A-Z about Bitcoin Mining,

A-Z about Bitcoin Mining

A-Z about Bitcoin Mining

Cryptocurrencies were launched as Bitcoin. The concept was introduced to the market by Satoshi Nakamoto in 2009. Many assumed that it was here for only a short span. However, proving them wrong, it is still gaining popularity to date. The market value of Bitcoin is USD 1.07 trillion for now. It possesses half of the crypto market.

But, if you are new to this, sure, various questions are going around your mind about bitcoin. We will clear every doubt one by one. But if you are interested in Bitcoin trading you must know about Bitcoin exchanges.

 

Now, let’s get into answering your questions.

 

What is bitcoin mining?

If you what is gold mining is, you will surely get what bitcoin mining is. It is an analogous process in a digital form. It works as a rewarding process for users who solve the algorithm, called the mining process. This process needs specialized and specific computers.

 

How much time bitcoin mining takes?

It takes as close as 10 minutes to mine a bitcoin. However, it is only with people who have the ideal or highest software and hardware quality. But only a few can do it because mining requires access to very high-powered computers, which is not easily available to all.

 

What if someone does not have the quality needed?

This is the most common situation for the majority of the people. If you do not have all these accessible to you, it can take as long as 30 days to mine just a single bitcoin.

 

Is there a fee that one needs to pay to start bitcoin?

Not really. There is no fee to become a miner, but you may have to bear additional costs like paying for the software, hardware and, of course, a huge amount of money for your electricity bill. The hardware needed for this consumes a high amount of power.

 

What is the double-spending associated with bitcoin mining?

The number of bitcoin mining is fixed from the very beginning. There will only be 21 million bitcoin produced and not more than that.

 

People mining the bitcoin, do they receive payment?

It is a huge while regarding the cryptos. You can call the miners, the auditors. They get paid for their honest work whenever a bitcoin is being verified, and it makes the chance of bitcoins being double-spent.

 

Is it possible to mine the bitcoins on one’s phone?

It is not entirely impossible to mine bitcoin on your android phone. However, it will take an enormous amount of time. Apart from the issue with time, you will also face other serious issues with your phone while mining the bitcoins.

 

What is the bitcoin mining proof?

It is the proof when a miner verifies the transaction of bitcoin.

 

What are the downsides involved with bitcoin mining?

The risk of bitcoin mining is manifold. Here are those.

∙         Environmental issue

The bitcoin mining process requires so much power and electricity. The mining produces 95 Megatron carbon dioxide each year based on the reports.

∙         Regulatory issues

The regulations of cryptocurrencies are always changing.

∙         Profit issues

While mining bitcoin involves several expenditures, for example, costs like electricity, hardware, power, mining rig, and price volatility. Therefore, it cannot be assured that one would be on the profitable side after mining a bitcoin.

∙         Volatile prices

As the prices of bitcoin are always, one cannot make a sure assumption that how much will he or she have as mining profit.

 

Is it legal to mine bitcoins?

Mining of bitcoin legal. However, it is not acceptable in many countries. There are some regulations on owing, mining, or trading bitcoins in the following countries-

∙         Pakistan

∙         Algeria

∙         Nepal

∙         Bolivia

∙         Morocco

∙         China

∙         Egypt

 

What is the equipment needed in bitcoin mining?

These are needed to mine the bitcoins-

∙         Mining pool

The mining process would be much easier if you had the mining pool.

∙         efficient power supply

A power supply is highly needed in the case of bitcoin mining. The hardware associated with bitcoin mining is very time-consuming. Therefore, low-cost electricity is highly needed.

∙         Mining computers

These computers are specifically designed to perform specific tasks. Therefore, it is especially helpful in the process of bitcoin mining.

Check Next >https://www.neoadviser.com/5-popular-crypto-coins/

All you need to know about the 5 popular crypto coins,

All you need to know about the 5 popular crypto coins?

All you need to know about the 5 popular crypto coins?

The world of cryptocurrency is fascinating, and so is the value associated with it. Bitcoin is the pioneering name, but we also have many other new entrants now. The non-bitcoins are called Altcoins. Many of the Altcoins are doing great in the market. For example, Bitcoin has a share of half of the entire market, and Ethereum, a non-bitcoin, has almost a quarter of the rest of the crypto market.

But, here, in this article, we have chosen five of them to talk about.

