Cryptocurrency hot to go is an online site that facilitates the trading of cryptocurrencies. That means you can exchange digital currency such as bitcoins with other digital currencies on the platform. Some platforms allow you to exchange or trade digital currency with fiat currencies such as USD. When it comes to crypto exchanges, there is usually no fixed rate in the market. The action of the buyers and sellers determine the exchange rate. In simple words, you trade cryptocurrency based on
their market value during that period. You must note the difference between crypto exchanges and cryptocurrency wallets. Cryptocurrency wallets allow you to trade in small amounts of digital currency such as bitcoins with another digital currency such as altcoins. But first, you have to send the digital currency to an exchange so that you can trade.
For instance, by opening an account with a wallet brokerage/cryptocurrency wallet, you can use your fiat currency, such as USD, to buy digital currency. When you have an account, you can purchase and hold cryptocurrencies, such as Ethereum. But what happens if the cryptocurrency wallet cannot allow you to buy other digital assets such as Stellar, Ethos, or Monero? In that case, you have to set up an account with a cryptocurrency exchange. You can send your digital currency to your exchange account address; then, from there, you can buy or sell the digital currencies you wish. Crypto exchanges allow ordinary traders to exchange digital assets at low commission rates when compared to crypto wallets. However, the exchanges have different rates.
Why do crypto exchanges have different prices? Crypto exchanges do not have any connection whatsoever, and that is why their prices differ. The buy and sell rates depend on the current supply and demand in the market. Every exchange rate of digital assets depends on its market value during that time. In simple words, if the exchange is thriving, it means you will get a higher market value of your digital currency.
Can I profit from price differences at various exchanges? If you master the art of trading pairs at cryptocurrency exchanges, you can profit from various exchanges. Make a comparison of at least five previous exchanges of a busy trading day and note the difference. Usually, cryptocurrency volumes go up whenever the prices fluctuate. You will realize that the price ranges with one or two percent increasing every time the volumes are high. But you have to use cryptocurrency pairs if you want to get profits from the crypto exchange rates.
For instance, if you expect the price of bitcoins against USD to increase soon, purchase the pair BTC/USD and wait to trade then. But ensure you do not incur higher transaction fees than the difference in value. It may not be worth it.
Dreaming of getting rich off passive income, novice investors mistakenly assume that mining is an easy way to get free bitcoin. This may have been the case in the early days of bitcoin, but it’s different now. It is now almost impossible to earn cryptocurrency on a video card.
There are many different ways to mine Bitcoin, from computers to rigs, from smartphones to cloud mining. And each method has its own risks, drawbacks, and upfront costs. There are also many different types of specialized Bitcoin mining machines. Therefore, it is important to make the right choice before investing your hard-earned money in iron.
Antminer S17 is the latest product released by mining giant Bitmain in 2019. It runs on BM1397, a new and improved second generation 7nm chip. Bitmain said the chip delivers 28.6% more energy efficiency over the previous 7nm BM1391 chip.
What other characteristics can we highlight:
Hash rate: 56 TH / s normal, 35-50 TH / s low power.
Power consumption: 2520 W normal, 1470-2100 low power.
Energy Efficiency: 0.045 W / GHz in normal mode, 0.042 W / GHz in low power.
Price: $ 2,400.
Ebit Miner E12 is a product of China (the unofficial world capital of cryptocurrency mining), which has low power consumption and a high hash rate function. The equipment uses patented heat sink technology, which provides excellent heat dissipation. The E12 outer shell material is much stronger than its predecessor, providing better protection and potentially longer life.
Hash rate: 44TH / S.
Power: 57W / t (-5% ~ + 10%).
Price: $ 1930
Another flagship Bitmain product that allows you to earn cryptocurrency. The Antminer series is arguably the most popular and widely used cryptocurrency miner in the world. This is one of the most affordable yet powerful mining devices. Antminer debuted in 2016 and became well known as it was the first miner to use a 16nm processing chip.
While many serious crypto miners consider it an outdated mining rig, it is still a great option for those new to bitcoin mining.
Hash rate: 14.0 TH / s.
Power consumption: 1372 W.
Energy Efficiency: 0.098W / GH.
Price: $ 349.
What is the best Bitcoin mining machine?
The answer depends on your needs and experience. Newbies will likely choose something simpler, while experienced miners will choose high-tech mining hardware.
You’ve probably heard of Bitcoin, Ethereum and other cryptocurrencies that have taken over the world. Do you want to take part in the development of this market in some way? Perhaps you have already been interested in how to get started with cryptocurrency from scratch on your own?
Before you start developing your own cryptocurrency, there are several key business decisions to consider if you want to implement a project.
