Telegram Is A Breeding Ground For Cryptocurrency Scammers

Initially, Telegram was used as an alternative to Whatsapp. However, it is quickly becoming a petri dish for cryptocurrencies get rich quick schemes. This is further boosted by the growth of bogus celebrity endorsements which influence the public to jump onto the cryptocurrency train without thinking twice. This may be a problem as it heads towards a possible billion-dollar initial coin offering for a native cryptocurrency that they are creating.

One of the groups encouraging this scheme is called the Crypto Callz. This is a chat group which is based on Telegram and the members of the group rally together to inflate the price of cryptocurrencies artificially. However, one would think that they would be a lot more secretive about their operations. They are not shy at advertising about what their operation is all about. An unnamed narrative claims that they are the leading pump and dump group that will skyrocket the price of coins for six hours at a time.

The chat room is also filled with animations, which offer a simple example of how people can gain their way towards cryptocurrency riches. To join the group, you simply have to create in New Zealand-based cryptocurrency exchange. Then, once you follow their Telegram channel, they will tell you which coin that you need to buy. To make the most out of it, you have to follow the instructions as soon as possible.

Currently, the chat group has about nearly 6000 members. Unfortunately, it is just one out of the many chat groups, which promotes this scheme. As one of the world’s most popular messaging apps, Telegram is quickly gaining the attention of these hackers as it is a quick way to make money.

The goal of this group is simple, which is to create speculative buying frenzies surrounding the digital currencies and quickly cash in on them. These groups are very easy to access. In fact, some of them are even free to join. They go largely unsupervised by Telegram which has been the go-to gathering for most cryptocurrency enthusiast that rallied together to orchestrate cryptocurrency scams.

When asked, the founder of the group believes that what they are doing is legal. In fact, they think of it as getting in early on the inflation of the coin. Furthermore, they are also not concerned about Telegram cracking down on their operations as they believe what they are doing is not breaking any law.

The massive growth of cryptocurrency has also boosted the popularity of telegram. In fact, the messaging app is receiving 50,000 new users daily. These users are mostly from the cryptocurrency community that joins chat groups to stay updated on the latest updates about the space. Telegram is also launching their blockchain in cryptocurrency which is expected to raise $500 million and the sale ICO.

History of Telegram

Telegram was first launched in 2013. It will launched by entrepreneurs who are Pavel Durov and his brother, Nikolai. Initially, they marketed their platform as an alternative to using Whatsapp. Among the features of telegram are personal conversations, chat rooms, and public discussion channels. This platform is so popular that even Bitcoin has an official Telegram channel.

People are also moving to Telegram because they believe that most cryptocurrency community members are already in the app. Hence, it is an easy choice to choose Telegram as a primary method of communication for cryptocurrency traders. Despite this, Telegram also makes it easy for cryptocurrencies scammers to enter into a group and create schemes like the pump and dump scheme.

These groups aim to gain as much profit as they can. Most of them are also not worried about the SEC warning investors about the pump and dump schemes. So far, no actions have been taken against the perpetrators. Therefore, until regulations are defined, this practice will continue to take place. In addition, there is also a practice which creates fake social media accounts and fake cryptocurrency news to create hype around an event. Albeit being borderline unethical, these practices aren’t exactly illegal. Therefore, as the cryptocurrencies market are largely unregulated, it is pretty much the Wild West.

Automated Ponzi scheme

Besides being a place for the pump and dump telegram groups, the platform also hosts some cryptocurrency trading bots. Using these bots, it promises large returns to their investors if users are willing to invest their Bitcoins. Unfortunately, most of these are Ponzi schemes that successfully recruited more members. There are also traditional ways of scamming people by calling an unsuspecting individual and offer them cryptocurrencies.

However, the bots on Telegram seem convincing because they offer something unique. For instance, they claim that they will help users take advantage of arbitrage by buying Bitcoin in a US-based market and sell them back in another country’s exchange. Therefore, users reportedly can make money off this arbitrage. To join this trend, the bot will then instruct you to send them an amount of Bitcoin to a wallet address. They claim they will help you to invest it for a period which can be anywhere between 1 to 3 months. Unfortunately, a lot of people have fallen for this hoax, and the bots tend to stop replying to users at the end of the year because they took all of the money. This is a classic Ponzi scheme.

Just took a chance

If you type in “icenter.co” into your computer’s browser bar, you will see a website that has a headline of “RELAX AND WATCH YOUR BITCOIN GROW.” It promises financial benefits for people that join their scheme. This website has to bots which are based in the Telegram channel. The creators of this website have gone to extensive length to make the service look legitimate.

When it comes to scams in Telegram groups, it is filled with a group of people who will sing praises about the services that the platform provides. You will also most probably be given with a lot of referral code as it helps members to climb up in position. Overall, a lot of things are tricky and shady about these scams Telegram groups. However, you would be surprised at the number of people fall for this scam.

If anything, the number of scams in the cryptocurrency market reflects the condition that the industry is in right now. The unregulated nature of the place makes it a breeding ground for people that want to take advantage of uninformed investors. A lot of novice investors are also looking for investment opportunities that seem cheaper or easier to trade. Too many people have fallen for a Ponzi scheme and Telegram is the main application that people use to do this.

Will China’s Bitcoin Ban Spell Trouble For Chinese Investors?

The cryptocurrency market was created outside of a centralized system. On top of that, the cryptocurrency market does not have physical roots which makes it difficult for governments to topple the dominance of cryptocurrencies. One of the countries that has tried hard to stop the growth of this innovative space is China.

If it isn’t clear yet, blockchain technology has successfully beaten one of the most powerful authorities on earth. The decentralized nature of the system has made it possible for the cryptocurrency craze to take place in the past few years up till today. In fact, it may be the main reason that Bitcoin and other highly speculative digital currencies are alive to this day despite facing many challenges since its inception.

In the summer of 2017, China banned its mainland residents from trading in cryptocurrencies on exchanges. In fact, they also went further to ban Chinese start-ups from raising funds using initial coin offerings.

What happened right after will surprise you. Initially, the cryptocurrency start-ups suffered some impacts from the banning. However, they quickly rebounded from the disappointment about the ban. They were reminded that the blockchain system is decentralized and autonomous. In fact, this is the reason why cryptocurrency and blockchain were created in the first place. If they were banned in China, they could easily move to another country. Today, most of these Chinese start-ups are back on their feet, and it’s almost impossible to topple them.

