Category Archives: Bitcoin & Cryptocurrencies

Sentimental Analysis for Selecting Cryptos: 8 Essential Factors to Consider

The crypto market sentiment expresses the crowd psychology of everybody who is participating in the development and trading of a cryptocurrency, as reflected by social and trading metrics.

Sentimental analysis is a valuation or appraisal of the collective emotion and attitude of investors, traders, and fans in regard to a particular crypto asset or investment.

The aim of conducting sentimental analysis is to understand how the respective and collective perspectives of individuals impact the market value and price of individual cryptocurrencies; such perspectives don’t always reflect measurable patterns or metrics; instead, they convey the common feeling of a group or groups of individuals.

Conducting sentimental analysis in the cryptocurrency market can give interested individuals deep insight due to the social nature of the crypto industry.

Performing market sentiment analysis requires researching social channels, industry news, transaction alerts, and reading sentiment indicators to gauge current or forthcoming market movements.

It may likely be important to conduct a sentimental analysis after making an essential background check on the prospective cryptocurrency or cryptocurrencies of your choice. The following are some essential factors to consider, check, or assess before selecting your favorite crypto or cryptos:

1. Recent reportage or coverage

The news presented by reporters for newspapers, radio, or television outlets can make someone or something become incredibly popular. The same thing happens to cryptocurrencies.

The same way you may like to conduct a quick online check for something you are potentially interested in purchasing before agreeing to go ahead and purchase it is the same way you may like to consider analyzing what the media says before making a final selection of the crypto you’d eventually invest in.

Crypto companies know how much influence the media has on their cryptos and they pay a ton of money to popular search engines to place them right at the top of search results ranking systems.

To find out what media outlets are saying, you can simply click on the “News” tab of your search engine, and you’d be automatically directed to the “All” tab which includes relevant news, adverts, and general information that are potentially genuine because they aren’t paid ads.

2. Upcoming events

You can search for upcoming crypto events during the early—or even around the later—stages of finding the crypto of your interest: check websites such as www.newsbtc.com/crypto-calendar/ and https://coinmarketcal.com/  to discover cryptos that have announcements and events line up and may likely impact the cryptos in a positive way. It’s up to you to decide whether any crypto is right for your portfolio.

If you’re interested in investing in more than one crypto, then compile your final list of cryptos and check their respective websites to see whether they have blogs that share their upcoming events. Alternatively, you can check out third-party crypto calendars for additional information.

3. Negative press releases

People tend to be attracted to and enjoy reading negative stuff, and they become passionate about it. On the other hand, negative press releases or statements can serve as warning signs for you and all crypto enthusiasts as well. In the financial and crypto worlds, most negative press releases are hot topics and usually make the prices of their interest or assets to plummet.

Contrary to what people think, the exact period when the prices of assets plummet may be the best time to purchase them. Why? Because everyone would likely be dumping the assets at that time. So you can make an inquiry about and invest in such assets when they are down, and rise to the top with them during favorable times in the future.

Advice: if negative press releases are bad and highlight that a crypto is unlikely to recover from a drop-down, then it’s advisable to pass and forget about the crypto.

4. Crypto communities

Many cryptocurrencies depend on the participation or activities of their communities, and most crypto communities have their forums. Their shared or respective voices are worth giving your ears to.

A lot of cryptocurrencies use different websites as channels to communicate with their fans, users, investors, and traders. Examples of sites that have cryptos communities include:

The forums are important to assess because they give an idea about the type of people involved in the cryptocurrency and provide added or needed information about the cryptocurrency itself.

5. Exchanges that carry cryptos

Cryptocurrency exchanges constitute a large part of the whole crypto ecosystem, and good exchanges are often careful when selecting cryptocurrencies for their respective platforms.

You’d want to ensure that a cryptocurrency exchange has a crypto(s) of your choice. One good sign that the crypto you’re interested in is valuable, is when you notice that it’s available on many different exchanges; this implies that the demand for it is high and it could help your investment greatly.

6. Volume traded in a specified time period

Knowing the volume of crypto traded within a specified time period is important because it indicates how easy it would be to buy or sell the cryptocurrency. Higher volumes indicate that it would be easier to trade it off. Websites like www.cryptocompare.com and www.coinmarketcap.com show the number of crypto coins traded in the last 24 hours prior.

You can also find out the exchanges that trades were made on and their respective volumes of trades. Generally speaking, the biggest and most popular crypto coins are often traded the most. So when making a decision to choose a crypto, note that trading volume is an important factor you have to consider.

7. Coin market cap

One of the fastest ways to move ahead during your analysis of cryptocurrencies is to check their position or ranking based on their “market cap” or market capitalization.

A bigger market cap indicates a higher value of the units of a specific cryptocurrency that are up for sale at the moment. Knowledge of the market cap comes in handy when you’d like to choose only one crypto within a particular category of cryptos.

8. Circulating supply

The circulating supply is the number of crypto tokens or coins mined by people or companies; it indicates the number of coins currently available in the market and readily available to the general public.

The circulating supply is important because markets are generally influenced by the principle of “demand and supply”: when assets are in great supply and there aren’t enough people to purchase them, their prices are reduced so they can be sold quickly. The same applies to cryptocurrencies.

Usually, a smaller circulating supply may be more attractive to people who are interested in investing either in the short- or medium-term. Prices of a crypto may rise higher in the future when fewer of its coins are available and there is a higher demand.

On the other hand, a lower circulating supply may indicate something else which could be worrying to investors: lack of popularity! It’s also important to note that in some cases, the circulating supply may not even matter.

For example, in 2017 when the Ripple XRP crypto had a circulation supply of around 40 billion, and Dash had a circulating supply of only 8 million, the price of both (Ripple XRP and Dash cryptos) increased by about 3,900% and 8000%, respectively.

Features of Litecoin

Litecoin originated from the Bitcoin hard fork that occurred in 2011, with the intent to become a lighter and faster version of Bitcoin. Founded by Charlie Lee, an MIT graduate and Google employee, it hit $1 billion market cap by November 2013.

Since coming on board the crypto world in 2011, Litecoin has consistently been among the top ten largest cryptocurrencies by market cap. Specifically, it has ranked as high as the second position and fallen to as low as the seventh position which is still a high position.

As of June 2022, its market cap was around $3.5 billion, qualifying it as one of the largest cryptocurrencies in existence, even though it still sat some distance away from the greatness of Bitcoin, Ethereum, Bitcoin Cash, EOS, Ripple, and Stellar.

Litecoin versus Bitcoin

Litecoin was founded with an intention to complement Bitcoin—not compete with it in the manner that cryptos do, presently. The technology behind Litecoin is not too different from that of Bitcoin. The following are some of the few differences between Litecoin and Bitcoin:

  • Limitation on the number of coins: Bitcoin’s supply is finite and fixed at 21 million coins; on the other hand, Litecoin has 84 million coins, which is four times Bitcoin’s total coins.
  • Degree of mining difficulty: One major difference between Litecoin and Bitcoin is the degree of mining difficulty. Mining Bitcoin requires super or very powerful computers and is expensive and difficult. Litecoin, on the other hand, can be mined using average or normal computers. The SHA-256 algorithm is used to mine Bitcoin, while the Scrypt algorithm is used to mine Litecoin.
  • Transaction speed and fees: Transaction confirmation on Bitcoin network takes about 10 minutes, and may sometimes take up to an hour; on the other hand, transaction confirmation on Litecoin is faster, as the speed is about 2½ minutes—this is according to information from BitInfoCharts.com. In addition, Litecoin’s transaction fee is substantially lower than Bitcoin’s.

Litecoin features or characteristics

Litecoin’s main features or characteristics include, but may not be limited to:

  • Litecoin is decentralized
  • Litecoin’s token symbol is LTC
  • Litecoin is a minable
  • Transaction time is about 2½ minutes
  • Creation of Litecoin and algorithm (Scrypt) processing occurs through the PoW (proof-of-work) process
  • Transactions can be done anonymously
  • The energy cost per transaction for Litecoin is lesser than Bitcoin’s.

The Main Features of Ripple Cryptocurrency

The idea behind Ripple (XRP) was initiated way back in 2004 when Ryan Fugger founded a company called “RipplePay”, almost half a decade before Satoshi launched Bitcoin. Now, Ripple is among the most valuable blockchain-based tokens by market capitalization.

According to The Ripple Story, the plan for the protocol behind Ripple cryptocurrency was to create a “peer-to-peer trust network of financial relations that would replace banks”, while working in the same fashion as blockchain technology works.

However, it is important to note that the Ripple crypto platform has its own features or characteristics that make it different from established traditional cryptocurrencies such as Bitcoin and Ethereum.

Also important to note is the fact that the Ripple company and Ripple cryptocurrency are two different things, but they are connected to each other: some of the company’s (Ripple’s) payment systems are used with the Ripple crypto or coin which trades as “XRP”.

In 2011, Ripple’s target demographic started paying more attention to Bitcoin which was gradually becoming popular and performing much better than Ripple as a peer-to-peer payment network.

According to Ripple XRP Website, the XRP crypto functions on the basis of the cryptographic signatures inherent in a public chain.

Eventually, Ripple’s XRP cryptocurrency was launched in 2012 to serve as a digital payment network for financial institutions. Fast forward to more than half a decade later: between the end of 2017 and the beginning of January 2018, Ripple crypto temporarily ranked higher than Ethereum for ten days.

In fact, for the most part of 2018, in terms of market cap Ripple was the third largest cryptocurrency at approximately $19 billion.

Ripple versus Bitcoin

These are the main differences between Ripple crypto and Bitcoin crypto:

  • Bitcoin is an open-source platform that is owned by a community: no particular person or entity controls or owns Bitcoin. On the other hand, Ripple is owned by a private company called Ripple Labs which has offices all over the world and brings a consensus into effect if it receives 80% support from users and partners within two weeks. Basically, although Ripple is owned by a company, it employs a democratic process to please at least the majority.
  • Bitcoin’s transaction speed can take up to an hour, and the transaction fees can go as high as $40, depending on demand. On the other hand, Ripple transactions can take as little as four seconds. And even during times of high demand, Ripple’s transaction fees are relatively low or much less, as was the case in 2017 when transaction fees averaged $0.007 which is just a fraction of Bitcoin’s transaction fees.
  • Around ten Bitcoin transactions can be made per second. For Ripple, the number of transactions could go as high as 1,500.
  • Bitcoin and a number of other minable cryptocurrencies have a supply limit—the maximum number of coins that would ever be mined/minted or in circulation. The supply limit of Bitcoin is 21 million finite numbers of coins, while Ripple (XRP) is limited to the 100 billion coins currently in circulation.

The main features or characteristics of Ripple are as follows

  • Ripple is not a fully decentralized platform.
  • Transactions on the platform can be made anonymous.
  • The token symbol for Ripple is XRP.
  • Ripple is not minable or cannot be mined, and thus has no miners on its platform.
  • Algorithm processing and coin creation occur by consensus mechanism—not by proof-of-work (PoW) or proof-of-stake (PoS)—to validate transactions and account balances on the system.
  • Transactions times are small: transactions can occur within as little as four seconds.
  • Ripple uses less energy than bitcoin and transactions costs are very small.

Because Ripple’s unique features are very different from Bitcoin’s features, some people believe that Ripple XRP is not a cryptocurrency. Actually, Ripple is a hybrid of a traditional or fiat currency (a currency that is backed by a government, such as the U.S. dollar) and a traditional cryptocurrency.

The Main Features of Ethereum

Ethereum was first conceived, described, and proposed by Vitalik Buterin in November 2013; it is a young cryptocurrency that’s almost 5 years younger than Bitcoin which was invented in 2008 and launched in 2009 on the backdrop of the then prevailing economic recession.

Additional founders of Ethereum included Charles Hoskinson, Gavin Wood, Joseph Lubin, and Anthony Di Iorio. Ethereum development work and crowdfunding commenced in 2014, and on July 30, 2015, its network went live and has remained so since then.

According to the Ethereum website, www.ethereum.org or https://ethereum.org/en/, “Ethereum is a decentralized platform that runs smart contracts.” Smart contracts are a major feature in Ethereum and enable people to make agreements without the need for a middleman to do so on their behalf.

Ethereum creates its smart contracts by applying the same decentralized blockchain technology principles that Bitcoin utilizes. In the same vein that Bitcoin’s blockchain network validates Bitcoin ownership, so does Ethereum’s blockchain also validate its smart contracts which are executed by encoded rules.

Ethereum versus Bitcoin

In terms of market capitalization, Ethereum or Ether coin comes second only to Bitcoin: as of February 10, 2022, it hit a market cap value of $367.85 billion and exchanged at a rate of $3,077 per 1 Ether or Ethereum coin.

Bitcoin is regarded as “digital gold” because it was the first cryptocurrency to be invented and is the strongest to have reached a market cap of more than $1 trillion, while its limited supply which is capped at 21 million Bitcoins—the maximum number that would likely ever be mined—may guarantee that it continues to remain highly valuable.

Because people are also attracted to the features of Ethereum which is the second-largest cryptocurrency by market cap, it is regarded as “digital silver”: like the precious metal known as silver, Ethereum has great features and a wide variety of applications.

Although the principle of cryptography and distributed ledgers powers both the Ethereum and Bitcoin networks, the two respective networks have features that differ technically in a number of ways.

For instance, the feature of executable codes in smart contracts helps to process Ethereum network transactions, while the data appended to Bitcoin network transactions are usually for keeping records or digital notes.

Another difference between Ethereum and Bitcoin networks is the block time: each Ethereum transaction is confirmed in a matter of seconds, while each Bitcoin transaction takes minutes. Bitcoin network runs on the SHA-256, while the Ethereum network runs on the Ethash algorithm.

Ethereum blockchain provides a platform for users to employ smart contracts and perform or run their decentralized applications. This is the reason why many other cryptocurrencies can operate on the Ethereum platform.

Although Bitcoin and Ethereum networks are both currently using the proof of work (PoW) consensus protocol which allows the nodes of members in each network to validate or verify information and prevent anybody from manipulating the system, in 2022 Ethereum network plans to upgrade its features and move to another consensus protocol called proof of stake (PoS) which would make Ethereum more secure, scalable, and sustainable.

Generally, the Bitcoin and Ethereum networks differ in regard to their respective aims: While Bitcoin was invented to serve as an alternative to traditional or national currencies and a medium of exchange, Ethereum was invented to facilitate changeless step-by-step instructions in computer programs or contracts and applications through its own cryptocurrency. 

The main features of Ethereum are as follows

  • Its network is decentralized—but it is more decentralized than Bitcoin
  • It uses and allows the development and deployment of smart contracts in its virtual machine
  • It allows users to create DApps (Decentralized applications) also known as consolidated applications
  • It allows users to create decentralized autonomous organizations (DAOs) for use in democratic decision-making
  • Its token or trading symbol is “ETH” or “Ether”
  • It is minable
  • Ethereum mining wastes less energy than Bitcoin mining does
  • For now, creation or mining of Ethereum occurs through proof-of-work (PoW)
  • The transaction time can occur within seconds—as little as 14 seconds—although in some cases it can increase depending on confirmation requirements
  • Transactions are not entirely or completely anonymous

 

The Main Characteristics of Bitcoin

By now, almost everybody in the world may have likely heard about the cryptocurrency that started it all in “cryptodom”: Bitcoin. But presently, Bitcoin is not the only famous or investment-worthy cryptocurrency that exists. There are a number of others too, but they aren’t quite like Bitcoin.

About nine years after Satoshi published Bitcoin’s white paper, its market cap has increased from as much as $320.58 billion in December 2017 to $1.091 trillion on December 1, 2021, and dropped to $822.31 billion on January 16, 2022, at an exchange rate of $43,436.81 to 1 bitcoin.

Anybody who had invested $100 in Bitcoin and bought one Bitcoin at the then rate of a Bitcoin to a dollar (i.e., 1BTC = $1) in February 2011 would have had approximately $4.34 million worth of Bitcoin by January 16, 2022.

Many people who invested in Bitcoin during its early days and purchased and saved as much as 1000 Bitcoins (equivalent to $1,000) in February 2011, would have about $43.44 million at the time of writing.

So far, Bitcoin has been indomitable and is the talk of the crypto world, even though it is not perfect in every regard. Its age and position as a pacesetter among cryptocurrencies definitely gives it an advantage and has helped it to occupy and maintain the number one spot in the league of cryptocurrencies.

Another advantage Bitcoin has is its popularity: the obvious fact that most people have heard so much about Bitcoin, but not so much about other cryptocurrencies, has given it a big edge over the rest.

As a result, even though people could choose from thousands of other cryptocurrencies and altcoins—which may be better long-term alternatives to Bitcoin—most cryptocurrency newbies would prefer to start with Bitcoin.

But despite its age and certain characteristics that place it on top of other cryptocurrencies, surprisingly, some people still think that Bitcoin could be the worst cryptocurrency to own or to invest in.

Because the age, characteristics, and popularity of Bitcoin have made it the top superstar of all cryptocurrencies, it is clearly the frontrunner every year and pulls the entire crypto market along with its volatility.

There are actually a ton of other digital coins or cryptos that are in the financial market and have improved on the characteristics of Bitcoin, in order to highlight their own pros and somewhat expose Bitcoin’s cons.

