Experts Shed Some Light on Blockchain Technology

There is a 50 percent chance that you would have heard about the word blockchain, crypto coin, or cryptocurrency exchange. One can be sure there is an even greater chance that you’ve heard of Bitcoin, EOS, or Ethereum. Blockchain and Bitcoin have become synonymous as well as interchangeable. Much like the terms LTE and 4G.

The thing is that Bitcoin is known as a cryptocurrency, and it makes use of blockchain technology.

However, limiting blockchain to any particular cryptocurrency or Bitcoin is a mistake.

To fully understand blockchain is a bit more complicated than you would think as there is not a definite way to define this emerging new technology.

What we do know about blockchain is that most refer to it as a digital ledger where transactions are made and kept account of publicly. But there is more to it than just record keeping.

Exchange experts make it their business to find out how blockchain impact our lives.

Thanks to Bitcoin, cryptocurrency, and blockchain became reasonably interchangeable.

All sorts of new digital currencies made their debut that seem to steer away from traditional cryptocurrency models.

Have you heard of Ripple?

Once this particular cryptocurrency came it, mining formed no part of their standard criteria. Not long after, Ethereum came out. From here it just kept expanding.

Nowadays, you may want to think of crypto as being in the cloud where other people’s computers would be used to host things.

While this concept is not anything new, it did represent sort of an enterprise movement where most folks began to rethink their business use cases and innovated the way they do things.

Something similar is currently happening with blockchain in that there is a strong cohesive movement where people are keen to try new things. One should consider it to be valuable as every so often, you come across industries where nothing much would change in two decades. Until something like this comes along, that inspires many to start innovating how they do things.

From what we discussed over here, it is clear that blockchain is still in its infancy phase. However, one wonders whether it is not just a secure, shared database.

What Makes Blockchain so Different?

At first, the experts thought that there was no need for blockchain. This idea was driven by the fact that they were deploying various payment solutions for banks and in the process of moving away from a shared ledger as it added a lot of overheads.

Besides, governance tends to be extremely complex and involves different scalability and privacy issues.

What people really valued about cryptocurrencies such as Ripple and Rubix was their transparency and consistency.

What happened is that they applied a consensus algorithm on a transactional level rather than a ledger level. Therefore, we no longer think blockchain will replace databases.

Such exchanges do not think of themselves as a blockchain, but rather as a payment company.

During 2017, banks reached out to them to ask if they could use RXP, which is their brand for sky money. Doing so would eliminate the requirement to foster correspondent relationships. 

Be wary of having your monies deposited in a bank that is part of another country in case they go under as it would ultimately lead to massive problems to deal with.

We are well aware that global commerce is on the increase. Therefore, there is a higher demand for cross-border transactions, which also creates tension. Banks desire fewer relationships as they are time-consuming. However, customers want easier cross-border transactions for which XRP provides the way out.

Markets in India and the Philippines that are potentially challenging to reach would benefit from such systems.

What makes Bitcoin so valuable?

Very much the same reason why gold is considered valuable. Not because gold is seen as something shiny, conductive, and malleable, but due to the standards it represents.

A few features worthy of mentioning that makes gold extremely valuable is that it’s hard to counterfeit; easy to merge, refine, transport, and subdivide; and also, very scarce.

Bitcoin does a bit more than gold such as travel across the world, from one individual to another, with no middle persons, within minutes. 

What would be of great interest to many is the ability to make use of a trusted cryptocurrency exchange to handle various digital currency transactions with no hiccups. Also, read about the 10 tips to follow before investing in cryptocurrency.

Investing in Crypto Coin

There is no doubt in anyone’s mind that the cryptocurrency world has undergone a whirlwind of change. One such cryptocurrency exchange platform can attest to this fact due to the number of users that signed up.

One can expect all kinds of fluctuations. Take Bitcoin for example. It peaked massively during December 2017 at an all-time high of just over $19,000 only to crash to a low of $6,000 during April 2018. Currently, the cryptocurrency market is so volatile that you can expect fluctuations of $1,000 up or down in any week.

You may remember the ICO craze where Google, Facebook, MailChimp, and Twitter banned cryptocurrencies because of the amount of deceptive and misleading claims being made. The mere ability to make millions overnight through ICOs attracted bad actors who were looking to profit from uneducated investors.

Thankfully, new ICOs made their way into the market during 2018. As of now, there are over 1,600 coins and tokens listed on various exchanges.

Some say that the ability to profit from cryptocurrencies has passed. However, there are still opportunities to benefit from ICO investing and crypto trading. It goes without saying, that there will be days when the market will experience volatility and unexpected swings. This is where one can make the most significant gains.

