Cryptotips Andrew Strogoff

Risk Management, Trading Psychology As Key Factors For Crypto Trading Success

Cryptotips
Money, risk management and trading psychology: factors helping traders to become successful
Risk Management, Trading Psychology As Key Factors For Crypto Trading Success

When you hear somewhere that your trading success depends on a good strategy or luck, it is not true. The key factors of long-term profit in cryptocurrency trading are money and risk management as well as trading psychology.

Most newcomers try to avoid those subjects first thinking that will learn some strategies and use them carefully in order to reach their goals. However, they start to lose money and the more they waste, the closer is the moment they open such articles as this one looking for answers to their numerous questions.

We have gathered here the most important key aspect that help professional traders to succeed. First, we are going to cover money and risk management and give you several recommendations on how to use them in practice.

💼 Related Article
Generational Crypto-Investment Gap: Why Warren Buffett Just Doesn’t Get It
🔥 Hot
8 months 3 weeks
256
Generational Crypto-Investment Gap: Why Warren Buffett Just Doesn’t Get It

Money and risk management

The importance of those aspect is hard to overestimate as they play an important role in trading in general. There is no a single professional trader who skip money and risk management in his or her daily trading routine. Let’s see some useful advice:

Do not overheat your trading account

This is one of the main rules of money and risk management. There are several ways to overheat your trading account including overtrading, breaking money management rules and the others. What does it mean “to overtrade”?

Most beginner traders and investors think that the more orders they place, the more money they will earn. This sounds obvious, but in practice, the more you trade, the more risks you take as you have less money in reserve.

What is an average number of trades per day? There is no answer to this question as everything is individual and depends on many factors including the number of trading opportunities, initial funds, trader’s mental and physical state and the others.

💼 Related Article
Bitcoin Price Volatility Explained
🔥 Hot
8 months 2 weeks
256
Bitcoin Price Volatility Explained

Many beginners think that they always have to “stay in market” in order to take advantage of every crack. However, this is the best way to overheat your account by overtrading. There is no need to place a trade just in order to be in market all the time.

The best crypto strategy for every trader is to find entry points before placing orders and use them in order to gain profit and not vice versa.

Determine your risk levels

When you trade cryptocurrencies, you need to determine your risk levels for every single order meaning you will close your positions manually or automatically once this point is reached. How does this work in practice?

Let’s say, you have $10,000 on your trading account and determine risk at five percent level. You buy a certain number of cryptocurrency for $1,000 but your forecast was wrong and the price went downwards. Your risk level is $50 meaning you can not lose more than this amount in a single trade.

Why is it necessary to determine risks per every position? This is useful not only for your money and risk management strategy but also for your mental state as you are prepared to lose this amount already. However, when you fail to close your position at this level, your losses will grow leading to all your negative emotions to take control over you.

Use stops, limit orders carefully

Most novice traders when they first start their cryptocurrency trading try to use all types of orders thinking that they can improve their results by placing market or limit positions. This approach is right and helpful but only when they understand what they are doing and what targets do they have.

💼 Related Article
How to Trade Cryptocurrencies
🔥 Hot
8 months 2 weeks
256
How to Trade Cryptocurrencies

Limit orders are useful only when you have conducted your analysis and found out that the price of the asset will reach a certain level before going into the forecasted direction. Otherwise it makes no sense to wait. Sometimes it is better to use simple market orders when you suppose that the price will start to grow from current level or somewhere close to it.

As for stops, they are also helpful as they are part of risk management strategy. However, before placing such an order, you need to calculate your potential risks carefully. You can also use trailing stops in order to automate your risk management strategy.

Calculate your risk/reward ratio

This is an important rule for both traders and investors. Risk/reward ratio should be at least 1:2. If less, you won’t be able to increase your funds in the long term using simple trading strategies with 50/50 profit/loss ratio.

💼 Related Article
What is DAICO? Incorporating Features of DAO and ICO
🔥 Hot
8 months 2 weeks
256
What is DAICO? Incorporating Features of DAO and ICO

What does it mean to calculate risk and reward? Let’s see an example. A trader wants to buy one Bitcoin for $7,000. He is ready to lose $300 in this position (which is equal to 1 risk unit). When using such risk amount, he is to plan $600 profit in order to follow his 1:2 risk/reward ratio strategy.

Those are the main recommendation related to risk and money management. Now it is time to get down to trading psychology.

Trader’s emotions that can ruin any trading system

Professional traders know that emotions in investing are the worst enemies capable of ruining their funds quickly. This is why they always need to control them and to be self-disciplined in order to become successful.

Kill your greed before it kills your money

Trading seems to be like gambling for novice traders. They think that their routine consists of placing orders and winning money. However, there is a big difference between trader and gambler as first is guided by his trading system and the second by greed.

What is greed and why should investors control it? This is a small animal, sleeping inside of most of us. However, once we sit down to play cards, roulette or trading, this animal awakes asking for food. It tells you to increase your per trade amount, forget about your system, do not close your positions at stop loss levels etc.

Greed is a good quality for casino holders only as they make money on gamblers. The more player bids, the more he will potentially lose. However, for traders greed is something that may kill all their efforts.

💼 Related Article
What are Stablecoins and What do They Mean for the Crypto Market?
🔥 Hot
8 months 2 weeks
256
What are Stablecoins and What do They Mean for the Crypto Market?

Let’s say you have earned $10,000 by trading for nearly half a year. It was not the easiest period as you had to be self-disciplined, to follow your strategy, to manage risks and money. This is your first positive result.

