click here if you want to see your banner on this site

Show Posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.


Topics - Pegasus

Pages: 1 ... 3 4 [5] 6 7 ... 29
61

Blockchain technology can unlock a lot of new business use cases. Although one could argue this technology is also vastly overhyped, it remains to be seen what will come of it in the long run. If the Australian National Blockchain is any indication, things will get rather interesting moving forward.

The ANB Concept Explained

It is rather uncommon to build one blockchain ecosystem to serve the needs of an entire nation. Australia is positioning itself as a rather interesting exception in this regard. The Australian National Blockchain will offer technology for the entire nation and introduce a lot of innovative features for companies and service providers to experiment with.

How Does it Work?

As the name suggests, the Australian National Blockchain is a cross-industry large-scale blockchain infrastructure. It is a collaboration between Herbert Smith Freehills, Data61, and IBM. The purpose is to enable blockchain functionality for companies across Australia. That functionality will include smart contracts, as well as decentralized applications designed for a wide range of purposes.

Although this venture could have come to market a lot sooner, it took Herbert Smith Freehills an additional two years to introduce blockchain technology. During the first phase of integration, the team quickly realized there were a lot of hurdles to overcome when focusing on smart contracts. Because of the evolution blockchain technology has undergone in the past 24 months, the process has become a lot more straightforward overall.

For the time being, the Australian National Blockchain will be a pilot project for a select group of business clients. Attracting regulators, banks, and law firms to this venture will be challenging, although not impossible. The team is confident that the ANB can become a tool for sharing information in a more efficient and transparent manner.

The Road Ahead

Given the newness of the Australian National Blockchain, its future remains somewhat unclear. A lot will hinge on successfully implementing distributed ledgers in a commercial manner, although it seems that will not pose much of a problem thanks to IBM’s expertise. Its focus on smart contracts also shows there is a lot of potential for this type of technology moving forward.

Source

62
Useful Cryptocurrency Resources / What are Submarine Swaps?
« on: April 06, 2019, 01:22:34 PM »

Even though the Lightning Network is set to revolutionize both Bitcoin and Litecoin alike, there is a growing need for solutions to make the technology compatible with these ecosystems. Submarine swaps are being tested to address any and all concerns in this regard.

Submarine Swaps Explained

Unlike what most people assume, Bitcoin wallets and Lightning Network addresses are not compatible. As such, it is impossible to send funds from one to the other directly, as the transaction will not work. One could consider this to be a grave oversight, but the Lightning Network is not Bitcoin-agnostic. Thankfully, the problem can be solved through submarine swaps.

How Does it Work?

On paper, submarine swaps work in a similar way to atomic swaps. This method of exchanging value across different blockchains improves overall interoperability between different ecosystems. For example, atomic swaps between Bitcoin and Litecoin have been possible for a while now. A submarine swap, however, is a bit different, albeit it is based on the exact same concept.

A submarine swap can effectively transact between the Lightning Network and Bitcoin. It is a radical development for the cryptocurrency industry. Both currencies can be matched with one another without problems, although there is still a lot of work to be done. The idea is proposed by Alex Bosworth, one of the Lightning Labs developers. It is live on the lightning main net for those who are willing to experiment with it. It is very risky to do so, however, as this technology has been put through its paces in a real-world environment just yet. There is a likely chance funds will get lost if users are not taking the necessary steps accordingly.

To facilitate these submarine swaps, a connection between Bitcoin and the lightning network has been developed. This bridge is currently used as a one-way bridge from BTC to LN. Implementing the reverse technology may be a bit of a challenge, although it is on the to-do list. When that functionality will come to market exactly, remains to be determined.

The Road Ahead

With plenty of work to be done, submarine swaps will not become a mainstream trend anytime soon. Bosworth is still exploring options to integrate this functionality in existing wallets, although it will be a steep hill to climb. A similar test is being conducted on the Litecoin side, as submarine swaps between Litecoin and the Lightning Network are possible today as well. Expanding this technology to other currencies is not unlikely, as Ethereum has been named as a potential future implementation to pursue.

Source

63

Cryptojacking is a very serious threat which cannot be taken lightly. It seems a lot of devices continue to get infected with cryptocurrency mining malware these days. The following tips can help users protect their devices from such attacks and prevent the malware from causing any real damage.

#4 Use a Proper Browser

Even though consumers tend to use the same browser for many years in a row, one has to keep in mind not all solutions are created equal. In the case of dealing with cryptojacking threats, it is of the utmost importance to use a browser which can nip these threats in the bud at an early stage. Over 1 billion users visit cryptojacking websites every month, which is absolutely unacceptable.

The Opera browser seems to be the most prominent solution in this regard. It was released recently with a cryptojacking blocker installed natively. Firefox is offering a somewhat similar solution, whereas Chrome and Edge are not paying too much attention to such solutions as of right now. Opera Mini is the mobile browser to check out in this regard, although other solutions may come to market in the future.

#3 Avoid Unofficial Apps

Mobile users, as well as computer users, need to be very wary of applications which are not distributed by official sources. In the case of mobile devices, jailbroken Apple devices or Android devices with “unknown sources” checked are a prone target to cryptojacking. Avoiding any potential issues should always take precedence in this regard.

#2 Update Your Device

Although this is a very common and often mentioned tip, consumers still struggle to keep all of their electronic devices updated at all times. It is somewhat annoying to update mobile devices and computers alike, but it is also a necessity in terms of protecting against malware attacks. Cryptojacking is facilitated by devices running old and vulnerable firmware first and foremost.

