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Crypto Trading

In 2008, the world was taken by surprise – not only by the Financial Crisis, but also by the fact that it was the year in which Bitcoin, and along with it, blockchain, was created. While Bitcoin is perceived as the power player in the crypto world, there are new coins that have emerged and have shaped the crypto industry as well. There are over 2,000 cryptocurrencies in existence today and new ones are launched every day.

The crypto market cap is hovering at around $214 billion, with Bitcoin at $150 billion, accounting for approximately 70% of the total capitalization. The top 20 cryptocurrencies represent 90% of the total crypto market cap – clearly, it’s an uneven field.

How to Invest in Bitcoin long-term

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 Well eToro have looked at this and come up with a solution that is for the longer-term Bitcoin investor. Here we shall look at how you can set up an eToro account that allows you to buy and own the REAL asset, that is Bitcoin, in an easy and affordable way for the long-term.…

Bitcoin

How to buy Bitcoin on eToro

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Why use eToro? Founded in 2007, eToro is a reputable broker with well over a decade of experience and offers cryptocurrency trading as well as general forex trading, CFDs and trading in other financial instruments. The eToro exchange has its headquarters in Israel and is regulated in the UK by the Financial Conduct Authority (FCA).…

Bitcoin ETF Strategies

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Bitcoin ETF – Basics Bitcoin is extremely volatile, and the cryptocurrency market is not under any uniform strict regulation as of now. This can prevent new investors from entering the market. However, when you opt to invest in Bitcoin-related ETFs, you can easily take part in a regulated environment. It is essential that you first…

How to Buy Bitcoin in the UK

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Bitcoin – Essence Bitcoin is the world’s first decentralized digital currency, invented by an anonymous software developer called Satoshi Nakamoto. It was first published as open-source software in 2009. Working as a peer-to-peer network, Bitcoin allows its users to send payments without any supervision from central banks or organizations. That’s also the Bitcoin creator’s goal:…

Ripple – How to buy?

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Ripple – Where to Sell / Buy in UK? When it comes to Ripple – where to sell / buy in UK, while some exchanges permit trading straight away, others insist on a KYC. The latter is preferable, even though it is time consuming because increased security is very important while trading Ripple. Most cryptocurrency…

Bitcoin

Bitcoin for Beginners

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Bitcoin – Essence Bitcoin is a well-known and frequently traded cryptocurrency (also referred to as a digital currency or virtual currency). It can be bought, sold and traded against other currencies on online exchanges and through online brokers who may specialise in cryptocurrencies or provide a wide range of other financial instruments as well. Bitcoin can…

LITECOIN – LONG-TERM PRICE PREDICTION

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Litecoin Price Performance: A Historical Overview In order for the investor to understand the potential price performance of Litecoin, it is useful to first look at the recent performance of the coin. (At the time of this writing, Litecoin is trading at $55 per coin). Created in 2011, Litecoin traded at just $0.04 per coin…

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Ethereum for Beginners

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What is Ethereum? Ethereum is an open-ended decentralised software platform and also a programming language. It is the largest and most established platform of its kind, running a peer-to-peer network of virtual machines and allowing developers to build and publish distributed applications. Ethereum runs via its own decentralised public blockchain, therefore using similar technology to…

What is Ripple & How Does It Work?

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Essence and History of Ripple Ripple is a real-time gross settlement system (RTGS) and currency exchange, which is managed by a network of servers that validate and compare all transactions. Unlike bitcoin which uses a proof-of-work model that requires high computing power and energy, the Ripple platform has very low energy needs. The servers that…

What is Bitcoin & How Does It Work?

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Bitcoin – Brief History and Essence In the summer of 2008, the creator of Bitcoin, Satoshi Nakamoto, registered the public domain bitcoin.org and posted the open source code on SourceForge in January 2009. The white paper of Bitcoin explained what it was and how it can serve society. The very first block on the blockchain…

How to Buy Bitcoin Cash

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Bitcoin Cash – Essence The main reason for the creation of Bitcoin Cash was because a lot of people were not happy with the segregated witness (SegWit) feature that was placed into the original Bitcoin code back in the middle of 2017. As a result, Bitcoin Cash (BCH) was developed and became the first hard…

What is Bitcoin Cash & How Does It Work in 2019

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Bitcoin Cash – Introduction Bitcoin Cash was created in August 2017 following a hard fork on Bitcoin. There was a lot of controversy regarding the fork. The main reason for the split was that a large part of the community was not happy about the segregated witness feature that was placed into the original Bitcoin…

How to buy Litecoin in the UK?

