Cryptotips Andrew Strogoff

Crypto Trading Tips and Tricks: 10 Secrets to Make Your Trading Successful

💡 Cryptotips
Most beginners think that there is some edge of learning that one can reach. The truth is that studying is eternal
Crypto Trading Tips and Tricks: 10 Secrets to Make Your Trading Successful

The development of Blockchain technology, as well as the appearance of cryptocurrencies, increase the interest of traders and investors towards the opportunities to earn money. However, there is no a single easy way to gain profits.

Professional traders and investors always give obvious recommendations to novices. They sound like buying lows, selling highs and other common advice that you can hear or read somewhere. However, those recommendations are general and have almost no practical benefits.

We have gathered several useful aspects that may be helpful in your everyday trading routine. Those cryptocurrency trading tips and tricks are very important for traders and investors who want to start their career.

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Tip 1: Do not invest all your money in a single asset

Many beginners reading charts and seeing assets to jump upwards try to buy them using all their funds. This strategy seems to be reasonable as the more you invest, the more you will get as a reward after the price growths.

However, professional traders recommend sharing funds among exchange and “cold” wallet. This approach helps to decrease all types of risks including hacker attacks and dishonest exchange managers’ behavior.

In addition, when you invest your funds partially, you minimize your trading risks as well. If a crypto goes upwards and you buy it, you will be able to gain more as we have already mentioned. However, if you are wrong in forecasting price’s fluctuations, the asset will go down and you will lose money.

Another reason to have a reserve is diversification. When you invest all your funds in one single coin, you find yourself prevented from the opportunity to buy other cryptos that may also be promising.

Try to distribute your funds wisely. It is better to use up to three or five percent of the total amount to buy a single crypto when speculating. For investors those figures may be higher.

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Tip 2: Use funds that you can afford

Beginner traders who have just entered this industry and watch those charts with upside moves sometimes make crucial mistakes. They think that they may become rich in just a couple of days. Having not enough money for trading, they start to look for additional investments everywhere including banks.

This way is wrong leading to complete bankruptcy. If you lose money, borrowed from bank, you will have to work hard in order to repay the loan including the rates. The safer way is to reinvest your profits partially or to use your savings for trading.

Why is it strongly recommended to invest only the amount you can afford? There is a psychological reason for that. When you use your own money that you can lose, you will not be vulnerable to different types of emotions that can ruin your deposit. Fears of losing all money that you have borrowed from the bank or friends will affect negatively your trading results.

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Tip 3: Be ready to lose your investments

This sounds weird as you came here to win and not to lose. However, all professional traders are ready to lose their investments as they understand financial markets’ nature. When you place a trade, you have no guarantee that this order will be a profitable one. Moreover, even if you use a very strong strategy, you can lose.

Your main task as a trader to have stable growth of your trading account in long and even midterm. However, you have to be prepared to lose a battle sometimes in order to win the war. This is one of the reasons why we have recommended using a small part of your funds in a single trade.

In contrast to Forex or stock markets, crypto industry have much more risks for traders and investors including scam exchanges, hacker attacks, delisting of tokens and the others. Cryptocurrency market is volatile and coins have no underlying value meaning they may cost either $100,000 or $0 depending on demand and supply. Nobody can predict today the price of Bitcoin for several years.

Fundamental factors also matter. Depending on general situation with crypto industry and the attitude towards coins in this or that country, their price may vary significantly.

Tip 4: Diversify your investments

When “keeping all eggs in one basket” you risk to lose all your money one day. Let’s say the price of X coin is $1,000. You decide to buy 10 units investing $10,000. However, one month later, X coin’s price falls down to $500, meaning you lose half of your funds as 10 coins cost $5,000 already. Where is your mistake here?

There were also Y and Z coins that you had an opportunity to invest into sharing your funds among them. Let’s say those two cryptos have added $500 each for the same period. Following this example, you had a chance to not only protect your risks but even to make some profit.

Diversification in crypto industry means not only buying different coins. As you may know already, there are scam exchanges, hacker attacks etc. When you invest all your money into a single trading place, your risks are higher. If hackers steal money, you risk to lose even without doing a single step there.

Some crypto enthusiasts store their funds using one type of wallet (cold or hot). The first offers more security but is less flexible than the second. Those who want to find a reliable solution, store their cryptocurrency on both types of wallets benefiting from their advantages.

