How to Determine Whether a Cryptocurrency Is Reliable and Invest Your Money Properly?

reliable cryptocurrency

Cryptocurrency is an excellent investment tool. It is able to grow in price in tens of thousands of times in just 1-2 years. By noticing a promising project at the ICO stage and investing in it in time, the investor has all chances to become a multimillionaire. But the price for such a crazy profitability is the terrible instability of the cryptocurrency market, moreover, such coins are not quite numerous. In this article we will learn how to secure your deposits and choose the most reliable assets for investment.

Contents:
(please, click the topic to scroll down to it)

  1. How to evaluate the reliability of a cryptocurrency?
  2. How to invest in coins?
  3. Conclusion

1. How to evaluate the reliability of a cryptocurrency?

The industry is still too young, and cryptocurrency assets are still very volatile. This is due to the fact that the total market capitalization amounts to about 280 billion dollars (at the time of writing), which is a very small, even ridiculous, figure on the world scale. If we compare it with other markets, for example, the capitalization of Japan’s stock market alone is about 3 trillion dollars, and this is only one country and not the largest one. Such a small capitalization makes the market very vulnerable to sudden ups and downs, which can be caused by some of its participants.

Currently, there is a huge number of different coins that perform different functions, have a different technological base, etc. So how do you choose the most reliable cryptocurrencies from all this mass? If you want to earn serious money in this field, you need to understand the industry. If you are a beginner and want to invest with minimal risks, then you will have to learn how to analyze coins. It is also worth noting that if your goal is reliability, then you should forget about the market of initial coin offering and consider only well-known projects. What you need to pay attention to includes:

Capitalization. As it has already been mentioned above, this factor is one of the most important. The fact is that the probability of Bitcoin’s total collapse is much lower than that of Bytecoin. Much more resources are required to ramp or collapse the rate of a high-capitalization coin. The investment in Bitcoin will be more stable than investment in Bytecoin.

– Trading volume. It is impossible to see the general picture of what is happening based only on the first factor. Capitalization will show how much all the project’s tokens stand in total, but it must be understood that developers are free to issue coins in the amount they want to. The more their number is, the higher the overall coin capitalization will be. But the fact is that the key factor of the growth and development of any coin is its demand. Tokens may amount to several billion, capitalization can be pretty high, but they will be of no use to anyone. Thus, investing in such a project will not be logical. Understanding the volume of trading, the investor can draw conclusions about the demand and forecasts for the coin.

2. How to invest in coins?

As we can see, since January the whole market has been going down with some interruptions for small growth and stagnation. Therefore, it is unfortunately not possible to talk about any serious earnings this year. If you want to invest in coins and earn on it, you need to follow certain rules:

  • Make long-term investments. You do not need to count on a quick payback, you should “forget” about your contribution for at least 1-2 years.
  • Learn to filter information and keep a close eye on the news background.
  • Competently diversify the risks. Invest in top-10 or top-20 cryptocurrencies and rebalance the portfolio in time.
  • Do not spend all of your money. You can not invest more than you are ready to lose. Otherwise, psychologically it will be difficult not to succumb to the emotional impulse during the drawdowns.

3. Conclusion

The cryptocurrency market is an excellent tool for earning money, but it is necessary to have a cold mind and clearly follow the chosen strategy to succeed in this field. If you are choosing a reliable cryptocurrency for investment in 2018, take a closer look at coins from top-10 or top-20. This approach will minimize your risks.

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CryptoMining.Farm Scam: 30 Victims Lost $1.34 Million

Thirty people have filed complaints to Thailand’s Technology Crime Suppression Division stating that they were victims of crypto mining scam, they allegedly lost 42 million baht ($1.34 million). The police thinks that the amount of victims can be bigger.

According to the victims’ words, the leaders of the scam convinced them to invest money into CryptoMining.Farm, a blockchain-mining website. One anonymous victim said to the Bangkok Post that one of the leaders promised investor an impossibly high return – 70% a year.

The victims signed contracts when they entered the website, the documents said that a customer may withdraw money at any time he/she wanted without any additional condition. However, the situation has changed since August. The victim stated that:

“From August the owner began imposing conditions for withdrawing the money. Then at the start of this month, the site announced it would start paying back investors in 84 installments which would take over seven years to complete. The payments were supposed to be made in foreign currencies [which] is not permitted by Thai laws.”

After a preliminary investigation, the police is sure that not 30, but 140 people became victims of the scam. Moreover, it can be related to a big scandal which happened in August 2018, when a popular Thai actor and his siblings stole about 797 million baht ($25.5 million).

According to the Bangkok Post, the company has two official offices in Bangkok and Chiang Mai, which may make the victims think that the company’s operations are legal.

Thailand treats digital money with caution and tries to regulate it. The Thai Ministry of Finance even issued a document last year where all the country’s cryptocurrency activities were regulated, including the taxation of participants of crypto market.

