6 Benefits of Investing in Cryptocurrencies

ICO is short for initial coin offering. When launching a new cryptocurrency or crypto-token, developers offer investors a limited number of units in exchange for Bitcoin or other major cryptocurrencies such as Ethereum.

ICOs are amazing tools for rapidly raising funds to support new cryptocurrencies. The tokens offered during the ICO can be sold and traded on cryptocurrency exchanges if there is sufficient demand for them.

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

A brief history of ICOs

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

Mastercoin is another cryptocurrency that sold several million tokens for Bitcoin during its ICO in 2013 as well. Mastercoin aims to tokenize Bitcoin transactions and execute smart contracts by creating a new layer on top of the existing Bitcoin code.

Of course, there are other cryptocurrencies that have been successfully funded through ICOs. In 2016, Lisk raised nearly $5 million during its initial coin offering.

Nevertheless, Ethereum’s ICO in 2014 is probably the most prominent so far. During the ICO, the Ethereum Foundation raised almost $20 million by selling ETH for 0.0005 Bitcoins each. Ethereum has ushered in the next generation of initial coin offerings, harnessing the power of smart contracts.

Ethereum’s ICO is a recipe for success

Ethereum’s smart contracts system implemented the ERC20 protocol standard, which defines the basic rules for creating other compatible tokens that can be transacted on Ethereum’s blockchain. This allowed others to create their own ERC20-compliant tokens that could be traded for ETH directly on the Ethereum network.

The DAO is a notable example of the successful use of Ethereum’s smart contracts. The investment company raised $100 million worth of ETH, and investors received DAO tokens in exchange, which allowed them to participate in the management of the platform. Unfortunately, the DAO failed after it was hacked.

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

This made it very easy to invest in other ERC20 tokens as well. You simply transfer ETH, stick the contract in your wallet and the new tokens will appear in your account so you can use them as you wish.

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

Legal status of ICOs

There is a bit of a jungle out there when it comes to the legality of ICOs. In theory, tokens are traded as digital goods rather than financial assets. Most jurisdictions have yet to regulate ICOs, so the entire process should be paperless, assuming founders have experienced attorneys on their teams.

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

Back in December 2017, the US Securities and Exchange Commission (SEC) classified ICO tokens as securities. In other words, the SEC was preparing to stop ICOs that investors considered fraudulent.

There are some cases where a token is just a useful token. This means that the owner can simply use it to access a particular network or protocol, in which case they cannot be identified as financial security. Nevertheless, equity tokens, whose purpose is to appreciate in value, are quite close to the concept of security. To be honest, most token purchases are made specifically for investment purposes.

Despite the efforts of regulators, ICOs still remain in a gray legal area, and until a clearer set of rules is in place, entrepreneurs will try to take advantage of Initial Coin Offerings.

It’s also worth noting that once the regulations are finalized, the cost and effort required to comply may make ICOs less attractive than conventional funding options.

Last words

For now, ICOs remain an amazing way to fund new cryptocurrency projects, and there are many more successful projects to come.

But remember that everyone is launching ICOs these days, and many of these projects are scams or lack the solid foundation needed to grow and make the investment worthwhile. For this reason, you should definitely do your due diligence and research the team and background of any crypto project you want to invest in. There are many websites out there that list ICOs, just do a Google search and you will find some options. .

One of the main principles of blockchain technology is to provide users with unbreakable privacy. As the first decentralized cryptocurrency, Bitcoin relied on this premise to market itself to a wider audience that needed a virtual currency that was free from government interference at the time.

Unfortunately, along the way, Bitcoin has proven to be riddled with a number of weaknesses, including non-scalability and a volatile blockchain. All transactions and addresses are recorded on the blockchain, making it easy for anyone to connect the dots and unlock users’ personal details based on their existing records. Some government and non-government agencies are already using blockchain analytics to read data on the Bitcoin platform.

Such drawbacks have led developers to look at alternative blockchain technologies with improved security and speed. One of these projects is Monero, commonly represented by the ticker XMR.

What is Monero?

Monero is a privacy-oriented cryptocurrency project whose main goal is to provide better privacy than other blockchain ecosystems. This technology protects users’ data through hidden addresses and Call signatures.