The main characteristics of Bitcoin are as follows

  • Bitcoin network is decentralized
  • Bitcoin is minable
  • Creation or mining of Bitcoin occurs through proof-of-work
  • Bitcoin’s trading symbol is “BTC”
  • Bitcoin transactions are anonymous—but not completely anonymous
  • Bitcoin transaction time is usually between 30 minutes and 24 hours
  • Bitcoin mining requires a lot of energy.

Important Things to Consider before Choosing a Cryptocurrency Wallet

A cryptocurrency wallet is a device that is used to access and manage one or more cryptocurrencies. A cryptocurrency wallet is a software that enables people to access and manage cryptocurrencies.

Cryptocurrency wallets are of different types. Each type is capable of catering for different user goals which may even require more than one type of crypto wallet to achieve.

Before you eventually settle for a particular crypto wallet, it may be important for you to conduct research on the types of crypto wallet options that exist and their characteristics, and determine how well they can suit your needs and crypto investment goals.

This article discusses some important things you should consider before choosing a cryptocurrency wallet to store, access, and manage your cryptocurrency:

1. Security

Although online (hot) crypto wallets may be more convenient to use than offline (cold) crypto wallets, online wallets aren’t the most secure types of wallets.

If you are an active crypto investor or trader, or have a lot of cryptos, it is advisable to use a highly secure cold wallet to store most of your crypto assets offline.

Even if most of your cryptos are offline, you can always transfer them to an online crypto wallet whenever you want to make use of them for different purposes such as investing and shopping.

Important questions you may ask yourself when considering the most secure crypto wallets:

  • is the website (for the crypto wallet) secure?
  • what type of authentication does the crypto wallet use?
  • are there online reviews about the crypto wallet?

(Note: You may have to search the internet for one or more websites that provide reviews for different types of crypto wallets.)

2. Ownership

Some crypto wallets can handle different types of cryptocurrencies, while some others can’t. Many crypto wallets have their respective official wallets for just one cryptocurrency.

If you’re interested in one cryptocurrency, and not that interested in diversifying among many cryptocurrencies, then you can settle for the official cryptocurrency wallet that is designed to hold the particular cryptocurrency of your interest.

(Note: The official wallet of a cryptocurrency is usually found on the crypto company’s website.)

However, if you wish to have more than one cryptocurrency in a wallet, then go for a multicurrency wallet which is similar to the majority of online wallets that makes it possible for users to store different cryptos and make transactions between/among multiple cryptos.

3. Transaction fees

Transaction fees are a pressing issue for some crypto investors or enthusiasts. If it’s also an issue for you, especially if you’re involved in a lot of crypto shopping, then you need to research and find out the likely transaction fees you may have to be paying if you are using a particular wallet.

Knowledge of the transaction fees is very important to active crypto investors and traders who, when ignorant about transaction fees, may carry out a lot of transactions and end up paying more for transaction fees and earning less from their investments.

What is the point of being an active investor when you are incurring losses because of transaction fees?

4. Anonymity

Although not equally important to everyone, anonymity is another aspect you may consider when choosing a crypto wallet. Why? Because anonymity can give you an extra layer of security by helping you put a divide between your online presence (personal life information) and your crypto funds.

Some crypto wallets offer complete anonymity, while some others don’t. Anonymity makes it difficult for people to track and steal cryptos tied to your personal information.

If you want to be anonymous, especially if it will boost your security, then choose the most private wallets such as Electrum, BitLox, and Samourai, depending on your needs.

Best Practices for Securing Your Cryptocurrencies & Crypto Wallets

Because cryptocurrencies have become highly valuable and continue to rise in value, it is crucial that best practices be employed to secure them along with the cryptocurrency wallets that store them, especially when hackers are knowledgeable enough to sometimes bypass high-level security in softwares and on online exchanges, and succeed in hacking people’s wallets.

No matter how secure you think your cryptocurrency wallet is, it is important to ensure that extra or all available steps are taken to enhance its security level, just like you would probably go the extra mile to ensure that the credit cards in your physical wallet are secure.

Cold or offline wallets are generally safer than hot or online wallets; however, if you are an active crypto trader, hot wallets are a better option because successful trading requires that traders be regularly online via hot wallets. This characteristic isn’t a feature of cold wallets, even though cold wallets are highly secure and can’t be as easily hacked as hot wallets.

Although hot wallets are more convenient to use, they aren’t the most secure types of wallets. Cold wallets, on the other hand, are much more secure and a great fit for storing larger amounts of cryptocurrency assets that won’t be used or touched for a definite or indefinite time period. If crypto assets are stored in cold wallets, but later have to be used for investing, trading, shopping, etc., they can always be transferred to hot wallets.

After selecting a cryptocurrency wallet that is aligned with your goals, it is important to consider the following tips which could help keep your crypto assets and wallet highly safe:

(1) Acquire many cryptocurrency wallets

We live in a time when it’s extremely important to be diverse—or diversify—instead of putting all our eggs in one basket. Acquiring a number of wallets and storing different amounts of crypto assets in each, is a great way to secure most of your total assets, especially if one or two of the wallets get compromised.

By having many wallets, it would be almost impossible to become bankrupt of cryptocurrencies if only one or two wallets are hacked, out of many. Preferably, you may want to save larger amounts of crypto assets in a combination of two or more hardware wallets, and keep the rest in smaller amounts spread across a number of different wallets.

(2) Back up your cryptocurrency wallets

Whether you decide to diversify your crypto savings or not, it’s important to enhance your cryptocurrency wallet security by backing it up just like files, documents, and photos are being widely backed up on computers.

The following information—including others, if available—should be regularly backed up in a secure local cloud: recent crypto addresses, PIN codes, usernames, passwords, and any important piece of information related to your wallet’s features.

Saving and backing up information would save you a ton of time and untold problems if you forget information like PIN codes, passwords, etc. Generally speaking, backing up can protect you from losses due to human errors, computer failures, or phone and computer theft which nobody can rule out with all certainty.

(3) Add more or all available security levels

Some cryptocurrency wallets have more or extra options that can be used to strengthen or tighten their security level. Here are some suggestions:

(a) Create a strong password and change it periodically

Although short passwords are easier to remember, when it comes to creating passwords for cryptocurrency wallets, it’s advisable to create a strong password of, if possible, not less than 16 characters long. It should consist of a mixture of lower- and upper-case letters, numbers, and punctuation marks. Avoid creating passwords that are recognizable English words and contain only letters.

(b) Use two-factor authentication (2FA)

Depending on the type of wallet you acquire, “two-factor authentication” may or may not be present, but most wallets likely have this feature. If your wallet enables or allows “two-factor authentication”, use it to further heighten your cryptocurrency wallet security.

Two-factor authentication is a double authentication method that works in different ways: a combination of both email/password and phone number is one way, while a combination of both username/password and an app like the Google Authenticator app is another way. Google Authenticator app provides a six-digit code that is changed every minute but is still unique to you.

(c) Encrypt your wallet

Encrypting your wallet may require some technical familiarity, so you may have to contact your wallet provider if you need information on how to encrypt your wallet. Encrypting a wallet—and important backups, if necessary—would enable you to protect your wallet with a passphrase and against dubious people who may attempt to withdraw your cryptos without your consent.

(4) Update your wallet software as often as possible

Whether they exist on your desktop or mobile phone, it’s important to ensure that you’re always using the latest versions of your wallets. Therefore, watch out for updates and immediately them whenever firms send out updates that contain security and stability fixes. By regularly updating your wallet software, it would have the latest security features that can help prevent minor and major problems.

10 Things to Consider Before Selecting a Cryptocurrency Exchange

The internet is full of cryptocurrency exchanges, and many more could be coming in the future. But which type of cryptocurrency exchange would be the best for you? Would it be a centralized cryptocurrency exchange (CEX)? Do you think a decentralized cryptocurrency exchange (DEX) would be the best for you? Or, do you think a hybrid cryptocurrency exchange (HEX) would do a good saving and trading job for you?

More importantly, even if you select a CEX, a DEX, or a HEX, which one among the many cryptocurrency exchanges under each type (CEX, DEX, and HEX) would be the best for you to choose and use, and why? What would you consider before selecting a cryptocurrency exchange? Or, would you just select anyone?

If you select a cryptocurrency exchange without considering some important things, you could be taking a big risk that would make you eventually lose your cryptocurrency investment. It would be better—especially if you are inexperienced or a first-timer in cryptocurrency investing—to carry out some research on cryptocurrency exchanges before selecting a cryptocurrency exchange.

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There are many cryptocurrency exchanges, and each cryptocurrency exchange has its own advantages and disadvantages that investors should consider before selecting one, or more of them—in case there is any interest in diversifying an investment portfolio.

This article provides information about some characteristics of cryptocurrency exchanges you have to consider in order to be in the best position to select a cryptocurrency exchange that would serve you well. The following are 10 important things you should consider before selecting a cryptocurrency exchange:

1. The level of security

Because cryptocurrency exchanges or platforms are always under constant surveillance and attacks from hackers and fraudsters, security is a major issue in the cryptocurrency industry.

Therefore, make sure the cryptocurrency exchange of your interest is registered under, at least, one government and has a high level of security which you can conduct thorough research for before making a decision.

11 Major Risks Associated with Cryptocurrencies

To be in the best position to choose a legitimate and secure cryptocurrency exchange, it may be important to search for the cryptocurrency exchange’s online reviews on sites like Reddit, or search for related news articles on reputable sites Forbes.

When evaluating a cryptocurrency exchange’s level of security, some other security features you may look for should include one, two, or all of the following:

  • The presence of cold storage method for storing most of the cryptocurrencies on the cryptocurrency exchange. It’s advisable to select a cryptocurrency exchange that can store your funds offline via cold storage method, in order to reduce the risk of online hacking.
  • The presence of two-factor authentication (2FA). It’s advisable to select a cryptocurrency exchange that has a two-factor authentication method that can tighten up the level of security on your account by requesting for your identity to be confirmed using a combination of two different methods (password, email, phone, etc.), instead of only one.
  • The presence and proof of a cryptocurrency reserve. It’s advisable to select a cryptocurrency exchange that conducts audits and verifies that the total amount of cryptocurrencies in its possession is at least equal to the sum total of the cryptocurrencies that are spread across all customers’ balances under its watch.

 2. The extent of transaction limits

Many cryptocurrency exchanges have daily deposit and withdrawal limits. If you’re the type of investor who likes making a lot of deposits and withdrawals each day, then it’s advisable to look at the transaction limits placed on the cryptocurrency exchange of your interest. Although the restrictions placed on the number of transactions may not be an issue for you, you still have to keep transaction limits in mind when choosing a cryptocurrency exchange, especially if you have great financial goals to achieve.

3. The types of trading options

If you’re an advanced or very active trader, then trading options would likely be very important to your financial goals. Depending on your degree of risk tolerance, it’s advisable to find out whether the cryptocurrency exchange of your interest would allow you to access certain order types or margin trading that can make some types of investment goals more attainable. However, before you get involved in such trading activities, try to understand the risks involved so that nothing takes you by surprise in case of any unfortunate outcome.

4. The payment method(s)

Different cryptocurrency exchanges have different payment platforms or methods which assign their respective fees for transfers regarding cryptocurrencies. Some exchanges require investors or traders to use PayPal, bank transfer deposit, or credit and debit cards, or a combination of payment methods. It is advisable to consider the payment methods accepted by a cryptocurrency exchange and take note of the one(s) that would be convenient and easier for you to pay through.

5. The degree of liquidity

Any cryptocurrency exchange that doesn’t have a sufficient or high level of liquidity would make it difficult for many traders or investors to achieve their financial or investment goals because the speed of transactions, especially withdrawals, may be slow or compromised. Therefore, depending on your financial goals—which might likely be the same as that of many other investors—it’s advisable to select a cryptocurrency exchange that offers sufficient or high liquidity and trading volume which ensure fast and easy transactions.

6. The service fees

In order to make money and stay in the cryptocurrency exchange business, cryptocurrency exchanges usually charge their respective customers (traders or investors) certain fees for using their services; they do so by taking a certain (usually small) percentage of customers’ trade. Most exchanges charge a percentage that is lesser than 1% of the amount traded. No matter what the percentage is, it’s advisable to consider the service fee and services offered before selecting a cryptocurrency exchange.

7. The presence and level of customer support

It’s advisable to find out whether a cryptocurrency exchange has customer support; more importantly, it’s advisable to find out the level of customer support offered to customers. You can get information regarding the presence and level of customer support by contacting any cryptocurrency exchange’s customer support, or checking online forums and observing whether customers have made complaints about being locked out of their accounts or not being able to access their accounts to make deposits or withdrawals. If a cryptocurrency is associated with any such complaints, then it has poor customer support; therefore, you may have to consider other cryptocurrency exchanges.

8. The type of supported cryptocurrencies and traditional (fiat) currencies

Before selecting a cryptocurrency exchange, make sure its platform supports any cryptocurrency you’re interested in saving or trading: you should be able to store and trade your cryptocurrency on the cryptocurrency exchange of your interest. On the other hand, if you don’t have a cryptocurrency, but want to purchase anyone from the cryptocurrency exchange, then make sure that the cryptocurrency exchange accepts deposits of your country’s traditional (fiat) currency, or at least accepts deposits of any other popular traditional currency (such as the dollar, euro, or pound). 

9. The type of user interface

For the sake of having good user experience, make sure the cryptocurrency exchange of your interest has an intuitive, easy-to-use, and swift user interface. However, it has to be noted that to a great extent, having good user experience depends on the type of device you intend to use for your cryptocurrency investing activities. If you’re someone who is always moving to and fro, then an exchange that has mobile app services would make it easier or possible for you to get the best user experience which can, in turn, help you take more efficient actions on the cryptocurrency exchange.

10. The location of the cryptocurrency exchange

Depending on your location in the world, it may be easier, better, and even safer and to use a cryptocurrency exchange that is in your country, rather than a cryptocurrency exchange that’s in another country. Using a cryptocurrency exchange in your country would make it easier to buy cryptocurrencies using your countries fiat currency, and also withdraw money in your local currency after selling cryptocurrencies; in addition, in case there is fraud, or the cryptocurrency exchange is hacked and you are affected, it would be easier to file a case against the cryptocurrency exchange, especially if it is registered with the government.

Hybrid Cryptocurrency Exchanges

This article defines hybrid cryptocurrency exchanges (HEXs), states the benefits of using HEXs, and concludes with a list of some HEXs.

If you’re interested in reading about centralized cryptocurrency exchanges (CEXs), click here; in order to read about decentralized cryptocurrency exchanges (DEXs), click here.

Definition of hybrid cryptocurrency exchanges

Hybrid cryptocurrency exchanges are online cryptocurrency platforms that merge centralized characteristics of CEXs (such as liquidity and functionality) together with decentralized characteristics of DEXs (such as the higher level of security and anonymity) and allow clients to trade in a peer-to-peer manner while it—HEXs—provides confirmations and records transactions on the blockchain network.

Many people believe that HEXs are the cryptocurrency exchanges of the future because they aim at combining the advantages of both CEXs and DEXs, thereby providing clients with the best services that stem from the characteristics of both CEXs and DEXs.

Hybrid cryptocurrency exchanges ensure that there is higher liquidity, no fraudulent practices and hacking, and trading can be carried out in a manner that is smoother and safer than what is being experienced on decentralized cryptocurrency exchanges.

Major benefits of using hybrid cryptocurrency exchanges

1. It addresses problems or issues that are peculiar to both CEXs and DEXs, and makes it possible for clients to trade on both centralized and decentralized cryptocurrency exchange platforms.

2. Clients have full custody and control of their cryptocurrencies, even if middlemen or third parties are allowed to regulate the trading or exchange of cryptocurrencies. Atomic swaps make it possible for clients to exchange cryptocurrencies directly between each other, as it is being done on DEXs.

3. Instead of being stored in hot wallets (online wallets), clients’ cryptocurrencies or funds are stored in cold wallets (offline wallets) which are not connected to the internet; hence; clients’ cryptos or funds are safe from cyber-attacks.

4. Hybrid cryptocurrency exchanges comply with different regulations on cryptocurrencies and ensure that clients have the utmost level of privacy.

Examples of top hybrid cryptocurrency exchanges

1. Qurrex: https://www.qurrex.com

2. NEXT: https://next.exchange/

3. Legolas Hybrid Exchange: https://legolas.exchange/

4. Eidoo Hybrid Exchange: https://eidoo.io/crypto-exchange

5. Nash: https://nash.io/

6. Joyso: https://joyso.io/

Decentralized Cryptocurrency Exchanges

This article defines decentralized cryptocurrency exchanges (DEXs), states the types of activities that can occur on DEXs, and concludes with a list of some DEXs.

If you’re interested in reading about centralized cryptocurrency exchanges (CEXs), click here; in order to read about hybrid cryptocurrency exchanges (HEXs), click here.

Definition of decentralized cryptocurrency exchanges

In the cryptocurrency world, “decentralize” means that “cryptocurrency operations (buying, selling, or trading) are not being monitored or controlled by a middleman or third-party”.

Decentralized cryptocurrency exchanges are online cryptocurrency platforms that don’t use third-party providers before trades occur between cryptocurrency buyers and sellers.

