Increase your pension by investing in cryptocurrencies

All over the world, human life expectancy has increased by leaps and bounds. Compared to the 1950s, it increased by 50%, and compared to the 1980s, it increased by 30%. Long gone are the days when only company-sponsored retirement plans were enough to see the golden age in a relaxed and carefree manner.

Today, with other expenses such as housing, education, health care and more rising, it is becoming increasingly difficult for a few people to save for retirement.

Unfortunately, the harsh truth is that people of all generations from baby boomers to millennials are not saving enough for retirement. Austerity is one of the world’s most underrated epic crises.

“Retirement is complicated. It’s never too early or too late to start preparing for retirement.”

So, people are trying to find alternative opportunities that provide them with higher returns in a shorter period. Traditionally, real estate, private equity and venture capital have been sought after. Now a new and more additional income and lucrative investment has entered the picture – enter cryptocurrencies.

Cryptocurrency Investments – For those who don’t want to put all their eggs in one basket

One of the biggest benefits of investing in cryptocurrencies is that it separates your portfolio from reserve currencies. For example, if you live in the UK, then you are required to have shares of UK-based companies in your pension portfolio if you are into equity. What will happen to your portfolio if the British pound falls? And given today’s changing political scenario around the world, nothing is certain.

Therefore, investing in cryptocurrencies makes the most sense. With digital currency investments, you are effectively creating a basket of digital coins, which acts as an effective hedge or safe bet against the weakness of the reserve currency.

The average investor should allocate only a small portion of their retirement assets to cryptocurrencies, due to their volatility. But volatility can go both ways — think health care stocks in the 1950s and tech stocks in the 1990s. It was the smart early investors who made it big.

Don’t fall behind or lose. Incorporate cryptocurrencies into your holdings to start building a truly diversified portfolio.

Breaking the Wall – Build Your Confidence in Cryptocurrencies

One of the biggest and most important obstacles that most crypto investors face is that they cannot trust digital currencies. Many people, especially non-tech people or near retirement, don’t understand what promotion is all about. Unfortunately, they fail to realize and appreciate the myriad potential of cryptocurrency.

The reality is this – cryptocurrencies are one of the most reliable assets, supported by the latest technology. The blockchain technology that powers digital currencies enables trading instantly and indelibly without the need for third-party verification. It is a peer-to-peer system that is completely open and works on advanced cryptographic principles.

Retirement planning funds should work to demystify cryptocurrencies

In order to build trust and gain the support of individuals, retirement planning funds must educate investors about the endless potential of cryptocurrencies. For this, they need advanced analytics that help provide reliable risk analysis, risk/return metrics and projections.

In addition, investment firms can establish specialized cryptocurrency advisory services to assist and guide new investors. In the coming years, one can expect several AI-based smart advisors to appear on the scene – they will help calculate the right investments based on an individual’s time horizon, risk tolerance and other factors.

Human advisors can work alongside these intelligent advisors and provide clients with personalized consultations and other suggestions as needed.

The need for greater visibility and comprehensive control

Retirement investors looking to add cryptocurrencies to their asset portfolio require more control and visibility as they experiment with these new assets. Look for platforms that allow you to combine all your assets in one place. An integrated solution that allows you to manage and balance all your assets including traditional ones like bonds and stocks with new asset classes like cryptocurrency wallets.

Having such a broad platform that supports all your assets gives you a holistic analysis of your portfolio, helping you make better and more informed decisions. That way, you reach the ultimate goal of saving for your goals faster.

Look for investment planning portals that also provide additional features such as recurring cryptocurrency contributions at scheduled or unscheduled intervals.

Advances in Supportive Technologies for Investing in Cryptocurrencies

Cryptocurrency investing will only become mainstream when the accompanying technology allows investors to trade coins seamlessly, even for new investors who are not aware of the knowledge. The exchange of one digital coin for another, or even for fiat currencies and other non-tokenized assets must be possible. When this becomes possible, it will eliminate intermediaries from the equation, thus reducing costs and additional fees.

As the technologies that support cryptocurrency investing and trading mature, the value of digital currencies will further increase as the currency becomes mainstream with wider availability. This means early adopters will get a huge windfall. As more and more retirement investment platforms integrate cryptocurrencies, the value of digital currencies is sure to increase offering significant gains to beginners like you.