Let us show you a simple example. You have one Bitcoin and want to store it somewhere, but you need 10 percent from this amount to be instantly available to conduct transactions. One possible solution in this case is to store 10 percent of your total amount using a so-called hot wallet and the other 90 percent on your cold wallet offline.

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Tip 5: Analyze coins using special techniques

Professional traders often recommend buying lows and selling tops. It sounds to be easy, but when you start trading, you always have difficulties to find market bottoms and tops. There several ways to do it using technical analysis for example.

Why is it necessary to do this way? When you go shopping, you try to find the best prices looking for discount programs, bonus campaigns and other ways to minimize your expenses. When dealing with crypto trading, you have no need to compare prices in different places as the cost is on the chart already. All you need is to understand whether this price is suitable for you or not.

Let’s say a trader has bought Bitcoin for almost $20,000 in December 2017. The current price of this crypto is around $7,000-$8,000. It is evident that he has made a mistake purchasing Bitcoin at its tops. Why do many beginner traders do those mistakes? The main reason for this is lack of knowledge and some typical emotions that make them buying when the price grows.

Ask yourself, what you will do when the price goes upwards. Most newcomers will say that they will buy the crypto in this case. The mistake here is that they skip analysis procedure, which is an important step before doing anything when trading.

Tip 6: Do not follow the crowd

Most beginner traders use trollbox or other trader recommendations to buy or sell cryptos. What is the trollbox? This is a chat that you can find on most exchanges. Traders share their opinions there. However, successful traders never follow the crowd as they have their own strategy.

There are several so-called indicators that demonstrate market players’ moods. Those tools are useless as they give no market picture at all and even mislead those who look through them.

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Tip 7: Choose liquid cryptos

Most professional investors advise to use a great portion of funds to buy Bitcoin. This seems to be obvious as Bitcoin is the first Blockchain coin ever. However, this reason is not the only one. BTC is the most liquid crypto as its capitalization is $131,544 068 350 according to coinmarketcap in the moment of writing.

Why should you choose the most liquid assets to buy? The first reason is that they are less volatile and more stable as compared to other coins naturally. If we compare EUR/USD and BTC/USD for example, the first is more liquid and is less volatile as well.

However, Bitcoin is the most liquid crypto coin nowadays and this is the main reason why professional traders use it to speculate on.

The second reason to buy the most liquid coins is that there are risks of scams. When you purchase Bitcoin you are sure that you will be able to sell it to somebody later. However, when you buy X coin, which is not as liquid and as popular as Bitcoin is, your risks are higher as everything depends in this case on the project, its team, goals, roadmap, background etc.

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Tip 8: Use different timeframes

When you trade this or that coin, it is better to choose more than one timeframe to analyze it. Those who stick to one chart risk to limit their opportunities. Even if you work with Hourly time frame, you need to use daily (or even a weekly one) for example to see the whole picture of the market

Why is it necessary to do this way? The main reason is that you will be able to have the general view of the market helping you to understand midterm and long-term tendencies. If you see that BTC/USD’s price goes upwards on Daily chart, you can say that this asset has a general uptrend in midterm.

This will help you to find better trading opportunities on the hourly chart. When there is an upside tendency, you can either work along the trend or trade against it. However, in the second case you need to be careful as corrections to the general trend are always limited in time and number of pips.

Higher time frames also help to find stronger support and resistance areas meaning you can further use them on your working chart.

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Tip 9: Buy rumors, sell facts

This is a typical recommendation coming from stock and Forex markets. There is a probability of a strong and significant price wave when rumors appear. Those who buy on rumors have greater risks as there are still no facts to prove them. However, they also have better profit opportunities as trends are in their initial phases in moments when such rumors appear.

You need to understand that this recommendation is conditional as rumors may either be positive or negative meaning the price will probably grow or fall depending on the type of rumor. If they are negative, one of the decision is to sell an asset or a part of it as not all those rumors may have an impact on price fluctuations.

Why is it necessary to use rumors in your trading routine? They may have a significant impact on price fluctuations which are stronger than the impact of news following those rumors. How does this work?

Let’s say you have heard that the car’s price will rise in one month. This information is not confirmed yet, but you want to buy a car already especially when you had this intention before. The other has the same wish as the will have to pay more after car’s price inflates. This will lead to the price growth as demand will rise as compared to supply.

