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.

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BTCC Opens Its HQ in South Korea

BTCC Opens Its HQ in South Korea (alien, space)

Crypto exchange BTCC decided to expand its services worldwide, launching its business in South Korea. The platform will set a beta-version on October 31 this year, and the debut appointed in November.

The exchange stated that it will provide not only the trading, buying/selling services, but also a possibility to create own a wallet, a mining pool and a consumer payments service. There is still no information about the coins listed on exchange.

A person, called Lee Jae-beom, will be a head of BTCC’s operations in Korea. He claimed that BTCC Korea planed to demonstrate a new vision of cryptocurrencies.

BTCC is a Chinese cryptocurrency exchange which was formerly expelled from mainland China due to inconsistency with the rules. Then it was moved to Hong Kong, where it support trading of five cryptocurrencies. We remind you

Bitcoin Is in Danger: Chinese Hegemony Over the Industry

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The Cryptocurrency Exchange Huobi Is Going to List Four Stablecoins

Huobi news (cosmonaut)

The major digital currency exchange based in Singapore, Huobi, will follow the example of its “colleagues” and add 4 trendy cryptocurrencies tied to the US dollar.

The list includes such coins as:

Gemini dollar (GUSD) – the creation of the Winklevoss twins;

– Circle’s USDC

– Paxos Standard Token (PAX)

– TrueUSD

Customers will have access to the new cryptocurrencies at the exchange from October 19.

We would like to remind you:

OKEx Adds 4 Stablebcoins To Its Listing

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OKEx Adds 4 Stablebcoins To Its Listing

A well-known cryptocurrency exchange OKEx announced the support of four stablecoins on its official Twitter account, namely: TrueUSD, USD // Coin, Gemini Dollar and Paxos Standard Token.

Starting from October 15, the platform users will be able to make deposits with these assets. Bidding will start the next day. Tokens will be traded not only in pairs with BTC, but also with Tether.

We also remind, an Internet giant GMO Internet announced the release of its own stablecoin, which will be backed by yen:

Japanese Internet Giant Launches Its Own Yen-Pegged Stablecoin

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A Group of Investors Bought the Crypto Exchange Bithumb

bithumb was sold

As mentioned in the Korean news media, an association of major Singaporean investors BK Global Consortium is now the rightful owner of one of the largest Korean digital asset exchanges, Bithumb.

One of the Consortium members previously used to own a big amount of company’s shares. He has also invested in multiple blockchain-based projects in Singapore.

In the future, the new management of Bithumb is going to proceed with its plan to launch a decentralized branch and is also considering the creation of their own stablecoin.

We remind you:

Bithumb Is Going to Open Up a Decentralized Cryptocurrency Exchange

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What is Ethereum Address (ETH address)?

This information will be useful for those readers who are the beginning of their way in the cryptocurrency world. In this article we will talk about such concept as Ethereum address, find out what it is necessary for, where you can find it and see it. So let’s get started.

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

  1. What is Ethereum address and what is it for?
  2. Difference between online and offline addresses
  3. Conclusion

1. What is Ethereum address and what is it necessary for?

To begin with, it should be noted that Ethereum is the second most popular and capitalized coin. It has significant differences from the flagship of the industry with a good sense of the word. Ethereum has a more advanced technological base. For example, Bitcoin, in fact, is only a payment system, and on the basis of Ethereum you can create your own coins and smart contracts. Ethereum is a platform from which, potentially, a great number of companies and individuals can operate.

So, we are over with the introductory part, now let’s get to the essence of today’s question. ETH address is a certain unique set of letters and numbers, with a help of which a specific wallet can be identified. It is necessary to transfer coins from one wallet to another. It can be easily shared, since knowing it doesn’t reveal any important information about the owner and the state of balance.

Only the owner can receive the address. To get it you have to run the wallet application on a computer or mobile device. Without any doubt, in the interface of any crypto wallet program (there is a large number of services for storing Ethereum) you will find a special button that will automatically generate the wallet address.

2. The difference between online and offline addresses

If you are just starting your crypto journey, then you probably do not know that there are different types of digital wallets. We will dig into this topic too deeply, but just describe the main points. More information about the classification of wallets can be found on our website. So, the wallets can be:

  • Online. These include web-wallets and personal accounts that are on the exchanges. This is the most insecure, but the most convenient way to store and exchange coins.
  • Desktop and mobile apps. These are so-called hot wallets. They are more secure than online solutions, but with their help it is no longer possible to make transfers so quickly.
  • Hardware wallets. They are the safest way to store coins, since it is virtually impossible to hack them and get access to assets. But they are very inconvenient for every day use. This type of wallet is ideal for long-term storage.

So, you can get an Ethereum address both online and conditionally offline, on a desktop or mobile wallet application. Сonditionally offline, because even if the wallet is physically located on the computer, you need access to the Internet to work correctly. There is no principal difference between online and offline addresses, the only thing is that coins will arrive either on an online wallet, or on a desktop or mobile application.