A secret address refers to the creation of a single address for solo operation. Two addresses cannot be linked to one transaction. The received coins go to a completely different address, making the whole process ambiguous to an outside observer.

A ring signature, on the other hand, refers to mixing account keys with public keys, thus creating a “ring” of multiple signers. This means that the monitoring agent cannot associate the signature with a specific account. Unlike cryptography (the mathematical method of securing crypto projects), ring signature is not a new kid on the block. Its principles were studied and documented by the Weizmann Institute and MIT in 2001.

Cryptography has certainly won the hearts of many developers and blockchain enthusiasts, but the truth is that it is still an emerging tool that is underutilized. Monero has already distinguished itself as a legitimate project worth adopting because it uses the proven Ring signature technology.

Things you need to know before you start trading Monero

Monero market

The Monero market is similar to that of other cryptocurrencies. If you want to buy it, Kraken, Poloniex and Bitfinex are some of the exchanges to visit. Poloniex was the first to adopt it, followed by Bitfinex and finally Kraken.

This virtual currency seems to be mostly pegged against the dollar or cryptocurrencies. Some of the available pairings include XMR/USD, XMR/BTC, XMR/EUR, XMR/XBT and more. The trading volume and liquidity record of this currency are very good statistics.

One of the good things about XMR is that anyone can participate in its mining, either individually or by joining a mining pool. Any computer with reasonably good processing power can mine Monero blocks in a few hiccups. Don’t bother going for ASICS (application specific integrated circuits) which are currently mandatory for Bitcoin mining.

Price volatility

Despite being a huge cryptocurrency network, it is not that special when it comes to volatility. Almost all altcoins are extremely volatile. This shouldn’t bother any avid trader because this is what makes them profitable in the first place – you buy when prices are falling and sell when they are in an uptrend.

In January 2015, XMR was going for $0.25, then in May 2017 it ran up to $60 and is currently bowling above $300. Monero coin recorded an ATH (all-time high) of $475 on January seventh before starting to fall to $300 along with other cryptocurrencies. At the time of this writing, almost all decentralized currencies are in a price correction, and Bitcoin is climbing to $10-11k from its spectacular ATH of $19,000.

Fungibility and acceptance

Due to its ability to offer reliable privacy, XMR has been adopted by many people to easily exchange their coins for other currencies. Simply put, Monero can easily be traded for something else.

All bitcoins on the Bitcoin Blockchain are recorded and therefore, when an event such as a theft occurs, every coin involved is disabled, making them immutable. With Monero, you cannot distinguish one coin from another. Therefore, no seller can reject any of them because it is associated with a bad event.

The Monero blockchain is currently one of the trendiest cryptocurrencies with a significant following. Like most other blockchain projects, its future looks great despite impending government crackdowns. As an investor, you should do your due diligence and research before trading any Cryptocurrency. If possible, seek help from financial experts to get you on the right track.

The life expectancy of people all over the world has increased by leaps and bounds. It has increased by 50% compared to the 1950s, and by 30% compared to the 1980s. Long gone are the days when only company-sponsored pension plans were enough to see one’s golden years comfortably and worry-free.

Today, with other expenses such as housing, education, healthcare and more rising, many people find it increasingly difficult to save for retirement.

Unfortunately, the hard truth is that people of all generations, from baby boomers to millennials, are not saving enough for retirement. Austerity is one of the most underrated epic crises worldwide.

“Retirement is complicated. It’s never too early or too late to start preparing for retirement.”

So, people try to look for alternative opportunities that bring them higher returns in a shorter period of time. Traditionally, real estate, private equity and venture capital were required. Now a new and even more profitable way of making money and investing has joined the picture – enter cryptocurrencies.

Cryptocurrency Investments – For those who don’t want to put all their eggs in one basket

One of the biggest advantages of cryptocurrency investments is that it separates your portfolio from reserve currencies. Let’s say if you live in the UK, if you’re into equity, you’ll have shares in UK-based companies in your retirement portfolio. What will happen to your portfolio if the British pound crashes? And given today’s volatile political scenario around the world, nothing is certain.

