Crypto currency trading If you are not a part of this you are losing out. However be warned that it is very addictive and exciting
Is Crypto currency just a big scam
The answer to this is, no it is not, and it is very much a part of our future.
Furthermore if you think you are too late then think again, the game is just the beginning of a long road ahead.
When I started my Crypto journey a couple of years back (2019) I considered Bitcoin overvalued at $4000 and Ethereum a bit expensive at $190 so I took a sit and watch position.
My oh my was I wrong. I should be retired now however the day is but young.
When doing my research for this article I still read supposedly intelligent people doubting the future. There is so much misinformation on the whole Crypto world that I am staggered that anyone can get good information to act on.
Therefore let me try and clear up a few things for you in simple English that anyone can understand
What has Blockchain got to do with it
This is where it all started. Way back in the dark ages of 1991 when a fictional character developed a new way of transacting documents and cash.
Blockchain has the potential to grow to be a bedrock of the worldwide record-keeping systems, but was launched just 10 years ago. It was created by the unknown persons behind the online cash currency bitcoin, under the pseudonym of Satoshi Nakamoto.
Wikipedia
Blockchain can be used for the transaction of any documents or money in a very secure way. Examples could be real estate settlements, legal documents, shipping ledgers etc.
Security is primary however instant transactions also became very popular.
Bitcoin jumped on this idea of using the Blockchain to establish a secure platform for cash
transactions and now over 5000 other companies have done the same thing.
Therefore Bitcoin and most of the others simply use Blockchain as a transaction vehicle..
Blockchain provides a level of trust in transactions not before seen.
Then they rattle on about Mining currency
If you want to go mining then read no further, it is for those wanting to play a game and hope to earn currency along the way.
You need special software, lots of computer power and a nerd based outlook on computer programming.
The alternative is to buy currencies on the market, a whole lot easier for us simple folk.
So what do I buy when I pay for a currency
First of all you buy coins or tokens depending on the offer. Coins can be more generally spent than tokens that are like casino chips and only spent in certain businesses.
These are generally backed by some cash however the value of a coin is really based on perception of value.
Therefore trading in Crypto currencies can be volatile. Some big gains and some losses will pave the way.
Show me the value in Cryptos and what does the future hold
Today ( April -21) saw the launch of a brand new currency, it was floated on the stock exchange without a value posted.
Coinbase had an estimated value of about us$250 but hit the market at US$381 before falling slightly to US$328. The first target that they hope to achieve, some say, is the us$1000 figure.
This is important because it really reflects the value placed on the market.
Yes it blew many away and the doubters stayed home and the buyers went big.
They claim 56 million users in 100 countries and assets over 223 billion.
Revenues are over a billion a year and income soaring so it has a long way to go.
Next is billionaire Elon Musk who through a lazy 1.5 billion dollars into bitcoin. He sees the future from the inside
Elon Musk's car firm Tesla has said it bought about $1.5bn (£1.1bn) of the cryptocurrency Bitcoin in January and expects to start accepting it as payment in future.
The news caused the price of Bitcoin to jump 17% to $44,220, a record high.
Tesla said it was trying to maximise returns on cash that is not being used in day-to-day running of the company.
BBC News
PS todays price is $66,000 a handy profit
There are many others that see future potential not just a day to day ride.
How do you get Cryptos when you don't have a spare $66,000 to buy a single bitcoin
This is easy because you just buy a small part of a currency and use that as a value for purchasing. Consider a one hundred dollar note in one cent pieces.
Using a broker is easy. You must follow really strict identification rules however when you are up and going it is really just day trading, buy and sell as you wish.
Is the Crypto market safe to invest in
Hell no, not for serious investors saving for retirement. The normal stock market is built on fundamentals that are easy to follow. You can readily gather a heap of knowledge about any stock and make an informed decision. Many of the top stocks are backed by large funds that are transparent in what they do.
The crypto market is more about understanding herd mentality. The millions of small investors can manipulate a market and change the pricing fundamentals overnight.
Therefore it is more akin to gambling than investing and that is why it is so much fun.
The Crypto market is anticipating what people will do next.
However it does have a lot of other values as well. It can be used to buy products, transact negotiations, gather new business, back green energy or over 5000 other ways to market.
Imagine buying 1000 bitcoins back in 2010 at $0.08 cents each or $80, Now worth around $66 million, that my friends is Crypto trading.
A bit of history from Wikipedia
KEY TAKEAWAYS
- Since it was first introduced to the world more than a decade ago, Bitcoin has had a choppy and volatile trading history.
- Bitcoin's price has undergone multiple bubbles in a short history.
- The factors influencing its price have changed with Bitcoin's evolution as an asset class.
- The narrative surrounding Bitcoin has shifted from being a currency to a store of value as a hedge against inflation and uncertainty around the U.S. dollar's future purchasing power.
Crypto currency trading and the future
What Will Bitcoin Be Worth in 2030?