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How To Read Trading Charts

Cryptocurrency exchanges work on the same principle as traditional exchanges. Potentially, it is possible to earn very good money on these platforms, but for this, it is needed to be able to correctly read the cryptocurrency coin chart. Of course, in order to become a professional trader, it needs to learn and practice a lot, but if your goal is to understand the basics, this article will be an excellent starting point in the exciting world of trading for you.

There are a huge variety of different charts, but the most common is the “Candlestick chart”. The chart is a much more informative tool than digital or text analysis. Using graphics, it is possible to quickly navigate and understand the current mood of the crowd, as well as the balance of power between sellers and buyers of a particular asset. Based on the obtained data, it is possible to calculate the potential profitability or unprofitability of a particular deal.

1. The main types of stock charts

As it was mentioned above, there are a huge number of different types of charts, but the main ones are lines, bars, and candlesticks. All of these tools (with the exception of the line charts) can tell about:

  • price at the beginning of the selected period (1 minute, 5 minutes, 15 minutes, 1 hour, 1 day, 1 week, etc.);
  • price at the end of the selected period;
  • the minimum and maximum rate of the selected period.

By and large, the crypto chart clearly shows the history of the struggle between bulls and bears. In the process of this confrontation, a large number of deals are made. It should be understood that even a slight fluctuation of the price means that some have already earned on it, while others, on the contrary, have suffered losses.

2. “Candlestick chart”

Let’s take a closer look at the most common version of charts, namely “Candlestick chart”. It was invented almost 400 years ago by a rice seller from the country of the Rising Sun. The process of observing a line chart is not entirely convenient; for this reason, the construction of “Candlestick chart” is based on the principle of dividing the total time into specific periods. This principle helps to quickly navigate what is happening on the market and, accordingly, to give the Bitcoin trend prediction or any other financial asset forecast.

3. How to read the chart “Candlestick chart”?

One candle represents the range of prices for an asset for a certain period of time. The boundaries of the candle are the lowest and highest asset price in this period of time. If the candle`s color is green, this means that the asset has increased in value over a given period of time; if it is red, then, on the contrary, it has fallen.

Source: https://www.tradingview.com/

If you look closely at the above chart, you will notice:

  • the candle corresponds to the time interval – 60 minutes;
  • the minimum asset price was $3485,24;
  • the maximum asset price was $3733.58;
  • This hour began with a price of $3506,42 and ended with the price of $3687 (for this reason, the candle is green).

The main parameters that should be paid attention to when reading cryptocurrency charts are:

  • asset price;
  • time;
  • trading volume.

By and large, the entire analysis of charts is an ordinary calculation of the balance between supply and demand. It is possible to estimate the level of the strength of bulls or bears through the asset price (vertical axis) and the volume of transactions (horizontal axis). These skills allow experienced traders to take the right position in advance and earn money on any price movement.

4. Conclusion

In this article, we talked about how to read cryptocurrency charts. As it was mentioned above, there are a huge number of different types of charts, but the most popular and often used is the option “Candlestick chart”. The basic principle of this type of charts is to divide the time into certain periods. It is quite informative and easy to read. If you want to start trading, then you definitely need to get a deeper understanding of this topic.

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Bitcoin Price Analysis: The Representatives of JP Morgan and Fundstrat Share Their Opinions About Bitcoin’s Future

Another week has passed, yet Bitcoin still shows quite plain dynamics on the graphics. In fact, its price has not changed significantly since January 10th. Bitcoin price is $3459 at the time of writing.

Source: CoinMarketCap

Since Bitcoin’s price has recently stabilized, many institutional players began changing their attitudes towards cryptocurrency, let us see what the representatives of global companies think.

JPMorgan

The Global Market Strategist at JPMorgan, Nikolaos Panigirtzoglou, reckons that due to Bitcoin’s stagnation many big players will return to the industry. The volatility has “calmed down” and it means that investors can give Bitcoin second chance. He also said:

“The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future. The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”

In his interview to CNBC, he stated that the cryptocurrency could not grow, because it was not regulated, but now the situation can differ.

Fundstrat

Wall Street research firm, Fundstrat Global Advisors, is sure that the cryptocurrency may see  new lows soon.

“The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows,” Robert Sluymer, the spokesman of Fundstrat, said.

In addition, Sluymer stated that the price can vary from $4200 to $3100 or ever lower. If it suddenly hits more than $4000, it would mark a 25% increase over today’s prevailing prices. However, Robert emphasized that the technical fundamentals of Bitcoin remain weak, so the price can have downward tendency to the price mark of $3100 or even lower – $2700. The representatives of Fundstrat have also suggested that 250 small-cap coins are at risk, as they all are vulnerable to market jumps.

