Archive for Cryptocurrencies – Page 2

Bitcoin Speculators slightly edged their net bearish positions higher

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Bitcoin Non-Commercial Speculator Positions:

Large cryptocurrency speculators slightly added to their bearish net positions in the Bitcoin futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Bitcoin futures, traded by large speculators and hedge funds, totaled a net position of -1,945 contracts in the data reported through Tuesday June 12th. This was a weekly lowering of -19 contracts from the previous week which had a total of -1,926 net contracts.

Speculative bearish positions edged higher for a third straight week and to a new highest bearish level since February 6th when net positions totaled -2,040 contracts.

Small traders, meanwhile, also edged their existing bullish positions higher this week by an equally offsetting +19 contracts to the current level of 1,945 net contracts.

Bitcoin Futures COT Data: Speculators vs Small Traders

The Bitcoin futures data is in its twenty-sixth week since the beginning of the cryptocurrency futures data releases on December 19th. The data includes trader classifications of only speculators and small traders and without commercial traders (typically business hedgers or producers of a commodity).

Speculators have been on the bearish side since the start of the bitcoin data releases and remain bearish while the small traders continue to be on the bullish side of this market.

Bitcoin per USD:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Bitcoin Cryptocurrency Futures closed at approximately $6548.79 which was a decline of $-1038.46 from the previous close of $7587.25, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets. The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators). Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

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Fibonacci Retracements Analysis 15.06.2018 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

As we can see in the H4 chart, BTCUSD is still trading downwards; it has already passed through towards the post-correctional extension area between the retracements of 138.2% and 161.8%. The next downside target may be the retracement of 261.8% at 5875, but only after the instrument breaks the local low at 6120.30.

BTCUSD1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

As we can see in the H1 chart, the convergence made BTCUSD reverse and started a new ascending movement, which has already reached the retracement of 38.2%. The next upside target may be the retracements of 50.0% and 61.8% at 6930.00 and 7121.00 respectively.

BTCUSD2
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

 

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, ETHUSD is moving downwards and has already reached the post-correctional extension area between the retracements of 138.2% and 161.8% at 457.80 and 429.70 respectively. At the same time, the convergence is being formed, but the downtrend may yet continue.

ETHUSD1
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart, the convergence made ETHUSD reverse and start a new ascending correction, which has already reached the retracement of 38.2% and may continue towards the retracements of 50.0% and 61.8% at 537.60 and 558.70 respectively.

ETHUSD2
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Are ICO-Chaser Lawyers the New Ambulance-Chasers?

By Amie Parnaby

“Have you bought into an ICO in the past 3 years? Were you disappointed with the result? No win, No Fee…”

Have you ever heard “Have you had an accident in the past 3 years? No win, No Fee…” on a TV or radio advertisement? With the recent rash of civil lawsuits and class-action suits against some of the biggest cryptocurrency providers, I can’t help but feel it could soon change to “Have you bought into an ICO in the past 3 years…?”

It sounds silly, and maybe it is a little, but it’s not that far from the truth. With the number of people who bought into the crypto-craze that happened in 2017, investing in ICO’s without thorough research, and losing out when the bubble burst in late December.

This is only the beginning

There are a lot of people out there that bought into ICOs using Bitcoin or Ether and then sold at a loss when they didn’t get the return on their investment that they expected.

While a lot of people would probably think along the lines of “You sold too early” or “You didn’t do your research”, the litigation lawyers are making the most of ICOs that are operating in the grey area of financial law. In truth, the area is only grey because the cryptocurrency market is so new that no one has really thought to review these 80-year-old laws to reflect the current digital climate.

The majority of recent lawsuits have occurred in the U.S. (not really surprising), but there have been others in Norway (which they lost) and Australia. Unfortunately for the coin producing companies, there are set to be several more.

The recent class-action lawsuit served to Ripple means that the civil litigation lawyers are upping their game to the major leagues of cryptocurrency.

There will be a point when the number of civil cases won or lost will determine what the law-makers do to bring cryptocurrency into the fold of regulation. Will they try to make them fit the old pre-tech laws or will new ones be created? Whichever way it goes the effect will trickle down through the crypto community, affecting everything as it goes.