Predictions for the future value of bitcoin vary based on who makes the estimate. According to Jeremy Liew, a partner at Lightspeed Venture Partners, Bitcoin could reach $500,000 per coin in 2030. According to the June 2020 Crypto Research Report, the cryptocurrency could go over $397,000 by 2030
When people forecast a result they are simply guessing the future
Times are changing as Crypto goes mainstream
Traditionally the market for products was around a product and a following with little regulation.
KEY TAKEAWAYS
- Entrepreneurs looking to launch a new cryptocurrency can do it through an initial coin offering (ICO), a variation on an initial public offering (IPO).
- There is little to no government regulation of ICOs currently, and anyone can launch one, provided they get the technology put in place.
- How? Create a white paper or other document outlining the system, make a website or app describing how it works, and seek funding.
- Advertising is key since there are so many competing coins on the market, so figuring out how to appeal to the target demo is crucial.
- Not looking to launch a new coin, but rather, to invest in a new coin? Make sure to do thorough research, as there are a number of scams.
This all changed on the 14 April 2021 when the latest product Coinbase Global Inc (Coin) was launched as a public offering on the New York Stock Exchange.
This was a bit different from a traditional launch in that the shares were issued on trading and developed a price of their own. Originally forecast to be about $250 a share they rose to near $400 on day one before settling back to $320. If you work on traditional share market valuations this does not stack up however the rules have changed. It will be interesting reading six months from now. I am very bullish but that is my personal point based on nothing and is not a recommendation.
Crypto currency trading and protection
Use Stop Loss tools to manage your trading
Because the crypto market is extremely volatile investors can protect their investments against wild fluctuations.
Stop loss is a trading tool designed to limit the maximum loss of a trade by automatically liquidating assets once the market price reaches a specified value. There are multiple types of stop loss that can be used in different scenarios depending on the crypto market situation.
trade Santa
Basically you can set pricing values on your stock holding. If the market goes down and reaches your pre-set value your holding is automatically sold. The market is 24-7 so you can not be there to watch all the time.
The same can go for an increase, if the stock rises to a set point it will also automatically sell.
This control limits your investment from the king hits that volatility may bring.
Having a balance of currencies may also provide a further safeguard against loss. However the market does tend to emulate Bitcoin and Ethereum in activity.
Crypto currency is used as a buying exchange
Many currencies like Bitcoin can be used to buy products from retail shops and markets.
Bitcoin can buy food, travel, jewelery, games, coffee and just about any product on the market.
However the growth in purchasing has not been as popular as previously thought. The value is more about investing.
Crypto currency trading in Australia:
In fact in Australia one organisation Qoin has gone all out to establish this relationship. Having a base of resellers that used a barter transaction system over several past decades the move to a coin was a natural growth. It was however difficult to move Barter tokens to cash where as Quin provides a limited ability to achieve this.
I am a recent Investor in Qoin because it targets customers in my market demographic
Crypto currency trading and the big boys
Are the major organisations involved in Bitcoin
One of the story's that change perception is that Of JP Morgan.
JPMorgan Chase & Co. is an American investment bank and financial services holding company headquartered in New York City. JPMorgan Chase is incorporated in Delaware. As a “Bulge Bracket” bank, it is a major provider of various investment banking and financial services. Wikipedia
Wiki
In the early days of Online currency JP Morgan slammed the theory and debunked the whole idea of Block Chain. They were one of the harshest critics.
Now days they have there own currency and transact billion dollar deals through a Block Chain type deal. This was a classic 180 turn around.
So if JB did a turn around who else joined the game:
- Amazon
- Citibank
- IBM
- Intel
- Mastercard
- Samsung
- Siemens
- Visa
- Walmart
The stable is pretty healthy however they may just be hedging their bets. so let's look at those that put the assets on the line.
| Greyscale Bitcoin trust | Just a lousy $30 billion in Feb 21 |
| Coinshare growth | $3.2 billion |
| Ruffer Investment co (UK) | $2 billion |
| Elon Musk at Tesla | $1.5 billion |
They are sizable investments in a market that can change 30% in a day however they do reflect trust in the product for long term gain.
It's now time to play now Trust has been established
Where can you buy currency and get help
There are many brokers world wide with varying degrees of expertise.
I did my homework and looked for someone that was:
| Established in the market | Good recent history |
| Provided trading advise | They are experienced |
| Had tools to support | Stop loss |
| Advisers | Follow good investors |
After pioneering Bitcoin trading in 2013 via CFDs, eToro expanded its cryptocurrency offering, enabling clients to trade and invest in Ethereum, XRP (by Ripple Labs), Litecoin, and other popular cryptocurrencies.
EToro was established in 2007
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets. Create a portfolio with cryptocurrencies, stocks, commodities, ETFs and more.
My Crypto closing
Crypto currency trading and my reflection
It is interesting that as I write this piece the market has had reasonable correction downward. In fact Bitcoin is trading at about US$55,000 quite a big fall from the recent $66,000.
However I am not panicking. This is not a sprint to the finish and provided you have value investments tomorrow will be another day.
Finally you certainly need your big girl- boy shoes because it is really dynamic on a continual basis.
However investments can be in the hundreds as you learn the game and improve your skills.
No better time than now.
Crypto currency trading ( Can the average person make money) by Peter Hanley
