This year we can observe that cryptocurrencies tend to move up and down even by 15% of value on a daily basis. Such changes of price are known as a volatility. But what if… this is totally normal and sudden changes are one of the characteristics of the cryptocurrencies allowing you to make a good profits?
First of all, the cryptocurrencies made it to the mainstream very recently, therefore all the news regarding them and rumors are “hot”. After each statement of government officials about possibly regulating or banning the cryptocurrency market we observe huge price movements.
Secondly the nature of cryptocurrencies is more like a “store of value” (like gold had been in the past) – many investors consider these as backup investment option to stocks, physical assets like gold and fiat (traditional) currencies. The speed of transfer has as well an influence upon volatility of the cryptocurrency. With the fastest ones, the transfer takes even just couple of seconds (up to a minute), what makes them excellent asset for short term trading, if currently there is no good trend on other types of assets.
What everyone should bear in mind – that speed goes as well for the lifespan trends on crypto currencies. While on regular markets trends might last months or even years – here it takes place within even days or hours.
This leads us to the next point – although we are speaking about a market worth hundreds of billions of US dollars, it is still very small amount in comparison with daily trading volume comparing to traditional currency market or stocks. Therefore a single investor making 100 million transaction on stock market will not cause huge price change, but on scale of crypto currency market this is a significant and noticeable transaction.
As crypto currencies are digital assets, they are subject to technical and software updates of cryptocurrencies features or expanding blockchain collaboration, which make it more attractive to the potential investors (like activation of SegWit basically caused value of Bitcoin to be doubled).
These elements combined are the reasons why we are observing such huge price changes in price of cryptocurrencies within couple of hours, days, weeks etc.
But answering the question from the first paragraph – one of the classic rules of trading is to buy cheap, sell high – therefore having short but strong trends each day (instead of way weaker ones lasting weeks or months like on stocks) gives much more chances to make a decent profit if used properly.
Here we will look at the concept of following Forex price action via charts and making huge FX Gains with a simple and proven method. If you use the FX strategy enclosed, you will catch every big trend and profit so – let's take a look at it in more detail.
If you look at a chart of any currency pair you will see big trends which last for weeks on end and these trends can give you fantastic profits if you know how to get into them. The good news is the big trends all start and continue in the same manner – They break overhead resistance and then, move higher and this is called a breakout. If you trade breakouts, you will have a simple and powerful method which simply follows price action and gets you in on all the big trends.
Of course, not every break of resistance, will see a new trend develop and many will fail to follow through. To make profits, you need to know which breaks offer you the best odds – before you enter your trading signal.
The best breaks are ones which occur after a level has been tested a few times and becomes significant to other traders. If a level has been tested a few times, traders will want to short into resistance and have their stop behind it. The more times the level is tested, the more stops are clustered just behind resistance. When the break does occur, these stops are triggered and push the price away from the breakout point then, new technical buying comes which pushes the price further away from the breakout point and a new trend is born.
In terms of numbers of tests before the break, I like about 4 – 6 and ideally, want 2 of those testes to be at least a month apart. The break when it comes is even better, if most people think the currency should be going the other way. The reason these breaks are better is simple – the vast majority of traders always lose money and there are likely to be a lot of stops to be hit as the resistance gives way and takes these losers out of the market.
The simple method above, will make you money and not only will it get you in on all the big trends, allow you to trade just a few times a week and make triple digit gains. If you want to achieve currency trading success, there is no better method than breakout trading.
When you think of starting a business, the first thing that comes to mind is money / capital. Of course, you need money to start a business, even if it is very little considering the fact how easy it is to start a business in the digital age. However, there could be many other factors that affect a business in today's digital economy-some you show serious concern to and some you don't really pay attention to much.
