Whist many believe the crypto market is as high as it can go it is but just starting a journey from its infancy.
Only a small percentage of investors have entered the market and they are spread in over nine thousand different entities.
Like any investment market, there will be good eggs and lame ducks and this is no different.
However Lame ducks can be driven by excitement and greed creating big gains and bigger losses.
The top 100 listed shares should represent reasonable value and it is not my desire to dig deeper than that.
The leading coin represents a store of value for both small and large investors.
An ideal transactional chain for payments and receipts across the world
The first Altcoin for transacting digital money, payments, and transactions over BlockChain
Cardano restores trust to global systems – creating, through science, a more secure, transparent, and sustainable foundation for individuals to transact and exchange, systems to govern, and enterprises to grow.
Not unlike Cardano and in the same market place although with greater transactional speed
Polygon solves pain points associated with Blockchains, like high gas fees and slow speeds, without sacrificing security. This multi-chain system is akin to other ones such as Polkadot, Cosmos, Avalanche, etc, but with at least three major upsides:
A trading platform for many Cryptos. There are many other such operations like Coinbase, eToro, and FTX.us.
Each trader carries selected coins of their own choice so you often need more than one
Understanding crypto mining and what it means
The process of mining underpins peer-to-peer cryptocurrencies by verifying and ordering transactions. Miners run mining “rigs,” computer equipment that generates new blocks of transactions to be added to the cryptocurrency blockchain. In return, miners are rewarded by earning newly minted coins and transaction fees.Crypto for dummies
The mining operations support the whole blockchain structure and help prevent attacks on the system by hackers, spammers, and those wanting to subvert the Cryptocurrency.
It is a very important part of the Blockchain structure however it requires large capital inputs and power usage to make it work.
Mining has had some bad press in recent times although generally unwarranted.
China banned bitcoin miners from the country. Many miners were based in areas with very cheap power and low costs and were forced to move offshore.
China sees the American Crypto structure as detrimental to their future and will possibly bring out a similar standard sometime in the future.
Elon Musk strongly criticized mining because of the high power use and resulting Global emissions from power generation.
However, he was quickly placated when it was shown that mining rigs were generally in areas with excess generated capacity and had little influence on Global warming.
A mining rig is a mass of computers working around the clock providing computations to support the network. They are rewarded with bitcoins or Altcoins as payment transactions.
Generally, the coins were quickly traded however in recent times with low-interest rates coins are often financed and held waiting for a large price increase.
Mining is for specialist operators and although anyone can do it the possibility of a financial return is limited
Supply over demand and presumption of profit equates to the price.
Short supply will build demand just like any commodity and the higher the demand the shorter the supply will become. For instance, there are only 19 million bitcoins available and then no more can be minted. This is etched into the rules of the token, Currently, over 75% have been issued so a shortage is about to occur.
However, this is a trading platform where fast-paced increases and decreases in value can occur. This can be triggered by rumors or news and once started often takes substantial steps.
Do you receive a golden bitcoin?
Only in your mind as tokens are not released. This is a misconception by many uninformed participants.
Furthermore, you can buy a small part of a bitcoin because it is broken into minor parts just like a dollar into cents.
There are 100,000,000 satoshis (sats) in a Bitcoin. therefore you can buy one Satoshi for that percentage of the current bitcoin price. At $60,000 that is less than one cent.
Are all bitcoin transactions untraceable?
Bitcoin does not make payments anonymous — just really hard to trace. Using Bitcoin to make payments does not mean that your transactions are hidden from the world. Since Bitcoin is built on blockchain, which is a public ledger, the address of your crypto wallet is visible to everyone.
What is FIAT currency?
You will often hear the term Fiat currency which is the nominated currency in a country, It may be Dollar. Pound, yen, Rubble, etc.
Fiat is taken from the Latin language The term is derived from the Latin word fiat, which means
“a determination by authority.”
