What you need to remember is that all transactions are recorded and stored on the blockchain.
Some cryptocurrencies offer their own official wallets, while other products allow you to store multiple currencies within the same cryptocurrency wallet.
But different digital currencies have different address types, and you’re usually able to send coins between like wallet addresses only. For example, you’ll need to send Bitcoin to a Bitcoin wallet address and Ethereum to an Ethereum wallet address.
What is a cryptocurrency wallet used for? A crypto wallet (or more generically, an electronic wallet) keeps tabs on security keys used to sign transactions digitally, but also, it stores the address onto a blockchain in which a specific asset resides.
There are two varieties of crypto wallets: hardware and software (also called hot and cold storage pockets ( respectively). Hot storage pockets are available via an online service like Coinbase, among the most significant cryptocurrency exchanges which provide online wallets for consumers, and it may be further segregated into online wallets and client-side wallets handled locally on an individual’s personal computer or mobile device.
Additionally, there are paper pocket generators, which make keys which may be printed out or left as QR codes.
Cold storage pockets are downloaded and live offline onto a piece of hardware like a USB drive or a smartphone. Exodus.io and Dash QT are two examples of cold storage wallet software. Cold storage pockets may also be bought as devices using the applications already installed; vendors like Trezor and Ledger offer these sorts of devices.
Hardware pockets can be divided into crypto-assist type wallets, which deal with the keys and registering of random data and are occasionally referred to as hardware security modules (HSMs). “And then there are hardware wallets that handle generating and signing complete transactions that are then sent to the distributed ledger network,” Huseby said.
When you speak with all the blockchain, the hardware communicates via the codes onto the apparatus.
A cold storage pocket is more secure than the usual hot wallet since it is not on the web. Many cryptocurrency heists have happened when a hacker strikes an internet wallet support and transports the critical keys to their wallet. Basically, transferring the related funds.
In 2014, as an instance, the Japanese online crypto trade Mt. Gox endured the theft from the hot wallet of 850,000 bitcoins valued at over $450 million. In 2018, bitcoin exchange support Coincheck suffered a theft of nearly $1 billion worth of cryptocurrency out of its alluring wallet support. Many smaller thefts have happened within the previous five decades, mainly through the hacks of internet wallets.
Instead of holding physical coins, a cryptocurrency wallet is electronic and includes a public and private key.
What are the desired traits of a crypto wallet and how hard can choose a wallet to be?
Wallets can be broken down into three distinct categories – software, hardware, and paper. Software wallets can be a desktop, mobile or online.
To send funds from your wallet, you’ll need a wallet address — or the recipient’s public key. These addresses are either:
Once you have this address, you will need to:
Note that the exact process varies depending on the brand of wallet you choose. For example, hardware wallet users typically need to connect their wallet device, enter a PIN or password and manually verify the transaction on the device.
Most experts recommend keeping crypto keys in a colt wallet. This means creating a paper copy of these keys and keeping that newspaper in a safe place like a bank safety deposit box.
Paper may also be utilised as a kind of wallet via applications that produce a QR code which may be scanned to allow blockchain transactions. Otherwise, Gartner urges the use an internet exchange with a pocket service which enforces two-factor authentication through drive technology. Push technology evolves the next aspect to some documented cellular phone so that an operator’s telephone can accept an entry request pushed out from the market wallet’s authentication support.
However, cryptocurrency hackers also have successfully stolen the SIM identity of a cell phone using a phone-based wallet onto it.
It is crucial to realise that hackers can circumvent most mobile authentication techniques utilising an assortment of technologies, according to Gartner. These include “SIM swaps,” in which a hacker registers an existing to their telephone so that it pushes messages or notifications to be delivered to this phone, rather than to the valid owner. Hackers do so typically through social technology of cell phone customer support agents, Gartner’s report stated.
There are ways to mitigate all of these attacks, but the best solution so far is to use some hardware wallet and also to have a hard copy backup of your secret keys somewhere safe,” Huseby said. “The hardest part of wallets is that they are responsible for the secure storage of small, highly sensitive data. Most people are not familiar with the levels of security and paranoia that is required to truly defend against people determined to steal your keys.”