Stellar (XLM)

The first coin on our list is Stellar, this cryptocurrency was launched in 2014. The platform was created for everyday usage and users by Joyce Kim ND Jed McCaleb. Steller is also a cryptocurrency that uses blockchain technology. The best part about Steller is it transacts between any currency pairs. It operates with a cross-border transaction along with a very secure transaction.

With the invention of Steller, there were 100 billion of Steller XLM created. Steller falls into the category of native cryptocurrency.

Stellar XLM is also called Steller Lumens. Lumens are used both as a transaction fee on Steller and as an intermediate currency. Lumens are the reason why Steller is popular as faster than Bitcoin.

Highlights of Stellar XLM

         The annual inflation rate of 1% is fixed

         The XLM helps in creating smarter contracts.

         The transaction process through it takes as little as 3-5 seconds.

         Multi-signature can also be created using the Stellar XLM.

         Multi thousands of transactions are happening with Steller every second.

         It is cheaper, faster, and energy-saving.

Monero (XMR)

Just like steller, Monero was also created in 2014. In 2018, it became one of the thirteenth most famous cryptocurrencies all across the world. Monero provides more privacy as it has layers of security involved with it. Monero is purely anonymous, whereas Bitcoin is not. Therefore, you can be absolutely chilled out while transacting with Monero as it keeps all valuable information secret.

Although it was created in 2014, it only started gaining huge popularity and growth when a darknet market started accepting this cryptocurrency due to its anonymous nature.

Highlights of Monero (XMR)

         It uses the opaque blockchain.

         It is more security-oriented.

         This currency is highly untraceable.

         You can make safe transactions if you are a user of the dark web.

DogeCoin 

Dogecoin was created in 2013. It was basically created as a fun coin on the meme having a Japanese dog (Shiba Inu) image. According to its creators- Billy Markus and Jackson Palmer, it is a light-hearted cryptocurrency that was only created to support cryptocurrencies. However, it started seeing huge popularity once it got praised by Elon Musk.

Highlights of DogeCoin

         Dogecoin is known as an open-source cryptocurrency.

         It uses the same technology as Litecoin, such as proof-of-work.

         It has its own large fan base.

         It is cheaper.

Polkadot

In 2016, former co-founder of Ethereum, Gavin Wood, created the Polkadot cryptocurrency. As heard, it is called the ‘Ethereum killer’ as well. Ethereum was known for being the most transacted cryptocurrency after Bitcoins.

This currency is also high in security concerns. It offers custom blockchain. From the very initial day of using it, you can expect the highest level of security. It helps in transferring data, assets, along with tokens.

Highlights of Polkadot Crypto

         Superior security

         It follows the cross-blockchain method for transferring anything. It is highly interoperable.

Binance Coin (BNB)

Binance Coin BNB was created in 2017 and is one of the largest Cryptocurrency Exchanges. The users of Binance Coin get a special discount on the transactions.

Highlights of Binance Coin (BNB)

      It can be used for purposes like booking flights and hotels on some of the selected websites.

         There are also several platforms that enable investors to invest using the BNB Exchange method.

         For public use, there are 10 million Binance Coins (BNB) available in the market.

Even if you are doing business you must have basic knowledge of cryptocurrency. Here you can get more information on the future of business as influenced by Cryptocurrency.

Check Next >https://www.neoadviser.com/all-you-need-to-know-about-altcoins/

All You Need to Know about Altcoins,

All You Need to Know about Altcoins

All You Need to Know about Altcoins

When everything is going digital, currencies will too. In recent times, cryptocurrency has become a hot topic for everyone. Almost everyone has heard about Bitcoin, which is a cryptocurrency. There are cryptocurrencies in the market other than Bitcoin are called Altcoin. Any cryptocurrency other than Bitcoin is known as Altcoin. Therefore, any crypto such as Polkadot, Solana, Cardio, and Uniswap can be called Altcoin. The most popular altcoin is Ethereum.

You can guess it from its name. “Alt” stands for an alternative to Bitcoin. Therefore, it is called Altcoin. If you want to trade in Bitcoin, you must have a safe Bitcoin wallet. Although Bitcoins are attracting all the limelight, Altcoins are getting there fast. Most of the Altcoins are made using the concept of Bitcoin itself. Therefore, you could find many basic similarities of Bitcoin with Altcoins.

Why is Altcoin important?

