Where is it Better to Exchange Coins: On the Stock Exchange or In the Exchanger?

exchange coin

The vast majority of all operations with the cryptocurrency is carried out on exchanges with multi-million turnover. And what are the exchangers offering promising conditions for buying / selling the cryptocurrency? How do they differ from exchanges? We will consider it in this material.

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

  1. What is the exchanger?
  2. How does the online exchange of cryptocurrency work?
  3. Principal differences between the stock exchange and the exchanger
  4. Where is it better to buy/sell cryptocurrency
  5. Advantages of online exchangers
  6. What should a safe exchanger look like?
  7. Conclusion   

1. What is the exchanger?

The name gives the answer – it is the place where you can exchange the cryptocurrency for fiat or for other coins. There are two types of exchangers:

  • Online. This is a site where a visitor can make a purchase / sale of a cryptocurrency at a fixed rate.
  • Offline. Here, the currency can be exchanged for real money, having received a cache in the specified place – at the checkout or office.

Exactly the same is the work of known to all exchangers, working exclusively with fiat money.

2. How does the online exchange of cryptocurrency work?

The main condition for someone who wants to buy a coin is the presence of a cryptowallet. If any, the procedure is simple:

  1. Simple and not always compulsory registration;
  2. In the menu, find the currency you want to buy or sell;
  3. Fill in the fields with the requisites;
  4. Agree with the exchange rules and click “Exchange”.

You will be notified of the operation by e-mail notification. Cryptocurrency exchangers work in different modes:

  • Manual mode assumes that each operation is processed by an operator. It’s always long.
  • In semi-automatic mode, Bitcoin exchange can last half an hour or more, depending on the exchanger.
  • In the automatic mode, currency cranes operate with immediate withdrawal of funds.

The cryptocurrency exchanger has little to do with a stock exchange, with its adjustments, quotations, orders. But the investor is more interested in the price than the technical side of the exchange.

3. Principal differences between the stock exchange and the exchanger

At the exchange there are traders who determine the price of coins. In the exchanger, trading is inappropriate, because the course is determined by the owner of the resource. Is it good or bad?

On the one hand, there is no place for exchange speculation on the exchanger. On the other hand, there is always a real coin price on the stock exchange, which rarely coincides with the exchanger’s rate.

4. Where is it better to buy/sell cryptocurrency

If it is a matter of profit, then on the exchange with its market rate. The owner of the exchanger, of course, is guided by stock quotes, but his rate is always higher. By the way, the commission in the online cryptocurrency exchanger can differ from the stock exchange in the tens, and even hundreds of times.

In terms of convenience, the exchange also looks preferable, as it works around the clock without days off, which cannot be said about many exchangers.

An important point is the amount of currency reserves. If there are no problems for an exchange with a multimillion-dollar daily turnover  to make almost any transaction , then a poor exchanger can sometimes offer to wait an hour or two before the required amount of bitcoins or fiat appears. The security of the exchangers also raises doubts. If the top-level exchange is guaranteed to be protected against cyber attacks, then how this issue is decided by the owner of the exchanger is known only to him.

5. Advantages of online exchangers

All of the information mentioned above does not exclude the essential advantages of the cryptocurrency exchangers:

  • User-friendly interface. Registration procedure is extremely simplified, and often completely absent.
  • Any exchanger is fully integrated with all popular payment systems.
  • For registered customers, there is a program that provides an incremental discount for each subsequent exchange.

But all these advantages do not matter if the exchanger offers a disadvantageous course.

6. How should a safe exchanger look like?

A successful exchanger must work at least for a year. To be confident in successful exchange, you should take an interest in reviews on independent resources. In view of the volatility of the cryptocurrency, it is necessary to give preference to exchangers with automatic or semi-automatic mode. A good exchanger has enough reserves of cryptocurrency and fiat, it and its support work around the clock.

7. Conclusion

Online exchanger is a fast service for buying or selling coins. But it is completely unfit for trader strategies, since its commission can eat all the potential profits.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

The List of Bitcoin Mainstream Trends Which Will Dominate in 2019

Bitcoin is one of the most famous cryptocurrencies in the world. It is actually the first one, thus, no matter what might be, it has already gone down in history. Even though the cryptocurrency may not be that popular right now, due to various reason, some changes are already inevitable, hence, let us just check on trends which will become a part of everyday life in 2019.

1. Bitcoin ATMs

The number of Bitcoin ATMs is growing rapidly. It is a kiosk which allows a person to buy/sell Bitcoins in cash or by credit card. They actually look like an ordinary terminal, yet, it is connected not to bank account, but to Bitcoin exchange. The number of Bitcoin ATMs in the world accounts for 4292 at the time of writing.

Source: www.statista.com

Such ATMs will definitely encourage people to use cryptocurrency, since now it becomes more understandable for ordinary people. If people get accustomed to use Bitcoin ATMs, then crypto will see a bright future.

2. Central banks and Bitcoin

Some people do not want to get involved in crypto as it lacks regulation, including bank regulation. However, in 2019, one of Bitcoin trends may become partnership between central banks and cryptocurrency.

Several banks have already introduced systems how to work with crypto. Bank of America, for example, has officially patented a system for saving crypto actives for significant corporations. Moreover, this week, one of the biggest American banks, JPMorgan Chase & Co, has announced that it developed its own digital coin – JPM Coin.

Perhaps, such implementations will bring positive effect on the relationships between crypto and financial institutions.

3. Bitcoin in smartphones

Since the beginning of the third millennium, a cell phone has become an integral part of our everyday life. By using a smartphone we can do almost everything that is connected to our work, study, leisure, or hobby. Financial transactions, including crypto operations, are no exception.