Unlike CEXs, DEX platforms don’t use middlemen and are known for being hack-proof and maintaining anonymity. However, because DEXs are somewhat slow when compared with CEXs, under certain circumstances it’s more difficult to use DEXs to exploit cryptocurrency volatility and earn more money or cryptos.

On DEX platforms, cryptocurrency buyers and sellers interact with one another, and transactions or trades occur directly between them in a “peer-to-peer” manner.

Although many fans of DEXs argue that it’s better to use DEXs for trading (buying and selling) of cryptocurrencies because they are decentralized and allow peer-to-peer interaction without middlemen, it’s important to point out that as at the time of writing, DEXs had their own problems which are discussed a bit later in this article.

Possible activities on decentralized cryptocurrency exchanges

1. People/clients can save their cryptocurrencies in escrows that are centralized by the DEXs. Escrows exist on DEX platforms to hold funds for transactions which can take as many as five days before they are cleared.

2. Clients can buy cryptocurrencies directly from DEX market participants, and also sell cryptocurrencies directly to them without using intermediaries.

3. Generally, clients can make cryptocurrency deals on DEXs through the use of “smart contracts” and “atomic swaps”, instead of middlemen or third parties. Smart contracts are codes or programs that ensure certain legal actions or events take place in accordance with agreed terms between buyers and sellers. Atomic swaps consist of automated smart contract technology which makes it possible for one cryptocurrency to be exchanged or traded for another without the use of middlemen or centralized intermediaries.

Issues with decentralized cryptocurrency exchanges

Although it’s more difficult for hackers to hack clients’ accounts on DEXs, there is a high possibility for clients to lose their money if they forget their account log-in details.

Decentralized cryptocurrency exchanges suffer from the impact of low liquidity, meaning that it’s more difficult to buy or sell cryptocurrencies on DEXs.

The reason for this is because DEXs are less popular than CEXs; as a result, it’s difficult for clients—who want to buy or sell their cryptocurrencies—to find and be matched with other clients—who want to sell or buy cryptocurrencies.

Unfortunately, the liquidity in DEXs will likely continue to remain low as long as DEXs are less popular than CEXs.

Another issue with DEX platforms is that they don’t have services that can make it possible for clients to deposit and withdraw fiat currencies like dollars, pounds, and euros.

Moreover, DEXs can be sluggish and expensive, and when clients want to transfer cryptocurrencies and cancel orders, they would have to pay commissions or fees.

Examples of decentralized cryptocurrency exchanges

1. Bisq: https://www.bisq.network/

2. BitShares: https://wallet.bitshares.org/

3. Stellar DEX (SDEX): https://www.stellar.org/

4. Waves DEX: https://dex.wavesplatform.com/

5. IDEX: https://www.idex.market/ or https://idex.io/

6. DexGuru: https://dex.guru/

7. AirSwap: https://www.airswap.io/

8. Atomex: https://atomex.me/

Centralized Cryptocurrency Exchanges

It would be important to familiarize yourself with the major risks associated with cryptocurrencies and have sufficient reasons why you should invest in cryptocurrencies before you start buying cryptocurrencies for investing or trading purposes.

Although you can buy cryptocurrencies by paying cash to acquire them, such transactions are not common. The most popular way to buy cryptocurrencies for investing or trading purposes is through online “cryptocurrency exchanges” which are also known as “digital cryptocurrency exchanges” (DCEs).

Depending on your cryptocurrency investing plans, you can consider different alternative methods for purchasing cryptocurrencies; for example, if you plan to be actively involved in cryptocurrency trading, you can use a traditional cryptocurrency exchange or broker.

On the other hand, if you plan to buy cryptocurrencies and store them in your wallet instead of trading them, you can use any trusted online/local cryptocurrency exchange.

A cryptocurrency exchange or digital currency exchange is an online cryptocurrency platform that consists of any technology and service that enables people to trade or exchange (buy and sell) cryptocurrencies.

11 Factors that can Determine Bitcoin Price Volatility

Fiat currencies (dollars, pounds, euros, pounds, yen, or any currencies that governments regard as legal tender), electronic money, and digital assets can be used to trade cryptocurrencies on cryptocurrency exchanges.

Cryptocurrency exchanges are broadly classified into centralized cryptocurrency exchanges (CEXs), decentralized cryptocurrency exchanges (DEXs), and hybrid cryptocurrency exchanges (HEXs) which are developed to solve the problems peculiar to centralized and decentralized exchanges.

This article defines centralized cryptocurrency exchanges (CEXs), states the types of activities that occur on CEXs, and concludes with a list of ten top CEXs.

Definition of centralized cryptocurrency exchanges

In the cryptocurrency world, “centralize” means that “cryptocurrency operations (buying, selling, or trading) are being monitored or controlled by a middleman or third-party”.

Centralized cryptocurrency exchanges are online cryptocurrency platforms that use third-party providers to coordinate trades between cryptocurrency buyers and sellers. On the contrary, decentralized exchanges don’t use middlemen or third parties.

Because buyers and sellers interact to trade on CEXs, and the CEXs play the role of a middleman or third party, CEXs are similar to traditional stock exchanges.

CEXs usually charge commissions when they facilitate transactions between the buyers and the sellers, provide alternatives for high liquidity, and maintain full control over cryptocurrency buyers’ and sellers’ assets which are usually stored in hot wallets, and can be easily accessed on the internet by their owners.

Possible activities on centralized cryptocurrency exchanges

1. People/clients can place their money or fiat currencies on CEXs, and the CEXs would store it for them.

2. Clients can note or observe fluctuations in the prices of the available cryptocurrencies on the CEXs.

3. Whenever clients are interested, they can use their fiat currencies (dollars, pounds, euros, pounds, yen, etc.) to buy available cryptocurrencies of their choice. Clients are even allowed to exchange or swap fiat currencies with cryptocurrencies, or swap one or more cryptocurrencies for another or other cryptocurrencies.

4. Clients can place orders for their cryptocurrencies to be bought or sold.

5. Centralized cryptocurrency exchanges look for sellers on their platform to match with buy orders, and buyers to match with sell orders. In this way, clients who are interested in selling cryptocurrencies would be merged with buy orders, and clients who are interested in buying cryptocurrencies would be merged with sell orders.

Although most CEXs allow pairings or exchanges between two different cryptocurrencies, not all of them allow pairings between fiat currencies and cryptocurrencies.

The major issue with centralized cryptocurrency exchanges

The major issue with CEXs is that they are vulnerable to attacks, and it’s always possible for them to be hacked by hackers. A number of hacking scandals have occurred in the past; this is why it’s important to find out whether a CEX is competent enough to combat hackers, and also pay clients in case their platform gets hacked in the future.

The total number of CEXs will likely continue to increase, but no two CEXs will be equal; some of them will achieve success, while others will perform averagely or fail. Therefore, if you are interested in using a CEX, look for detailed information about the available CEXs and choose the best from the best.

Examples of top centralized cryptocurrency exchanges

1. Luno: https://www.luno.com/

2. Coinbase: https://www.coinbase.com/

3. Kraken: https://www.kraken.com/

4. Bittrex: https://www.bittrex.com/

5. Robinhood: https://www.robinhood.com

6. Bitfinex: https://www.bitfinex.com

7. Gemini: https://www.gemini.com/

8. Huobi: https://www.huobi.com

9. Binance: https://www.binance.com

10. KuCoin: https://kucoin.com

Some Cryptocurrency Risk Management Strategies

You can comfortably invest and possibly achieve your investment goals by investing at a risk level that is coherent with your risk tolerance. Assessment of your risk tolerance can be carried out by weighing important measures like your investment goals, the amount of time in which you expect to achieve your goals, and your demand for liquidity, etc.

If you employ some cryptocurrency risk management strategies discussed in this article, you can be able to enhance your risk tolerance, especially if you set long- or longer-term goals, increase your savings by diversifying your investment portfolio both online and offline and reducing or eradicating your need to liquidate your assets.

11 Major Risks Associated with Cryptocurrencies

Applying crypto risk management strategies is easier said than done, especially when it’s not so easy to foretell whether you’re going to be hit with financial challenges after you make crypto investments. The following are three crypto risk management strategies you can employ when making crypto investments:

1. Build your savings to an appreciable or sufficient extent

It’s very important to always save or keep some money aside from each earning you make, especially during the good times, so that if unexpected or unfortunate situations arise and you get hit by a few storms, you would still have an appreciable or sufficient amount of money in your savings to take care of damages, and even sustain yourself for a while before you recuperate.

Regardless of what you’re investing in or the strategy you want to employ, it’s important to build your savings to an appreciable or sufficient extent that can provide you with a stronger foundation to overcome financially challenging times that may arise if your crypto investments don’t yield the profits or gains you expect.

2. Diversify your investments inside and outside your cryptocurrency portfolio

In many areas of life, it’s advisable “not to put all your eggs in one basket”; the same applies to cryptocurrency where you can diversify your investment portfolio both inside and outside of it.

You can diversify your investments inside your crypto portfolio by adding more crypto assets to your crypto portfolio and investing in multiple crypto assets; in so doing, you can be able to spread out the total risk and reduce or eliminate the negative impact of great losses if one or few crypto assets experience a drop in price or value.

Although Bitcoin is the greatest of all cryptocurrencies, and almost everybody is trying to get their own share of it, newer and better-performing cryptocurrencies have been finding their way into the market and offering great opportunities.

For instance, Ethereum provides a foundation for future applications; NEO is another cryptocurrency that is generally considered a good long-term investment along with Ethereum because their value keeps on rising as more applications are created on their blockchain.

Cryptocurrencies such as Dash, Zcash, and Monero are transactional cryptocurrencies that are heavily focused on ensuring anonymity and transaction security.

On the other hand, you can diversify your investments outside of your crypto portfolio by investing in different assets such as bonds, stocks, exchange-traded funds (ETFs), or precious metals.

3. Be patient

One of the main reasons why many investors or traders incur losses after investing is because of their impatience which is a product of their fantasy to “get rich quick”. Many patient people who invest in cryptocurrencies on a long-term basis usually make money; in fact, most of them make lots of money because of the degree of their patience which is usually high.

Never forget that early Bitcoin investors waited on a long-term basis—for several years—before they saw returns, especially substantial and great returns! You can reap great dividends if you’re patient enough and watch how the mechanics of the crypto market plays out on a long-term basis.

In the field of investment (forex, equities, cryptocurrencies, bonds, stocks, etc.), patience is a profitable virtue that helps traders and speculators cover up a lot of ground. Patience will take you through rough patches in the market and, sooner or later, help you arrive at new opportunities that could spring up from anywhere or even nowhere.

In 2008, almost all the markets in the world, including the U.S. stock market, fell off the cliff because of economic issues such as the mortgage crisis. Many investors were afraid and became impatient, and started getting out of their investments while incurring massive losses.

If the investors had a lot of patience, they would have lived to see their investments make positive or great gains after six years, and in 2021, they would more than doubled the returns on the same initial investments they had made several years into the past.

11 Major Risks Associated with Cryptocurrencies

You might have heard about famous cryptocurrencies or cryptos like Bitcoin, Ethereum, and Litecoin, but there are many other popular and highly valuable cryptocurrencies out there.

Although the cryptocurrency or crypto market has a ton of volatility, it also has the potential to earn you make a lot of profit and even make you become rich if you invest wisely and employ strategies that are in harmony with your personal risk tolerance.

It is exciting to invest in cryptocurrencies, especially when great returns can be made from an investment; however, as it is with other types of traditional investments, as you consider making great returns, also consider the risks or dangers associated with cryptocurrency investments.

Just like many things in life, cryptocurrencies usually come with their own load of risks; whether you want to invest in them, trade them, or just save them for the future, you must consider and assess the risks or dangers associated with them before you place a stake on them, or get financially involved with them.

When you make any investment, it is advisable to consider risk(s) which is actually related to the uncertainty surrounding the return(s) on investment you expect to make. Regulation risk and volatility risks are two of the most talked-about cryptocurrency risks.

In 2017, volatility, in particular, was uncontrollable, and the price of most major cryptocurrencies, including Bitcoin, skyrocketed above 1000% before it came down crashing and made some investors lose varying amounts of money.

Because crypto prices sometimes rise too much, and in a short period of time, they sometimes crash hard and fast; for instance, in February 2018, Bitcoin dropped from nearly $20,000 to as low as approximately $6,000.

10 Reasons Why You Should Invest in Cryptocurrencies Especially on a Long-term Basis

In certain instances, cryptocurrency investing has been a get-rich-quick scheme for some people, but this doesn’t mean you should take a loan or your life savings and invest in cryptos.

You must consider the risks or dangers associated with cryptocurrencies, understand the different types of cryptocurrency risks, and then apply or develop an investment strategy that suits your risk tolerance.

Always remember that early Bitcoin investors waited on a long-term basis—for several years—before they saw any returns, especially substantial and great returns! If you can’t be patient enough to wait for meaningful returns on cryptocurrency investment, then it may be better not to invest in cryptos.

Cryptocurrencies are associated with a number of risks and mistakes that have cost some people a ton of money; however, risk could be relative and may require each person to approach it individually because what presents a risk to one person might not represent a risk to another person, and each person has their own unique lifestyle and financial circumstance(s). The following are the major risks associated with cryptocurrencies:

1. Risk due to the hype surrounding cryptocurrencies

One of the major reasons why cryptocurrencies have a lot of hype is that some people don’t know much about it and what they are investing in; they only know the names of cryptocurrencies and follow the voice of the crowd which is usually hyped.

In 2017, the general hype about cryptocurrencies was one of many drivers that created a surge in investments in the crypto market; however, and unfortunately, the hype made a lot of people invest and before some of them could figure out what was happening, cryptocurrency prices crashed and many of them suffered losses.

Ignore the hype in the cryptocurrency market, be patient and get the right knowledge about the cryptos you’re interested in investing in. Instead of gambling and taking a risk by making investments based on the current hype, find out more about the cryptocurrencies of your interest before you finally invest in them.

2. Risk due to security failure: fraud/cyber risk

Since the cryptocurrency market started with Bitcoin in 2009, scams, hacking, and thefts have been issues in the cryptocurrency market, and have temporarily compromised the values and prices of various cryptos.

Since the inception of cryptos, the criminal community and its criminals have been attracted to the crypto market, and have sometimes broken into cryptocurrency exchanges, drained cryptocurrency wallets, and even infected computers with malware that steals cryptos.

While cryptocurrency transactions are being conducted on or across the internet, cybercriminals or hackers use phishing, malware, and spoofing to target crypto services and computer security systems that have been designed to protect cryptocurrencies purchased by people. Once a cybercriminal successfully transfers any cryptocurrency out of a wallet, and the transaction is recorded on its blockchain, that cryptocurrency would likely be lost forever.

Softwares used by cryptocurrency platforms could be untrustworthy at times; in the past, sourcing of blockchain technology could have led to significant third-party risk exposure; as a result, many cryptocurrency platforms, which are usually unregulated, have been vulnerable to thefts and frauds more than regulated financial institutions have.

3. Risk due to negligence or forgetfulness

If an investor, registered user of a cryptocurrency exchange platform, or crypto wallet owner is negligent, then a cybercriminal or fraudster could gain access to the investor’s private secret key and steal cryptocurrencies from the investor’s digital wallet; in addition, any investor can lose their cryptos because of their own human error, forgetfulness, or memory loss.

There have been unfortunate incidences when cryptocurrency owners lost access to their secret keys because of their own ignorance; as a result, they lost access to the cryptocurrencies in their crypto wallets. In other cases, crypto owners have unintentionally deleted their key file, or broken the hard disk of the computer in which they stored or saved their cryptocurrency details.

4. Risk due to technological limitations

Nothing in life is perfect; even technological components, which usually have limitations, are constantly being developed and ungraded very quickly, and often uncontrollably.

Although Bitcoin and other popular cryptos are in high demand, newer cryptos or competitors appear on a daily basis. Despite the advantage that Bitcoin and other popular cryptos’ brand awareness have, there is a potential risk that their technologies and brands could lose value if other more advanced cryptocurrencies and technologies appear in the crypto market.

This implies that, with the influx of cryptos on a daily basis, investors might not be able to notice when the “popular cryptos” they invested in lose their real value.

Reports abound that the energy consumption and computational complexity of bitcoin mining are examples of the technological limitations of cryptocurrencies. Computational complexity may pose potential risks to people’s assets if we agree with the premise that complex systems fail in complex ways!

Although it’s true that each blockchain structure’s decentralized feature provides a certain type of protection that centralized databases don’t enjoy, not all cryptocurrencies are on the same level:  not all blockchains are equal; therefore, investors should beware of risks due to technological limitations present in the types of decentralization that are inherent in many cryptocurrency projects.

5. Risk due to the probability that any cryptocurrency can vanish

There are currently thousands of cryptocurrencies are out there, and many more are being created every day; and it is highly probable that in a few or several years’ time, many cryptos may vanish, while others may flourish and become much more highly valuable.

Investors should assess the cryptocurrencies they wish to invest in and find out whether their goals will be worth any money or time in the form of investment. Do the goals of the cryptos of your interest make any sense?

Are the cryptos of your interest going to remove a limitation or solve a general problem that may continue in the coming years? Although you can’t erase the probability that a cryptocurrency would vanish, you can reduce the probability or eliminate the chance of investing in a cryptocurrency that could vanish.

Following the path of history, many of the cryptocurrencies currently popping up from every corner are likely destined to crash, become a bust, or head for doom!