As per the record, 16,500 types of cryptocurrencies have been created till January 2022. Half of the market is occupied by Bitcoin. The other half is occupied by altcoin whereas, and only Ethereum occupies a quarter part of it.

How it works

Just like bitcoin, Altcoins also operate using the same technology, which is blockchain technology. If you do not know about blockchain, then to put it in simple words, it is a hugely distributed database. The blockchain database is being maintained by thousands of computers all across the world. Once a transaction is made, there is no way to reverse it as it will be broadcast and verified by the blockchain. It will be recorded on the database.

Why do some Altcoins have special features?

There are various altcoin creators who uniquely feature their altcoin to make it stand apart from the crowd or to make it a bit different from bitcoin.

For example, Dogecoin was created in 2013. It was launched as a meme coin. However, it gained huge popularity after it got praise from Elon Musk. Apart from that, there is also Steller. Its operators wanted it to be more energy-efficient along with being faster and cheaper than its competitors

What are some of the popular Altcoins available?

 

Ethereum

Dogecoin

Cardano

Uniswap

Ripple

Bitcoin cash

Steller

XRP

Litecoin

Tether

Chainlink

Polkadot

Difference between bitcoin and altcoin

Bitcoin is the first crypto in the world. Therefore, it has created a road map of cryptocurrencies. All the Altcoins generally are built using the same technology. Bitcoin can be called the benchmark in the world of digital currency. Everything else more or less follows it. However, bitcoin and altcoin still have some differences, no matter they use the same blockchain technology.

  • 84 millions of Litecoin will ever be produced, which is also an altcoin. On the other hand, there will only be 21 millions of Bitcoin production. Ever.
  • The functionality is also a bit different. Litecoin takes only 2.5 minutes, whereas Bitcoin takes 10 minutes in the mining process. Therefore, the payment becomes faster in the case of Altcoins.
  • You can find a ton of substitutes to Bitcoin in the world of digital currency. However, it is really hard to reach where Bitcoin is today.  It has a market value of USD 1.07 trillion as of now.

What are the Pros and Cons of altcoin?

The pros of Altcoins are:

  • Altcoins are created using the same technology as Bitcoin. Moreover, while being created, the main focus was on its improvements. Therefore, it comes with more facilities.
  • The other most prominent advantage of altcoin is, it does not cost as much fee as Bitcoin. Therefore, it provides cheaper transactions.
  • Some of the Altcoins are even created to be faster as well. Therefore, transactions can be made in less amount time.
  • The competitors get much scope to compete as the mining method is quite similar.
  • To mine Bitcoin, you only need common hardware; whereas, you would need expensive hardware systems in the process of bitcoin mining.

The Cons of Altcoins:

  • The altcoin market is new. Therefore, it is highly volatile.
  • There are similar chances of altcoin becoming prey to many scammers.

Final thoughts

Altcoins are an alternative to bitcoin and doing really well. Although, you should always ask some questions and have your concepts clear before investing in the crypto market.

Check Next >https://www.neoadviser.com/mini-guide-to-buying-bitcoins/

How to minimize crypto / Bitcoin investment risk,

How to minimize crypto / Bitcoin investment risk?

How to minimize crypto / Bitcoin investment risk?

Since its inception in 2009, Bitcoin has been one of the best-performing investments of all time. Its return has been calculated at an average of 15000 per cent per annum. Unlike real estate, gold, or other traditional investment options, cryptocurrencies are not backed by any collateral.

 

Any cryptocurrency trading without proper understanding can cost you a huge loss because of various factors like price volatility, cyber hacking, scams, or even loss of access keys can put your investment in a difficult stage. This blog will look at multiple ways to minimize the risk while investing in cryptocurrencies through useful tips.

 

What are the potential risks of investing in Bitcoins?

 

Before understanding how to protect your crypto investment, it is essential to find out the risks of investing in Bitcoins. In 2017, the price of one Bitcoin was $20,000. But for someone who purchased a Bitcoin on that date, selling it on the 24th would have been catastrophic as the price fell to less than USD 15,000. With the prices swaying back and forth, an investor will have to be extremely vigilant.

 

Currently, the digital currency market is being traded without the consensus of any government regulatory authority. While there are systems to mitigate this issue, safety from them remains a concern for a potential investor.

 

How to protect yourself from losses? 

