Cryptocurrency Quotes
At the time of writing, the most popular exchanges are quite new, lightly regulated at best and cannot be considered safe places to keep your money. I mitigate this risk in two main ways. Firstly, I use several different exchanges, so if one of them went bust, I’d only lose a small chunk of my capital rather than all of it. Secondly, I try to keep only as much trading capital in each exchange as strictly necessary. If I have surplus cryptocurrency, I withdraw it to a safe wallet or transfer it back into pounds. [2019] - Glen Goodman
I like to trade on the largest, most popular exchanges because they have greater liquidity. More liquid markets tend to have much tighter spreads, which greatly reduces your overall costs of trading. Founded in China, Binance (www.binance.com) is the largest cryptocurrency exchange in the world and allows you to trade a vast array of cryptocurrencies. It now has a base in Europe too. It charges relatively low fees compared to some of the other popular exchanges. Liquidity is high for the most popular cryptos, so spreads are relatively narrow. [2019] - Glen Goodman
Lots of companies are busy developing their own ‘social sentiment indicator’ for Bitcoin and other cryptos. One of the first to launch was the Bitcoin Social Sentiment Indicator from the Finatext team developing the Pipster trading app. The financial research company MarketPsych is another pioneer in this area. Its team developed a sentiment metric they call the MarketRisk Index, which quantifies the characteristics of speech on media and news sites, as well as social media. Sentiment really does often start changing before the price changes direction. These tools are very new, experimental and not yet widely used. Once they do become widely used, they may in fact lose some of their predictive power because the potential gains will be arbitraged away. [2019] - Glen Goodman
Spread betting is a lovely thing because you can trade all kinds of financial instruments with no tax on your profits at all! Unfortunately, at the time of writing, most of the spread betting platforms only offer a few different cryptos to trade, which is why I spend most of my time on unregulated exchanges instead. However, most of my trading in Bitcoin has been on spread betting platforms, I’ve made a lot of money out of it and don’t have to pay a penny of tax. [2019] - Glen Goodman
In some cases I traded cryptos against Bitcoin (e.g. SAN/BTC), rather than against the dollar, but the most accurate technical analysis is still done using the dollar cryptocurrency pair, as that’s where most of the liquidity is. [2019] - Glen Goodman
I like to buy on breakouts because it gives the crypto that extra oomf at the start of the trade and therefore makes it less likely that I will quickly hit my stop-loss. But this is not a key consideration. You could buy at any random point in the early stages of a trend and still make good money as long as you learn to sit patiently during an upward trend and then sell at the end in a disciplined way. [2019] - Glen Goodman
When you’ve selected a crypto you want to buy, you can work out an appropriate position size using ATR, according to your own appetite for risk. [2019] - Glen Goodman
Follow the rules: •grow your profits •cut your losses •trade the trend until it bends •keep your trade sizes small enough to sleep at night •do your research on a crypto and read the white paper •don’t fall in love with your crypto •diversify and spread your risk •keep your charting clear and simple •winnings are real money, not gambling chips •never chase missed breakouts •never chase losses by throwing good money after bad •never try to catch a falling knife •run away from tips, rumours and opinions •control your inner voices and psychological biases •avoid scams; if it sounds too good to be true, it usually is. [2019] - Glen Goodman
Some of the popular anonymous wallets include BitLox (https://www.bitlox.com/), Electrum (https://electrum.org/) and Samourai (https://samouraiwallet.com/). [2019] - Kiana Danial
You can find out about all cryptocurrencies’ market caps by visiting websites such as http://coinmarketcap.com, www.cryptocompare.com/, https://coincodex.com/, and www.coingecko.com/. A higher market cap isn’t necessarily a good thing. Investors who can take higher risks may prefer cryptocurrencies with a lower market cap because those may offer more room for the market cap to increase. However, if you want to play it safe and avoid volatility or vanishing risk, you may prefer going with cryptocurrencies with a higher market cap. [2019] - Kiana Danial