Greed isn’t sleeping now and it makes you make mistakes by increasing your per trade volume, holding trades to take more profits and many other things that are contrary to your trading system.

Control your fears

Another bad emotion that may affect your results negatively is fear. It shows up after one or several losing positions. In contrast to greed, fear is unable to ruin your fortune, but it prevents you from making money when trading.

Why should you control all your trading fears? First, they make it difficult for you to take reasonable decisions. Affected by fears, traders sometimes miss evident opportunities to open position. In other cases, fears paralyze investors meaning speculators are afraid to make any decision at all.

However, this is not the end of the list. Fears affect your trading even when the position is in play already. Influenced by this emotion, traders try to close their positions as quickly as possible, gaining less than they could make by holding trades for a longer period.

How to control emotions in trading

There are several ways to do it as well as several tools to use in order to smooth the influence of emotion to trading. The first thing that is to be mentioned is self-discipline. Most beginners will say that they are enough disciplined in their everyday life. However, those words are far from being true.

Self-disciplined traders follow their trading plan, trading system, 24/7, 365 days per year for their lifetime. Otherwise, they lose. Is it easy to be self-disciplined all the time? Naturally, it is not! Even professionals may step out their way and break their own rules. However, they do understand why they commit such a mistake and try to follow their strategies in future.

What are the main tools that help traders to control their mindset? They are the following:

  1. Trading plan. Here you can describe all your trading tools including indicators that you use or even your strategy. Trading plans may also include your notes on this or that trading situation.

  2. Money management system. You need to calculate it in advance in order to not wasting your time for this when trading.

  3. Risk management. Once described in your trading plan, this aspect should be applied for your every trade.

Stay patient when trading

Patience is one of the key factors for traders to succeed. You need to be patient not only when waiting for an opportunity to open positions, but also after your trade is already in the game. Why is this aspect necessary?

💼 Related Article
How to Prevent Attackers From Hacking Blockchain Nodes: Professor of Cryptography Opinion
🔥 Hot
8 months 2 weeks
256
How to Prevent Attackers From Hacking Blockchain Nodes: Professor of Cryptography Opinion

Let’s suppose you monitor BTC/USD looking for better price position in order to place an order. Most beginner traders hurry up to enter the market and do this even if there is no clear opportunity. Professionals are patient as they wait for the price to meet their trading strategy conditions before placing an order. What are those conditions? They may be the following:

  1. The price reached the resistance (or support) are and reversed. This is a signal that the price is able to move in the opposite direction in the nearest future. Beginner traders sometimes place orders when the price is close to those levels without knowing whether quotes will break out the area or reverse.

  2. Candlestick pattern (hammer, e.g.) appeared. Professional traders always wait until this bar closes as they need to know for sure that there is a hammer there. Newcomers sometimes open trades even if the bar is in progress. This is a big mistake as the situation may change by the end of the period of candlestick formation.

  3. RSI curve jumped into oversold or overbought area. This is not a signal as many beginners think. This is just an alert to prepare for trading. The signal appears when the curve leaves oversold or overbought areas.

💼 Related Article
Bitpanda European Exchange to List IOTA
🔥 Hot
8 months 3 weeks
256
Bitpanda European Exchange to List IOTA

Those are not all the conditions, but just a couple of them. Newcomers make mistakes after they have opened positions as well. The biggest one is that they are impatient to hold their trades in order to let them bring more profit.

Some recommendations

Trading psychology is one of the most important section of your training. Once you understand yourself and learn how to control your emotions, you may have better results. We are going to give a couple of recommendations.

Trading is a long voyage

The majority of newcomers dream about millions and even billions of dollars the next day. They think that one year of investing may change their life forever. However, this is not true. Trading is a long voyage, which lasts for a lifetime.

Instead of dreaming about cars, girls, cocktails on the seashore, villas trader is better to set targets to himself or herself to reach in one month, six months, one year etc.

Stay fit

What is the connection between fitness and trading? An investor who places his orders a couple of times per day needs to be fit. Mentally exhausted or tired traders have fewer chances to make money in this industry.

Try to work when you are “fresh” meaning you need a clear head in order to make better market decisions. Exhausted traders have less chances to succeed as they make more mistakes during all trading stages including analysis, entry point finding, stop loss calculations etc.

💼 Related Article
How to store Ripple (XRP): 5 Best Wallet to Store Ripple
🔥 Hot
8 months 3 weeks
256
How to store Ripple (XRP): 5 Best Wallet to Store Ripple

The fastest way to get crypto news is to follow our Twitter. You won’t miss a thing! Subscribe.
Cryptotips
306 views views
👓 Recommended articles
something-wide
something-wide
⭐ Features Andrew Strogoff

Bitstamp Review: Cryptocurrency Exchange For All Types Of Traders

⭐ Features
Bitstamp is a very tough player of the crypto exchange industry, offering many features to its clients
Bitstamp Review: Cryptocurrency Exchange For All Types Of Traders

trading platform

Hello, mates. I know that many of you are looking for a trading place where you can buy and sell both cryptos and fiat money. This review is related to Bitstamp cryptocurrency exchange. Here I will cover such points as registration procedure (including personal verification), trading features, conditions (including fees) and some other important aspects.

Before I start describing the main features of this trading platform, I would like to familiarize you with the company itself. Bitstamp is one of the oldest cryptocurrency marketplaces in the world. The company began its activity in 2011 in the UK. However, later they have opened other offices in Luxemburg and New York. Crypto exchange Bitstamp received its license in Luxemburg.