Blockchain Is Affecting All Types of Businesses
One of the biggest concerns for today's entrepreneurs before they start business is probably blockchain or crypto technology. The world is seeing the rise of crypto technology and how it is being integrated into the existing business ideas. A little more than a couple of years ago, you must have heard the term "bitcoin". From bitcoin, people still believe that blockchain is all about digital currency ie money in the digital world. However, this is far from truth. Blockchain is expected to affect all types of businesses and industries in the world in the coming days.
It is a technology that redefines the security aspect of many businesses in 2018, introduced decentralization in modern business technologies and benefits the end consumers in multiple ways. For example, you could launch a gaming platform where no one needs the existing currencies. You could launch your own platform with your own money today. You don't really have to start everything from the scratch; instead you could base your currency on the existing blockchain platforms like Ethereum. Through ICOs, you could have investors from around the world invest in your idea. So, blockchain is definitely a consideration for all businesses starting in 2018 and the coming years.
Physical Warehouses Are Not Necessary
A few years ago, only a certain types of business could be called truly online businesses. For businesses where products have to be stored for some time, a complete online presence was not the solution. Entrepreneurs who had such business ideas in mind had to have enough money to have their own warehouses. However, this has also changed quite a bit in the past couple of years. With the idea of drop shipping becoming common with time, it is becoming easier for businessmen to start their own businesses without much investment.
In a drop shipping model, all you have to do is collect orders from customers, forward those orders to the manufacturers or suppliers and have the goods shipped. You only act as a liaison in this particular model because it is the supplier that sends the products directly at the customers' doorsteps. You will still need an online store with all the products listed for customers to see. However, you don't need any warehouses because you don't have to own, buy or store any products. The good thing is that this model now allows drop shippers to offer much more competitive rates so penetrating into the market is easier for them.
Big Data Is the Big Difference
Another technology that has been influencing business decisions and the way businesses operate is big data. While the term "big data" seems that you are referring to just large amounts of data but in reality, you are also referring to the methodologies and technologies that are in use to handle big data. You will be completely wrong to think that traditional software and hardware solutions can deal with big data in any way. Let's take the example of a bank. A bank could have hundreds of branches located all around the country. In these hundreds of branches, the bank will have hundreds of thousands of customers.
The bank has account information of hundreds of thousands of these customers. In addition to that, the bank is constantly investing in stock and foreign markets, storing and utilizing that information. The same bank handles the data of all micro and macro loans it is forwarding to its customers. It is also storing information about customers through its mobile application to know what customers expect from the mobile website. On all of those hundreds of branches, the bank also has CCTV cameras collecting terabytes of footage on a daily basis.
Do you think all this data goes to waste? No, the data bank collected from banks is utilized in making bank branches securer. Data from mobile devices helps bank refine their mobile application. Data collected through financial softwares helps a bank improve its insurance, loan, mortgage, etc. offerings. It may seem on the surface that big data is a headache for big businesses only, but big data is just as important for small businesses as well. What this mean is that businesses starting in 2018 will have to have a big data approach right from day one.
Internet Security Is the Biggest Threat Now
It is unfortunate that rather than making the world a safer place, the new technology has led to greater internet threats. Cyber attacks are becoming more frequent with time, and much more sophisticated too. In the past few years, cyber attacks on some of the biggest companies of the world, including tech companies have proved that security has to be the major concern for every business-small, mid-scale or large. If you think starting a new business or having a small business gives you any advantage over large ones.
As a matter of fact, it's the small businesses that are at a higher risk when they are under any type of cyber attack. This is because large businesses have the technologies and capital to fight the attack, recover and get back on their feet again. On the other hand, small businesses usually don't have any of that.
The challenges for any small businesses in 2018 are much bigger and technology-related than they have ever been in the past. The need of the time for small business owners in 2018 is to say goodbye to the traditional thinking and embrace new technologies to be successful. They must also remember that in the modern age and coming years, every business is (like) a tech business to some extent due to its dependence on technology to collect customer data, create marketing campaigns and secure customer information.