Not all bad news

The fact that most of the cases raised have been in the U.S. makes a difference. While there have been reports of financial litigation firms making lists of ICO’s to sue, their interest lies entirely on what they will get back from it. Much like the “No win, No Fee” personal injury lawyers, these financial litigation experts will recoup much of their costs from the ICOs they sue, plus a whole lot more to swell their coffers.

One of these lawyers, David Silver, has gone on record saying:

“I said into a camera that I planned on filing 30 (class actions against ICOs) in 30 days.”

He’s since retracted that number because there is less likelihood of suing and collecting from ICOs not based in the U.S. Consequently, there is less value in suing. There are significantly more non-U.S. based and registered ICOs than U.S. based. As a result, the trickle-down effect will have more impact on the U.S. based companies that had an initial ICO than those in other countries.

This is bad news for ICOs based in or strongly linked to the U.S. (they make perfect targets), but it is better news for all the rest. Assuming of course that the rest of the world doesn’t take its lead from America.

There is a shift happening already, with companies postponing their ICO’s until legislation is settled and moving their businesses away from the U.S., due to the litigious culture inherent there.

About the Author:

Amie Parnaby is a professional writer with an experience in a broad range of industries, from I.T to training, from optics to banking. Within these settings, Amie has provided quality web content, training materials and technical documentation. She is currently an in-house Content Writer at Leverate.

 

June 2018 bitcoin forecast

By Tina Pham, Alpari

Since the beginning of the year, market capitalisation has fallen by 44.3% from the level of 611bn USD. At the moment, the cryptocurrency market is estimated at 340bn USD. The shares of the top three leaders are 61.41% and are shown in Figure 1.

Fig.1

On the 29th of March, bitcoin’s market cap made some astonishing gains to reach 45.79%, which is the highest value since the beginning of the year, according to data from coinmarketcap. Now, the share of the cryptocurrency market leader has dropped to 38.15%. Also, from the 1st of January to today, the daily trading volume of bitcoin has fallen 2.8 times – from 12.4bn USD to 4.29bn USD, and its price plummeted 47%, dropping from 14,317 USD to 7,581 USD.

Fig. BTC daily

On the 5th of May, the price of bitcoin reached a Q2 high of 9,948 USD, while a low of 6,561 USD was recorded on 1 April.

If we examine the bitcoin chart from a technical analysis point of view, we can draw the following conclusions.

On the daily chart (D1), we can see that bitcoin is trading below the 23.6 Fib retracement level. Several bullish attempts to gain a foothold above this level have fallen short. Bitcoin underwent lateral movement after its February fall to 6,000 USD. The situation isn’t expected to change very much in June. The crypto-asset market is awaiting the G20 summit in July this year, where the fundamentals of the global regulation of digital currencies will be discussed. In my opinion, Q3 may prove successful for bitcoin holders, since newly enacted legislation may lead to certain big players, mainly institutional investors as mentioned earlier, entering the market.

Fig. bitcoin graph

It is expected that bitcoin will continue its lateral movement in June. Local support and resistance levels are at 6,300 USD and 9,600 USD respectively.

Source: June 2018 bitcoin forecast

 

Argo launches new crypto-mining service for mainstream consumers

Low-cost subscription service aims to fulfil global demand for mining

June 11th 2018, London, UK:  Argo, a UK-Canadian venture, is set to transform crypto-mining with the launch today of a new low-cost, flexible and easy-to-use service for users.

The service is aimed at addressing pent-up demand from users who want to benefit from mining digital currencies but have been put-off by its complexity and significant up-front cost.

The company’s solution is mining-as-a-service (MaaS), which enables users to commence crypto-mining without the need to have significant computing expertise or acquire complex and expensive hardware and have the frustration of setting up their own systems.  Users can start mining for digital currencies within minutes of accessing Argo’s website on a mobile phone or computer.

Using state-of-the-art computing hardware and mining software, the Argo platform also saves time and vastly improves user-experience.

Argo’s system was developed by a team of experienced technology experts including its co-founders Jonathan Bixby and Mike Edwards.

Mr Bixby said: “We have launched this service to take the pain and heartache out of participating in the biggest new technology breakthrough since the launch of the internet.”

Mr Edwards said: “Setting up a computer rig to mine cryptocurrency is challenging, inefficient and expensive. I knew that we had to change the game and democratise the process so that crypto-mining could become a mainstream consumer activity.”