This marketplace is widely known within the cryptocurrency community and I would tell that this is true as you hardly can find a trader who heard nothing about it. Moreover, several famous and popular tabloids like Forbes, Coindesk, Reuters have mentioned Bitstamp in their articles. The company has established cooperation with Ripple, CACEIS and Swissquote.

This crypto exchange trading place offers English only. There are no other language options at all. However, it gathers traders from all over the world.

💼 Related Article
Bitcoin Price Volatility Explained
🔥 Hot
8 months 2 weeks
256
Bitcoin Price Volatility Explained

How to create an account with Bitstamp

Before you start trading with this exchange, you need to create your account. There are no difficulties to do it, as the form is very easy. You need to fill in your name, email address and accept terms of use and Bitstamp Privacy Policy.

 account with Bitstamp

Above you can find the form that I have already filled in. After pressing on “Register” you will proceed to the second step. You will be sent an email with a confirmation link in order to end account creation procedure.

💼 Related Article
How to Trade Cryptocurrencies
🔥 Hot
8 months 2 weeks
256
How to Trade Cryptocurrencies

Once you have created your account, you can proceed with its verification. Here I want to make a reservation. I think it is not a secret that there are trading platforms with no obligatory verification procedure, meaning without confirming your identity, you will be able to trade but with some limitations.

Bitstamp requires verification from all service users without any exception. Moreover, you will not be able to proceed to deposit and withdrawal step before you confirm your identity. This requirement is obligatory because the platform has a license.

Now I am going to stop on details of the verification procedure. After you have created your account, you can login and navigate to “Verify account.”

I can say that this procedure is a bit harder than creating an account as you have not only to provide your personal data, but also to provide exchange with your ID documents scans. What kind of personal information is required?

You need to provide Bitstamp with data, indicated in your ID. Additionally, you need to upload the following documents:

  1. ID photo.

  2. Proof of residence document photo (this can be your bank statement, utility bill or taxes certificate, for example).

💼 Related Article
What is Trading and Cryptocurrency Trading, Their Main Features
🔥 Hot
8 months 2 weeks
256
 What is Trading and Cryptocurrency Trading, Their Main Features

How to deposit and withdraw money

Bitstamp offers the opportunity for all its clients to deposit and withdraw in both fiat currencies and cryptos. You can use, for example, VISA or MasterCard as well as SEPA (European Bank). As for cryptocurrencies, you are allowed to deposit and withdraw with Bitcoin, Litecoin, Ripple, Ethereum and others.

How to place your first order with Bitstamp, order types, trading tools

When you have already created your account and verified it, deposited some amount, you can start trading. Here, I want to make a couple of points for you to pay attention to. Bitstamp offers a high-quality trading platform with several features including professional charts and some other important.

The first thing that I have noticed when I have entered the platform for the first time was the number of currency pairs, which is lower as compared to the most of competitors. The number of pairs is slightly above 10.

order typesNow let’s get down to the trading platform. This is a very important aspect for every trader as charts allow users not only to see the current price but also to analyze it using historical data. Bitstamp offers modern full functional chart with several trading tools.

Take a look at the screenshot. You can see there candlestick chart. In the upper part of the chart, you can choose indicators and different graphic tools. As for indicators, there are many useful algorithms including the most popular Bollinger Bands, ADX, ATR and the others. Graphic tools are represented by different types of lines and other geometric patterns. Here you can find Fibonacci retracement as well.

Before you open any trade you need to choose a trading pair. This option is also available in the upper side of the platform. The next step is to choose the order type. Here I want you to pay attention to the different types of trades that are available with Bitstamp: they are the following:

  1. Instant order. The easiest one that is recommended by the exchange to beginner traders. Here you buy or sell cryptocurrency at the current market price.

  2. Market order. Is it a kind of instant order, but you can buy or sell cryptocurrencies at best prices. This order is suitable for those who have some trading skills already and want to improve their entry points.

  3. Limit order allows traders and investors to choose the price at which they will buy or sell cryptos. This one is suitable for professionals and skilled market players. The main idea of this order is to set a price at a desirable level and wait for the crypto to reach it.

  4. Stop order. This kind of trade allows users to limit their losses in case if the price goes in the opposite direction.

Once you have chosen your pair and order type, you can input the amount you want to sell or to buy and start trading. As far as you can see, there is nothing difficult here.

💼 Related Article
Major Cryptocurrency Market Analysis Methods
🔥 Hot
8 months 2 weeks
256
Major Cryptocurrency Market Analysis Methods

Bitstamp fees

Almost all cryptocurrency exchanges take their fees not only for trading but also for deposit and withdrawal procedures. Trading fees at Bitstamp are diversified meaning the more you trade, the less you pay. This is a fair approach, I think as exchange earns more when you have higher month trading volumes.

As for deposit and withdrawal fees, they are taken by the company but they do not come directly to the company’s pocket as this money goes to payment systems.

The highest trading commission rate is 0.25 percent. It is taken from all those who’s monthly trading volume is below $20,000.

Security and support service

I have a good news for you. Bitstamp requires two-factor authentication since June 2018. This is a mandatory procedure, which increases the security level of your own trading account. You can use both Google Autenticator or Duo Mobile services.