Wallet security is crucial for any crypto owner, so keep these tips in mind to keep your funds as safe as possible:
Used by the most secure and trustworthy wallets, two-factor authentication requires a regular username and password combination and another authentication method.
It’s often a PIN code texted to your smartphone, expiring after a set time and different every time you log in. This means that an attacker would need to know your username and password and also have your phone.
Some crypto wallets require you to install a secondary app on your smartphone that generates these PIN codes for you, adding another layer of security.
The most critical problem with a cold pocket, however, is in case you have not backed up the info on it or saved a hard copy of it somewhere secure, and you also lose that device, you shed your electronic assets once and for all. In other words, you do not understand where your cryptocurrency resides to a blockchain or possess the keys to authenticate that those assets belong to you.
Hot storage wallets, by comparison, have the advantage of the support of the provider. Should you lose your access code into the wallet, you will find challenge-and-answer queries which will make it possible for you to regain them.
There are limited procedures for recovering private keys at a cold storage pocket that’s been missing, and they’re generally not simple to use. By way of instance, Coinbase permits consumers a restore mechanism which is composed of 24 arbitrary word retrieval phrase users should record when they produce their own wallet.
Blockchain ledgers work predicated on a trustless consensus mechanism, which means that you do not need to be aware of the individual or people you are transacting with about the ledger. A dispersed ledger will anticipate any trade properly signed with a legitimate secret key.
“Wallets serve the purpose of storing those keys securely and doing the digital signing necessary for the distributed ledger to accept the transaction,” Huseby said.
While the vast majority of crypto wallet software is utilised to store cryptocurrencies like Bitcoin, Ethereum, Ripple or even Litecoin, the program may also save the keys to fungible and non-fungible digital tokens representing products, monetary resources, securities, and services.
By way of instance, a token saved in a crypto wallet can signify concert or airplane tickets, unique art or products in a supply chain. Practically anything using an electronic value attached to it.
All distributed ledgers with decentralised consensus mechanics trust the capacity security model, meaning possession of an encryption key, demonstrated with an electronic signature over a trade, authorises the actions the trade represents.
“So any application modelled on a distributed ledger requires users to have wallets that they use to sign transactions that work for that application,” Huseby said. For Bitcoin, the transactions just transfer bitcoins to another encryption key and therefore to another owner. For things like a supply chain, they sign transactions that track the asset being managed (e.g., electronic parts, raw materials, etc.).”
Later on, a brand new, “trustless” global market could be contingent upon blockchain and crypto wallets which allow everything from individual professional or financial histories, tax info, medical advice, or customer tastes to corporations preserving employee or spouse electronic identities and controlling program access.
There’s no one-size-fits-all cryptocurrency wallet. The right crypto wallet for you is the one that matches your needs. If security is your No. 1 concern, you’ll likely choose a different wallet than someone who wants fast and easy access to their coins.
Do your research and compare wallets. Start with our crypto wallet reviews to get an idea of what’s available and key features to consider.
How do you know if a cryptocurrency is a coin or a token? Cryptocurrency is either a coin or a token. Here’s the main difference between coins and tokens:
Coins have their own blockchain. Tokens do not.
Most big-name cryptocurrencies (Bitcoin BTC, Ethereum ETH, and Ripple XRP) are coins. These coins have their own blockchain, meaning that a decentralised, peer-to-peer network records all transactions on a digital ledger.
A token does not have its own blockchain.
The Ethereum blockchain is the most popular platform for token creation, though you can theoretically create a token on any blockchain. 0x (ZRX), Maker (MKR) and Basic Attention Token (BAT) are examples of ERC-20 tokens, meaning a specific type of Ethereum-based token. In other words, their protocol exists ‘on top of’ the Ethereum blockchain.
Read more on What is cryptocurrency, and why do we need it?
Since coins have their own blockchains, it makes sense that they serve as currency, a means of exchange, within that network.
This is why Bitcoin is called digital gold and Ripple is known for its fast transactions: Bitcoin is a store of value, like gold, and Ripple facilitates cross-border bank transactions.
Also, it’s easier to exchange USD for a coin, rather than a token. Investing in a token usually requires exchanging USD for a coin first.