If you take it that George Soros felt that cryptocurrency is just a bubble that would burst. Just recently, he changed his mind and plans on trading with this commodity.

What we’ve also seen are investment bankers who left their jobs from Wall Street and set up crypto funds for themselves.

Note that this article is meant for newbies to the cryptocurrency market and not meant for fundi traders.

After all, you want to make smarter decisions regarding your digital currency investments.

Things are looking up in this game as billions of dollars have been plowed into blockchain startups by individuals who left Wall Street and venture capitalists.

As an investor or trader, you will need a basic understanding of cryptocurrencies as well as the underlying technology that drives it.

There is a lot of noise, hype, and misinformation about cryptocurrencies that one has to sift through, which proves to be overwhelming and result in poor investment decisions.

What cryptocurrency does is to allow two individuals to safely and securely transfer fund to each other using different locations without the need to depend on a bank or government entity in a digital format.

Cryptocurrency takes the form of:

  1. Platforms such as Ethereum to serve as a place where other companies or tokens can build on top of through smart contracts and decentralized apps.
  2. Other currencies such as Monero (XMR) to solve the problems of traditional fiat currency that focuses on being private, secure, and untraceable.
  3. Companies or apps who make it their aim to solve particular problems to do with blockchain. One example is a company by the name Golem who creates a global market for idle computing power to use with blockchain.

What comes to your mind when you hear people chat about tokens and coins? Do you think of a gambling house? In the digital world, it serves as shares in which you can trade on the stock exchange. However, unlike the shares we know about that can take on a physical form, these don’t. What happens is that you get access to using a specific product or service.

Bitcoin is a cryptocurrency being used as payment in exchange for services or goods. Any transactions that transpire are added to the public ledger or blockchain through nodes on the network with a said agreement in place that is made possible through what they call a proof of work system (mining).

Miners offer their computers to help solve mathematical equations so all sort of transactions can be verified on the blockchain. In turn, they are compensated with bitcoins.

Now that we mention blockchain, it would be good to understand its role in all of this.

Essentially, it is database architecture of records found on a public ledger that contain a host of transactions that have been implemented and shared among various parties who participated in this endeavor.

Every transaction within the public ledger is verified by the majority who utilizes this system and have given their consensus. Once it has been recorded within the blockchain, the transactions cannot be erased or tampered with.

Why You Should Enter the Cryptocurrency Exchange World Now

First off, there is hardly any competition in the market. You might be surprised by this statement. But, it is true. While the interest keeps growing in signing up with a cryptocurrency trading platform the competition is still very low. The primary reason for this is that the market is deemed as unmastered and wild. Reason being that most folks do not place their trust in new ventures and trends.

Secondly, One can reap massive returns right now. At this very moment, cryptocurrency prices are rising, so the chances are good for earning a handsome amount of money. You just need to manage your risk properly, and you will soon make profits.

Thirdly, we find numerous freeloaders in the market. They arrive at the crypto scene with the intention of making a quick buck without learning more about the topic matter. These people originate from pyramid schemes that often linked to so-called experts, claiming to teach others while they have no experience on the topic. While this may have worked in the beginning stages, it is no longer the case, you need to put forth an effort to make it work.

Then, there are low risks in the market. Five years ago, people thought the day will arrive when crypto gets banned. Nowadays, various countries around the globe already recognized how important Bitcoin, Ethereum, or Litecoin is. These gained such momentum that the stop button can no longer be pressed. This fact alone should prove to you that you can safely invest your funds without any prohibitions, fears, or restrictions.

Before we discuss the rules around digital currencies like crypto, let us consider the Tesla case. Apparently, they will not be able to retrieve their costs in more than 300 years. Why is this so?

Let’s face it, an electric vehicle is stylish and beautiful but very expensive and not practical. However, the experts are not all that concerned. They focus on a future that will become a reality in say 20 to 30 years from now. Do you think you will still see the cars we have on the road currently during that time? Hardly. This is why Tesla is capitalizing on the fact that they will have the monopoly at that moment.

The thing is that no one can say for certainty that this will definitely be the case in the next 30 years. How can one link this example to what the future holds out for Bitcoin or Ethereum investors?

While, many view this new way of working with currencies as interesting, fashionable, and technically curious. They think it will turn into a sizeable dominant see in time to come, which is why they choose to invest now.

Why You Need to Identify the Main Rules of the Digital Market

Before digging their heels into something of relevance, the pros make it their business to learn the rules and set themselves goals. This way they can determine what type of results they can achieve.

