Investments that have not been registered with the Securities and Exchange Commission (SEC). Investment strategies that are a secret, or described as too complex. Clients not allowed to view official paperwork for their investment. Clients have difficulties trying to get their money back. The initial members of the scheme, most likely unbeknownst to the later investors, are paid their “dividends” or “profits” with new investor cash. The most famous modern-day example of a Ponzi scheme in the traditional world, is Bernie Madoff’s $100 billion fraudulent enterprise, officially titled Bernard L. Madoff Investment Securities LLC. And in the crypto world, BitConnect is the most infamous case of an entirely fraudulent project which boasted a market cap of $2 billion at its peak. What are the Exchange Hacks? The history of cryptocurrency is littered with examples of hacked exchanges, some of them so severe that the operation had to be wound up forever. As we have already discussed, incredibly tech savvy and intelligent computer hackers led by Alexander Vinnik stole 850000 BTC from the MtGox exchange over a period from 2012–2014 resulting in the collapse of the exchange and a near-crippling hammer blow to the emerging asset class that is still being felt to this day. The BitGrail exchange suffered a similar style of attack in late 2017 and early 2018, in which Nano (XRB) was stolen that was at one point was worth almost $195 million. Even Bitfinex, one of the most famous and prestigious exchanges, has suffered a hack in 2016 where $72 million worth of BTC was stolen directly from customer accounts. Hardware Wallet Scam Case Study In late 2017, an unfortunate character on Reddit, going by the name of “moody rocket” relayed his story of an intricate scam in which his newly acquired hardware wallet was compromised, and his $34,000 life savings were stolen. He bought a second hand Nano ledger into which the scammers own recover seed had already been inserted. He began using the ledger without knowing that the default seed being used was not a randomly assigned seed. After a few weeks the scammer struck, and withdrew all the poor HODLer’s XRP, Dash and Litecoin into their own wallet (likely through a few intermediary wallets to lessen the very slim chances of being identified). Hardware Wallet Scam Case Study Social Media Fraud Many gullible and hapless twitter users have fallen victim to the recent phenomenon of scammers using a combination of convincing fake celebrity twitter profiles and numerous amounts of bots to swindle them of ETH or BTC. The scammers would set up a profile with a near identical handle to a famous figure in the tech sphere, such as Vitalik Buterin or Elon Musk. And then in the tweet, immediately following a genuine message, follow up with a variation of “Bonus give away for the next 100 lucky people, send me 0.1 ETH and I will send you 1 ETH back”, followed by the scammers ether wallet address. The next 20 or so responses will be so-called sockpuppet bots, thanking the fake account for their generosity. Thus, the pot is baited and the scammers can expect to receive potentially hundreds of donations of 0.1 Ether into their wallet. Many twitter users with a large follower base such as Vitalik Buterin have taken to adding “Not giving away ETH” to their username to save careless users from being scammed. Market Manipulation It also must be recognized that market manipulation is taking place in cryptocurrency. For those with the financial means i.e. whales, there are many ways in which to control the market in a totally immoral and underhanded way for your own profit. It is especially easy to manipulate cryptos that have a very low trading volume. The manipulator places large buy orders or sell walls to discourage price action in one way or the other. Insider trading is also a significant problem in cryptocurrency, as we saw with the example of blatant insider trading when Bitcoin Cash was listed on Coinbase. Examples of ICO Fraudulent Company Behavior In the past 2 years an astronomical amount of money has been lost in fraudulent Initial Coin Offerings. The utmost care and attention must be employed before you invest. We will cover this area in greater detail with a whole lesson devoted to the topic. However, at this point, it is useful to look at the main instances of ICO fraud. Among recent instances of fraudulent ICOs resulting in exit scams, 2 of the most infamous are the Benebit and PlexCoin ICOs which raised $4 million for the former and $15 million for the latter. Perhaps the most brazen and damaging ICO scam of all time was the Vietnamese Pincoin ICO operation, where $660million was raised from 32,000 investors before the scammer disappeared with the funds. In case of smaller ICO “exit scamming” there is usually zero chance of the scammers being found. Investors must just take the hit. We will cover these as well as others in Lesson 7 “Scam Projects”. Signposts of Fraudulent Actors The following factors are considered red flags when investigating a certain project or ICO, and all of them should be considered when deciding whether or not you want to invest. Whitepaper is a buzzword Salad: If the whitepaper is nothing more than a collection of buzzwords with little clarity of purpose and not much discussion of the tech involved, it is overwhelmingly likely you are reading a scam whitepaper. Signposts of Fraudulent Actors §2 No Code Repository: With the vast majority of cryptocurrency projects employing open source code, your due diligence investigation should start at GitHub or Sourceforge. If the project has no entries, or nothing but cloned code, you should avoid it at all costs. Anonymous Team: If the team members are