There are some reasons why Bitcoin price may fall down:

  1. Lunar New Year. During this period, Asian traders have relatively weak activity which may bring consequences to Bitcoin’s rate. The unofficial holidays will last till February 19.
  2. Uncertainty with the US budget. The Congress and the President of the US cannot reach an agreement, this will have influence on financial markets.
  3. Trade war between US and China.

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Soft Fork and Hard Fork in Simple Words

Many people do not want to understand the subject of cryptocurrency, because they think it is very difficult, and to understand how everything works, it is necessary to spend a lot of time. Indeed, for an unprepared person, some terms may seem very complicated: blockchain, hard fork, soft fork, etc. Of course, if you want to learn how to code, create algorithms or new cryptocurrencies, then you need to get a profile education, which will take more than one year. But if your goal is a trivial desire to understand the basics, then you will need to read just a couple dozen guides, which, by the way, you can find on our website.

In this material, we will tell you in simple words how hard fork differs from soft fork, and also recall the main Bitcoin hard forks.

1. What is soft fork?

Soft fork is the process of software updating or changing the code of a particular cryptocurrency. When conducting softfork, there is no need for a total replacement of computer software that ensures the operability of the coin network. All innovations that are made during the soft fork have full compatibility with older versions of the network. This means that if the coin creators want to cancel this update, they can do it without any problems.

To make it clear for an ordinary person who does not understand the nuances of the blockchain’s work, let us draw an analogy with the denomination of the ruble of the Russian Federation. In 1998, the Central Bank of the Russian Federation artificially raised the rate of the national currency in 1000 times. But after that, old-style banknotes were still in use for some time. If the Central Bank specialists considered this experiment unsuccessful, they could have easily canceled it and returned the previous exchange rate of the ruble.

Basically, soft fork is conducted because of the need to improve the network, as well as the liquidation of detected errors. During these updates, there is no change in the basic principles of the network.

2. What is hard fork?

Cryptocurrency hard fork is a cardinal change of the blockchain network code, which implies the lack of compatibility with older software. Roughly speaking, in the process of carrying out hard fork, a completely new cryptocurrency is being created, which cannot work with the old version within the same network. After hard fork, an alternative blockchain is created and it works on a completely different principle.

To simplify the process of understanding the above information, let’s also give an analogy from real life. Most people know that the euro currency has now been entered as legal tender in the European Union. Its introduction began in 1999. In the process of development, the euro has stopped to depend on the franc or dychmark and has become an absolutely independent currency.

The main reasons why developers spend cryptocurrency hard fork:

  • implementation of improvements that require major changes;
  • elimination of major bugs;
  • a desire to create a new cryptocurrency based on an already working product.

The main hard fork meaning is to create a separate blockchain, which will have its own miners.

3. The main hard forks of the first cryptocurrency Bitcoin

Hard forks in Bitcoin happen much more often than in any other cryptocurrency. Now let’s talk about the main forks what happened in Bitcoin network lately.

Bitcoin TX. This project is noticeable by only the fact it was the first hard fork in the Bitcoins network. The development team led by Mike Hearn held this hard fork in August 2015. The principal difference between the new project and the original Bitcoin was an increased block size (up to 8Mb). This solution would increase the capacity of the blockchain to 24 transactions per second. For the further development of Bitcoin XT, it had to be supported by ¾ of all the miners of the original Bitcoin network. But in fact, the first hardfork got support of only 12% miners. For this reason, the project was forgotten over time, and its network became incapable.

Bitcoin Classic. The developers of this project took into account the Bitcoin XT errors and decided to smoothly increase the block size: initially increase it to 2 MB, and only after 24 months – double it to 4 MB. It occurred in January 2016. But, unfortunately, this hard fork also failed. The reason was all the same low support from the miners. Officially, the project was closed in November 2017.

Bitcoin Cash. As of today, it is the most successful and popular Bitcoin hard fork. It is the only BTC fork, which not only got, but also stayed for a long time in the list of TOP-10 cryptocurrency projects. It was initiated in August 2017. The main advantages of this project over the original BTC are: increased capacity, low commissions. Subsequently, Bitcoin Cash had its own hard fork (November 15, 2018), which slightly weakened its position, but the project is not forgotten and continues to develop.

4. Conclusion

Briefly and in simple words, hard fork definition is a large-scale update of an existing cryptocurrency, in the process of which a new coin appears. Soft fork can be compared with a planned software update, which does not imply the emergence of a new cryptocurrency.

If to look at the history of Bitcoin hard forks, it appears, that no project has even managed to come close to BTC, so far. At the moment, the only more or less successful project is Bitcoin Cash, but developers need to put much efforts to help their brainchild to compete to its older brother.

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What is Fintech?

Fintech is the new financial industry that improves the current financial system and our everyday life with innovative technologies.