💼 Related Article
Cryptocurrency Trading Signals, How to Choose and to Use Them
🔥 Hot
7 months 1 week
256
Cryptocurrency Trading Signals, How to Choose and to Use Them

Moreover, you can switch on notifications about all the important events that take place in your trading account. Those messages will be transferred directly to your email address. This allows users to get updates on all the important events and take measures in case of any suspicious acts.

As for the support service, some users say that sometimes it takes time to receive any answer from the team. The speed of reaction is slow, but to tell the truth, I think that this is due to the inflow of investors. Bitstamp is one of many exchanges having such problems and I hope they are going to solve them in the future.

Pros and cons

This is my most preferable part of any crypto exchange review. Here I’m going to underline those pros and cons I think the most important of the company. I’m going to start with advantages. Here they are:

  1. Great working experience. Bitstamp operates since 2011. The team does not hide their members, which is a positive aspect as they are trusted by the crypto community.

  2. Bitstamp has its license and operates according to legislation. Users may be sure that their money is safe and they will not be scammed by the administration.

  3. Liquidity. This exchange has high liquidity as there are serious daily trading volumes. This means that the currency pairs are less volatile and you can use all types of orders.

  4. Several payment methods allowed. Bitstamp offers not only cryptocurrencies but also fiat money. You can deposit USD and EUR as well as withdraw them from your trading account. Credit and debit cards such as MasterCard or VISA are also available.

  5. Friendly user interface. I heard no complaints about Bitstamp’s interface from users and I found no negative testimonials about it.

💼 Related Article
NEO Trading Guide For Beginners
🔥 Hot
7 months 2 weeks
256
NEO Trading Guide For Beginners

And now I’m going to share with you my negative thoughts about the exchange. They are not numerous, but I think it will be interesting for you:

  1. Verification requirements. This is not the big problem, but I think there are those who want to stay anonymous in crypto industry. Bitstamp does not allow to stay in shadow as every user has to do the verification procedure before getting access to trading.

  2. A small number of cryptocurrency pairs. It is true. You will not find any altcoins from above the top 20. However, Bitstamp offers in its turn the possibility to work with hybrid pairs including USD and other fiats. The exchange can be used as your pass into the world of altcoins as you may buy BTC or ETH here and then transfer those cryptos to other exchanges with a wider range of pairs, which do not support fiat money.

  3. Lack of localization. The website is in English only. Other languages are unavailable. I’m far from thinking that the international language is not enough for such a trading platform, but for some traders, it may be a real problem to work with the exchange.

Bitstamp overview

Before making the full stop, I would like to make a brief overview of this crypto exchange. I’m not going to give any recommendations as it is up to you to decide whether to place your investments there or to find some other trading platforms. However, I want you to pay attention to some interesting moments.

Bitstamp operates since 2011 and there were no significant security issues. This is the first thing that I have paid attention to. Bitstamp offers great opportunities for all those traders who want to use technical analysis in their trading routine as there is a large number of indicators and other important tools available.

💼 Related Article
ZCash Price Prediction- How Much Will cost ZEC in 2018?
🔥 Hot
7 months 3 weeks
256
ZCash Price Prediction- How Much Will cost ZEC in 2018?

Subscribe to U.Today on Twitter, and get involved in all top daily crypto news, stories and price predictions!
⭐ Features
357 views views
👓 Recommended articles
something-wide
something-wide
⭐ Features Alex Morris

Cryptocurrency Margin Trading - Explanation for Beginners

⭐ Features
The article runs about all the peculiarities of margin trading which may be useful for inexperienced traders
Cryptocurrency Margin Trading - Explanation for Beginners

What is Margin Trading? 


Margin trading, to put it simply, is the practice of taking loans from a broker in order to buy more than you can afford. Before looking into the peculiarities of cryptocurrency margin trading, let us consider one simple example. A person, who wants to buy a $200,000 apartment with only $20,000 on hands, will have to go to a bank and apply for a loan (a leverage). After performing the customer due diligence, the bank may approve his mortgage and give money for investment. If the price of apartment goes up, this individual will significantly profit off his small initial investment. 
 

Bitcoin Margin Trading 


Bitcoin margin trading is, in fact, very similar to getting a mortgage, but here you deal with crypto instead of real estate. You open a position with leverage and pump up your buying power by taking loan from a broker on one of the cryptocurrency exchanges that allows margin trading.
 

NB! The money lent to a trader come from an operating account, so customer funds are not used by a broker. However, some exchanges allow borrowing directly from other users. 

Then you can invest your leveraged funds in any available cryptocurrency that, as you believe, has the potential to significantly increase its value. For example, you can buy 100$ worth of Bitcoin Cash (BCH) with only 20$ of your own money (if the leverage ratio is 1:5). If the price of BTC remains the same, you break even, but any BCH price spike will result in profit (that would be significantly lower if you weren’t trading with leverage).       
 

Leverage Ratio 


The sum of money that an investor is able to borrow from the exchange is determined by the leverage. Leverage amount is presented as ratio (1:2, 1:3 and son on). Traditional traders are conducted with 1:1 leverage.    

Compared to Forex trading, cryptocurrency exchanges have a rather low amount of leverage due to the fact that this market is still highly volatile. Cryptocurrency traders will not find any brokers that are willing to lend out funds on a mammoth scale with 1:500 leverage or higher.    
 

Margin Trading Risks 


Before engaging in margin trading with cryptocurrencies, you have to remember that it comes with significant interest rates and fees. Inexperienced investors may be tempered to take advantage of market volatility and gain huge profits, but there is always a huge risk if you choose to trade with leverage.