For those not familiar with what bitcoin is; it is basically a digital currency for which no banking system or even a government is needed. Open source software is used to operate the transactions. Many people are investing money in the bitcoin market because ever since it was introduced in 2009, it has become extremely popular among traders and investors. Even many merchants have started to accept bitcoins. For example, you can buy a web hosting service or even order a pizza with your digital currency.
When you are trading in the bitcoin market, you can trade anonymously. The currency is not tied to any particular country and there are even no regulations designed for it. Even small businesses are using bitcoins because there is no transaction fee involved in the exchange. If you have some savings, you can invest that money to buy bitcoins and to gain profit because the value of this digital currency is predicted to go up.
The market places where digital currencies are exchanged are called bitcoin exchanges. They are the places where people buy and sell bitcoins by using the currencies of their respective countries. You simply need a wallet software, open an account, and then buy bitcoins from the money you have in your account in order to become ready for the exchanges. People are even transferring digital currencies through their Smartphones. There are mobile apps available for this purpose. You can either purchase bitcoins from online exchanges or get them from special ATMs.
Mining is another option used in the digital currency market. It is a process in which traders have to solve mathematical puzzles to win bitcoins. It’s a tough and time taking process, but if you get it right then you will win 25 bitcoins. This can just happen in 10 minutes.
Once you are into the trading game, you will get to store your digital currencies in a digital wallet. It will be your virtual bank account where you will store all your bitcoins. It is not necessary for you to disclose your name while you are exchanging bitcoins. You will trade with your bitcoin ID. It is meant to ensure privacy of the transactions. So, you can buy or sell anything and nobody can trace your transaction. The digital currency transactions are verified through cryptography. It is a series of mathematical algorithms, which can only be solved by powerful computing. That is what secures the system. So trading in the bitcoin market is purely safe and legal.
The system and the market itself have perfect control on how much bitcoins are being created. The system adjusts itself by making the mathematical problems difficult to solve and hence, only specific amount of bitcoins are awarded.
Bitcoin is not just some currency to invest your money in. In the near future, more and more businessmen are going to use it instead of credit cards just to avoid the transaction fee. It’s going to be widely used form of currency in the coming days.
Digital Currency, commonly referred to as "Cryptocurrency", is a type of money that only exists in electronic format. It is a series of data that uses a technology referred to as Block Chain, which acts as a ledger and maintains the history of what the Cryptocurrency has been used for. Similar to coins or paper money, Digital Currency is stored in a digital wallet, and can be used as a traditional method for buyers and sellers to pay for the exchange of goods and / or services. The transfer of ownership of a Digital Currency is kept as a record in the Block Chain, which can be tracked from user to user. There are obvious benefits of tracking the activity of any currency, the most substantial benefits being proof of ownership and fraud prevention & mitigation.
The recent growth in popularity of Cryptocurrency has given way to a new era of wealth in the technology industry. While the traditional means of generating income or amassing wealth has typically involved exchanging a product or a service for money or compensation, Digital Currency is generated completely different. Much like gold or silver is dug out of the ground, Digital Currency uses "miners" to process thousands upon thousands of calculations every minute, effectively digging through a mountain of digital rocks and dirt to locate what ultimately ends up being a solution to an extremely complicated math problem.
Up until recently, a Technologist's ability to generate a paycheck relied on building digital applications or providing their technical skills to a business. However, with the birth of Cryptocurrency a Technologist (or even a novice user with some basic computer programming skills) can circumvent basic employment and engage directly in the production of this new currency by building a cadre of ultra-powerful computers whose sole purpose is to "mine" Cryptocurrency.
The corporate world relies heavily on the skills and abilities of Computer and IT Professionals. However as the popularity of virtual money continues to grow and become more and more popular, combined with the natural skills held by even some of the most basic computer programmers, the corporate world may start to see Cryptocurrency as a threat to their business operations. When compared to answering to a boss at a Technology firm, mining Digital Currency may be a very attractive job opportunity, therefore leading to the potential of a shortage in qualified computer programmers in the Technology industry.
