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5 Crypto Trading Tips You’ll Love
At the initial stage, many experienced market participants are watching their colleagues’ hobby for digital money, which will pass in a short time. Virtual money that does not have real values, is not material incarnations, even now perceived by sceptics as a large-scale scam or a toy for visionaries.
Nevertheless, gradually the advantages of virtual payment instruments and technologies are becoming more accessible for people who were initially skeptical of cryptocurrencies. Virtual coin owners can easily make payments around the world. The received intangible money, in turn, can convert funds into the right currency using special exchanges.
Tip #1: Trade as carefully as possible.
Any investment is a risk, analysts say. Cryptocurrency is the same risky direction of investment as any other market sector. However, the risks of investing in Bitcoin are higher than the risks of investing in stocks or commodities. The cryptocurrency market is still very young, so a trader must understand the danger that this or that step carries to his funds.
Never invest all your funds in Bitcoin at once. This can not be done even if you are tempted to get a huge profit. Indeed, Bitcoin has risen in price recently. However, in the first stage, you can only invest part of your money. The remaining funds can be invested in other cryptocurrencies. After a certain time, you can invest in Bitcoin even more, but also not in a hurry, but think over each step as much as possible.
Tip #2: Invest what you can lose
No matter how trite this advice may sound, it is extremely archival. Have a good salary, and the loss of $ 500 will not cause serious damage to your finances and will not cause family quarrels? Great: you can safely invest them in trading. If this is your salary for the last couple of months and, having lost this money, you will have nothing to buy food … Obviously, in this case – not the most sensible waste of money. Investing too much money in a single transaction can also do more harm than good. The fear of losing a rather large amount can seize a trader, which will most likely lead to a series of fatal actions. You are more likely to be led by the market or the crowd, making mistakes.
Tip #3: No need to invest blindly
There will always be scammers who want to make money on new investors. They will recommend you to buy an ICO token with the promised hundredfold growth in a few months. A reasonable investor will always make decisions and carry out analysis on his own in order to assign responsibility for the achieved results only to himself.
Tip #4: Think with your head
In the Telegram and other resources, there is enough information that promises fabulous profits to traders. Trading signals, of course, are efficient and timely, many of them really help to make money, but you should not blindly rely only on someone’s word. A reckless decision that can cost you dearly. Any professional trader, even having “caught” a promising signal, before buying a coin according to a third-party recommendation, will conduct his own mini-research of the asset in which he is going to invest. In addition to studying the forums, the information in the media and open sources, it would not be superfluous to review the Whitepaper project and consult with experts, if any.
Tip #5: Invest not only in cryptocurrency but also in traditional assets.
A professional trader will never invest all his money in risky assets. A novice investor must take into account all risk factors and invest his money not only in bitcoins but also in stocks and bonds. Thus, you can get a guaranteed income and minimize losses that will occur if you make a wrong investment. Investors like to say that it’s wrong to put all your eggs in one basket. Therefore, a novice investor should take into account such advice when building his strategy.
What Are Non-Fungible Tokens?
It is a virtual token that you create in order to prove authenticity and the right to own an asset using cryptography. For example, if you have a virtual property – a virtual work of art, you can create a non-interchangeable token to tokenize the piece. The NFT that you now have reflects that ownership of the work belongs to you. It is not interchangeable since your work is unique. NFT is stored on the blockchain as your property.
What are some examples of non-fungible products?
When it can be interchangeable (in this case a token), it can be replaced by something identical. For example, a banknote worth $ 1 is no different from other banknotes of the same denomination. If you are a brief acquaintance with the dollar, it is unlikely that you will return to it. Items that cannot be replaced even by identical ones. An example is a plane ticket. You will not be able to board an aircraft with someone else’s ticket.
How are non-fungible tokens different?
They can offer their holders unique characteristics that make coins very rare. Most cryptocurrencies (including Bitcoin) have fully interchangeable coins. For the Altcoins, the ERC-20 standard created on the basis of Ethereum is most often used.
For unique tokens, there is also a solution – ERC721. This standard can be compared with baseball cards. Each card has unique information, while the card itself can be very rare. By the way, the ERC-721 is already used by baseball teams.
Are unique tokens needed at all?