#1 Pay Attention to Your Router

One worrisome aspect about cryptojacking in its current form is how criminals primarily tend to attack routers. More specifically, nearly 300,000 routers around the globe currently run cryptojacking malware, a number that is bound to increase over time. This highlights the need for both consumers and corporations to invest in a secure router and keep that device safe from harm as well.

Although it is unclear if the cryptojacking threat is native to MicroTik routers, it seems evident those devices are under a lot of pressure right now. That does not mean all other router brands are safe from harm by default. Routers have become a lot smarter, yet the core weaknesses of such systems will always remain in place. Cryptojacking will exploit any vulnerability in this regard, which can pose major problems for all devices connected to this router.

Source

64

A lot of things are happening in the world of malware and ransomware. Cryptocurrency remains a very prominent target for criminals in this regard. A new malware, which goes by the name of Xbash, seems to combine all of the worst aspects of different malware types into one. A worrisome development, especially if this becomes a growing trend.

XBash is a Very Serious Threat

Cryptocurrency enthusiasts have seen their fair share of experiences with malware in different forms. Wallet-stealers, clipboard-information altering software, ransomware, and Trojans are just some of the examples. As if that is not enough, it now seems cryptojacking is becoming incredibly popular, with hundreds of thousands of devices infected by this type of malware over the past few months.

It now seems some criminals are looking to bring out the worst in malware in a new campaign. The Xbash malware strain is the first example of what the future may hold in this regard. It is designed to target both Windows and Linux systems, and uses cryptomining, ransomware, botnet, and self-propagation tools all in one.

Multi-functional malware has been a growing industry for quite some time now. Although a combination of data destruction and ransomware is nothing new, adding botnet and cryptojacking features to this particular package show criminals will continue to explore new methods in this regard. The fact XBash can spread itself through an entire network in quick succession raises a lot of concerns as well.

Early reports indicate several dozen people and institutions have fallen victim to XBash at this stage. It is expected some victims made an associated ransom payment, as $6,000 has been sent over to the criminals in the process. That figure is a big surprise, as Xbash’s ransomware capability offers no way of recovering data once the payment has been completed.

Under the hood, XBash appears to make use of three different vulnerabilities which can be leveraged against Linux and Windows. The choice to include Linux targets is rather telling, considering Windows is the most commonly used operating system among consumers. In the business world, however, things are very different. Linux reigns supreme in that department, further confirming XBash is not necessarily designed to target regular users.

Security researchers are concerned XBash shows some eerie similarities with WannaCry and NotPetya. It is possible this new malware borrows a lot of code from those two particular malware strains, as both of them have been incredibly successful over the years. It is evident cryptojacking will play an increasing role of importance in the malware industry.

Source

65

You only have to hit “view all” on Coinmarketcap to see the explosion of cryptocurrencies over recent years and months. While half of 2017’s ICOs have already hit the hay (and plenty more will follow), innovation is still booming in this sector–as well as a lot of noise. And it seems like the ICO fundraising method is piquing interest from off-chain and blockchain companies alike, leading to the reverse ICO.

What Is a Reverse ICO?

There’s quite a clue in the name. Usually, blockchain companies hold an ICO to raise funds for an idea. They write a white paper, throw up a website, put a team together, and then ask for public funding. It’s pretty rare for a blockchain company to have a working product before asking for the money to help build it.

One of the coolest things about ICOs is that they allow everyday investors to get in on the ground-level of innovative startups. Mom and Pop investors can access the same opportunities as Silicon Valley and Wall Street investors, maybe get a stake in the next Google, Amazon, or Facebook. In fact, ICOs now provide more early-stage innovation financing than VC or Angel investing–giving power to the people…

Or, getting them scammed out of all their money investing in an empty idea. This isn’t an industry for the faint-hearted. All the scandals, security issues, teams that can’t go the distance, and regulation has had several consequences. One of which is weeding out the serious companies from the flashes in the pan. Another is attracting established companies to holding ICOs (STOs, ETOs, or whatever you prefer to call it).

The Reverse ICO: Asking for Money After the Product Is Built

So, what’s the point in that? Here are a few reasons established companies may want to hold a reverse ICO:

Staying Relevant

As the world moves over to blockchain tech and disruptors start disrupting the disruptors, some companies may hold a reverse ICO in a bid to stay relevant. With the plethora of blockchain social media sites and blockchain marketplaces, consider a platform like Telegram or marketplace like Airbnb.

In a saturated and evolving space, holding an ICO and creating a tokenized environment for your company is a way to pivot your business model and appeal to newer customers. Put your centralized image in the past and create a true peer to peer environment.

We saw that happen with bartering marketplace Listia, and we’re seeing it with giants like Kodak. It’s going to get a lot more common moving forward.

Not shiny-new startups but profitable businesses that already have popular apps like Xtribe and working models using cryptocurrency to incentivize users, attract them into stores, or gain an early-mover advantage.

Raising Funds to Continue Innovating

Plenty of companies industry-wide are turning to the reverse ICO (or STO, or ETO, depending on where they’re based). In the energy industry, Solo Energy and Sun Exchange are both asking for funds now (several years after establishing) to build on top of what they’re already doing.

CEO of Solo Energy told me at the World Blockchain Forum, “We’re holding our STO now to raise funds to build our virtual power plant system. So, we’re investing funds from the STO raise to directly into battery storage assets to build this virtual power plant system.”

Similarly, Sun Exchange wants to expand on the good work they’re doing in Africa providing electricity to those without, into other regions, as well. They also want to expand their subscriber base and team, and run pilot projects with crypto mining rigs, among other plans.