How to launch your cryptocurrency: step by step steps
1)Determine the Purpose of Cryptocurrency If you are going to create a cryptocurrency, there probably must be a reason for it to exist. Otherwise people won’t use it? Nano is an example of a cryptocurrency with a clearly defined purpose – fast and free digital payments. Be sure to disclose the purpose of the cryptocurrency, explain it in a whitepaper along with additional aspects of your project.
2)Consider the Legal Implications As the blockchain space grew, regulators began to oversee it. Make sure your actions are legal throughout the entire cryptocurrency development process by consulting a professional lawyer.
3)Determine the Budget Creating your own cryptocurrency is not an easy task that will require significant financial resources. Create a budget that includes development, documentation, and marketing line items.
4)Hire a Professional Development Team You need experienced developers to help bring your idea to life. This can be challenging as the demand for cryptocurrency developers is skyrocketing and the supply of skilled developers in the labor market remains low.
5)Hire External Auditors Found the Right Developers to Create Cryptocurrency? Now you need to double-check that the safety of the product is at the highest level. This is where an external security audit comes in.
6)Promote Your Project While creating a cryptocurrency may seem like a daunting process, remember that you will need to promote it. During the advertising campaign, explain to investors what your cryptocurrency is and how to use it. Identify the key benefits of the product and promote it to the masses.
7)Maintain and Develop Your Community After you promote your project, you need to make sure that you engage with and support the community. Answer questions and report on progress. Your first followers will become your biggest fans and marketers, so don’t neglect them.
The cryptocurrency industry continues to adapt more and more functions of the traditional and familiar financial system. Issue of shares, lending, payments, cross-border transfers and even loyalty programs today can be implemented using cryptocurrencies and internal tokens of blockchain projects. This ecosystem, which is often called tokenomics, has a number of undeniable advantages over the traditional economic model. What is tokenomics and how tokenization will change people’s lives in the coming decades – we will consider in this article.
What is a token?
A token is a digital financial instrument, a coin that is issued to perform specific tasks. For example, in the traditional world, money solves the problem of making payments and transferring value, and shares are a tool that confirms ownership of a share in a company. You can buy goods with money, pay for services, or transfer them to another person. You will not be able to pay for products in the store with promotions, for this you will have to sell them first, and then return to the store with the money.
In the world of cryptocurrencies, cryptocurrencies themselves are considered money: bitcoin, ethereum, litecoin, monero and others. You can easily buy other digital assets, goods or services for them. However, cryptocurrencies have other opportunities for use: for example, during the ICO boom in 2017, hundreds of projects appeared on the market that issued their own internal tokens to perform a specific function:
Share ownership token (security token) – allows its holders to participate in the life of the project and vote for updating and introducing new functions and services. In some cases, security tokens also allow, by analogy with shares, to receive a part of the project’s profit or own a share of it.
Fuel token (utility token) – used as a means of payment for company services. Utility token can be used to pay commissions, subscriptions or other goods and services of the project.
A unique token (NFT or Non-fungible token) is used as proof of ownership of a certain digital item, the rights to which are recorded in the blockchain. This can be in-game items, photographs, music, or information about the ownership of real assets.
A synthetic token is an analogue of a real physical asset or an asset from a traditional financial system in a tokenized form. The cost of a synthetic token is tied to the real value of the asset.
Most often, tokens are issued based on the Ethereum blockchain and have an internal ERC-20 network standard. To create unique tokens, the ERC-721 network standard is mainly used. Thus, today you can create a project to solve any problem and issue local currency, stocks or other values using tokenization. If you want investors to become interested in your token or if you yourself plan to become an investor, it is important to be able to evaluate the economic model of the token – tokenomics.
Token economic model – tokenomics
When investing in a token or issuing it in order to attract investment, it is necessary to adhere to certain economic principles. They will help you to interest investors or assess the potential of the project in which you plan to invest.
When launching a token on the market, the founder of the project must have a clear understanding of what function the coin will carry and what benefits it will bring to its holders. If a token has real application and can give certain advantages to its owners, then such an asset will be popular with platform clients and investors. For example, the BNB token of the Binance exchange allows you to pay a trading commission with a 50% discount and is very popular with traders, since it significantly reduces the costs of opening trading operations. It is beneficial to hold such tokens, which positively affects their demand in the market and contributes to an increase in value. If the token does not carry any practical benefit and was issued only for the purpose of attracting money, in the future it will be exclusively depreciated.
The number of tokens issued and their value should correspond to the amount of attracted investments, since this directly affects the market capitalization. In addition, it is important to consider whether the number of tokens issued will circulate properly in the project’s ecosystem. If most of the assets are simply dead weight on users’ wallets (not to be confused with long-term investments), then such tokens will quickly become illiquid and depreciate.