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Now let’s see another example. You have bought a car long ago and want to sell it. You have heard somebody saying that vehicles’ price is likely to go down in a couple of months meaning you need to hurry up in order to get rid of your car for a better price.

The same is for crypto industry and any other market. When you read rumors related to positive changes for the crypto world, you buy coins as those changes may affect cryptocurrencies price in future. In case if rumors are negative, you sell it as future events are likely to push the price down.

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Tip 10: Never stop learning

Most beginner traders think that there is some edge of learning that one can reach. The truth is that studying is an eternal process in trading (as in every other profession as well).

Once you create your trading strategy or take a ready one, you can start trading already. However, it doesn’t mean that you can relax in that moment and the profit will jump into your pocket with no difficulties.

Markets are changing all the time. You need to monitor those changes and to include them into your strategy. It is better to learn more methods, be aware of what’s happening in the crypto industry and always be on guards.

Those are not all the tips and tricks for crypto trading, but those are the main. You can use and follow them in order to improve your trading results.

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How Blockchain and dApps Can Achieve True Decentralization and Massive Adoption

Public Blockchain networks need decentralized governance systems and interconnected network of dApps to reach adoption
How Blockchain and dApps Can Achieve True Decentralization and Massive Adoption

Public Blockchain networks and decentralized applications (dApps) launched on top of the Blockchain are often described as completely peer-to-peer systems that rely on a distributed network of users and developers to remain functional.

But, the emergence of high-performance Blockchain networks and dApps have led users and investors to raise the question, to what extent are Blockchain networks decentralized and how do dApps reach true decentralization through adoption?

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Gnosis founder on how Ethereum can reach mainstream adoption

Major public Blockchain networks like Bitcoin and Ethereum are capable of operating without the existence of central authorities and intermediaries. As such, on the Bitcoin and Ethereum protocols, users can freely send and receive data without restrictions.

Since its launch in 2015, Ethereum has been designed to function as the base protocol for dApps, supporting the facilitation of large amounts of data on the Blockchain. As of August, Ethereum is processing around one million transactions per day while Bitcoin is processing merely 20 percent of the volume of Ethereum.

Throughout the past 24 months, the Ethereum ecosystem experienced an abrupt increase in the number of dApps and Blockchain projects, primarily due to the exponential growth of the initial coin offering (ICO) market.

Consequently, thousands of Blockchain projects have launched on the smart contract protocol with sufficient capital to finance their operations for over a decade without depending on their Ether reserves.

While the vast majority of projects and dApps have failed, some including Augur, Gnosis, 0x, Aragon and Maker have created base protocols and platforms which other dApps can utilize to offer unique services.

For instance, 0x offers a decentralized digital asset exchange protocol which enables dApps to launch on top of it to process peer-to-peer cryptocurrency trades. Most decentralized exchanges including Paradex, the digital asset relay acquired by Coinbase, have launched on the 0x protocol.

Martin Köppelmann, the creator of decentralized marketplace Gnosis, said that blockchain technology and dApps can only reach mainstream adoption if the interconnectedness and network effect of dApps can significantly improve. To put it simply, Köppelmann emphasized that blockchains and dApps can only prosper if they rely on and support each other to improve the ecosystem.

“The numbers we care about is the usage of decentralized applications. And as a next step, the number to look out for is dApps that seamlessly interact with each other and draw a benefit from being on the same platform. As a side effect, ultimately the price of ETH will then be a function of the demand for the use of applications in this reliable, open, and interlinked environment,” he said.

In a separate statement, Köppelmann added that the success of public Blockchain networks should be measured by the ability of dApps to use the services and products of other dApps on the Blockchain, ultimately creating an interconnected network of decentralized systems.

“The best metric of success for Ethereum is not how many dApps are deployed or how many transactions those dApps have. It is about how many dApps are created and used that use smart contracts from other dApps,” Köppelmann explained.

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Governance and merit of a decentralized community

The second element that is necessary for the Blockchain to reach complete decentralization and Blockchain adoption alongside dApp network effect is open-source development. On a public Blockchain network, any user or developer should be able to contribute to the codebase of the Blockchain and have a say in its development roadmap.

