The US Government is planning to regulate Cryptocurrencies and other virtual money. There is no reason for this except they are concerned about the potential abuse of such currencies and the way they can be used by criminals to their advantage.
It has been proven that there is a high degree of potential fraud in the real world and the potential for abuse is even greater when a person is using one of these virtual currency exchanges. They are not regulated in any way and their security measures cannot measure up to any real world system.
The government will probably start regulating these currencies in the same way that they do regular currencies. This means that people can only deposit money in an account if they can prove to the lender that they have a high credit score. And then they can use that money to transact in real money once they reach the agreed upon limit.
People who run large amounts of virtual cash have been known to commit some fraud, but it is impossible for the government to know what they are doing and how they are doing it. This is why they want to regulate the use of these currencies and force people to hold them within the banking system.
This will make it very difficult for the government to monitor what happens in the market or at the central bank. Even if they were able to do this they would be unable to determine what a person was doing or where they were spending their money.
The problem with all of this is that there is no real threat to the economy or the financial system from a lack of regulation. The only real danger is that criminals will be able to take advantage of the growing popularity of these currencies by using them to their advantage.
Criminals have been known to use the anonymity of the Internet to conduct all sorts of scams. They have done so many times before and it is only going to become more difficult to stop criminals from conducting their schemes when all forms of regulation are banned.
When they do try to regulate these markets, they will have to ban all forms of investment within the accounts of all institutions as well as ban all transactions between users of those accounts and the central bank. They cannot keep track of what people are doing with their money and they may find themselves at the mercy of a few criminals.
So why would the government want to ban all transactions in these virtual forms of money and not only that, they may even be able to ban the central bank? Because they do not want anyone to be able to control the flow of these currencies or because they do not trust the central bank itself.
Central banks all over the world have made mistakes in the past, they might have mis-sold certain products or given out bad advice and the governments of those countries ended up having to pay the consequences. It is not a good thing to end up in such a predicament.
The reason that central banks all over the world have fallen into trouble is because they have a tendency to make mistakes. If they did not make mistakes, they would not need to regulate these markets as they are not as capable of making the right decisions as humans.
A central bank is supposed to be the banker of the country and if they made a mistake, it will inevitably be the price of the currency rises. And since it cannot be controlled, the currency is going to go up.
Governments all over the world will soon realize that they cannot afford to risk their currency by allowing this to happen, so they are going to step in and try to regulate them. Only time will tell if this will work but you can be sure that we will see a rise in central bank failures in the near future.
The safest and most secure way to buy Bitcoin and other cryptocurrencies is by using the Coinbase platform. Coinbase is available in most countries and provides the best user experience when compared to other platforms.
The platform has a downloadable mobile app that allows you to trade at your convenience. Though Coinbase isn’t the only platform you can use to buy cryptocurrencies, it’s no doubt unrivalled due to its advanced features.
Now that you’re familiar with the platform, it’s worth noting that Coinbase can be used in other ways. You can buy other popular cryptocurrencies like Ethereum. Coinbase also acts as a wallet for your Bitcoin.
If you were invited on Coinbase by a friend, request to sign-up via their affiliate link to get free $10 worth of Bitcoin once you spend $100. With that said, let’s learn a few tricks you can use to avoid fees!
How to Avoid Fees On Coinbase
Use the following steps to avoid being charged when trading on Coinbase.
To get Coinbase on the go, download the Coinbase app. The desktop version looks different from the app and it’s highly recommended to sign-up on the desktop.
After verification, add payment options and start trading to increase your limit.Disclaimer:Risk what you can afford to lose.
Being a broker, Coinbase charges fees for each trade you make. After loading your wallet and funds have cleared, go to Coinbase Pro and trade using limit orders- this allows you to avoid fees!
Advantages of Coinbase Pro
For professional cryptocurrency trading, Coinbase Pro should be your platform of choice. Coinbase Pro has the following amazing features designed to make your trading safe and secure.
Saving on fees
Though trading on Coinbase is fast and easy, the fee charged is likewise higher- specifically when purchasing using debit and credit cards. However, you can avoid payment of fees by trading on Coinbase Pro.
Payment Methods
Investors from the USA can fund their wallets directly from their banks using ACH transfers. Funds can be transferred to Coinbase Pro from your Coinbase wallet free of charge. Most importantly, deposits to your Coinbase Pro are unlimited.