That’s why cryptocurrency investments make the most sense. With digital currency investments, you effectively create a basket of digital coins that act as an effective hedge or safe bet against reserve currency weakness.

The average investor should allocate only a small portion of their retirement assets to cryptocurrency due to its volatility. But volatility can go both ways—think health care stocks in the 1950s and tech stocks in the 1990s. Smart early investors were the ones who made it big.

Don’t get left behind or get lost. Include cryptocurrency in your assets to start building a truly diversified portfolio.

Breaking the Wall – Increase your confidence in Cryptocurrencies

One of the biggest and main obstacles that first-time cryptocurrency investors face is their inability to trust digital currencies. Many people, especially people who are not tech savvy or are close to retirement, don’t realize what a promotion is. Unfortunately, they fail to realize and appreciate the countless potential of cryptocurrency.

The reality is – Cryptocurrencies are one of the most secure assets backed by the latest technology. The blockchain technology that powers digital currencies enables instant and indelible trades without the need for third-party verification. It is a peer-to-peer based system that is completely open and works on advanced cryptographic principles.

Retirement Planning Funds Should Work on Demystifying Cryptocurrencies

To build trust and gain the support of individuals, retirement planning funds must educate investors about the endless potential of cryptocurrencies. To do this, they need advanced analytics that help them make reliable risk analysis, risk/return metrics and forecasts.

In addition, investment firms can set up dedicated cryptocurrency advisory services to help and guide new investors. In the coming years, we can expect several AI-based smart advisors to appear on the scene – they will help calculate the right investments based on an individual’s time horizon, risk tolerance and other factors.

Human advisors can work alongside these smart advisors and provide personalized advice and other suggestions to clients as needed.

The need for more visibility and comprehensive control

Retirement investors looking to add cryptocurrency to their asset portfolio require greater control and visibility when experimenting with this new asset. Look for platforms that allow you to consolidate all your assets in one place. An integrated solution that allows you to manage and balance all your assets, including traditional assets like bonds and stocks with new asset classes like cryptocurrency wallets.

Having such a comprehensive platform supporting all your assets gives you a unified portfolio analysis that helps you make better and more informed decisions. So you reach the ultimate goal of saving for your goals faster.

Look for investment planning portals that provide additional features such as periodic contributions to cryptocurrencies at scheduled or unscheduled intervals.

Advances in Cryptocurrency Investment Support Technologies

Cryptocurrency investing will only become mainstream when the supporting technology makes it possible for investors, even new investors with no know-how, to trade coins seamlessly. It should be possible to exchange one digital coin for another, or even for fiat currencies and other non-tokenized assets. When possible, this will remove middlemen from the equation, thereby reducing costs and surcharges.

As the technologies that support cryptocurrency investing and trading mature, the value of digital currencies will increase as the currency becomes mainstream with greater accessibility. This means that early adopters will reap big profits. As more and more retirement investment platforms integrate cryptocurrency, the value of digital currencies is bound to increase, offering significant gains to early adopters like you.

If you’re wondering whether such retirement investment platforms will take a few years to see the light of day, you’d be wrong. Auctus is one such portal which is currently in Alpha stage. It is a first-of-its-kind retirement portfolio platform that integrates digital currencies. Auctus users can receive investment advice from both human and AI powered analytics tools.

Currently, users can save for retirement using Bitcoins, Ethereum and several other digital currencies. In addition, users can take advantage of the Automated rebalancing feature, which allows them to automatically adjust their portfolios using a set of predefined rules.

This holistic approach enables users to achieve their retirement goals faster by making smart and sound investment choices or decisions.

Final Thoughts – Cryptocurrencies should not be overlooked in your retirement portfolio

Yes, it is true that cryptocurrencies are very volatile. In fact, there is speculation on the internet that “cryptocurrencies are nothing more than a get-quick scheme” and the bubble is likely to burst at some point in the near future.

The uncertainty doesn’t mean cryptocurrencies shouldn’t be part of your retirement portfolio, even if your investment horizon is short. On the other hand, the current decline in cryptocurrency prices in 2018 means that you have a rare opportunity to make a profit.