If you’re wondering if such retirement investment platforms will take a few years to see the light of day, then you’re wrong. Auctus is one such portal that is currently in the Alpha phase of its launch. It is the first portfolio retirement platform to include digital currencies. Auctus users can get investment advice from human and AI-powered analytical tools.

For now, users can save for retirement using Bitcoins, Ethereum and several other digital currencies. In addition, users can use the auto-rebalancing feature that allows them to automatically adjust their portfolio using a set of preset rules.

This holistic approach ensures that users can achieve their retirement goals earlier by making smart and sound investment choices or decisions.

Final Thoughts – Cryptocurrencies should not be overlooked in your retirement portfolio

Yes, it is true that cryptocurrencies are very volatile. In fact, there is speculation online suggesting that “cryptocurrencies are nothing more than a get-quick scheme” and that the bubble is likely to burst in the near future.

The uncertainty doesn’t mean cryptocurrencies shouldn’t be part of your retirement portfolio, even if you have a short investment time horizon. On the other hand, the current drop in cryptocurrency prices in 2018 means that you have a rare opportunity to make gains.

Greater trust, holistic and directly controlled investment management capabilities and advances in supporting technologies ensure that digital currencies are an excellent investment choice to include in your retirement portfolio.

5 Advantages of Cryptocurrency Trading

When it comes to trading cryptocurrencies, you have to speculate whether your chosen market will go up or down in value. And the interesting thing is that you never own the digital assets. In fact, trading is done in derivative products such as CFDs. Let’s take a look at the benefits of trading cryptocurrencies. Read on to find out more.

Volatility

Although cryptocurrency is a new market, it is quite volatile due to short-term speculative interest. The price of Bitcoin fell to $5851 from $19,378 in 2018, in just one year. However, the value of other digital currencies is quite stable, which is good news.

What makes this world so exciting is the volatility of cryptocurrency values. Price action offers many opportunities for traders. However, this also carries great risk. So if you decide to do market research, just make sure you do your research and put together a risk management strategy.

Business hours

Usually the market is open for trading 24/7 as it is not regulated by any government. Moreover, transactions are done between buyers and sellers all over the world. There may be brief outages when infrastructure updates occur.

Improved liquidity

Liquidity refers to how quickly a digital currency can be sold for cash. This feature is important because it allows for shorter transaction times, better accuracy and better prices. Generally, the market is somewhat illiquid because financial transactions take place on different exchanges. So small shops can bring big changes in prices.

Leveraged exposure

Since CFD trading is considered a leveraged product, you can open a position on what we call “margin”. In this case, the deposit value is part of the trade value. So you can enjoy great market exposure without investing a lot of money.

The loss or gain will reflect the value of the position at the time it was closed. Therefore, if you trade on margin, you can earn huge profits by investing a small amount of money. However, it also increases losses that can exceed your trade deposit. Therefore, make sure you consider the total value of the position before investing in CFDs.

Also, it is important to ensure that you follow a solid risk management strategy, which should include appropriate limits and stops.

Fast account opening

If you want to buy cryptocurrencies, make sure to do it through an exchange. All you have to do is sign up for an exchange account and keep the currency in your wallet. Keep in mind that this process can be restrictive and takes a lot of time and effort. However, once the account is created, the rest of the process will be quite smooth and hassle-free.

In short, these are some of the most prominent advantages of cryptocurrency trading here and now. We hope you find this article very helpful.

Blockchain & IoT – How "Crypto" Probably in Herald Industry 4.0

While most people only started learning about “blockchain” because of Bitcoin, its roots – and applications – go much deeper than that.

Blockchain is a technology unto itself. It powers Bitcoin and is essentially why *so many* new ICOs have flooded the market – creating an “ICO” is ridiculously easy (no barriers to entry).

The point of the system is to create a decentralized database – which essentially means that instead of relying on Google or Microsoft to store data, a network of computers (mainly run by individuals) can act in the same way as a larger company.

To understand the implications of this (and therefore where the technology could take the industry) – you need to look at how the system works at a fundamental level.