Beginners in trading, often ask why the U.S. dollar affects the price of many commodities in the market. To answer this question, it is important to understand first what a reserve currency is.
Reserve currencies are currencies that are stored by Central banks and major financial institutions in very large quantities. These currencies are used for major investments, massive transactions, and all aspects that are related to the global economy.
One of the most notable reserve currency in the world is the U.S. dollar. It is widely known for its liquidity and it is the currency of America, one of the world’s most powerful and stable economy. Commodities are usually priced in reserve currencies. Gold, oil, steel, platinum and many others are priced with the U.S. dollar. Oftentimes, commodity buyers use the U.S. dollar to purchase various commodities. Thus, a sudden change in the price of the dollar can widely affect a number of commodities in the market.
Commodities and the U.S. dollar have an inverse correlation. If the price of the dollar rises then commodity price falls and if the price of the dollar decreases then commodity prices increase. An increase in the U.S. dollar value indicates that the buyer will have to spend more of their own currency to purchase a certain amount of a commodity. When commodities become more expensive its demand will fall resulting in a price decrease.
Every commodity has its own peculiar attributes. These attributes often affect the price of various commodities. But the value of the dollar has a superior influence on commodity prices compared to the different attributes of commodities. Even history has its testimonies with the inverse relationship between the U.S. dollar and commodities. In the year 2014, a significant number of commodity prices fell when the dollar appreciated by approximately 23%.
As a trader, it is important to always monitor the price of the dollar and even the aspects that will affect its price. It is common knowledge that commodities and the U.S. dollar move in opposite directions. This insight doesn’t assure a specific investment decision but it can guide in making reliable decisions.
Another reason for the influence of the dollar is that commodities are global assets. They trade all over the world. Foreign buyers purchase U.S. commodities such as corn, soybeans, wheat, and oil with dollars. When the value of the dollar drops, they have more buying power because it requires less of their currencies to purchase each dollar.
Over the past few months I have watched bitcoin’s value rise exponentially. I had no idea what bitcoin was and never even heard of crypto currency a few months ago. But with the recent government and media attention crypto currencies have received, they have gotten everyone’s attention.
Crypto currency or more simply digital money is gaining acceptance quickly all over the world as it makes transactions quicker and cheaper. These transactions are secured by cryptography and each transaction has its own signature or private key. With its rise in value and popularity everyone wants a piece of the action. There are two main ways to make money with bitcoin. The first is a pretty straightforward method of purchasing the coin as an investment and hope that its value increases. The second is the process of “mining” bitcoins. Once a transaction has occurred they are then verified over the network by “miners” using complicated algorithms. As a reward for their work they receive transaction fees and/or freshly minted bitcoins!
From an investing standpoint there is a big risk/reward factor as this currency is relatively new and has no intrinsic value causing volatility and big price changes. A positive fact is that there is a huge amount of money invested in this and companies are signing on to use this currency so we have no idea when its value will go back to zero!
“Mining” also has a big risk/reward factor. In the beginning of bitcoin, you used to be able to “mine” with an ordinary laptop or home computer. But now as more people are doing it the difficulty and power needed to “mine” increases. Bitcoins have a maximum amount that can be minted (21 million). And as we get closer and closer to 21 million the amount of bitcoin rewarded for each successful “mine” gets smaller and smaller. Now “miners” looking to be profitable have to invest in complicated high tech mining rigs and there is still no guarantee they will be profitable or even make their costs back.
There is a third and safer option, though. In any sudden happening that promises riches the most lucrative venture is selling the tool that helps produce these riches. For example, in a gold rush it would be the shovel and in “mining” for bitcoin it would be mining rigs or powerful graphic cards. If you can produce these or even get your hands on some cheap you would make a considerable profit flipping them. Unfortunately, only a select few have the luxury of choosing this option.