Greater confidence, unified and directly manageable investment management capabilities, and advances in supporting technologies ensure that digital currencies are an excellent investment choice to include in your retirement portfolio.

Rich rewards often come with huge risks, and the same is true of the highly volatile cryptocurrency market. Uncertainties in 2020 have led to increased interest of the masses and large institutional investors globally in trading cryptocurrencies, a new age asset class. Increasing digitization, a flexible regulatory framework and the Supreme Court’s lifting of a ban on banks dealing with cryptocurrency companies have put more than 10 million Indians off their investments in the past year. Several major global cryptocurrency exchanges are actively exploring the Indian cryptocurrency market, which has seen a steady increase in daily trading volume over the past year amid a steep drop in prices as many investors look to buy value. As the cryptocurrency craze continues, many new cryptocurrency exchanges have sprung up in the country, offering functionality through user-friendly apps that allow you to buy, sell and trade. WazirX, India’s largest cryptocurrency trading platform, increased its users from one million to two million between January and March 2021.

What is driving the world’s largest cryptocurrency exchanges to the Indian market?

Binance, the world’s largest cryptocurrency exchange by trading volume, acquired Indian trading platform WazirX in 2019. Another cryptocurrency startup, Coin DCX, secured investment from Seychelles-based BitMEX and San Francisco-based giant Coinbase. Cryptocurrency and blockchain startups in India have attracted USD 99.7 million in investments till June 15, 2021, up from USD 95.4 million in 2020. In the past five years, global investment in the Indian cryptocurrency market has grown one-fold. a large 1487%.

Despite India’s uncertain policies, global investors are betting big on the country’s digital coin ecosystem due to various factors.

• Tech-savvy Indian Population

The dominant population of 1.39 billion is young (median age 28-29) and tech-savvy. While the older generation still prefers to invest in gold, real estate, patents or stocks, the newer ones are embracing them as they are more adaptable to high-risk cryptocurrency exchanges. India is ranked 11th in global cryptocurrency adoption in Chainalysis’ 2020 report, which shows the excitement about crypto among the Indian population. The government’s attitude towards cryptocurrency or the rumors surrounding it cannot shake the confidence of the youth in the digital coin market.

India offers the cheapest internet in the world, where one gigabyte of mobile data costs around $0.26, compared to the global average of $8.53. Thus, almost half a billion users enjoy the affordable internet, fueling India’s potential to become one of the world’s largest crypto economies. According to SimilarWeb, the country is the second largest source of internet traffic to peer-to-peer bitcoin trading platform Paxful. While the mainstream economy is still struggling with the “pandemic effect”, cryptocurrency is gaining momentum in the country, providing the younger generation with a new and faster way to earn money.

It’s safe to say that cryptocurrency can become Indian millennials what gold is to their parents!

• Rise of Fintech Start-ups

The cryptocurrency craze has spawned many trading platforms such as WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin and many others. These cryptocurrency exchanges are highly secured, accessible across multiple platforms, and enable instant transactions by providing a friendly interface for cryptocurrency enthusiasts to buy, sell or trade digital assets without limits. Many of these platforms accept INR as low as 0.1% for purchases and trading fees, so simple, fast and secure platforms offer a profitable opportunity for both first-time investors and local traders.

WazirX is one of the leading cryptocurrency exchange platforms with more than 900,000 users and provides customers with peer-to-peer transactions. CoinSwitch Kuber provides the best cryptocurrency exchange platform for Indians and is ideal for both beginners and everyday workers. Unocoin is one of the oldest cryptocurrency exchange platforms in India, reaching over a million traders through mobile apps. CoinDCX provides users with 100+ cryptocurrencies to exchange and even provides insurance to investors to cover losses in the event of a security breach. Hence, global investors are looking at the plethora of cryptocurrency exchange platforms in India to take advantage of the emerging market.

• Mixed Government Responses

A bill to ban virtual currency, criminalizing anyone involved in the ownership, issuance, mining, trading and transfer of crypto-assets, could be enacted. However, Finance and Corporate Affairs Minister Nirmala Sitharaman allayed the concerns of some investors by saying that the government does not plan to completely ban the use of cryptocurrency. In a statement to the leading British newspaper Deccan Herald, the Finance Minister said, “From our side, we are very clear that we will not close all options. We will allow certain windows for people to experiment with blockchain, bitcoins, or cryptocurrency.” It is clear that the government is still investigating the national security risks posed by cryptocurrencies before deciding on a full ban.