The value of a token is a little more complicated. Tokens are typically released in ICO, which stands for Initial Coin Offering. ICOs are like IPOs for cryptocurrency. ICOs give the investor access to tokenised services or products or represent a stake in a cryptocurrency company.
This is where tokens get a little confusing: Tokens fall under different SEC regulations depending on what they represent. You can separate tokens into two types of cryptocurrency that represent either a utility or a security.
Read more on Why Should You Use Cryptocurrency?
Understanding the distinction between these two types of cryptocurrency is absolutely necessary for investors, cryptocurrency companies and the government.
In other words, the SEC (U.S. Securities and Exchange Commission) has much stricter regulations for security tokens than it does for utility tokens because, as their name suggests, they’re considered to be digital securities.
Most Tokens Are Utility Tokens
If you can buy or trade a token on a cryptocurrency exchange without being an accredited investor, then it’s a utility token. In broad terms, a utility token gives an investor access to a service or product. This can mean that a token can represent exclusive access, a discounted rate, or early access.
When you hear about smart contracts and DApps, you should assume that a utility token is involved.
Basic Attention Token (BAT) is a utility token that has received a lot of press. It’s a means of exchange for digital advertising attention, hence the name. Integrated with the browser Brave, BAT works in three ways:
BAT represents attention, not stock or currency, making it a utility token. This means that anyone can trade utility tokens on a cryptocurrency exchange.
Read more on Blockchain Games Will Be the Catalyst for Blockchain Mass Adoption
Security Tokens are different.
Like securities, security tokens represent part-ownership in a tradeable, real-world asset external to the blockchain. And because security tokens are regulated by the SEC like securities, you have to be an accredited investor to participate in STOs, meaning Security Token Offerings.
The SEC decides whether something is a security token using the Howey Test. In simple terms, the Howey Test determines whether a cryptocurrency investment is ‘speculative’, meaning that the investor makes money based on the labour of a third party.
Investing in security tokens is slightly more difficult. Investors must use a security token issuance platform, like Polymath or Swarm, to buy and trade tokenized securities.
Unlike Coinbase or Binance, which are cryptocurrency exchanges that allow anyone to create an account, security token issuance platforms require their users to meet specific requirements. This typically means having your accredited investor status confirmed by a KYC provider. The platform will then create a customized profile that specifies how and how much each investor can trade.
Read more on Blockchain technology used in non-cryptocurrency applications
Since companies have access to a much smaller investment pool with security tokens, some try to pass off their security tokens for utility tokens. There is also debate over whether tokens can represent currency, like coins, rather than access to a service. To make matters less clear, stablecoins are often technically ‘stabletokens’.
What is a Stablecoin?
Stablecoins are an increasingly popular type of cryptocurrency, especially in a Bitcoin bear market. This is because stablecoins are “pegged” to traditional assets like fiat (meaning government-backed currency like the US Dollar or Euro) or gold.
For example, the theoretical exchange rate between a stablecoin pegged to the USD and the US Dollar itself is 1 to 1. In theory, the company behind a stablecoin has the same exact amount in assets, stored in bank accounts, as they do tokens.
The advantage of stablecoins is that in a bear market, crypto investors can move their money from volatile cryptocurrency to stablecoins, a more ‘stable’ asset class in theory. This is instead of converting it back to USD, which can be a two-step process that incurs transaction fees. When a bull market returns, investors can convert their stablecoin back into other more volatile currencies at little to no cost.
Historically, however, stablecoins have ‘broken their peg’ in both directions. For example, controversial stablecoin Tether (USDT) has been worth less than a dollar, and Gemini Coin (GUSD) has exceeded the value of a dollar.
This highlights another feature of stablecoins: Most have “USD” in their name. But keep in mind that not all do. For example, Maker (MKR), another stablecoin, does not.
Stablecoins Are Generally Tokens
Despite being called stablecoins, stablecoins are usually tokens, meaning that they don’t have their own blockchain.
Maker (MKR) exists on the Ethereum blockchain. Tether (USDT) was built on the Bitcoin blockchain. Similarly, both these “tokens” function as “currency,” which is a characteristic of coins, not tokens.
As we develop new applications for digital currencies, distinctions between types of cryptocurrency become increasingly blurred, which makes SEC regulation even more uncertain.