On proof-of-work (PoW) consensus algorithm-based blockchains like Bitcoin and Ethereum, users, developers, and miners can reach consensus through soft and hard forks, to integrate changes or improvements in the Blockchain.

Segregated Witness (SegWit), a scaling solution integrated into the Bitcoin network last year, is an example of a soft fork implementation that needs majority consensus from users and node operators to officially integrate into the Blockchain.

Soft forks and hard forks allow the community to weigh in on the decision making of integrating certain solutions, creating a decentralized environment in which every individual on a Blockchain network has the incentive and motivation to contribute.

Last month, at TechCrunch Sessions held in Zug, Switzerland, Ethereum co-creator Vitalik Buterin noted that one way to prove the decentralized aspect of Ethereum governance is that if Buterin himself or any other core contributor were to be kidnapped and forced to write code, the community will have to first approve of the changes before they are integrated to the Blockchain.

Hence, it is not possible at the current stage, that a central authority takes over a public blockchain network and manipulate its codebase.

Buterin said:

“The thing with developers is that we are fairly fungible people. One developer goes down and someone else can keep on developing. If someone puts a gun to my head and tells me to write a hard fork patch, I’ll definitely write the hard fork patch. I’ll write the GitHub issue, I’ll write up the code, I’ll publish it, and I’ll do everything they say. If I do this and publish a hard fork patch to delete a bunch of accounts, how many people will be willing to download the update, install it and switch to that update? This is called decentralization.”

For high-performance Blockchains, those that claim to process a million transactions per second, it may be difficult to have a completely decentralized governance system in place to lead long-term development. If this is the case, the long-term adoption and growth of the Blockchain could be sacrificed for short-term gains in scalability.

Already, with Ethereum for instance, an open-source developer community is working on the development and implementation of Sharding and Plasma, two scaling solutions that are expected to increase the capacity of the Ethereum network to potentially one million transactions per second in the years to come.

0x protocol has integrated an onchain and offchain data processing solution of its own to reduce the burden on the Ethereum mainchain and Zilliqa, a high-performance Blockchain launched on top of Ethereum, has focused its development on Sharding. Status, a popular mobile client for Ethereum, has also introduced the first widely utilized Sharding client, allowing both dApps and users to benefit from efficient scaling.

Other projects aim for mass appeal— for example, ONO, which is building a social network as a dApp on EOS. And some projects even take it a step further and make the social network an integral component to their blockchain as in the case with U.Community and UOS with the idea of U.Community being the social interface to the UOS Blockchain, making the blockchain governance frictionless and accessible to every user.

The benefit of having a truly decentralized governance system in place is that it allows for the creation of a community that supports each other to produce dApps, scaling solutions, and other unique products that will be crucial for mainstream adoption in the long run.

With Blockchain networks that are restricted by some central parties and moderators, it is difficult for an open-source developer community to exist and contribute actively to the codebase.

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How to Buy Bitcoin with Prepaid Cards: Beginner’s Guide

📚 Wikicoin
U.Today has reviewed the best ways to buy Bitcoins with your stack of prepaid cards
How to Buy Bitcoin with Prepaid Cards: Beginner’s Guide

The major difference between an ordinary debit card and a prepaid card is that the former is not pegged to a checking account in a bank. The funds are loaded on such cards in advance so that you can spend them. Case in point: reloadable MyVanilla prepaid cards that can be easily bought in your local Walmart store. The card’s current balance can be checked on the official website of its issuer.          
In most cases, prepaid cards are used as gifts — it is a very convenient way of sending money to a specific person if cash is not an appropriate option. Subsequently, it gives much more flexibility to a person who receives the gift since VISA prepaid cards are accepted all over the globe. One can buy clothes, electronic devices or...Bitcoin, the world’s biggest cryptocurrency.  

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Can you buy Bitcoin with gift cards on Coinbase?

Of course, Coinbase is the most obvious choice. The $8 bln startup, which is spearheaded by Brian Armstrong, is among the world’s most famous exchanges. Even with the recent listing spree, Coinbase still has a very meager choice of assets, but Bitcoin is on the list. However, prepaid cards are not accepted there despite some websites claiming otherwise.   
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US customers are able to make instantaneous purchases with their debit/credit cards, but Coinbase requires everyone to complete ID verification before adding a card. It is safe to say that the Armstrong-led exchange will never accept prepaid cards due to security concerns.