In March 2020, the Supreme Court overturned the central bank’s decision to ban financial institutions from dealing in cryptocurrencies, prompting investors to flock to the cryptocurrency market. Despite the fear of a ban, the volume of transactions continued to grow, and user registrations and money inflows on the local crypto-exchange increased by 30 times compared to a year ago. One of India’s oldest exchanges, Unocoin added 20,000 users in January and February 2021. In February 2021, the total volume of Zebpay equaled the volume generated during the entire month of February 2020. Addressing the cryptocurrency scenario in India, the Finance Minister told CNBC-TV18 in an interview, “I can only give you this hint that we are not closing our minds, we are looking at the ways in which experiments can happen in the digital world and in cryptocurrency.”

Instead of sitting on the sidelines, investors and stakeholders want to make the most of the proliferation of the digital coin ecosystem until the government bans “private” cryptocurrency and declares a sovereign digital currency.

Is India Moving Towards Financial Inclusion with Cryptocurrency?

Once considered a “Boys Club” due to the male dominance of the cryptocurrency market, the steady increase in the number of female investors and traders has led to a new and digital form of investment methods that are more gender neutral. Earlier, women used to stick to traditional investments, but now they are becoming risk takers and entering the crypto space in India. CoinSwitch has witnessed an exponential growth of 1000% in the number of women users after the apex court clarified the legality of Indian cryptocurrency platform ‘virtual currency’. Although women investors still constitute a small part of the crypto community, they face fierce competition in the Indian market. Women tend to save more than their male counterparts, and more savings means more diversity in investments, such as high-yielding assets like cryptocurrencies. Also, women are more analytical and assess risks better before making the right investment choice, so they are more successful investors.

Increasing mainstream institutional adoption of cryptocurrencies

The uncertainty and panic caused by SARS-Covid 19 led to a liquidity crisis even before the economic crisis began. Many investors converted their stocks to cash to protect their finances, which resulted in lower bitcoin and altcoin prices. But even though cryptocurrency suffered a major crash, it still managed to be the best-performing asset class of 2020. With the increased vulnerability of the system and the loss of faith in central bank policies and money in its current design, people have a growing appetite for digital currencies, which has resulted in the return of cryptocurrency. Due to the excellent performance of cryptocurrency in the midst of the global financial crisis, the bullish trend has fueled interest in the virtual currency market in Asia and the rest of the world.

In addition, to increase society’s demand for convenient and secure transaction solutions, digital payment gateways such as PayPal have also demonstrated support for cryptocurrencies that allow consumers to store, buy or sell virtual assets. Recently, Tesla CEO Elon Musk announced that he is investing USD 1.5 billion in the cryptocurrency market and that the electric company will accept bitcoin from buyers, which caused the international price of bitcoin to rise from USD 40,000 to USD 48,000 in two periods. days. Two of the world’s largest payment platforms, Visa and Mastercard, also endorse cryptocurrencies as a means of making transactions. While Visa has already announced that it will allow transactions with stablecoins on the Ethereum blockchain, Mastercard will begin transactions with the cryptocurrency in 2021.

What does the future hold for the cryptocurrency market in India?

The Indian cryptocurrency market is not immune to horrific cryptocurrency crashes. Despite huge investments from global counterparts, local investors are still staying away from cryptocurrency investments due to uncertainty about the legality of the digital coin ecosystem in India and high market volatility. Although the cryptocurrency market has grown rapidly since last year, Indians own less than 1% of the world’s bitcoin, putting the Indian economy at a strategic disadvantage. The Indian government plans to appoint a new panel to study the possibilities of regulating digital currencies in the country and also focus on blockchain technology and suggest for technological improvements.