The Benefits of the Reverse ICO for Investors

The benefits of investing in a reverse ICO are numerous. To start with, you have the reassurance of investing in a project that works. You have an established company with more than just a working prototype. There are use cases, real stories, a solid team, a significant user base, and the likelihood of establishing a quick network effect.

Investing in a reverse ICO might provide reassurance for retail investors who are already familiar with the name. However, for companies that are experimenting with inserting a token into their business model, it’s still worth doing due diligence.

One thing is purchasing tokenized shares in a company expecting returns and another is buying a utility token that has little to no added value to an existing model.

As we head into the last quarter of this year, the ICO market will continue to grow, whether its acronym has changed or not. Especially in jurisdictions that now require financial documents and significant expenditure to hold an STO, reverse ICOs will almost certainly be on the rise.

Source

66

Everyone in the cryptocurrency world hopes to strike it rich someday. Whether or not that can occur through legitimate means in quick succession, will depend on how the markets evolve. It is a more valid approach than hoping to find a fat Bitcoin wallet on an old hard drive discarded by someone. The chances of that happening are slim to none.

The Used Computer “Story”

In a  perfect world, someone might be able to buy a user computer and discover a Bitcoin wallet installed on that machine. In an ideal scenario, said wallet would contain dozens of BTC, which are worth quite a bit of money at the current price. In the real world, however, the chances of that happening through legitimate means are nearly zero.

A more likely scenario is how a stolen device has been obtained which might belong to a Bitcoin enthusiast. Although one might purchase such an item without knowing how it was obtained, the chances of seeing a  Bitcoin wallet on the device is still very improbable. Most investors are not that careless when it comes to cryptocurrencies.

That doesn’t mean the chance is absolute zero either. Numerous stories have surfaced over the years of people who threw out an old computer or hard drive storing a Bitcoin wallet. Recovering such hardware is often impossible, and it is not unlikely some of those prices of hardware end up in someone’s hands who is more familiar with cryptocurrency. Since most of those incidents date back to 2014 or earlier, however, it is unlikely one would stumble on such hardware in 2018 or beyond.

Password Protection and Balance Recovery

For the sake of argument, assume someone has obtained a second-hand computer with a Bitcoin wallet. While that is a reason for excitement, one never knows exactly how much funds the wallet in question holders. Finding that out can only be done by firing up the client to figure out the associated wallet address and private key.

This creates a new problem, as a lot of people use a password to protect that wallet. The chances of finding that password on the computer itself lower than winning the lottery by buying one ticket in a lifetime. Brute-forcing such a password could, in theory, yield some results, although it is not something that should be relied on. Recovering wallet passwords if they belong to someone else is, once again, pretty much impossible to do under normal circumstances.

How to Use the Money?

Assuming one has stumbled on a wallet without a password, another problem ensues. If the previous device owner left an actual Bitcoin balance in the wallet, does that automatically make it the property of the new device owner? In theory, yes, as the person holding onto the private key for said wallet controls the funds within the Bitcoin wallet. That doesn’t mean one shouldn’t attempt to contact the previous owner and explain the situation. If tracing the owner is impossible, this hypothetical scenario enters a gray zone where anything can happen.

Source

67

In the world of cryptocurrency, scams are more apparent now than ever before. Even if one were to successfully identify the wallet address of a known scammer, there is no real option to retrieve the money. It highlights a big problem in this industry, although there are some steps which can be taken to achieve a favorable outcome.

Reporting the Scammer’s Wallet Address

Depending on the nature of the scam in question, getting the wallet addressed flagged is always an option worth pursuing. On the Ethereum blockchain, numerous wallet addresses are flagged as fraudulent or scams, primarily because they were used for nefarious purposes. This is equally possible with other addresses as well, even though it might not necessarily be visible on a block explorer.

Passing the wallet information to exchanges and other service providers is a good place to start. Contacting blockchain analysis firms with the information in question could be worth one’s while too. Though it is unlikely the money will even be returned to the rightful owner,  it could ensure no one else falls victim to these types of scams moving forward.

File a Police Complaint

Given the lack of active cryptocurrency regulation in a lot of countries, it is very difficult to take action against people scamming cryptocurrency. Filing an official police complaint with all of the relevant information might be an option to look into, although no one should ever have any high hopes of recovering their money this way. Most law enforcement agencies still consider Bitcoin to be anonymous, even though it clearly isn’t.

Although this course of action might not yield any real results, individual reports may ultimately lead to a large-scale investigation. If someone is arrested in the end, there is a very good chance the seized Bitcoins are auctioned off randomly, which means recovering funds is absolutely zero. Once one falls victim to a cryptocurrency theft, it is pretty much game over for the person losing the funds, unfortunately.

Tracking Down the Culprit

There will always be people who will go to extreme measures to recover their stolen cryptocurrency. Depending on how much money is involved exactly, that is not entirely abnormal. Tracking down cryptocurrency users is not necessarily all that difficult, as digital breadcrumbs can be found all over the internet. If the wallet can be linked to an online identity an important first step is taken.

Assuming one can be successful in uncovering the person’s real identity, it is not advised to take matters into one’s own hands. There is no reason to get involved in any illegal activity or actions punishable by law over stolen cryptocurrency, no matter how much money has been lost in the process. Taking the information to law enforcement agencies will remain the best course of action.