It is very important to use only official wallets for storing ETH or any other coin. Since they are best optimized for work with this or that blockchain, and also have more advanced level of security than a service that was developed by third-party developers.

3. Conclusion

Everything about cryptocurrency topic seems so complicated, but this is only at first glance. Of course, the wilds of cryptography and the operation of algorithms are not easy, but for ordinary users such information is absolutely useless. The knowledge that is necessary in order to use cryptocurrencies can be obtained by any average person in the shortest time possible .

So, in this article, we discussed what Ethereum address is and found out that this is only the identifier of a certain wallet and is needed to transfer coins from one account to another.

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Bitcoin Investment: Should I Invest in Bitcoins?

Bitcoin currency has already been used as a kind of a fiat money alternative for about 9 years. It is relatively popular all around the world. The first digital currency has made many people go nuts following the impressive ups and dramatic downs of its exchange rate.

Today, in October 2018, the whole cryptocurrency industry is looking forward to observing a new crypto-“miracle”. Search engines are overflowed with all those “How to invest in cryptocurrency?”. And this is not particularly surprising. Traders and different investors who own a significant capital expect cryptocurrency to be a promising investment tool in the long term. And if we talk about cryptocurrency, that basically means Bitcoin. Well, of course, there is a number of altcoins that can be worth making investments, but the first digital currency is definitely the most popular one.  

People still talk about investing in Bitcoin and this topic is interesting for many traders, investors and casual users. So, let’s take a closer look at this issue.

How to invest in Bitcoin

Before making an investment, one should obviously choose the way he or she wants to get some BTC. First of all, it depends on financial capacities. There are indeed many different options to invest in Bitcoin, but we will focus on two main ways that are currently the most popular and probably also the most effective.

Option №1: Taking advantage of the rate differences as a way of BTC investing

You might have already come up with the question, why people are still interested in making investments in Bitcoin when it costs less than $7 thousand per a coin? Well, influencers, opinion leaders, independent experts, and different analysists are confident that we will soon observe another sustainable increase of Bitcoin rate. And that is why many people start thinking about investing in cryptocurrency to make money out of the rate differences.

But what is the way to do that? It is actually pretty simple. All you need is some basics of math. In fact, investors are not really sad about the fall of Bitcoin. Many of them are even happy, especially those who believe that the cryptocurrency has a great future ahead. Today, if a trader purchases a BTC for $6,5 thousand, he or she will manage to make a good profit, in case BTC rate increases. Some really expect it to rise up to $30 thousand, and in this case, it will really be a good bargain. The key point here is whether the rate increases or not, of course.

Option №2: BTC mining

Besides, users can invest the special equipment that is used to mine Bitcoin. You may already know, that each BTC is actually a kind of a reward, given for the performance of certain calculations, necessary to issue new coins. Today these calculations are rather complex and require special high-performance equipment called ASIC-miners. The more users are there in the system, the more difficult are these calculations. This is called Bitcoin difficulty and it ensures that it always takes around 10 minutes to create a new Bitcoin block.

Investing Bitcoin this way means that you can get a certain number of BTC and store it till the rates grow or exchange it for another digital currency like Ethereum.

However, you’d better do not think that these two investment options will bring you fast and easy profit. This is possible only if the cryptocurrency rate increases significantly and in the case of mining, if your equipment has enough performance.

By the way, here is one more option of BTC investing. It`s actually difficult to say that it is a comprehensive way to invest in the cryptocurrency, but, anyway, many people use it today.

Bitcoin faucets

These are special websites, where users can get a reward for making certain easy tasks, usually related to online advertising. These rewards are paid in satoshi. The thing is, that one BTC includes as many as 100 000 000 satoshi, so one satoshi is only 0,00000001 BTC. So it`s actually a tiny piece of the market`s largest cryptocurrency. Investing BTC using Bitcoin faucets is not really effective, as you may never manage to collect at least one single coin.

Is Bitcoin a good investment

Well, if you have already decided to invest in digital currencies then Bitcoin will probably be the best option. Not only this cryptocurrency is a market leader and the most popular digital coin, but also it has relatively good liquidity as compared to other virtual assets. Many cryptocurrency followers believe that Bitcoin has a potential to become the main means of payment in the future. However, there are also those who bet on other digital currencies, as well as those who do not consider virtual coins as an investment option at all.

By far it seems that the question is it worth investing in Bitcoin remains undetermined, so let’s make it a little bit more clear. Bitcoin is relatively anonymous, decentralized and has a limited number of coins available for mining. This is, in fact, why hundreds of thousands of cryptocurrency followers made their decision in favor of BTC.