Countries Supported
Currently, Coinbase Pro supports over 40 countries. If your country is not included in the list, keep checking their website to get an up-to-date list.
Insurance
Investor’s funds are FDIC insured. In the event of a loss, customers are compensated up to a tune of $250,000.
API Support Enabled
Coinbase Pro secures its customer’s investments by use of programmatic robots. With APIs, investors have access to real-time trading data.
Security and Confidentiality
Regular IT audits are done and a substantial percentage of the investor’s fund is kept offline for confidentiality purposes.
Cryptocurrencies and Fiat Pairs
Coinbase Pro provides their customers with a wide variety of trading pairs, USDC Stablecoin being a popular cryptocurrency pair among traders.
Leverage and Margin Trading
Coinbase Pro offers a higher margin trading leverage,3× more, in some pairs.
More Ways of Buying Bitcoin and Other Cryptocurrencies
Though Coinbase and Coinbase Pro rank high on the list of the best platforms, investors can purchase cryptocurrencies using the following platforms.
Anycoindirect
This online exchange platform does not provide a reliable online wallet. Customers transfer funds to the provider directly from the bank account. After receipt, Bitcoin, worth the amount remitted is transferred to the address provided during sign up.
Kraken
It is available in the USA and Europe. Bank transfer is the primary mode of purchasing Bitcoin from Kraken.
Bitrush
It is only available in Europe. Investors can buy Bitcoin instantly via Mybank, Bancontact, Credit cards and IDEAL.
Gemini
This exchange and trading platform is currently available in the USA. It allows investors to store, buy and sell digital assets. Investors are FDIC insured and entitled to a compensation of $250,000 in the event of a loss. Bank deposit is the primary mode of purchasing Bitcoin.
Bitstamp
This is the only licensed and regulated virtual currency exchange platform in the European Union. Investors use bank transfers to deposit funds and purchase Bitcoin.
LocalBitcoins
LocalBitcoins is a peer-to-peer exchange platform. It connects local traders who dictate the terms of trade. It’s flexibility in terms of confidentiality and payment methods make it a popular platform for local traders. Investors can choose to pay via bank transfer, cash or even PayPal.
Shapeshift
This exchange platform is perfect for investors with a big portfolio of cryptocurrencies. It allows traders to exchange coins back and forth without going through the process of registering a new account.
Conclusion
Without a doubt, investing via Coinbase is the surest way to have a secure, easy and convenient trading experience. The presence of popular financial institutions and hedge funds on Coinbase is a good indicator that this is the exchange platform of choice for investors.
Using this guide, you can rest assured that you have reliable and accurate information on how to buy Bitcoin and other cryptocurrencies.
In the past few years, the hype surrounding the concept of digital currency has soared. One such currency is known as “Bitcoin”. Many people have heard about this currency, but few are actually aware of what it is, or how it works.
The popular digital currency has been referred to as the new “gold”, and in many ways it is. It does not lose its value like paper currency. Instead, like gold, it has a limited supply of coins that are constantly changing in value. As a result, the value of one coin goes up and down based on the demand for that particular coin. In addition, the price of the new coins is determined solely by supply and demand; unlike paper currency which are affected by interest rates.
Because of the many different ways in which this particular digital currency can be used, its price fluctuates all the time. This is why it is important to know as much about it as possible before investing any of your money.
As was previously mentioned, because it is different from traditional currencies, it is a precious metal. Like gold, it has a limited supply, therefore its value is always going to rise with demand.
One of the greatest things about this currency is the increase in value that it receives on a daily basis. This is because it is more widely accepted than traditional money. Because of this, it tends to go up faster.
Another major advantage of this currency is that it is extremely secure. Because it is digitally generated, there is no need for an outside third party to verify the information, making it very difficult for hackers to steal your coins.
Finally, another big advantage of this particular currency is that it is able to be exchanged across the world instantly. This is beneficial to individuals who live in different countries.
In today’s world, it is not easy to have money in a single country. By investing in a digital currency such as “Bitcoin”, you can have it in one place, while also keeping your money abroad.
With the current state of the global economy, this is very important. Even with the current state of the global economy, there is still a big chance of inflation in a few years.
With inflation factor being the biggest issue right now, the value of this virtual currency may continue to increase as it becomes more widely accepted. It could become the “gold standard” that people use in times of inflation.
