crypto trading

5 Most Common Misconceptions About Cryptocurrency

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.

5 Mistakes All Crypto Owners and Traders Should Avoid – 2020 Guide

Probably the most common topic spoke on the internet portals lately are the cryptocurrency and the predictions for the future of this market. As we are globally heading towards the recession, due to the pandemic of covid-19, more people are thinking of investing in crypto. Mostly because the mining process is being simplified by the appearance of the new cloud hashing possibilities, and the rise of mobile mining. Aside from mining, a possibility to trade this virtual currency on many of the platforms available both on computers and smartphones is quite convenient. You are even able to exchange your digital currency for fiat currency in a matter of minutes in countless of exchange offices, and even on ATM’s.

These digital assets have been breaking records in millions that were invested in them by different people. This all sounds very promising, but owning and trading is not that simple. It requires a fair amount of knowledge and experience if you plan to earn money. A lot of good quality information and reviews about different cryptocurrencies and the market can be found on Kryptomoney.com. In this guide, we provide you with the 5 mistakes all crypto owners and traders should avoid.

1. Not arming themselves with knowledge

Source:quantnews.com

The first and biggest beginner mistake owners and/or traders make is a bad understanding of the market and trading itself. Beginners often think that it is enough to have a good trading strategy. However, this is the reason they almost always lose money. We can compare this to trying to start a company in a sector you know very little about. But you are eager to invest just because everyone else is doing it.

The solution to this problem is quite obvious. You learn as if there is no tomorrow because with knowledge comes results. Beginners tend to read only a few good books on trading and only a few articles before they start trading. They exercise too little and very quickly forget how important knowledge is when it comes to finances! Especially in times like these, when the market is experiencing extreme turbulence.

In fact, beginners usually know so little about financial trading that they often don’t even know where to start. How to avoid the most obvious and biggest mistake of all of them?

By learning, reading, attending webinars, attending seminars, practicing on a Demo account. If you don’t have time, do your best to find it! You never know how long it will take you to achieve constant profitability.

2. Loss of important data

Source:databackuponlinestorage.com

Given the fact that we are talking about a system of very complex mathematical algorithms and mechanisms, such a system is fully understandable only to a part of the public with a high degree of computer education and literacy. Those with less IT education are at risk of making a mistake that can even leave them without their resources. Most of these people are simply turned on by the talks of others and their experiences in the area. Thinking that this could be done by anyone with some spare money for investment, makes them jump on the train. The most commonly reported mistakes are related to the loss of key data and information, the possibility of unauthorized intrusion and theft of keys, as well as unintentional disclosure of key information. Unaware of the possibilities of theft they keep the data about the wallets stored on their phones, exposing them to hacker attacks. Avoid this at all costs.

3. Investing in one currency only

Source:bernardmarr.com

Unlike national currencies, crypto has no firm foothold and is not regulated by monetary policies. Modern markets are volatile, which may result in the affirmation of a new cryptocurrency, which could ultimately lead to the cessation of demand for one particular crypto and thus make it almost worthless.

Investing in more than one crypto, following the stock market – the appearance of the new currencies and the prices of the already existing ones is smart advice you should start practicing even before you obtain your first crypto.

4. Poor risk management

Source:coindesk.com

When it comes to business, risk and rewards go hand in hand in any market. Indeed, beginners in this particular field do not pay much attention to it. Risk management is an essential part that will define your success in crypto trading. You can’t expect to make money blindly by following a trading strategy. When you manage risk effectively, achieving success becomes a reality, not just an opportunity.

Only risk the capital you can afford to lose and nothing more. Believe it or not, many beginners in the market trade capital they cannot afford to lose. This can be disastrous because these markets, like most other markets, such as stocks, are extremely, notoriously risky. There is no guarantee that you will always make money. Losses in trading are part of crypto trading. So, decide when is the best time to trade, and stick to your decision. Sometimes people get hooked and wait too long, never being satisfied with the price they can get. As a result, the price drops even lower.

There is also additional pressure when trading money that you must not lose. You make wrong decisions by trading like this, so try to avoid it if possible.

5. Short term investments

Source:armyofbitcoin.com

There have been many people in the past who thought this is a good opportunity for a short-term investment. They rushed to get a bank loan, invested in crypto, but the price suddenly fell and they were left with a huge debt. Be aware that this market is not suitable for short-term investments. Only the long-term ones make sense in the crypto market. These currencies are prone to rise and fall on a daily basis. If you recognize that a certain currency has the potential to grow in a couple of years, go for it. Otherwise, stop until it’s too late.

The Crypto market is a good trading opportunity. But only if you invest time in reading, analyzing, carefully planning, and observing.

Blockchain and CryptoCrypto as a Solution

Ten fabulous predictions for the future of cryptocurrencies

We have grown from paying in cash and then using the cards for online transfers. However, one way or another cash is involved, and it’s getting difficult to carry it everywhere. As we are moving towards everything compact, cryptocurrency was introduced as an effort to give the world an alternative to cash.

Although it’s been ten years since cryptocurrency came into existence, there is still a significant population of people whe are unaware of its significance, or they don’t even know about it at all.

