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5 Most Common Misconceptions About Cryptocurrency

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We still have people who do not know that cryptocurrencies have been on the market for more than a decade. Not all of them, of course, but BTC has been around for even more. Despite this, most people aren’t familiar with them, and once they develop an interest, many things leave them confused. In the first years, while crypto indeed was a mystery, myths and misconceptions arose, and some of them remained to this day. In this article, we are going to talk about the five most common misconceptions about cryptocurrency. Could you keep reading and see what they are?

Source:medium.com

It’s Anonymous

These days it is popular to get involved with crypto. Such is the trend. But most people see it as some type of mystery, which grants them anonymity while they mine and trade it. This is not the case. It is actually more of confusion that the term pseudonymity creates with new users. It is because of this that people believe that crypto guarantees their anonymity, which makes a great misconception.

Furthermore, not all crypto’s are the same. One of the most famous ones, Bitcoin, provides pseudonymity because the user’s personal data are not disclosed during the transactions. But, this doesn’t mean that your exchange or blockchain doesn’t know who you are or that this data isn’t available to governmental and financial institutions who look over the legitimacy and security of crypto trading.

What people are actually are looking for are other cryptocurrencies such as Monero and Dash. They do offer their customers with a high level of anonymity and the highest possible levels of security and privacy. Even with all of that, once you log onto an exchange and create an e-wallet, you need to leave your personal data.

Cryptocurrencies are Mostly Used for Illegal Activities

Source:cryptotim.es

Yup, you heard it right. Many people link cryptocurrencies to illegal activities that occur on the other end of the web specter. There are those who believe that you can operate with crypto only on the dark web. Just like anything else in this world, there are people who conduct illegal activities with cryptocurrencies. But, they are few and far between to consider crypto as anything remotely illegal. Most activities conducted with crypto occur on the open market and are entirely legal.

This opinion still lives because people understand the numbers, but percentages not so much. During the last year, the dark web activity, which included Bitcoin, amassed to $829 million in transactions. This is a significant number on its own, but it’s just a tiny fraction of entire BTC transactions that happen during one fiscal year (0.5%). What this means that many other FIAT currencies are used on illegal markets much more compared to crypto. If you want to discover what we’re talking about, just look into how much US Dollars or Euro are represented on illegal markets. You’ll be astonished.

Tokens And Coins Are The Same Things

Source:steemit.com

All of the terms regarding cryptocurrencies are new to most people, and it’s no wonder we have as many misconceptions. Tokens and ICO (Initial Coin Offerings) are not the same. Blockchain has both of them, but coins are only there to manifest the value. Tokens, on the other hand, are much more. They do not only hold the simple value but also intangibles such as income, property, utility, and fungibility. In terms of crypto, the property can both refer to real estate transactions, but also to intellectual property. Tokens are much more broader term that also goes hand in hand with terms such as loyalty points and other commodities that crypto holds.

It’s Untaxable Income

Sometimes this statement holds the truth. There are countries in the world that haven’t out tax on crypto. If you are lucky enough to be living in places such as Holland, Denmark, Italy, or Singapore, you don’t have to pay taxes on BTC and similar crypto. But, despite the lack of regulations right now, it’s only a matter of time when things are going to change in these countries. While there are no established tax rules in some countries, it doesn’t mean you can do whatever you want. It all comes down to what you’re allowed and what you shouldn’t be doing regardless of the regulations.

On the opposite side of the countries, we listed above, you have the United States, United Kingdom, and Australia, where cryptocurrencies are seen as capital gains and thus is taxed. So if you live in the land down under, and want to start your crypto life with bitcoinaussiesystem, don’t forget the taxes. In addition to everything said above, we also have Japan that sees cryptocurrencies as miscellaneous income, and Germany that regulates it differently depending on either you sell, buy, or invest crypto.

Bitcoin is the Only Cryptocurrency that Matters

Source:coindesk.com

Yes, it all started with BTC. It is the oldest and the most valuable cryptocurrency, but it’s not the only one. Thanks to this, it became the most popular one, and it often overshadows the other ones available. It also holds the most incredible value, so there’s that. This is precisely why most people believe that they shouldn’t look further from it. While you won’t do anything wrong, if you focus only on Bitcoin, you could miss on the opportunities other crypto’s offer.

You should also know that due to the limit of available BTC and the fact it has been on the market for so long, it gets harder to mine it. We are not exaggerate anything, but while BTC lives of its old glory, many modern cryptocurrencies have upped their game and today have much more to offer compared to BTC. We should also mention the small matter of price, where BTC is reasonably expensive and provides lower margins of gain for trades in recent times. By now, you must be understanding that other cryptocurrencies such as Litecoin or Ethereum can rival BTC. Maybe not today, but soon. You are probably googling them as we speak.