Fiat currency is as volatile as Cryptocurrencies and that is why a value against deflation is necessary.
When the dollar was backed by Gold there was a level of stability however that no longer applies.
In some countries, the Fiat has been so degraded against the US Dollar that it becomes valueless.
Zimbabwe and Argentina are two prominent ones.
Why did el Salvador adopt Bitcoin as a national currency
el Salvador receives considerable sums from overseas to keep the residents afloat
Last year alone remittances to El Salvador amounted to almost $US6 billion, or 23 percent of its gross domestic product, one of the highest ratios in the world.
Furthermore, the cost of transacting the transfers amounted to a staggering $530 million in direct charges to the recipients. Banks have notoriously high transaction charges which can leave small tranches almost valueless.
By using Bitcoins the transaction costs are reduced to very little.
It is too early to judge the success or otherwise of this position as the economy is still quite divided and it can not be determined as a roaring success.
Other countries are sure to follow in the coming year and several have lodged an intention to do so.
What are Altcoins?
The term “altcoins” refers to all cryptocurrencies other than Bitcoin. These were started in 2011 as the Alternative to Bitcoins and there are currently over 9000 of them on the market.
What are Hodlers?
Simply people that hold on to the coins as long-term investors as opposed to day traders.
Are Black Swan events important?
A Black Swan event is a large problem that significantly affects the world.
Covid-19 would be an example of a situation that could not be predicted but affected the market
Trading with copy portfolios
This is something new that offers some protection to the uninitiated trader. Experienced traders will allow you to copy all or some of their trades so that you are provided with some level of security. Their full trading history is available so that you can sit with those with a consistent winning portfolio.
How much money do you need to start investing
Generally, investments as low as us$50.00 are accepted in a trading account. I fact I have one of these to test the theory. My Tezos shares have gone up by about 30% over a few months so they represent far better than bank interest.
For those starting out a recommended practice is to place small and regular amounts on the market much like a saving scheme. These amounts should be considered as risk capital however you may gain great value over time. If however they were wiped out you would not be financially ruined.
What is a wallet
This is your purse that holds your transaction keys and details of all transactions.
This is necessary if you are using your asset as a spending medium.
Are Cryptocurrencies a safe investment
No one can offer a guarantee of success in any coin or altcoin. The chances of the more prestigious coins disappearing are indeed too small to measure and they will always hold some value.
A problem lies in the trading mentality. When an asset starts to fall sellers may queue to offload their holdings at any cost, as sellers join sellers in a herd mentality it is difficult to gain any value for your asset.
However, most digital assets have a bottom price where buyers will perceive value and re-enter the market thus increasing the price again. Then more buyers see the rise in price and the roller coaster begins again.
What Is the Satoshi Cycle?
The Satoshi Cycle is a theory that says there is a high correlation between the price of Bitcoin and Internet search volume for the word ‘Bitcoin’ and related terms. The theory was proposed by Bitcoin expert Christopher Burniske in August 2017 when Bitcoin hit a record high at the time. The name of the idea derives from the as-of-yet unidentified creator of Bitcoin, Satoshi Nakamoto.
Other ways of trading Cryptocurrencies
I will only overview these because they are in the professional realm of trading.
|Options||Buy and sell options|
|Futures||selecting a future value|
In the blog column to the right, you will see many more explanations and profitable ideas on which to trade your Crypto portfolio.
You should remember that what goes up usually comes down so be wary of major drops in the market.
You can see above in 2021 when bitcoin dropped by over 50% in a very short time. It has regained that higher position again but that is the nature of the business. It is exciting.
As the wealthy end of the market start taking large positions in Bitcoin a level of protection should be hedged against violent knee jerks.
Furthermore, as the remaining available coins are fulfilled it will become a different market. Many see this as digital gold that will hold value against any currency.
Is a hundred thousand dollar coin possible, yes it is, and going right through to the one million dollars if you believe in growth theories?
The starting point for your portfolio