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How is Litecoin a good investment? Relatively cheap: At the time of writing, one Litecoin was only valued at $58, compared to $8,500 for each Bitcoin. As such, the barrier of entry to Litecoin investment is much more affordable. ASIC resistance: makes it possible for GPU and CPU miners to mine the cryptocurrency. On a…

What is Ethereum & How Does It Work

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The (De)centralized Internet The internet, as we know it today, is a centralized platform based on the server-client model. This means that all data such as websites, videos, music, articles, software and even passwords are stored on servers which are usually operated by third-party companies. Naturally, this centralized concept doesn’t reflect the idea of a…

Bitcoin vs. Bitcoin Cash

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Bitcoin – Essence Bitcoin is the very first cryptocurrency to be created. It also introduced blockchain to the world. Since 2009, when the whitepaper was first released, it has gone through massive rises and falls in price. The cryptocurrency market is well-known for its volatility and this has led to many people making and losing…

Ripple vs Ethereum

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Essence and History of Ripple Ripple is currently the third largest cryptocurrency by market cap ($10.1bn, according to Coinmarketcap). Ripple can actually refer to a number of things. First, many confuse Ripple (the company) with Ripple (XRP, the cryptocurrency). These are two different creations. Ripple is a real-time gross settlement system or RTGS, a remittance…

Ethereum Price Predictions 2019 – 2022

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Ethereum’s price depends on three things. Firstly, sentiment around crypto markets in general will play a major role in determining how things play out. Secondly, sentiment regarding the other similar utility tokens will play a role. Finally, there are several factors unique to Ethereum, including scalability, that will drive the price. After a strong run,…

Bitcoin vs. Ethereum

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What is Bitcoin? Bitcoin is the first cryptocurrency to emerge in 2009. It is a medium of exchange that is encrypted and nearly impossible to trace. Transactions made through this coin are anonymous except for the origin and destination addresses for each operation. Bitcoin was created by Satoshi Nakamoto and launched in 2009; while the…

What is Dash Cryptocurrency?

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Dash – Essence Dash is a privacy coin. That means the address of the sender and a receiver in a Dash transaction can be masked. It is more fully described as an open sourced, privacy-centric digital currency with instant transactions. In other words, while the blockchain is public and open source, its primary concern is…

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Bitcoin Cash Price Predictions

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Background Bitcoin Cash was created through a hard fork from Bitcoin in August 2017. During this time, the cryptocurrency market was gathering speed and the industry experienced an unprecedented boom in 2017. However, in January 2018, the Great Crypto Crash occurred, during which alt coins and Bitcoin lost 80% of their value in under 30…

What is Litecoin?

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What is Litecoin? Litecoin, as we mentioned, is a peer-to-peer cryptocurrency and an open-source software project released under the MIT/X11 license. The coin was created by Mr. Charlie Lee, who previously worked at Google and had the idea of creating a type of cryptocurrency similar to Bitcoin but that was lighter and with more straightforward…

Bitcoin Predictions 2019

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Short History of Bitcoin In order to better understand the future performance of Bitcoin, it is important to look at the cryptocurrency’s history and the goal with which it was created. On October 31st 2008, Satoshi Nakamoto published the white paper for Bitcoin. Bitcoin is considered the first digital currency and the largest one by…

How To Buy Ethereum In the UK

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Why should you buy Ethereum? Ethereum has been one of the best cryptocurrency investments so far, and its consolidation as the second most important digital currency in the market has been very clear. The functionalities and useful features of Ethereum exceed Bitcoin. Its network of smart contracts allows virtually any application to be built and,…

bitcoin

Bitcoin Futures – Everything you need to know

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Cryptocurrencies – essence and mechanics The origin of cryptocurrencies can be traced back to 2008 when Bitcoin, the first cryptocurrency, emerged. Since then, cryptocurrencies have exploded and now there are more than 2,000 in existence. The top 10 cryptocurrencies by market cap at the time of this writing are: Bitcoin, Ethereum, Ripple, Thether, Bitcoin Cash,…

Despite the major pullback in 2018, however, cryptocurrencies are on the upswing again. Of all the markets, crypto may be the riskiest, but if you’re willing to put in the time and research, the market is ripe for winning trades.

Cryptocurrency – Essence

Cryptocurrencies are digital currencies – they do not exist in fiat form and have no intrinsic value. The fact that cryptocurrencies have no intrinsic value should not scare investors, as the fiat currencies in circulation around the globe aren’t backed by physical commodities, either. The ‘crypto’ in cryptocurrency refers to the fact that it’s based on cryptography. Blockchain, the technology that enables cryptocurrency, uses a sophisticated form of cryptography.