Anonymity

Investors do not have to disclose their personal data. The information about each transaction is public and everyone can see the address of the cryptocurrency wallets of a sender and a receiver, as well as how many BTC were transferred. However, the information related to owners of cryptocurrency wallets is not disclosed, so the whole system is relatively anonymous.

Decentralization

Bitcoin worth investing, as it has a decentralized management, which means there is no single administrative center. Transactions are carried out directly between users in a peer-to-peer network. However, Bitcoin users still have to pay certain commission fees for transfers of their virtual assets, because every transaction is confirmed and recorded in the blockchain by miners who receive rewards for this. Today small transactions are often not effective at all, as the commission fee is rather big. However, if a transaction is large, the commission fee will be relatively low.

Limited number of coins

Is Bitcoin a safe investment –  “yes” is the answer of many people, who believe that a limited number of Bitcoins to be mined is a strong advantage of the digital currency. It will prevent BTC from inflation.

“Why should i invest in bitcoin?– you may ask. The answer will probably contain both pros and cons. And that`s because Bitcoin has some special features, which are:

  • 24/7 trades, that allow making investments at any time;
  • most indicators have a rather good quality;
  • high volatility;
  • possible positive prospects of cryptocurrencies and, as follows, positive expectations related to Bitcoin investments.

Bitcoin investment trust

The risk remains here almost all the time and no one can guarantee that your money is 100% safe. Here are several examples why it can be rather risky to make investments in the largest cryptocurrency by market capitalization. Yes, Bitcoin still has a decentralized management, however, in a certain way the system is getting more and more centralized. This risk of investing in cryptocurrency is related to the fact that BTC rate starts depending on cryptocurrency exchanges.

Moreover, the significant part of all Bitcoins is owned by those who are engaged in mining or lease out high-performance mining equipment. Making new Bitcoins requires really a lot of computing power and gets more and more expensive. The competition within the system increases and it is almost impossible for casual users to join Bitcoin mining. That is why many people have already switched for other digital currencies that are easier to mine and can be later exchanged for BTC.

In some cases, Bitcoin`s anonymity is also a risk. Anonymous deals can be used for money laundering, as there is no effective state regulation of cryptocurrency transactions.

How to invest in Bitcoin stock

There are special cryptocurrency funds, similar to mutual funds that exist in the world of bonds and stocks. These funds are managed by private parties and it influences the interest rate. For instance, some cryptocurrency funds provide 1-2% per day.

Bitcoin investment strategy

There are two main types of cryptocurrency investment strategy.

The first one: investors buy BTC and sell the cryptocurrency when its rate increases.

The second one: Bitcoin holders trade their digital assets on cryptocurrency exchanges. This strategy is very similar to Forex trading.

Minimum Bitcoin investment

Many people decide to invest in Bitcoin because they hope to get huge profits in the long term. So, even a small investment is considered to be rather promising by many cryptocurrency followers. Eventually, the smaller is an investment – the lower is the risk. But, on the other hand, a really small investment can just be useless. Anyway, how much to invest in Bitcoin remains an open question and everyone has their own opinion.

Who said users can only invest their money? It is also possible to get BTC for free by investing one`s intellectual work. Well, just a bit of BTC, to be honest. Special websites offer users the opportunity to earn satoshi – the smallest fraction of Bitcoin – for the performance of different easy tasks, usually related to advertising. These websites are called Bitcoin faucets.

The main advantage of such an option is that users do not have to invest a single penny to get a piece of BTC, however, the drawback is also rather significant – it will take a really long time to get at least one BTC.

Invest in Bitcoin mining

Mining is actually how new digital currency is issued. Making investments in Bitcoin mining means buying special mining equipment or renting it from different providers. Cloud cryptocurrency mining is also possible. These services lease out their mining equipment for users to rent a particular amount of processing power.

There are some experts who think that cloud mining is actually the best way to invest in Bitcoin, as users don`t have to purchase, set, maintain and update expensive mining equipment.  

Anyway, both traditional and cloud mining still require preliminary investments.

Bitcoin investment sites

Before making investments in Bitcoin, basically, before purchasing it, you should have a cryptocurrency wallet to store your digital assets. Today Bitcoin holders and those who want to join them are lucky to have a large variety of different cryptocurrency wallets. These are, for example, mobile, hardware, online, desktop, cold, and even paper wallets.

If you are planning regular digital currency investment, we recommend having a local hardware wallet. However, it actually depends on what is more convenient for you and what meets all your requirements and there is really a number of options you can choose from. Do not forget to activate your cryptocurrency wallet.  

Usually, Bitcoin is purchased on cryptocurrency exchanges. It is really important to choose the right one, so we recommend taking the following criteria into account:

  • a region, where the exchange is registered;
  • input and output, exchange, transfer options, etc. – basically, what you can do with your funds in a digital wallet;
  • commission fee level;
  • reputation;
  • security level.

This will help you figure out whether is it safe to invest in Bitcoin.

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