7 Crypto Trading Mistakes Beginners Always Make

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As the popularity of the cryptocurrencies continues to increase, more traders want to get their piece of the cake. Even though many people have managed to make a fortune with the crypto trading, it is necessary to say that the endeavor is not as easy as someone would have thought. It is necessary to get familiar with the entire process. However, inexperience is often the reason why people fail in achieving their goals. We have gathered the most common mistakes that the beginners make. Keep reading to find out more and simply avoid them on your path to success.

Source:cointelegraph.com

  1. Using the wrong address

This one is perhaps the most frequent among the beginners but it can actually happen to anyone. It is very important to triple check the wallet address before sending the coins. You can either fail to transfer the coins due to the incorrect data, which is a better option, and the worse one – when the transaction is successful, but the coins go to the wrong person that you didn’t want to receive your coins. In order to avoid this mistake, it is necessary to check all the information before the transaction is complete. It will save you a lot of headaches in the long run. Give yourself the opportunity to take your time because it is the only way to avoid making mistakes because you are in the rush.

  1. Failing to make a trading strategy

Being curious is not a bad thing, but switching goals can be pretty confusing and won’t get you far. Most beginners will simply go with the flow without a clear goal in mind. That can significantly impact your results. It is necessary to make sense of it all and decide about the direction you want to take. It will help you make better decisions and keep the highest level of control possible. Assess your strategy from time to time and do the necessary modifications.

Source:medium.com

  1. Letting the fear get in the way

The Crypto market fluctuates. It is simply the way it is. It is something that should be considered completely normal and don’t let the fear impact your decisions. First of all, it is necessary to control the amount of money you invest, so you won’t have to be afraid even if the value drops enormously. If you simply invest a small portion of the money you have and you are ready to face the loss easily, then that won’t impact your financial situation significantly. Being emotional while trying to achieve a professional goal is certainly not something that goes hand in hand. Even though there is a possibility of big winnings, there are risks, so think of it as you would about any other job. Set some reasonable hours and don’t let the trading become the most important thing of your entire life.

  1. Becoming too obsessed

Some beginners are so focused on the way that the crypto market evolves and all the changes that happen, that it can turn into obsession very easily. This is certainly not good or healthy. It is necessary to set some healthy boundaries and let yourself relax. Being constantly surrounded by crypto topics and the people who are trying to succeed in the same area may just lead to making bad decisions.

The only way to be able to participate in trading and make good moves is to make a balance in life and use your time for other things as well. Being too focused only on trading will eventually lead to impatience and anger. Yelling on everyone around you won’t exactly get you far. It can only lead to stress and developing many emotional issues.

  1. Stalling

This mainly happens because people constantly wait for the value to increase. Stalling and not being able to make a decision when to sell the coins may lead to huge losses. Becoming too invested in trading may lead to becoming greedy and always wanting more. This is certainly something that needs to be avoided. Sell your coins when the price is good and simply cut the decision-making time. Trust your gut and the instincts will lead you.

Source:usethebitcoin.com

  1. Making hasty decisions

As previously mentioned, it is good to avoid stalling, but the other extreme is making decisions too fast. Usually, traders start to rush their decisions when the value of some of their coins drop. So, instead of reevaluating their strategy, they begin to make some unusual decisions as a sort of revenge for a “failure” with that one. This is not a smart way to handle your trading, so it is important to keep your cool.

  1. Being too optimistic

Some new traders simply invest a lot into one type of coin and blindly believe that they will make a success. Even though it’s good to be optimistic, being overly optimistic can lead to a failure and a huge disappointment. You should set reasonable goals and learn about the process. Every mistake you make will teach you something, so embrace it. It is certainly something that will be occurring on a regular basis, especially in the beginning. It is important to keep in mind that until you gain some experience you are not likely to win big with every trade.

All these mistakes are closely connected and they often come one after another. If you just started trading and you simply cannot make a sense of it all, take a step back and analyze your behavior, strategy, and the goals you are making. This way, you will get a better understanding of the things you need to change in order to improve your trading style and start making some serious money. After you do all you can to learn, the only thing left for you to do is to test your trading skills and see if there is still room for improvement. If you want to join other traders, check cryptotrader.software. It is a great opportunity to see how far you’ve come.