Although the China regulations have caused difficulties for start-ups, there is a consensus in the market that the banning is only temporary. The blockchain itself is a powerful tool that cannot defeated even by the Chinese government. Even with the authoritarian grip that China has, the blockchain system is doing what is supposed to do. In fact, it exists just great even without any centralized institution supporting it.

Only getting stronger

The China government ban on cryptocurrencies has caused a halt in the activities within the ICO system. Developers such as Sangha and Malta-based Providence Casino were planning to create ICO before the banning decision was given. After the banning, things got complicated because most of the investors were interested in their products are Chinese.

The negative consequence of banning cryptocurrency investing is that the capital will flow to projects which are based in other countries. Hence, it discourages the growth of local blockchain start-ups within China. If cryptocurrency banning did not happen in China, the government could easily have one of the most powerful markets were cryptocurrency trading. With the banning, Chinese investors are simply going to move outside of China. Therefore, anyone who is looking to launch initial coin offerings to gain access to Chinese investors will have to wait a while and look somewhere else. If anything, the government may need some time to think about the potential of blockchain cryptocurrencies.

Bibox, which is a Chinese blockchain developer quickly moved to Estonia after the ban. In fact, there are a lot of ways to go around the cryptocurrency banning. Startups can resort to peer-to-peer investing instead of having an ICO. Of course, this requires you to have an extensive network of investors that you can pitch your ideas to. Today, blockchain start-ups in China are still trying to figure out ways to legitimize their activity and find the right investors for their projects. As a result, these bans are causing Chinese investors to look at places such as Hong Kong and London to trade in.

That said, there is no way that the government can kill the activity of Chinese investors. In other news, Chinese President Xi Jinping is looking forward to his meet up with some of the most popular blockchain entrepreneurs and innovators this month. Admittedly, regulations will continue to be an important factor toward the success of a country’s cryptocurrency space.

A borderless currency

Chinese start-ups are coming up with blockchain solutions which rely on cryptocurrency as a finance or payment mechanism. As China is quickly embracing a digital cash environment, it is not a surprise that these blockchain start-ups are proposing these solutions. In fact, combining them with the usage of blockchain makes them even better offerings. As they are moving to countries abroad to develop their ideas, they can effectively bypass the use of venture capitalists which often ask for high returns and higher stakes within the company.

In fact, most of these blockchain entrepreneurs are willing to move from place to place as they are not set in one location. As these blockchain entrepreneurs can easily become overnight millionaires when they launch their ICO, it is not a wonder why they are willing to go to extreme lengths to make the project happen. A direct impact of the banning of cryptocurrencies by the Chinese government means that these Chinese investors will be dispersed all around the world. Hence, it comes to show that nothing can stop the progress of cryptocurrency even with regulations.

Does China want to ban cryptocurrencies?

Based on first-hand insight into the Chinese market, it is believed that the China government does not want to ban cryptocurrencies. NEO is a cryptocurrency company working side-by-side with the Chinese government. The capability of NEO as the cryptocurrency has been acknowledged by Beijing. The country’s top leaders are also meeting up with fund managers and major cryptocurrency operators to see what they can do about the industry. Regardless of what they choose to discuss, choosing to centralize the cryptocurrency which was meant to be decentralized can only cause the country to lose out.

Chinese investors are still sending their money abroad instead of keeping them within the borders which is the opposite of what government intended to happen. However, it is understandable that China banned cryptocurrencies because the Chinese government is looking out for investors within the market. Despite this, the potential that blockchain technology must be acknowledged by the Chinese government especially because they are one of the fastest-growing economies in the world. They can lose their competitive edge if they do not adopt the system into their infrastructure.

After the banning of ICOs and cryptocurrencies, the Chinese government gave an order for all companies to return the funds to their investors. Most of these companies refunded the money, especially those that held ICOs. However, it was reported that they received the money back through their overseas account from the same investors. It is believed that most of the main Chinese cryptocurrency traders will be moving their funds to Hong Kong. The Chinese are infatuated by cryptocurrencies and investing in them have become a norm. The capability of some of these coins to grow exponentially overnight has made it even more appealing to Chinese retail investors. Despite the banning on China’s cryptocurrency scene, many are still hopeful that ICOs will make its come back to China.

How Can You Spot The Next Bitcoin?

If you were one of the people who bought Bitcoin in the first half of 2017, you’re probably enjoying the reward from your investment. There have been no other investment in the world that have performed the way that Bitcoin did in the past few years. Those who were able to forecast the success of Bitcoin are now multimillionaires.

With the rush and hype around cryptocurrencies, more traders are searching for their Bitcoin moment. The cryptocurrency market offers an opportunity for people to make thousands of percent worth of return within just a few years, or even a few months. Hence, we are going to give you some pointers on how you can spot the next Bitcoin.

Where should you start?

Finding the next Bitcoin isn’t going to be easy. It will take some time because you have to study the market intensively. The level of complication when researching will also increase because new alternative cryptocurrencies are coming in the market every day. Not all of these coins will be successful and it is up to you to determine which one that you want to invest in.

With cryptocurrencies, there are still several apparent risks, which includes regulation. In 2018, investors and cryptocurrency enthusiasts can expect regulations to be a hot topic. Whichever country that you may be based in, make sure to take a look at the regulation or else it will be worth nothing once the government outlaws it.

The following are our top tips on how you can find the next Bitcoin in 2018.

  1. Price

When searching for the next the cryptocurrency, take a look at new cryptocurrencies that are priced below a dollar. If you are an investor with a limited budget but you are interested in cryptocurrencies, this is a great tactic that can consider. To add diversification to your portfolio and reduce the risk of losing all your money at once, you can spread your risk by investing in several cryptocurrencies. You will have plenty of choice in the market as they are over 2000 alternative coins.

As you are purchasing these cryptocurrencies at a very low price, there is a possibility that this value can increase over time. The potential with cryptocurrencies is very apparent. However, keep in mind that their value is mostly based on speculation.

  1. Mainstream adaptation

When searching for the next big cryptocurrency, you need to consider which ones are most likely to be adopted as the currency. Essentially, you need to do in-depth research to understand the specialties of the cryptocurrencies over others. Many cryptocurrencies today imitate Bitcoin’s blockchain and spend a lot of marketing it as the next big thing. Hence, search for a unique feature of the cryptocurrency.