  1. Equity threshold. In order to engage in margin trading with Bitcoin, your equity level has to be above a specific threshold (for the majority of exchanges it is about 30 percent). If your account’s equity falls below this threshold, you won’t be allow to open a position unless you make an additional deposit.
  2. High interest rates. Crypto exchanges profit from Bitcoin margin trading (US) by setting interest rates which are quite high (especially, for long-term investments). Consequently, if the predicted price jump doesn’t happen anytime soon, it is better to close a position, since the constantly increasing interest rate may soon diminish your profit. Therefore, trading with leverage is a good option if you want to take advantage of an ongoing bullish trends, but it is a no-go zone for beginners who want to capitalize on long-term investments.  
  3. Huge losses. As mentioned above, the instability and sensitivity of crypto market won’t let broker implement a higher amount of leverage. Even opening a position with, say, 1:5 leverage may lead to huge profits if stars align. However, you may lose everything as well. Apart of sending a  'goodbye kiss' to your initial investments, an investor may find himself in a situation when he will have to give back the borrowed money and pay back the interest rate.


As you can see, before diving into the wilds of Bitcoin margin trading (USA), you have to minimize your risks to almost non-existent. It can be a powerful tool for cryptocurrency investors, but make sure that you won’t sink below a break-even point, and you initial investment will cover trading fees and the interest rate.
 

Forced Liquidation 

  
Once we’ve covered the risks, it is also to introduce the notion of forced liquidation. Forced liquidation presupposed that all you margin positions get closed to make sure that you won’t default on your borrowed funds. It is vital to regularly check your positions and reduce their size to prevent substantial losses and consequent forced liquidation.       
 

Best Margin Trading Exchange  


A large number of cryptocurrency exchanges (Bitfinex, Kraken and so on) offer their users a possibility of trading with leverage. No matter what exchange you choose, the process of opening a margin position generally remains the same. However, there may be significant differences when it comes to fees, the initial equity and the amount of leverage and available assets, so it’s completely up to you to choose the best margin trading cryptocurrency exchange. 

To show you how margin trading works, let’s have a look at a Hong Kong-based exchange Bitfinex that allows opening positions with up to 1:3.33 leverage. The short guide, which presented below, will show you how to use this Bitcoin exchange for margin trading with both long and short positions.     

  1. After creating an account and depositing funds, you have to choose the ‘Trading’ section and select a desired trading pair. 

    image
     
  2. Then go to the ‘Margin’ section and place an order specifying the amount of your investment, leverage ratio and order type. 

    image
     
  3. Click the ‘Margin Sell’ button in order to finish your order and open a position. 

    image
     
  4. Your position can be closed at any time by using the corresponding button. Borrowed money will be automatically repaid to your broker while gains/losses will be credited to your margin wallet.  

Here’s a table which lists popular exchanges with margin trading along with the maximum amount of leverage that they can offer. 
 

Crypto Exchange 

Maximum Leverage  

BitMEX

1:100 (BTC)  

1:50 (ETH)

1:20 (XRP)   

Bitfinex

1:3,33

Huobi

1:5

Poloniex

1:2,5

 

1:5 (BTC and ETH)

Join our Telegram channel to get news even faster!
⭐ Features
381 views views
👓 Recommended articles
something-wide
something-wide
Cryptotips Vera Thornpike

Monero Price Prediction 2018\20\25: How Much Will XMR Cost?

Cryptotips
How much will Monero coin cost in 2018/20/25?
Monero Price Prediction 2018\20\25: How Much Will XMR Cost?

As major cryptocurrencies like Bitcoin and Ethereum are continually growing in popularity, other minor altcoins follow their suite. Being enlisted in the top 20 world cryptocurrencies, Monero is now considered to be a good investment. But what makes it so attractive for traders and investors? It’s time to reveal key advantages of this coin and read Monero price prediction for the short and long terms.

Let’s start with the explanation of Monero’s origin and nature.

What is Monero?

In July 2012, the world witnessed the implementation of CryptoNote application layer protocol that was designed to work with different decentralized currencies. Although it is similar to the application layer used for Bitcoin, there are some principal differences, as well. Initially, Bytecoin was the first implementation of CryptoNote layer, but since about 80 percent of coins have already been published, it was decided to make a fork for a new chain and new coins. This chain was called ‘Bitmonero,’ and eventually turned into ‘Monero.’ In this chain, a new block is mined and added every two minutes.

benefits

Advantages of Monero

The fundamental principles of this cryptocurrency are total privacy and transparency. When creating Monero, the team was striving to make a fully decentralized and private electronic currency. Therefore, Monero has five important merits:

  1. 100% privacy. Only you can manage your XMR coins and see the details of transactions.

  2. Great fungibility, which means the asset can be easily exchanged for goods or other assets.

  3. Dynamic scalability. While Bitcoin has imposed a one Mb block size limit on users, Monero has no pre-set size limits but reduced the amount of reward depending on the block size. Blocks lighter than 60 Kb are free from reward penalties.