Created in 2008 (a year before Bitcoin), it is an open source software solution. This means that its source code can be downloaded and edited by anyone. However, it must be noted that the central “repository” can only be modified by certain individuals (so code “development” is basically not a free-for-all).

The system works with what is known as a merkle tree – a type of data graph created to allow computer systems to access versioned data.

Merkle trees have been used to great effect in a number of other systems; especially “GIT” (source code management software). Without getting too technical, it basically stores a “version” of a dataset. This version is numbered and therefore can be loaded whenever the user wants to recall its older version. In the case of software development, this means that a set of source code can be updated on multiple systems.

The way it works – by storing a huge “file” of updates to a central data set – is basically what powers Bitcoin and all other “crypto” systems. The term “crypto” simply means “cryptographic”, which is the technical term for “encryption”.

Regardless of its basic operation, the real benefit of the wider adoption of “on-chain” is almost certainly the “paradigm” it provides to the industry.

There’s been an idea called “Industry 4.0” that’s been floating around for a few decades. Often confused with the “Internet of Things”, the idea is that a new layer of “autonomous” machinery can be introduced to create even more efficient production, distribution and delivery techniques for businesses and consumers. Although it was often objected to, it was never adopted.

Many experts are now looking to technology as a way to facilitate this change. The reason is that the interesting thing about “crypto” is that – as Ethereum in particular testifies – the various systems that are built on top of it can actually be programmed to work with a layer of logic.

This logic is really what IoT / Industry 4.0 has missed so far – and why many are looking to the “blockchain” (or equivalent) to provide a ground-level standard for new ideas moving forward. This standard will give companies the ability to create “decentralized” applications that empower intelligent machines to create more flexible and efficient manufacturing processes.

What is Blockchain?

Blockchain is undeniably a resourceful invention that is practically revolutionizing the global business market. Its evolution has brought with it the greater good, not only for businesses but also for its users. But since it is a revelation to the world, the vision of its operational activities is still unclear. The main question that remains in everyone’s mind is – What is Blockchain?

To begin with, Blockchain technology serves as a platform that enables the transit of digital information without the risk of copying. He, in a way, laid the foundations of a strong backbone of a new kind of internet space. Originally designed to deal with Bitcoin – trying to explain to the layman the functions of its algorithms, hash functions and digital signature properties, today, technology enthusiasts are finding other potential uses for this flawless invention that could pave the way to start a whole new process of doing business in the world.

Blockchain, to be defined in all respects, is a kind of algorithm and data distribution structure for managing electronic cash without the intervention of any centralized administration, programmed to record all financial transactions as well as everything of value.

Blockchain work

Blockchain can be understood as a Distributed Ledger technology that was originally designed to support the Bitcoin cryptocurrency. But after heavy criticism and pushback, the technology was revised for use in things that were more productive.

To give a clear picture, imagine a spreadsheet that is practically scaled up by tons in a multitude of computer systems. And then imagine that these networks are designed to update this table from time to time. That’s exactly what blockchain is.

The information stored on the blockchain is a shared sheet whose data is reconciled from time to time. It is a practical way that speaks of many obvious advantages. To be together, blockchain data does not exist in one place. This means that everything stored there is open to public inspection and scrutiny. Furthermore, there is no centralized information storage platform that hackers can corrupt. It is practically accessed by over a million computer systems side by side, and its data can be consulted by any person with an Internet connection.

Blockchain durability and authenticity

Blockchain technology is something that shrinks the internet space. Chic is robust in nature. Similar to offering data to the general public via the World Wide Web, blocks of authentic information are stored on a blockchain platform that is identically visible across all networks.

It is important to note that blockchain cannot be controlled by a single human, entity or identity and has no single point of failure. Just as the internet has proven to be a resilient space over the past 30 years, blockchain will also serve as an authentic, trusted global stage for business transactions as it continues to evolve.

Transparency and incorruptible nature

Industry veterans argue that blockchain lives in a state of consciousness. Practically checked from time to time. It’s similar to self-auditing technology where its network matches each transaction, known as a block, that happens at regular intervals.