It’s essential that you investigate the real case users of these cryptocurrencies. For instance, Ethereum has a high potential of having an increase in valuation because it has an active platform and its blockchain is highly popular.

  1. Popularity and community

Another important factor that contributes to a successful cryptocurrency is the amount of popularity surrounding the cryptocurrency. After all, for a cryptocurrency to be successful, it must be backed by a large number of cryptocurrency investors. To begin your research on the popularity of upcoming cryptocurrencies, you can visit cryptocurrency blogs or forums which are popular in the community. At times, these communities will release information about coins that come before it is released by a larger news outlet.

By following these social media pages, it enables you to stay ahead of other traders as you constantly monitor the development of cryptocurrency news. Keep in mind that it should only function as a guide to point out which cryptocurrencies are worth investing in. Ultimately, do your research before putting your money into a cryptocurrency.

  1. High supply of coins in circulation

Once you have found a cryptocurrency you’re interested in, identify the maximum amount of tokens that it circulates. Keep in mind that the maximum amount of tokens that a cryptocurrency has does not mean that it is in circulation.

Like Bitcoin, these cryptocurrencies have to be mined before it is available for circulation. There are some exceptions to this which are the privacy cryptocurrencies which are not pre-mined before an ICO. For other types of cryptocurrencies, you should choose a cryptocurrency which has a highly circulated supply because the price is more likely to go up if the demand increases as the limited supply signals scarcity.

 

 

  1. Price and volume charts

Take a look at the price and volume charts. You must have fundamentals in reading charts to understand the movement of these cryptocurrencies. When you know how to read charts, you will be more well-versed in reading abnormal patterns in the volume charts. Also, you get a rough idea of the general momentum of the cryptocurrency.

Important things to remember

There are plenty of things to keep in mind when investing in cryptocurrencies. Firstly, remember that it is a high-risk investment. Secondly, always do your research. Thirdly, try to diversify where possible. That said, predicting the next Bitcoin in the cryptocurrency market is a challenging task. It is anything but easy. It seems like everyone has an opinion on what is going to be the next Bitcoin. However, you need to develop your analysis and be confident with your decisions. After all, not everyone believes that Bitcoin was going to be the next big thing even at the start of 2017.

Ripple Vs Bitcoin: What’s The Difference?

Ripple is making waves in the cryptocurrency world. In 2017, we have seen cryptocurrencies taking the world by storm. Ripple has also successfully dethroned Ethereum as the second most popular cryptocurrency. If you know about the cryptocurrency world, you surely know a thing or two about Bitcoin. When talking about cryptocurrencies, it is impossible not to include Bitcoin in the discussion.

Therefore, here is a brief introduction to Bitcoin and Ripple. The first thing that you need to know it’s Bitcoin was first released in 2008. It had a big run in 2017 and currently have a value which hovers around $16,000 per token. Ripple was founded in 2012 and has captured the interest of banking institutions around the world that want to adopt their infrastructure because it promises to provide faster cross-border payment systems.

Without further ado, here are some of the key differences between the two cryptocurrencies.

 

 

  1. Decentralization

There is a major difference in the way that Bitcoin and Ripple govern its structure. On the one hand, we have Bitcoin which is highly decentralized and it has an open source. This is the main reason that Bitcoin has grown in popularity because it does not require the involvement of a centralized institution. In addition to the decentralization feature, any proposed change is on the Bitcoin infrastructure must be agreed on by the community. However, this can be a hurdle as upgrades can be difficult to implement.

On the other hand, Ripple is owned by a private company, and its ledger is kept private. To allow for faster upgrades in the system, it utilizes a consensus-seeking approach. If the developer of Ripple wants to make any changes to the network, they can seek consensus first. In the event where the amendment receives 80% support for two weeks, the change will then come into effect as all the future ledgers must support it. This is a step up from the way that Bitcoin runs their consensus system.

  1. End Goals

Bitcoin and Ripple were created for two different purposes. Bitcoin offers a decentralized platform to its community which can revolutionize transactions. People are free to create anything they want using the blockchain infrastructure. Meanwhile, Ripple markets itself as a solution for faster cross-border payments. It also focuses on the integration of its infrastructure within banking institutions.

  1. Size

Without a shadow of a doubt, Bitcoin is huge. It is the biggest cryptocurrency in the world with its market capitalization to prove for it. Ripple pales in comparison in terms of market capitalization with only $120 billion against $276 billion.

Can Bitcoin retain market dominance?

This is a difficult question to answer because no one can predict the future. However, a lot has changed since Bitcoin was introduced. For once, Bitcoin is no longer holding the nearly 80% of the cryptocurrencies market valuation.

Since then, a lot of other cryptocurrencies such as Ethereum and NEO has come into the picture. When determining the market valuation between Bitcoin and Ripple, it’s important to note that there are 38 billion XRP tokens in the world and only 16 million Bitcoin.

  1. Coins in Reserve

It is reported that the creator of Bitcoin has nearly 1,000,000 of possible 21,000,000 Bitcoin is in his storage. The company that created Ripple holds 62% of the XRP supply.

  1. Transaction times and fees

Bitcoin is infamous for the slow transaction times and the high fees associated with its transactions. Hence, the platform has introduced a method to overcome the improve transaction times by asking for a higher fee for users to prioritize their transaction. On average, it requires 70 minutes for Bitcoin to clear a transaction.

Meanwhile, Ripple offers a unique way to execute transactions. It requires a minimum transaction cost to avoid overloading the network. To pay the fee of the transaction, the network will automatically destroy the cryptocurrency which in return increases the value of the remaining cryptocurrency. It can settle any transactions within four seconds due to the off ledger transactions.

Ripple is better at the speed of transaction. However, there is still a lot of things that are yet to be developed for both platforms. Ripple still needs to prove itself in the cryptocurrency market especially with its blockchain infrastructure for the banking community.

What Will Happen If The Bitcoin Bubble Bursts?

Experts forecast that Bitcoin is heading towards a major crash. Crypto millionaires are bound to be affected by this crash. Meanwhile, governments are moving steadily towards regulating the cryptocurrency. The Bitcoin price surge has been a huge topic of media as experts try to predict where the cryptocurrency is heading next. The unique thing about cryptocurrency bubble is that they are not predicted when the cryptocurrency is in a bubble. However, when a prediction about a bubble is released, it has either already happened or is about to happen.