The service is available to adults with a credit card for an introductory subscription fee as low as US$25 (£18) per month. Users have a choice to mine four digital currencies: Bitcoin Gold, Ethereum, Ethereum Classic and Zcash. Miners choose contracts on a monthly renewable basis.

Argo is headquartered in London, UK, with its initial data centre located in Quebec, Canada.

 

About Argo
Argo is a mining-as-a-software (MaaS) service provider that makes it easy for anybody to mine Bitcoin Gold, Ethereum, and other alternative coins (altcoins) through the cloud.  To get started, users access Argo’s website on a mobile device or personal computer, register with Argo, select a cryptocurrency and press go. By doing so, they are remotely connected to mining computers that do the mining for them. These machines are based in Argo’s datacentres in Canada. Mining through Argo avoids the need to acquire expensive hardware as well as incurring large electricity bills. Argo has sought to minimise its environmental impact by pooling more efficient resources and using green energy from hydropower. Users can also switch packages on a monthly renewable contract so they always have control over how much they spend and which currency they’re mining.

 

 

Bitcoin Speculators raised their bearish net positions for 2nd week

By CountingPips.comReceive our weekly COT Reports by Email

Bitcoin Non-Commercial Speculator Positions:

Large speculators raised their bearish net positions in the Bitcoin futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Bitcoin futures, traded by large speculators and hedge funds, totaled a net position of -1,926 contracts in the data reported through Tuesday June 5th. This was a weekly fall of -247 contracts from the previous week which had a total of -1,679 net contracts.

Speculative bearish positions rose for a second week and to the highest bearish level since February 6th when net positions totaled -2,040 contracts.

Small traders, meanwhile, increased their existing bullish positions higher this week by an equally offsetting +247 contracts to the current level of 1,926 net contracts.

Bitcoin Futures COT Data: Speculators vs Small Traders

The Bitcoin futures data is in its twenty-fifth week since the beginning of the cryptocurrency futures data releases on December 19th. The data includes trader classifications of only speculators and small traders and without commercial traders (typically business hedgers or producers of a commodity).

Speculators continue to be on the bearish side as they have been since the start of the bitcoin data releases while the small traders remain on the bullish side of this market.

Bitcoin per USD:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Bitcoin Cryptocurrency Futures closed at approximately $7587.25 which was an increase of $96.61 from the previous close of $7490.64, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets. The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators). Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

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Ethereum has taken the world by storm…but how does it work and why is it becoming so popular?

Article by King Passive

King Passive shares the basics of Ethereum, how it works and what it is used for in a condensed version of their Full Ethereum Guide.

1. What is Ethereum?

Ethereum can be thought of as a virtual supercomputer.

It’s designed as a platform to host applications that can run without the need for human interference.

These applications are called ‘Decentralized Apps’, and I’ll explain how they work later in this guide.

The cryptocurrency, Ether (usually referred to as Ethereum) is the currency or “utility token” that you pay to use this virtual network.

2. How Ethereum Works.

2.1. Ethereum Blockchain.

Like Bitcoin and other cryptocurrencies, Ethereum has it’s own blockchain.

This is like a record of all transactions on the Ethereum network. It’s stored on nodes (computers, miners, etc.) across the world.

However, while Bitcoin’s blockchain just stores transaction records, Ethereum’s blockchain also hosts smart contracts and decentralized applications (DApps).

Smart contracts are contracts programmed to run by themselves. In simple terms, this means: If x happens, y results.

(I’ll explain Smart Contracts in more detail below).

The Ethereum blockchain keeps a record of the latest execution of each smart contract.

2.2. How Do Transactions Work?

Transactions, whether they are simple money transfers or executions of smart contracts or DApps, require “gas”.

Gas can be thought of as transaction fees. You pay for gas using Ether.

Transaction fees go to miners (explained below).

2.3. What Is Ethereum Used For?

Since you can program different smart contracts and DApps on the Ethereum blockchain, Ethereum use cases are only limited by the imagination.

This potentially makes Ethereum more useful than single use cryptocurrencies, such as Bitcoin (payments). It’s also led to the coining of the term “Blockchain 2.0” (programmable transactions).

Ethereum’s innovation in this regard has even led to copycats trying to mimic Ethereum’s popularity and success.

Note: Want to see how Ethereum works in the ‘real world’?

Check out section 7 of this guide for some examples.

2.4. ​Smart Contracts.

As mentioned, smart contracts are contracts that are programmed to run by themselves.