The world is gradually rejecting the paper, and supporters of unique tokens believe that they will be of interest not only to collectors.
For example, they can be used as a reliable and immutable counterpart of birth certificates, university diplomas, guarantee certificates, and identity cards, as well as documents confirming the ownership of real estate and art objects.
In this case, the physically existing assets will be properly digitized and placed in a cryptocurrency wallet, where they will be kept safe, protected from tampering and falsification attempts by third parties.
What are the pros and cons of non-fungible tokens?
ERC-721 is not perfect, like ERC-20 this standard has its drawbacks. These tokens have all the advantages of ordinary altcoins based on Ethereum, which we wrote about earlier. For example, unique tokens can help transfer almost any asset to the blockchain with one hundred percent protection against any attacks and hacks.
Unfortunately, there are also disadvantages. ERC-721 is a relatively new standard, so unique token transactions last longer than ordinary token transactions. In addition, developing an ecosystem that would make collectible items on the blockchain meaningful is rather difficult.
Is there any other uses for the ERC-721?
Many crypto enthusiasts believe that this standard can be used not only for collecting.
For example, with the help of unique tokens, one could store birth certificates, diplomas, contracts and identity documents. You can even token objects of art and property.
How are the unique tokens created?
Each developer can make his project completely from scratch, but it is more rational to use ready-made standardized solutions.
At the moment, the development of a decentralized application is quite a costly process, which at the release stage may not pay off at all. In addition, the release of its own unique tokens leads to confusion on the crypto market.
What Are ICO Bounties?
In pursuit of new investors, the organizers of the primary placements of coins tried different ways: they placed advertisements in social networks and search engines (alas, now this method is practically unavailable), started topics on specialized forums and finally offered a kind of “partner programs” on mutually beneficial terms. The Bounty can be attributed to the last and quite successful marketing move.
Initially, the concept came from the world of computer games and much less romantic everyday life. Bounty is a reward for performing a specific task. So, in reality, bounty-hunters (they are also “bounty hunters”) are engaged in capturing criminals, executing government orders where there are not enough powers or powers of the relevant bodies.
Bounty ICO: Motivation and Technology
Recently, gamification of processes has become a popular phenomenon, applicable in many areas – from retail to healthcare. It is important to understand that the concept of “gamification” does not equate to the game as such, rather it inherits its certain principles. For example – rewards for completing quests.
Why does the project need bounty?
Today, only those who are not connected to the Internet have not seen various attractive offers on the network. “Collect a new car for a month”, “bring friends and become the happy owner of an apartment in the city center”, “how I made a fortune in my 23 years” … taking similar moves for the next “sect” or pyramid. However, actively following the news of digital currencies, users also look with skepticism: knowing about the percentage of unsuccessful ICOs, failed projects and fraudulent frauds, not everyone will be led to the offer to “earn without investments”.
However, it cannot be said that the rewards offered by startups are “pennies for bad work” or unambiguous “prokid”. The organizers of the ICO themselves are interested in attracting new investors, and this is practically impossible without promoting and disseminating information.
Bounty hunter
First of all, it is important even before applying for participation in the bounty to honestly answer the question: what exactly are you ready to do for the project? Depending on the type of tasks chosen, the sum of award tokens is calculated:
- placing ads / signatures / using avatars with a company logo – the easiest and lowest paid quest;
- placing advertising information in social networks and blog will bring a little more tokens;
- translation of articles and materials of the site will add “tokens” to the final award;
- Writing a detailed review, creating news notes, or recording a video clip requires certain skills from the “bounty hunter”, therefore it is paid accordingly;
- Aerobatics is testing prototypes and working with codes, a person with relevant skills on a project is invaluable.
It is worth noting: the less effort is needed to complete the tasks, the less reward, however, it allows you to participate in several projects in parallel. How to properly allocate time and energy – everyone decides for himself. Some prefer to tackle several parallel startups with the idea that at least a couple of them and shoot. Others – carefully choose the project with which they intend to cooperate, and give it maximum attention.
Summary
Participation in the ICO bounty is a fairly easy way to get your first tokens and become a participant in a large and rapidly developing cryptocurrency market. In order to become a “hunter”, you will have to spend some time looking for an interesting project and studying it further. But such efforts, as a rule, pay off, if the startup turns out to be really interesting.
