What Can You Buy Using Cryptocurrency?

What Can You Buy Using Cryptocurrency?

Rumours of merchants accepting Bitcoin have been circulating for years. After all, everyone knows at least one-foot soldier who spreads the good word of Satoshi wherever they can find a listening ear.

So then, what can you actually buy with cryptocurrency? If you’re not counting on holding for that Lambo anytime soon, let’s see what you can get for a few satoshis.

Flights and hotels

Due to the explosive growth of the cryptocurrency ecosystem in the past nine years, it is now possible to travel the world by spending cryptocurrency.

Established travel agents such as CheapAir, Destinia  Expedia and Surf Air accept bitcoin as a payment method to book flights, car rentals, and hotels and for those who prefer to stay in an apartment when travelling can book accommodation using bitcoin (BTC) or ether (ETH) on CryptoCribs.

The growth of the bitcoin ATM market also means travellers are now able to convert their cryptocurrency into local currency in most major cities around the world.

Movies, games and app-based services

Microsoft dipped its toes in the waters back in 2014, when it started accepting Bitcoin for online game and app purchases on its Windows and Xbox online stores. After a lover’s quarrel over volatility last year, the tech powerhouse stalled payments but has since rekindled the flame and picked up where it left off. While the tech giant is yet to accept BTC across the board, their support carries some serious weight.

While you won’t be getting the latest Windows from Microsoft, there’s always a back door – Newegg will proudly sell PCs, hardware, software, and an arsenal of miscellaneous equipment for bitcoins. Whether you’re in the market for a mining motherboard or a fly-fishing rod, Newegg seems to have it.

Some musicians (Bjork, Imogen Heep) will let you download their music in exchange for cryptocurrency.

Did you know you can Play blockchain games for free and win cryptocurrency?

Online Services

Your classic offline businesses are usually the last to jump on the bandwagon, while traditionally web-based businesses are quicker to catch on to tech trends.

Web services seem to be leading the pack, and you can just about create an entire website using Bitcoin. First, grab yourself a domain name on Namecheap, and if you won’t settle for their hosting package, try HostWindsGlowHost or HawkHost.

Once you’ve laid out the bones for your new site you’ll want a fresh installation of WordPress, where you can lock down a sexy theme and plugins galore – all purchased using Bitcoin, naturally. If all of this sounds a bit too much, you can jump the queue over on Reddit and launch your project as a premium feature.

Bitcoins also jangle around the darker corners of the world wide web, where romance comes at a price. There’s SuicideGirls, an eerily named “adult” community, or if you’d rather do things the old-fashioned way jump on OKCupid for some online dating action – both accept Bitcoin as payment for membership.

Read more on How blockchain technology is used in non-cryptocurrency applications.

Furniture

Need to furnish your house or buy a special present for someone? Overstock was one of the first big retailers to start accepting bitcoin, back in 2014, and its founder – Patrick Byrne – is still one of the technology’s most active proponents.

Gold

Fancy some gold? Sharps PixleyAPMEX and JM Bullion will take bitcoin off your hands in exchange for bullion.

Food

The first Bitcoin transaction ever recorded was for pizza, and apparently, the novelty never wore off. Accepting bitcoin for pizza since 2013, Pizzaforcoins is a third-party intermediary that will happily take your BTC and convert that into doughy, cheesy goodness made by your vendor of choice. (If you live in the US.)

If you’ve got a hankering for something less greasy, there’s a chance your local Subway will convert your crypto-assets into a foot-long classic. One punter traded 0.04 BTC for a Chicken Bacon Ranch 4 years ago- that said, BTC payments don’t seem to be a franchise-wide policy (being left to the discretion of individual store owners).

School

If it’s knowledge you’re hungry for, several private and public universities, as well as a couple of New York preschools, accept bitcoin. I bet you would have never guessed what you can buy using cryptocurrency.

Legal and accounting

Some legal and accounting firms also accept payment for their services in the cryptocurrency.

Presents

If you want to use bitcoin to buy presents, the most obvious solution is gift cards, via Gyft or eGifter. The recipient will then be able to spend the gift card at one of a wide range of retailers.

Charities

Whether you’re looking to bolster transparency with WikiLeaks, build clean water solutions in Sub-Saharan Africa with The Water Project, or SaveThe Children, the number of charities and nonprofits accepting Bitcoin is growing every day. Take your pick from art, entertainment, NGOs, open-source projects, activism, and even religion- you can find a full, up-to-date list on Bitcoin Wiki

Of course, you could always buy yourself some happiness by donating to one of the bitcoin-accepting charities or crowdfunding sites, such as BitHopeBitGive or Fidelity Charitable.