Source

68

For enthusiasts, alternative investments professionals, and cryptographers, cryptocurrency is either the next greatest economic revolution, an incredible store of value in addition to being a cryptographic transaction medium, or the best problem to solve seen in decades. Yet, for the general public, even understanding what Bitcoin is remains hard at best, since the average consumer is simply not technically sophisticated enough to understand, let alone access cryptocurrency. And, even for many established finance professionals (outside of FX trading) the idea of a transactive medium simultaneously acting as a store of value is hard to stomach.

Cryptocurrency professionals understand this paradox: while cryptocurrencies like Bitcoin are valuable, their value comes from scarcity since all cryptocurrencies are fixed quantity-wise, which means different forces outside of traditional supply and demand dictate how they are valued. The result is an entire market starting from scratch with its own rules, stopping existing professionals in digital and in finance–the latter being a natural fit with blockchain technology–from automatically rolling over to crypto. So, up to this point, leading finance professionals and investors have declared Bitcoin a scam, and most leading professionals in digital have had to learn entirely new skills to participate in a nascent, but highly valuable and highly scalable market. The emergence of cryptocurrency has been hard for almost everyone to adapt to, but technologies that make cryptocurrencies more accessible and easier to mine and use are poised to help all participants in the overall value chain realize greater value from using cryptocurrencies.

New technologies pose the biggest value-add for people new to cryptocurrency, especially as exchanges are concerned. Though the most-used cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are tradable on a wide range exchanges, the majority of lesser-known cryptocurrencies are distributed throughout wide networks of micro exchanges with different fee structures and additional costs for transfers and other features, making all but the top cryptocurrencies selectively accessible. Despite this frustrating problem, new companies are rising to meet the challenge of solving it.

For example, new blockchain app TAP, set to release just before Q1 2019, is a simple and universal solution for anyone looking to buy, trade, and spend cryptocurrency. It’s basically a one-stop shop for people who want to invest in and pay with cryptocurrency. The platform holds balances with crypto exchanges and card schemes to provide instant fulfillment. Its middleware can execute any trade instantly without having to wait for funds to be moved. The app provides instant transactions while providing optimal exchange rates by keeping users’ assets in multi-signatory cold storage, using its proprietary middleware to search all exchanges, including  arbitrage, to find optimal rates for any cryptocurrency trade. For example, if a trader wanted to transfer BTC to GBP, TAP’s middleware could trade BTC to USD, then to GBP if USD provided the best exchange rate for that specific trade. TAP also provides a streamlined onboarding process for either FIAT or crypto to provide deliver industry beating rates to its customers. Users can go through a one-time KYC process to be onboarded onto the platform, getting access to multiple exchanges simultaneously. TAP also provides its own card, which users can instruct the app to make purchases through instant sale of their crypto. The TAP concept has been 2 years in development: in 2016, CEO ArsenTorosian realized the gap between people’s interest and willingness to buy cryptocurrency is caused by a lack of accessible, intuitive, centralized platforms. To fill that gap, Torosian recruited David Carr, a pre-paid card program specialist with a track record of launching 65 pre-paid card programs. With the help of high-quality investors such as Alphabit and GBIC, their ICO is imminent and the app is currently in its 3rd alpha release. With the features they boast, as well as with the strength of their backing, TAP is arching to hit a home run in crypto-accessibility through the blockchain fintech space.

Yet what about more sophisticated crypto and blockchain users? For people who understand and use the technology already, accessibility might seem not to be a problem. Counterintuitively, accessibility is even more of a problem for this group since many crypto users only use one exchange or trust one or two cryptocurrencies, and have a hard time justifying venturing outside what they already know. For companies looking to appeal to crypto-savvy user segments, the trick is to show them the benefits of other cryptocurrencies through platforms incentivizing further cryptocurrency investment. In this way, one need look no further than ICONOMI. ICONOMI is a digital asset management platform that allows beginners and experts alike to invest in a wide range of cryptocurrencies in portfolio fashion. Its flagship technology, ICONOMI’s proprietary Digital Asset Array, is a blockchain-based system for hedging investments in multiple cryptocurrencies simultaneously. The array is customizable, allowing the user to add a broad number of positions on various quantities of different cryptocurrencies. This allows individual users to manage risk based on their investment style. Like a hedge fund, users can adjust the balance of assets in their arrays to lower the risk of overall depreciation, and use ICONOMI’s real-time interface to react to markets. Unlike a hedge fund, users can also syndicate investments with supportive users on the platform’s blockchain-based inter-account interface, which allows people on the platform to see each others’ trades and investments, contact and request syndication, and get a yes or no in return. Syndicates typically swarm fairly quickly on the platform, and quarterly transaction volumes from investment syndication on the ICONOMI platform typically yield in the high tens of millions across cryptocurrencies. Cryptocurrency investors with long-term investment strategies involving hedging who already understand the technology but are dedicated to only one exchange and a few cryptocurrencies could make profitable use of this platform to extend their altcoin-based capital gains.

Some people, however, will never venture outside of the top cryptocurrencies, especially those who invest in and trade stocks as their main form of passive income. These mass marketparticipants–mostly Millennials and financial services professionals–may know a bit about cryptocurrency, but notenough to get involved to their maximum potential. For this mass market, the current standard-bearer of consumer-facing crypto trading tools, Robinhood needs no introduction. The free app uses blockchain technology to authenticate and facilitate trades across 10,000 financial instruments in addition to Bitcoin, Ethereum, and Litecoin. The tech trading giant surpassed E*TRADE in user numbers in mid-Q2 2018 after attaining over 4 million users while closing a $363 million Series D round in May with an overall valuation of $5.6 billion. The company’s fundraising successes this fiscal year have been hailed by Millennials and seasoned market watchers alike as a watershed moment for fee-free investing able to deliver industry-standard returns, proving naysayers incorrect about blockchain fintech’s ability to level the playing field for new investors.