This gives rise to two main properties of the blockchain – it is highly transparent and at the same time incorruptible. Every transaction that takes place on this server is embedded in the network, so the whole thing is very visible to the public all the time. Furthermore, editing or omitting blockchain information requires a huge amount of effort and strong computing power. In addition, frauds can be easily identified. Therefore, it is called incorruptible.

Blockchain users

There is no defined rule or regulation as to who will or can use this seamless technology. Although its potential users are currently only banks, commercial giants and global economies, the technology is also open for everyday transactions to the general public. The only drawback blockchain faces is global acceptance.

The role of customer service – why it matters to your business

Plan to get financial data:

Blockchain technology is typically present in the financial sector, but it could transform a number of industries, ranging from the Internet of Things (IoT) supporting healthcare and supply chains to arts and entertainment.

Blockchain expert explains that the technologies have a wide reach comes from their employment in a safe and efficient way. To ensure the integrity, transparency, immutability and fairness of data in various types of transactions.

Ideas about existing business functions:

We are the owner and CEO of cryptoappfactory.com as well as Blockchain. We can improve the existing business system using the idea of ​​creating a competitive advantage through more efficient accounting processes and solving the challenges of potential customers.

We are ready to prove the second point where a P2P energy trading platform eliminates the middleman from selling renewable energy. And another Blockchain startup provides a platform that seamlessly shares data along supply chains. Investors seem to like the startups’ solutions to everyday problems, committing over a million to Origin Trail and over a million to Power Ledger.

Capital raising:

Ideas to create a new model of services and products to launch in your business, we support the concept of capital work for better selection of blockchain services and business support.

We use cryptocurrency to get an alternative solution to traditional project financing. Cryptocurrency has startups using the amount of working capital on the label of direct investment using token generation events. Fellows have specific policies for maintaining and supporting the project in line with legal services.

Get new customer services:

Blockchain technology has the model of cryptocurrencies to be able to transfer data to an expanded market field. Cryptocurrency has private and public investments to verify the transaction on the recognition of companies to attract Bitcoin and other online currencies. It helps support and translate into sales.

According to the blockchain tool, we have large media data that we can highlight and share on the forum through a small family business. PIVX has storage devices to insert new client and customer to get Bitcoin in payment methods easier and faster.

Strengthening Cyber ​​Security:

We use half of the Bitcoins to share in case of private data breaches and half of the data to share public data. In every company they have some qualified experienced support to learn the business to the next level of access. Blockchain technology can be used to reduce the risk of data breaches.

Blockchain has improved cybersecurity efforts because we have the infrastructure, transparency, event tracking, cryptography, and other information systems to share security data.

Ensure Bitcoin Privacy:

Privacy policies have several complementary tasks on cybersecurity systems. It is important to consider tracking certain consumers when purchasing Bitcoin to protect their data online.

Bitcoin privacy is very important because even applying your regulation of your Bitcoin data protection has many features for which we have stronger privacy laws. Blockchain can address that element by creating and protecting the attention of consumer data to build transparency and trust between consumers and brands. We offer sample data to share in the marketplace of living ideas using a large platform. Blockchain developers have a great user ability to share and store information about different entities.

Global challenges using cryptocurrency:

Finally, we have entrepreneurs who like to use blockchain technology to build other places that will destroy natural disasters.

With Forbes, we listed who can divide the capitalists in the market using cryptocurrencies, bitcoin and blockchain. We residents have a panel to interact and reconnect to get the power grid and we also sell Bitcoin wallet for local private or public ventures.

This blockchain is the easiest way to help the cryptocurrency platform in the easiest way to respond. We offer Bitcoin and other currencies in the marketplace that empowers your business in a simple way.

5 Tips to Consider Before Investing in Bitcoin

In 2017, Bitcoin saw a great growth and people made a lot of money in the process. Even today, Bitcoin is one of the most lucrative markets. If you are just a beginner, you may want to do your homework before investing in Bitcoin. Below are 5 expert tips that can help you avoid some common mistakes while trading Bitcoins.

1. Learn the basics first

First of all, you might want to learn the basics to get a better idea of ​​how to buy and sell Bitcoin. Additionally, you may want to read reviews of popular Bitcoin exchanges to find the best platform.