For some people, using this method is a better option because it is more secure, can be used anywhere, and is very secure. In fact, it can help those who may have had bad experiences with credit cards.
You do not have to maintain a balance in your own computer. You do not have to worry about the value of your card going down or the security of your money as it fluctuates.
Finally, it is also easier to use because there is no “tray” to keep track of your balance. This makes it easier to conduct trades. It is as simple as having the “computer on your wrist!
One of the benefits of using a digital currency is that you will be able to use it from anywhere. You do not have to make a trip to your local bank, nor does it require a check or wire transfer.
You can use it from any number of different locations. This means that you can get your money into any country that is convenient for you.
The great thing about this is that you can get the opportunity to make more money than you can imagine! If you invest in it, you can create a great return on your investment.
While you might have heard plenty of statistics throwing up around suggesting that the average ratio of wealthy Forex traders against those who failed in their trades is fairly small, there are still a few reasons to doubt such claims. First, hard numbers aren’t easy to come by for the reason that the over the counter, decentralized Forex trading market. But what is available is definitely not good enough to warrant this conclusion.
Of course, it’s easy to make a claim like this because most people who trade are relatively wealthy because there are so many opportunities for them in the trading world, yet very few of them actually take advantage of it. They’re the ones who claim that Forex trading is just plain easy, and then they start buying and selling without doing any research on which currencies to invest in or how much to invest in. They believe they can do all of this on autopilot. Yet they never seem to learn from their own mistakes and end up in a bigger hole than when they started.
If you’re among the many individuals who fall into this trap, then you should probably stop reading this article right away. I want to tell you why I think it’s not possible for you to become rich through Forex trading and make it big in the markets. You see, if you’re trying to get rich with Forex trading, then you’ve got to do something about your trading habits.
The first thing to remember is that trading Forex is like playing the stock market; the rules of the game are totally different. It doesn’t matter if you have an MBA or an MBA in Business, when you trade in the FX markets, you have to think like a trader instead of like a stock market investor. It’s no use having all that education and all that experience if you don’t know what you’re doing. And that’s what you need to learn if you want to become successful in the markets.
So what’s the best way to learn Forex trading? Well, it’s simple: get a mentor who is a Forex trader and work closely with him/her. Of course, you need to pick a Forex trader who is successful so he/she can provide you with solid advice and will help you learn from your mistakes, but otherwise, you need someone who will keep you abreast with the latest trends in the trading market and who will give you tips on how to improve your skills.
Don’t let the market make you afraid of success because it’s good things in life that have to happen. A good trading system will allow you to trade according to the current trends in the market. If a trend goes against you, just trade off and move on. It might take a while to get back into the trend, but it will come back stronger and be more profitable.
If you make the wrong decisions, then you need to make sure you learn from your mistakes as well. Do you know anything about this? Then you need someone to guide you through that process. But you need to choose wisely when choosing your mentor because there are plenty of people who claim to have the answers to your questions, but in fact they can’t help you in the long run.
A mentor in the Forex markets will teach you everything you need to know, but you need to listen carefully to what he/she tells you and don’t jump into trading blindly and you need to work hard. and persistently until you master the tricks and techniques of trading. If you do that and you start making money, then the time you spend on your mentor will have paid off.
Buying Cryptocurrency with PayPal is the easiest way to start investing in the future of this market. There is no doubt that trading Cryptocurrencies has been a lucrative opportunity for many people to get involved and see their investment skyrocket fast. There are many people that invested a small amount just a few years back and now they are seeing the profits of that small amount becoming well over ten times its original value.
Of course the question remains whether or not this is a good option or not because if you are like most people then investing a large amount of money in the future of currency is going to be very risky at first. It is true that when you invest a large amount of money in the future of currency like when you buy Cryptocurrencuries with PayPal you will need to do your homework and research all of the different options that are out there. This can be time consuming and it can also be costly depending on the type of information that you are looking up. This will make the process of investing Cryptocurrencursitcuries with PayPal a little bit more challenging, but if you are willing to put in the effort, you will end up with the returns that you have been looking for.
Many people want to jump into the future of currency trading without having the proper research done and this is where using PayPal comes in. Using PayPal is easy because once you have an account with them, you will be able to do all of your transactions online. The biggest advantage with using this type of method is that you can do all of your research in one place which is always important to do.