6. Risk due to illiquidity (or lack of liquidity)

By definition, illiquidity is the potential any substance or form of investment—in this case, a cryptocurrency—possesses which makes it not to be readily or easily liquidated, sold, or converted into physical cash. It is important for any cryptocurrency or tradeable asset to exhibit liquidity, or be easily converted into physical cash.

The absence of liquidity can be a problem in the crypto market; in fact, it is one of the factors that have led to the high volatility in a number of cryptocurrencies.

Whenever a crypto has low liquidity, there is a tendency for the price of the crypto to be manipulated because one person or entity can use a huge capital to make massive orders and easily move the crypto market in their favor; this can make the value and price of the crypto to be volatile and pose a risk to other investors who have different goals.

Whenever you want to choose a cryptocurrency to invest in or trade, consider its level of liquidity by analyzing its popularity, level of acceptance, and the number of exchanges that accept it on their platform and allow people to make trades with it. Although many cryptocurrencies may have a lot of potentials, they may put investors in trouble in the future because they lack some level of liquidity.

7. Risk due to uninsurability

The illiquid and intangible nature of cryptocurrencies increases their uninsurability because it is difficult for them to be converted into cash, especially in the form of traditional fiat currencies.

Cryptocurrency illiquidity and intangibility make crypto assets insecure and highly uninsurable, and also creates a tendency for insurance companies to refuse to provide insurance for cryptos because of the logical standards they have in place for issuing insurance.

Despite the reported interests that insurance companies have in cryptocurrencies, based on today’s standards, the majority of cryptocurrency companies and cryptocurrency assets are either uninsurable or underinsured.

8. Risk due to volatility

As a result of unexpected movements in the crypto market, investors can easily be caught off guard, especially those who want to make gains on a short-term basis: the cryptocurrency market can suddenly move in a direction that’s different or even completely opposite from what most people expect.

11 Factors that can Determine Bitcoin Price Volatility

If an investor isn’t aware of how volatile the cryptocurrency market could be, they could lose the money they’ve invested in any crypto asset(s). The best way to combat cryptocurrency volatility risk is by investing in cryptocurrencies on a long-term basis.

It’s important to consider volatility if you want to invest and make gains on a short-term basis; however, if you have a long-term investment plan, volatility can present you with a great opportunity.

9. Risk due to governments’ constant regulation changes

Although one of the things that initially attracted people to cryptocurrencies was lack of regulation, especially through various governments which have individually different standards, the constant regulation changes (regarding cryptos) made by some governments often put investors at risk because each investor reacts differently—even in detrimental ways—when governments make unexpected regulation announcements.

For instance, in 2017 when China decided to halt the activities on several trading platforms, the price of Bitcoin plummeted. In 2018, within 24 hours after various governments in Asia made announcements concerning expected regulatory changes, there was around a hundred billion dollar drop in the cryptocurrency market.

In 2018, each apparently little regulation announcement caused unnecessary price fluctuations of major cryptocurrencies and created a ton of volatility. Governments have been constantly changing regulations regarding Bitcoins, and the changes have caused Bitcoin price fluctuations and made Bitcoin volatile at certain points in time.

10. Risk due to the nature of individual cryptocurrency markets

Generally, cryptocurrencies aren’t backed by any national or international organization, any central bank, and any credit or assets. The nature of each crypto market, as expressed through the value and price of each crypto, is solely determined by the degree of interest that investors or participants show towards the crypto, especially through the transactions and trade volume of the crypto.

In other words, the value of a crypto is determined by and created from the interest that participants show in the crypto; loss of interest or confidence from participants could affect or collapse trading activities and also drop the value and price of the crypto.

The nature (price and value) of each crypto is unpredictable and poses a risk because it is highly probable for the price and value of each crypto to deteriorate because of hoarding; the price and value are often fuelled by speculative demand which is unpredictable.

11. Risk of facing strict taxation

When cryptocurrency investing initially started and was gradually becoming, it was difficult to find anyone paying taxes on their profits or gains. However, as the crypto market continued to expand and governments plan on regulating it much more, various governments may become stricter on taxation.

As of 2018, the U.S. Internal Revenue Service regarded each cryptocurrency as a “property”—just like each house—despite the fact obvious fact that each cryptocurrency is actually a currency. The implication of this is that transactions involving the use of cryptocurrencies are subject to capital gains tax.

Therefore, if you live in the United States, you face the risk of experiencing stricter tax, now or in the future, especially if government authorities make unfavorable changes in tax laws, such as an increase in tax rates, limitation of deductions, and elimination of tax exemptions.

With the current level of increasing interest in cryptos in every country, it may be difficult or impossible to predict how strict or complicated taxation on cryptos would be in the future. Although almost all investments are susceptible to increases in tax rates, cryptocurrency taxation is blurry because most governments or regulators haven’t yet agreed on or figured out what each cryptocurrency token actually represents.

Conclusion

Investing in cryptocurrencies could be risky nowadays, especially on a short-term basis, and there is not always any guarantee of making minimum profits. Investors have to understand what the cryptocurrency of their interest is about and have a clear strategy or plan of action for all types of unpredictable scenarios that could come into play. In addition, each investor—experienced or inexperienced—should invest only the amount(s) of money that they would be willing to lose without falling into serious consequences.

Take matters into your own hands as much as you possibly can: before you choose a cryptocurrency to invest in, or an exchange platform to invest on, inquire about its level of security on its website, and whether the exchange platform encourages safety by participating in any bug bounty programs. In addition, ask the right people about the crypto exchange of your interest.

Start Mining Free Pi Cryptocurrency Today & Possibly Become Rich in the Future

This article introduces the digital currency called “Pi coin” or “Pi cryptocurrency” or “Pi crypto” which was launched on March 14, 2019; since then, it has been and is still being easily mined for free on the Pi Network App which is a 100% free opportunity that can make you become a millionaire in the future. The following topics are discussed in this article:

  • Pi network: Pi coin or digital currency (a.k.a. Pi cryptocurrency or crypto)
  • Pi mining: How you can mine Pi coins or cryptocurrency
  • Pi wallet app
  • Pi cryptocurrency value

Pi network: Pi coin or digital currency (a.k.a. Pi cryptocurrency or crypto)

Pi Network is a relatively new cryptocurrency network that enables Pi Network users or registered members to mine Pi coins or cryptos on phones. Pi coin is the first cryptocurrency to be mined directly from mobile phones, instead of from computers and supercomputers.

The Pi Network has surprisingly grabbed the attention of many people in the cryptocurrency or crypto community who regard it as another way to get involved in a new cryptocurrency from scratch, and earn substantial profit in the future, in the same vein that the early Bitcoin adopters made and have still been making massive gains from mining and saving Bitcoins for many years.

10 Reasons Why You Should Invest in Cryptocurrencies Especially on a Long-term Basis

The Pi Network runs on the Pi Network App which is a mobile mining technology that allows registered Pi Network users to mine Pi coins without draining their data and phone batteries. Even when the Pi Network App is closed, or users’ phones are off, they are still able to mine Pi coins.

However, in order to continuously mine Pi coins on a daily basis—or specifically, after every 24 hours—users have to open their Pi Network apps and tap the lightning or “Tap to earn” button once every day.

Although it is generally difficult for most cryptocurrencies (like Bitcoin, Ethereum, etc.) to be accessed, mined, and used by everyday people, the Pi Network makes it easy for users to access and mine new Pi coins or cryptocurrency and puts the power of cryptocurrency directly into the palms of people’s hands. The Pi Network and its Pi coin are a 100% free opportunity that can actually make you a millionaire in the future!

The Pi coin was developed by a team of Stanford University graduates which consisted of only 3 members: Dr. Nicolas Kokkalis (Pi Network’s Head of Technologies), Dr. Chengdiao Fan (Pi Network’s Head of Product), and Vincent McPhillip (Pi Network’s Head of Community).

When Pi Network’s live net (mainnet) is launched, as has been scheduled to occur this year (2021), all the coins mined by each Pi Network user will be migrated to Pi live net, Pi coins will have a value in the market, and will thus become officially marketable. At the time of writing, the Pi Network community had amassed over 18+ million users/miners in less than 2¼ years—i.e., since March 14, 2019.

For quite some time, probably over several months or up to a year, “Pi Economy” members within the “Pi Lifestyle App”—which can be downloaded from Google Play Store—have been trading goods and services at an exchange rate of 1 Pi coin = $100 on the Pi Lifestyle App platform.

Based on plans being laid down on the Pi network, some users believe that when the Pi mainnet (Pi Blockchain) is launched, as expected later this year (2021), 1 Pi coin may have a value equivalent to or more than $100. If this happens, then a user who had mined 10,000 Pi coins in the Pi Network App, will have a balance of $1 million in their Pi wallet on mainnet.

Pi mining: How you can mine Pi coins or cryptocurrency

The technology behind Pi coin mining is based on a new algorithm that doesn’t harm the environment; whereas, mining Bitcoin and a number of other cryptocurrencies do substantial harm to the environment.

Make a wise decision today and start mining Pi coin which is still 100% free to mine and would cost you absolutely nothing to acquire in increasing numbers until mining stops when Pi mainnet (Pi Blockchain) is launched. Many people who paid attention to Bitcoin during its early days or years, mined it and have become millionaires and billionaires today.

Pi Network presents an unbelievable opportunity for everyone who is alive; Pi Network makes it easy to mine free Pi coins, instead of buying them—but this opportunity won’t last forever! If you don’t start mining Pi coins today, you could be missing out on a big opportunity that may never come back after Pi mainnet is launched.

The Pi coin and its network are actually a 100% free opportunity that can make you a millionaire in the future.

Nowadays, it’s more difficult and almost too late to become an instant millionaire with Bitcoin. Why? Because it’s more difficult to mine Bitcoin and more expensive to buy and invest in it—but today you have a new opportunity in another cryptocurrency which is Pi coin.

Download the Pi App here, register on the Pi Network by using your Facebook account or phone number, and enter/use “Terihagh1” as your invitation or referral code; alternatively, you can take the following steps:

1. Click here and click “Download”; after registering with your Facebook account or phone number, use “Terihagh1” as your invitation code. Alternatively, you can download the Pi Network app from Play Store or App Store, and use “Terihagh1” as your invitation code.

2. When asked to verify your identity, use either your Facebook account or mobile number; choose one of the two options.

3. Set up your password. I recommend that you use a long password which will be easier for you to remember and difficult for others to guess. Note that, to be able to claim your Pi coins in the future, you must verify your phone number.

4. Choose your username which you will use as your referral code whenever you are inviting others to join the Pi network and mine Pi coins.

5. When asked for your invitation code, use/enter “Terihagh1”.

Note: In order to continue mining Pi daily, after every 24 hours, each user has to open their Pi Network app and tap the lightning or “Tap to earn” button. The Pi Network app is set up this way to ensure that members are active and contributing to the Pi Network. Don’t forget to verify your phone number by following the available instructions on the Pi app.

Pi wallet app

Currently, each registered Pi user has a Pi wallet in the Pi Network App, but after Phase 3 (the Pi live net or mainnet) is launched and Pi coin becomes official and has a value, Pi coin miners who have mined Pi crypto and saved them in their installed Pi Network Apps, will have their coins transferred to their Pi wallets that will be on Pi Network blockchain.

After Phase 3 is launched, registered users of Pi Network will have full control of their private and public Pi wallet keys and be able to use their Pi coins to buy and sell products and services on Pi Network’s peer-to-peer online marketplaces such as https://thepilifestylemarket.com/ and https://pinetworkmarket.com/; in addition, they will be able to exchange their Pi coins for strong fiat currencies like the dollar, euro, and pound. Without private and public keys, registered users won’t be able to transfer or spend the Pi cryptocurrency in their Pi wallets.

Each Pi wallet will be somewhat like a bank account, or virtual/electronic account where owners of Pi coins will store their Pi and be able to transfer, buy, and sell the Pi coins they have mined and saved during the pre-release or testing phase mode which Pi Network was in, at the time of writing.

At the time of writing, the Pi Network app was serving as a cryptocurrency wallet and was linked to each registered user’s phone number or Facebook account. Like it happens on other public cryptocurrency blockchains, after Pi blockchain is created and its developers release its source code, it will allow Pi wallets to store Pi coins and make transactions.

Pi cryptocurrency value

Does Pi coin have any value? Is Pi digital currency worth anything? As it has been with other digital coins, and any new digital coin that is yet to be launched, Pi coin or cryptocurrency doesn’t have any official value and isn’t tradeable on any exchange in the financial and cryptocurrency markets.

Even after Pi coin is launched, hopefully this year 2021, its value will likely start at a relatively low level against the US dollar, but could gradually rise and increase in value if it is widely used. It is often difficult to predict what the value of any coin will be before it is officially launched.

Bitcoin Mining: Definition & How it Works

11 Factors that Can Determine Bitcoin Price Volatility

The reason why Pi coin or crypto doesn’t have any value is that it is still in its pre-release or test net mode. Registered users who have mined Pi coins will be able to withdraw or exchange their coins during the third phase of Pi Network’s project when Pi digital currency or coin becomes a completely decentralized blockchain network like many other cryptocurrencies.

Although Pi coin is waiting to be officially launched on exchanges this year, the network’s members have already started increasing the awareness and value of Pi cryptocurrency by using Pi coins to purchase goods and services online (websites) and on platforms in the Pi Lifestyle App which can be downloaded from Google Play Store.

Click here and click on the menu at the top left corner of the Pi Network Market to view available items that can be bought with Pi coins under the following categories: digitals; kitchen & garden; books & stationary; health, beauty & cosmetics; food & drinks, fashion & clothes; vehicles & industrial equipment; toys and baby supplies.

In addition, you can click here, which is The Pi Lifestyle Market, and proceed to click the menu at the top left corner and view items that can be bought and sold by Pi Network users who are registered on The Pi Lifestyle Market.

Members of the Pi network community are committed to using Pi in such a way that after the Pi digital currency is officially launched, 1 Pi would have a value that could be worth several tens, hundreds, or even as much as thousands of dollars.

At the time of writing, Pi cryptocurrency value was equivalent to zero dollars like Bitcoin cryptocurrency which was created by Satoshi Nakamoto who introduced it to the public in 2008. Around that time, a high percentage of the world’s population—probably up to 99%—didn’t give a damn about Bitcoin, even though it was more accessible around and shortly after that time, and was much easier to mine then when its value was zero dollars.

Satoshi Nakamoto introduced Bitcoin as “A Peer-to-Peer Electronic Cash System” and implemented the bitcoin software as open-source code which enabled Bitcoins to be released in January 2009.

After inventing Bitcoin, and watching it rise in value over 11 years, in January 2021 when the value of 1 Bitcoin rose to $39,000, it was believed that Nakamoto—who had personally mined over 1 million Bitcoins several years earlier—possessed Bitcoins that were worth over $39 billion, making him possibly the 17th richest individual in the world at the time.

The first time Bitcoin was used in a commercial transaction was in 2010. Around that time when 1 Bitcoin was equal to $0.0041, Laszlo Hanyecz bought 2 pizzas for 10,000 Bitcoins; implying that 10,000 Bitcoins was equal to $41. Today, 10,000 Bitcoins is well over $370 million.

In 2009, a Norwegian man who bought 5,000 Bitcoins, forgot about them. (At the time, the 5,000 Bitcoins he bought were worth only $27 in his Bitcoin wallet). He discovered four years later—in October 2013—that the value of the Bitcoins he had forgotten about, shot up from $27 to $980,000.

After hearing about the rise in the value of Bitcoins, the Norwegian logged into his Bitcoin wallet and was surprised at the amount of money he saw: $980,000—instead of $27. He sold a portion of his Bitcoins and, with the money, he bought an apartment in an expensive part of Oslo, Norway. All thanks to the surging rise in the value of Bitcoin which has often been overlooked by many people.

The real-life story of Erik Finman is a truly inspiring one: In 2011, at the age of 12, when 1 Bitcoin was around $10, he bought 100 Bitcoins for $1,000. Between 2011 and 2019, Erik Finman grew the Bitcoins in his electronic wallet, from 100 Bitcoins (worth $1,000 in 2011) to 446 Bitcoins. As a result of the rise in Bitcoins from $10 per Bitcoin in 2011, to around $10,000 per Bitcoin, Erik Finman’s 446 Bitcoins were worth approximately $4.5 million in August 2019.

It is on record that Nakamoto had mined over 1 million Bitcoins before handing over the network key and control to Gavin Andresen. Although the value of Bitcoin has been rising and falling over the years, its value has been generally rising. At Bitcoin’s inception in 2009 when it had no value, nobody thought its value would reach $20,000 in 2017 and $40,000 on a particular day in January 2021. Generally speaking, within about 11 years, Bitcoin’s value has risen from zero dollars to almost $60,000 per Bitcoin before dropping to approximately $37,000 per Bitcoin.

10 Reasons Why You Should Invest in Cryptocurrencies Especially on a Long-term Basis

Whether you’re exposed only to traditional investment assets apart from cryptocurrencies, or you have some interest in investing in cryptocurrencies for the first time, you can be able to take some very important steps if you actually understand why it is important to invest in cryptocurrencies or crypto.