In July, however, the exchange launched its own Coinbase VISA gift card for European customers. These Coinbase prepaid VISA cards are accepted to propel the merchant adoption of cryptocurrencies. As of now, there is a huge gap between people investing in Bitcoin and people buying their Starbucks coffee with it. To tackle this issue, Crypto.com has already introduced the first crypto debit card.  

How to use Paxful?

After obtaining your prepaid card, you have to look for an exchange that actually accepts it. It is worth mentioning that buying Bitcoin with a prepaid VISA card is not an easy feat since exchanges are afraid of opening a Pandora’s box of financial manipulations. However, we’ve still managed to find some ways of purchasing crypto with practically any prepaid card.

First, we are going to cover a fairly popular website called Paxful. The website allows you to buy and sell Bitcoin while using a myriad of payment options (up to 300). Paxful accepts gift cards issued by VISA/Mastercard (the aforementioned MyVanilla prepaid cards), Walmart, Amazon, and so on.
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For more options, you can click the “Buy Bitcoin” button in order to open a new page with a search bar where you can manually find any payment method after choosing the suitable currency.
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This is the long list of all open offers that are sorted accordingly to the exchange rate. The seamless process of purchasing Bitcoin with gift cards comes with draconian fees. For example, if you want to buy Bitcoin with an iTunes gift card, you would have to pay a hefty commission that may go as high as 60 percent — for every dollar you spend, you get only $0.40 worth of Bitcoin. Usually, sellers offer the highest exchange rates (you lose less than 10 percent) if you meet them in person. In order to buy BTC with a prepaid card, simply click the green button on the right.
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Paxful also allows you selling Bitcoins. Simply choose the “Sell Bitcoin” option and decide what kind of payment method you would like to accept (whether these would be gift cards, cash deposits or online transfers).  

Paxful Pros and Cons  

Pros  

Cons

A beginner-friendly exchange

Different exchange rates

An enormous number of payment methods  

A lot of scammers

Buyers are not charged with any fees

A one-percent fee for sellers

Remember about safety


How safe is it? Paxful claims that their sellers’ Bitcoins are held in a secure escrow until the transaction is completed, which eliminates the possibility of a fraud. The peer-to-peer exchange creates a temporary Bitcoin wallet in your personal account. In order to enhance their security, users are recommended to enable 2FA.

Paxful and LocalBitcoins are both well-known peer-to-peer exchanges with a huge user base, but they cannot ensure that every seller is reliable. Hence, we recommend you to pay attention to the following rules:

  1. The system features feedback rating of a certain seller (any negative comments would obviously be concerning).
  2. We recommend you to make sure that you take a screenshot of every transaction.
  3. Also, protect your personal data — any private information shouldn’t be disclosed. You don’t want to lose your money, right?


Things may get even way worse than wasting your $20 gift card — as U.Today reported earlier, a man from Norway was brutally murdered during a LocalBitcoins meet-up. This is why it is important to have at least a quick live chat before having a direct contact with this person.      

Transaction cancellation is another point that has to be covered in order to prevent financial losses. Do not reveal any gift card details to the seller if you are not 100 percent sure whether the transaction has to take place. While it’s possible to call off the purchase, the seller will certainly be tempted to get access to your gift card.    
    

Alternatives to Paxful


Paxful isn’t the only option on the table if you want to buy Bitcoin with a gift card. You are also able to do this on LocalBitcoins.
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LocalBitcoins is the most well-known peer-to-peer exchange whose modus operandi is very similar to that of Paxful. The popularity of this exchange is skyrocketing in Russia as well as in some Latin American countries. With that being said, popularity is not necessarily a good thing because it brings more sketchy frauds, so follow all the above-mentioned safety measures.

Cointal is yet another peer-to-peer exchange for those who have no idea what to do with their gift cards, but it has a very questionable reputation with some users accusing it of being a fraud.

The bottom line

There are only two reputed exchanges that allow purchasing Bitcoin with a prepaid card. Despite the draconian exchange rates, it’s an excellent way to get rid of your stack of old cards.