Blockchain technology’s ability to provide a secure and immutable infrastructure has been implemented by various industries to instill transparency in transactions. For a country with more than 15 million cryptocurrencies, the committee’s new recommendation could be of great value in determining the future of cryptocurrency in India. However, stakeholders believe that technical and economic strength will make India a major player in the cryptocurrency and blockchain market. Gradually, cryptocurrency is gaining mainstream acceptance, which may lead to higher adoption of digital currency.

According to another TechSci Research “The Indian Cryptocurrency Market By Offering (Hardware & Software), By Process (Mining & Transaction), By Type (Bitcoin, Etgereum, Bitcoin Cash, Ripple, Dashcoin, Litecoin, Others), By End User (Banking, Real Estate, Stock Exchange & Virtual Currency ) , Region, Forecast & Opportunities, 2026″, Indian cryptocurrency is expected to grow at a significant CAGR due to increasing demand for transparency and decreasing transaction costs. In addition, growing adoption of digital currency and growing blockchain technology are fueling the Indian cryptocurrency market.

In the first days of its launch in 2009, several thousand bitcoins were used to buy a pizza. Since then, the cryptocurrency’s rise to $65,000 in April 2021, after falling nearly 70 percent to $6,000 in mid-2018, has boggled the minds of many people—cryptocurrency investors, traders, or just the curious. missed the boat.

How it all started

Note that dissatisfaction with the current financial system led to the development of digital currency. The development of this cryptocurrency is based on blockchain technology by Satoshi Nakamoto, a pseudonym apparently used by a developer or group of developers.

Despite numerous opinions predicting the death of cryptocurrency, bitcoin’s performance has inspired many other digital currencies, especially in recent years. The success with crowdfunding brought on by blockchain fever has also attracted the unsuspecting public to fraud, which has caught the attention of regulators.

Beyond Bitcoin

Bitcoin inspired the launch of many other digital currencies, Currently there are more than 1000 versions of digital coins or tokens. They are not all the same and their value varies widely, as does their liquidity.

Coins, altcoins and tokens

Suffice it to say at this point that there are fine differences between coins, altcoins, and tokens. Although altcoins such as Ethereum, litecoin, ripple, dogecoin and dash fall under the ‘mainstream’ category of coins, they are mostly traded on cryptocurrency exchanges, meaning that altcoins or altcoins generally describe something other than mainstream bitcoin.

Coins serve as a currency or store of value, while tokens offer an asset or utility use, such as a blockchain service for supply chain management to verify and track wine products from winery to consumer.

It’s worth noting that low-value tokens or coins offer positive opportunities, but don’t expect the same meteoric growth as bitcoin. Simply put, little-known tokens can be easy to buy but hard to sell.

Before getting started with cryptocurrency, start by learning the value proposition and technology considerations, i.e. the commercial strategies outlined in the white paper that accompanies every initial coin offering or ICO.

For those familiar with stocks and shares, this is no different than an initial public offering or IPO. However, IPOs are issued by companies with tangible assets and business experience. All this is done in a regulated environment. On the other hand, an ICO is based purely on an idea proposed in a white paper by a business – which is still operational and has no assets – looking for funds to start.

Uncontrolled, so buyers beware

The situation with digital currency is probably ‘the unknown cannot be regulated’. Regulators and regulations are still trying to catch up with the ever-evolving cryptocurrencies. The golden rule in the crypto space is caveat emptor, buyer beware.

Some countries are open-minded in adopting a hands-off policy for cryptocurrencies and blockchain applications, while focusing on outright scams. However, in other countries, there are regulators who are more concerned with the negative aspects of digital money than the positive ones. Regulators generally recognize the need to strike a balance, and some are looking to existing securities laws to try to manage the many flavors of cryptocurrencies globally.

Digital wallets: The first step

A wallet is essential to start cryptocurrency. Think electronic banking, but in the case of virtual currency, exclude the protection of the law, so security is the first and last consideration in the crypto space.

Wallets are digital. There are two types of wallets.

• Internet-connected hot wallets that put users at risk of being hacked

• Cold wallets that do not connect to the Internet and are considered more secure.

Apart from the two main types of wallets, it is worth noting that there are wallets for only one cryptocurrency, while others are wallets for multiple cryptocurrencies. There is also the possibility of having a multi-signature wallet, having a joint account with some banks.