Blockchain fintech as an industry is changing the playing field with regard to the differential value experienced professionals and new market entrants are able to realize. Before the emergence of blockchain technology and cryptocurrency, the traditional financial services industry was the main decider as to which financial products anyone could use, and these institutions did and do favor high-net worth families, individuals, and businesses. This is changing with the emergence of blockchain as a major disrupter in the financial industry, and the above are only a sampling of the major value blockchain is bringing. To find out more, read our article on ways blockchain technology can be used to benefit financial services.

Source

69
Crypto Discussion / What Makes ERC-1155 Unique?
« on: April 06, 2019, 01:10:09 PM »

There has been a major influx of new Ethereum-based tokens over the past 18 months. Although most of these tokens adhere to the ERC20 standard, that may come to change fairly soon. Enj now lets users mint their “custom crypto tokens” using the ERC-1155 standard, which offers a few key benefits worth looking into.

The ERC-1155 Standard Explained

What makes this particular token standard stand out compared to ERC20 and others is how it is cross-chain compatible. Until now, most assets can only be used on the Ethereum blockchain, yet the ERC-1155 standard makes them compatible by other ecosystems as well. These tokens are also supported by the Enjin Wallet, though it remains unclear if other service providers will implement support over time.

How Does it Work?

Unlike what most people may expect, this particular concept uses the native Enjin Coin to back these custom tokens. This ensures there is a guaranteed value for all created assets through this method. This value can be obtained by using the native “melt” feature within the Enjin Wallet, making the acquisition of tangible value a lot more straightforward.

This is very different from more traditional tokens, which cannot be destroyed directly. Instead, they often remain in circulation unless the original developers buy back tokens at regular intervals. ERC-1155 wants to position itself as the more tangible token standard simply because any asset can be created and destroyed at any given time.

Another bonus effect of this approach is how it affects scarcity. With ERC20 tokens, scarcity is almost impossible to come by these days. By utilizing ERC-155, the destruction of assets can improve overall scarcity, as their circulation is reduced as a result. While this method may not necessarily be appealing to all business models, it certainly offers something different compared to more traditional options.

What Comes Next?

The big question is whether or not the minting of custom crypto items will ever become successful. While there are clearly opportunities to explore, it is not necessarily something most people are willing to explore right now. The cross-network compatibility of the ERC-1155 standard certainly offers something the cryptocurrency industry direly needs right now. Being able to operate across multiple blockchains appears to be the only way forward.

Source

70
Trading / What is Leverage Trading?
« on: April 06, 2019, 01:06:17 PM »

Trading in cryptocurrencies always involves certain risks. These markets are incredibly volatile, which is part of what makes them so attractive. Some traders are not content with just the volatility, as they want to perform leveraged trading. This can yield vastly higher profits, but can equally incur severe financial losses. It is a double-edged sword which continues to gain in popularity.

The Purpose of Leverage Trading

When it comes to speculating on and trading financial assets or cryptocurrencies, margin and leverage trading often go hand-in-hand. That is only normal, as a margin trade is a loan extended by a broker. By leveraging said margin trade to increase potential profits, a lot of money can be made without having to use much of one’s own collateral. On paper, it is a good way to create money in quick succession.

Through a leveraged trade, speculators can gain increasing buyer power and potentially double, triple, or quadruple potential profits without too many problems. Being able to pay less than the full price for a trade while still being able to pocket massive potential profits is something many traders can’t afford to pass up on. That doesn’t necessarily mean everyone should explore this option either, as nothing comes free of risk when dealing with financial assets.

In the financial sector, a leveraged trade is always noted in the form of a ratio. For example, a 2:1 ratio is by far the most common type of leverage trade in the world. Specialized trading forms – especially in the cryptocurrency industry – allow speculators to leverage up to 100:1 on their trades. If such a trade goes awry and gets liquidated, the financial problems will ensue in very quick succession.

It is equally important to note neither all cryptocurrencies – or financial assets and securities – are subject to leverage trading either. In the cryptocurrency world, the top currencies such as Bitcoin, Ethereum, XRP, and sometimes Litecoin will usually be eligible for such trades. Everything else is subject to the trading platform’s plans and demand from customers. Regardless of which currency one can leverage, the risk and reward “odds” remain identically the same.

For most people, all they see is the potential money to be made while using leveraged trading combined with cryptocurrencies. While it is true some people make a living off of doing so, the vast majority of inexperienced traders will undoubtedly lose money. Without any specific knowledge of how these markets work – and enough guts to toughen out unexpected volatile trends – leveraged trading is not an advisable course of action.

One option to explore when engaging in leverage trading is to put stop-loss orders at specific intervals. With a stop loss order, traders can mitigate a lot of potential financial heartache, although it will still incur losses regardless. It is always a good idea to nail down the essentials of crypto trading first and seek out demo accounts with leverage trading functions prior to committing one’s own funds.

Source

71
Trading / Cryptocurrency Fluctuations – Why Do They Happen?
« on: April 06, 2019, 01:04:17 PM »

Since it was first introduced to the world in 2009, it’s safe to say that the cryptocurrency market has gone up and down the ladder. However, in recent years, digital currency has gained traction and has risen in popularity as a result. The more popular currencies like Bitcoin, XRP, and Ethereum, have grown exponentially just over the past few years.

Of course, we know how volatile the cryptocurrency market is and how much it can fluctuate over time. Investors and day traders in digital currency can be wealthy one day and broke the next, however, overall the market is a little more stable than it was just a few years ago.