Despite the rumors that Bitcoin is currently in a bubble, experts believe that if it’s really in a bubble, it would have already popped. There are a few reasons why experts believe that Bitcoin is in the midst of a bubble. For instance, Bitcoin is built on top of a phenomenal infrastructure which is known as the blockchain.

In addition, bubbles typically grow as there is an increasing amount of media coverage. What this does to investors that have not invested in the cryptocurrency market is increasing FOMO, which is also known as fear of missing out. As more investors join the craze, it will eventually be a bubble because pure speculation drives up the asset’s price.

Something tricky about Bitcoin is we cannot predict the fundamental value of a string of cryptographic code. This is why it is inaccurate to say that it has grown above its fundamental value as that value cannot be pinpointed.

Investors seem not to care

If anything, investors seem to be ignorant about all the possible symptoms that Bitcoin might be in a bubble as the cryptocurrency Bitcoin has been a massive increase in value throughout the year of 2017. In fact, Bitcoin truly had its moment in 2017. As Bitcoin futures made its debut, more investors were worried about the impact of this move on the price of Bitcoin.

In the beginning, the debut of these Bitcoin futures caused some negative commotion within the industry because people were concerned about the fact that investors could bet on Bitcoin without having to own one. Despite this, investors sentiment work inaccurate as their view of the Bitcoin futures ended up legitimizing the position of Bitcoin among many other traditional assets.

So, what happens when Bitcoin crashes?

However, it will still be interesting to think about what can happen is Bitcoin does crash. Therefore, if Bitcoin is truly in a bubble and intends to offer some reason, how can this impact the market? For one, the impact would most probably be short-term. Moreover, the ownership of Bitcoin is largely like the hands of several wealthy investors that don’t concern themselves with the ups and downs of Bitcoin. In other words, they are not weak hands when it comes to trading.

Therefore, the extremely wealthy people who are holding this cryptocurrency will most probably not be affected by a Bitcoin crash. However, there will be some collateral damages which results from the crash. In addition, exchanges will feel pressured. This is mainly because there will be more companies and large investors trying to convert their Bitcoin into the national currency. Typically, short-term investors are weak handed. When the price starts to crash, it will try to cash out immediately to minimize their losses.

In this regard, the process of exchanging Bitcoin for cash can cause several casualties. The super rich will simply move on from the event, but many others will probably be bankrupt or lose their entire life savings. It is also important to take a look at what could happen to other cryptocurrencies such as Ethereum and Monero. As Bitcoin can be used as an indicator for the future movement of other cryptocurrencies, these alternative coins could be affected by the Bitcoin crash. Anyone who cryptocurrencies will also be affected by the Bitcoin crash.

For people that are taking up second mortgages simply to get into the cryptocurrency market, they will most probably be affected more compared to other people who are already wealthy from other streams of income.

 

 

More regulation

One thing for sure that will come out of a Bitcoin crash is increased government regulation. As more institutional investors are joining in the cryptocurrency market, financial authorities around the world will surely intervene to minimize the damage is that Bitcoin can cause. In fact, other cryptocurrencies may also be affected by the regulation as the government may be more strict to prevent something similar from happening. Countries that are currently discussing regulations about cryptocurrencies includes South Korea and France.

For these regulators, the task to regulate the cryptocurrency market can prove to be a difficult job. As a pre-emptive move, many governments today are already imposing stricter rules on exchanges to avoid the problems such as Bitcoin crash from happening. In this regard, normal investors will probably have much more to lose compared to institutional investors. In the future, Bitcoin can be dethroned another cryptocurrency. Some even go as far as saying that even if Bitcoin does crash, it can potentially make a comeback in the future.

We Think The Bitcoin Bubble Will Pop Soon: Here Are 3 Reasons Why

When Bitcoin started trading on the Chicago Mercantile Exchange (CME), there is a lot of enthusiasm because it shows that Bitcoin is establishing its position among the traditional investment assets. In fact, the decision to create Bitcoin futures contracts can attract more retail investors into the industry as there is a layer of the provision for the trading of Bitcoin. However, Bitcoin futures have been available for quite some time. Now that it is trading with a more reputable platform, it is getting a greater audience. With the CME being the world’s largest futures exchange, it is undeniable that people have more optimism about the future of Bitcoin.

The price of Bitcoin had grown phenomenally from $900 at the beginning of 2017 to nearly $19,000 at the end of 2017. It doesn’t seem like the craze around Bitcoin is going to die out any time soon. There are even some analysts that expect the price of Bitcoin will go up to $60,000 in 2018. Due to the limited supply of the industry, this can easily drive the price of Bitcoin up easily.

However, one must keep in mind that the value of Bitcoin is mainly driven by speculation. This is why there is an economy that believes the coin is currently in a bubble. Here is the reason why Bitcoin may very well be in a bubble.

 

 

 

  1. Release of the Bitcoin futures

Surprisingly, this is the financial instrument that has helped to solidify Bitcoin’s position in the first place. However, there may be some downsides to it being a Bitcoin future. For one, people are criticising and the fact that people are betting against ups and downs of Bitcoins without needing to purchase a Bitcoin. As futures contracts are classified as derivatives, investors can bet against the movement of Bitcoin the rule of the derivative.

If we were to look at it positively, investors could profit off the fluctuations of Bitcoin without having to store these cryptocurrencies themselves. Due to the huge security risk that comes with cryptocurrencies, this provides a unique method for people to profit off Bitcoin. However, this can mean the demand for the actual cryptocurrency can decrease which can drive the prices down. With the Bitcoin futures, the bubble that Bitcoin is in can pop very soon.

  1. Threat of regulations

A big reason why people are interested in Bitcoin is that it is highly unregulated and is anonymous. This is a huge advantage especially for people that don’t want the government to know what they are doing with their money. However, it also creates an important flaw. Due to the anonymity of cryptocurrencies, governments will most likely regulate the space to tax the profit that investors get. In fact, the presence of cryptocurrencies can potentially affect how our financial market will function. Governments such as China has already banned the trading of cryptocurrencies domestically because they don’t want capital to flow outside of the country.

Besides the fear that capital will flow outside of the nation, there is a good reason for government regulation. In cryptocurrencies, it is entirely up to the investor to protect their investment. In other words, investors are not protected if their money goes missing. Therefore, investors are susceptible to a high level of fraud.