 

This is the million-dollar question. You can lose money if you do not invest in Bitcoins smartly, so you need to do your homework. Here, you can find some tips to minimize the risk:

 

  1. Consider using offline, also known as physical wallets for storing your cryptocurrencies. For the majority of the currency while leaving only a small amount in the online wallet for trading purposes.
  2. Use tested and verified security tactics such as dual passwords for your cryptocurrency accounts. The private and public keys should also be kept separately with the security of a strong password and multiple authentications wherever possible. You could limit your exposure to cyber threats by keeping unique and strong passwords that should be frequently changed.
  3. Investors should thoroughly research the security features of trading platforms to understand how effectively their currency holding information is protected. One needs to make sure that the platforms use all possible security encryptions and air-gapped devices stored offline with cryptocurrency deposits. https://cryptotrader.software/ is an example of a safe and secure platform for investors.
  4. Caution should be exercised while using mobile applications for managing cryptocurrencies. Ensure that the mobile device is not subject to phishing campaigns that can steal your confidential data and security credentials. These threats could come in texts, social media requests, or emails. There are also mobile apps that are malicious and can have a hidden ability to monitor your mobile screens.
  5. As the cryptocurrency market is completely technology-based, having sound knowledge of the technology used in these transactions is an added advantage. So you need to know about private key protection, recovery seed protection, and crypto-miner malware protection

 

Understanding Bitcoin, Blockchain & Mining

Understanding Bitcoin, Blockchain & Mining

Understanding Bitcoin, Blockchain & Mining

So, what is a Bitcoin? Digital currency is a highly available asset for cryptocurrency investors to buy, sell, transfer, and exchange with ease. The entire system of cryptocurrency, mainly bitcoins, is maintained on a public ledger, due to which anyone and everyone has to access it. The design makes sure that there can be no fraudulent activities regarding it, and also, any transaction done is challenging to reverse.

 

The best part is there are no governmental approvals on dealing with bitcoin transactions. As per the reports, Bitcoin was publicly launched in 2009 and compared to what it was earlier, the value of Bitcoin has hugely increased in recent years.

 

Why Choose To Trade Bitcoin?

When investing in bitcoins, you should know that the trading of bitcoins is never bound by any country’s regulations. Novice cryptocurrency investors prefer trading in bitcoins as there is no involvement in credit card fees. In today’s time, online marketplaces are known as “bitcoin exchanges” that allow people to buy or sell bitcoins using different currencies. Bitcoin Era is one such leading cryptocurrency exchange platform where there is the ease of convenience in trading bitcoins. Not many industries and outlets accept cryptocurrency; however, bitcoin is still the only virtual currency widely accepted all around. Very few service providers accept bitcoins to buy common goods, video games, etc or visit Official Website.

 

All You Need To Know About The Working Process of Blockchains

 

As discussed earlier, bitcoins are all kept on a public ledger, making them accessible to all. Bitcoins are mainly distributed on digital media, also known as a blockchain. It is a body of data full of blocks that contain information regarding every transaction that has been done.

Now, a blockchain provides all information, including date, time, total value, buyer account, seller’s account, etc. Moreover, it gives a unique identifying code for every transaction that is carried out in bitcoin mining or trading. A number of these entries are then strung together in bundles with chronological order, creating a digital chain of the blocks.

As soon as a block is made, it gets added to the public ledger making all the transactions accessible publicly, and anyone is free to view it if they want. Blockchains are not owned by anyone organization and can be shared by all. People can contribute to it like they want and have access to it.

Everything About Mining Bitcoins

 

If you don’t seem to know the term ‘Bitcoin mining’, you should get familiar with it before mining bitcoins. The process of bitcoin mining is no doubt a complex technical process; it not only involves the creation of new coins but the validation of the blockchain cryptocurrency transactions is also involved. The process in which more transactions are added to the bitcoin blockchain is known as the mining of bitcoins. Mining bitcoins is an arduous task, and the people who do it have to work hard.

 

The entire mining process requires many high-end computer-related works, which ordinary people have not accepted. This has earned the maker’s criticism; People have considered this an energy-intensive process that continuously harms the environment. This issue was encouraged by Elon Musk, which spun a fire spark amongst all, and people are now finding this quite relevant.

 

Things You Need To Know Before Buying Bitcoins

 

When coming to talk about Bitcoin mining, you should know that it requires you to have a computer that has works super fast with huge processing power. Bitcoin mining could be the right option for you if your computer has higher processing power. This way, you can avail yourself of the benefit of the mining speed and profit accordingly. Besides this, you will need to have access to active internet connectivity that will never stop in between the mining process.