hard to find, or if you see they are exaggerating or lying about their experience, you should steer clear. And do not forget, in addition to taking proper precautions when investing in ICOs, you must always make sure that you are visiting authentic web pages, especially for web wallets. If, for example, you are on a spoof MyEtherWallet web page you could divulge your private key without realizing it and have your entire portfolio of Ether and ERC-20 tokens cleaned out. Methods to Avoid falling Victim Avoiding scammers and the traps they set for you is all about asking yourself the right questions, starting with: Is there a need for a Blockchain solution for the particular problem that a particular ICO is attempting to solve? The existing solution may be less costly, less time consuming, and more effective than the proposals of a team attempting to fill up their soft cap in an ICO. The following quote from Mihai Ivascu, the CEO of Modex, should be kept in mind every time you are grading an ICO’s chances of success: “I’m pretty sure that 95% of ICOswill not last, and many will go bankrupt. ….. not everything needs to be decentralized and put on an open source ledger.” Methods to Avoid falling Victim §2 Do I Trust These People with My Money, or Not? If you continue to feel uneasy about investing in the project, more due diligence is needed. The developers must be qualified and competent enough to complete the objectives that they have set out in the whitepaper. Is this too good to be true? All victims of the well-known social media scams using fake profiles of Vitalik Buterin, or Bitconnect investors for that matter, should have asked themselves this simple question, and their investment would have been saved. In the case of Bitconnect, huge guaranteed gains proportional to the amount of people you can get to sign up was a blatant pyramid scheme, obviously too good to be true. The same goes for Fake Vitalik’s offer of 1 ether in exchange for 0.1 ETH. Selling Cryptocurrencies, Several reasons for selling with the appropriate actions to take: If you are selling to buy into an ICO, or maybe believe Ether is a safer currency to hold for a certain period of time, it is likely you will want to make use of the Ether pair and receive Ether in return. Obviously if the ICO is on the NEO or WANchain blockchain for example, you will use the appropriate pair. -Trading to buy into another promising project that is listing on the exchange on which you are selling (or you think the exchange will experience a large amount of volume and become a larger exchange), you may want to trade your cryptocurrency for that exchange token. -If you believe that BTC stands a good chance of experiencing a bull run then using the BTC trading pair is the suitable choice. -If you believe that the market is about to experience a correction but you do not want to take your gains out of the market yet, selling for Tether or “tethering up” is the best play. This allows you to keep your locked-in profits on the exchange, unaffected by the price movements in the cryptocurrency markets,so that you can buy back in at the most profitable moment. -If you wish to “cash out” i.e. sell your cryptocurrency for fiat currency and have those funds in your bank account, the best pair to use is ETH or BTC because you will likely have to transfer to an exchange like Kraken or Coinbase to convert them into fiat. If the exchange offers Litecoin or Bitcoin Cash pairs it could be a good idea to use these for their fast transaction time and low fees. Selling Cryptocurrencies Knowing when and how to sell, as well as strategies to inflate the value of your trade before sale, are important skills as a trader of any product or financial instrument. If you are satisfied that the sale itself of the particular amount of a token or coin you are trading away is the right one, then you must decide at what price you are going to sell. Exchanges exercise their own discretion as to which trading “pairs” they will offer, but the most common ones are BTC, ETH, BNB for Binance, BIX for Bibox etc., and sometimes Tether (USDT) or NEO. As a trader, you decide which particular cryptocurrency to exchange depending on your reason for making that specific trade at that time. Methods of Sale Market sell/Limit sell on exchange: A limit sell is an order placed on an exchange to sell as soon as (also specifically only if and when) the price you specified has been hit within the time limit you select. A market order executes the sale immediately at the best possible price offered by the market at that exact time. OTC (or Over the Counter) selling refers to sale of securities or cryptocurrencies in any method without using an exchange to intermediate the trade and set the price. The most common way of conducting sales in this manner is through LocalBitcoins.com. This method of cryptocurrency selling is far riskier than using an exchange, for obvious reasons. The influence and value of your Trade There are a number of strategies you can use to appreciate the value of your trade and thus increase the Bitcoin or Ether value of your portfolio. It is important to disassociate yourself from the dollar value of your portfolio early on in your cryptocurrency trading career simply because the crypto market is so volatile you will end up pulling your hair out in frustration following the real dollar money value of your holdings. Once your funds have been converted into BTC and ETH they are completely in the crypto sphere. (Some crypto investors find it more appropriate to monitor the value of their portfolio in satoshi or gwei.) Certainly not limited to, but especially good for beginners, the most reliable way to increase your