Why should you care whether something is a coin or a token, a utility token or a security token?
Though the world of digital currency appears new and unclear, every prospective investor should know the value of the crypto they’re considering and, above all, how current and future SEC regulation will affect it.
Furthermore, the distinction between coins and tokens represents two potential forks in the evolution of cryptocurrency: cryptocurrency as tokenized securities and cryptocurrency as a payment method.
Will crypto replace the stock market, the US Dollar or both? As it stands, both revolutionary applications of cryptocurrency are making headway.
Yes, you can earn free cryptocurrency and the list of services offering free cryptocurrency is growing.
Currently, the most popular way for people to get hold of a cryptocurrency (aka electronic money) is to buy it on an exchange with fiat currencies or through mining, but there are other ways you can earn cryptocurrency without getting out your wallet. In this article, you will discover services and platforms to help you earn free cryptocurrency without investing or mining.
No matter how you call it, electronic money, cryptocurrency or digital currency is something the entire planet started to be interested in.
While mining cryptocurrency and Bitcoin isn’t the cheapest way to get cryptocurrency, new blockchain platforms have emerged and are ready to help you earn this new electronic money, which is called cryptocurrency.
As Bitcoin makes it more and more on the international news, companies have come up with a different way in which you, can take part in this blockchain world, without investing any fiat money, or mining the cryptocurrency.
Sure, by signing up for any of these apps, you won’t be able to quit your day job anytime soon. But they give you the opportunity to earn money while you practically sleep and they also provide you with valuable experience in the up-and-coming decentralized sharing economy.
Something you shouldn’t miss on is the chance of earning free cryptocurrency! Since you are already online, so why not earn cryptocurrency online?!
Where to find services which help you earn cryptocurrency without investment? Here is what we found so far. (The list of where to get free cryptocurrency is updated regularly).
A decentralized open innovation platform empowering anyone to earn cryptocurrency,
Crowdholding is a co-creation platform were you log in, give feedback and earn crypto for it. They have over 70 crypto startups and over 40,000 signups. They have new startups as well as establish coins such as SmartCash, DeepOnion and ITF. (All on CoinMarketCap).
It’s free to sign up! How do you earn free crypto? After you sign up, you can give feedback, take part in bounties and airdrops to earn free cryptocurrency without investing.
The stages of Crowdholding, according to their website:
Earn anywhere, anytime, from any device
What is Storm?
According to its website, “Storm Token is a premium cryptocurrency reward used to fuel the world’s only blockchain-supported microtask platform.”
Storm Play is an app started in 2017, which pays you Bolt for doing a simple task such as downloading apps, surveys, and quizzes.
Storm (STORM) intends to make a blockchain-based, gamified, micro-task market (Storm Marketplace) that empowers users to earn STORM ERC-20 tokens by completing different tasks.
Micro-tasks in the app have been ‘gamified’ into a reward system that allows you to easily earn tokens for playing games or trying out new products or service.
“Participate in short surveys, try out new products, watch videos, and help finish small tasks to earn rewards in Storm Token, Bitcoin, or Ethereum.”
Some of the tasks, for example, involve achieving goals in games you have to download. Some mobile gamers may find that StormPlay gets them the entertainment factor they need, all while earning cryptocurrency without investment.
Bolt is the in-app currency which you can convert to Bitcoin, Ethereum or Storm coin when you have reached the minimum withdraw limit.
Steemit, or as the founders say, ”Come for the rewards. Stay for the community,” is a Reddit-like portal which supports posting content as well as up and down-voting.
Steemit is based on a blockchain that runs on a native coin called STEEM.
Steemit’s developers say that their Blockchain, in contrast to Bitcoin’s proof-of-work, is based upon “proof-of-brain.” That is to say, cryptocurrency is generated by participants creating original content. If you are some sort of content creator, then you definitely have to have an account on Steemit and you can earn cryptocurrency without investing by simply creating the content you are really good at.
This works as follows: A certain pool of STEEM tokens is dedicated to incentivizing content creation and curation. And how exactly these tokens are distributed for specific pieces of content is determined by “crowd wisdom” – the participant community assesses the value of the content and its token reward.
LBRY is an open-source and decentralized platform for video content sharing which rewards you for content consumption. Yes, you read that right. Not only are you rewarded for content creation, but for content consumption.