The choice of wallet depends on the user’s choice, purely interested in bitcoin or ethereum, since each coin has its own wallet, or you can use a third-party wallet with security features.

Wallet notes

A cryptocurrency wallet contains a public and private key with private transaction records. A public key contains a reference to a cryptocurrency account or address, as opposed to the name required to receive a check payment.

The public key is publicly available, but transactions are only confirmed after verification and validation based on a consensus mechanism specific to each cryptocurrency.

A private key can be considered a PIN code widely used in e-financial transactions. It follows that the user should never disclose the private key to anyone and should not back up this data, which should be kept offline.

It makes sense to have a minimal amount of cryptocurrency in a hot wallet, and a larger amount in a cold wallet. Losing your private key is as good as losing your cryptocurrency! The usual precautions for online financial transactions apply, from strong passwords to being aware of malware and phishing.

Wallet formats

Different types of wallets are available to suit individual preferences.

• Hardware wallets developed by third parties and must be purchased. These devices work like a USB device, which is considered somewhat secure and is only connected when the Internet is needed.

• For example, web-based wallets provided by cryptocurrency exchanges are considered hot wallets that put users at risk.

• Software-based wallets for desktop computers or mobile phones are mostly free and may be provided by coin issuers or third parties.

• Paper-based wallets can be printed in QR code format displaying relevant information about the cryptocurrency that holds the public and private keys. These should be kept in a safe place until required during a cryptocurrency transaction, and copies should be made in case of accidents such as water damage or print data fading over time.

Cryptocurrencies and markets

Crypto exchanges are trading platforms for those interested in virtual currencies. Other options include websites for direct trading between buyers and sellers, as well as brokers, where there is no “market” price but a trade-off between the parties to the transaction.

Thus, there are many cryptocurrency exchanges located in different countries but with different security practices and infrastructure standards. They consist of anonymous registrations that only require an email to open an account and start trading. However, there are others that require users to comply with international identity verification and anti-money laundering (AML) measures known as Know Your Customer.

The choice of cryptocurrency depends on the user’s choice, but anonymous ones may have restrictions on the permissible limits of trading or may be subject to sudden new regulations in the country where the exchange resides. Minimal administrative procedures with anonymous registration allow users to trade quickly while going through KYC and AML processes, which will take more time.

All crypto trades must be properly processed and confirmed, which can take anywhere from a few minutes to a few hours depending on the coins or tokens traded and the volume of the trade. Scalability is known to be a problem with cryptocurrencies, and developers are working on ways to find a solution.

Cryptocurrency exchanges fall into two categories.

• Fiat-Crypto-Currency Such exchanges provide the purchase of fiat-crypto-currency through direct transfers from banks or credit and debit cards, or ATMs in some countries.

• Cryptocurrency only. There are crypto-only cryptocurrency exchanges, which means that customers must already own a cryptocurrency — such as bitcoin or ethereum — to “exchange” it for other coins or tokens based on the market rate.

Fees are charged to facilitate the buying and selling of cryptocurrencies. Users should do their research to ensure they are satisfied with the infrastructure and security measures and also determine the fees they are comfortable with as different exchanges charge different rates.

Don’t expect a common market price for the same cryptocurrency on different exchanges It may be worthwhile to spend time researching the best price for the coins and tokens you are interested in.

Online financial transactions carry risks, and users should consider warnings such as two-factor authentication or 2-FA, keep up-to-date on the latest security measures, and be aware of phishing scams. One of the golden rules when it comes to phishing is to never click on provided links, no matter how genuine the message or email is.

Startups moving towards blockchain technology in 2018!

The first application of blockchain technology to gain worldwide attention is Bitcoin, the first digital currency. Blockchain creates a decentralized ledger that runs on a network of smart contracts. Blockchain can provide high security by using the concept of public and private keys for authentication. Thus, blockchain technology can be used in any industry where value is exchanged. This technology has more applications than just cryptocurrencies.

Below is a list of startups that will bring change in the future –

Agrello

It is an Estonian company. Since smart contracts are a huge component of cryptocurrency and blockchain transactions, Agrello hopes to revolutionize them.