trading profits, and thus the overall value and health of your portfolio, is to buy into promising projects, hold them for 6 months to a year, and then reevaluate. This is called Long term holding and is the tactic that served Bitcoin HODLers quite well, from 2013 to the present day. Obviously, if something comes to light about the project that indicates a lengthy set back is likely, it is often better to cut your losses and sell. You are better off starting over and researching other projects. Also, you should set initial Price Points at which you first take out your original investment, and then later, at which you take out all your profits and exit the project. That should be after you believe the potential for growth has been exhausted for that particular project. Another method of increasing the value of your trades is ICO flipping. This is the exact opposite of long term holding. This is a technique in which you aim for fast profits taking advantage of initial enthusiasm in the market that may double or triple the value of ICO projects when they first come to market. This method requires some experience using smaller exchanges like IDEX, on which project tokens can be bought and sold before listing on mainstream exchanges. “Tethering up” means to exchange tokens or coins for the USDT stable coin, the value of which is tethered to the US Dollar. If you learn, or know how to use, technical analysis, it is possible to predict when a market retreatment is likely by looking at the price movements of BTC. If you decide a market pull back is likely, you can tether up and maintain the dollar value of your portfolio in tether while other tokens and coins decrease in value. The you wait for an opportune moment to reenter the market. Market Behavior in Different Time Periods The main descriptors used for overall market sentiment are “Bull Market” and “Bear Market”. The former describes a market where people are buying on optimism. The latter describes a market where people are selling on pessimism. Fun (or maybe not) fact: The California grizzly bear was brought to extinction by the love of bear baiting as a sport in the mid 1800s. Bears were highly sought after for their intrinsic fighting qualities, and were forced into fighting bulls as Sunday morning entertainment for Californians. What has this got to do with trading and financial markets? The downward swipe of the bear’s paws gives a “Bear market” its name and the upward thrust of a Bull’s horns give the “Bull Market” its name. Most unfortunately for traders, the bear won over 80% of the bouts. During a Bull market, optimism can sometimes grow to be seemingly boundless, volume is rising, and prices are ascending. It can be a good idea to sell or rebalance your portfolio at such a time, especially if you have a particularly large position in one holding or another. This is especially applicable if you need to sell a large amount of a relatively low-volume holding, because you can then do so without dragging the price down by the large size of your own sell order. Learn more on common behavioral patterns observed so far in the cryptocurrency space for different coins and ICO tokens. Follow the link: UBAI.co If you want to know how do security tokens work, and become a professional in crypto world contact me via Facebook to get all the details: Facebook
Bitcoin: Breaking All the Rules: Idiocracy: Sad vs. Happy Ending?: To Be Continued
4 years ago my girlfriend and I were trekking through Costa Rica, listening to a podcast about the silk road and a dark web. It was such a great listen and the content was something right out of a science fiction novel. Hackers, drug and arms dealers, digital rebels. The podcast went on to talk about how they used a digital currency. They talked about how it didn't have a bank, but rather it had kiosks that you could use to purchase these Bitcoins. In my imagination, they put money into an atm and out popped a gold coin that proved they owned that digital currency, silly. Who would have thought this podcast was revealing an asset with the potential to turn rags to riches?! I just wasn't able to wrap my head around what was happening then. In my defense I was pleasantly distracted on an adventure in Costa Rica! I couldn't put the pieces together, the internet and currency were uniting under a blanket of anonymity. Must have been too busy looking for Toucans and Scarlet Macaws. I've never been one to invest, never had the savings. Rough past and not a lot of income. Never smart with money. I was only able to go to Costa Rica because of a tiny inheritance from my grandmother passing away. If only I had spent the rest ($5,000) on those Bitcoin thingies! I went about my life occasionally hearing about Bitcoin and I would always remember that podcast. Had I just opened up Google and followed up more, fuckin hindsight... Years go by and i hear how Bitcoin suffered some big losses here and there but I kept my distance. This brings us to January 2017... Money is extremely tight as always and we've started taking on credit card debt with daily expenses and things are adding up. One day I'm in the men's library (shitter) and I read headlines saying Bitcoin is making a monster run. I decide then and there that I won't let this opportunity pass me by, "it's time to get ahead" says an internal voice. "But, you have no nest egg" says another. I didn't know what FOMO was at the time, but this was the ultimate case. I threw caution to the wind and went in hard towards a dream of financial freedom. It's as if the stars were going to align and I would finally catch a break. I took out a loan for 10k and stocked my digital wallet. Now I just needed to sit back and watch this