Why is that? Of course, in the long run, the main point of LBRY’s economy will be the remuneration of content creators, namely with tips from content users in the app’s native LBC token (short for LBRY Credit). The app comes with a dedicated LBC wallet. Other ways to obtain LBC’s are contributions to the LBRY project and mining – see here for all the ways of earning LBC.
However, to encourage widespread adoption of the LBRY app, the LBRY team is currently providing in-app rewards for early adopters. They can be earned simply by surfing video channels and watching videos.
SMSChain is a decentralized SMS gateway. It is based upon one of the most classical sharing economy concepts: Take a resource that someone has paid for, but isn’t using, and enable that person to share this resource with others.
These messages mostly consist of standard templates, not individualized content. These templates will be defined in SMSChain nodes, and participants can choose in advance which types of content they wish to permit to go through their SIM card.
SMSChain offers exactly this marketplace, and the marketplace’s currency is their native token SMSTO. You can earn SMSTO simply by signing up for an account on the SMSChain website, and by agreeing to sell your unused SMS capacities.
In the context of SMSChain, you are known as a “miner” – similar to Bitcoin’s concept of mining. However, the mining mechanism in SMSChain is not wasteful proof-of-work, as in other cryptocurrencies, but proof-of-delivery. That means that you do the useful work of delivering SMS in order to earn your SMSTO.
The explosion of cryptocurrencies has created a market where you can offer your services and receive remuneration in cryptocurrency.
There are subreddits such as /r/Jobs4Crypto and /r/Jobs4Bitcoins, or you can simply contact ICOs if you have a desirable skill set. Got something to sell? There are also multiple sites where you can sell your unwanted items for cryptocurrency. Some examples are Bitify (a platform similar to eBay) and BazaarBay (a platform that acts like Etsy).
SweatCoin will help you earn cryptocurrency for simply walking around outside.
SweatCoin might be the app that sounds familiar to you because it’s the easiest to use, and therefore the most popular. SweatCoin pays you in a currency that will eventually be turned into actual cryptocurrency on the blockchain.
Blockchain games are taking gaming to a whole new level. And yes, playing games can actually help you earn cryptocurrency without investing. More and more startups and companies are on their way to change their business model and the gaming industry is a big part of it.
You can earn free cryptocurrency by playing arcade games such as Alien Run and collectable fantasy football games like FootballCoin if you are a football enthusiast. Let’s not forget about attention games like Block Stacker. All these games are ready to reward you for your time and attention. And if you get really good at any of them, this could a permanent way of earning free cryptocurrency.
Remember there is an essential difference between blockchain games and crypto games. The two notions mean different things.
These are some of the most in handy and obvious ways in which you too can earn free cryptocurrency without investing. If you have more suggestions, feel free to send them and we will happily add them to the list.
Remember that there is a big cryptocurrency market and it grows at an exponential rate. As always, the firsts ones are the most advantaged players.
In January, attackers stole roughly $400,000 in Stellar Lumen (XLM) coins.
In the same month, a software developer revealed the CoffeeMiner attack, a means to use public Wi-Fi networks to perform cryptojacking – the covert mining of cryptocurrency without user consent.
Facebook decided to ban the advertising of ICOs, cryptocurrencies, and binary options on the social network due to the prevalent risk of scams and fraudulent schemes.
One of Japan’s largest cryptocurrency exchanges, Coincheck, was hacked, while both BitConnect and Benebit pulled an exit scam.
In February, employees at the Russian Federation Nuclear Center were arrested for using the centre’s supercomputing power to mine virtual coins.
Over in the United Kingdom, US, and Australia, government and corporate websites were infected with cryptocurrency mining software via a vulnerable third-party plugin.
In March, Google took steps to tackle the issue of fraudulent ICOs, and chose to ban ICO, wallet, and cryptocurrency consultancy services from purchasing adverts for display on the tech giant’s search engine.
Binance was forced to deal with the aftermath of a credential-stealing scheme that was used en masse to sell user funds and convert them into altcoins.
In April, a suspected case of fraud emerged with the Chief Strategy Officer (CSO) of cryptocurrency exchange Coinsecure being blamed for the loss or embezzlement of 438 Bitcoins, worth roughly $3.3 million at the time.
