Crypto Trading Tips: How to Trade Smart and Not to Lose Control?

Starting crypto trading can be so intimidating. It takes a lot of expertise in this kind of trade. Unlike a normal trade where investors buy and sell at ease, the crypto trader can be said to be rather different. The key here is that it is different but not difficult, especially once you get a guide on how to get along with it. However, worry not because this article will jump-start your crypto trading skills, and you can start trading like an experienced trader without having to scratch your head.

Crypto trading involves the trade of cryptocurrencies. You can trade your cryptocurrencies for an equivalent value of another cryptocurrency, or even better for money.

Why crypto trading is different?

Earlier we said that crypto trading is rather different. Why is crypto trading so different? Crypto trading is different because it’s one of a kind. The exchange of cryptocurrency has just started being embraced recently. About 2 decades ago, crypto trading didn’t exist. The first cryptocurrency was released in 2009 but not so many people were interested. It is just recently that numbers of investors and enthusiasts have been flocking the crypto space.

The volatility in a majority of cryptocurrencies too has contributed to this aspect. Cryptocurrencies’ values change abruptly from time to time and thus giving traders a tough time planning their trade for maximum profit gains.

Steps to getting started in crypto trading

To be successful in crypto trading, there are several steps involved. The following are some steps that will see you start crypto trading at a higher phase.

1. Do research before Trading

With over 30,000 cryptocurrencies at your disposal, you have to perform some research. The research will help you be able to choose a cryptocurrency that is likely to be profitable and one whose value is hard to depreciate. Remember, cryptocurrencies are volatile, which means that their values can either appreciate or depreciate from time to time.

Despite the volatility of the cryptocurrencies, some cryptos like BTC and Ethereum have a minimum range in their value. That means that such cryptos have their values at a given range, even if the value drops they don’t go beyond a certain point.

How to choose a cryptocurrency to invest in?

Choosing a cryptocurrency to invest in can be a task by itself. However, to identify a cryptocurrency to invest in, consider the following.

History of the cryptocurrency value,
This is a key feature when identifying a cryptocurrency to invest in. Cryptocurrencies’ values are volatile and over the years their values change.

A good cryptocurrency has a rise in value over the years and that can be said to be a good sign and its value is promising, which maybe in a few years might be even better.

The value of cryptocurrency is mostly represented in graphs and can be found on the internet. Before you start trading, consider looking at the value of the cryptocurrency you choose.

The future of Cryptocurrency

Do you want to buy and sell your cryptocurrencies, or do you want to day-trade? If the purpose of your trading is long-term, it is wise of you to choose a promising cryptocurrency.

Cryptocurrencies that maybe in the next 5 or more years its value might have tripled or even increased further could be an ideal choice for you. By opting for such crypto, your long-term investment will give you maximum profit when you sell them off.

The Support

Before choosing cryptocurrencies to invest in, it is wise to look at the number of supporters who support them.

Even though there is no connection of the crypto value because of its value the higher the support and the number of believers in the cryptocurrency shows that the crypto is promising. The criteria work when choosing because a failing cryptocurrency will always have low support due to its unreliability.

2. Trading Method

What is the purpose of your trading? Are you into short-term trading or trading for the long term? Identifying your purpose of trade is important. Knowing which trading method suits you is important because it will help you in making decisions and making trading plans that will be effective.

Long-term crypto trading is where you purchase and hold your cryptocurrencies for a while before selling them. The time varies depending on your decision as a trader, you might hold for months or even years. It is up to you to decide. If you decide to go for this method, choose a cryptocurrency that seems to appreciate its value.

On the other hand, short-term trading is trading cryptocurrencies as the price adjusts from time to time. This type of trading requires an active and focused trader. However, this type of trading method might be stressful at some point, but if done well might reap you profits.

3. Choose a cryptocurrency to start trading

Now that you know most about crypto trading, it is time to acquire some cryptocurrencies to get you started in trading. There are many crypto exchanges to choose from. To distinguish them, you have to consider some things before choosing one.

What to consider when choosing a trading platform?

Consider the following to identify a platform that suits you.

Security

Safety is a major issue in cryptocurrency. Since most of your cryptos and transactions will be stored over the internet, you need to look for a safe platform that will ensure the safety of your holdings. Choosing a platform with enhanced security such as Bitcoin Revolution is a good choice.

Cost

Different platforms have different charges on trades. The good thing is that some platforms allow their users to customize their trading fees. The customization of the trading fees gives users an advantage of setting the values that might favor them and ensures that they are not left out during a trade.

Regional cover

Different platforms are supported in different regions of the world. Some are restricted to certain regions, while others are global. Choose a platform that covers the region you are from.

Conclusion

Crypto trading is a trade that requires patience and lots of research. Also, have patience and count on the small profits and the little achievements you make. By doing that as a beginner you get to understand the trade better and all that is for your good because once you understand the trade well, you will be able to make profits and trade professionally

Bitcoin & Blockchain

What is the relation between Bitcoin and Blockchain?

Remember, Blockchain is a technology, and Bitcoin is an implementation of Blockchain. It is just a product built on top of it. Just like Google or Facebook is an implementation of the World Wide Web (www) and networking. There are many more such implementations or applications built using Blockchain like Ethereum, Ripple, Stellar, Stratis, etc. You can view all the transactions taking place in bitcoins all over the world, just by going to this website. It is publicly available. Although you wouldn’t know how to make sense out of the addresses, it is almost impossible to track these addresses if the user has used VPN or proxy servers while making transactions. Otherwise, these can be traced to the user’s IP address.