You’ve likely read or heard about Bitcoin and other cryptocurrencies like Dogecoin, Litecoin, NEO, Ethereum, XRP, Alias (formerly known as “Spectrecoin”), NXT, Bitcoin Cash, etc.—but why invest in crypto anyway?

By getting a general overview of important reasons, it will be easier to understand why you should invest in cryptocurrencies, especially on a long-term basis. The following are ten reasons why you should invest in cryptocurrencies:

1. Investing in cryptocurrencies can diversify your investment portfolio

By investing in cryptocurrencies, you can diversify your investment portfolio much more and reduce any risk(s) associated with investing all your money in only traditional markets; you can actually reduce the impact of losses that could be incurred from investments made in traditional markets or investments.

It’s important to diversify your portfolio by investing in crypto because doing so can prevent you from investing all your money (putting all your eggs) in traditional markets/investments (one basket), and also prevent you from increasing the impact of any losses if traditional markets/investments fail.

Generally, it’s important to diversify in many areas of life; for instance, if you’re travelling, don’t put all your money only in your luggage; take part of it and put it in your trouser’s pocket, and maybe also put another part in your shirt’s pocket so that you can still have money if your luggage gets lost or pockets loosen up—and vice-versa.

When it comes to money-making, you can diversify your investments in different financial assets such as bonds, stocks, foreign exchange (forex), precious metals (gold, silver, etc.), etc.—depending on the industry (healthcare, technology, entertainment, etc.) of your interest.

Investing in cryptocurrencies—especially on a long-term basis—is essentially one way of balancing your portfolio of investments and increasing your potential in order to maximize your portfolio’s growth by utilizing the higher earning potential in cryptocurrencies which react differently to various financial and global events.

2. Investing in cryptocurrencies can attract tremendous ROI when respective cryptocurrency platforms are strong

Although crypto investing lacks symmetry (the ability to remain unchanged under a specific direction and value), if you can make the right timing, it can earn you tremendous ROIs (returns on investment) as it has done for many investors who invested in various types of cryptocurrencies that have yielded high ROIs on a long-term basis.

For example, as of April 15, 2021, Ethereum was selling around $2,425 per token which represented a 782,258% ROI (return on investment) after initially selling for $0.31 during its initial coin offering (Augur) back in October 2015.

As of April 15, 2021, Alias (formerly known as “Spectrecoin”) was selling around $0.17 per token which represented a 17,000% ROI after initially selling for $0.001 during its initial coin offering in late 2016.

As of April 15, 2021, NEO was trading around $71 per token which represented a 236,667% ROI after initially selling for $0.03 in late 2016; before then, it had previously traded at an all-time high of approximately $180 which represented a 600,000% ROI.

NXT was initially selling for $0.0000168 per token, but as of April 2021, it was trading for around $0.09 which represented a 535,714% ROI years after the day of its initial coin offering.

No traditional investment (stocks, bonds, precious metals, forex, etc.) or other types of investment in the world have attracted tremendous ROIs that are more than what most cryptocurrencies have attracted. There are still many other cryptocurrencies whose ROIs are also high; lack of adequate time wouldn’t permit us to mention them in this article.

Anyone who had bought one bitcoin for $300 at the end of 2015 and held unto it and sold it on March 15, 2021, when its price reached approximately $60,415 per token would have made a profit of $60,115; two bitcoins would have earned a profit of $120,230, and more than two bitcoins would have earned much higher profits than $120,230.

It’s important to note that “selling cryptos at the wrong time could incur losses”; therefore, when investing in cryptos, take a long-term approach. Looking for profits on a long-term basis would make you appreciate investing in cryptocurrency much more than traditional investments.

High returns on investment (ROIs) are the reasons why many investors—and “non-investors” too—are jumping on the cryptocurrency bandwagon. People who owned bitcoins when Bitcoin initially came out had to wait for years before seeing any appreciable ROI.

Personally, I was initially skeptical about Bitcoin back in July 2016 when I had around 0.8952 bitcoin which, at the time, was equivalent to between $700 and $800, and equivalent to around 360,000 Naira (my local currency). In July 2016, I was assuming that Bitcoin would crash in the future, so I sold my 0.8952 bitcoin for 360,000 Naira and unfortunately wasted my money.

When I look back from today, which is in the future and five years ahead of 2016, I regret being so skeptical and selling my bitcoin because, as at the time of writing, 0.8952 bitcoin was equivalent to approximately $39,000 which was around 15 million Naira.

If I had that amount of money at the time of writing, my life would have been on a much higher level than it was. It’s really interesting to see how the values of Bitcoin and other cryptocurrencies just keep on rising.

3. Cryptocurrencies generally have long-term stability and high potentials for consistent growth

The prices of Bitcoin and other cryptocurrencies are generally volatile because of several factors; however, the stats provided in preceding paragraphs prove that the prices or values of cryptocurrencies are stable in the long term and have high potentials for consistent growth.

The biggest investment stories of 2017 were about Bitcoin and other cryptocurrencies: Wall Street Journal, New York, and CNBC reported that many people become millionaires within a short period of time, usually almost overnight.

However, when the price of Bitcoin fell by 63% after January 2018, the same media had stated that the opportunity of making millions and lots of money from Bitcoin and other cryptocurrencies had passed, and the cryptocurrency era would soon be over.

But far from it: the same media would certainly be surprised when, at the time of writing, Bitcoin was around $40,000 after it had reached approximately $60,000 just a few weeks prior—specifically, on March 15, 2021.

4. One or more cryptocurrencies can be traded for one or other types of cryptocurrencies

Cryptocurrencies can be traded against each other in the same way that fiat or traditional currencies are being traded against each other in the forex market where investors carry out short-to-medium-term trading activities between different pairs of fiat currencies.

For example, in the cryptocurrency market, you can analyze and pair Ethereum (ETH) and Bitcoin (BTC) against each other, or even pair a cryptocurrency (Bitcoin) against a fiat currency (euro) and invest after speculating their value against each other.

However, you would have to analyze each cryptocurrency or fiat currency individually, evaluate or weigh their value against each other and predict—either rightly or wrongly—which cryptocurrency or fiat currency would win.

Although it’s risky and likely better to invest in cryptocurrencies in order to get a sizable ROI, it’s possible to trade different cryptocurrencies against each other in the same manner that fiat currencies are being traded against each other in the forex market.

5. Cryptocurrencies are usually unregulated by governments and one or few individuals

Because they are unregulated and gain more trust when people—especially investors—don’t trust fiat currencies at certain times or during certain time intervals, cryptocurrencies have the tendency to increase in their values and consistently maintain high values without being under the influence of central power.

6. Cryptocurrencies are portable, and less risk is involved in transferring or moving them around

In comparison with precious metals and fiat currencies which are usually associated with a considerable or high degree of portability risk, and are expensive to transfer because of their weights and the high import taxes and security they incur, cryptocurrencies are more portable and have lesser portability risks because they don’t need to be transferred physically; also, moving or transferring cryptocurrencies is much faster and less expensive, even if you’re using a hardware wallet.

7. Cryptocurrency platforms are more transparent because of their blockchain technology

Cryptocurrency platforms use blockchain-based technology which has a transparent and well-grounded decentralized network and eradicates the need for a centralized middleman, thereby providing much-needed transparency, allowing direct peer-to-peer transactions, and eliminating the type of high transaction fees required by centralized platforms.

Cryptocurrency blockchain-based technology is more transparent because of its decentralized nature which makes it possible for individuals or peers to control and coordinate common activities, interact with each other, and govern themselves in a more open and trustworthy manner.

8. Cryptocurrencies don’t have the tendency to be influenced by/subjected to inflation

History books have proven over and over again that when any government is corrupt and governing by employing unsound policies or facing a crisis, its country’s fiat currency suffers. Fluctuations in a currency’s value can make the central bank in charge of the currency unnecessarily print more money, and thereby subject the economy to inflation.

Unlike traditional currencies (pound, euro, dollar, etc.), most cryptocurrencies won’t be printed by any central banks or decentralized cryptocurrency platforms. Most cryptocurrencies have a limited supply of tokens (or a controlled supply) which implies that they won’t be printed and subjected to inflation.

9. Cryptocurrency platforms provide fast and highly accessible financial services

With the help of blockchain technology, cryptocurrency platforms can provide banked, unbanked, and underbanked groups of people with faster and highly accessible financial alternatives and services in a transparent and efficient way.

Any interested individual needs only a laptop or smartphone and internet connection to open an account on any cryptocurrency platform and start sending and receiving cryptocurrency.

One of the notable problems that cryptocurrencies have solved to a great extent and can keep on solving much more is the issue of inadequate access to financial services which most of the world’s population—both the unbanked and underbanked populations—have been experiencing.

It’s widely known that about 1.7 billion adults don’t have bank accounts and are unable to meet their daily financial needs because of lack of access to adequate financial services.

Generally, many people are unbanked and underbanked and don’t have access to the convenience, interests, and security that banks provide. Cryptocurrencies have the potential to resolve this issue.

10. The world is trending more and more towards investing in cryptocurrency platforms

Many of the world’s largest companies have started recognizing and accepting cryptocurrencies for payment. Tesla once invested billions of dollars in Bitcoin, and presently you can find many large companies that have cryptocurrencies or digital coins.

This is one of the reasons why you should consider following the trend of investing in cryptocurrencies. You can monitor financial projections, find out when new digital coins—like Pi coin—would be launched, and choose an appropriate time to buy cryptocurrencies and save them on a long-term basis.

Cryptocurrencies are gradually being accepted as part and parcel of modern society and are increasingly being used for making payments and in economic processes. Cryptocurrencies will likely be relevant for many more decades or centuries to come, even if mankind doesn’t invent another type of money that can be created out of almost nothing.

Join the bandwagon of people who have seized the opportunities that cryptocurrencies have brought during their existence so far.

Conclusion

Despite the reasons why you should invest in cryptocurrencies, always remember that cryptocurrency markets or platforms can have their bad days, and sometimes even bad years like traditional investments (stocks, bonds, etc.) do.

But most importantly, never ever forget that you will almost always reap great ROIs (returns on investment) if you invest in cryptocurrencies on a long-term basis. In addition, investing in cryptocurrencies can help you balance out risks associated with other types of investments, especially traditional investments.

Definition of Cryptocurrency

Between 2009 and 2011, Bitcoin was the only cryptocurrency in existence until alternative coins—also known as altcoins—were created to improve on anonymity, speed, and security, amongst other properties associated with the field of cryptocurrency which Bitcoin pioneered.

There are many cryptocurrencies out there; in fact, as of April 2021, there were over 9,500 cryptocurrencies in circulation listed on the Coinmarketcap. This number is expected to increase in the future as people’s interest in cryptocurrencies keeps rising.

Although you might have heard about cryptocurrencies and known how it works, it’s possible you still don’t know what cryptocurrency actually is, or what it means. The topic of cryptocurrencies and the blockchain technology that drives them can be a bit confusing.

So, what is cryptocurrency? This article uses relatable terminology to explain in detail what cryptocurrency is, and the science of cryptography that decentralizes and drives cryptocurrencies, and makes them secure; generally, the following topics are discussed:

  • Definition of cryptocurrency
  • Cryptocurrencies are driven by the basics of cryptography
  • Cryptography’s three main encryption methods used in cryptocurrency
  • Cryptocurrencies and traditional currencies
  • 5 benefits of cryptocurrencies that differentiate them from fiat currencies

Definition of cryptocurrency

Simply defined, cryptocurrency is digital currency or money. Technically speaking, cryptocurrency is a decentralized digital currency that is created based on the cryptographic principles (principles of cryptography) that are applied in blockchain technology.

Cryptography is a branch of scientific knowledge or mathematics that analyzes and deciphers codes and ciphertexts and cryptograms to secure information by converting it into unintelligible forms that provide security, enhance and maintain decentralization, and make it impossible or extremely difficult for third parties to understand.

Cryptocurrencies are driven by the basics of cryptography

Cryptocurrencies are driven by cryptography: the scripting language used in most cryptocurrencies is created with cryptography as its major pillar. The “crypto” in the word “cryptography” and “cryptocurrency” means “secret.”

In the world of cryptocurrency, the word “crypto” is synonymous with being “anonymous”. In ancient times, cryptography was used to send hidden messages. In fact, the term “cryptography” was derived from the Greek word “krypto logos” which means “secret writing”. The sender of a message would “encrypt” a message by using a “key”, and the receiver of the message would have to “decrypt” it.

When used in cryptocurrencies and their underlying blockchain technology, cryptography makes it difficult to create fake cryptocurrency tokens; on the other hand, it creates more transparency over the number of tokens created and issued to clients and held by them.

Cryptocurrencies use cryptography to keep their platforms safe, anonymous, and protected from double-spending which is a situation whereby a client’s cryptocurrency could be used or spent more than once.

Cryptocurrency platforms use cryptography in a way that makes it possible for anyone to open a cryptocurrency account without requesting permission from a third party or third parties. Instead of using names, account numbers, and passwords—like traditional or fiat currency platforms (banks, PayPal, etc.) do—cryptocurrency platforms use public keys as account numbers and digital signatures as passwords.

In the world of cryptocurrency, anyone can use a public key as their account number and create their own cryptocurrency account with their computer, phone, or device without asking a third party for an account and credentials to access or operate their account.

An account can be created by selecting a private key (which is a random number) and deriving a public key from it. A public key is generated from a private key; a private key is a random number because it is selected at random.

The account numbers of most cryptocurrencies, which are called “addresses”, are mathematically derived from public keys. Cryptocurrency addresses are the cryptocurrency accounts that people send/transfer cryptocurrencies from or use to receive cryptocurrency payments from other cryptocurrency addresses within the same platform (Bitcoin, Ethereum, Litecoin, etc.).

Nobody can spend any cryptocurrency from the address that belongs to its owner unless the owner gives someone or anyone else their private key. The owner of a cryptocurrency address is at liberty to create as many addresses as they want; their cryptocurrency wallet (which stores cryptocurrency) would manage the addresses on their behalf.

In the cryptocurrency world, although third parties have been eliminated in creating cryptocurrency accounts, there are actually parties involved in the central bookkeeping; however, such parties act in a decentralized manner with no actual party, person, or computer being in complete control of cryptocurrency bookkeeping.

Cryptography’s three main encryption methods used in cryptocurrency

1. Hashing or hash function

Hashing is used in cryptocurrency platforms like Bitcoin to guess the combination of a block’s lock, maintain the structure of blockchain data, encode clients’ addresses/accounts, and make it possible to mine new blocks. After a client inputs initial/original data, the hash function operates on the data and creates an output that is smaller in size but represents the original data.

2. Symmetric cryptography

In symmetric encryption, which is the easiest method employed in cryptography, both the sender and receiver of data use only one secret key; the major drawback of this encryption method is that before the initial data can be encrypted, every party in a transaction has to exchange the secret key used to encrypt the initial data.

3. Asymmetric cryptography

In asymmetric encryption, two keys are used: a public key and a private key. The receiver can use their public key to encrypt the initial message or data sent from someone else and received by them; however, the receiver can only use their private key to decrypt the initial data or message sent.

Nodes

For the sake of clarity, it has to be stated that nodes are not among the main encryption methods. Nodes are the computers, printers, or cellphones that are connected to the internet and are on the blockchain network. In the type of cryptography used in cryptocurrency, nodes serve as electronic devices that do bookkeeping in the blockchain network of respective cryptocurrencies and make the decentralization of cryptocurrencies possible.

Cryptocurrencies and traditional currencies

Bitcoin was the first cryptocurrency to be created, and many other cryptocurrencies have been created over the years after Bitcoin was established. Although cryptocurrencies like Bitcoin are created through a process called “mining”, not all cryptocurrencies are being mined. The process of mining or creating cryptocurrencies is very different from the traditional method of mining ore and precious metals.

Traditional or fiat currencies like the dollar, pound, and euro—which are not cryptocurrencies—can be digitally transferred, but cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.) can’t be digitally transferred in the same way that fiat currencies can because there is a difference between their respective transfer processes and the technology that drives them.

Regardless of whether a cryptocurrency is mined or not mined, its transaction needs validation in its own blockchain network; this implies that transactions have to be verified by people in the network in order to provide proof for the transactions and ensure that the same cryptocurrency token hasn’t been spent twice. The extent of validation in a cryptocurrency network is completely different from the one applicable to fiat currencies. 

Although each cryptocurrency is gradually becoming mainstream like traditional currencies that are being used to make payments electronically on some platforms, traditional currencies aren’t created and transferred the same way cryptocurrencies are created and transferred.

5 benefits of cryptocurrencies that differentiate them from traditional/fiat currencies

Until quite recently—probably a few years ago—many people underrated how important cryptocurrencies they would become in the near future. Cryptocurrencies help in areas where the world’s traditional currencies have issues. The main benefits of cryptocurrencies are:

1. They empower people to be in charge of their own money. Governments and central banks have a lot of control over fiat currency, and in many instances, have frozen people’s accounts and denied them access to their funds because of one reason or another. Governments may even decide to get rid of high-value banknotes the way India did in 2016 when it wiped out 550- and 1000-rupee notes from circulation; these notes represented around 87% of the total cash in circulation.

2. They make it possible for currencies, mostly cryptocurrencies, to be transferred much faster and at less expensive rates because middlemen or third parties aren’t involved. On the other hand, the transfer of fiat currencies is usually slow, and transactions are expensive because of the involvement of middlemen or third parties such as brokers, banks, and escrows, etc.