So why is this helpful?

Smart contracts can eliminate the inefficiencies often caused by middlemen.

Sources: BlockChainHubPricewaterhouseCoopers

 

Smart contracts get rid of middlemen like banks and even service providers like Airbnb and Uber.

For example, banks are usually the ones that give people loans.

Instead of having a bank, smart contracts could be written so that loans are disbursed once certain conditions are fulfilled.

For instance, once you pay your loan amount, funds could be disbursed into your account automatically without the need for a loan collector.

For something like Airbnb, instead of having Airbnb connect renters and landlords, smart contracts could grant a renter access to an apartment once he or she makes a payment.

The examples are endless.

Smart contracts could be revolutionary and have the potential to upend many industries and business models.

​2.5. Mining Ethereum.

When you make a transaction, this transaction is broadcast to the Ethereum network.

Miners verify transactions and group them into blocks (groups of transactions), which are added to the blockchain (groups of blocks or all Ethereum transactions).

The way that miners verify Ethereum transactions is via “proof of work”. However, they are planning to move towards “proof of stake”.

Miners, using their mining devices, such as computers or specialized mining devices, perform computationally difficult work.

Whoever finishes this work first gets to add a new block to the blockchain.

For their efforts, miners are paid in transaction fees (gas paid for in Ether) and newly created Ether (if they finish the work first).

About the Author:

Article provided by King Passive – A site on cryptocurrency that has written on Blockchain, Bitcoin, ICOs, and more. See the Full Ethereum Guide Here

 

 

Can the Dash price explode?

By Mary Ann Callahan

In December, Dash’s price had an unbelievable spike, the kind that many cryptocurrencies have enjoyed over that last few years. The DASH to USD price jumped from a figure of just over $260 in November 2017 to an astronomical sum of $1,433.53 in the following month.

As with all big spikes, the Dash investors would have been hoping that it would hold at that figure, but it never happened. In April this year, it fell down to just below the $300 mark and currently sits at just above that figure.

A coin to be trusted

Dash markets itself as a privacy token which aims to achieve a greater level of security, when compared to the likes of Bitcoin. The main advantages of the coin are the security that it provides, but also the speed and the low cost of the transactions on its website make it a coin to be respected.

Over recent times, the rises and falls in Dash’s prices have mirrored that of Bitcoin. It seems as though the two are intertwined in the eyes of investors, which would possibly be due to Dash being based on Bitcoin’s core code. As time moves on, Dash will want to make efforts to move away from that shadow and carve their own path, and they have been making efforts to do just that.

In order to achieve this, Dash wants to continually improve the things that make it great, and more pertinently, the aspects of its coin that separate it away from Bitcoin. The scalability issues of Bitcoin have been well documented and there are many coins that have made attempts to be the one to make the most use of their failings. Dash hopes to be the coin that investors turn to when they are put off by Bitcoin’s issues.

How Dash set itself apart

What they have done to try and stand out from the crowd is launch a new payment system, which they call Dash Evolution. It could be a possible rival in the future for the ever-popular PayPal, as the system is slick and works extremely well. The system is very user-friendly and has appreciated the new social world that we live in, with incorporating an app store into the dashboard as well as a friends list.

Dash has taken what has been a challenging start to the year and has fought against it rather than succumbing to it. They are trying to take matters into their own hands by making effective changes which will make it stand out from the crowd.  They have yet to strike up the type of partnerships that other coins have been able to, but there are signs that it could be just about to change.

At the moment it appears as though Dash is struggling to show to the world that it should be more trusted that it is. The boost to its technology this year might be a sign that things are about to get a lot better for Dash. We have seen with the likes of Ripple in recent times what the announcement of a good partnership can do to the value of a coin, Dash will be hoping they are in line for such a boost.

Waiting for the spark

At times like these where a business is trying to prove itself and show to potential investors, sometimes all it needs is for one spark to ignite the flames. Once one trusted organization uses Dash, then others will follow. Dash will be hoping that their break comes sooner rather than later.

The Dash cryptocurrency solves many of the problems that are associated with Bitcoin and is starting to carve its own path into the world. Its technology is impressive and it is building a community that is one of the best in the industry. The Evolution payment system makes things clear and easy for everyone involved and will be very attractive for anyone looking to invest in the coin, especially those taking their first steps into the world of cryptocurrency.