In May, the Bitcoin Gold (BTG) hard fork, originating from the Bitcoin (BTC) blockchain, suffered what is known as a 51% attack. In total, $17.5 million was stolen.
Taylor was entirely cleaned out of cryptocurrency and token reserves.
A tea-based blockchain project, the Shenzhen Puyin Blockchain Group, ran a fraudulent ICO and raised approximately $48 million from investors before vanishing.
In June, a research paper appeared which claimed the market for cryptocurrency-stealing malware was now worth millions of dollars, and at the same time, Coinrail was relieved of roughly 30% of its coin reserves.
Only a week later, another South Korean exchange, Bithumb lost $31.5 million to hackers.
Another ICO exit scam was also performed halfway through the year, this time by Block Broker, an organization which claimed to develop anti-fraud blockchain technologies.
During July, blockchain startup Bancor said a company wallet was compromised. While the alleged attackers apparently attempted to steal $23.5 million, but once the wallet was identified and frozen, only $12.5 million in Ethereum (ETH), alongside $1 million in Pundi X (NPXS) and $10 million in Bancor Network Tokens (BNT) was stolen.
BitConnect, which performed an exit scam in January, resurfaced in the news over August as the Indian head of the firm was reportedly arrested in Dubai. Two months later, former BitConnect investors banded together to launch a lawsuit accusing the company of fraud.
In the same month, three Chinese nationals were arrested over the alleged theft of theft of $87 million in cryptocurrencies by targeting both individual and corporate wallets.
In September, cryptocurrency exchange Zaif lost $60 million following a cyber attack in which hackers siphoned away Bitcoin, Bitcoin Cash, and MonaCoin from hot wallets.
A vulnerability was also discovered in the Monero system that could have permitted attackers to steal vast amounts of the cryptocurrency. After a theoretical question was posted online, developers realized a serious bug in the framework existed and set to patch the problem.
In October, Pincoin operators ran off with $660 million in trader funds after pulling an ICO exit scam, which was unsurprising considering the 48% return that the organization promised investors.
In November, a 21-year-old was arrested for performing a SIM-swap attack that took a victim’s entire life savings. The attack was conducted by convincing customer service reps to redirect numbers to a handset, where it can be used to recover passwords and bypass 2FA.
A brash crypto jacking scheme was also uncovered in a Canadian university was forced to close down its network to stop the use of the institution’s power for cryptocurrency mining.
Source zdnet.com
Nascent markets have certain qualities which make them volatile. Let’s take a look at a few of them:
This type of behaviour and manipulation is only multiplied when you add in the hundreds of thousands of new members in the industry. These nascent users are easily taken advantage of. Additionally, it’s difficult to prove that price manipulation has occurred in an unregulated market.
You’ll also discover that central exchanges have a single failure point. These cryptocurrency exchanges handle a lot of digital currency. If they get hacked, it can have a significant impact on the price of other cryptocurrencies.
The number one determinant in the price of cryptocurrency is supply and demand. This is Economics 101. If a specific digital currency has a high amount of supply but no demand from users and traders, then its value is going to drop. It works the other way as well. If the supply of a cryptocurrency is limited and it is highly sought after, then the coin’s value will increase.
The thinking behind this is connected to the scarcity element. This helps to drive up value and is a key contributor to the reason we saw Bitcoin reach nearly $20,000 USD this past January. Bitcoin’s supply is capped at 21 million BTC. This number is fairly low when compared with other cryptocurrencies. As a result, demand for the coin soared.
Public sentiment along with the media can also be key drivers over the prices of digital currencies. For example, if a specific platform or token gets negative press, you might see the value of that coin take a hit.
On the other hand, some high profile coverage and support from the media would almost assuredly cause a price to rise. Therefore, the price of digital currencies is influenced a great deal by hype and human emotion.
Of course, there are other factors that determine the price of cryptocurrencies. For example, the usefulness of a token can have an impact on its price. Is it truly solving a problem or is it just another coin taking up space on the market?
Lastly, the difficulty of mining a coin might impact its value. If a coin is difficult to mine, then it’s more difficult to increase the overall supply of the token. Therefore, the market might see added upward pressure placed on the price if the demand for the coin is high.