As with other types of financial investments, you may want to find ways to protect your investment. Make sure your assets are safe from fraudsters and cyber-attacks. After all, security is the most important aspect of any type of investment.

2. Consider market capitalization

It is not a good idea to make this type of decision based on the price of the coin alone. However, the value of a cryptocurrency is only valid if you consider the existing supply in circulation.

If you want to buy Bitcoin, don’t focus too much on the current value of the currency. Instead, you may want to consider total market capitalization.

3. Invest in Bitcion instead of Bitcoin mining

The Bitcoin mining industry is growing in popularity at a rapid pace. At first, it wasn’t difficult to earn bitcoins by solving cryptographic puzzles. Later it was possible to mine Bitcoin only in special data centers.

These centers are full of machines designed for Bitcoin mining. Today, if you want to build a mining center at home, you may have to spend millions. So it is better to invest in bitcoins.

4. Diversify your investments

New Bitcoin investors tend to have a short-lived passion for cryptocurrencies. In fact, with Bitcoin you can diversify your investment risk. If you invest smartly in cryptocurrencies, you can enjoy the same rewards as investing in Forex. All you need to do is put together a solid risk management strategy.

In other words, you may not want to put all your eggs in one basket. So, you may want to invest in other cryptocurrencies as well.

5. Set Clear Targets

Since Bitcoin is a new market, you may find it difficult to determine the right time to trade your Bitcoins. The value of Bitcoin is volatile, which means you should have clear goals in terms of profit and loss.

You may not want to make the mistake of making investment decisions based on your emotions. Smart moves can help you minimize losses and make good progress.

In short, if you are going to invest in Bitcoin, we suggest you follow the advice given in this article. This will help you make wise decisions and be on the safe side at the same time. Just make sure you avoid common mistakes when running this business.

Cryptocurrencies and taxation challenges

Cryptocurrencies have been in the news recently as tax authorities believe they can be used for money laundering and tax evasion. Even the Supreme Court appointed Special Investigation Team on Black Money recommended that trade in such currency should not be encouraged. While China is said to have banned some of its biggest bitcoin trading operators, countries like the US and Canada have laws restricting trading in cryptocurrency stocks.

What is cryptocurrency?

Cryptocurrency, as the name suggests, uses encrypted codes to make a transaction. These codes are recognized by other computers in the user community. Instead of using paper money, the online ledger is updated with regular bookkeeping entries. The buyer’s account is debited and the seller’s account is credited in that currency.

How are cryptocurrency transactions made?

When a transaction is initiated by one user, her computer sends a public code or public key that interacts with the private code of the person receiving the currency. If the recipient accepts the transaction, the initiating computer attaches a piece of code to a block of several such encrypted codes that is known to every user in the network. Special users called ‘Miners’ can attach additional code to a publicly shared block by solving a cryptographic puzzle and earn more cryptocurrency in the process. Once a miner confirms a transaction, the record in the block cannot be changed or deleted.

BitCoin, for example, can also be used on mobile devices to make purchases. All you have to do is let the receiver scan the QR code from the app on your smartphone or face it face to face using near field communication (NFC). Note that this is very similar to regular online wallets like PayTM or MobiQuick.

Die-hard users swear by BitCoin for its decentralized nature, international acceptance, anonymity, transaction durability, and data security. Unlike paper currency, no central bank controls inflationary pressures on cryptocurrencies. Transaction ledgers are stored in a Peer-to-Peer network. This means that every computer chip in its computing power and copies of databases are stored on every such node in the network. Banks, on the other hand, store transaction data in central repositories that are in the hands of private individuals hired by the firm.

How can cryptocurrency be used for money laundering?

The very fact that there is no control over cryptocurrency transactions by central banks or tax authorities means that transactions cannot always be traced to a specific person. This means that we do not know whether the transactor acquired the store of value legally or not. The recipient store of the transaction is similarly suspicious because no one can tell what compensation was given for the currency received.

What does Indian law say about such virtual currencies?

Virtual currencies or cryptocurrencies are usually considered pieces of software and are therefore classified as goods under the Sale of Goods Act of 1930.

Because they are good, they would be subject to indirect taxes on their sale or purchase, as well as VAT on services provided by miners.