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Coinbase and Bitfinex Announce that Segwit Has Been Implemented

Coinbase and Bitfinex have announced that Segwit has been implemented.
Coinbase and Bitfinex Announce that Segwit Has Been Implemented

Earlier this morning, 13 mln user platform Coinbase, and Bitfinex, the fourth largest cryptocurrency exchange in terms of market cap according to CoinMarketcap.com, announced that Segwit has been implemented on their platforms. Segwit was an upgrade in the Bitcoin software that allows transaction signatures to be separated from transaction data so that the Bitcoin network can fit more transactions into a block. The Segwit upgrade also fixed the malleability bug and set the stage for further scaling to take place on the Bitcoin network in the future.

Today, both San Francisco based Coinbase, and Hong Kong based exchange Bitfinex announced that they now support Segwit Bitcoin addresses. Bitfinex says that the implementation of Segwit on their exchange will allow transactions fees to be lowered by 15 percent and will lead to improved processing times. Bitfinex CTO, Paolo Ardoino said:

As a premier exchange, Bitfinex is committed to improving its market-leading offering for our loyal and discerning customers. SegWit provides not only an immediate benefit for users, but also a foundation for future Bitcoin development. By supporting SegWit addresses, Bitfinex is tackling three of the biggest crypto-enthusiast concerns: transaction fees, transaction speed, and total network capacity. We are delighted that through this implementation we can provide our customers with bitcoin withdrawal fees that are up to 20 percent lower, as well as faster-than-ever transaction speeds.

Coinbase announced their plans to implement Segwit in the first half of 2018 back in December of last year. The company took to twitter this morning to announce where they stand in terms of Segwit implementation. Coinbase is currently one of the largest cryptocurrency platforms in terms of user base; on Nov. 29, Coinbase announced that they had 13 mln users. Being one of the largest platforms in terms of users means that we can expect a significant increase in efficiency on the Bitcoin network; now that more transaction signatures are being separated from transactions, more space is being freed up in a block so more transactions can be processed per block.

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Governance Will Be Essential to Success of Cryptocurrencies

Governance has already shown its importance with both Bitcoin and Ethereum, and it could become even more vital in the future.
Governance Will Be Essential to Success of Cryptocurrencies

Governance is one of the most critical aspects of a cryptocurrency, because it sets the stage for how problems will be managed and how consensus will be developed. Digital currencies, like all software projects, are constantly evolving and responding to changes within their environment. Most software updates are uncontroversial, and the entire community simply follows along. The real test of a project’s governance, however, is how the community handles controversy or crisis.

Bitcoin: scalability

Bitcoin is probably the classic example due to its infamous scalability controversy. As early as 2013 it became obvious that changes were going to have to be made to the Bitcoin software in order to enable the network to process more transactions. Many suggested increasing the block size from 1 MB to 2 MB or even 8 MB. Others thought this wasn’t a viable solution due to centralization issues, and because it didn’t permanently solve the problem.

Unfortunately, as debate raged in the community, there was no formal method for deciding which scaling proposal to accept. Ultimately the choice came down to bigger blocks or the implementation of SegWit and Lightning Network. Many businesses and the vast majority of miners supported a compromise proposal called SegWit2x, which would combine aspects of both solution. SegWit2x would bring bigger blocks and would implement SegWit.

The community ended up accepting SegWit but rejected the increased block size, causing the network to fork between Bitcoin and Bitcoin Cash. While this fork wasn’t devastating, it undoubtedly has created confusion for new crypto users and was not ideal.

Ethereum: TheDAO

Likewise, in 2016, Ethereum faced a massive crisis of its own when a massive entity called “TheDAO” was hacked and millions of Ether were stolen. Because of the staggering size of the hack, many called for a hard fork to be executed which would effectively roll back the hack. However, this solution was controversial because Blockchains are intended to be immutable, and a rollback was thought to be a dangerous precedent.

In the end, Ethereum’s developers created code that would implement the rollback and submitted it to the community. If enough miners decided to run the new code, the rollback would occur. If not, it wouldn’t. Miners voted with their hashpower, and an overwhelming number of them supported the new code, thus rolling back the hack and ending the crisis.

As with Bitcoin, Ethereum ended up splitting as well, with the Ethereum Classic Blockchain being born. Ethereum Classic shared all the same features as Ethereum and the same Blockchain, up until the point of the rollback. Supporters claimed this was the “real” Ethereum since it had the network’s entire, uncensored transaction history.