In the crypto world, you may want to set yourself some of the following trading goals:

  1. Thinks about the specific amount of money or percentage of your income that you wish to invest monthly
  2. Talk about the degree of readiness to do with risks you are willing to take
  3. Define your short and long term goals

Upon setting your goals, you need to comprehend what is all required to ensure a successful startup within the crypto markets. Many seem to think that they lack the required insight and do not have sufficient knowledge in this type of business. However, most of the strategies that were implemented by people do not require such an in-depth knowledge or understanding of the Bitcoin world.

What you need is practice to help you understand when and where to busy, the right time to sell, how you can store your cryptocurrency, and what is required to transfer it.

What you’ll also need is:

  • Several ready-made low-risk strategies to enter the market
  • The ability to filter information and content
  • Discussions with experienced traders within the crypto markets
  • Risk management
  • Auditing from experience curators

What you need to live with is that making any kind of investment in the crypto markets is a risk, which is something you need to accept. The reliability of ICOs is only based on a biased stance. No one can provide you with an iron-clad guarantee but just sound advice.

What is Your Best Option When Selecting a Cryptocurrency Trading Platform?

When choosing a crypto exchange, there are various issues you need to consider before joining the platform.

Do your research to find one that will meet most of your needs.

Some of the factors to look for include; reliability, security, verification, exchange type, fees, mobile app, and whether or not it is available in your country.

Reliability

Without a shadow of a doubt, it will be challenging to tell which of the exchanges you came across will be successful in accomplishing what you want from it, and which ones will fail.

Hundreds of exchanges are formed every day. No doubt, this creates a healthy competition among all of them. Countries are beginning to regulate exchanges, which makes it harder for some of them to remain in business as it will drive up costs. The larger exchanges, will, therefore, have an unfair advantage over the smaller ones.

Security

You will find there are two levels of security to allow access that most exchanges make use of nowadays:

  1. The first level is the use of a username and password as a necessary login procedure.
  2. The second level will require the user to authenticate themselves. They would get an SMS with a number, which must be entered into a section on the exchange site. Preferably, you want a next level security process that involves Google authentication. Some platform would give you a choice while others will allow you to use both options.

Losses due to cyber attacks, fraud, theft, and any illegal actions taken by the exchange personnel are covered by the latest cryptocurrency insurance policies.

Users on more than a dozen exchanges can request their holdings to be financially safeguarded.

The framework would weigh criteria such as the level of technical security, passwords, key storage reliability, and personal data provided by each exchange.

It also takes into account the quality of the personal risk management system of each platform, and how unvarying the KYC (know-your-customer) and AML (anti-money-laundering) procedures are.

Verification

Certain exchanges require hardly any verification. Usually, the crypto exchanges get away with this. Other platforms need one to key-in a name and address. Different levels will apply if you want to trade and take out higher amounts than the average person would.

The types of verification required would involve submitting copies of your passport or ID document. You will come across crypto trading platforms that would ask you to take a selfie and send this with your ID. No doubt, every exchange out there have different requirements that must be met.

What About Trading Bots – Can You Trust Them?

Algorithmic trading and the use of trading bots is nothing new on Wall Street. Many might be concerned as to how reliable and trustworthy these bots are. But, various crypto networks provide a unique environment to minimize the risk. They continuously experiment with updated methods, and the bots have the ability to manipulate the markets.

The combination of more sophisticated software tools used for trading purposes, coupled with the advancement made in machine learning as well as decentralized exchanges should instill even more confidence in the development of trading bots.

Notwithstanding the advent of algorithmic trading in various cryptocurrency markets, it is still a growing field with a much-needed amount of improvement waiting to unfold.

The future of different blockchain networks is unclear at this stage. Having said that, trading bots will be useful for institutions and traders to help minimize risks and to take care of larger orders.

Many of the trading bots honed in on arbitrage trading taking place between exchanges.

This brings us to three types of exchanges:

  1. Crypto Exchanges – These would only be utilized to trade cryptocurrencies and do not allow exchanging your fiat currency into cryptocurrency. One of the benefits associated with this kind of exchange is that they have lower verification requirements. The disadvantage is that you must already possess crypto coins to make use of these.
  2. Crypto Fiat Exchanges – They would accept fiat deposits and let the user buy crypto using the fiat currency. All you need is your bank account or credit card. These exchanges would be regulated by government agencies as they deal with fiat currencies. The disadvantage is that these do not offer access to a variety of cryptocurrencies.
  3. Cryptocurrency Brokerages – These are brokerages in that they offer their services for trading with products like; bonds, stocks, foreign currency exchange, commodities, etc. They also allow trading with cryptocurrencies. Users have the convenience of a one-stop shop so to speak. The brokers are trustworthy as they are regulated by the authorities. The only downside would be the higher fees and fewer types of crypto to trade with.

For the best results in trading with crypto, you may want to visit Rubix.io