There is still considerable confusion over whether cryptocurrencies are valid as currency in India, and the RBI, which has authority over clearing and payment systems and pre-paid negotiable instruments, has certainly not approved buying and selling through this medium of exchange.

Any cryptocurrency received by a resident of India would therefore be governed by the Foreign Exchange Management Act, 1999 as an import of goods into this country.

India has allowed bitcoin trading on special exchanges with built-in safeguards for tax evasion or money laundering activities and enforcement of Know Your Customer norms. These exchanges include Zebpay, Unocoin and Coinsecure.

Those who invest in bitcoins, for example, are subject to tax on dividends received.

Capital gains from the sale of securities that include virtual currencies are also subject to taxation as income and consequent filing of IT returns.

If your investments in this currency are large, it is better to get help from a personalized tax service. Online platforms have made the tax compliance process much easier.

What are the cryptocurrency abuses you need to be aware of?

Cryptocurrency scams have rocked the financial industry since the day bitcoin became famous and unfortunately, it is estimated that more than a billion dollars have been lost to such scams. At the same time, millions are lost every year due to such scams. We expect that you will not fall for such scams and therefore we bring you this very article that will help you in one way or another to learn about the large number of crypto scams that exist.

These are the types of cryptocurrency scams –

Gift scams

It is incredibly unlikely that anyone has a legitimate sweepstakes that will require you to send your own money first. You have to be careful with these types of text messages on social media. They can be derived from accounts that might look identical to the types the individual knows and likes, but this will be part of the trick. As for the many responses thanking said accounts for their special generosity – they are just fake company accounts or bots involved in giving scams.

Fake mobile apps

Once a user installs a malicious application, everything may appear to work as intended. On the other hand, these programs are specifically made to steal your cryptocurrencies. Within the crypto room, there have been many cases where users have downloaded malicious apps whose developers have impersonated a major crypto company.

In such a scenario, when a user is presented with a funding agreement, usually a wallet, or to receive payments, they actually send cash to an address owned by the fraudster. As for the exchange rate, once the cash is transferred, there are no undo buttons.

Pyramids and Ponzi schemes

In a Ponzi scheme, you might notice an investment opportunity with some profit, which is the first red flag. Generally, you will see this particular scheme disguised as a portfolio management service. In reality, there is no magic formula here in the office, the “returns” that are received are just the money of other investors.

In the new pyramid scheme, individuals need a bit more work. At the top usually, the pyramid will be the coordinator. They will recruit a certain number of men and women to work at a certain level below these people, and each of the people, male and female, will get their own amount of people, and so on. As a result, you end up with a substantial structure that grows exponentially and results in new levels being created and masked into a pyramid.

Cryptocurrency for beginners

In the first days of its launch in 2009, several thousand bitcoins were used to buy pizza. Since then, the cryptocurrency’s meteoric rise to US$65,000 in April 2021, after a stunning drop of around 70 percent to around US$6,000 in mid-2018, has boggled the minds of many people – crypto investors, traders, or simply the curious. missed the boat.

How it all began

Note that dissatisfaction with the current financial system led to the development of digital currency. The development of this cryptocurrency is based on the blockchain technology of Satoshi Nakamoto, a pseudonym apparently used by a developer or group of developers.

Despite many opinions predicting the death of cryptocurrency, Bitcoin’s performance has inspired many other digital currencies, especially in recent years. The success with crowdfunding brought on by blockchain fever has also attracted those to scam the unsuspecting public and this has caught the attention of regulators.

Outside of bitcoin

Bitcoin has inspired the launch of many other digital currencies. There are currently more than 1,000 versions of digital coins or tokens. They are not all the same and their values ​​vary widely, as does their liquidity.

Coins, Altcoins and Tokens

Suffice it to say at this point that there are fine differences between coins, altcoins and tokens. Altcoins or alternative coins generally describe other than the pioneer bitcoin, although altcoins like ethereum, litecoin, ripple, dogecoin and dash are considered a ‘mainstream’ category of coins, meaning they are traded on multiple cryptocurrency exchanges.

Coins serve as a currency or store of value, while tokens offer the use of an asset or utility, an example being a supply chain management blockchain service to verify and track wine products from the winery to the consumer.