Some progress

Some digital currencies have created formal governance systems, such as Dash. Owners of 1,000 Dash can set up a so-called masternode, and vote on proposals to make changes to the network. One such vote was put to the network in early 2016, resulting in approval to increase the blocksize. The vast majority — over 99 percent — of masternode owners approved the change within 24 hours. However, only large holders of Dash are allowed to vote, and the currency has faced low voter participation on many community-sponsored proposals.

Nobody has completely solved the problem of governance, but progress is being made. The future undoubtedly holds many challenges for digital currency, and one day, time could be of the essence. Emergency changes might need to be made — for instance, if somebody builds a quantum computer – and cryptocurrency projects must be able to pivot extremely quickly at such times.

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Bitcoin Price Breaks Through $10,000 As Cryptocurrency Market Continues Growth

Pricewise
Bulls are celebrating a successful conclusion to the week as Bitcoin price reaches $10,000. However, further growth is not certain.
Bitcoin Price Breaks Through $10,000 As Cryptocurrency Market Continues Growth

Despite reduced business activity in China due to the celebration of the New Year, the situation in the cryptocurrency market continues to please investors — we are observing growth for most positions, and Bitcoin has cleared the psychologically significant $10,000 mark without difficulty. As a result, the total market capitalization continues to increase at a steady pace and has reached $485 mln by the end of Thursday.

Interestingly, Bitcoin dominance is also growing. Right now it’s 35.8 percent, which is almost equivalent to the value seen on Feb. 6.

Then, as a result of the market collapse, prices of altcoins fell through the bottom and investors preferred to sit out the crisis with the main asset. Now we are seeing the opposite situation and it’s obvious that Bitcoin's share is increasing due to expectations of further (and, more importantly, faster) growth.

The balance of powers in the top 10 has not changed. BCH is leading with an increase of 10 percent in the course of the day to $1,500, followed by BTC with growth of 8 percent and a closing price of $10,200. The leading trio is rounded out by IOTA with the following results: a 6 percent increase and a price of $2.15.

Litecoin doesn’t have anything to boast of, being down 5 percent from a maximum of $230. But who can complain about a small correction after the sprint that LTC ran in the past two days? In general, we are evaluating the situation as positive, but we may soon arrive at a point where the market will need to cool down before continuing growth.

BTC/USD

The targets indicated in yesterday's review were realized with high accuracy. Prices met some resistance on approaching $10,000, but having mustered up all their courage, buyers were able to break through the level at good trading volumes. Bitcoin is trading in the upper register of the ascending channel, which, on one hand, shows the strength of the bulls, on the other — the possibility of correction, necessary for the continuation of growth.

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We expect that the next strong resistance zone is at the $10,400 - $10,500 level, very close to the current values. As we know, there can be no new highs without fallbacks, so a price reduction to the level of $9,300 - $9,500 seems appropriate. In case of further growth, the price is certain to halt at the $11,600 mark.

BCH/USD

Bitcoin Cash finally broke through the global descending channel, which began on Dec. 20, 2017, and now, from the point of view of technical analysis, there is little to hold it back. However, we can’t discount the unending disputes about which Bitcoin is the true Bitcoin. This discussion does not let investors forget about the asset, however at the same time it’s raising doubts and uncertainty that the market does not like. In any case, by end of week, BCH arrived at an important mark of $1,500.

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If the price can be established above this value, then the next growth targets will be $1,570, $1,670 and $1,770. The first and last targets are formed by mirror levels of support-resistance, and the middle value is indicated by a strong 1.618 Fibonacci extension. In case of a negative scenario, Bitcoin Cash has nowhere to fall — a strong support, coinciding with the lower boundary of the ascending channel, will be found around $1,400.

LTC/USD

Our recommendation that readers consider booking profits at the price of $215, which became an important support-resistance for Litecoin, turned out to be a sound one. It seems that everyone who wanted to buy the coin before the upcoming fork has already done it. Although, we do not exclude the possibility of another spike in buyer activity, which could raise the price to $250.

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However, a more likely scenario is that of price fluctuation around $215 with subsequent correction after the completion of the fork. According to optimistic estimates, LTC could fall to the $200 level, which coincides with the 0.382 Fibonacci retracement. In the event of more active sales, we will see $185, where our readers can consider building up long positions for the medium term.

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