Experts in marketing

A lot can be said about marketing too. Dash does it as well as anyone and their community actively engage in forums and across the web. From its original name of ‘Darkcoin’ and the natural associations with the dark web, Dash is trying to promote itself as the friendly face of digital currency.

That being said, it all means very little if you’re not getting a return on your investment. In recent times Dash hasn’t exactly set the market alight with its performance. Dash is a coin, though that feels like it is on the verge of greatness. They have been building the platform, crane and selecting the right astronauts, and now it feels like it’s waiting for that spark that will send that rocket sky-high.

Time to invest?

The best time to invest in a cryptocurrency isn’t when it is riding high and in the news, but rather when it’s just about to become that news story. Dash has proven to be a strong coin, but whether we’ll witness the price explosion any time soon is yet to be seen. It has an ever-increasing dependence from being affected by the performance of Bitcoin, so the signs of recovery for Bitcoin may well be a good news for the Dash investors as well.

When it comes to predicting the price of any cryptocurrency, the wisest decision to make is to follow the market sentiment, read the charts, and watch out for upcoming developments to the coin. Dash so far has been a dormant volcano, and it could be just a matter of time for it to explode. Let us see!

About the Author: Mary Ann Callahan

As an expert on Bitcoin-related topics, I’ve found myself as a Journalist at Cex.io – cryptocurrency exchange. I’m working on articles related to blockchain security, bitcoin purchase guides or bitcoin regulations in different countries.

Bitcoin Speculators edged their bearish net positions higher this week

By CountingPips.comReceive our weekly COT Reports by Email

Bitcoin Non-Commercial Speculator Positions:

Large cryptocurrency speculators nudged their bearish net positions up a tick this week in the Bitcoin futures markets, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Bitcoin futures, traded by large speculators and hedge funds, totaled a net position of -1,679 contracts in the data reported through Tuesday May 29th. This was a weekly decrease of -20 contracts from the previous week which had a total of -1,659 net contracts.

Speculators had decreased their bearish positions last week by 215 contracts.

Small traders, meanwhile, edged their existing bullish positions higher this week by an equally offsetting +20 contracts to the current level of 1,679 net contracts.

Bitcoin Futures COT Data: Speculators vs Small Traders

The Bitcoin futures data is in its twenty-fourth week since the beginning of the cryptocurrency futures data releases on December 19th. The data includes trader classifications of only speculators and small traders and without commercial traders (typically business hedgers or producers of a commodity).

Speculators are on the bearish side as they have been since the beginning of the bitcoin data releases while the small traders continue to be on the bullish side of this market.

Bitcoin per USD:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Bitcoin Cryptocurrency Futures closed at approximately $7490.64 which was a decline of $-580.39 from the previous close of $8071.03, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets. The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators). Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

Article By CountingPips.comReceive our weekly COT Reports by Email

Crypto – Heard the hype, now I want facts

By Amie Parnaby

You may be a complete trading newbie and maybe you’re an experienced trader, but you’ve heard all the news about the cryptocurrency market and you want in. Maybe you read the Financial Times or the Wall Street Journal to keep on top of the economic news, but do you really know enough to jump into crypto?

Probably not.

What is Cryptocurrency?

In short, cryptocurrencies are digital money created on encrypted software called a transaction blockchain. That encryption software also verifies all transactions. Currency is created on the blockchain by ‘mining’. Every time a transaction is made it is added to the blockchain ledger, making it public and irreversible.

The software is spread around the globe on hundreds of decentralised machines called ‘nodes’. A ‘full node’ carries a complete copy of the blockchain while other ‘nodes’ only carry fractions. There is no central storage point for all of this information so it can never be a single point of weakness in the transaction chain.

Every time a node is used to perform a transaction, using computational power (and let’s face it, electricity), it is paid in the newly created digital currency. That’s how new currency is created and how ‘miners’ accumulate their cryptocurrency.

As more service and retail providers begin to accept Bitcoin, Ethereum and Litecoin (to mention a few) as valid payment, the more it strengthens the cryptocurrency standing as an actual currency, rather than a digital asset.

Where do I start and what do I need?

Firstly decide what you want to do with cryptocurrency. Do you want to trade it against fiat currency? There are plenty of brokers and platforms available that do that. If you are already an active trader there is a fair chance that you can do the same with crypto through your current platform. However, leverage against crypto trading as CFD tends to be Low.