It’s important to note that low-value tokens or coins offer upside opportunities, but don’t expect the same meteoric increases as bitcoin. Simply put, lesser known tokens are easy to buy but hard to sell.

Before diving into cryptocurrency, start by studying the value proposition and technology considerations, ie. commercial strategies outlined in the white paper that accompanies each Initial Coin Offering or ICO.

For those familiar with stocks and shares, this is no different than an initial public offering or IPO. However, IPOs are issued by companies with tangible assets and business experience. Everything is done in a regulated environment. On the other hand, an ICO is based solely on an idea proposed in a white paper by a company – yet to operate and with no assets – seeking start-up funds.

Unregulated, so buyers beware

‘Can’t regulate the unknown’ probably sums up the digital currency situation. Regulators and regulations are still trying to catch up with the continuously evolving cryptocurrencies. The golden rule in the crypto space is ‘caveat emptor’, let the buyer beware.

Some countries are keeping an open mind by adopting a hands-off policy for cryptocurrencies and blockchain applications, while keeping an eye on outright scams. However, there are regulators in other countries who are more concerned with the disadvantages than the advantages of digital money. Regulators generally understand the need to strike a balance, and some are looking to existing securities laws to try to manage the many types of cryptocurrencies globally.

Digital wallets: the first step

A wallet is necessary to start working with cryptocurrency. Think e-banking, but without the protection of the law in the case of virtual currency, so security is the first and last thought in the crypto space.

Wallets are of digital type. There are two types of wallets.

  • Internet-connected hot wallets that put users at risk of hacking

  • Cold wallets that are not connected to the internet and are considered more secure.

Apart from the two main types of wallets, it should be noted that there are wallets for only one cryptocurrency and others for multiple cryptocurrencies. There is also the option of having a multi-signature wallet, somewhat similar to a joint bank account.

The choice of wallet depends on the user’s preferences, whether the interest is exclusively for bitcoin or ethereum, since each coin has its own wallet, or you can use a third-party wallet that includes security features.

Wallet

A cryptocurrency wallet has a public and private key with personal transaction records. The public key includes a reference to a cryptocurrency account or address, unlike the name needed to receive a check payment.

The public key is available for anyone to see, but transactions are confirmed only after verification and validation based on the consensus mechanism relevant to each cryptocurrency.

A private key can be thought of as a PIN commonly used in e-financial transactions. It follows that the user must never give the private key to anyone and make backup copies of this data that should be stored offline.

It makes sense to have a minimum amount of cryptocurrency in a hot wallet, while a larger amount should be in a cold wallet. Losing your private key is just as good as losing your cryptocurrency! The usual precautions for online financial transactions apply, from having strong passwords to being wary of malware and phishing.

Wallet formats

Different types of wallets are available to suit individual preferences.

  • Third-party hardware wallets that must be purchased. These devices work as a USB device that is considered secure and connected only when needed to the Internet.

  • Web-based wallets provided by, for example, crypto exchanges are considered hot wallets that put users at risk.

  • Desktop or mobile software-based wallets are generally available for free and may be provided by coin issuers or third parties.

  • Paper wallets can be printed with relevant information about the cryptocurrency owned with public and private keys in QR code format. They should be kept in a safe place until required during a crypto transaction, and copies should be made in case of accidents such as water damage or printed data fading over time.

Crypto exchanges and markets

Crypto exchanges are trading platforms for those interested in virtual currencies. Other options include websites for direct trading between buyers and sellers, as well as brokers where there is no ‘market’ price but is based on a compromise between the parties to the transaction.

So there are many crypto exchanges located in different countries but with different standards of security practices and infrastructure. They range from those that allow anonymous registration that only requires an email to open an account and start trading. However, there are others that require users to comply with international identity verification, known as Know-Your-Customer, and anti-money laundering (AML) measures.

The choice of crypto exchange depends on the user’s preferences, but anonymous ones may have restrictions on the volume of trading allowed or may be subject to sudden new regulations in the exchange’s home country. Minimal administrative procedures with anonymous registration allow users to start trading quickly, while going through KYC and AML processes will take more time.