5 Underrated Cryptocurrencies in 2020

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Every part of the technology is advancing and in the previous decade, the cryptocurrencies became a part of the modern world. Many people choose them because they allow the users to have better privacy, for now, there are no taxes on them and the transfers are a lot faster than the usual bank transfers that can take a few hours or days to be completed.

No matter what you want to do, from shopping to money transfer and online games, you can do all of that with crypto coins. When you use the crypto wallet, your coins are safe and secure. The statistic shows that when you use this currency, you are less likely to be a victim of a hacker attack and your money will not get stolen.

You’ve probably already heard about Bitcoin, Ethereum and Litecoin, but do you know that there are actually hundreds of different crypto coins that are available for the users? Here we are going to talk about the underrated cryptocurrencies and why they may be even better to use than the already well-known ones.

Cardano (ADA)

Source: 123rf.com

This currency is different from most of the others because it offers so many different features. Engineers and developers are getting really interested in these coins because they offer them more than just money transfer. It is considered to be more of a platform than just a coin. The developing team behind Cardano consists of reputable and highly competent people who are constantly working on the improvement of the whole project.

It is said that this currency offers more power-efficient PoS consensus protocol and that the number one goal of the ADA team is to show sustainability, scalability, and interoperability.

However, there are a few negative sides of this project. It is said that the team might not be able to fully deliver the depth and scope of the project. The continuous testing and improvement slow down the project progress and the applications that are built on top of the project may not become widely used. However, this is a promising project that might become one of the best on the market.

Tron (TRX)

Source: hacked.com

This platform focuses on decentralizing the internet with the power of blockchain technology. The Tron Virtual Machine is compatible with Ethereum’s Virtual Machine and the ETH dApps can work on TVM with minimal revisions. It also allows high transaction speeds that reach over 2,000 transactions per second.

With the high speeds, users can buy and sell more coins and they can finish their transactions in almost no time at all. Binaryx advises that and digital trades need to be made with professional traders so that your transfers can be safe and secure. Everyone who is interested in this can start trading cryptocurrencies and you can monetize your trading skills in no time. People just need to make smart and fast decisions and follow the current market.

Experts say that there are a lot of positive sides to this currency and platform, starting from the fact that it is one of the fastest-growing dApps platform, up to the team’s strong marketing initiatives and its scalable and cost-effective functions. However, many people say that there is a lack of dApps diversity and that most of the features and parts of the Tron Whitepaper were copied from other platforms and blockchain projects.

Nano

Source: tokeny.pl

At the moment, Nano is the 23rd largest currency in the crypto market. This project competes in the saturated UVP arena of payment and for now, it is under shadowed by more popular cryptos like BTC, ETH, and LTE. However, the innovative block-lattice system that Nano has is working very well, so the luck of the developing team behind it may change.

The coin took a bit of a fall in the wake of the Bitgrail currency exchange collapse in 2018, but it is safe to say that now the project is winning over new proponents with the transactional efficiency that it is offering.

Ravencoin (RVN)

Source: medium.com

At the moment this is the 58th largest cryptocurrency. It is said that it is a clone of Bitcoin, but it is more focused on security token offerings (STOs). It is expected RVN to figure much larger in the futures of Overstock subsidiaries.

The CEO of Overstock, Patrick Byrne said that they have 20 different companies within Medici Ventures and that they are trying to integrate and leverage RVN into different projects. One of the news he shared is that people will be able to issue security tokens on Ravencoin.

We will just have to wait and see what happens and if this coin climbs up the ladder.

Enigma (ENG)

Source: ab2l.org.br

It is said that ENG is a privacy play that is focused on creating a privacy layer for the decentralized web. The data in the blockchain can be used without breaching the privacy of the users and that is possible because the Enigma platform uses secret nodes with stalked ENG.

Experts say that this crypto coin has the potential to turn blockchain projects that were not focused on privacy into really secure and private coins. With the dynamic Enigma has, it has the potential to become one of the most valuable coins on the market.

Other underrated cryptocurrencies

Source: medium.com

There are so many coins that are not that popular yet, and if you want to be a part of the blockchain, you should know which ones you should focus on. Other cryptocurrencies that are not that famous yet include:

  • Enjin Coin (ENJ)
  • Decentraland (MANA)
  • EOS (EOS)
  • 0X (ZRX)
  • Chainlink (LINK)
  • Basic Attention Token (BAT)

What is your experience with cryptocurrencies? Which one is your favorite? At the end of the day, they are all similar and they are all different in their own unique ways. Depending on what you are using them for, the size and number of transfers and other features you might need, you can choose the coin that works best for you.