The method does not provide any guarantees of real earnings: CIOs are not insured against failures. And, nevertheless, this is one of the safest ways to join in the transformation of economic spheres.
Introduction to Paper Wallets
Before you start working with cryptocurrencies, you need to understand where they will be stored. A variety of repositories allows you not to dwell on one thing, but now the paper wallet cryptocurrency is on the agenda as one of the most reliable options. The name already contains an explanation – the paper wallet is actually transferred from the computer to paper in the form of two keys, one of which is private (blockchain-address, which allows receiving transfers), the second public (allows you to make transactions yourself). Both keys are necessary for high-grade work with the account, and their loss completely protects the user from personal capital. Once they get to a stranger, the new owner will have full access to the assets.
From other wallets (desktop, mobile or online), where all information, including codes, are in digital format, the paper is quite material. In order not to trust the safety of data to third-party servers, you completely isolate them from the Internet, placing them on a piece of paper, and in order to operate with virtual currency, integrate them into an online purse.
A Bitcoin (virtual currency) paper wallet with QR codes and a coin are seen in an illustration picture shot May 27, 2015. REUTERS/Benoit Tessier/Illustration
Paper wallets in general
The need for such a purse arises when a rather impressive amount accumulates that you do not intend to turn to for some time. That is, it is not intended to participate in trade operations, and it is not planned to transfer it to someone. Because paper wallets are suitable just for long-term storage of cryptocurrency, and with proper treatment and proper handling are considered the best choice. If you plan to manipulate with them, because of sluggishness, this is not the most convenient option, and it is better to search for well-protected online wallets on time-tested and other users of resources.
This brings us to the question, should you go for a paper wallet?
According to the classics of the genre, there is two news – good and bad. Let’s start with the good. Contrary to the fragility of the carrier, the paper storage option of savings is considered the most reliable, since it does not constantly touch the World Wide Web, like mobile, desktop and online accounts. And if there is no way out of the Network, then it is inaccessible to hackers and viruses.
Now, look at the situation from the other side. Paper, as is known, material for important documents is so-so, because it is easy to destroy (tear, burn, wet) or lose. If during the formation of the wallet you forgot to disconnect the PC and printer from the Internet, there is a high probability that its copy remains on the Web and is now accessible to an outsider. This wallet is also very inconvenient if you are actively making transactions or other monetary transactions since you will need to read codes or enter access keys every time. To avoid this hassle, it is better to have reliable online or desktop wallets.
Also, newcomers often have confusion, under what circumstances to enter a secret, and under what public code, why transfers are made out incorrectly. It happens that while sending funds to someone’s wallet, the public code is scanned. As a result, money is debited from the account, but they never arrive at the recipient’s address.
Another situation is when, after applying the BIP38 system, the user prints the encrypted key, but loses access to the resource where he performed this manipulation. Without decryption in another way, access to your own funds will not work, so you have to forget about them. However, paper storage developers ensure that, while vigilance is observed, it is the safest way to contain large amounts of cryptocurrencies.
Paper Wallet: Set Up
To generate an address for a wallet, you do not need to be a programmer, because this is done by services specially sharpened for this. There are many of them, and the principle of operation is basically the same, except for some details. It is easy to work with them, and for clarity, we consider a few examples.
Wallet Generator is comfortable and easy to use the site. To form a paper wallet on it.
MyEtherWallet (MEW) is a free, open source user interface. The resource allows you to directly contact the blockchain, while you are responsible for the safety of your savings, keeping control of the keys.
You should also know that not all programs form QR codes, but only a set of characters. Such wallets are inferior in reliability in that, in addition to the character set, they additionally have a matrix barcode, and therefore the developers themselves recommend the latter option, as more advanced.
Conclusion
The very best aspect of paper wallets besides being protected is users are in a position to examine their balances at any time. Furthermore, users can pick to import their paper wallet details to their online wallets.
If you have coding knowledge, you’ll have a fantastic time establishing your paper wallet. Do not stress if you don’t have coding knowledge or skills. Given that keys are created offline there is no danger of exposing your delicate info to hackers.