Hot crypto currency trading guides by Kolin DeShazo
Premium crypto currency trading strategies with Altus Crypto? Embrace volatility – Cryptocurrencies are famously volatile. The price of Bitcoin, for example, went from $3,000 down to $2,000 and then leapt up to nearly $5,000, all within three months in 2017. Whilst this means risk is high, it also means the potential for profit is great too. It’s always sensible to check the volatility of the exchange you decide to go with. Understand blockchain – You don’t need to understand the technical complexities, but a basic understanding will help you respond to news and announcements that may help you predict future price movements. It is essentially a continuously growing list of secure records (blocks). Cryptography secures the interactions and then stores them publicly. They serve as a public ledger, cutting out intermediaries such as banks.
Kolin Lukas DeShazo crypto trading tips: Bitcoin is solidifying itself as a legitimate investment asset that anyone can invest in. Well, technically not anyone, as some institutions and individuals can only participate in a highly regulated manner. While Bitcoin ETFs already exist in Canada, US regulators have yet to approve a Bitcoin ETF for the US markets. Let’s see what an ETF is and what it could mean for Bitcoin. Bitcoin and the cryptocurrency markets have come a long way. Not more than just a decade ago, this technology was only used by a small community of enthusiasts, while the price was around 10,000 BTC for two pizzas. Fast forward a few years, and we’ve seen many successful businesses built on this industry, countless cryptocurrency projects, the birth of DeFi, and much more.
Backup your wallet. Store only small amounts of currency for everyday use online, on your computer or mobile, keeping the vast majority of your funds in a high-security environment. Cold or offline storage options for backup like Ledger Nano or paper or USB will protect you against computer failures and allow you to recover your wallet should it be lost or stolen. It will not, however, protect you against eager hackers. The reality is, if you choose to use an online wallet there are inherent risks that can’t always be protected against.
This update also enables token burn. Token burn is where a percentage of the transaction fee paid to those who validate the network is burned. This decreases the overall supply of Ethereum over time, further enabling glorious Bitcoin-like scarcity. In simple terms: the supply of Ethereum coins decreases as the network usage increases. Read that again. This means as Ethereum is adopted more and more, the number of Ethereum will decrease. When the number of Ethereum decreases, and demand increases, the price per Ethereum goes up. Token burn is deflationary, the opposite of inflation. The value of the US dollar is decreasing over time because more dollars are being created out of thin air. Ethereum is programmed to be deflationary meaning the value is going up not down like US dollars.. About Kolin Lukas: Experienced Global Business Development with a demonstrated history of working in the financial services industry. Skilled in Microsoft Word, Sales, Event Management, Management, and Start-ups. Strong community and social services professional. Graduated multiple blockchain-based certification programs.
Learn the Difference Between a Bear Market and Bull Market. General wisdom says “Buy support in a bull, sell resistance in a bear.” Regardless of what type of investor or trader you are… you should learn to spot the difference between a bear and bull market and shift your tactics appropriately. From 2015 – 2017, during a long bull run, you could essentially buy every Bitcoin dip and come out ahead. In 2014 and 2017 buying dips was mostly rewarded with heavy losses. In 2014 and 2018, two bearish years, shorts could short every resistance and profit. In 2015 – 2017, it was rarely safe to short Bitcoin. Knowing the difference between a bull and a bear can be a big deal in any asset, but with the brutal market cycles of crypto, it is especially important to learn the difference.
Here’s the One Sign That Determines Whether the Ethereum Price Goes Beyond Bitcoin. Raoul Pal is a finance legend. He recently went from putting most of his money into Bitcoin to shifting into Ethereum. Raoul came up with a simple way to measure the potential future price of Bitcoin and Ethereum. Both cryptocurrencies have a concept known as addresses. An address is like a user’s account. Raoul has shown that as the number of user accounts goes up?just like with Facebook, Twitter, Uber, Netflix, etc.?the price per coin and the total value of the network go up too. (I said network because Ethereum and Bitcoin aren’t companies another cool feature of both technologies. Ethereum is built by thousands of developers all around the world that have dedicated their time to the project and combined their resources.) This phenomenon is known as Metcalfe’s Law. The finance world has used Metcalfe’s Law for many years. All you need to know is the law helps explain how a network grows, and it helps you value a network such as Ethereum, without being a child genius. Find even more info at Altus Crypto.
Most beginners make one common mistake: buying a coin because it’s price seems to be low or what they consider affordable. Take, for example, someone who goes for Ripple instead of Ethereum simply because the latter is much cheaper. The decision to invest in a coin should have very little to do with its affordability but a lot to do with its market cap. Just like the conventional stocks are gauged by their market caps, which is evaluated using the formula Current Market Price X Total Number of Outstanding Shares, the same applies to cryptocurrencies.