Experts say that we can expect the crypto coins to completely replace the current currencies all over the world in the near future, but we will have to wait and see. You can mine them, buy or sell them and some people just keep them to wait and see if they become more valuable in the future.

When the Bitcoin came out you needed hundreds of coins to just buy one pizza, and now they can buy you the home of your dreams. So, don’t waste another minute, who knows, maybe one of the underrated coins will make a boom larger than the Bitcoin one.

How Long Does it Take to Mine 1 Bitcoin in 2020

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Mining is hard work, in both real lives and in the online community. Cryptocurrencies are slowly but surely make their way into the market and becoming more mainstream with every year that passes by. The number of people that are investing in this business is rapidly increasing but most of them think of this as an easy and quick way of acquiring assets. In reality, it’s a bit more complicated than that. With different cryptocurrencies available on the market is can be very hard to pick one, so, it may be better to stick to the one that is the most popular: bitcoin. Let’s dive into the world of mining and see how much time you will need to invest in order to dig just one bitcoin.

Source:macleans.ca

How does mining work?

When mining occurs every bitcoin place that is doing the mining adds a new block to the so-called Blockchain; for every unit that is being created, the one who has made it will get a prize. In order for the new unit of the Blockchain to be created some work needs to be done; in essence, this process relies on the correct solution of the complex maths problems and it works on the principle first comes first served. From this, you can already guess that for this job you will need a machine that is quite powerful. Bear in mind that as every mining product this is a process with an expiration date, meaning that there is no infinite amount of bitcoins that can be dugout. New bitcoins will not be in-game in this century as some assume.

How fast can it go?

Some estimates are that there is a bitcoin dug out every ten minutes. New units have a specific, so-called, price that can be lowered since there are more and more miners. With the technology available it would be absurd to try to mine with your home computer no matter how strong you made it be. Computers use electrical power which has to be paid, so using a lot of machinery can lead to additional expenses that might not be covered with what you are digging. Since the whole process relies on doing mathematical problems that require computing power, more power means more speed; unfortunately, your PC cannot compare to the heavy machinery backed by some big companies so the odds are that you will take months and even years to dig a unit.

Due to this, many have decided to join forces and share the workload amongst themselves but also the profit. Even though this would mean lower income, they will be more frequent and in the end, they will add up. It has been estimated that by doing so you can get more than digging alone since this allows you to compete with some serious machines that are out there.

Source:bitcoinfuture.app

If you are wondering where to start this new job of yours, why not pick the best one available there. bitcoinfuture.app  offers everything a new miner can ever want and need; easy to access platform and tracking your success in real-time.

Don’t forget to take into consideration that you will need to invest in your equipment and use a lot of electricity since the hardware will work all the time to provide the desired outcome. Cheaper the energy and better hash rate will grant you a better outcome. Also, when picking equipment, sometimes it is better to be counterintuitive, and choose cheap, replaceable parts rather than expensive ones; pick the ones that can sustain a lot of wear and tear, and if not most important warranty is always a plus. When picking hardware, it may be better to get GPU rather than ASICs since they are less expensive, available and use way less energy while working.

Should I try alternatives?

When hardware is hard to get by, and it keeps breaking and using additional resources you might think about other options, such as cloud mining. But, in order to reduce the cost of individual mining, you would perhaps like to reconsider this as an option since it can reduce the money usage and increase overall income.

In order to do this, you will need to become a part of an organization and this one can come along with some costs, since you cannot just become a part of mining community without making a tribute, most of them have some sort of a membership that has to be paid every month. So, take this into consideration when changing the way you earn your bitcoins. It can be a rocky road but don’t give up at the very start and give it some time to work it out. In order to make a viable comparison of the income when you did regular mining and this new source, give it a year or so. After this period of time, you can make a proper decision whether to continue with this type or get your assets together and go back to the hardware building.

Source:nassimbelouar.com

This can also be a good transition if you want to build a more powerful machine, you can use a year to slowly mine and invest in improving your equipment. Its simple better equipment, more power, more income. Another positive side of this way of getting coins is that, even though it is not as profitable, it is not as risky, and you can start and stop anytime.

Conclusion

Mining is a hardworking and mindful process that has to be thought through before entering into it. It is always good to know who to accompany since the chances of you succeeding alone if you don’t possess a monstrosity of equipment is low and very slow. Good thing is that you can pick and choose how will you do it and give a test run with cloud mining before using hardware. It is always good to go with the pool and become a part of a bigger organization since it will be easier and more profitable in the end.