The team at totalcrypto.io highlight that it is essential to understand what factors have an effect on the market, and how these factors impact prices.

Supply and Demand

Economics 101 teaches us about supply and demand, which is one of the ways value is determined for cryptocurrencies. Public opinion, which is swayed by certain factors, causes demand to fluctuate drastically. However, most cryptocurrencies have a limited supply, with only a given number of units available. As a result, we see huge fluctuations in price.

This has never been as evident as it has been with the price of Bitcoin the past few years. In July of 2017, Bitcoin could be purchased for less than $2,000. By December, the same digital currency had reached almost $20,000. Now, a year later, Bitcoin hovers between $3,500 and $4,500. Bitcoin trading volume certainly isn’t straight forward to predict.

The fluctuations aren’t just limited to a wide time range though. There are certain days when Bitcoin may see a change in over $300. A number unheard of in the public market.

Media

Media is another way cryptocurrency prices are affected. Positive news can drive digital currency prices up while negative press can have the opposite impact. For instance, in September 2017, China banned ICO authorities. The resulting panic caused a collapse in Bitcoin. It dropped from $5,000 to $3,000 in no time.

You can categorize media into two areas: systemic and political. An example of political media influencing the price of cryptocurrency was when the South Korean and Chinese exchanges led to a collapse of altcoins and Bitcoin. At that time, NEO rose when there was positive news reported from China.

Systemic sources share innovative changes in the market These can take the form of platform scaling, creative solutions, or any variety of methods. So be sure that you’re following the latest information and news in the media, but as you’re doing so, remember how said news can manipulate the price of cryptocurrencies.

Progress in Technology

As the demand for cryptocurrencies continues to grow, it’s important to pay attention to the latest technological advances being made in the space. There is a true need for anonymity, security, and independence, along with cheap and fast transactions. This is the foundation on which the digital market was laid.

With advances in technology, life is made easier for both consumers and businesses alike. It creates transparency and efficiency in areas it didn’t previously exist. Of course, it’s nearly impossible to imagine what will come next in the way of technology, which is just another reason cryptocurrencies are so volatile.

Regulations

Another factor that can greatly impact the cryptocurrency market is regulations. As governments and banks make an effort to catch up with cryptocurrency markets, the need for establishing rules continues to grow. This means the more stringent the regulations, the greater the likelihood that the price of cryptocurrencies will drop.

Economics

We’ve talked a little about economics and supply and demand, but there are more factors to consider. When instability occurs in the financial world of fiat currency, people start considering alternative currencies. However, cryptocurrencies are a young and vulnerable option.

Because of the volatility associated with cryptocurrency, there is a negative impact on recognizing it as a valid form of payment. Unfortunately, even though the technology continues to advance, the basic core principles remain the same. Complexity in performing micro transactions, centralized management, and restrictions continue to stand in the way of making the leap to fully non-centralized currencies.

Politics

The cryptocurrency market can become seriously destabilized in the event of a political situation. For example, when South Korea decided to close its currency exchanges, a collapse in the market resulted. Political regulation can have an adverse impact on the cryptocurrency market, which can result in an outpouring of global funds.

Another example was when China placed a ban on mining. Mining in China takes up a huge share of the total number of pools. This means a large amount of capital is in a concentrated area, which has an impact on market balance. When this happens, users can experience long-term delays.

Conclusion

As you can tell, there are many factors that can create fluctuation in the cryptocurrency market. The market is not decentralized, however, the currency itself is. Users have their own digital currencies, but the power lies in the hands of those that hold a significant number of shares. To get a better reading on the market, many factors should be given consideration, particularly the impact of scaling and regulation.

Because cryptocurrencies are so volatile, it’s almost impossible to predict the fluctuations that occur within the market. Some investors are put off by this fact along with the lack of stability inherent in digital currencies. An investment in anything can be a risk, however, the high volatility in the cryptocurrency market makes them an even riskier one.

Source

72

Anyone who might question the continued growth of the online gambling industry has surely been living under a rock. The reality is this industry is one of the fastest growing industries on the Internet.

In light of this massive expansion that’s spanning the entire globe, there’s a number of issues with which every nation is having to deal. Most of the issues revolve around the legalities of online gambling from one jurisdiction to the next. These issues are sure to have effects on online operators like Casumo. It’s notable that the US, one of the world’s largest consumers of gambling products, is seeing a number of states that have moved forward with the legalization of online casino gambling and online sports betting for its residents. Given the huge tax revenue incentives for the states associated with such legislation, it’s a good bet every state will eventually allow online gambling operations within its respective states.

Cryptocurrency and the Online Gambling Industry

Thanks in large part to some amazing advancements in the world of technology, there’s a new issue for each nation to contemplate in the online gambling realm. That new issue involves the use of cryptocurrency as a legal means of funding gambling accounts. Cryptocurrencies are managed through a process known as “blockchain technology.”

Here’s a brief definition of blockchain technology: Blockchain is a distributed database or ledger spread over a network of electronic devices where records of cryptocurrency transactions are kept, away from revision or from tampering.

By definition, this means of exchange is making national governments nervous because it eliminates the middleman (banks, credit card processors) and the transparency the taxing agencies like to see for accountability. At a broader level, each country is working to determine the legality of using digital currency by its residence.

At a lower level, the online gambling industry is wrestling with the same issues. Moving forward, online gambling will likely be looking at Bitcoin as a favorite casino banking option because of the low fees, fast transactions and the anonymity offered by the blockchain technology. Let’s take a quick look at where each major gambling jurisdiction currently stands on the issue cryptocurrency for the online gambling industry.