Just like there are no guarantees with traditional markets, the same can be said predictions made within the cryptocurrency market. There have been those from both extremes which have attempted to make predictions for 2018 and beyond.
Check out these cryptocurrency trading strategies if you are serious about getting into crypto.
Some popular CEO’s and pundits have predicted that Bitcoin would rise above the $1 million mark, while others have tried to remain more modest. Still, suggesting that Bitcoin could reach $125,000 by the end of 2022 should be taken with a grain of salt.
But we can’t have all rainbows and unicorns all the time. On the other side of the market, there are those that predict nothing but doom and gloom. The market will collapse and the price of Bitcoin will come down to less than $100. Some even suggest that it will be worthless before the end of the decade.
No matter which end of the spectrum you fall under, there are a few things you can keep an eye on that will give you a better understanding of which way the market may move. For instance, if new rules and regulations are imposed on cryptocurrencies that dominate the market, you might see a downward trend.
Remember, cryptocurrencies are still less than a decade old, so the market for them will be highly volatile for the time being. There is no way to predict or determine which way the market may move, but there are always indicators that can help you get an idea of what you can expect.
No matter what, exercise caution when investing in cryptocurrencies. Just because a coin you hold is worth hundreds or thousands today, doesn’t mean that will be the case tomorrow.
Source toshitimes.com
It is obvious that the cryptocurrency industry has grown by leaps and bounds in the past 10 years since Bitcoin was born. Fintech is transforming the financial industry and more and more people are getting onboard. Shopping in-store and online is going fully digital but raising cybersecurity fears, which can be drastically reduced with a broader acceptance of cryptocurrencies as a means of payment.
Nowadays, almost anything can be paid directly with cryptocurrencies: homes, condos, boats, cars, clothing, electronics, health and pet products, food, wine, accessories, plane tickets, vacations, tools, musical instruments, as well as dating services, professional services, internet services, and, of course crypto gear.
Without pointing out the obvious, let’s look at the most interesting things digital currencies can buy you:
Mobile payment is the new trend. Being able to use a smartphone to pay for something instead of a credit card is so much more convenient.
From Paypal and Apple Pay to Mastercard’s Paypass and Visa’s Paywave with near-field communication (NFC) technology and modern POS terminals, payments have never been easier. The same privacy and security issues arise as with the rest of traditional and fiat-based financial transactions. Too much data in one place.
All currently available mobile fiat payment processors store credit card information which include all of our financial information and more. Not to mention that all that data is online and on our mobile devices everywhere we go.
Cryptocurrencies are a safer digital cash option and are ideal for mobile payments by default due to their virtual, decentralized nature.
Bitpay, one of the most successful crypto payment gateways, is processing $1 billion worth of transactions annually at a rate of a quarter million transactions per month. Coinpayments already serves millions of vendors in 200 countries and has just integrated with Bittorrent to give its 100 million users the option to pay with BTC and altcoins. Coingate serves 50,000 merchants and has processed hundreds of thousands of cryptocurrency payments, and Utrust just partnered with Payrexx and its 10,000 European merchants.
More integrations and partnerships between cryptocurrency payment processors and fiat payment processors are in the works and the market is expected to grow by 50% in the next two years.
In particular, Foton announced plans to attract 100 million users by 2020 and offer competitive features including its own stablecoin, fiat pairs, atomic swaps, a loan and escrow service, and a payment card with loyalty rewards and cash back.
So there is no doubt: millions of merchants all over the world accept cryptocurrencies, as do tens of thousands of websites.
It has been estimated that some 20 million people worldwide own cryptocurrency. Most others have heard of bitcoin and many plan on adding it to their portfolio.
Square, a credit card payment processor serving merchants, employers and mobile payment users, is gradually out-competing Paypal while also increasing its profits through BTC sales. The majority of Square’s merchant customers have expressed interest in accepting bitcoin core and a 2017 Cambridge Centre for Alternative Finance study confirmed that 40% of consumers would, indeed, like to be able to make purchases with BTC.
Countries with weaker than average fiat currencies tend to favour the use of cryptos.