With people flocking towards the riches dangling in front of them the scam artists are having a field day as well. Read articles, browse the forums, watch the bitcoin market, and research your costs and ROI before even considering investing anything. In my opinion, you should do this for a few weeks before putting any money into play. This is an extremely volatile market and an even riskier investment.
But in the end, I think it all boils down to if you are willing to take the risk of losing it all, to perhaps make it big.
If you want to earn Bitcoin online, this is a post that will help you do just that. Bitcoin is the world's first peer to peer crypto-currency that isn't controlled by any central issuing agency but is rather an open source protocol that is followed by all the people who participate in the economy. No one can manipulate the supply of Bitcoins and all transactions that take place in this economy are cryptographically verified through a process called Bitcoin mining. Your Bitcoins are as secure as public key cryptography can be.
Once you understand and appreciate the concept of Bitcoin, the next logical question is, how do you earn some Bitcoin? Here are some ideas –
Make money online and convert them to Bitcoin
Believe it or not, it is still much easier to make US Dollars! You can then exchange these dollars you make for Bitcoin at any of the exchanges such as Bitstamp or Coinbase if you're located in the US.
Earn Bitcoin Directly in the Bitcoin economy
There is a small but very vibrant community where you can do most tasks, but at a much smaller scale. For instance, you can take up a part-time job for Bitcoin on Coinality or you can end up with a small gig on Coingig. These are real life equivalent of sites like Elance and Fiverr but in the Bitcoin ecosystem.
The advertising industry in the Bitcoin economy is, not surprisingly, pretty robust. This is because there are ton of new Bitcoin based services that keep coming up all the time and they all need a good advertising network.
CoinURL allows you to place Google AdSense styled ads on your website and other services like Bitads lets advertisers bid for banner space on your blog. There is also a-ads that allows you to make money through ad impressions without reference to the clicks (so it isn't PPC). If you're a publisher – blogger or webmaster, you can earn some Bitcoins through this route.
There are sites that will pay you for your activity. CoinChat is perhaps the best known site in this category. It pays users a few milli-Bitcoins for chatting on their site. These are random and controlled by an algorithm that takes into account your activity and how well you're contributing to the discussions at hand.
Another way in which a lot of Bitcoin enthusiasts earn some Bitcoin is by selling their forum signatures at Bitcointalk forums. There are a good number of advertisers who are willing to do this, and for the socially active member who values interaction through this forum (it is the same forum through which Satoshi Nakamoto introduced Bitcoin to the world), selling signatures can be lucrative.
What other ways are there to earn some Bitcoin online?
This year the value of Bitcoin has soared, even past one gold-ounce. There are also new cryptocurrencies on the market, which is even more surprising which brings cryptocoins’ worth up to more than one hundred billion. On the other hand, the longer term cryptocurrency-outlook is somewhat of a blur. There are squabbles of lack of progress among its core developers which make it less alluring as a long term investment and as a system of payment.
Still the most popular, Bitcoin is the cryptocurrency that started all of it. It is currently the biggest market cap at around $41 billion and has been around for the past 8 years. Around the world, Bitcoin has been widely used and so far there is no easy to exploit weakness in the method it works. Both as a payment system and as a stored value, Bitcoin enables users to easily receive and send bitcoins. The concept of the blockchain is the basis in which Bitcoin is based. It is necessary to understand the blockchain concept to get a sense of what the cryptocurrencies are all about.
To put it simply, blockchain is a database distribution that stores every network transaction as a data-chunk called a “block.” Each user has blockchain copies so when Alice sends 1 bitcoin to Mark, every person on the network knows it.
One alternative to Bitcoin, Litecoin attempts to resolve many of the issues that hold Bitcoin down. It is not quite as resilient as Ethereum with its value derived mostly from adoption of solid users. It pays to note that Charlie Lee, ex-Googler leads Litecoin. He is also practicing transparency with what he is doing with Litecoin and is quite active on Twitter.