UK – In the UK, all gambling operations fall under the rules and regulations set forth by the UK Gambling Commission. The first and most important requirement for online gambling operators wishing to provide services within the UK is the proper licensing provided by the UKGC. To date, any online gambling operator that holds the required licensing is free to accept cryptocurrency as a mode of banking.

Australia & New Zealand – Overall, Australian online gambling operations are governed by the Interactive Gambling Act of 2001 (IGA). Under said law, online casino gambling operators are not permitted to operate within the country. However, online sports books and race books are legal. There are no laws that prohibit Australian residents from using offshore services in countries that will permit such participation. It’s further noted that most Australians can use cryptocurrencies when the accommodating jurisdiction permits it. The one caveat is Northern Territory Racing Commission (NTRC) has issued an informal ban against the use of cryptocurrencies by its residents. In New Zealand, residents fall under the Gambling Act of 2003, which states residents are permitted to gamble offshore. The legality of using cryptocurrencies is therefore remanded to the offshore gambling jurisdiction.

US – As noted, the legalization of online gambling in the US has a long way to go. With only 3-4 states currently on board with such activities, the notion of using cryptocurrencies to fund gambling accounts is yet to be tested. However, the 2006 the Unlawful Internet Gambling Enforcement Act (UIGEA) made clear that banking by electronic means is illegal. With that said, it’s safe to assume cryptocurrencies in not currently a legal means of funding online gambling accounts.

Canada – Canada’s laws closely resemble those as set forth by Australia and New Zealand. There appears to be no regulations in place that would disallow Canadian residents from using cryptocurrencies to fund offshore gambling accounts so long as the proper gambling jurisdiction finds it legal.

In summary, we can expect to see a lot of changes in the coming months/years related to both online gambling and the use of cryptocurrencies. For now, it is the responsibility of each prospective online gambler to understand the laws in the country where their favorite gaming sites are licensed.

Source

73

If you are looking for other things to play with while the crypto market is hibernating, you could put to good use all those lessons you’ve learned from trading in the last years by looking at the underrated and widely forgotten penny stocks.

What are penny stocks?

First of all, if you are not familiar with the terminology, you should know that penny stocks are highly speculative instruments which trade below $5 per share. Some investors even go lower than that and only include in this category those shares which trade under $3 outside major market exchanges. Companies which can’t keep their stocks above $1 are sold exclusively over the counter. It is also called pink-sheets stock or OTC. There is a high risk related to the lack of liquidity and the fact that the regulatory standards are too light. Most stock traders would consider these stocks a gamble, but that is what they say about crypto too.

Lessons from the Wolf of Wallstreet

Even if you are not a fan of the blockbuster featuring DiCaprio, you should be aware of what the real Jordan Belfort was doing using penny stocks and which is now present in the world of ICOs. Belford mastered a pump and dump scheme. Himself and a small group of investors would buy an asset and artificially boost the price through marketing schemes which in the 80’s meant cold calling, or even e-mailing. After getting more people interested and buying, himself and the initial investors would exit the scene, leaving unsuspecting buyers with worthless stocks.

ICOs and penny stocks

Fast-forward 30 years later and enter the world of ICOs and blockchain. Not only is Belford’s scheme still viable, but it has also even become much easier to use because all the trading is online and advertising are automatized over social media channels.

ICOs are simple to launch, and although not all are frauds, those which are can be hidden very well. Apart from the whitepaper which can be very vague, you don’t need much. In the same manner for penny stocks, there is little available information regarding the financial data of the underlying company. Most companies listed in this way are under no regulation which requires proper financial reporting. If you decide to get into this market, you’ll have little knowledge about liquidity or the likelihood of a stock keeping its value. Investors accept these conditions in the hope that the shares will increase their value. In the case of ICOs, some issuers offer a lot of information, but not necessarily related to financial perspectives, most of the times it is all about the technology behind it.

Taking the chance

Both penny stocks and ICO investors are not always naďve or uneducated in the financial market. Sometimes they know and accept the risk, and those who make money out of these markets are most of the times well versed. They replicate Belford’s scheme over and over again, creating buzz around ICOs and dumping their stock on the peak.

If you are interested to learn more, Crediful released a guide on penny stock trading which provides some guidelines on what to do and what not to do when delving into the world of penny stock trading. The same principles apply to trading ICOs.

Using crypto trading knowledge to win at penny stocks

One can’t say that penny stocks are safer then ICOs or crypto. It is all connected to the underlying company. However, you could use a bit of you ICO and crypto-trading know-how to evaluate penny stocks. If you are already familiar with candlestick chats, you might find it useful in assessing these volatile stocks.

It would be best if you looked for clean charts, that means prices which are clearly moving in one direction with regular but brief changes which reverse. A clean bullish chart, for example, is going up; the price is steadily rising while a clean bearish is steadily dropping, usually after an initial hype or capital infusion. Although it happens, most price swings are not in the 100-200% range. It is more a matter of accumulating several 10-30% price swings that shooting for the 300% ones.

On the other hand, if you are going in for the game, you don’t want penny stocks which behave like bonds. If there is no movement or volatility, you are definitely losing. As in day trading, you need to have those swings to make money.  Since things are changing from one minute to the other, there is no time to look into newsletters or press release. Those are usually mass manipulation tools which don’t help your cause.

Going fractional

There are two categories of penny stocks which are most similar to cryptocurrencies, especially bitcoin in its golden days. The so-called sub-penny stocks, bellow 1 penny per share and the Trip Zeros, priced between 0.0001 and 0.0009. These are a great deal for those who bought them first in large volumes. These are the most volatile types of penny stocks and therefore carry the highest risk.