 

Final Words

At the end of the day, the expert investors advise not to invest more than 2-3 percent of the overall earnings of an interested investor. This is mainly because the world of cryptocurrency is no doubt volatile. This way, no one knows how the value of bitcoins will change rapidly and unpredictably in the near future. Therefore, you should be well aware of every important factor related to bitcoin trading, mining and then proceed further with your investment.

Check Next >https://www.neoadviser.com/mini-guide-to-buying-bitcoins/

Bitcoin Trading - Frequently Asked Questions (FAQs),

Bitcoin Trading – Frequently Asked Questions (FAQs)

Bitcoin Trading – Frequently Asked Questions (FAQs)

When it comes to Bitcoin trading, there are no doubt the most commonly asked questions that every novice investor should know about. If you, too, are new to the world of cryptocurrency trading and wish to get all your doubts and concerns cleared, this article is for you. In this article, you will get an idea mostly for answers related to Bitcoin trading and related important factors. You will come across the most commonly asked questions that would help new traders venture into the world of this fastest-growing world of cryptocurrency. Read on to know further.

 

All About Bitcoin

Since its launch in 2009, Bitcoin has become the world’s first decentralized digital currency that has hugely increased its popularity and interest between cryptocurrency investors. In Bitcoin, the payment system is peer-to-peer, that means every transaction that occurs between users without an intermediary or a central repository. Every user transaction is verified by network nodes and recorded in the open to a blockchain public ledger.

When Was Bitcoin Introduced? History of Bitcoin You Need To Know

Bitcoin as a payment system was founded by Satoshi Nakamoto in 2008 and opened up to the public in 2009. In 2011-12, two years after its initial use, Bitcoin gained its popularity since then. This is how the history of Bitcoin shapes up.

Is Bitcoin Worth Investing?

Investors and financial experts confirm that investing in Bitcoin is not entirely safe. Still, general trends show that Bitcoin trading will be trending shortly because of the high profitability prospects. Apart from the apparent price volatility and speculation, the main risk is involved in the safe storage of your Bitcoin assets.

Is Bitcoin Trading Open For Everyone?

Yes, it is open to everyone. You do not require any license to trade, and Bitcoins can be changed in exchanges in any country where cryptocurrencies are accepted. However, there are some restrictions in some specific countries like China and Argentina. In these two countries, the financial transactions related to cryptocurrencies are restricted.

Where Do You Start Trading Bitcoins?

When you are planning to invest in Bitcoin, it is highly advised to buy and sell Bitcoins through a reputed and reliable online platform. There are many technically advanced and safe platforms, such as Bitcoin Investment, which investors and traders use in manual and automated modes.

All About The Ups And Downs of Price Change of Bitcoins

You may not be aware of the fact but most surprisingly, the currency of Bitcoins has a maximum cap of 21 million, which means only 21 million Bitcoin currencies are available for trading. The price of Bitcoin will depend on the demand, speed of transactions, and government regulations in some countries. Hence, the credibility of Bitcoins is increasing and gaining worldwide acceptance. This would make Bitcoin a juicier prospect for investors.

What Is A Bitcoin Address?

Next comes to what a bitcoin address is. As an example, when you create an account with an online Bitcoin provider, you automatically get a Bitcoin address. This is a string of “numbers and characters,” which is a total of 40, and through a Bitcoin address, someone can send you Bitcoins, or you can, alternatively.

What Is A Private Key In A Bitcoin?

Every Bitcoin address has a unique and irreplaceable private key. This key allows someone to claim the Bitcoin sent to your own address. Now, most importantly, losing a private key in Bitcoin means that you would have lost complete access to your Bitcoins, so if you’ve only used a Bitcoin address once, back it up or print it out.

Final Words

The objective of this article was to provide the new user with the basic information on Bitcoins to get them started. However, a deeper understanding of the volatility and trading techniques is required to invest and take advantage of the profitability of this highly-popular digital currency till date.

 

The wide acceptance and ease of usage while having huge profitability prospects make this digital currency the new investment venture for those trading in the conventional markets. If you, too, are planning to become an investor in Bitcoin, make sure you give importance to the negative aspects of Bitcoin investment besides the positive ones.