To assess the adequacy of the value of a token, pay attention to the function that this asset performs. If the project sells 1 token for $ 5, and with its help you can pay a 50-cent commission, then the cost of the token is clearly overstated, and in the future it will depreciate at least 10 times. Much more reasonable would be the option when the project attracts $ 10 million in investments, determines the intrinsic value of the token at 50 cents and issues, for example, 100 million tokens at 10 cents each. Thus, the founders lay the potential for growth in the value of the token in the future and provoke an increased demand for it, because in order to pay the commission within the project, the user will need 5 tokens.
If the issued token complies with the above two principles, then there is a high probability that there will be increased demand for it in the market. Simply put, the token will be liquid. However, it is possible to add value to a token in other ways, for example, by gradually burning a part of tokens withdrawn from circulation. This method creates a scarcity that leads to higher demand and an increase in the value of the token. Another way is listing on the largest cryptocurrency exchanges. The more exchanges list a token, the more often your token will participate in trading and the more liquid it will be. In addition, listing on the largest trading platforms makes the token even more attractive for investors, because not every coin is able to get to platforms such as Binance or Coinbase. And finally, the third and easiest way to increase the liquidity of the token is the constant development of the project and the creation of new functions, goods and services for which you can pay with the token.
If you plan to purchase or issue tokens for investment, pay attention to 4 main factors that indicate the prospects for the project and the token itself:
real use in the ecosystem of the project or industry;
deflationary model, which includes a token shortage over time;
potential for development and scaling;
liquidity that can only be provided by listing on the largest exchanges.
If the project and its token meet these parameters, then issuing such a token or investing in it can be very profitable and promising.
Tokenization of assets
In addition to the issuance of tokens for individual projects, there is also the tokenization of existing assets. For example, the Currency.com exchange offers its clients leveraged trading and buying stocks, indices, commodities, currencies and other traditional assets in tokenized form. You can purchase Apple shares in the form of an ERC-20 token issued on the basis of the Ethereum network and withdraw it to your cryptocurrency wallet.
The DeFi Synthetix platform allows users to issue so-called Synth’s or synthetic assets, the value of which is tied to the real asset. For example, you can issue a synthetic (pseudo) dollar in tokenized form or any other asset and use it in the decentralized finance ecosystem.
Tokens issued on the basis of the blockchain of any cryptocurrency are not the same cryptocurrencies, but they are capable of performing many other useful functions. For example, it is difficult to compare the value and benefits of the stablecoin USDT (token of the ERC-20 standard) and the Bitcoin Cash cryptocurrency. The Tether token is a synthetic dollar and allows you to quickly hedge the price risks of any cryptocurrency, while Bitcoin Cash has no real use. There are a lot of tokens like Tether on the market today, and there is no doubt that in the future the entire global financial system will go into a tokenized state.
Where and how to start dealing with cryptocurrency
After you have mastered the basics, you can move on to trading on a real account and follow the following recommendations.
The first recommendation is not to sell the currency below the purchase price. Whatever happens in the market, it is important to remember that 95% of market participants experience the same emotions as you. You need to be patient, cool, and go against the crowd to do the opposite. And it is always important to remember that until the currency is sold for less, nothing is lost. It can go up sharply, and the trader will rush and sell it on a fall or small correction.
How to start trading cryptocurrency on the rise and fall of prices
It is important for a trader to accustom himself not to buy a coin at the peak of the price growth, and even more so not to buy it on the rise. It is better to wait for a correction, which will definitely come as soon as the coin reaches a strong support level. It is important to remember that the faster and sharper the rate goes up, the stronger the downward fall will be. Anyone who understands how to get started with cryptocurrency and assimilates the basic principles of trading will be able to stay cool in any situation, and not follow the majority.
Another recommendation is that when a correction occurs, buying a coin on the first recession is not as profitable as on the second. It is noticed that after the second long drawdown, the rate will rise up and the currency can be sold at a higher price.
How to start trading cryptocurrency and distribute your deposit
The next tip is to lock in your profit in BTC and look at growth as a percentage. It is important to train yourself to withdraw only a part of the fixed profit, and accumulate bitcoins. The ideal option is to divide your budget 100% into the 10 most promising cryptocurrencies from your point of view and invest 10% in each. This way you can reduce your risks: if some 4 cryptocurrencies fall in price, but there are 2 coins that will give you 500% profit, due to which you can cover the waste.
An experienced trader will not invest all his funds in different altcoins, but only 10% of the deposit. It is better to keep the bulk of assets in bitcoin. The fact is that there is little demand for many altcoins, and after the pump it may not grow for a long time. If you invest in a large amount, the deposit will be frozen for a long time and the trader will not be able to trade.