It aims to combine legal documents with artificial intelligence to bring smart contracts to the general public without a comprehensive blockchain experience. Agrello’s creates an interface that allows users to easily create their own legally binding smart contracts on the Ethereum network. For this, they do not need to have extensive programming experience or legal knowledge.

Elastos

Elastos started in 2000. It focuses on the development of an internet operating system that re-decentralizes the internet with blockchain. It produces a secure new operating system (Dapps) that works peer-to-peer without centralized control. It aims to make digital assets rare, recognizable and tradable.

Everex

Everex provides currency exchange, microfinance, and more to people without access to standard financial institutions. plans to give a chance to use such services. They will create a platform using blockchain technology called “cryptocash”. Users can convert their local currency to cryptocurrency through the Everex platform. This cryptocurrency token will gain value equal to the specified fiat currency.

Puregold.io

Founded in 2010, Puregold becomes the first payment gateway to use gold-backed cryptocurrency. The name of the gateway is called “PG_PAY”. This includes various payment terminals, Gold ATMs and highly secure mobile money transactions. The Puregold team used Ethereum blockchain technology and successfully created an e-commerce gold business network consisting of a gold-backed cryptocurrency.

There are many blockchain applications emerging to make things more organized and secure.

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For some time now, I have been closely watching the performance of cryptocurrencies to get a feel for where the market is headed. The routine my elementary school teacher taught me—where you wake up, pray, brush your teeth, and eat breakfast—has changed to waking up a bit, praying, and then going online (starting with coinmarketcap) to find out what cryptocurrencies are. Red.

The beginning of 2018 has not been kind to altcoins and related assets. Their performance has been crippled by bankers’ frequent speculation that the cryptocurrency bubble is about to burst. Despite this, ardent cryptocurrency followers are still HODLing and, truth be told, reaping big.

Bitcoin recently dropped to almost $5,000; Bitcoin Cash approached $500, while Ethereum found peace at $300. Almost every coin was a hit except for the newcomers who were still in the excitement phase. As of this writing, Bitcoin is back on track and trading at $8,900. Many other cryptocurrencies have doubled since the start of the uptrend, with market capitalization ranging from $250 billion to $400 billion.

If you are slowly getting used to cryptocurrencies and want to become a successful trader, the following tips will help you.

Practical tips on trading cryptocurrencies

• Start with humility

You’ve already heard that cryptocurrency prices are skyrocketing. You’ve probably already heard that this bullish trend won’t last long. Some opponents, mostly respected bankers and economists, continue to call them get-rich-quick schemes with no solid foundation.

Such news will not make you rush to invest and apply moderation. A little analysis of market trends and currencies worth investing in can guarantee you good returns. Whatever you do, don’t invest all of your hard-earned money in these assets.

• Understand how exchanges work

I recently saw a friend of mine post a Facebook feed about one of his friends who was trading in an exchange, he had no idea how it worked. This is a dangerous move. Always review the site you want to use before you sign up or at least start trading. If they provide a dummy account to play with, then take this opportunity to see what the scoreboard looks like.

• Don’t insist on trading everything

There are over 1,400 cryptocurrencies available for trading, but it’s impossible to deal with all of them. Spreading your portfolio across more cryptocurrencies than you can effectively manage will minimize your profits. Just pick a few of them, read more about them and how to get their trading signals.

• Stay alert

Cryptocurrencies are volatile. This is both their bane and blessing. As a trader, you must understand that wild price swings are inevitable. Uncertainty about when to make a move makes one an ineffective trader. Use hard data and other research methods to make sure when to trade.

Successful traders belong to various online forums where cryptocurrency discussions are held regarding market trends and signals. Of course, your knowledge may be sufficient, but you should rely on other traders for more relevant information.

• Diversify meaningfully

Almost everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies used in the real world. There are a few bad coins you can deal with to make a quick buck, but the best cryptocurrencies to deal with are the ones that solve the existing problems. Coins used in the real world tend to be less volatile.

Don’t diversify too early or too late. Make sure you know the market cap, price changes and daily trading volume of any crypto-asset before making the move to buy it. Keeping a healthy portfolio is the way to get great returns from these digital assets.