On May, 2018, Huawei Technologies Corporation provided users of its smartphones with the opportunity to use Bitcoin wallet BTC.com. At the end of the past year, HTC company released the smartphone Exodus, powered by blockchain. A person can only purchase the phone with digital currencies.

It is too early to say whether these phones will be successful and useful or not, yet still it is very important that world is trying to meet the needs of everyone.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

Japanese Giant GMO Internet Lost ¥1.3 Billion in 2018: Report

One of the biggest Internet companies in the world, Japan-based GMO Internet Inc., posted a report on its financial performance. An operating loss accounts for ¥1.3 billion (~$11.75 million) in 2018.

GMO’s mining business

According to the report, mining business fared very poorly in 2018 which resulted in great losses. The company explained that the business did not increase as expected due to the collapse of cryptocurrency market in Q4. The report provides  the table where we can see the real revenue and real loss of the company. The data provided below does not include “extraordinary losses” of approximately $319.2 million.

Source: GMO Fiscal Report 2018

Alongside, Internet giant announced that it would implement a policy change regarding to their mining business model. The company will sell its bitcoin mining assets at cheaper rates to compensate for a portion of its annual losses.

Moreover, GMO plans to relocate mining centers to the regions where power supply is cheaper. The centers allegedly will be somewhere in Northern Europe.

GMO’s Bitcoin exchange

Source: GMO Fiscal Report 2018

According to the report, the company’s quarter-revenue has fallen by 66.7%, even though the company annually posts about its 7% profit from its crypto exchange GMOCoin.

In 2018, GMOCoin recorded a net sales of ¥4.02 billion (~$36.33 million). In Q1, crypto exchange has lost about ¥76 million, yet, high sales of next quarters compensated them. The fall of cryptocurrency market has also played a significant role in GMO’s revenues. Each phase ended on a lower note than a previous one in terms of sales, while the profits remained marginal.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

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.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

Changpeng Zhao: Binance Chain Testnet Will Go Live on February 20

The CEO of Binance, Changpeng Zhao, has recently hold a livestream session on Periscope where he expressed his particular interest in several developments surrounding the exchange and its projects, namely the Binance Chain network. During the session, he stated that Binance Chain is about to be launched, so let us deep into details:

The most important things to know about Binance Chain

Binance Chain will go live on February 20, according to the official tweet posted by Changpeng Zhao.

The chain is built on the Tendermint protocol developed by the Cosmos Network project. Zhao thinks that it is the most suitable architecture for trading platform. Moreover, Binance Chain will be operated on Delegated Proof of Stake, DPoS and Byzantine Fault Tolerant, BFT.

Binance Chain does not have any smart contracts and many other functions irrelevant to their project.

“In the Binance Chain, there is no smart contracts. We just have an interface for you to issue a token then you can trade it. Binance Chain is a very simple chain in terms of application but it can handle very large loads. It is our opinion that the load is more important than features…,” Changpeng Zhao commented.

The platform users will be able to issue tokens based on Binance Chain and launch ICOs to raise funds in BNB tokens.

Increase in BNB Price

Since the beginning of the month, the price of Binance coin has been increasing significantly. According to the CoinMarketCap, the price at the time of writing is $9.41. You may see the upward tendency of the BNB price below.

Source: CoinMarketCap

One of the reasons why BNB coin is doing so well is the launch of Fetch.AI on the Binance Launchpad. It is a project which aims to bring together machine learning, AI and blockchain to create an economic internet. The launch is scheduled for Feb 25th which is 2 weeks away.

Each token that is launched on the Binance platform accepts $BNB by default. That is why it increases demand for Binance Coin which in turn increases the price.

One of the Twitter users @walter_wyckoff posted an interesting information regarding to the correlation between the increase in volume and increase in price for $BNB.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

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.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/

Huobi Launches New Fiat-To-Crypto Exchange: Full Analysis Of Forthcoming Platform

Huobi decided to expand its market in the Western Hemisphere, therefore, US-based subsidiary Huobi.com launches a new fiat-to crypto exchange, which will operate in the USA.

Preconditions for launching the exchange

Creating a new platform sounds quite weird especially against the background of drastic downfall of cryptocurrency prices, which led to decrease in exchange volumes. Yet, Huobi, being in top three crypto exchange by 24-hour trading volume, seems not to care about it at all.

The company has recently announced a large-scale rebranding of his US strategic partner HBUS. Later, the company adopted Huobi brand and renamed itself into Huobi.com. Now Huobi.com is opened for American customers, and it also has started a partnership with Prime Trust not long ago. The latter is a Nevada-based trust company that provides services of withdrawal and deposits for the users.

With this partnership and the fact that other crypto exchanges are rolling out support for international fiat currencies, Huobi.com made a decision to grow up  and go beyond crypto-crypto transactions.

What do you need to know about the platform?

Firstly, the company plans to add three major coins to the platform, these are Bitcoin (BTC), Ethereum (ETH) and Tether (USDT), they will be tied to US dollar. The listing of other pairs will depend on customer response.

Secondly, the exchange set minimum deposit and withdrawal limit, which is $100. Though the users are bound to register with Prime Trust in order to deposit USD to the exchange. The custodial account requires the completion of Know-Your-Customer (KYC) identity verification checks.

We want to remind you that Huobi plans to launch its own stablecoin in the first half of 2019. Singapore-based cryptocurrency exchange has already a substitute for stablecoin, namely HUSD; it supports four US-regulated stablecoins: Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollar (GUSD). Unfortunately, the report did not specify which currency the stablecoin will be pegged to.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/