If you want to invest in cryptocurrency it is a different animal altogether.

Unlike trading stocks or the Forex market, entering the realm of cryptocurrency has fewer barriers for the small first-time investor. The initial investment doesn’t need to be high and while volatile crypto markets may wipe value from your coins, you still own the currency and can try to wait it out (no guarantees on that score though).

Three things you need in order to start:

  • Money– Good old-fashioned fiat money. Most fiat-crypto exchanges work in US Dollars (USD, $), but some have included other currencies such as Euro (EUR), Canadian Dollar(CAD), British Pound (GBP), Japanese Yen (JPY) and Hong Kong Dollar (HKD). There are more, but the two main fiat currencies accepted are USD and EUR. Other currencies will need to go through an exchange process first.

*Just remember that it needs to be an amount you can comfortably live without, potentially for the long-term.

  • Wallet – You NEVER leave your digital currency on an exchange, so you will need a wallet before you even go near an exchange. Do your homework and find the one that works for you. If you are looking to diversify into cryptocurrencies other than Bitcoin, you’ll want something that can handle that. There are several out there; web-based, desktop, mobile, and hardware. You can even have a paper wallet.
  • Bitcoin (or Ethereum)– This is your final point for entering crypto-land. Bitcoin is the one everyone has heard of and the one that all exchanges support. It was the first and is still the biggest. The number of exchanges that allow fiat-crypto exchange is small in comparison to the number of exchanges out there and they tend to have higher transaction fees to cover this additional layer of functionality (and insurance). Smaller exchanges will only accept crypto-crypto exchange but have a lower transaction fee, which makes them more favourable to new customers.

What to Avoid

As a new entrant to the crypto market there are some things that should be avoided:

  • ICOs– These are Initial Coin Offerings. I’m not saying that ICO’s aren’t a valid entry to a new currency. I am saying that until you have been in the game a while, know your way around the whitepapers, and have a good grasp of what a valid ICO looks like, you should avoid them. Too many people have been caught out by scams and gambled their capital on “The Next Big Thing”. You should only invest in an ICO if you have put the time in to do thorough research on the entity concerned.
  • Coins claiming instant returns – This is probably a given considering the number of scammers who have jumped on the crypto money train
  • Exchanges with low volumes – Not many people using it so not a lot of liquidity available.
  • Coins with low volumes and low market cap – Coins with low volumes and a low market cap have less demand and you may find it hard to trade in them if very few others even know about them and even fewer want to buy them.
  • Overconfidence & Emotional Trading –Confidence is good, but the overconfidence that can come with successive profitable trades can be detrimental to your trading strategy. Emotional trading is the same. Fear, Uncertainty and Doubt (otherwise known as FUD) are common reasons for cashing out early or buying high.

Okay, What now?

You’re in! You have entered the crypto sphere. What you choose to do now is entirely up to you. You can hold on to your purchases and wait to see if they increase in value (HODL is the term often used as a mistype of hold from many moons ago, now standing for Hold On for Dear Life), you can diversify into other cryptocurrencies with potentially greater gains, or you can sell and get out again (no one is forcing you to stay).

You could keep adding to your crypto portfolio by injecting more USD or EUR – some people are doing this as a type of ‘retirement fund’. Like any financial trading or exchanging game, there are risks and there are potential gains. In this, Cryptocurrency is no different from any other commodity.

Bottom line

There are very few barriers to getting into cryptocurrency and if you do join the party it doesn’t have to be in a big way.  Cryptocurrency is NOT a guaranteed return on investment. It doesn’t matter how many people tell you that it is (those lucky ones that mined Bitcoin for a while and then kept a few, just in case). You do have the benefit of being able to learn as you go. Start small and as you learn more about the world of cryptocurrency you can diversify into emerging coins, ICOs and other crypto markets.

Like any other technology or development, it will take time for cryptocurrency to become mainstream and for the underlying tech to be adopted by big businesses. If Cryptocurrency is really the currency of the future, then the best time to get in is now. If it isn’t the way forward, well, you didn’t need much to get in the game and maybe you’ll turn a profit along the way.

About the Author:

Amie Parnaby is a professional writer with an experience in a broad range of industries, from I.T to training, from optics to banking. Within these settings, Amie has provided quality web content, training materials and technical documentation. She is currently an in-house Content Writer at Leverate.