Search for offline shops

For a list of offline stores near you that accept bitcoin, check this list of resources to help you spend BTC away from the keyboard:

Where to Spend Bitcoins UK – An all-encompassing directory of shops, pubs, websites and places that accept Bitcoin as payment, complete with a map function.
Use Bitcoins – A directory platform listing 5,000 registered businesses that accept BTC.
CoinMap – An interactive map of worldwide businesses accepting Bitcoin.
Spendabit – A search engine to help you find a retailer for a specific good (that accepts BTC).

What can you buy using cryptocurrency? – Conclusion

Slowly but surely, merchants are warming to the idea of our old friend Bitcoin and slapping up their “Bitcoin Accepted Here” stickers with glee. That said, the process will certainly take some time, with the full force of FUD, regulation, and tech challenges all holding back your average Joe from seeing Bitcoin as a credible payment method.

Before spending, sometimes you also need to think about how to acquire it. Earning Bitcoins might seem like a daunting task if you leave out the option of buying Bitcoin. Check out some platforms which will help you earn free cryptocurrency and Bitcoin.

As an early adopter, sometimes you have to count the wins. While we are a long way off from BTC being as good as cash, there are some heavy hitters on this list that are bound to put the scent of FOMO in the air, jump-starting a mad scramble for competitors to join the crypto revolution.

Until that glorious day, your best bet is a Bitcoin debit card, which you can use just about anywhere that accepts regular old Visa. Try SpectroCoin, Uquid or Cryptopay, and you’ll be swiping and spending your satoshis like nobody’s business.

How To Keep Your Cryptocurrency Safe In Crypto Wallets

How To Keep Your Cryptocurrency Safe In Crypto Wallets

Crypto wallets are software programs that store private and public keys and interact with various blockchain to enable users to send and receive digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to use crypto-wallets.

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?

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.

There are 2 kinds of wallets: Cold and hot crypto wallets

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.

How To Keep Your Cryptocurrency Safe In Crypto Wallets: How do crypto wallets work?

Instead of holding physical coins, a cryptocurrency wallet is electronic and includes a public and private key.

  • Public key. This is a long sequence of letters and numbers that forms the wallet address. With this, people can send money to your wallet. It’s similar to a bank account number in that it’s used to send money to an account only.
  • Private key. This is used to access the funds stored in the wallet. With this, people can control the funds tied to that wallet’s address. Like a PIN, you’ll need to keep your private key secret and secure. However, not all wallets give you sole ownership of your private key, which means you don’t have full control over your coins.

What are the desired traits of a crypto wallet and how hard can choose a wallet to be?

  1. Cost. Is it free? What are the drawbacks of using this wallet?
  2. Security. Does the company have a track record of security excellence?
  3. Mobility. Is it easy to keep and difficult to lose? Is it accessible anytime, anywhere?
  4. User-friendliness. Is the wallet UI intuitively designed? Can I store a range of altcoins?
  5. Convenience. Am I able to make a fast purchase when the time calls for it?
  6. Style. Do I have a weakness for cool tech gadgets?

What are the different types of crypto wallets?

Wallets can be broken down into three distinct categories – software, hardware, and paper. Software wallets can be a desktop, mobile or online.

  • Desktop: wallets are downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.
  • Online: wallets run on the cloud and are accessible from any computing device in any location. While they are more convenient to access, online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft.
  • Mobile: wallets run on an app on your phone and are useful because they can be used anywhere including retail stores. Mobile wallets are usually much smaller and simpler than desktop wallets because of the limited space available on a mobile.
  • Hardware: wallets differ from software wallets in that they store a user’s private keys on a hardware device like a USB. Although hardware wallets make transactions online, they are stored offline which delivers increased security. Hardware wallets can be compatible with several web interfaces and can support different currencies; it just depends on which one you decide to use. What’s more, making a transaction is easy. Users simply plug in their device to any internet-enabled computer or device, enter a pin, send currency and confirm. Hardware wallets make it possible to easily transact while also keeping your money offline and away from danger.
  • Paper: wallets are easy to use and provide a very high level of security. While the term paper wallet can simply refer to a physical copy or printout of your public and private keys, it can also refer to a piece of software that is used to securely generate a pair of keys which are then printed. Using a paper wallet is relatively straightforward. Transferring Bitcoin or any other currency to your paper wallet is accomplished by the transfer of funds from your software wallet to the public address shown on your paper wallet. Alternatively, if you want to withdraw or spend currency, all you need to do is transfer funds from your paper wallet to your software wallet. This process, often referred to as ‘sweeping,’ can either be done manually by entering your private keys or by scanning the QR code on the paper wallet.

How to send cryptocurrency from your crypto wallet

To send funds from your wallet, you’ll need a wallet address — or the recipient’s public key. These addresses are either:

  • A long alphanumeric string of numbers and letters.
  • A QR code for smartphone wallets.
  • A URL-like web link that’s clickable and opens your wallet automatically.