3. They make it easy for most of the world’s unbanked and underbanked population to have access to the financial services offered by the blockchain technology of their respective platforms. On the other hand, fiat currencies make it difficult for approximately half the world’s population (over 3 billion people) to have sufficient access to modern-day financial services.

4. They reduce corruption and provide a much more fair playing field because they are decentralized and not controlled by governments or banks. With fiat currencies, there is a consistent rise in financial inequality around the world. Usually, when one person or few people are in power, there is a high possibility for them to abuse power and increase it.

5. They increase in value and don’t tend to create inflation/negative effects of inflation because, unlike fiat currencies, they can’t be printed excessively. Most cryptocurrencies are limited to a number of coins that can be printed. There is no way for a central authority or the blockchain to simply create more coins to add to the predetermined or existing supply. With fiat currencies, there are problems and negative impacts of inflation because governments and central banks can simply print a lot of money whenever they are faced with serious economic problems. However, when governments print more money, the value of their currencies drops to such an extent that inflation drastically increases and makes it difficult or impossible for its citizens to buy everyday goods and services.

Bitcoin Mining: Definition & How it Works

Usually, newcomers in the digital currency or cryptocurrency world have a load of questions. If you’re new or somewhat a bit familiar with Bitcoin, you might have probably wondered where the digital currency “Bitcoin” comes from, or how it is created or mined.

In fact, you might have asked questions such as: What is bitcoin mining? How does bitcoin mining work? How can you mine Bitcoins? The aim of this article is to answer these questions and explain bitcoin mining in very simple terms.

This article was written specifically for people who have average, little, or no technical knowledge about Bitcoin, how it is being created, and how its network is being secured during the process of bitcoin mining.

Generally, this article discusses the following topics:

  • Definition of bitcoin mining
  • How does bitcoin mining work: how can you mine Bitcoins?
  • Activities that bitcoin miners are involved in

Definition of bitcoin mining

Bitcoin mining is a process in which the Bitcoin network security is decentralized and Bitcoins are created or brought into existence and circulated. The main purpose of bitcoin mining is not to create new Bitcoins; the creation or mining of new Bitcoins is an incentive in the Bitcoin network/system.

The purpose of bitcoin mining is to achieve decentralization. Bitcoin mining runs in a decentralized way in which no central bank, nobody, and no group of people have control over the Bitcoin network or blockchain; all users of the network collectively exercise control without passing through any intermediaries.

Bitcoin mining secures the bitcoin system, verifies bitcoin transactions or payments made by clients/users on the bitcoin network, and stretches the boundaries of its network-wide consensus without any central authority controlling or dictating its activities.

Although the process of mining Bitcoins has been compared to that of mining gold and other precious metals, both Bitcoin and gold are mined in completely different ways; however, their mining processes are similar in one way: the more both of them are mined, the more their fixed supply is reduced, and they become more difficult to mine and supply.

How does bitcoin mining work: how can you mine Bitcoins?

Without the activities of bitcoin miners who use the computing power of computers to guess 64-digit hexadecimal numbers (hashes) that are less than or equal to the target hashes, and maintain the bitcoin network, it would be impossible to decentralize and secure the bitcoin network, mine or create Bitcoins, and validate transactions between the network’s users or clients.

Anyone who is interested in getting into bitcoin mining should take note that bitcoin mining is similar to the gold rushes of the past, around the early times when gold was discovered. Many people who made attempts to find fortune during the early gold rushes, lost everything that they had because they didn’t consider a number of important things before investing time and money in it.

During the gold rushes, few people became rich; however, even those who became rich experienced hardship on the way. Bitcoin mining has its fair share of challenges and bears many similarities with traditional gold rushes and other get-rich-quick schemes which people often don’t consider in their entirety before investing time and money in them.

You need powerful hardware and convenient electricity (energy) supply before you can successfully mine Bitcoins. Before starting, you have to estimate the quantity of electricity you would need, and determine whether your investment in mining Bitcoins will be greater or lesser than what you could earn after you start mining.

During bitcoin mining, the computing power of each computer (in the network) uses a cryptographic process to estimate the value of bitcoin assets in each transaction, process the transactions, create Bitcoins, synchronize everybody in the system, and secure the network.

Bitcoin mining works by using a designated bitcoin mining software program on a computer to guess 64-digit hexadecimal numbers based on cryptographic hash algorithms; the solution to the problems earns bitcoin miners 2 rewards: new Bitcoins, and transaction fees from all transactions in the blocks thru add to the blockchain.

Any bitcoin miner who wants to add their block and enter transactions into the blockchain has to provide proof or answer to a particular challenge. Even with the use of computers, it’s difficult to provide proof; however, if proof is provided, other people in the network can easily verify it. The process of verifying proof is known as proof-of-work or PoW.

Bitcoin mining software program can be acquired by anyone who is interested in becoming a bitcoin miner and using computing power to solve puzzles or problems, create Bitcoins, process transactions, and secure the network.

The more powerful a bitcoin miner’s computers is, the faster they would be able to guess 64-digit hexadecimal numbers, beat the remaining crowd of Bitcoin miners, and earn bitcoin mining rewards. The bitcoin miners with supercomputers usually earn most of the time, if not all the time.

On any given day, when bitcoin miners watch out for transactions in the network, the first miner to guess a 64-digit hexadecimal number (associated with a transaction) would mine a new “block” on the “blockchain network”; once the block is accepted, the miner will receive or earn a particular number of Bitcoins as the reward for their work: in other words, the first bitcoin miner who solves a puzzle is entitled to put a new block on the blockchain which is a chain or network of blocks.

It takes about 10 minutes for a block to be mined, and an hour for 6 blocks to be mined; over time, the blocks expand into a long chain called “blockchain”. After every 10 minutes, new Bitcoins are mined or created; each bitcoin is worth $55,000+ as at the time of writing. The power used to make one bitcoin transaction successful can provide energy to about 10 houses per day in the USA.

The blocks are part of the public ledger: the public ledger is divided into blocks which are logs of transactions that contain Bitcoin, and are arranged in batches. Each new block is referenced to its previously created block; this process continues and the whole set-up is referred to as the “blockchain”.

Each Bitcoin mining process mines new blocks which are ledger files that permanently record every old and new Bitcoin transaction. When bitcoin transactions are carried about between any two parties, bitcoin miners accredit and record each transaction on a block.

After every transaction is verified, each miner sends and receives validation messages from every other miner; this instigates confirmations on the network, and the block or ledger keeps track of the Bitcoins but doesn’t keep track of its owners or their bitcoin wallets’ balances.

Activities that bitcoin miners are involved in

Before Bitcoins can be successfully mined, bitcoin miners have to work in the bitcoin network and be involved in the following activities:

1. Watching out for transactions

Whenever clients or users make transactions on the network, bitcoin miners have to watch out for the transactions and validate them after ensuring that the signatures are correct, and outputs that are being spent haven’t yet been spent around the time that miners are checking out transactions.

2. Maintaining the blockchain and watching out for new blocks

Bitcoin miners maintain or service the existing blockchain; they start doing so by sending out requests for other nodes to provide a history of the existing blocks on the blockchain before they (the bitcoin miners) joined the network. 

After getting the history of the existing blocks, the bitcoin miners watch out for new blocks launched on the network, validate each block, and ensure that each block contains a valid nonce.

A “nonce” is a 32-bit field that has a value usually adjusted by bitcoin miners so that the target of the network will be greater than or equal to a block’s hash.

3. Building a block

A bitcoin miner can start building their own block after getting a copy of the existing blockchain which must be up-to-date.

To start building a block, a bitcoin miner transmits transactions into a new block which is an extension of the most recent block they know; in addition, they have to ensure that each transaction included in their new block is valid.

4. Finding a nonce

Most of a miner’s work is involved in looking for a nonce that would validate their block; in fact, it’s very challenging for most miners who put in a lot of effort to find a nonce in order to get their block validated.

5. Expecting their new block to be accepted 

After a bitcoin miner finds a block, there is no guarantee that it’ll be accepted into the consensus blockchain. Luck plays a big role in blocks being accepted into the consensus blockchain; bitcoin miners have to hope that other miners consider and accept their block, and start mining on it instead of mining on their competitor’s block.

6. Earning profit

Any bitcoin miner whose block is considered and accepted will earn profit for their work. The profit is new Bitcoins and any transaction fees from transactions associated with their block.

The Bitcoin protocol requires the services of miners in order for the activities listed above to be carried out successfully; bitcoin miners’ services help to realize the goals of the Bitcoin mining process.

11 Factors that Can Determine Bitcoin Price Volatility

Since Bitcoin was introduced more than a decade ago, its price has been rapidly rising and frequently associated with high volatility. Historically speaking, the rapid changes in Bitcoin price and value have made it consistently volatile.

Like most existing digital currencies or cryptocurrencies, Bitcoin is a very volatile cryptocurrency. Many past instances have shown how volatile Bitcoin value and price have been and can be; for example, between November 2017 and December 2017, its price had increased by at least 220 percent.

But why have bitcoin price and value been so volatile? Well, the upward and downward price fluctuations and volatility of Bitcoin price on cryptocurrency exchanges are determined by many factors. This article discusses 11 factors that have determined and can still determine Bitcoin price volatility, and Bitcoin price and value around a particular time period. Now let’s get right into it; the 11 factors are as follows:

1. Search Pressures on Keywords Associated with Bitcoin, Particularly on Google Searches Made for the Word “bitcoin” (Hans Bystrom & Dominika Krygier, 2018). This conclusion was arrived at after correlations, OLS-regressions and VAR-analysis were used to analyze daily, weekly and monthly data between 2011 and 2017, and examine the link between the volatility in Bitcoin market and the volatility in other related traditional markets (gold, currency, and stock market); by using different loss functions, the research also showed that by studying Google search activity, predictions on Bitcoin price volatility can improve.

Other research works on “Google search trends and Wikipedia articles views” (Kristoufek, 2015 and Glaser et al., 2014), “Twitter sentiment analysis” (Kaminski, 2014, and Georgoula et al., 2015), and “Online communities’ reactions” (Dwyer, 2015, and Kim et al., 2016) support Hans Bystrom’s and Dominika Krygier’s (2018) conclusion that search pressures (Bitcoin’s attractiveness to people) on keywords associated with Bitcoin can determine Bitcoin price volatility.

2. Volatility in the Dollar (USD) Currency Market (Hans Bystrom & Dominika Krygier, 2018). The fluctuation in the prices of goods and services (the Euro/USD exchange rate) can create volatility in the USD currency market which can also determine Bitcoin price volatility: generally, volatility in the USD market can determine the number of dollars that would be paid to buy a Bitcoin, and this would subsequently determine Bitcoin price volatility.

3. Bitcoin Demand (Ciaian, Rajcaniova & D. Kancs, 2016). Bitcoin demand affects Bitcoin price which, subsequently, can determine its volatility depending on how high or low the price range is on a daily, weekly, monthly, yearly, or longer-term basis. Contrary to the notion that both supply and demand affect Bitcoin volatility, Ciaian, Rajcaniova & D. Kancs (2016) and Kristoufek (2015) noted that, because Bitcoin has a deterministic supply (21 million Bitcoins), only its demand can determine its price.

Georgoula et al. (2015) employed a VEC model and found out that in the long run, Bitcoin price—and subsequent volatility—is positively related to the number of Bitcoins in circulation. The more that BTC is recognized, the more that people would want to accept it, buy it, and use it to make payments.

Take This Great Opportunity Now—if Not, Whenever it Goes, Then it’s Gone!

4. Bitcoin Supply and Demand (Sana Guizani and Ines Kahloul Nafti, 2019); but demand has a more significant impact on Bitcoin price volatility and value than supply, because Bitcoin supply is limited (Ciaian et al., 2016). According to Sana Guizani and Ines Kahloul Nafti (2019), supply and demand are the major forces of the market and are also traditional determinants of the price formation of any financial asset. This notion contrasts the notion that only Bitcoin demand—as noted by Ciaian, Rajcaniova & D. Kancs (2016)—can determine Bitcoin price and subsequent volatility.

5. Changes in Prices of Oil and Gold (Wijk, 2013). Wijk proved that oil price and Nikkei index had a negative effect on Bitcoin price; subsequently, this could negatively impact Bitcoin price volatility and Bitcoin price and value around a certain time period. On the other hand, Wijk proved that the Dow Jones index had a positive effect on Bitcoin price in both short and long terms.

According to Palombizio & Morris (2012), oil price is one of the major sources of pressure on costs and demand and may result in a decrease or an increase in Bitcoin price and Bitcoin price volatility. Empirical findings in other research works have shown that there are relationships between changes in prices of gold and oil, and volatility in prices of cryptocurrencies (Teker D., Teker S., & Ozyesil M., 2020).

6. Difficulty in Mining Bitcoin (Li and Wang, 2017). Li and Wang suggested that the process of extraction, which depends on the operation and maintenance of computers, softwares, electricity, and human resources, incurs costs that influence Bitcoin price and volatility.

7. Influence of Mass Media. Mass media consists of any medium or technology used to pass information to mass audiences; it is a much wider platform than the internet which is only a part of it. Mass media includes radio, television, newspapers, magazines, and the internet. From the conclusion arrived at by Hans Bystrom and Dominika Krygier (2018), it would be easy to agree that the influence of mass media can determine Bitcoin Price volatility. Greater media coverage and acceptance of Bitcoin—which has been the case around the world—would lead to higher Bitcoin demand, and affect Bitcoin price volatility.

8. Bitcoin Arbitrage Trading and the activities of Bitcoin Traders. Bitcoin is traded across many different exchanges, and traders have different trading skills on Bitcoin arbitrage which captures slight differences in Bitcoin price across various Bitcoin exchanges and provides opportunities for a trader to buy Bitcoin at the lower price on one exchange and sell it at a higher price on another exchange.

The trading strategies employed by traders (who intend to take advantage of the price differences between exchanges) can cause changes in Bitcoin prices and determine Bitcoin price volatility. If Bitcoin is cheaper on Luno but more expensive Coinbase, then it’s likely that traders would like to buy Bitcoin on Luno and sell it on Coinbase; most times, the leverages and thin volumes on Bitcoin trading exchanges that involve such activities create sloppy fill prices that result in more losses than drive Bitcoin price downwards, and make it volatile.

9. Political Decisions taken by Governments. It is well known that political events and decisions have changed the value and price of Bitcoin, and determined Bitcoin price volatility. For example, in the not-too-distant past, the trade war between China and the USA, and the unstable relationship between Iran and the USA, has had an impact on the price of Bitcoin and determined Bitcoin price volatility.

Also, governments have been constantly changing regulations regarding Bitcoins; these circumstances have caused Bitcoin price fluctuations and made Bitcoin volatile at certain points in time; for example, in 2017 when China decided to halt the activities on several trading platforms, the price of Bitcoin plummeted. In 2018, within 24 hours after various governments in Asia made announcements concerning expected regulatory changes, there was around a hundred billion dollar drop in the cryptocurrency market.

10. Increasing Distrust in Fiat or Traditional Currency. Bitcoin price volatility, especially its rise in the long run, has been driven to a great extent by an increasing loss in confidence that people have had in conventional fiat currencies like the dollar, euro, and pound. The increasing level of distrust and loss of confidence in many economies have made people put more trust in Bitcoin and other cryptocurrencies, instead of in fiat/traditional currencies; this has affected Bitcoin price and impacted its consistent volatility. Many people have lost complete trust in their country’s currency and banking system and looked to Bitcoin as an alternative in which the value of their money can be stored, maintained, and increased.

11. Bitcoin Security Breaches and Theft. Bitcoin and many cryptocurrencies have made headlines because the platforms that stored them were vulnerable to attacks from cybercriminals who hacked the platforms’ systems, and in certain instances made them bankrupt: grand thefts occurred and lots of cryptocurrencies were stolen; these incidences fluctuated Bitcoin price and value, and affected Bitcoin price volatility. In addition, reports about thefts and losses had a greater impact on Bitcoin price volatility: usually, they raised the value of the remaining Bitcoin because of the resulting scarcity.

Bitcoin Price Prediction: Pros & Cons of Various Methods Used for Predicting Bitcoin Prices

A lot of research has been carried out on Bitcoin price prediction and the results have been used for predicting Bitcoin prices. Whenever researchers are interested in predicting the price of Bitcoin in their research, they try their best to consider all the various parameters that affect Bitcoin price or value.

When assessing various research papers on Bitcoin price prediction and the respective methodologies employed in predicting prices of Bitcoin in each research, one would easily notice that even though many research works accurately predicted Bitcoin prices, some others didn’t.

From the papers on some research works that didn’t accurately predict Bitcoin prices, it can be noticed and argued that higher time complexities are associated with inaccurate predictions; i.e., the algorithms that were used in the research works didn’t manage time to a great extent. Time complexity can be reduced—or time management can be enhanced to a great extent—by using the “Least Absolute Shrinkage Selection Operator” algorithm, also known as the LASSO algorithm.

LASSO isn’t discussed in this article, but if you’re interested in reading about an algorithm that is linked to artificial intelligence and was used to accurately predict Bitcoin prices in a particular research work, you can do so by clicking here (Bitcoin Price Prediction Using Machine Learning Algorithms, by Lekkala Sreekanth Reddy & Dr.P. Sriramya). After conducting out the research, the researchers concluded that the LASSO algorithm would be able to help customers make profits and increments.