  4. Resistance to ASIC (Application Specific Integrated Circuit).

  5. It uses multiple private and public keys for a higher security level.

Monero vs other currencies

💼 Related Article
What is Monero (XMR) - Simple Explanation for Beginners
🔥 Hot
9 months 2 weeks
256
What is Monero (XMR) - Simple Explanation for Beginners


Before we proceed to Monero prediction, let’s underline the basic differences between XMR and other coins:

Monero

Bitcoin

Ethereum

Total supply– 18.4 mln XMR + 0.3 XMR/minute

21 mln BTC

72 mln ETH

Proof-of-work protocol

Proof-of-work protocol

Proof-of-work protocol (will be changed to proof-of-stake)

CryptoNote algorithm

SHA-256 algorithm

Ethash algorithm

Block time– 120 seconds

Block time– 10 minutes

Block time– 15-45 seconds

Monero price prediction 2017

Just like it happened with many other top 20 cryptocurrencies, Monero caught the wave of popularity and Monero crypto prediction was not justified– it was outperformed. At the beginning of 2017, the currency was worth $15 and started growing in Spring 2017. People thought it would reach $35-40 by Autumn, and gain maximum $100 by the end of the year.

Surprisingly, XMR crawled to $41 in July 2017 and soared in price by December. It reached the maximum price of $431 on Dec. 12 2017, and fells as quickly as it rose during the following month. Therefore, Monero prediction 2017 was not as optimistic as things turned out to be – no one could predict the global crypto price explosion.

Monero price prediction 2018

At the beginning of the year, Monero 2018 prediction was more optimistic: investors hoped it to at least stay at the level of $200-300. However, Monero shared its lot with other altcoins and nosedived to $140-150 with eventual price fluctuations in Spring. Another unexpected turn we couldn’t foresee.

What about the second half of the year? Monero prediction 2018 is contradictory. The rumor goes that investors can contribute to artificial deflation to increase momentum and push the price down to around $120 in the following months.

At the same time, if Monero doesn’t become a victim of speculators, the rising demand for it will make XMR price soar to $350-400 by the end of the year. The same Monero 2018 price prediction is provided by some experts.

What about technical analysis? Monero price prediction in 2018 varies from source to source. While longforecast.com predicts it to fall to $107 within the next month, WalletInvestor.com displays it can grow to $300 within a year (which means it can reach about $200 by the end of 2018).

💼 Related Article
Best Monero Mining Rigs: How to Build a Cheap XMR Rig?
🔥 Hot
5 months 1 week
256
Best Monero Mining Rigs: How to Build a Cheap XMR Rig?

Monero price prediction 2020

The further, the better: when it comes to long-term forecasts, the vast majority of online predictors agree with one another. Providing information from different sources, WalletInvestor gives us the following numbers:

  • Google - $637

  • PayPal - $419

  • Smartphone analysis - $319

  • Internet users - $612

  • Data increase - $279

All that means that Monero coin price prediction may be different, but the vast majority of Internet users stake on its growth. Even longforecast.com displays that XMR can grow from $150 to $30 during 2020.

Monero in 2025 – your chance to compensate investments?

Want to make a long-term investment? Think twice before choosing Monero for that. Although websites show appealing prices as $1,500, $6,000, and even higher, you need to take the real value of coin into consideration. Is Monero technologically more advanced than Bitcoin and Ethereum? Yes, but slightly. Although the Internet community is concerned about security and privacy of transactions, Monero isn’t the only platform that offers it– it can be easily outperformed by competitors if the team will not introduce new unique features.

What the forecast depends on?

When it comes to Monero difficulty of prediction is conditioned by the fact that investors’ actions are hard to foresee, and the number of competitors offering some unique and cool features is also growing. Among the benefits that contribute to Monero popularization are the following:

  • It ensures unbeatable privacy.

  • Transactions cannot be linked or traced.

  • There’s no block limit, and XMR is dynamically scalable.

  • When all XMR is mined, there will be extra coins to incentivize the miners.

  • There’s a strong team behind Monero.

At the same time, some people don’t rush to make too optimistic price prediction for Monero because it doesn’t have enough wallet compatibility yet, not beginner-friendly, and the amount of encryption involved is too huge. Time will show whether Monero can live up to our expectations.

Subscribe to U.Today on Twitter, and get involved in all top daily crypto news, stories and price predictions!
Cryptotips
5150 views views
👓 Recommended articles
something-wide
something-wide
Wikicoin George Shnurenko

Bitcoin Cash Price Prediction 2018\20\25: BCH Forecast

Wikicoin
Is this altcoin promising enough to invest in it?
Bitcoin Cash Price Prediction 2018\20\25: BCH Forecast

Bitcoin Cash is gaining its value not only due to its parent Bitcoin cryptocurrency. Investors start realizing that it's one of the most convenient ways to pay with crypto and withdraw the virtual assets. Is this altcoin promising enough to invest in it? Let's read Bitcoin Cash prediction to find this out.

Is Bitcoin Cash much different from Bitcoin?

Although Bitcoin continues its reigning on the cryptocurrency market, it’s far not the best coin from the technological standpoint. The number of transactions it can process is only seven per second– this is too slow. For reference: Visa processes transactions at the rate of 1,700 per second having the capability to process over 24,000 transactions per second.

Due to increasing popularity of Bitcoin, people started mining it hard and the mining pools gave about 80-90 percent of their power for BTC mining. That required a lot of energy and room for storing data.

Advantages of Bitcoin Cash

In July 2017, the Bitcoin community voted for the introduction of SegWit2x technology– it minifies the volume of blocks to be mined by removing signature data. However, the size of the blocks still continues increasing, and now the blocks can weigh even one GB and more. Of course, that slows down the mining process and makes it less efficient.

Understanding that, miners and developers have introduced a hard fork of Bitcoin– Bitcoin Cash.