New technologies in the financial sphere

The field of financial technology is developing rapidly. Every year, there are more sites and applications that simplify the payment for goods and services, the receipt and repayment of loans, as well as the usual process of money transfer.

Payment services are the most popular in fintech today, which significantly save the time for making payments. With their help instant transfers within a country and fast international ones are made. Payments using a QR code also relate to financial technologies.

What financial technology allows to increase

Financial technology is designed to speed up the process of carrying out any banking procedures.

Conceptual approach to the development of the fintech ecosystem

Forming the financial ecosystem will help financial and credit organizations in the competition for customers and increase business income. However, a conceptual approach to the development of such ecosystem requires the development of IT systems in order to collect, store and process huge amounts of data both online and offline.

Innovative financial technology

The development of financial technology began in 2009 after the crisis. Banks used robots to reduce costs, began offering credit to their customers online, and moved financial payments to the Internet. Much greater impact to the development of financial technology made the mobile Internet. As a result, several major financial technologies and capabilities emerged:

  • delivery of services via the smartphone;
  • delivery of services via social networks;
  • alternative payments;
  • marketplaces;
  • innovative business models;
  • artificial intelligence;
  • digital identification and biometrics;
  • open API.

Investing in fintech

For the period from 2010 to 2015 only, the volume of investments in fintech increased to almost 20 billion, which is 10 times more in terms of investments before 2009.

According to KPMG auditing company, the volume of investments in the first half of 2018 amounted to $ 57.9 billion, which outweighed the volume for 2017.

The Fintech boom

Today, many startups do not meet the expectations of investors, although in 2014 the situation was completely reversed. The revolutionary Boom of financial technology fell exactly on that year, in which no name players at that time stood out, and today they are world famous giants of the financial industry such as Square and Stripe payment services, which had raised $ 150 million, Renrenda startup, that had collected $ 130 million, and p2p lending platform.

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What is Artificial Intelligence?

You may not even realize it, but you daily encounter or interact closely with Artificial Intelligence (AI), or at least take part in its training. All modern technologies of the latest generation use AI: smartphones, smart watches, social networks and even messengers, not to mention more serious developments, such as high-intelligence machines.

Artificial Intelligence is a science and technology of creating intelligent machines, programs, and systems capable of solving creative tasks that, as is commonly believed, only a human can handle.

This definition hardly made it clear, so in this article The Coin Shark will answer the most frequently asked questions and tell you everything you need to know about Artificial Intelligence.

What can be related to Artificial Intelligence technologies?

Today, technologies include the latest models of smartphones and other mobile devices, as well as Siri and Alice voice assistants, Google and Yandex search engines, even GPS navigation devices. AI is actively used in the sphere of defense and military affairs, medicine, education, business, and other areas.

What does AI do?

Studies and develops. Let’s have a look at the example of the latest flagships, in which artificial intelligence is integrated into Alice or Siri voice assistants, depending on the operating system of the smartphone. The helpers adapt to the needs and even the character of the user to help with everyday tasks. It is assumed that the assistants can not only find information, but also independently call a taxi, book hotel rooms, etc.

In other words, AI will adapt to a person’s way of thinking in order to solve logical and creative tasks.

What does Artificial Intelligence include?

If we do not go into detail of a complex process of building and learning AI, then artificial intelligence includes neural networks with a huge number of large databases that are replenished every second.

Application of AI in economic

In the economic sphere, artificial intelligence is applicable in banks, logistics, trade, markets and even brewing. Based on AI technologies, which are used in economic, completely replaced a human at some positions as a work unit.

Benefits 

AI greatly facilitates everyday life, not to mention the global challenges. It can solve issues that require a logical approach with such speed that is beyond the power of man. Its another peculiarity is that it can make decisions accurately and precisely with the slightest error. For example, in the field of medicine, AI will soon be able to make diagnoses and even execute complex operations that the medical workers are not able to carry out today.

AI and Robotics

AI and robotics used to be two completely different areas,  but now they are in close contact. They quickly found use in many practical implementations that showed a good result. The symbiosis of AI and robotics is actively used not only in research centers, but also in small and medium-sized businesses. The speed of development is amazing: while humanity have become used to mobile devices, the developers have already begun releasing the first AI robots. At the moment, the international community is demanding smart robotics regulation.

Tasks

AI is designed to solve and perform tasks that are beyond the power of man. For example, in diagnostics it will be able to determine a pathology in the early stages, which will make an insane step in medicine and prolong people’s lives. Also, AI can effectively use resources, for example, in production. In transport logistics, smart cars will work out the most optimal route to save fuel and reduce vehicle wear. There is a huge amount of tasks that AI can solve, but they all should be led to simplification, economy and accuracy.

Development 

It is difficult to predict the development of AI since the direction is developing rapidly. For just a few years humanity has witnessed how machines can reproduce human speech and logically answer questions. So far it is known that the potential of artificial intelligence is not even half used.

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