Blockchain is a list of records, also called blocks, which are interlinked and verified using cryptography. The technology of blockchain eliminates the need for a third party to verify information or some data between two parties. In a sense, a single person cannot own the information given. Instead, a community of users controls the list of records. So, the primary new feature that blockchain represents is the elimination of the so-called “trusted party” to verify and facilitate the digital blocks of information recorded and amended on the blockchain.

Top 3 Crypto Broker Comparison

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According to Wikipedia, the very first cryptography work was developed by Stuart Haber and W. Scott Stornetta in 1991. After that, the Merkle trees were added to the cryptographic design by Bayer, Stornetta and Haber in 1992. What the Merkle trees did was enable the storage of more than one document on one single block.

Then, in 2008, a person, or a group of people, called Satoshi Nakamoto, invented the technology of blockchain. It is not really clear who is Satoshi Nakamoto and why exactly he came with the idea and when he developed it. According to some sources, Satoshi was prompted to come up with an innovative solution for the “regular” people who were tired of the traditional banking services and the clashes they brought to the world. The Financial Crisis of 2008 is cited as one of the top reasons why Nakamoto started developing blockchain and eventually, Bitcoin in 2009.

The largest cryptocurrency by market capitalization, Bitcoin is built on the technology of blockchain. Bitcoin became so popular because it is the first cryptocurrency to have sold the so-called double spending problem. Double-spending occurs in digital cash transactions each time a single digital token is spent more than one time. According to sources, this is a problem since all digital files on the digital tokens can be falsified and mishandled.

Nakamoto used the words “block” and “chain” separately in his first paper, but later the word became popular as simply “blockchain”. The blockchain technology developed after 2014 is known as Blockchain 2.0. This new, more sophisticated version of blockchain, allows users and the community to build better and “smarter” smart contracts around the world. The underlying idea of blockchain and what is rumored to have inspired Satoshi Nakamoto to create the technology is that all people around the globe should have equal and fair access to their information, money and privacy. Essentially, the idea is to potentially change how wealth is distributed among individuals”.

Cryptocurrency Trading

According to Coindesk, there are three major reasons why blockchain works as a technology, and hence, why bitcoin is so successful. The three features are: private key cryptography, the P2P network and the program itself (the protocol of blockchain). So, in a sense, blockchain provides identity, system of records and a platform. While it certainly has some limitations, blockchain has progressed to disrupt multiple industries since its creation in 2009 by Nakamoto.   Traders hesitant to jump right into cryptocurrencies can still profit off blockchain technology with a lower level of risk.

Key differences between cryptocurrency and conventional currencies:

  • Cryptocurrencies have no physical form – they are entirely digital.
  • Cryptocurrencies are anonymous – when you use your bank account (debit card, credit card, checking or savings account), the vendor gets your personal information
  • Cryptocurrencies exist outside the reach of the legal system and financial regulators – they can’t be frozen or garnished by government agencies, although regulatory changes are currently under way
  • Cryptocurrencies aren’t backed by a central authority – traditional currencies are backed by central governments and banks
  • Crypto exchanges are relatively unregulated – Forex and other markets are heavily regulated.

Brief history of cryptocurrencies

1998 – 2008   Two proto cryptocurrencies, B-Money and Bitgold, were under development, but never formally launched.

2008   Someone writing under the pseudonym Mr. Nakamoto published a paper about a peer-to-peer digital cash system dubbed ‘Bitcoin’ to a cryptography forum.

2009    The Bitcoin software was made publicly available and the first Bitcoins were mined.

2010    The first Bitcoin transaction was recorded. Someone traded 10,000 Bitcoins for two pizzas. Those same 10,000 Bitcoins would be worth about $80 million today. The first cryptocurrency exchange, bitcoinmarket.com, was launched, and ultimately failed.

2011    The first Bitcoin alternatives emerged, Namecoin and Litecoin among them. Bitcoin reached parity with the USD.

2013    The first Bitcoin crash occurs; the value of one Bitcoin plummeted from $1,000 to less than $300. It would be years before it reached $1,000 again. Mt. Gox, the largest crypto exchange, launched – it would ultimately handle over 70% of all Bitcoin transactions.

2014    Mt. Gox inexplicably goes offline, resulting in the theft of 850,000 Bitcoins that were never recovered.

2016    Ethereum, the first legitimate Bitcoin competitor, was launched in the world’s first ICO.

2017    Bitcoin’s price breaks $10,000, and then reaches up to $20,000 per coin in December.

2018    The year of the Great Crypto Crash – cryptocurrencies lost 80% of their market capitalization.

2019    All but four of the top 20 cryptocurrencies have recovered from the crash and are currently trading in the green.