All crypto trades must be properly processed and confirmed which can take anywhere from a few minutes to several hours depending on the coins or tokens being transacted and the volume of the trade. Scalability is known to be a problem with cryptocurrencies and developers are working on ways to find a solution.

Cryptocurrency exchanges are in two categories.

  • Fiat-cryptocurrency Such exchanges allow the purchase of fiat-cryptocurrency through direct transfers from bank or credit and debit cards, or through ATMs in some countries.

  • Cryptocurrencies only. There are crypto-only cryptocurrencies, meaning that clients must already own a cryptocurrency – such as bitcoin or ethereum – to ‘exchange’ for other coins or tokens, based on the market rate

Fees are charged to facilitate the buying and selling of cryptocurrencies. Users should do their research to be satisfied with the infrastructure and security measures, as well as to determine what fees they are comfortable with as different rates are charged by different exchanges.

Don’t expect a regular market price for the same cryptocurrency with difference exchanges It may be worth spending time researching the best price for the coins and tokens you are interested in.

Financial transactions online carry risks, and users should consider warnings such as two-factor authentication or 2-FA, stay up-to-date with the latest security measures, and be aware of phishing scams. One golden rule for identity theft is to not click on provided links, no matter how authentic the message or email is.

The importance of cryptocurrency as a medium of financial transaction

These days, the global economy is just moving towards a fully digital eco-system and therefore everything starting from money transfer to investment is going paperless. And cryptocurrency is the latest and most capable addition to the field of digital payments. Cryptocurrency is basically a medium of exchange like normal currencies like USD, but it is mainly designed to exchange digital information. And here are some of the reasons why cryptocurrency has become so popular in the recent past.

  1. Property Transfers: Financial analysts often define cryptocurrency as a method that can be used at some level to implement and enforce bilateral contracts for goods such as real estate and cars. In addition, the cryptocurrency ecosystem is also used to facilitate some special transfer methods.
  2. Transactions: In conventional business methods, legal representatives, agents and brokers can add some big costs and complicate even a simple transaction enough. In addition, there are brokerage fees, commissions, paperwork and some other special conditions that may also apply. Cryptocurrency transactions, on the other hand, are one-to-one transactions that generally take place on some peer-to-peer networking structure. This results in better clarity in setting up audit trails, greater accountability and less confusion around payments.
  3. Transaction fees: Transaction fees often take a substantial bite out of a person’s assets, especially if the person makes a ton of financial transactions each month. But as data miners perform number crunching which mostly generates different types of cryptocurrencies, they are compensated by the involved network and hence transaction fees never apply here. However, you may have to pay a certain amount of external fees for engaging the services of any third-party management service in order to maintain the cryptocurrency wallet.
  4. A more confidential transaction method: Under credit/cash systems, the complete transaction history can become a reference document for the involved credit agency or bank, each time a transaction is made. At the simplest level, this may involve checking your account balance to ensure adequate funds are available. But in the case of cryptocurrencies, each transaction between two parties is considered a single exchange where they can agree and negotiate terms. In addition, the exchange of information here is done according to the “push” principle, where exactly what the recipient wants can be sent. This thing fully protects the privacy of financial history as well as the threat of identity or account theft.
  5. Easier trading system globally: Although cryptocurrencies are generally recognized as legal tender at national levels, they are not subject to interest rates, exchange rates, transaction costs or any other levies imposed by any particular country. And by using the peer-to-peer method of blockchain technology, transactions and cross-border transactions can be done without any complications.
  6. Greater access to credit: The Internet and digital data transmission are media that facilitate the exchange of cryptocurrencies. Therefore, these services are available to people with knowledge of cryptocurrency networks, a working data connection and immediate access to relevant portals and websites. The cryptocurrency ecosystem is capable of making transaction processing and fund transfer available to all willing people once the necessary infrastructure is in place.
  7. Strong security: Once cryptocurrency transfers are authorized, these cannot be reversed as “chargeback” transactions from different credit card companies. This can be a fraud protection that requires separate agreements between sellers and buyers for refunds from return policies or transaction errors.
  8. adaptability: There are about 1200 types of altcoins or cryptocurrencies in the world today. Some of them are a little transient, but an adequate ratio is used for specific cases, which depict the flexibility of this phenomenon.