In December 2017, the world find out about bitcoin (a cryptocurrency) when its value increased quickly, and It went up to $22k. People who bought it a long time ago for a hundred or $200, made fortunes. Since then, it’s fluctuating, but the crypto traders and blockchain experts are hopeful that one-day, Crypto will take over the whole world. However, they are looking forward to the many significant countries to make it legal for that to happen.

To this day, only America, the United Kingdom, and Australia have come forward and made the mining and trading of cryptocurrency which you can read more here.

Here are ten fabulous predictions for the future of cryptocurrencies experts made:

Banking Sector

Source: pumapay.io

As cryptocurrencies are a means of finance, they have a lot to do with banking and finance sectors. Experts predicted that as the people start using the cryptocurrencies more, the banks will eventually accept them, and it will also allow banks to reduce their amount of complexities. They said that banks would offer cryptocurrency accounts, debit cards, you will be able to buy cryptocurrency directly from ATMs and cryptocurrency loans will be provided as well.

Swift processing:

Source: mybloggertricks.com

Process of buying things online or sending money to your loved ones across the world, there will not be any processing time. Your loved ones or anyone won’t have to wait for 3 to 5 days to get their hands on the money you sent. With cryptocurrencies, all the processes will be swift. You can make small or substantial transactions without worrying about the transaction fee because the fee will be low as compared to traditional means of money transfers.

Crypto Trading

Source: pixabay.com

Bitcoin is the most popular and profitable cryptocurrency to date. New currencies are coming into existence. Some of the existing ones are emerging and becoming more famous day by day, Cryptocurrencies like Ethereum, Litecoin, Ripple, and Steller. There is going to be a significant rise in their value, and eventually, their prices will go high as bitcoin.

With the increase in cryptocurrency value, traders see a profitable bright future in crypto trading. With the growth in the value of these currencies, exchanges with one another are happening doing well in life. More often. People are buying and selling them, some people have become full-time crypto traders.

Blockchain and CryptoCrypto as a solution:

Source: pixabay.com

As more and more industries are seeing blockchain as the ultimate solution for securing their data. With blockchain comes crypto currency, if you can become a licensed cryptocurrency minor, in future, you may be able to support entrepreneurs with loans, saving them from massive interests and lengthy processes of the bank loans. Although some developments still have to take place, we are talking about the future and the possibilities cryptocurrency is going to present.

Adaptation by the Government authorities:

Source: pixabay.com

In the next ten years, countries will start adapting cryptocurrencies for governmental transactions under the SEC instructions. Blockchain is capable of simplifying the process of inter-agency or inter-authorities confirmation. Currently, every agency must maintain its database and then wait for the other one to process and give it a trough.

Date management and sharing of resources and distributed ledger will simplify and speed up the process, taking away all kinds of delays. To manage the cash flow in the country, cryptocurrencies will be chosen, and once they are implemented, this will empower the technology even more.

IOT & Crypto:

Source: freecodecamp.org

IoT is already ruling the world with its offerings, and some experts are very positive about these two techs are to serve the society by the joined venture. The first goal is to use a blockchain for secure and scalable communication between IoT abled devices and to provide stability to allow micro-investments in an efficient way for smart devices. I will only make the article complex and lengthy if I started talking on this topic. So let’s keep it to the point for now.

The $1M Claim:

Source: freecodecamp.org

An expert has predicted that by the end of the year 2020 bitcoin closing price will be $1 million. An extreme claim, but if we take a look at bitcoin’s growth in the past 2-3 years, this claim is believable. If the bitcoin can hit the $1 million mark, it will take over the world’s economy, making the dollar knight of the past.

Everyone will be paid in CryptoCrypto:

Source: pixabay.com

Some of the freelance workers and developers are already being paid in CryptoCrypto. Many of the world’s big companies have started to pay by using bitcoin and some other cryptocurrencies for the services they acquire from the internet (freelancers).

As no intermediary or bank transfers involved, this benefits both the service providers and service buying company as well in terms of transaction fees, and it removes delays as well. However, these transactions are only possible for the countries that have legalized the cryptocurrencies.

Volatility:

Source: pixabay.com

Many measures are being taken to remove the volatility factor in cryptocurrencies. The regulation of the markets and country are factors behind. Once the cryptocurrency trading reaches the peak, these factors will go away, eventually taking away the only fear concerned with cryptocurrency.

Cryptocurrencies:

Source: pixabay.com

The new cryptocurrencies are going to emerge, as bitcoins, Litecoins, and Ethereum have made a powerful impact and impression on the world. And they are the first products provided by the blockchain. There’s a high chance there will be more innovative cryptocurrencies will be invented in the coming years.

Conclusion

Cryptocurrencies and blockchain are the technology of the future. If you adapt or start learning them now, you can be part of changing the world’s financial curve. They are the alternatives of every technology being used to secure and store data and to open new ventures to support the innovative foresighted entrepreneurs.

7 Crypto Trading Mistakes Beginners Always Make

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.