Crypto Broker Highlights

Key cryptocurrency facts

  1. Cryptocurrencies are extremely volatile. Bitcoin, the largest crypto by market cap, gained over 3,300% in a single year. Between 2010 and 2017, Bitcoin went from $0.01 to over $20,000 per token. On the other hand, it has had four corrections of over 50% in a five-year period – by comparison, the S&P has only had three 50% corrections in almost 100 years.
  2. Cryptocurrencies have no underlying value. As they aren’t backed by governments and have no tangible fundamental backing, it’s extremely difficult, if not impossible, to assign cryptocurrencies a realistic value.
  3. There’s a huge interrelated market. Blockchain, for one, is booming due in part to the cryptocurrency market. Other industries, such as graphics card manufacturers, are also seeing double-digit growth due to the growth in ‘miners’, or people who process crypto transactions.
  4. The barrier to entry is low. Blockchain makes it possible for anyone with a team of coders and a little seed capital to bring a new crypto coin to market. That’s why there are over 2,000 cryptocurrencies with up to 100 new ones being launched every month.
  5. Institutional money is flooding into crypto. Until 2019, most institutional investors avoided the crypto market, but that’s changing in a big way. With the launch of crypto ETFs and other vehicles, institutional investors are jumping in to profit off the market’s volatility. The effect of institutional money is too new to quantify, but it could drive prices up even more.
  6. Many major financial players are sceptical of cryptocurrency. Even though crypto is gaining traction as a legitimate investment, major players predict the crypto boom won’t end well. Jamie Dimon, CEO of JPMorgan Chase considers Bitcoin a fraud. Warren Buffet has also stated his negative outlook on the future of cryptocurrencies.
  7. Taxes become a problem. Just because cryptocurrencies are basically unregulated, they’re still subject to taxation. In the US, capital gains taxes apply, and in most EU countries, an investor will pay either capital gains or income tax on any crypto gains.

What are cryptocurrencies

The future of cryptocurrencies

While Satoshi Nakamoto envisioned a decentralized and very “rosy” future for cryptocurrencies, his predictions are already 11 years old. Blockchain and cryptocurrencies pose a major challenge to central banks and governments.

That said, the crypto market isn’t positioned for smooth sailing. Many coins were ridiculously overvalued in the bull run up to the 2018 correction, and many people jumped out of the market. It became clear that an overall lack of knowledge about cryptocurrency and a generalised herd mentality that hyped the early gains grossly distorted the market. It’s not necessarily a bad thing that traders are taking a step back to learn more about this brave new world.

A few trends for the future are already emerging:

  • ICOs, which fell off precipitously during the crash, are back on the rise. As new coins come to market, it’s even more important for traders to educate themselves before plunging funds into a new coin.
  • Margin trading will ease off after the mega losses in the 2018 crash. At the same time, coins that trade directly with fiat currency will take off.
  • Volatility should level off – which is not to say that crypto volatility will fall in line with traditional markets, only that the years of 3,000% gains are probably over. Traders will still find plenty of price movement to profit from, but investors will likely not see quadruple-digit gains.
  • Lots of coins will disappear. The bear market choked off a lot of new currencies, and the threat of new regulatory regimes will choke off many more. This requires a heightened sense of caution for traders.
  • Security tokens, which are backed by a stake in the company launching the coin sale, are poised to take off. Regulatory uncertainties have hindered the rise of security tokens, but as regulations are clarified, these new coins should gain popularity.

Conclusion:

The Advantage of Asktraders Guides

As we discussed, the cryptocurrency market is fluid, volatile and constantly evolving – it’s nearly impossible for a retail trader to stay on top of trends and trading strategies.

The AskTraders guides and trading community solves the knowledge gap. We maintain a knowledge library of essential crypto basics, as well as topical articles about news and trends in the crypto universe. If you’re ready to trade crypto – or just want to know more – it’s a one-stop-shop for up-to-the-minute information and analysis. If you have questions, AskTraders’ guides have the answers.

Come back regularly for current news and insights about cryptocurrencies and proven trading strategies.

Ultimately, cryptocurrencies are an exciting, fast-paced, and completely unpredictable market. It’s ripe for profit in the hands of a knowledgeable trader – it’s no wonder it’s one of the fastest growing markets, even in the face of uncertainties. AskTraders is here to help you decide if crypto is right for you, and how to make your best trades once you’re ready to take the plunge.