Introduction in Cryptocurrencies

In the first edition of CRYPTO TREND, we introduced Crypto Currency (CC) and answered several questions about this new market space. There is a lot of NEWS in this market every day. Here are some highlights that give us an idea of ​​how new and exciting this market space is:

The world’s largest futures exchange to create a bitcoin futures contract

Terry Duffy, president of the Chicago Mercantile Exchange (CME), said: “I think sometime in the second week of December you will see our [bitcoin futures] listing agreement. You can’t mine bitcoins today, so there’s only one way. You either buy it or you sell it to someone else. So you create a two-sided market, I think it’s always much more efficient.”

CME intends to launch bitcoin futures by the end of the year pending regulatory review. If successful, it would give investors a viable way to go “long” or “short” Bitcoin. Some sellers of exchange-traded funds have also filed for bitcoin ETFs that track bitcoin futures.

These developments have the potential to allow people to invest in the cryptocurrency space without owning CC directly or using the services of a CC exchange. Bitcoin futures can make the digital asset more useful by allowing users and intermediaries to hedge their currency risks. This could increase adoption of the cryptocurrency by merchants who want to accept Bitcoin payments but are wary of its volatile value. Institutional investors are also used to trading regulated futures, which are not plagued by money laundering concerns.

CME’s move also suggests that Bitcoin has become too big to ignore, as the exchange seemed to shut out crypto futures in the recent past. Bitcoin is pretty much all anyone is talking about at brokerages and trading firms, which have suffered amid rising but unusually calm markets. If one exchange’s futures take off, it will be nearly impossible for another exchange, such as the CME, to catch up, as scale and liquidity are important in derivatives markets.

“You can’t ignore the fact that this is increasingly becoming a story that’s not going to go away,” Duffy said in an interview with CNBC. There are “core companies” that want access to bitcoin and there is “tremendous pent-up demand” from customers, he said. Duffy also believes that introducing institutional traders to the market could make Bitcoin less volatile.

A Japanese village will use cryptocurrency to raise capital for municipal revitalization

The Japanese village of Nishiawakura is exploring the idea of ​​holding an initial coin offering (ICO) to raise capital to revitalize the municipality. This is a very new approach and they can ask for support from the national government or seek private investment. Several ICOs have had serious problems and many investors are skeptical that any new token will have value, especially if the ICO turns out to be another joke or scam. Bitcoin was certainly no joke.

INITIAL COIN OFFERING – ( ICO )

We didn’t mention ICO in the first edition of Crypto Trend, so let’s mention it now. Unlike an initial public offering (IPO), where a company has an actual product or service to sell and wants you to buy shares in its company, an ICO can be held by anyone who wants to initiate a new blockchain project with the intention of creating a new token on their chain. ICOs are unregulated and several are outright fake. However, a legitimate ICO can raise a lot of money to fund a new blockchain project and network. It’s typical for an ICO to generate a high token price near the beginning and then go back down to reality soon after. Since an ICO is relatively easy to get hold of if you know the technology and have a few dollars, there have been many and today we have about 800 tokens in play. All these tokens have a name, they are all crypto currency and except for the very well known tokens, such as Bitcoin, Ethereum and Litecoin, they are called altcoins. Currently, Crypto Trend does not recommend participating in ICOs as the risks are extremely high.

As we said in issue 1, this market is the “wild west” right now and we advise caution. Some investors and early adopters have made big profits in this market space; however, there are many who have lost much or everything. Governments are considering regulations as they want to know about every transaction in order to tax everyone. They are all heavily in debt and penniless.

So far, the cryptocurrency market has avoided many government and conventional banking financial problems and pitfalls, and Blockchain technology has the potential to solve many more problems.

A great feature of Bitcoin is that the creators have chosen a finite number of coins that can ever be generated – 21 million – thus ensuring that this crypto coin can never be inflated. Governments can print as much money as they want (fiat currency) and inflate their currency to death.

Future articles will look at specific recommendations, but make no mistake, early investing in this sector will only be for your most speculative capital, money you can afford to lose.

CRYPTO TREND will be your guide if and when you are ready to invest in this market space.

Stay on the line!