Bitcoin Price Prediction In 2020

If you’ve been in the cryptocurrency market for a while, you probably know that the most popular virtual coin is BTC or Bitcoin. Also, you probably know that this cryptocurrency is the most valuable and has had the highest recorded value almost two years ago, in December of 2017 when you could sell one BTC for $19,783. Since then, Bitcoin has been on the decline, with the lowest value in the past two years recorded in early 2019.

Img Source: financenews.tv

However, it is noted that the value of this cryptocurrency is returning to a high level, which may be an indication that next year will be very important when it comes to BTC. A lot of experts have expressed their opinion on the rise and fall of Bitcoin in 2020, so at the moment it is quite interesting and uncertain how things will look like in the future. While no one can predict with certainty, there are some patterns that have been repeated over the years regarding Bitcoin. If you are trading this cryptocurrency, the best solution is to use the detailed statistics and help provided by experts on sites like Profit-Revolution.com. This site is specialized in cryptocurrency trading and helps users to better understand market trends and invest more securely. However, currently, the most important question is what is the forecast for the price of Bitcoin in 2020? Well, keep reading and check the opinions of trade and finance experts.

News on the BTC market that may affect the price

Img Source: bitcoinist.com

Just over a month ago, on September 23, 2019, the long-awaited platform called Bakkt was officially launched, intended to bring a new revolution in the virtual coin’s market. It should provide security and transparency in the BTC business for all institutional and merchant investors. This means that Bitcoin would be more implemented in the traditional financial system and payment methods, and thus return the value closer to the highest recorded.

In addition, the technologies used by BTC can significantly affect the adoption of this cryptocurrency as a widespread and official payment method. For example, currently, the most widespread payment system is Visa. The main advantage is the speed and low cost of transfers. Bitcoin, on the other hand, is lagging behind traditional payment systems when it comes to these features. This could be changed using Lightning Network technology, which is in the process of development and should significantly shorten the time for BTC payments.

Img Source: bitcoinist.com

The price of BTC next year can be significantly affected by Bitcoin block halving. Miners are known to receive a reward for their work. They receive 50 BTC for each mined block. However, the reward is reduced in half to every 210,000 blocks. This means that the next halving will occur during May 2020 and that then the value of one block will be 6.25 BTC. This simply means that demand will at some point be higher than supply and that BTC value will increase.

All of these things can significantly make 2020 perhaps the most important year for all cryptocurrency traders, especially those trading in Bitcoin. Although the current price is below $9500 at the time of writing, this doesn’t mean that the price will fall even lower, but rather that this is a good time to buy extra BTC. This investment may pay off in the coming months because according to expert analysis, Bitcoin is expected to reach perhaps the highest value ever recorded in 2020. Therefore, think carefully and make smart moves.

Avoid a crypto trading debacle – Mistakes to stay away from

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When you say, ‘Cryptocurrencies are volatile’, it is nothing but an understatement as this is the least that you can ever say about them. As compared against forex and stock markets, the cryptocurrency market seems to be moving too fast. There are times when there are noteworthy variations within the course of a single day! Hence, it can be clearly understood that with cryptocurrencies, it is possible to gain a big amount over a short span of time.

Now you must have heard that 90% of cryptocurrency traders suffer losses while just 10% win. But have you thought what the 90% of the traders do wrong that makes them incur losses and what the 10% do in order to emerge as winners?

We’ll cover all those mistakes in this in-depth article, but before that make sure you take a denser look at the top broker’s for trading bitcoin as professionally listed in Trustedbrokerz.com, and learn more what exactly each trained powerhouse can offer you and what active traders have to share about their trading experience.

Img source: elevenews.com

Avoid blindly following other’s advice

Always remember that whenever there is someone who posts blockchain investment tips, they don’t do it for the noble cause of putting money into your pockets. They could be talking about their own trysts with investment or they could be trying to convince you to buy an asset that they already own thereby making the asset higher in value. Hence, it is necessary that you don’t always listen to the advice of others.

Dumping all your eggs in a single basket is a blunder

Even though you might be a seasoned investor in traditional assets, you can’t let go of the idea that you shouldn’t dump all your eggs in a single basket. Regardless of how much you prefer a specific coin, there are high chances that it won’t play in a way you wish as there are no guaranteed attached with any coin. This is when you begin to see only the profit potential and forget about the risk of the coin. Hence, you should split the risk capital into at least 10 parts so that you don’t have to bet more than 10-20% on one coin.

Img source: hackernoon.com

Don’t average down

Yet another common mistake committed by the traders is averaging down which is purchasing more of the same coin during a price drop. They do so with the age-old logic that buying a good thing when it is cheap is a big profit. What they fail to realize is that you can’t apply such household logic to trading cryptocurrencies. Whenever you purchase a bitcoin, you do so because you are sure that it will rise up in value based on some theory. Hence, when the price goes down, this means that your analysis went wrong and it is the market’s own way of giving you the proof. So, the lower the price of a currency falls, the ‘wronger’ you are with your trade approach.

Do you find the above-mentioned blunders too complicated? If you don’t wish to be subject to a trading debacle, make sure you steer clear of the mistakes that can pull you down as a trader.