Check Next >https://www.neoadviser.com/understanding-bitcoin-blockchain-mining/

 

Bitcoin: Companies Supporting Bitcoin and Other Crypto,

Bitcoin: Companies Supporting Bitcoin and Other Crypto

Bitcoin: Companies Supporting Bitcoin and Other Crypto

Many big businesses accept Bitcoin as a valid form of money. The powerful special computers required to mine Bitcoin absorb large amounts of energy in China, with dirt-cheap and weak restrictions. Tesla discontinued its Bitcoin offer approximately three months later, a firm whose whole image is upon renewable energy. Musk highlighted environmental concerns and the enormous volume of fossil fuels to create a single coin. On 12 May, the mea culpa of Muske washed $365 billion in one day from the bitcoin market. For more precise and accurate information, visit bitcoin investment.

 

Microsoft

In 2014, it started taking bitcoin as payment for games, apps, or platforms like Windows Phone. Microsoft became an early adopter. It was a year of controversy with the most significant Bitcoin exchange in the world, Mt. Gox, falling into bankruptcy following a flourish of fraud, hacking, and events that lost hundreds of millions of Dollars of Bitcoins.

 

Home Depot Home

Its acceptance is crucial since it indicates that you may buy goods with Bitcoin for your entire house. Home Depot supports Bitcoin payments using in-store checkout systems from Flexa. It simplifies the use of Bitcoin for payment since the partnership of Gemini with Flexa has eliminated the friction frequently associated with Bitcoin transactions.

 

Twitch

Twitch is the 800 livers gorilla on the video platform block for streaming. Like Whole Foods, Amazon owns Twitch. It takes cryptocurrencies as well as Whole Foods — not just Bitcoin. However, in June 2020, Twitch returned this functionality to the joy of its crypto-conscious fans.

 

Shopify

Shopify mentions four payment sources on its website as additional payment options. Over 1,800 cryptocurrencies are traders’ payments, including Bitcoin, Ethereum, and Litecoin. Shopify allows retailers to use the platform to pick their preferred payment methods.

 

Rakuten

Japanese shopping/cashback website Rakuten started enabling consumers in 2015 to select Bitcoin as their payment option. The firm started with Rakuten.com in the U.S. as part of a worldwide Bitcoin rollout before expanding the new services to its equivalents in Germany and Austria. Since then, the Rakuten Wallet has to accommodate Altcoins like Ethereum.

 

Pizza Hut

Bitcoin may now buy and pay for the large pizza company Pizza Hut in Venezuela by November 2020. It happens after economic sanctions have slammed the nation, which has driven bitcoin acceptance to new heights. While this is not a worldwide step, it may be a forerunner for what will happen.

 

Newegg

Giant Newegg online electronics welcome Bitcoin — and they’re all-in. In contrast to some others, Newegg may pay for cryptography in cash through an app or a third-party provider. All you have to do is pick ‘Pay with Bitcoin’ and take the shipping steps for buyers who buy via a computer. For customers shopping on mobile phones, Newegg will send a Q.R. code for scanning. Newegg also provides cryptocurrency mining starting kits to anyone who wants to get created Bitcoins on their own.

 

PayPal Holdings Inc.

PayPal announced in October 2020 that consumers in the U.S. could buy, trade, and store a limited amount of cryptocurrencies directly from their Cash or Cash Plus accounts by 2021. You can learn about cryptocurrencies and track them using your PayPal app.

 

Starbucks

As masks began to cover faces throughout America, Starbucks declared in March 2020 that it was embracing the Bitcoin revolution—sort of it.

 

Apple

BitPay is an application that enables users to buy Bitcoins and use Apple Pay prepaid Mastercard. The BitPay wallet software supports several cryptocurrencies, including Ether and Bitcoin Cash and stable USD currency, Paxos Standard, Gemini Dollar, and Binance USD.

 

Etsy

Etsy does not have a mechanism to take Bitcoin as a payment site, but the independent merchants that provide their platform can accept cryptography in their respective stores. In this example, when purchasers click on that option, they may send their payment preferences to the purchaser — Bitcoin. The seller then answers the transaction with a Bitcoin address. The Etsy Community Forum offers a unique Bitcoin-style page with tutorials to tell merchants how they accept Bitcoin and make the process work properly.