thing continue to run. Financial freedom, here we come!!! News Flash: South Korea is looking to ban cryptocurrency trading India announces they are going to crack down South Korea not banning cryptocurrency but no longer anonymous trading Bitfinex/Tether subpoena Coins being stolen by the millions US to discuss cryptocurrency regulations China bans citizens from foreign exchanges Binance "hacked" Mt Gox trustee dumping hundreds of thousands of coins on the open market Market manipulation Bitcoin is a bubble I mean talk about a cluster fuck the moment I entered the trade! I feel like I bought tickets to Bitcoin's show and the asshole said peace and dropped the mic. This was one of the worst decisions I've ever made, and I've done a lot of dumb shit in my life. Taking out credit on an investment?! Brilliant! I made the biggest mistake in the book (one I had clearly never read) which is don't put in what you're not willing to lose. I've read a lot of posts from veterans on Reddit who paint the perfect picture of my portrait "The Idiot Rookie and the Bitcoin" it's a masterpiece. I do commend a lot of you guys, I've seen some great advice. Advice that I wish I had read before diving head first into this world. I've always been a tough lesson kind of guy and class is in session. Hopefully I can graduate. All aboard the emotional roller-coaster of cryptocurrency with too much invested! The last 2 months have been an experience like none other. So many ups and downs. Tonight I'm restless, so I type this story for you. This is the story about a dumbass guy who was grasping at straws and still is. His intentions may be good, but who knows how he'll fare. Sure a lot of you say cut your losses, but how do you cut ties with something you've fallen in love with? How do you turn your back on the tech after the fact? Buckle Up It Gets Worse: Last weekend I finally broke the news to my fiance that I had done this behind her back potential increasing our debt if this thing blows up. Let's say things aren't the greatest in the love life. Trust for the first time in 4.5 years of our relationship is in question. So here we are. The price is dropping hard, again. Things are a mess but I still hold on for dear life. Strange thing is that its starting to have no effect on me. Despite the ramifications of a complete crash, you think I would. Maybe I'd be a great investor if I didn't have debt on the line. All I do now is research blockchain day in and day out. I've done so everyday since things went south. Figured I should learn what the hell I heard about in that podcast so many years ago. Should learn about what I overextended myself with a loan for. It really is brilliant. Blockchain is without a doubt a huge piece to our future. All the ups, downs, sad truths to loved ones, fist pumps when I see a price pump and the swear words when they dunno (today I got caught in Ast after I fucked up my stop loss...) I've made countless mistakes and I'm sure I'll make more. I keep pushing myself towards becoming a knowledgeable tradeinvestor in hopes that I'll stop making mistakes when I do both. I'm definitely a HODLer until then, with a coin I'm not passionate about (AST) and a few that I am. It's been over 2 months since entry. My skin is leather now, the stress of the past few months have turned my insides to stone. I'm down 60% and I'm still optimistic (or in denial?). I'm bleeding just like the rest of you, maybe even more with the interest. Will my decision to HODL be the right one? I guess only time will tell. My fiance asked me if I'm willing to accept the loss if a full crash occurs or at least willing to manage the interest until the investment turns positive. I'm 99% sure that I am, now that I know what this technology is all about. Are you? To be continued... edit the reason I share my story is to not add to the sentiment of fear, but rather to give hope to other new investors. Just maybe one person, new to cryptocurrency reads this and says, ok things aren't as bad for me, I'll HODL with this dude. One less person quitting cryptocurrency is a win in my book.
Bitcoin's volatile history in pictures Silk Road opens for business. Bitcoin soon gained notoriety for its use on the dark web. The Silk Road marketplace, established in 2011, was the first of ... Over the weekend Bitcoin entrepreneur Roger Ver set the Cryptosphere on fire when he announced that he was going to donate $10 for every retweet he received about his support for accused Silk Road mastermind Ross Ulbricht.Ulbricht, according to the US government, was the mysterious Dread Pirate Roberts, owner and chief administrator of the notorious Dark Market that helped put Bitcoin on the map. That user, @bittlecat, had tried sending their bitcoin to the hash-scrambling Wasabi wallet in an apparent violation of Binance SG’s anti-money-laundering (AML) policies. Welcome! Log into your account. your username. your password One of the most successful venture capitalists and a sought-after spokesperson for Bitcoin and its future Tim Draper is adamant on getting the infamous Silk Road creator and operator, Ross Ulbricht, out of prison. Ross Ulbricht was a successful darknet market creator and operator before he was convicted and imprisoned in 2013. He now serves a ... Binance, the popular crypto asset infrastructure and exchange company, today announced its expansion of enterprise services through Binance Cloud to include perpetual futures, DeFi enterprise solutions, and third-party payment solutions. With the iteration, Binance Cloud now offers services for building DeFi products on Binance Smart Chain and Ethereum for its partners globally, as well as […]
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