It has optimal block sizes (eight MB against one MB in BTC which boosts safety) and ensures a great speed of the verification process.

How has Bitcoin been improved?

In other words, Bitcoin Cash is a better version of Bitcoin. So what’s changed?

                            Bitcoin

                                        Bitcoin Cash

A standard block is one MB maximum.

Uses power blocks of eight MB maximum.

Uses SegWit– the signatures can be discarded from the Blockchain.

SecureSigns– signatures must be secured and validated on the Blockchain.

It has been developed by one centralized team. Bitcoin Core is the only implementation.

Has been developed by several teams and features several client implementations (Bitcoin XT, Bitcoin Classic, Bitcoin Unlimited, etc).

Off-chain payment channels.

On-chain transactions and increasing for block size.

About Bitcoin Cash price prediction 2017

Just like its parent coin, Bitcoin Cash experienced an exponential boost in growth in 2017. Justifying the major community’s prediction Bitcoin Cash has started quickly making its way to the top and managed to reach important cost milestones. The coin was launched at the price of $250, and the next day, it already cost $651 per coin! In the middle of the month, it already cost $900.

How Bitcoin Cash price changed in 2017

Of course, its development has been accompanied by hot debates over what’s better– the original of the ‘affiliate’ coin. The value of Bitcoin cash started falling when people realized that the fork is not a versatile answer to the problem of BTC scaling. Although it gained the maximum of $2,442, Bitcoin Cash price prediction for further months wasn’t justified– like all other coins, it started falling at the beginning of 2018.

💼 Related Article
Roger Ver aka Bitcoin Jesus: Who is Piloting the Drowning Vessel Called Bitcoin Cash?
🔥 Hot
3 months
256
Roger Ver aka Bitcoin Jesus: Who is Piloting the Drowning Vessel Called Bitcoin Cash?

Bitcoin Cash prediction 2018

Different sources provide us with different Bitcoin Cash 2018 prediction:

  • According to technical analysis (cost estimated is done by software based on the price trends and trade volume), within a year, the coin can raise to $2,363.42 doubling in its value. So if you invest $100 in Bitcoin Cash, you can earn $211 within a year. That’s what Walletinvestor.com claims.

  • Alternatively, tradingbeasts.com says that Bitcoin cash can grow to $1,930–$2,838 in December 2018. That’s almost the same Bitcoin cash price prediction 2018.

  • Roger Ver, one of Bitcoin millionaires, says that the currency will continue its growth, and Bitcoin Cash will double its price in the coming months due to simplicity and convenience of use.

  • A less reliable but popular smartereum.com predicts 500 percent growth of BCH cash– the cost can grow to $6,700 within less than a year!

  • Similarly, profitconfidential.com claims that Bitcoin Cash will reach the price of $7,000 by the end of 2018.

As we see, most Bitcoin Cash 2018 price predictions are optimistic, and traders see it as a better Bitcoin alternative that brings about a lot of benefits, including fast transactions and low fees.

💼 Related Article
Amid the Cryptocurrency Bloodshed, What is Going on With Bitcoin Cash?
🔥 Hot
3 months
256
Amid the Cryptocurrency Bloodshed, What is Going on With Bitcoin Cash?

Bitcoin Cash prediction 2020

When looking for 2020 Bitcoin Cash price prediction today, we can see that most sources provide almost the same information:

  • Tradingbeasts.com predicts that Bitcoin cash will cost from $4,037 to $5,937 by the end of 2020.

  • Brian Kelly, a cryptocurrency expert, didn’t mention any certain numbers but said that this is one of the most promising coins that every smart trader should buy.

  • priceprediction.co claims that by the end of 2020, Bitcoin Cash price will grow to $9,562.28.

Bitcoin Cash long term prediction

When it comes to Bitcoin Cash five-year prediction, there are not so many opinions regarding it. According to Walletinvestor.com, the price of Bitcoin Cash will rise to $7520.50, which means the growth of 572 percent- that seems to make sense.

If we look in smartereum.com Bitcoin Cash price chart prediction, we’ll see that Bitcoin Cash can raise to  $24,600 within five years. That seems to be too optimistic. With such high volatility, it’s hard to make any predictions– price movements are sudden.

What can affect the coin value?

There’s a myriad of factors influencing the Bitcoin Cash prediction: Reddit users have shared their opinions and claimed that the development of Bitcoin cash can be affected by the following things.

  • The dominance of Bitcoin.

  • Other advanced altcoins.

  • Poor adoption of technology.

  • Centralization of mining.

Should I invest in Bitcoin Cash?

Bitcoin Cash prediction today is not just optimistic– it seems to be close to reality. Besides, considering the current Bitcoin Cash prediction flip, the forecasts are expected to be justified pretty soon. Therefore, if you’re still in the dark about Bitcoin Cash and want to make your first investment, it’s high time to do it now– you can surely double the sum within a year.

The fastest way to get crypto news is to follow our Twitter. You won’t miss a thing! Subscribe.
Wikicoin
5717 views views
👓 Recommended articles
something-wide
something-wide
⭐ Features George Shnurenko

Cardano Price Prediction- How Much Will the Cost of ADA be in 2018\20\25?

⭐ Features
Want to invest in Cardano? Find out what Cardano price prediction for the following years is
Cardano Price Prediction- How Much Will the Cost of ADA be in 2018\20\25?

Although it appeared recently in September 2017, Cardano quickly made waves and even got to the top 20 world cryptocurrencies with a considerable market cap.