However, some may disagree. Some believe that the government should not even be monitoring cryptocurrencies because it is not classified as the security. Whatever the opinions may be, the government is keeping their eyes open on any progress done in the cryptocurrency market. As many institutions are sitting back and watching where the cryptocurrency is going next, we can expect government regulations take place in the near future.

  1. Scalability issues

Think about it. Have you ever seen any other currency that moves the way Bitcoin does? However, the main concern about Bitcoin lies in the scalability issues of its infrastructure. Platforms such as Bitcoin and Ethereum have the issue of not being able to scale to a commercial level. In fact, Bitcoin can only process a handful of transactions per second. If we compare this to established processors within the industry such as Visa, Bitcoin pales in comparison. Therefore, Bitcoin still has a lot of work to do with its infrastructure if it wants to be considered a serious contender as a payment processor.

How Can You Buy Bitcoin Cash?

Bitcoin Cash has successfully replaced Ethereum as the second largest cryptocurrency in the world. This was right after the price of Bitcoin Cash soared to an all-time high of $2426. Since then, the price in the market began to be volatile. The increase in the demand for Bitcoin Cash has been largely contributed due to the cancellation of Segwit2X fork.

The popularity of Bitcoin cash came after August 1st due to the technological improvements introduced. However, you may not be able to trade Bitcoin Cash as not all exchanges provide this cryptocurrency. One of the platforms which offers this cryptocurrency is Plus500. To begin using this exchange, you simply have to sign up for the platform and log in. Then, you will be given several methods of funding your account which includes bank transfer or credit cards. Using this platform, you will also have access to major cryptocurrencies which includes Bitcoin and Ethereum. The major plus side of using this exchange is that it provides low and in execution.

Users will also find this platform convenient to use as it is available on both desktop and mobile applications. Furthermore, AvaTrade is another exchange that provides the opportunity for traders to buy and sell Bitcoin Cash using an advanced trading platform. Among the advantages of using AvaTrade are low spreads and fast execution. For traders looking for a more reliable provider to train Bitcoin cash, they can consider trading with FXTM.

The Bitcoin Fork

A huge change happened in the Bitcoin industry in August 2018. Later on, this would be known as the Bitcoin fork. It is very difficult to go into detail especially because it involves a lot of technical terms. We’ll leave that to the best technical minds in the business to comprehend the technical complexities. However, we would like to simplify what happened during this event. Basically, Bitcoin got divided into two. For the first part, it is still called a Bitcoin. Meanwhile, the other part which was divided was called the Bitcoin Cash.

The split in the most powerful cryptocurrency in the world has caused a lot of tension among traders. In fact, traders are worried about the impact of the Bitcoin fork towards the valuation of Bitcoin in the market capitalization.

So, what is Bitcoin Cash?

Before you start panicking, you should know that the split has been executed well and there have been no major problems that appeared on the platform. Bitcoin Cash took away nearly 20% of Bitcoin’s market total volume. In addition to that, the price of Bitcoin Cash was valued at about 20% of Bitcoin’s price. However, it has since then decreased a lot in value.

Due to the shift, a lot of traders are quickly shifting from Bitcoin to Bitcoin Cash. In fact, some people are considering to keep both. It has been a major concern for the industry, but the impact of the Bitcoin fork so far has been very minimal. One of the main reasons that the fork happened was to enable more transactions in the Bitcoin market to happen. Hence, this objective has largely been achieved because of the split.

How can you buy Bitcoin cash?

You may be wondering how you can get your hands on Bitcoin Cash. One of the easiest ways that you can obtain Bitcoin Cash is if you had Bitcoin in your wallet at the time of the split. By now, you would have received a proportionate amount of Bitcoin Cash in your wallet. If this did not happen for you, you should probably check back with your exchange as there may be a delay in the process. Also, depending on your exchange, you may receive a different amount of Bitcoin Cash compared to other exchanges for a variety of reasons that you will need to clarify with your exchange.

However, don’t expect that you will be able to withdraw Bitcoin Cash immediately. As this Bitcoin fork came very sudden, these exchanges are still trying to figure out how they’re going to manage the split. Therefore, it will probably be a few months before you can withdraw your Bitcoin Cash from your exchange.

Bitcoin Cash Exchanges

Kraken and Bittrex are exchanges that offer trading for Bitcoin Cash. As these exchanges are very popular in the cryptocurrency community, many people are flocking to these exchanges to get their hands on the Bitcoin Cash. Before you decide to buy with them, make sure that you check the current demand and supply for the cryptocurrency, and if you are satisfied, you can go ahead and purchase them.

In addition, Kraken has also announced that they will be accepting deposits and withdrawals and Bitcoin Cash. This is great news because there is all greater effect on Bitcoin Cash as a method of payment. After you completed the payment for Bitcoin Cash, you can now trade in the way that you do with any other alternative cryptocurrencies.

However, you need to keep in mind that the address for both your Bitcoin and Bitcoin Cash are identical. Therefore, if you give out your public address for your Bitcoin, you are also revealing the public address for your Bitcoin Cash. For traders, this represents a significant security risk. Hence, you should be aware of who you are revealing your address to. There are even some investors who chose to move their cryptocurrencies to an entirely new address because they are concerned about the safety of their cryptocurrencies.

What are the advantages of using Bitcoin Cash?

Bitcoin Cash started off on the right foot because it benefited from the large market capitalization that Bitcoin had and also had a huge price tag on it. Therefore, effective since the split, Bitcoin Cash can no longer be associated in any manner with Bitcoin. In other words, Bitcoin Cash is considered as a cryptocurrency on its own despite sharing the same name with Bitcoin. It’s ability to survive will be more apparent in the upcoming day as more people to flock to Bitcoin Cash and begin mining the cryptocurrency. Also, it is essential that Bitcoin can have obtained enough processing power to continue building its blockchain.

For any cryptocurrency, having ample processing power to build the blockchain is highly important. Without it, it reflects that the community does not have support towards in the cryptocurrency. In other words, the cryptocurrency will wither away and die. Therefore, this emphasizes the importance of any cryptocurrency to build a good community around it. In order for it to distinguish itself in the market, Bitcoin Cash needs to distinguish the usefulness of it infrastructure compared to Bitcoin. So far, it doesn’t look too good for Bitcoin Cash. However, it is expected that the cryptocurrency will continue to grow in the days ahead.