Also, if you buy bitcoins from a reputed wallet or exchange, the user will be asked to provide their KYC details, so that it is easy to put a face to this address to prevent frauds.

Bitcoin was built to simplify transactions without involving a trusted third party, by bypassing government control of currency. And as we already know by now, it does so by maintaining thousands of ledgers all over the world and making all transactions transparent and public. If A transfer tokens to B and there is no trust relationship between them, then B doesn’t have to worry if he will have the money or not. Similarly, A also doesn’t have to worry if B will deny getting the token even if he got it. Both of them can see it publicly by using their addresses on the Blockchain, whether the transaction was made or not. Similarly, Ethereum is another product built using Blockchain technology. You can go to their website and view all the transactions.

Another groundbreaking product built over Blockchain is Ripple. Ripple’s distributed financial technology enables banks to send real-time international payments across networks. Ripple is a private network, and not everybody can join it. It only provides its services to banks and other financial institutions. It boasts about having more than 80 financial institutions on board with it all over the world as of today. And this includes some widely popular banks.

Now you will wonder why all these banks want to be a part of ripple? International payments for businesses and cross border remittances have always been tricky, and with the government regulations involved on both ends, there are lots of time and money involved. Suppose that you want to send money from India to the USA,. On average, this takes about 6-7 days and quite a fee. The minimum time required to transfer money is 4 hours, and this also comes with bad exchange rates and higher costs. Now, if your bank is using ripple, and the receiver’s bank is also on board with ripple, then this entire process would take not more than 1-2 minutes (depending on the network congestion). Since ripple is private, we can count on the lesser fee and time taken.

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A P2P Network

In a centralized network, there is only one focal point. At the same time, in a decentralized network, there are different nodes or different databases connected to the focal point. In case if the focal point goes down in a centralized system due to any failure, then you need to ensure the availability of this data elsewhere. The 3rd one is a distributed network which is not a peer to peer network, and it is distributed at different ranges, where everybody connects directly to each other. The decentralized network is used in Blockchain. People are connected to each other through one primary node, and then you have different nodes connected to it. By nodes, I am referring to the different computers which are connected to various nodes forming a decentralized network.

The bitcoin is also based on this network, where I will take one point as bitcoin network, connecting to which I will have the synchronized data of that bitcoin network. Now, for example, other people like my friends or family want to connect to this network they don’t need to connect to the Bitcoin node, they can directly connect to me and get all the access to the data. So, in this kind of interconnectivity, there is no central point of failure.

Now let’s explore the server-based network and P2P network. In a server-based network, there is a central server, and all the clients are connected to it. But ina peer to peer network, we remove the server and instead each computer connects to the other by itself, becoming a server and client at the same time. So, it’s basically taking data from one peer and providing data to another peer. Everything on the bitcoin & ethereum network or, for that matter, any Blockchain is saved similarly. For example, if there is a transaction happening in America, it will be visible on the network in Korea, India, and many other countries, which are the nodes hosting this network.

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Blockchain Use Case

Introduction

So now let’s understand the supply chain industry use cases for Blockchain. Records management, supply chain management, invoice and receipt verification, vendor payments, data security in different industries like banking and healthcare are some of the best use cases of the supply chain.

Records Management

Often we face the problem of maintaining critical business records due to the risks associated with data corruption. The best solution for this is setting up a Blockchain-based records management system. In this setting, whenever any Business record is generated, a unique signature is published into the Blockchain. The records are stored in standard media formats like PDF, JPEG, or PNG. The sequence information of these records is stored in the Blockchain and the application. Web applications can easily use the API to verify if the records have been tampered with or not, and also generate an audit trail for the entire module, entire branch, a specific product or anything you want.

One of the most significant benefits of setting up Blockchain-based records management is that no central authority is required for data verification. Human nature is vulnerable, but the technology is not. You can customize the Blockchain in such a way that anyone can read the records, but only a specitic application or person can write the record into the Blockchain, thus making it completely safe and secure.

Healthcare Record Management

Hospitals have a lot ot inventory, including material purchase and asset tracking, which can be executed efficiently with the help of Supply Chain Management. So, in this case, the material purchase will be defined as initialization of the assets into the Blockchain while issuing materials to the particular hospital, branch, or doctor, and it will be transferred to that person’s name or the branch name. After that, once the material has been consumed, it can be deleted and burned from the Blockchain, or it can be transferred to a consumed account. Here all the invoices and receipts are digitally stored and tracked in Blockchain. So, recording data in a same ledger removes the need for reconciliation, reducing the confusion of maintaining the identical copy for everyone.

This benefits the hospital as they can track each material with a fraction of the cost or the current system, as tampering is almost impossible with a Blockchain thus preventing any malicious change in patient records which helps to save a lot or money for the hospitals and no reconcilliation is required as everybody has the same ledger. Since it’s a shared distributed ledger, everyone’s copy gets updated without any glitches in an automated way.

Finance

Capital markets have many isues related to time, middiemen and also a complex process of back office trades. The whole process of capital markets can be taken over by Blockchain where we can create an asset trading platform. The users can then trade over the blockchain platform. We can also deploy smart contracts for the auto triggering of contracts which are to be sold and bought over the blockchain. A real-time reporting history could also be maintained for capital markets. The benefits of using blockchain are that you have increased transaction performance and reduced time span along with a provision of transparency of records over the blockchain. The performance for post-processing trade also improves automatically. This process also removes the repository, so you don’t have to trust a third party to make transactions within the capital markets.