Introduction:

Cryptocurrency is a relatively new concept. Good knowledge is required to do crypto transactions. This area is growing rapidly and becoming very popular. Simultaneously, hackers started adopting newer methods to wreak havoc and steal all currencies. But it is possible to provide safeguards for digital currencies to avoid huge losses. This article deals with that part about cryptocurrency that talks about protecting them from malicious attacks. The concept of liquidity pool lockers is also discussed in detail below.

We can define cryptocurrency as digital tokens that can be secured by cryptography. We can think of it as a digital asset. Cryptocurrencies have experienced a lot of backlash and controversy for multiple reasons. These reasons mainly include their use for illegal activities and their vulnerability to malicious attacks. At the same time, they were also praised for various reasons including their transparency, portability, etc. Bitcoin is the most popular form of cryptocurrency.

How to protect cryptocurrency?

As already mentioned, cryptocurrency is a new market. But that doesn’t make it any less vulnerable to hacking and theft. Hence, it becomes very necessary to protect digital currencies. There are various cases where people have been exposed to malicious attacks.

Such attacks lead to the loss of several cryptocurrencies. People who hack these accounts then tend to disappear into the internet and become impossible to trace. They also take many digital currencies.

One of the best ways to protect digital currencies is to use a wallet. Originally there were two types of wallets. New designs are also being introduced these days. Among all these options, physical wallet should be the best option. They are also called hardware wallets. They have a password that one needs to know to access the tokens. There is also a big downside to these hardware wallets. If the user loses or forgets the password, they can never access the tokens in any other way.

Apart from these, there are also paper wallets which are online wallets.

Users should always use strong passwords and should never share their secret keys.

Why should we use Liquidity Pool Locker?

Cryptex is a type of liquidity locker. A liquidity pool locker allows a user to store their tokens according to a smart contract. According to this contract, they cannot transfer the tokens from the start date to the end date specified in the contract. There are various such lockers and some of them are also very famous. Thanks to such restrictions, currencies remain robust and not vulnerable to malicious attacks. The user can also customize the duration and then store the LP tokens. These lockers do not capture the tokens, their function is to keep them safe for a certain period according to the smart contract.

Among all the techniques, the liquidity locker is very effective. It also has no risks compared to cold wallets.

If an individual (developer) does not own the LP tokens, they cannot claim the funds back from the pool at any time.

Simply put, cryptocurrency is digital money that is designed in a way that is, in some cases, secure and anonymous. It is closely related to the Internet, which uses cryptography, which is basically a process where readable information is converted into an uncrackable code to trace all transfers and purchases made.

Cryptography has a history dating back to World War II when there was a need to communicate in the most secure way. Since then there has been an evolution of the same and today it has become digitized where various elements of computer science and mathematical theory are used for the purpose of providing communications, money and information online.

The first cryptocurrency

The first cryptocurrency was introduced in 2009 and is still well known around the world. Many more cryptocurrencies have been introduced in the past few years and today you can find so many available on the internet.

How they work

This kind of digital currency uses technology that is decentralized so as to allow different users to make payments that are secure and also store money without necessarily using a name or even going through a financial institution. They are mainly managed on blockchain. Blockchain is a public ledger that is distributed publicly.

Cryptocurrency units are usually created using a process called mining. This usually involves the use of computing power. This solves the mathematical problems that can be very complex when generating coins. Users are only allowed to buy the currencies from the brokers and then store them in crypto wallets where they can spend them with great ease.

Cryptocurrencies and the application of blockchain technology are still in their infancy when thinking about them from a financial perspective. More uses may emerge in the future as one never knows what else will be invented. The future of transactions in stocks, bonds and other types of financial assets may very well be traded using cryptocurrency and blockchain technology in the future.

Why Use Cryptocurrency?

One of the main features of these currencies is the fact that they are secure and that they offer a level of anonymity that you may not get anywhere else. There is no way a transaction can be reversed or tampered with. This is the biggest reason why you should consider using them.

The fees charged for this type of currency are also quite low and this makes it a very reliable option compared to conventional currency. Since they are decentralized in nature, they can be accessed by anyone unlike banks where accounts are only opened with permission.

Cryptocurrency markets offer a brand new form of money and sometimes the rewards can be great. You may make a very small investment only to find it has mushroomed into something great in a very short period of time. However, it is important to note that the market can also be volatile and there are risks involved in buying.