It could be possible that the slow growth of Bitcoin Cash can be attributed to investor sentiment. Investors tend to wait it out before the trade in a cryptocurrency. Once they realize that Bitcoin Cash has something that offers them, then they will start trading in the cryptocurrency. As more exchanges are listing Bitcoin Cash as an option to trade, it is believed that Bitcoin Cash will do well as its cryptocurrency. One advantage that Bitcoin Cash offers over Bitcoin is it has a larger block limit. This was one of the problems that Bitcoin market had. With a higher limit, traders can outperform a larger number of transactions that can help to boost the growth of Bitcoin Cash.

What’s going to happen to the Bitcoin network?

The Bitcoin Cash split signals that the Bitcoin network is going to undergo another important stage of growth. In fact, the fork is an important reminder to the cryptocurrency community that the technology surrounding the industry will constantly grow. In fact, the split shows that the community is being heard especially with the concerns surrounding the speed of transactions in Bitcoin.

Also, the existence of Bitcoin and Bitcoin Cash together shows that one cryptocurrency doesn’t have to die for the other to survive. In fact, cryptocurrencies can help each other to survive in such a difficult environment that is seemingly challenged by the number of alternative coins coming up every day.

One obvious benefit for anyone in the Bitcoin community is that they will enjoy a lower transaction fee for both Bitcoin and Bitcoin Cash. Also, there is also less congestion on the Bitcoin network and the Bitcoin Cash network. Therefore, experts believe that more people will flock to Bitcoin Cash. In the long run, Bitcoin Cash can have an opportunity to grow technologically.

Top 5 Tips Every New Bitcoin Investors Need To Know

For beginners or advanced cryptocurrency traders, trading Bitcoin can be quite tricky. Hence, this guide details several strategies that new traders can follow when they are trading Bitcoin. Using these strategies, newcomers can improve the possibility of them succeeding in the industry, especially in a highly volatile environment. Without further ado, let’s have a look at the top five tips that every Bitcoin trader must know.

  1. Do extensive research

One of the best advice that we can give new Bitcoin traders is to do plenty of research. Many people tend to jump into the cryptocurrency market because they don’t want to miss out on a huge opportunity. While this is good motivation for you to begin trading Bitcoin, it is vital to have a proper strategy on how to plan your trade in the cryptocurrency market. If you enter the market blindly, there is a high possibility that you won’t be able to survive in the highly volatile cryptocurrency market.

The more you understand about Bitcoin, you will have more confidence when you trade this digital currency. Having a solid foundation when starting out is essential because it allows you to understand more about Bitcoin. While Bitcoin offers a unique and rare opportunity for the world’s financial market to shift to a decentralized system, it needs to be treated accordingly. A good start is to do your research by understanding blockchain which is the infrastructure that Bitcoin exists on.

Without a proper understanding of how blockchain can store secure data and your Bitcoins, you won’t have a complete understanding the nature of your investment. Learning about Bitcoin can take some time. Therefore, it is advisable for new traders to search for someone trustable within a cryptocurrency community to learn more from them before you make further moves in the market. When you can consult someone trustworthy, you understand the nature and risks of your investment. Then, you can avoid having unrealistic expectations of your cryptocurrency trades.

  1. Know the risks

As it is with any investment, investors should realize that everything comes with a risk. Digital currency is still very new in the market, and most of the cryptocurrencies are still developing their platform to offer to realize uses to consumers out there. Therefore, never invest money in the cryptocurrency industry if you are not willing to lose them.

If you are new, you should start small and try investing in several major cryptocurrencies. Although Bitcoin is most popular cryptocurrency in the market, don’t try to chase Bitcoin prices because you will most probably be faced a disappointment especially because the price is going up very rapidly. Similarly, the price of Bitcoin can go down for a long period before increases. Timing is important when it comes to training cryptocurrencies. Therefore, if you are confident with your analysis, you can buy into a cryptocurrency, but you should allow the Bitcoin price to come to you instead of buying in during a new high.

Avoid purchasing all the Bitcoins that you can at once. If you have found the right position for you to purchase a Bitcoin, you should always trade a little at a time and wait for a bit before you decide to invest more in the cryptocurrency.

  1. Strategize your diversification methods

The year 2017 has produced some very impressive gains with Bitcoin showing a nearly vertical rise after October. There are already media outlets reporting on stories of individuals becoming Bitcoin millionaires. These stories might tempt an investor to invest more because they want to be the next Bitcoin millionaire, but by no means should you only invest in Bitcoin in the long term. In fact, you may find yourself in trouble if Bitcoin does crash in the future. Hence, you need to hedge your risks by diversifying into other cryptocurrencies.

As it is with the cryptocurrency market, you should look into other traditional investment assets as well such as stocks or bonds to diversify your portfolio. The idea behind diversification is that if there is a decline in the price of Bitcoin, you can hedge against this risk through an increase in the value of your other investment items. One of the benefits of investing in other items within your portfolio is that you can ensure that you will always be able to invest in the market if some of the alternative coins will still have value. In fact, there are some promising alternative coins out there that you can look into and decide whether it is worth your time.

Unfortunately, one of the riskiest aspects of alternative coins is that most of them are similar to how start-ups are. A lot of start-ups fail, and alternative cryptocurrencies can also easily crash and disappear within just a few days. Therefore, always consider the business model of the cryptocurrencies that you are investing in. Other things that you need to take into account include the identity of the founders, the credibility of the developing team, the technology behind the cryptocurrency and also the product maturity.

 

 

  1. Secure your crypto coins using wallets

One of the best advice that we can give you about keeping cryptocurrencies is that you should never keep them in an online exchange. Even the best online exchanges tend to get hacked, and we’ve seen a lot of horror stories about how hundreds of millions get wiped away in the matter of a few seconds. In the aftermath of these events, these cryptocurrency exchanges do not have an obligation to return money to the investors. In the best case scenario, only about 60% can be recovered from the company’s internal funds. Don’t put yourself into that much risk. Invest in a good cryptocurrency wallet and store your crypto coins in there.

For cryptocurrency wallets, you have the option of storing your cryptocurrencies in a hot wallet or a cold wallet. Think of your wallet as a necessary investment that you have to make to keep your profits safe. Similar to how you keep your money into a bank account, you reduce your risk of losing all your money at a time.

  1. Get well accustomed to volatility

If you’re going into the cryptocurrency market hoping that you will see stable price action, you are making a big mistake. The digital currency market is well known for being volatile. There are several strategies that investors can use to manage these price fluctuations. Strategies that we have discussed earlier includes diversification. Another strategy which is advocated by Warren Buffett is to buy and forget.