Once you have this address, you will need to:

  1. Log in to your wallet.
  2. Click Send.
  3. Enter the recipient’s wallet address. You can generally only send and receive like coins — for example, bitcoin to bitcoin or Ethereum to Ethereum. You can’t send bitcoin to an Ethereum wallet address.
  4. Specify the amount, and possibly the currency, you want to transfer.
  5. Check any transaction fees that apply, and make sure you have enough coins in your wallet to pay the fees.
  6. Review the details of the transaction to make sure you’ve correctly entered all the information.
  7. Click Send.

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.

How to keep your crypto wallet safe

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:

  • Research before you choose. Don’t just choose the first bitcoin wallet you come across. Thoroughly research the security features and development team behind a range of wallets before making your final decision.
  • Enable two-factor authentication. This simple security feature is available on an increasing number of wallets. It’s simple to use and provides an extra layer of protection for your wallet.
  • Pick your password carefully. Make sure all usernames, PINs and passwords related to your crypto wallet strong.
  • Consider a multisignature wallet. Multisig wallets require more than one private key to authorize a transaction, which means another user or users will need to sign each transaction before it can be sent. It can take longer to send funds, but you may find that extra peace of mind is worth the minor hassle.
  • Update your antivirus protection. Your PC, laptop, smartphone or tablet should have the latest antivirus and anti-malware software installed. Set up a secure firewall on your computer, and never install software from companies you don’t know.
  • Update your wallet software. Regularly update your wallet software to the latest security upgrades and protections.
  • Make a backup. Store a wallet backup in a safe place so that you can recover your crypto funds if something goes wrong — like if you lose your smartphone.
  • Check the address. When sending or receiving funds, use the correct wallet address. Similarly, if using an online wallet, make sure it’s secure by checking that the URL starts with “https.”
  • Don’t use public Wi-Fi. Never access your wallet over a public Wi-Fi network.
  • Split your holdings. Consider splitting up your crypto coins between online and offline storage. For example, keep a small portion of your funds in online storage for quick and convenient access, and store the bulk of your holdings offline for extra security.
  • Private key protection. Never share your private key with anyone. Check whether the wallet you choose allows you to keep full control of your private keys, or if you have to surrender ownership to a third party, such as an exchange.

TWO-FACTOR AUTHENTICATION CRYPTO WALLET

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 threat of losing your access keys to your crypto wallets

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.

Beyond electronic money: additional applications for crypto wallets

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.

How To Keep Your Cryptocurrency Safe In Crypto Wallets: Conclusion

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.

Where Is the Cryptocurrency Industry Headed in 2019?

Where Is the Cryptocurrency Industry Headed in 2019?

At the beginning of 2018, bitcoin was traded for about $13,500 after reaching an all-time high of $19,783.06 in December of 2017. After that, Bitcoin‘s price fell to about three-quarters of its peak value — and this cause other digital currencies to follow the trend. Ethereum, for example, fell from an early-year high of $1,300 to $91 as of Dec. 17, 2018.

Investor interest in digital currencies has dropped in recent months. Many early investors who were eager to make gains from the ‘cryptocurrency craze’ have since moved on to other ventures, leaving a smaller group of stalwart HODL-ers behind. (HODL – means HOLD (hold you crypto; don’t sell) is a common word used by the crypto community, which was actually a spelling mistake of one of the early adopters). Today, everyone is looking for methods to earn or win cryptocurrency and Bitcoin.

But there are still reasons to be optimistic. By some measures, institutional interest in digital currencies has actually increased over 2018. At the beginning of 2018, the question was how high these coins could get. Now, looking into 2019, the better question might be how this space will adapt in order to survive.

Institutional Investors Get in the Game

Although trade figures for individual investors are down in many cases, institutions are climbing on board in a significant way for the first time.

Institutional investors allow for significantly larger trading volumes than most individual investors, meaning that even if there are fewer trading partners transacting in the digital currency space, the industry can still sustain itself.

Bloomberg reported in October that institutional investors have replaced high net-worth individuals as the biggest buyers of cryptocurrency transactions worth over $100,000.

According to Bloomberg, traditional investors and buyers such as hedge funds have become more involved in the cryptocurrency market through private transactions. Bloomberg also notes that miners — the biggest sellers on the market — have begun scheduling regular coin sales instead of holding or offloading them during market rallies.

There are several potential developments projected to take place in 2019 that could significantly impact institutional participation in the digital currency market. If crypto is floated on the Nasdaq or a similar exchange, for example, it will immediately get a boost in reputation — and likely, value.

The Elusive Bitcoin ETF

For years, crypto enthusiasts have pined for a digital currency ETF (exchange-traded funds) available to mainstream investors in the U.S. The U.S. Securities and Exchange Commission (SEC) has repeatedly rejected or delayed bitcoin ETF applications to be decided upon at a future date.