Turkey, Venezuela, Brazil, Australia and South Africa appear to have large numbers of cryptocurrency users. In fact, a whopping 80 percent of Australians would like to use cryptocurrencies for daily purchases.
Merchants in Eastern Europe and small western European towns seem more open toward adding bitcoin as a method of payment. Even before the 2017 cryptocurrency bull market, more than 10% of Eastern Europeans reported using cryptocurrency in place of fiat for everyday purchases.
There was a time when cash was king and financial institutions gave generous incentives to people who chose to put their hard-earned cash into institutional coffers.
Today, bank accounts, debit and credit cards, have fees associated with them — money that goes down the drain and provides no benefit.
There are debit and credit card fees, ATM fees, merchant fees, checking account fees, overdraft fees, paper fees, check fees, transfer fees, change fees, charge-back fees, foreign transaction fees, minimum balance fees, inactivity fees, false decline fees, et cetera, et cetera.
In comparison, popular cryptocurrency payment gateways like Bitpay and Coinpayments charge between 0.5% and 1% per transaction.
In most cases, a cryptocurrency account in the form of a digital wallet is entirely free and unless one chooses to invest in cryptocurrency hardware wallets or prepaid cards, other than the transaction fee, using cryptocurrency as money costs absolutely nothing.
Cryptocurrencies are a borderless means of exchange allowing for instant and cost-effective transactions across the world.
There is no waiting, no international fees and no limitations as to who can or cannot send funds to whom or when and where those funds can be accessed.
All that is needed is an internet-enabled device like a smartphone and someone without access to a banking institution is given an alternative solution with which they can pay bills, earn income, safe-keep their funds, make purchases and conduct business.
Using cryptocurrencies while travelling adds an extra layer of security and can be used as a remote source of emergency funds that can be accessed without an ID, a bank account, credit cards, a wire transfer or even a personal computer device.
Unfortunately, there are customers who make a purchase, receive the items they ordered and even use them only to cancel their payment. They can do this because fiat payments are not instant.
With cryptocurrencies, things are quite different.
Once a transaction has occurred, there is no turning back.
Funds ‘travel’ from one wallet to another, the transaction is recorded and it cannot be reversed. This is not to say that a customer cannot return an item and request a refund by communicating directly with the vendor. Of course, they can.
What they cannot do is place an order, pay for it, receive it and then get the sum they paid back on their account because of money back policies overseen by online payment processors and credit card companies.
Charge backs are meant to prevent fraud and yet they often accomplish the very opposite. In this instance, cryptocurrency works the same way as cash. After you’ve taken the item you paid for with cash, you can’t go back to the store with a damaged or used item, never mind empty-handed, and demand your money back.
Accepting cryptocurrency online has never been easier. Shopify and Etsy merchants can select to accept BTC, BCH, and altcoins. Woocommerce and Easy Digital Downloads vendors can use WordPress plugins like Mycryptocheckout for the purpose.
Shapeshift gives customers the choice to pay with dozens of cryptocurrencies. Shapeshift is integrated with cryptocurrency payment processors like Bitpay and Coingate, and cryptocurrency wallets like Coinomi and Keepkey.
Moreover, there is Purse.io, an online platform where users can buy items from Amazon with cryptocurrency and it is also integrated with Shapeshift, as are Magento and Openbazaar. Setting up cryptocurrency payments is super simple and quick and merchant transaction fees are 60-70%lower compared to fiat transaction fees.
Banks and credit institutions, as well as retailers and service providers, obtain and retain too much of their customers’ personal and financial information.
Details including our name, address, employers, social security number, net worth, assets, investments, account balances, credit score, credit line, and transaction history, along with everything we do and buy, who we associate with, when, where, etc. comprise our personal, professional and financial data sets. With traditional financial institutions and traditional fiat currency, we can no longer preserve our privacy.
Cryptocurrency transactions provide an alternative by limiting the amount of transaction data to mere numbers also known as cryptocurrency wallet addresses and transaction IDs confirming that a wallet-to-wallet transaction took place.
A cryptocurrency payment processor acting as a third party will typically require your name (and shipping address for the delivery of physical goods), but the rest of your information will remain private as long as you don’t connect your bank or credit card account and transact solely in BTC and altcoins.
Source news.bitcoin.com