Most of the new traders have a weak hand because they want to sell immediately once the price goes the opposite direction. Having a passive investment style will outperform active strategies in the long term. You’ll find that passive investing is so much better because you will experience lower trading costs.

Government Regulations For Bitcoin Around The World

The concept of cryptocurrency is very new, and stakeholders around the world are still trying to figure out how to deal this technology. Blockchain, which is the revolutionary technology that underpins the creation of Bitcoin and many cryptocurrencies is quickly showing that it has the potential to transform economies globally. The blockchain technology is a real contender towards creating virtual currencies that can replace the use of fiat money. The rapid growth of cryptocurrencies is putting governments in a difficult position as they are trying to figure out the right course of action when it comes to cryptocurrencies.

On the one hand, creating regulations in place for the cryptocurrency space can be a massive boost towards the economic competitiveness of the country. However, not putting in much regulation can cause people to have too much freedom that the implications of this may include a high level of criminal activities and the inability to keep capital to flow within the country.

So far, there has not been a balance achieve to help governments maintain the order within the financial market while also promoting the growth of cryptocurrencies within the nation. Around the world, we see a range of responses to the emergence of cryptocurrencies which ranges from crippling fear to complete acceptance. However, one main thing that we can agree on this is that the decisions whether to accept or reject the cryptocurrency within the country will not be an easy one.

 

 

In the United States

America is one of the countries that has a lot to lose and also gain from the introduction of cryptocurrencies. In fact, this is a country where we are seeing more blockchain start-ups and entrepreneurs creating solutions based on the blockchain world. However, the United States has not exclusively claimed the right to regulate cryptocurrencies. Therefore, this leaves the participants in the cryptocurrency market in limbo as they have to determine how they will participate in the market. However, there has been a change in the regulatory atmosphere as New York, Arizona and Vermont introduced bills to their Senate to propose on how they should manage blockchain ledgers and the potential application of this infrastructure for record keeping tasks.

So far, the Federal government has only made statements about how people should report the profits to the IRS. There has also been an announcement about the cryptocurrency taxes as a lot of people have cashed in on the Bitcoin boom. Meanwhile, institutional investment firms in the United States will enable retail investors to buy Bitcoin. This is a huge area of opportunity as it will back up the potential value of Bitcoin and will establish the position of this popular cryptocurrency among other traditional investment assets. Moreover, retail investors will also have more confidence to trade within the market because they have another layer of regulatory authority looking at their activities.

In Asia

Asia is a country that has mixed responses to the emergence of cryptocurrencies. One of the countries that have accepted the presence of Bitcoin very well is Japan. In fact, the government has decided that it will recognize Bitcoin as a legal means of payment. Banks are not permitted to offer their customers Bitcoins, but it is not unlawful for them to own Bitcoins. With banks not allowed to be involved in the fintech sector, this leaves the growth of the cryptocurrency industry in the hands of fintech innovators.

The same cannot be said by other countries in Asia. This includes Bangladesh, which has ruled that virtual currency trading illegal. Therefore, anyone who is found to be trading cryptocurrencies will be imposed with harsh punishment. In fact, even large countries in Asia such as China has completely banned cryptocurrency. In the earlier days, the lack of regulation within the cryptocurrency space in China has been fundamental in helping the country becoming an adopter of the blockchain space. However, the government was quick to realize that a lot of the national funds were no longer kept within the country and space was used to fund illegal activities. Therefore, the country quickly banned the trading of cryptocurrencies within its borders.

In Australia

Australia has a positive response towards the emergence of cryptocurrencies. In fact, the country hasn’t come up with anything specific regarding regulations for cryptocurrencies which would require intensive oversight from the government. However, the Federal has also issued a warning that investors should be wary of the growth of the initial coin offerings sector. If anything, the Australian regulators are seemingly taking a measured approach towards cryptocurrency.

Despite the warning that they have issued against initial coin offering, the government does acknowledge that initial coin offerings of cryptocurrencies have a lot to offer to the country’s economy. Therefore, anyone who wants to hold an initial coin offering within Australia will have to submit information to the government, and it will assess it on a case by case basis.

 

 

In Europe

In Europe, cryptocurrency enthusiasts may find this continent much more appealing. This is because the European government has come up with laws and regulatory bodies that will encourage the growth of the cryptocurrency community. In fact, there have been multiple laws put in place to encourage the growth of this industry. Since the financial, economic crisis in 2008, a new era of growth through the blockchain community will help to boost the economy significantly.

Blockchain also fits into Europe well because it does demand transparency of information and it enables the sharing of data between markets and institutions. Therefore, this is quickly becoming one of the most flourishing industries within the European region. In addition to this, the potential growth of Bitcoin is growing exponentially because banks within the region are already integrating the usage of blockchain to their infrastructure. In addition to this, an executive arm of the European Parliament is also building their decentralized ledger to monitor the ongoing events. As of now, it is up to individual countries within the European Union to decide how they will accept the emergence of cryptocurrencies. However, so far in the cryptocurrency landscape in Europe looks very much encouraging.

In Switzerland, things are looking good for cryptocurrencies. The government has decided to embrace cryptocurrency in the same way that many other European countries had. The government has also recently released a statement that they will not be regulating cryptocurrencies as of yet. However, the financial sector is discussing how they will establish cryptocurrencies status as securities as it will determine whether cryptocurrencies will become taxable.

As the government has shown its support for the growth of cryptocurrencies, Switzerland is becoming a hot spot especially for blockchain entrepreneurs that want create a start-up. It is not uncommon to see infrastructures begin to incorporate the use of cryptocurrencies in Switzerland. For instance, passengers can pay their transportation costs is by using Bitcoin.

In Germany, Bitcoin is considered as a unit of account and citizens are free to trade the way they want to. However, the transactions for Bitcoin or any other cryptocurrencies are taxable, and they do incur VAT when a traded using Euros. One of the ways that Germany has avoided getting into regulatory issues is by not labeling cryptocurrencies as a real currency. However, Germany’s government has also acknowledged that there is danger in the cryptocurrencies these especially in the form of initial coin offerings. These are crowdfunding methods there are highly susceptible to fraud because it is not necessary for the founder or the developing team to identify themselves.

Wrapping it up

It is undeniable that the growth of the cryptocurrency industry is evident in the hundreds of billions worth of valuation in the total market capitalization. Governments around the world have been showing their support towards the growth of cryptocurrency and blockchain, but there have also been some countries that have not been accepting of this innovative sector.