Source

74
Crypto Products & Services / Is There a Reason to use SmartBinance?
« on: April 06, 2019, 12:48:31 PM »

Binance has quickly become the world’s leading cryptocurrency exchanges,  While the service offers a bit of everything for all kinds of traders, there are always things that can be improved upon. The SmartBinance platform seemingly offers some more advanced trading tools, although users have to share access to their account through an API key.

The Purpose of SmartBinance

Most people flock to Binance because the platform has a solid reputation and offers exposure to hundreds of different coins, tokens, and assets. Its overall trading interface is useful and suits most people’s needs. For those who are looking for more advanced trading tools, the exchange seems to offer some options as well. However, there is always further room for improvements, which is seemingly why SmartBinance was created.

The primary purpose of this platform is to let users create “smart orders”. In doing so, users can place orders which will only be executed when all of their determined thresholds are met. That is a different way of trading cryptocurrencies, tokens, and assets, although it will not necessarily be for everyone either.  Moreover, the service claims there are no payments required and no commission is applied to users’ orders, which is something to keep in mind as well.

Among the advanced functionality are features such as setting a dynamic stop-limit, combining take-profit and sot-loss on the same order, et cetera. Several video tutorials and examples can be found on the website, which will provide more information. It is never required to use any of these features for users who simply want to trade cryptocurrencies, but having multiple options at one’s disposal is never a bad thing either. A separate “paid tier” is also available, although it is not required to access the platform.

To access this advanced trading functionality, users will need to share API key access with SmartBinance. That is not necessarily a problem, assuming users ensure these keys do not give the third-party service access to withdraw funds from Binance. While most traders take the necessary precautions to ensure nothing can go awry with their account balance, some novice users need to be aware of which API keys they share and how the permissions are set up accordingly.

The big question with services like these is whether or not they can be trusted. Since SmartBinance will access one’s API keys but can’t necessarily do anything wrong with them, the risks are mitigated somewhat. However, the users are still responsible for creating order conditions, and this service will not necessarily keep people from making major mistakes. It is a different way of trading cryptocurrencies on Binance, although one that may offer some minor advantages to more experienced traders.

Regardless of whether one sees merit in the service, the platform will bring more attention to Binance as an exchange regardless. Since this service only works with that specific platform, it is not unlikely Binance will see its user base grow even further. It is always advised to do one’s own research prior to effectively trusting a platform like this, albeit no real damage can be done if users take the necessary precautions.

Source

75
Crypto Discussion / What is a Bitcoin Maximalist?
« on: April 06, 2019, 12:47:08 PM »

People who are invested in cryptocurrencies will usually try to see the bigger picture. This industry is about more than just the top 15 markets ranked by market cap. Even so, there are people out there known as “Bitcoin Maximalists”. Since this term causes a fair bit of confusion, now is a good time to address what makes one a Bitcoin Maximalist.

The Bitcoin Maximalist Conundrum

As the name somewhat suggests, a Bitcoin Maximalists is an individual who values Bitcoin above all else. Although that idea might apply to most cryptocurrency users and investors, there is a bit more to this “ideology”. Rather than appreciating innovation brought to the table by alternative projects, a Bitcoin Maximalist couldn’t care less about those coins. Instead, such a person sees everything that is not Bitcoin as useless clutter.

While this is a point of view which is understandable up to a certain degree, it has become a lot more complicated to maintain this train of thought. Bitcoin will – probably – remain the top cryptocurrency for a very long time to come, regardless of how one wants to look at it. However, that doesn’t mean the other coins, tokens, and assets are “shit” compared to Bitcoin. Most of these projects do not even target the same audience, which is part of what makes this industry is so exciting.

It is also worth noting Bitcoin Maximalists seemingly adhere to Metcalfe’s Law. For those unaware, this concept pertains to how effective any network can be. This doesn’t just pertain to cryptocurrencies, but also to telecommunication, social networking, et cetera. Bitcoin Maximalists often state how all alternative markets take away much-needed resources from Bitcoin in terms of nodes, service providers, innovation, and so forth. It is not an argument that goes over well with crypto-agnostic enthusiasts, though.

At the same time, the statistics contradict this train of thought a bit. Bitcoin’s network continues to grow without any problems. Thousands of nodes exist, and the Lightning Network is gaining more support every month. Additionally, none of the service providers is “wasting resources” by supporting currencies that are not Bitcoin. Even so, for Bitcoin Maximalists, it is all fuel for the fire in which all alternative markets should burn.

Although it seems being a Bitcoin Maximalist is a bad thing, that is not necessarily the case. It is a very different vie won the cryptocurrency industry as a whole, but one that can be understood somewhat. Most of the alternative cryptocurrency projects bring some form of innovation to the table, although the big breakthroughs will usually end up as a part of Bitcoin in the future. This only strengthens the idea of why Bitcoin will rule the industry for quite some time to come.

Rest assured there will be no shortage of new “Bitcoin competitors” in the years to come. Thousands of projects have come and gone, but that doesn’t mean developers will give up on their ideas anytime soon. It is a good thing for Bitcoin to have some competition, even if none of those projects has a chance of overtaking Bitcoin. Being a Bitcoin Maximalist is fine and dandy, but it may not necessarily be the best method to approach this industry.

Source

Pages: 1 ... 3 4 [5] 6 7 ... 29
Bitcoin Garden 2013-2024, All rights reserved | Privacy Policy | DMCA | About Bitcoin Garden | Support & Services