Litecoin was Bitcoin’s second fiddle for quite some time but things started changing early in the year of 2017. First, Litecoin was adopted by Coinbase along with Ethereum and Bitcoin. Next, Litecoin fixed the Bitcoin issue by adopting the technology of Segregated Witness. This gave it the capacity to lower transaction fees and do more. The deciding factor, however, was when Charlie Lee decided to put his sole focus on Litecoin and even left Coinbase, where’re he was the Engineering Director, just for Litecoin. Due to this, the price of Litecoin rose in the last couple of months with its strongest factor being the fact that it could be a true alternative to Bitcoin.
Vitalik Buterin, superstar programmer thought up Ethereum, which can do everything Bitcoin is able to do. However its purpose, primarily, is to be a platform to build decentralized applications. The blockchains are where the differences between the two lie. Basically, the blockchain of Bitcoin records a contract-type, one that states whether funds have been moved from one digital address to another address. However, there is significant expansion with Ethereum as it has a more advanced language script and has a more complex, broader scope of applications.
Projects began to sprout on top of Ethereum when developers began noticing its better qualities. Through token crowd sales, some have even raised dollars by the millions and this is still an ongoing trend even to this day. The fact that you can build wonderful things on the Ethereum platform makes it almost like the internet itself. This caused a skyrocketing in the price so if you purchased a hundred dollars’ worth of Ethereum early this year, it would not be valued at almost $3000.
Monero aims to solve the issue of anonymous transactions. Even if this currency was perceived to be a method of laundering money, Monero aims to change this. Basically, the difference between Monero and Bitcoin is that Bitcoin features a transparent blockchain with every transaction public and recorded. With Bitcoin, anyone can see how and where the money was moved. There is some somewhat imperfect anonymity on Bitcoin, however. In contrast, Monero has an opaque rather than transparent transaction method. No one is quite sold on this method but since some folks love privacy for whatever purpose, Monero is here to stay.
Not unlike Monero, Zcash also aims to solve the issues that Bitcoin has. The difference is that rather than being completely transparent, Monero is only partially public in its blockchain style. Zcash also aims to solve the problem of anonymous transactions. After all, no every person loves showing how much money they actually spent on memorabilia by Star Wars. Thus, the conclusion is that this type of cryptocoin really does have an audience and a demand, although it’s hard to point out which cryptocurrency that focuses on privacy will eventually come out on top of the pile.
Also known as a “smart token,” Bancor is the new generation standard of cryptocurrencies which can hold more than one token on reserve. Basically, Bancor attempts to make it easy to trade, manage and create tokens by increasing their level of liquidity and letting them have a market price that is automated. At the moment, Bancor has a product on the front-end that includes a wallet and the creation of a smart token. There are also features in the community such as stats, profiles and discussions. In a nutshell, the protocol of Bancor enables the discovery of a price built-in as well as a mechanism for liquidity for smart contractual tokens through a mechanism of innovative reserve. Through smart contract, you can instantly liquidate or purchase any of the tokens within the reserve of Bancor. With Bancor, you can create new cryptocoins with ease. Now who wouldn’t want that?
Another competitor of Ethereum, EOS promises to solve the scaling issue of Ethereum through the provision of a set of tools that are more robust to run and create apps on the platform.
An alternative to Ethereum, Tezos can be consensually upgraded without too much effort. This new blockchain is decentralized in the sense that it is self-governing through the establishment of a digital true commonwealth. It facilitates the mathematical technique called formal verification and has security-boosting features of the most financially weighed, sensitive smart contract. Definitely a great investment in the months to come.
It is incredibly hard to predict which Bitcoin in the list will become the next superstar. However, user adoption has always be one key success factor when it came to cryptocurrencies. Both Ethereum and Bitcoin have this and even if there is a lot of support from early adopters of every cryptocurrency in the list, some have yet to prove their staying power. Nonetheless, these are the ones to invest in and watch out for in the coming months.