However, a lot of countries are also not sure how to regulate the space because they don’t want to disrupt the growth of industry can potentially provide a revenue stream to them. Corporations and financial institutions are now playing the waiting game because they want to impose regulations using the right approach.

If You’re Brave Enough, Here’s How You Can Buy Bitcoin In Australia

You’re probably one among the many people who are trying to figure out their way in this market. If you have an acute case of fear of missing out (FOMO) when you saw the price of Bitcoin skyrocketing recently, here’s a guide on what you need to do if you want to buy some Bitcoins. As of the time of writing this article, the price of one Bitcoin is a little over $17,000.

The price of Bitcoin is volatile because the price can surge and decrease rapidly within a few hours. At one of its highest price ever, you may feel that you also want to get in the cryptocurrency market. If you felt like you lost out too much by not getting in early in the cryptocurrency market, what exactly should you do?

One of the easiest ways that you can start buying cryptocurrencies is by identifying an online exchange in your country. Most people prefer to trade with online exchanges in their country or in the case where they don’t have an online exchange in the country; they choose a cryptocurrency exchange based in stable countries. In case anything bad happens, it is easier to obtain your money back legally by doing this. Most online exchanges today will require you to register and identify yourself to be able to create an account. This is mainly because of the stringent regulations being imposed by governments around the world to avoid money being used for criminal purposes.

For Australians, most of the online exchanges within the country will enable you to use Australian dollars to purchase a cryptocurrency. Using this, you will be able to buy Bitcoin or different types of cryptocurrencies available on the exchange. One of the most popular cryptocurrency exchange and the largest exchange that you can try out is CoinBase. However, you may experience some downtime with this platform because of its popularity. During peak periods, there will be account signup errors or login problems.

What are better options for Australians?

There are better locally-based options in Australia which are:

Keep in mind that you will have to do your research on the fees that each of these exchange charges per trade. It will affect the experience that you have with the platform. So, make sure you do your due diligence to research more about these cryptocurrency exchanges. There has been a number of new cryptocurrency exchanges in Australia, but the ones we recommended have been around for a wide a few years, and they are also respectable members of the cryptocurrency community.

For any Australians wanting to put their money into cryptocurrency, using local-based online exchanges is highly recommended. It may be tempting to use an overseas exchange that has been highly recommended, but in cases where something happens to the exchange, you would have a higher chance of getting your money back if you were to use a local cryptocurrency exchange. In addition, you can also get legal help which covers the national context as compared to getting legal help to resolve an issue with international exchanges.

Public address and private cryptographic key

Once you have set up your account on the online exchange, the exchange will create a cryptocurrency wallet for you. During this process, you will obtain a virtual address to use for people to send you money. In other words, this is similar to your being account number. To access these virtual address, you will be given a cryptography key which functions as your password.

Keep in mind that you must remember your password. If you don’t remember it, you can easily lose access to your cryptocurrency assets. In addition to that, we would like to mention that exchanges above have no insurance. Hence, they are still exposed to the risk of being hacked. It is not a good idea for you to leave your cryptocurrency assets on these exchange platforms.

Virtual wallet as a safer option

If you buy Bitcoins, you should move it to a mobile wallet app like Airbitz. You also have the option of having extra security using an online hardware wallet called Trezor. Keep in mind that the process of transferring Bitcoins between wallets do not happen instantly like it is in normal online banking. However, blockchain.info lets you monitor all the transactions in real time simply by inputting the address that you send or receive the Bitcoin from.

Bitcoin is well known to be highly divisible. This means that you don’t have to buy one whole Bitcoin, as it can be divided up to 8 decimal places. Hence, this makes the price of Bitcoin more affordable. These smaller versions of the Bitcoin will have their address which is attached to different wallets.

The risk with trading cryptocurrencies

If you have made up your mind that you want to invest in cryptocurrencies, one thing you have to remember is that despite the large amount of money that gets invested into the cryptocurrency market, it is still an experimental technology. The future price of cryptocurrencies is in no way guaranteed.

For instance, people like Richard Branson bought a lot of Bitcoin when it was still very low. Wealthy individuals like Branson saw the potential of Bitcoin to grow in the cryptocurrency and make it into the mainstream world. By now, he would have made a healthy amount of returns from the purchase. One of the keep in mind the cryptocurrencies is that the valuation is not determined based on the normal parameters that will see a business today. In fact, the potential for cryptocurrencies value to grow is limitless because it is based on speculation.

More warnings for crypto traders

It seems like every other day a warning about trading Bitcoin comes out. It is expected that the value of Bitcoin will peak in 2018 because more corporate institutions will back up the value of Bitcoin. One of the recent examples are the Chicago Board Options Exchange and the Chicago Mercantile Exchange which will be launching futures trading for cryptocurrencies.

 

With Bitcoin futures, investors can see easily that on the rise or fall of the cryptocurrency. In fact, it will create a regulatory oversight over the trading of cryptocurrencies. It also means that larger investors will be willing to put their money down in the cryptocurrency area. However, countries such as Russia and China are still not yet open towards trading cryptocurrencies after they placed a ban on the industry.

Governments wary of cryptocurrencies growth

Russia has officially entered the cryptocurrency market to influence protocol development. Hence, they have banned the trading and mining cryptocurrencies because they want to keep Russian capital within the country instead of being flowed out of the speculative investment. Similarly, China which is an authoritative government has decided to crack down on more cryptocurrencies by banning the mining of most popular cryptocurrencies in China. In different cities within China, there are places in which electricity is very affordable. This caused a lot of miners to flock to these areas. However, mining of cryptocurrencies has been a cause of concern for environmentalists globally as the amount of electricity used can power an entire country.

Shortly after banning cryptocurrencies, China is planning to launch their own cryptocurrency which entails less intensive energy cryptocurrency mining. With a mixture of smooth functioning state-run protocol for actual payments, government’s intervention, the interest in cryptocurrencies is slowly waning in some countries. In fact, governments are successfully sidelining Bitcoin and the cryptocurrency phenomenon from a price speculation angle.

SaxoBank has also recently warned investors that Bitcoin could potentially crash by 2019. Banks aren’t the only institutions which are worried about the emergence of Bitcoin. In fact, governments and regulatory officials around the world have been stating that Bitcoin is not a good solution towards the problems with the financial system.