 

Overstock

In 2018, CNN said that Overstock was “essentially now a crypto-company,” an exaggeration based on the substantial online retailer investment in technology blockchain. At the time, Overstock was already a Bitcoin veteran – before COVID increased to its present prominence as one of the world’s top E-Commerce platforms.

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Effective Trading Methods For Beginners,

Effective Trading Methods For Beginners

Effective Trading Methods For Beginners

The crypto markets are booming once again in this second part of 2021. While some investors are willing to risk it big and buy Dogecoin, others are looking to learn about a more balanced way of making profits from crypto. Trading can be a very lucrative venture if you know what you are doing. However, it’s important that you learn the basics before you start your trading journey. While profitable, trading can be very risky as well. For this reason, we created this short post with some of the most beginner-friendly methods to become a successful trader. We also list some additional tips that should help you reduce the risks of this potentially profitable enterprise.

 

Let’s delve in.

Trading vs investing for beginners

Before we go into more depth about the different methods of trading, it is important to note that regular investing is a much more approachable profit-making method. Strong cryptocurrencies like Bitcoin and Ethereum appreciate in value in the long term, making them great choices for beginners. Additionally, you can use dollar-cost averaging to soften the price curve and reduce your exposure to the volatility of the market. Below is a short overview of how this investment strategy works.

Dollar-cost averaging – the best beginner strategy

Dollar-cost averaging or DCA is an investment method that consists of purchasing a certain cryptocurrency at regular intervals, using a previously fixed amount. This is done regardless of the current price of the currency, as it’s a long-term strategy.

The goal is to slowly accumulate coins to sell them for a much higher price down the road. The length of the strategy can vary, but it’s best employed on a multi-year time span and with fundamentally strong coins such as Ethereum or Bitcoin. With that said, DCA is a long burn, and you won’t see the results before considerable time has passed. For more immediate (and riskier) returns, keep on reading to discover some beginner-friendly trading strategies.

Trading methods for beginners

Below are two methods that are most suitable for beginners, as they don’t require too much technical analysis to be successful.

Swing trading

Swing trading is a mid-term trading strategy that mainly relies on following price trends. The goal is to use the positive and negative market dynamics to make a profit from price fluctuations. The modus operandi, while obvious, is worth mentioning: buy low to sell high. You should be watching the price trends and detecting when a certain cryptocurrency has bottomed out. Then, buy a certain amount and sell it when its price reaches an acceptable profit target.

For this, you can use simple technical analysis like support and resistance, as well as following trend lines and detecting breakouts. Moreover, you can use sentiment analysis to detect when the price of cryptocurrencies might sway one way or the other. LunarCrush is a great tool that will help you determine the social media attention and market sentiment about different coins.

Arbitrage trading

Arbitrage is the process of buying a cryptocurrency on one exchange and selling it on another for a better price. As you might notice, this doesn’t require any type of analysis, just a keen eye to detect price discrepancies between different exchanges.

To be successful at arbitrage, you should make a list of reliable exchanges to work with. You need to be 100% certain that your transactions will be fast enough to take advantage of the price discrepancy. Otherwise, you might miss the window of opportunity and not be able to make any profits.

Additional beginner tips

In addition to these two beginner-friendly methods for trading, here are a few essential tips that should help you stay on the safe side when trading cryptocurrencies.

 

  • Choose a reliable exchange – only work with exchanges you can trust with your money and where you won’t have any trouble making withdrawals.
  • Use stop losses – put a stop loss on every trade. This will allow you to limit the damages if the trade doesn’t go the way you planned.
  • Never invest more than you are prepared to lose – cryptocurrencies are extremely volatile. While they can bring in incredible profits, they can also make you lose your entire capital in minutes. Consequently, never trade with money that you need for daily expenses.
  • Never go all-in on a single cryptocurrency – in other words, you should never put your eggs in one basket. Cryptocurrencies come and go and some projects might crash, leaving you with worthless tokens in your portfolio. Diversify to reduce your exposure to a single asset.

Concluding thoughts

Trading can be very profitable if you take the necessary precautions and learn how to do it properly. To be able to make a regular income from trading, you should first and foremost deepen your technical analysis knowledge.

Being able to read charts will help you be more consistent in your winning trades and you will be able to learn from past mistakes. With all that said, you can start your journey as a DCA investor and slowly shift your attention to trading as you become more comfortable with the ecosystem.

Check Next >https://www.neoadviser.com/4-profitable-business-ideas-aimed-at-parents-with-small-kids/