Ripple’s XRP isn’t minable. Coin creation and algorithm processing happens through consensus, not PoW. Transaction time can be as little as four seconds. Transactions can be made anonymous. Ripple isn’t fully decentralized. [2019] - Kiana Danial
Litecoin is a result of a Bitcoin hard fork that happened in 2011. Litecoin is minable. Coin creation and algorithm processing occurs through the proof-of-work (PoW) process. Transaction time is around 2.5 minutes. Transactions can be made anonymous. Litecoin is decentralized. [2019] - Kiana Danial
Many analysts and investors believe some of these celebrity cryptocurrencies may vanish within ten years. Chances are that if anything should happen to a core cryptocurrency, a hard fork may come along that saves it. If you’ve already invested in a cryptocurrency when it forks, you get the same amount of new coins anyway. That’s why I’ve recommended starting the cryptocurrency portfolio by first diversifying among the top ten largest ones by market cap and then get into other, different categories. [2019] - Kiana Danial
The most famous cryptocurrencies right now include Ethereum, Ripple, Litecoin, Bitcoin Cash, and Stellar Lumens. Because the crypto industry is pretty new, it's still very hard to identify the best-performing cryptos for long-term investment. That's why you may benefit from diversifying among various types and categories of cryptocurrencies in order to manage your risk. By diversifying across 15 or more cryptos, you can stack up the odds of having winners in your portfolio. [2019] - Kiana Danial
Some of the most popular ways to earn crypto dividends are: 1) Stacking: Holding a proof-of-stack coin in a special wallet; 2) Holding: Buying and holding a crypto in any wallet. Some dividend-paying cryptocurrencies include NEO, KuCoin, BridgeCoin, Neblio, and Komodo. In addition, you can earn regular payments by participating in crypto lending. For example, you can earn up to 5% interest on your cryptos by allowing companies like Celsius Network to give out loans to the general public against cryptos. [2019] - Kiana Danial
You can group cryptocurrencies in several different ways for diversification purposes: 1) Transactional cryptocurrencies (Bitcoin & Litecoin): Designed to be used as money and exchanged for goods and services; 2) Platform cryptocurrencies (Ethereum & NEO): Designed to get rid of middlemen, create markets, and even launch other cryptocurrencies. Such cryptocurrencies are generally considered good long-term investments because they rise in value as more applications are created on their blockchain. 3) Privacy cryptocurrencies (Monero, Zcash & Dash): Similar to transactional cryptocurrencies but heavily focused towards transaction security and anonymity. [2019] - Kiana Danial
Ripple has no miners. Instead, transactions are powered through a "centralized" blockchain to make it more reliable and faster. Ripple in particular has gone this route because it wants to work with big banks and therefore wants to combine the best elements of fiat money and blockchain cryptocurrency. [2019] - Kiana Danial
Crypto Exchanges: (1) Centralized cryptocurrency exchange (CEX) - Coinbase (most popular), Bittrex, Kraken, Gemini, Robinhood, Bitfinex (2) Decentralized cryptocurrency exchange (DEX) - IDEX, Waves, Stellar, Bisq (3) Hybrid cryptocurrency exchange - Qurrex, NEXT.exchange [2019] - Kiana Danial
The best way to measure an exchange’s liquidity is to look up its most recent trading volume. Coinmarketcap.com and bitcoincharts.com are two of the many cryptocurrency information websites that rank exchanges based on their volume and liquidity. [2019] - Kiana Danial
Look into the methods of payment the exchange accepts. Some exchanges require deposits by bank transfer, some use PayPal, and some accept credit and debit cards. Typically, the easier it is for you to pay, the more fees you’re going to have to pay. For example, few services allow you to pay with a credit or debit card, and the ones that do will make you pay for the convenience. One example of such services is xCoins (https://xcoins.io/?r=62hcz9), which accepts credit cards and PayPal to exchange Bitcoins. [2019] - Kiana Danial