The Advantages & Disadvantages of Methodologies Applied in Researches on Bitcoin Price Prediction

1. Title of Research Paper: Predicting Bitcoin Prices Using Deep Learning

Algorithm Applied: SVM (Support Vector Machine)

Advantages (Pros):

  • It is much more convincing to use it in high-dimensional spaces like those occupied by random vectors.
  • It works well in cases that have a clear margin of separation.
  • It is effective in cases where the number of samples is lesser than the number of dimensions.

Disadvantages (Cons):

  • It doesn’t perform to a great extent or high degree when applied to a large set of data.
  • Its performance level is low when it is applied to a noisy set of data.

2. Title of Research Paper: Bitcoin Price Prediction using Machine Learning

Algorithms Applied: Bayesian Regression and GLM/Random Forest

Advantages (Pros):

  • It makes a prediction based on information readily available on the coinMarkup cap.
  • It can easily make use of Quandl to filter any set of data by employing MAT lab properties.

Disadvantages (Cons):

  • It takes a long period of time to filter any set of data.
  • It has a low redundancy to perform a prediction.

3. Title of Research Paper: Bitcoin Volatility Forecasting with a Glimpse into Buy and Sell Orders

Algorithms Applied: LSTM (Long Short Term Memory) and ARIMA (Autoregressive Integrated Moving Average)

Advantages (Pros):

  • It makes it easy to buy and sell Bitcoins.
  • It enables transactions to be carried out comfortably.

Disadvantages (Cons):

  • It doesn’t give proof for a transaction.
  • Conversions are late.

4. Title of Research Paper: Bayesian regression and Bitcoin

Algorithm Applied: Bayesian Regression

Advantages (Pros):

  • The results of Bitcoin price prediction can be presented in terms of binary values.
  • It makes Bitcoin price prediction results to be clearly understood.

Disadvantage (Con):

  • It takes a long time for a set of data to be solved.

5. Title of Research Paper: Project-Based Learning: Predicting Bitcoin Prices using Deep Learning

Algorithms Applied: CNN (Convolutional Neural Networks) and RNN (Recurrent Neural Networks)

Advantages (Pros):

  • It provides weight sharing (through CNN) which significantly reduces the number of weights that have to be learned.
  • It enables large data set prices to be easily calculated.

Disadvantage (Con):

  • With the Convolutional Neural Networks algorithm involved, operations are significantly slower in both forward and backward directions.

References

Farokhmanesh F., & Sadeghi M. T. (2019). “Deep Feature Selection using an Enhanced Sparse Group Lasso Algorithm”. 2019, 27th Iranian Conference on Electrical Engineering (ICEE).

Huisu Jang, & Jaewook Lee, “An Empirical Study on Modelling and Prediction of Bitcoin Prices with Bayesian Neural Networks based on Blockchain Information”, in IEEE Early Access Articles, 2017, vol. 99, pp. 1–1.

Kalpanasonika, Sayasri S., Vinothini, & Suga Priya, “Bitcoin Cost Prediction using Deep Neural Network Technique”, IEEE 2018.

S. Yogeshwaran, Piyush Maheshwari & Maninder Jeet Kaur, “Project-Based Learning: Predicting Bitcoin Prices using Deep Learning”, Amity University Dubai Dubai, UAE; IEEE 2019.

Siddhi Velankar, Sakshi Valecha & Shreya Maji, “Bitcoin Price Prediction using Machine Learning”, Department of Electronics & Telecommunication, Pune Institute of Computer Technology, Pune, Maharashtra, India: 409–415.

Tian Guo, Albert Bifet, & Nino Antulov-Fantulin, “Bitcoin Volatility Forecasting with a Glimpse into Buy and Sell Orders”; IEEE 2018.

Take This Great Opportunity Now—if Not, Whenever it Goes, Then it’s Gone!

This article introduces a digital currency called “Pi coin” which was launched on March 14, 2019; since then, it has been easily mined for free on the Pi Network App—a 100% free opportunity that can make you become a millionaire in the future. The Pi network presents the world with a great and unbelievably easy opportunity to mine and save Pi coins—the first cryptocurrency to be mined directly from mobile phones, instead of from computers and supercomputers.

(Please, make sure read through to the end of this highly valuable article; you will see the link to download the Pi Network app and use an invitation code along with your Facebook account to register and start earning Pi coins like the rest of Pi network’s 12+ million registered users; also, you will see another link/invitation code to join a new and different cryptocurrency phone-mining network (Bee Network App) which—at the time this article was published—had already amassed 3+ million users in less than 2 months.)

The Pi Network App is a mobile mining technology that allows registered users to mine Pi coins without draining data and phone batteries. Even when the Pi Network App is closed, or users’ phones are off, they are still able to mine Pi coins; however, to continuously mine Pi coins daily, once every day—or specifically, after every 24 hours—users have to open their Pi Network apps and tap the lightning or “Tap to earn” button.

While it has been quite difficult for most cryptocurrencies (like Bitcoin, Ethereum, etc.) to be accessed, mined, and used by everyday people, the Pi Network makes it easy to access and mine new Pi coins/cryptocurrency and puts the power of cryptocurrency directly into the palms of people’s hands. The Pi coin and its network is a 100% free opportunity that can make you a millionaire in the future.

But Before we come back to Pi coin, let’s go back to the very beginning of Bitcoin—the first cryptocurrency which, at the time of writing, was around $40,000 per unit of Bitcoin

When Satoshi Nakamoto introduced Bitcoin to the public in 2008, a high percentage of the world’s population—probably up to 99%—didn’t give a damn about Bitcoin, even though it was more accessible around and shortly after time, and it was much easier to mine then when its value was zero Dollars.

Satoshi Nakamoto introduced Bitcoin as “A Peer-to-Peer Electronic Cash System” that doesn’t require a third party; he implemented the bitcoin software as open-source code and released Bitcoins in January 2009. Nakamoto mined the first block of Bitcoin on January 3, 2009; it was named the “genesis block”—”Block 0”. Nakamoto’s identity is still quite unknown, and the identity of the person or people who invented the technology behind Bitcoin is still a mystery. After inventing Bitcoin, and watching it rise in value over 11 years, in January 2021 when the value of 1 Bitcoin rose to $39,000, it was believed that Nakamoto—who had personally mined over 1 million Bitcoins several years ago—had Bitcoins that were worth over $39 billion, making him possibly the 17th richest individual in the world at the time.

It is interesting to note that until today, there are no physical Bitcoins, and electronic Bitcoin transactions and balances are preserved on a public ledger that can be accessed by any concerned individual. Unlike fiat currencies, Bitcoins are not issued by any banks or governments; despite this, Bitcoin is popular, is still gaining more popularity, and has inspired the creation of hundreds of other cryptocurrencies collectively known as Altcoins.

Hal Finney was the first person to receive Bitcoins when the first Bitcoin transaction took place: after Hal Finney downloaded and installed Bitcoin software, on January 12, 2009, his Bitcoin wallet received 10 Bitcoins from Nakamoto. A Bitcoin wallet—somewhat like a bank account—is a virtual or an electronic Bitcoin account where the owner stores Bitcoin.

The first time Bitcoin was used in a commercial transaction was in 2010, at a time when 1 Bitcoin was equal to $0.0041, Laszlo Hanyecz bought 2 pizzas for 10,000 Bitcoins; implying that 10,000 Bitcoins was equal to $41. Today, 10,000 Bitcoins is well over $300 million.

In 2009, a Norwegian man who bought 5,000 Bitcoins, forgot about them. (At the time, the 5,000 Bitcoins he bought were worth only $27 in his Bitcoin wallet). He discovered four years later—in October 2013—that the value of the Bitcoins he had forgotten about, shot up from $27 to $980,000: https://amp.theguardian.com/technology/2015/dec/09/bitcoin-forgotten-currency-norway-oslo-home

After hearing about the rise in the value of Bitcoins, the Norwegian logged into his Bitcoin wallet and was surprised at the amount of money he saw: $980,000—instead of $27. He sold a portion of his Bitcoins and, with the money, he bought an apartment in an expensive part of Oslo, Norway. All thanks to the surging rise in the value of Bitcoin which has often been overlooked by many people.

The real-life story of Erik Finman is a truly inspiring one: In 2011, at the age of 12, when 1 Bitcoin was around $10, he bought 100 Bitcoins for $1,000. Between 2011 and 2019, Erik Finman grew the Bitcoins in his electronic wallet, from 100 Bitcoins (worth $1,000 in 2011) to 446 Bitcoins. As a result of the rise in Bitcoins from $10 per Bitcoin in 2011, to around $10,000 per Bitcoin, Erik Finman’s 446 Bitcoins were worth approximately $4.5 million in August 2019.

It is on record that Nakamoto had mined over 1 million Bitcoins before handing over the network key and control to Gavin Andresen. Although the value of Bitcoin has been rising and falling over the years, its value has been generally rising. At Bitcoin’s inception in 2009 when it had no value, nobody thought its value would reach $20,000 in 2017, and $40,000 on a particular day in January 2021. Generally speaking, within about 11 years, Bitcoin’s value has risen from zero Dollars to almost $40,000 per Bitcoin.

There is a New and Easier Opportunity: Pi coin—Join It NOW, not later!

You will be making a wise decision if you start mining Pi coin today because it is still 100% free to mine, and would cost you absolutely nothing. Many people who paid some attention to Bitcoin during its early days or years, mined Bitcoins and have gone on to become millionaires and billionaires. Today it is more difficult and almost too late to become an instant millionaire with Bitcoin. Why? Because it’s more difficult to mine Bitcoin, and more expensive to buy and invest in it.

But today you have another opportunity which is Pi coin. One exciting thing about life is that the universe always provides big opportunities through intelligent people, even when hope—or, even all hope—is lost. Download the Pi App here, register on the Pi Network by using your Facebook account or phone number, and enter/use “Terihagh1” as your invitation or referral code; alternatively, you can follow the steps at the ending part of this article.

The Pi coin was developed by a team of Stanford University graduates which consists of only 3 members; the names of its developers are Dr. Nicolas Kokkalis (Pi Network’s Head of Technologies), Dr. Chengdiao Fan (Pi Network’s Head of Product), and Vincent McPhillip (Pi Network’s Head of Community). When the Pi Network’s live net (mainnet) is launched, as scheduled to occur this year, all the coins mined by users will migrate to live net, and Pi coins will have a value in the market, and thus become officially marketable. At the time this article was published, Pi Network community had over 12+ million users/miners which it amassed in less than 2 years.

“Pi Economy” members within the “Pi Lifestyle App” (which can be downloaded from Google Play Store) have been trading goods and services at an exchange rate of 1 Pi coin = $100. Based on the plans being laid down on the Pi network, some users believe that when the Pi mainnet (Pi Blockchain) is launched, as expected later this year, 1 Pi coin may have a value equivalent to or more than $200. If this happens, then a user who had mined 5,000 Pi coins (in the Pi Network App), will have a Pi wallet balance of $1 million on mainnet.

Nobody knows, but the new Pi coin/cryptocurrency could become even better, more popular, and even as expensive or more expensive than Bitcoin. The technology behind Pi coin mining is based on a new algorithm that doesn’t harm the environment, whereas mining Bitcoin does more harm to the environment.

Although Pi coin is waiting to be officially launched on exchanges this year, the network’s members have already started increasing the awareness and value of Pi cryptocurrency by using Pi coins to purchase goods and services online (websites) and on platforms in the Pi Lifestyle App which can be downloaded from Google Play Store.

Click on the link below, and click on the menu at the top left corner to view the available items (that can be bought with Pi coins) under the following categories: digitals; kitchen & garden; books & stationary; health, beauty & cosmetics; food & drinks, fashion & clothes; vehicles & industrial equipment; toys and baby supplies: https://pinetworkmarket.com/. Also, click on the link below to open a web page, then click on the menu at the top left corner to see what is available: https://thepilifestylemarket.com/.

Members of Pi network community are committed to using Pi in such a way that when the Pi cryptocurrency is officially launched, 1 Pi could have a value that would be worth several hundreds or thousands of Dollars.

Pi Network presents an unbelievable opportunity for everyone who is alive; Pi Network makes it free and easy to mine Pi coins.  But this opportunity won’t last forever. If you don’t start mining Pi coins today, you would be missing out on a big opportunity that may never come back. The Pi coin and its network is a 100% free opportunity that can make you a millionaire in the future.

If you haven’t installed the Pi app on your phone yet, do it now by taking the following steps:

Step (i)

Click here and click “Download”; after registering with your Facebook account or phone number, use “Terihagh1” as your invitation code. Alternatively, you can download the Pi Network app from Play Store or App Store, and use “Terihagh1” as your invitation code.

Step (ii)

When asked to verify your identity, use either your Facebook account or mobile number; choose one of the two options.

Step (iii)

Set up your password. I recommend that you use a long password which will be easier for you to remember, and difficult for others to guess. Note that for you to be able to claim your Pi coins in the future, you must verify your phone number.

Step (iv)

Choose your username which you will use as your referral code whenever you are inviting others to join the Pi network to mine Pi coins.

Step (v)

When asked for your invitation code, use/enter “Terihagh1”.

Note: In order to continue mining Pi daily, after every 24 hours, users have to open their Pi Network apps and tap the lightning or “Tap to earn” button. The Pi Network app is set up this way to ensure that members are active and contributing to the Pi Network. Do not forget to verify your phone number by following the available instructions on the Pi app.

Join a New Cryptocurrency Phone-mining App (Bee Network)

Click here to download the BEE Network app, and click “Download”; after registering with your Facebook account, use “terihagh1” as your invitation code. Alternatively, you can download the Bee Network app from Play Store or App Store, and use “teriagh1” as your invitation code. In order to continuously mine Bee coins daily, once every day—or specifically, after every 24 hours—users have to open their Bee Network apps and tap the bee or “Tap to earn” button.

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Sign up & Mine/Earn Free Pi Cryptocurrency (Predicted to Become Much Greater than the Dollar)

Digital currencies are fast becoming very popular among traders in the whole wide world. The algorithms that mine cryptocurrencies are attracting more and more people, and becoming more and more easier to access.

The world is increasingly accepting and using cryptocurrencies which are all becoming far more valuable than fiat currencies. Since the Pi cryptocurrency is a relatively new one, you might not have heard much about it, especially not as much as you might have heard about Bitcoin, Ethereum, Tether, XRP, Litecoin, Bitcoin Cash, Binance Coin, and many other cryptocurrencies.

The major difference between mining Pi cryptocurrency/coins, and mining other cryptocurrencies, is that Pi coins can be mined directly from phones, while the other cryptocurrencies require computers and a lot of electricity. In reality, Pi cryptocurrency is the first digital currency that has been/is being mined directly from phones. It’s interesting to note that the Pi app, which is used for mining Pi coins/currency, does not drain data and phone batteries; furthermore, regardless of the type of phone/device used, the mining capacity is the same for all registered members.

In this article, we discuss the following:

1. The Definition of Pi Cryptocurrency

2. The Developers of Pi Cryptocurrency

3. How you Can Mine/Earn Pi Coins

4. How to Register in the Pi Network

5. Timeline of events in the Pi Network

6. Predicted Future Value of the Pi Cryptocurrency

Download the Pi App here, register by using your Facebook account or phone number, and enter/use “Terihagh1” as your invitation or referral code.

1. The Definition of Pi Cryptocurrency

According to Pi Network, Pi currency is not free money: Pi is a long-term project whose success will depend on the collective contributions of all its registered members. Pi is a cryptocurrency for everyday people, run by everyday people, and can be “mined” (or earned) from members’ phones. The Pi cryptocurrency is a digital monies that is used, maintained, and secured by the Pi network community, instead of banks and governments.

Today, you can start mining/earning Pi by growing Pi’s trusted network, and helping to secure the currency. While it has been quite difficult for most cryptocurrencies (like Bitcoin, Ethereum, etc.) to be accessed, mined and used by everyday people, it has not been difficult to access and mine which is a Pi currency puts the power of cryptocurrency directly into the palms of people’s hands.

The Pi cryptocurrency is an eco-friendly digital currency that provides users with a decentralized network where they can mine/earn coins by using their phones.

2. The Developers of Pi Cryptocurrency

Pi was and is still being developed by a team of Stanford graduates, which consists of only 3 members. The names of the developers are: Dr. Nicolas Kokkalis, Dr. Chengdiao Fan, and Vincent McPhillip.

3. How you Can Mine/Earn Pi Coins

(i) By Invitation and using the Pi Mobile App

You can earn Pi coins by installing the app and mining the coins. In order to join the Pi network, click here, register by using your Facebook account or phone number, and enter/use “Terihagh1” as your invitation code.

During Pi network’s Testnet phase, the Pi team has been focussing on improving the network’s users’ experiences. Once the live net is launched, all the coins mined by users will migrate to the live net.

Note that in order to continue mining Pi on a daily basis, after every 24 hours, users have to open their Pi apps and click on the “Tap to earn!” button. The Pi app is set up this way to ensure that members are active and contributing to the Pi Network.