Of course, the coin has attracted the attention of investors from all over the world, and if you’re planning to join their rows, you need to be aware of Cardano price prediction. This is the right place to get such information.

Let’s clear up what Cardano is, and what specialists say about the perspectives of this coin.

What is Cardano?

Just like Ethereum, Cardano is exploited for the development of decentralized applications and use of smart tokens. However, this is where the list of common features ends: in fact, Cardano is an improved version of Ethereum that belongs to the third generation of the Blockchain, more scalable, and more interoperable.

Ethereum

Cardano

Market capitalization- $92 bln

Market capitalization- $4.8 bln

Uses single-level smart contracts

Uses multi-level smart contracts

Uses Proof-of-Work (Proof-of-Stake is being developed)

Uses Proof-of-Stake

Second Blockchain  generation

Third Blockchain generation

Being the native cryptocurrency of Cardano Blockchain platform, ADA coin is used to perform transactions. The technologies underlying this cryptocurrency are open source, which means that the development of this platform was made very simple. Being based on peer review procedure, Cardano Blockchain is developed by the community together with its founders.

Was Cardano ADA prediction justified in 2017?

Right from the moment of its appearance on the market, Cardano was ranked high by investors. Starting at the price of $0.02, it gradually made its way to $0.1 by the end of autumn and managed to reach $0.5 in December, when all major cryptocurrencies soared in price. Therefore, in the last year, ADA Cardano price prediction was even exceeded.

But it’s not the end– on Jan. 4, 2018, Cardano reached the cost of $1.22, which means the return of about 6,000 percent within three months! During this short time, the market capitalization has also grown from the initial $0.56 mln to $31 bln. But just like all other cryptocurrencies, ADA went through a significant crash in the first quarter of 2018.

Investors still buy Cardano thanks to its technological superiority over other cryptocurrencies. Besides, the team developing it is highly credible.

💼 Related Article
Cardano: Business Prospects and Challenges
🔥 Hot
2 months 3 weeks
256
Cardano: Business Prospects and Challenges

Cardano price prediction 2018

If we take a look at the first quarter of this year, Cardano coin price prediction 2018 was justified– a lot of specialists predicted a significant surge of all cryptocurrencies, and ADA wasn’t an exception.

After experiencing enormous growth in January, it started falling in price. Cardano 2018 prediction for Spring was about $0.2– that’s close to the reality that happened. At the beginning of April, ADA was worth $1.4, then experienced a minor growth to $0.3, and got back to its current level of $0.15.

If we perform a technical analysis to make Cardano price prediction for 2018 using the price trends and trading volume trends, the average price by the end of the year will be $0.42. This is what most websites for investors predict.

However, while WalletInvestor gave pretty much the same forecast in April, now the website says that ADA is not a good investment, because it will lose its price completely (it’s not clear what this forecast is based on).

ADA 2018

Relying on technical analysis, Cardano prediction 2018 is that the investment will bring you a 35 percent return, which is also a positive tendency. Considering the rising of the coin in January 2018, the maximum price which ADA can reach is $2.1 (if the market cap reaches $50 bln).

What is clear now is that Cardano is becoming a more and more competitive player on the market of crypto, but its success will depend on the level of adoption– since the coin is supported by a broad community, its value will continue growing.

Another Cardano 2018 price prediction is based on the supposition that ADA will be widely used in Japan and the Eastern Pacific, which will give it a boost to rise to the threshold of $0.22. The market cap can reach $40 bln by December 2018.

💼 Related Article
Cardano Price Prediction [UPDATE]: Reasons Why 2019 Will Be Good for Cardano
🔥 Hot
3 weeks 3 days
256
Cardano Price Prediction [UPDATE]: Reasons Why 2019 Will Be Good for Cardano

Cardano price prediction 2019

According to experts, in 2018 Cardano price prediction isn’t as optimistic as in the upcoming years due to the fact that it needs to be popularized further and get enough support from the crypto community. 2019 can be a turning point in the history of ADA.

According to different websites, the average price of ADA can rise from about $0.6 in January to $2.5 in December 2019. This is quite an optimistic Cardano prediction. The superiority of the coin in the following year is defined by the following factors:

Cardano price prediction 2020

When it comes to a more long-term Cardano coin price prediction, opinions of specialists differ. According to the technical analysis of longforecast.com, the Cardano coin prediction for December 2020 is $1.89, which correlates with realistic forecasts.

As for its place on the market, there’s another prediction for Cardano:

  • funds will be replaced by cryptocurrency investments, which will drive the further development of the coin

  • Cardano can even get to the Top-5 cryptocurrencies giving a tough competition to LTC, Ripple, and other cryptocurrencies

  • The coin will be widely introduced in Eastern Pacific

Making Cardano ADA price prediction for 2023 and 2025 would a speculation because a lot of other, more superior Blockchains and cryptocurrencies keep appearing– they can outperform this one within a few years.

Forecast for Cardano offered by Internet users

Should I invest in Cardano?

Generally, Cardano coin prediction is positive. Although it isn’t expected to make a significant leap in 2018, it can start growing faster in 2019.

Cardano Blockchain is more technologically advanced than Ethereum and can be successfully used for making online payments.

Therefore, if you want to invest, it’s time to do it in July– the cost of ADA has already started climbing slowly.

Only the most important posts per day. Infographics, analytics, reviews & summaries. Follow us on Facebook!
⭐ Features
15162 views views
👓 Recommended articles
something-wide
something-wide