One of the most talked about funds, by provider VanEck, has seen its final approval decision pushed back to February 2019. Some analysts believe that the approval of a mainstream bitcoin ETF could provide a significant jolt to the digital currency world, opening up the industry to investors eager to participate without some of the risks associated with buying and selling tokens directly. As of now, though, the future of VanEck’s fund remains to be seen.

Stablecoins Take the Lead

Stablecoins are digital tokens that are pegged to a fiat currency that act as hedging mechanisms against the potential decline of underlying cryptocurrency collateral prices — and they may just be the industry’s best hope going into 2019.

Stablecoins may see growth next year for two reasons: one, a result of the long-term instability of non-centralized tokens; and two, the current leader in the stablecoin industry, Tether, is positioned to be dethroned. As one of the earliest stablecoins to reach the mainstream, tether has suffered a number of highly-publicized growing pains while the sub-industry developed. Other stablecoins have already entered the field, aiming to wrench away its dominance.

What Do We Know for Sure?

While it’s difficult to say which, if any, digital currencies will see dramatic price gains in 2019, we can say with confidence that cryptocurrency is not going away anytime soon.

Blockchain, the underlying technology behind many cryptocurrencies, has spread far outside of the digital currency industry and is likely to see new applications this year.

Read more on Blockchain technology used in non-cryptocurrency applications

Governments and regulators will continue to grapple with how to best facilitate and control digital tokens. It’s possible that the heyday of cryptocurrencies has come and gone, but we do know one thing for sure: cryptocurrencies were once positioned to change the entire financial system.

2018’s worst cryptocurrency scams and cyberattacks

2018’s worst cryptocurrency scams and cyberattacks

Wallet hacks, exit scams, ICO bans

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.

Nuclear power, ripe for cryptocurrency

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.

Phishing

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.

Fraud and embezzlement

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.

51% attacks

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.

Millions lost

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.

Exchanges targeted

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.

A month of arrests

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.

ICO scams of epic proportions

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.

SIM-swaps

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

Why Do Cryptocurrency Prices Fluctuate So Much?

Why Do Cryptocurrency Prices Fluctuate So Much?

One of the primary reasons that cryptocurrency prices move so much is due to how new the market is. Beyond knowing the terms “blockchain” and “cryptocurrency”, most people are still unfamiliar with this area of finance.

Nascent markets have certain qualities which make them volatile. Let’s take a look at a few of them:

  • Lack of liquidity – Compared to a traditional, established market, the cryptocurrency market does not offer as much liquidity. The difference in total market cap between fiat currency and cryptocurrency is over $89 trillion. That’s a difference of 36,000%.
  • Daily trading volumes – Cryptocurrency daily trading volumes hover at around $14 billion. Traditional markets, on the other hand, are around $5 trillion.
  • Thin market – Market changes quickly which means an increase in the volatility of digital currencies should be expected.
  • New adopters – There are a large number of new users joining the cryptocurrency sector every day. Recent reports show that over 100,000 new adopters were becoming part of the digital currency industry on a daily basis. Many new users have a vested interest into whether specific cryptocurrencies move up or down. This serves to add to the volatile nature of the market and drives up disruption.
  • Price manipulation – This has come to prominence with the recent BCH fork. The manipulation of prices can be rife in newer markets. Central exchanges manage the flow of cryptocurrencies, which mean they have a lot of incentive to grow their revenues. One way they do this is by artificially manipulating the prices of cryptocurrencies. This is done by controlling the feeds of the prices displayed to get traders to buy or sell certain currencies.

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.

what is fintech

 

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.

Cryptocurrency Price Determinants

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.

What’s the Difference Between Bitcoin and Ethereum

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.

Cryptocurrency Price Prediction Accuracy

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.

Cryptocurrency coin altcoins

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

Why Should You Use Cryptocurrency?

Why Should You Use Cryptocurrency?

Cryptocurrencies are numerous and versatile and can be utilized as entirely private bank accounts and payment cards for almost any occasion. They offer a multitude of ways to earn a form of interest with little or no effort and help users protect sensitive data and holdings on the go 24/7.

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.

Crypto as Money

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:

  •  Enjoy a Thai or Indian restaurant in Montreal or have Dutch pancakes in Aruba
  •  Buy vintage furniture in Massachusetts or rent an office in Miami
  •  See the Cerro Negro volcano in Nicaragua or charter a yacht in South Florida
  •  Buy a Benz or a Beamer in California or a Rolex in Europe

Mobility

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.

A Growing Market

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.

Commercial Use

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.

Fees

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.

International Use

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.

No Charge Backs

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.

E-commerce

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.

Sensitive Data

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