(ii) From Laptop/Desktop

Recently, the Pi team released the Pi Node Beta through which users can access their Pi accounts from laptops/desktops. Also, members have been asked to join the Pi Testnet. Once the Testnet is live, users will be able to access and mine Pi coins/cryptocurrency from their laptops and desktops.

4. How to Register in the Pi Network

To register in the Pi Network, follow the steps indicated further below. In case you aren’t aware, only referrals are allowed to register. (Note that, after registering, you will be given 1 Pi.)

Step (i)

Click here and click “Download”; after registering with your Facebook account or phone number, use “Terihagh1” as your invitation code. Alternatively, you can download the Pi Network app from Play Store or App Store, and use “Terihagh1” as your invitation code.

Step (ii)

When you’re asked to verify your identity, use either your Facebook account or mobile number; choose one of the two options.

Step (iii)

Set up your password. I recommend that you use a long password which will be easier for you to remember, and difficult for others to guess. Note that in order for you to be able to claim your Pi coins in the future, you must verify your phone number.

Step (iv)

Choose your username which you will use as your referral code whenever you are inviting others to join the Pi network and mine Pi coins.

Step (v)

When you are asked for your invitation code, use/enter “Terihagh1”.

5. Timeline of events in Pi Network

On March 14, 2019, the Pi cryptocurrency was officially released, and on May 16, 2019, 6000 users were connected. Then, on May 23, 2019, the Pi network had 10,000 users, and the mining rate was halved. The next halving occurred after the network reached 100,000 users.

On June 5, 2019, the Pi team released their bios on the Pi app, and users no longer had to worry that the Pi network would have an anonymous team of developers just like Bitcoin seemed to have. As earlier stated, the Pi team consists of three people: Dr. Nicolas Kokkalis, Dr. Chengdiao Fan, and Vincent McPhillip.

On June 28, 2019, the Pi network reached 75,000 users; then, on July 6, 2019, the Pi network had 100,000 active users, and the mining rate was halved. On August 2, 2019, there were 200,000 active Pi users! At the time, the Pi network had surpassed the Electroneum cloud mining app which had 166,798 active miners.

On August 29, 2019, Pi Network amassed 300,000 active users, and on September 25, 2019, Pi network had 450,000 active users/miners. Then, on October 4, 2019, the Pi network had 550,000 users, and on October 31, 2019, the Pi network had over 1 million users!

On February 25, 2020, the Pi network had over 3.5 million active users. Ever since, the number of registered users on the Pi network has continued to increase; as of December 27, 2020, which is around the time this article was published, Pi Network had over 10 million+ members/miners.

6. Predicted Future Value of the Pi Cryptocurrency

If we consider the events in the previous section (timeline of events in the Pi Network), the future of the Pi cryptocurrency looks very promising, even much more promising than other cryptocurrencies.

On April 26, 2020, the value of 1 Pi was reported to be equal to $0.003111; this is the same value that was predicted by experts. The reason for the low value was because Pi coin/currency had just begun its initial mining phase, and couldn’t yet be traded for real money. It is believed that once the currency is released into the market, the price will gradually continue to increase.

As of December 27, 2020 (around the time this article was published), it was reported that 1 Pi coin was equal to $0.007077. Some users have stated that when the Pi coin is launched, as expected in 2021, 1 Pi coin may have a value close to $200 or more! This implies that if a user had mined 500 coins in the Pi Network App, they would have a Pi wallet balance of $100,000.

Other sources have stated that by the year 2025, the price of 1 Pi coin will be between $5 to $7.5; also, it has been projected that in 2030, the price of 1 Pi will be between $52 and $80. It might interest you to note that the Pi network community is committed to increasing the value of 1 Pi to as much as $1000.

Although the value of Pi currency is expected to rise in the future, its actual value(s) will be decided by the financial market after Pi cryptocurrency is officially launched for trading, buying and selling.

Since there won’t be anything to lose, it will be worthwhile if you download the Pi Network app and immediately start mining Pi coins/cryptocurrency for free. Click here to download the Pi Network app and register by using your Facebook account or phone number, then enter/use “Terihagh1” as your invitation code.

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Earn Free Bitcoins Every Hour & a Chance to Win Thousands of Dollars Every Week

How to make money by browsing with CryptoTab Browser

Earn Free Bitcoins Every Hour & a Chance to Win Thousands of Dollars Every Week

Until about four years ago when I signed up with Freebitco.in, I had never imagined I could earn the current world’s strongest currency (the Bitcoin) for free, every hour and day.

By simply clicking “ROLL” every hour on Freebitco.in, you can earn free Bitcoins every hour (as indicated on a timer in each user’s account), and a maximum amount of Bitcoins every day without investing any money; the only thing you have invest is time by spinning or clicking “ROLL” after every one-hour interval, with or without entering Captchas.

Freebitco.in pays out a small portion of Bitcoins—called Satoshis—as a reward to registered users of its website. Although the Satoshis wouldn’t make you instantly rich, you can accumulate them and earn you a significant number of Bitcoins quickly without purchasing any of them; also, the free tickets you could get from earning the Satoshis can make it possible for you to take part in a lottery every week, and give you a chance of winning thousands of Dollars every week—not only one week.

Along with the free Bitcoins or Satoshis you could win every hour, you could also win 2 lottery tickets after every one-hour interval when you spin or click “ROLL”. At the end of each week, your accumulated tickets would qualify you for a chance of winning Bitcoins worth thousands of dollars in the Freebitco.in lottery.

Sign up with Freebitco.in and earn free Bitcoin every hour.

What is Bitcoin?

In case you don’t know much about Bitcoin, but are interested in knowing, search for information about it on Google or any other search engine; read about the year it was created and how it has grown in strength and popularity over the years. As of the time of publishing this post, one Bitcoin (BTC) was more than $19,000.00.

What inspired me to take interest in Bitcoins in 2016 was the story of a Norwegian man who had bought 5,000 Bitcoins (which was about $27 in 2009) and forgot about them, only to discover in October 2013—four years later—that the value of the Bitcoins he had forgotten about, had risen up to $980,000 or £886,000. You can read about that here: https://amp.theguardian.com/technology/2015/dec/09/bitcoin-forgotten-currency-norway-oslo-home.

After hearing about the rise in the value of Bitcoins, the Norwegian logged into his Bitcoin wallet and was surprised at the amount of money he saw: $980,000 or £886,000—instead of $27. He sold a portion of his Bitcoins and with the money he bought an apartment in an expensive part of Oslo, Norway. All thanks to the surging rise in the value of Bitcoins which was so often overlooked in the past.

Sign up with Freebitco.in and earn free Bitcoin every hour.

In 2019, the same 5,000 BTC that was equal to $27 in 2009, and $980,000 in 2013, was well over $99 million; so Bitcoin is something worth having, especially if you can earn them for free on Freebitco.in.

You Need a Bitcoin Wallet to Withdraw Bitcoins When they Reach a Minimum Amount

If you are from Nigeria, South Africa, Indonesia, Malaysia, Singapore, and need a Bitcoin wallet, you can get one from Luno (formerly BitX) for free. Click here and sign up.

If you are from any part of the world, including the five nations I just listed in the previous paragraph, you can get a free Bitcoin wallet from the most trusted giant in the business: the “Blockchain”. Click here and sign up.

Every country that allows Bitcoin trading transactions has exchangers who usually buy Bitcoins and send the equivalent (in local currency) into the local bank account of the person or people that sell their Bitcoins.

Why You Should Sign up With Freebitco.in to Earn Free Bitcoin Every Hour

  • FreeBitco.in is a genuine Bitcoin faucet that gives you free Bitcoins every hour without you having to invest any money. It presents you with a chance to be lucky enough to win thousands of Dollars in Bitcoin every week.
  • On FreeBitco.in, you can win up to $200 every hour by just clicking “ROLL” (i.e., playing free spins), and playing simple Hi-Lo games.
  • FreeBitco.in has 40 million+ active users. Its popularity has been growing rapidly and has made it one of the Bitcoin industry’s leading Bitcoin gaming platforms. Since 2013, Freebitco.in has been paying its users 100% of their earnings from its site; it’s the world’s oldest existing Bitcoin faucet which has helped registered users to win between 130 Satoshis and 0.13 BTC (about $2,400) every hour.
  • You can win a Lamborghini Huracan if you partake in FreeBitco.in’s Golden Ticket Contest. It’s very simple to get into the race for a Lamborghini if you complete a few actions on Freebitco.in‘s site and earn a Golden Ticket. In order to get a higher chance of winning a Lamborghini, you have to collect as many Golden Tickets as you can. The Golden Ticket Contest is the longest-running contest on Freebitco.in.
  • You can multiply your Bitcoin on Freebitco.in by playing the Multiply BTC game. The “Multiply BTC” game can get you a lot of Bitcoins within a brief period of time. You have to only bet on Multiply BTC for every 1000 Satoshis. After betting, you will an increase in your freeroll, but you have to take into account the price of BTC on the market during the time of betting. Through betting, you can multiply your Bitcoins up to a maximum of 4,750 times.
  • FreeBitco.in has a Referral Contest in which players or users can get their friends and family members to play the Hi-Lo dice game and stand chances of winning $10,900 every month. Each referral contest begins on the first day of each month and ends on the last day of each month. In order to win the Referral Contest prize, players have to be among one of the top 10 users based on the combined wagering volume of their referrals for the month. All prizes are converted to Bitcoins and deposited directly into the user’s Freebitco.in wallet from which it can be withdrawn.
  • Freebitco.in has a Wagering Contest: Wagering involves betting on the outcome of a sporting event or a political event. Based on the bets that are made by players, for each event, a prize of $10,000 is distributed between the daily top 30 players. If a player ranks among the top 10 users, based on wagering volume, they can win the contest along with up to $21,600 (in Bitcoin) every month.
  • Freebitco.in has daily, weekly, and monthly special wagering contests. Prizes are given in Bitcoins and daily prizes are paid within 24 hours. The player who wagers (stakes the highest amount of money) will win the largest part of the prize.
  • If you deposit Bitcoins in your Freebitco.in account or wallet, they will give you a 4.08% annual interest on your balance, which will be compounded daily. FreeBitco.in wallets are not just wallets; they can earn a significant number of Bitcoins as interest on account balances every day. The only thing each user needs to do is maintain a minimum balance of 30,000 Satoshis (0.0003 Bitcoin) in their account.
  • On Freebitco.in, you can play a free Bitcoin lottery and stand a chance of winning up to $4,500 in Bitcoin. To be part of the lottery, sign up on Freebitco.in and earn tickets, or buy lottery tickets with the Satoshis you earn by spinning or rolling. There are several ways to get lucky tickets, and once you do, the FeeBitco.in’s system will automatically enter you into the lottery draw.
  • Freebitco.in has a Referrals program that generates commissions for the referrer of 50% of any free Bitcoin won on FreeBitco.in. The referrer will also get a 0.25% of any wager in the Multiply BTC Hi-Lo game along with 25% of the daily interest earned by referrals. After signing up for Freebitco.in, you can also refer your friends to the site and get 50% of whatever they win in addition to getting free lottery tickets every time they play.

Sign up with Freebitco.in and earn free Bitcoin every hour

Feel free to ask any questions (in the comment section) that relate to the website and its variety of programs which are targeted at helping registered users earn free Bitcoins every hour and free tickets that can give each of them a chance of winning thousands of dollars every week.

Generally, if you would like to know much about the website and its programs, click the menu (three horizontal lines) located at the top right corner of the website, and attentively read each item on it.

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How to Make Money by Browsing with CryptoTab Browser

Until about two months ago, I never imagined I could use a browser to browse make money at the same time, especially in the world’s strongest currency: the “Bitcoin”. As you might have known, at the time of writing, one Bitcoin (BTC) is currently equal to about $8,764.

In case you don’t know much about Bitcoin but are interested in knowing more, you can search for information about it on Google or any other search engine; read about the year it was created and how it has grown in strength and popularity over the years.

Click here, install CryptoTab browser and start browsing and earning Bitcoins immediately

What inspired me to take interest in Bitcoins in 2016 was the story of a Norwegian man who bought 5,000 Bitcoins (which was about $27 in 2009) and forgot about them, only to discover in October 2013—four years later—that the value of his forgotten Bitcoins had shot up to $980,000 or £886,000. You can read about that here.

In 2019, the same 5,000 BTC that was equal to $27 in 2009, and $980,000 in 2013, is now equal to $43,820,000.

After hearing about the rise in the value of Bitcoins, the Norwegian figured out the password to his Bitcoin wallet, opened it, and was surprised at what he saw, but sold a portion of his Bitcoins. With the money, he bought an apartment in an expensive part of Oslo, Norway. All thanks to the surging rise in the value of Bitcoin which has often been overlooked in the past.

This is a screenshot of the all-time stats for the rise and fall of Bitcoin as shown in my Bitcoin wallet (similar to an online/offline bank account) which shows the official and current rate of Bitcoin (BTC) to Nigerian Naira (NGN): currently, 1 BTC = NGN 3,120,001 = $8,764.

1_Bitcoin all-time stats

When I started using a Bitcoin wallet to buy and invest in Bitcoin online businesses a few years ago, I earned quite a good amount of money, and it helped a lot in many areas of my life. At different times, I earned between hundreds of dollars and a few thousand dollars. I never wanted to take greater risks when investing. At times it was risky to invest.

In 2017 I started investing in Bitcoin on some websites and earning. At the time, the rate of Bitcoin to US Dollar was around 1 BTC = $1,300, or NGN 460,000 (Nigerian Naira). Mind you, in 2015 the rate was as low as 1 BTC = NGN 49,000; while in 2016 it was around 1 BTC = NGN 88,000.

Bitcoin has been rising and falling, but generally, it has always been rising. In 2018 it rose to an all-time high of 1 BTC = over $10,000 = over NGN 3,500,000; while in January 2019 it dropped to a rate of 1 BTC = NGN 1.3 million, and in November it has been around 1 BTC = NGN 3.12 million.

I actually made money from Bitcoin online businesses in the past, especially in 2017—but I didn’t make it from browsing. I made it from investing in websites that traded Bitcoins and gave out interest to registered members; the interest rate depended on the amount of money each user or registered member invested.

Anyone can actually make money in Bitcoin while browsing on CryptoTab browser by searching for favorite websites and videos or doing anything interesting. There is no compulsion when you already love something that is as interesting and adventurous as browsing or surfing the internet.

You can make much greater money with CryptoTab browser if you refer people (get referrals) like I recently did after publishing an article titled: “How to make money immediately with your social media accounts or blogs”.

After publishing and republishing the article a number of times, a lot of people signed up, and I have already earned more from an accumulated percentage of my referrals earnings than I’ve made by personally using shortened URLs from Adfly.

For the benefit of those who haven’t used or seen a Bitcoin wallet, or statement of a Bitcoin transaction, the following screenshots of my Bitcoin wallet have been attached to show how a typical Bitcoin wallet transaction statement appears whenever I receive Bitcoins:

1_How a Bitcoin transaction statement looks like

2_How bitcoin transactions look

The screenshots below show a series of transactions for the Bitcoins which I earned daily and was receiving from Bitcoin investment websites I registered with in the past. They usually sent Bitcoins straight into my two Bitcoin wallets on Luno (formerly BitX) and Blockchain respectively:

3_received bitcoins

4_Received Bitcoins

7_blockchain account

You can use the same time you usually use for browsing, to also make money by browsing on CryptoTab Browser and earning in the world’s strongest currency—the “Bitcoin”

If you are from Nigeria, South Africa, Indonesia, Malaysia, Singapore, and need a Bitcoin wallet, you can get one from Luno (formerly BitX) for free. Click here and sign up.

If you are from any part of the world, including the five nations I just listed in the previous paragraph, you can get a free Bitcoin wallet from the most trusted giant in the business: the “Blockchain”. Sign up here.

Every country that allows Bitcoin trading transactions has exchangers who usually buy Bitcoins and send the equivalent (in local currency) into the local bank account of the person or people that sell Bitcoins. This is a screenshot of Bitcoins that I sold in Nigeria at a certain time in the past; the equivalent in Naira (NGN) was sent to my local bank account.

5_sold bitcoins

Instead of taking risks to invest in Bitcoin online trading businesses, you could use your time (like you usually do whenever you browse the internet) to browse on CryptoTab browser and earn Bitcoins.

If you would like to use this great opportunity and make money from the world’s strongest currency while doing what you like doing best online—surfing—then click here and get CryptoTab browser which is the world’s first browser to have Bitcoin mining features, widely used by more than 9 million people across the world!

If you are really interested, don’t waste time; click here and download CryptoTab browser on the page that would open. There are CrytoTab browsers for Windows, android phones (Google), or Apple phones and tablets (Apple Inc.)—depending on your operating system.

6_cryptotab browser

Before downloading and using CryptoTab browser, it’s important to note that besides making money, CryptoTab Browser is a free lightweight browser that has additional functionality that can mine and earn Bitcoins for you, and still make your browsing experience fast and comfortable.

How to install CryptoTab Browser

CryptoTab Browser is available on its website here. You may follow these instructions in order to install it:

  • Download the installation file
  • If prompted, click “Run” or “Save”
  • If you chose “Save”, double-click “download” in order to start installing
  • Start your new CryptoTab browser.

After you successfully install the browser, you will be asked to sign in with your Google account in order to start browsing and earning Bitcoins.

(Featured Image Credit: Pixabay.com.)