When you are using your PayPal account to buy Cryptocurrencursitcursives with PayPal then you will need to sign up for an account with them. When you do this, all of your information will be stored securely on their website so that you will be able to access it at any time. This means that you will not need to worry about getting your account hacked or having someone steal your information.
Another advantage to using PayPal is that it is easy to send and receive funds to your PayPal account. The reason why this is important is because you will be sending a lot of money through your PayPal account each month and you will want to know how much money you need to send each month in order to make sure that you are sending the correct amount every month. This will help to keep your budget in place and not overspend when you start investing Cryptocurrencursives with PayPal.
Probably the biggest advantage that PayPal has to offer when it comes to investing in Cryptocurrencies is that it can be used to withdraw your funds from any other major banking institution. If you live in the United States and have access to a bank account then you can use your bank account to withdraw your payments and deposits. This can also be a big advantage because it can give you the ability to take money out and invest in other countries around the world without any hassle.
The biggest disadvantage that this method can have is the fact that it does take a lot of time to make it through the process. It will take a long time to make it through the verification and processing that need to take place with your bank. Because of this, you may not see your funds come into your account right away.
However, you should remember that a good reason to choose PayPal when it comes to investing in Cryptocurrencursives is the fact that it can allow you to get some fast results. You will be able to get a lot of money into your account in a relatively short amount of time. There are also a lot of options available if you want to look into if you want to make sure that you are getting your money invested in the best way possible.
3 Ways to Earn Interest Income With Your Own Money Using Your Own Currency
If you are interested in making a little money with interest then I am going to show you how you can earn money with Crypto, otherwise known as Cryptocurrency. This is not just for the geeks, because it has many benefits for everyone.
First off, it is possible to make interest income using this type of money. And when it comes to earning income it is not a bad thing. So many people get into investing in the stock market and other things but fail to do so because they cannot find any decent places to invest their money.
It is not easy to find decent places to invest, and as I said before, it is very expensive to do so. For example if you wanted to buy a home in Denver you would have to pay close to double what you would pay in a traditional mortgage. It is very important that you do not take this investment approach and start spending all of your savings in the stock market when you have earned interest income with your Crypto investment.
Second, if you use your Crypto investment for paying your bills then you can also earn interest income. The best place to find out about paying your bills is a good place to begin with is a site called Quicken Loans. Quicken Loans offers you a variety of different types of payment plans, including home equity, credit card loans, and even payday loans.
The good thing about these kinds of plans is that if you have enough money you can use them as collateral to get the money you need and earn interest income with your Crypto money. You see, most banks are looking to offer you a higher interest rate when you put up collateral. It may take awhile to get a lower rate, but the rewards are worth it.
Now here is the great part about investing in Cryptos, they are much easier to buy from the real world market than they are to buy them from an online trader. Because of this reason they have been steadily rising in value. It will be very important to remember that they are not like stocks, so you should not use the same standard methods to buy and sell. Even if you are a seasoned trader, you should still be investing your money in your chosen market, or even both, and not simply holding on to the ones you think you know about.
When it comes to making money with this kind of Coin, I recommend you look at some of the big name sellers and then look around at a few other sites. If you think the price is too high, then move on. The good thing about investing in this way is that you can make profits while you learn more and get more educated. about the market, so you don’t lose money, you know what is working and what is not.
A good place to start, when you have decided what you want to buy, is through the Internet. It is the best place to go because of the many reputable sellers and you can quickly see which one is getting good reviews and is popular.
If you are interested in trading, then it is always a good idea to get a broker. A broker will help you set up an account and allow you to trade currencies, and this can help you start earning interest income with your Crypto money while learning the ropes.
I would also suggest that you use the Internet to get some knowledge about the real world market before you try to make money with your own investment. because the Internet is full of scams, so it is better to learn everything before investing, and trading.
So there you have it, three of the most effective ways for earning interest income with your own money by investing. You just have to decide which ones are right for you, and which one fits your lifestyle.
Cryptocurrency staking is a concept where you hold crypto in a wallet with a trusted exchange, like Coinbase or Binance, in order to secure transaction.
In return you earn staking rewards.
And… the staking rewards can be MASSIVE. As high as 25% per year!
Read on to find out how easy it is to get started.
Staking in cryptocurrency refers to taking part in a transaction validation. Crypto staking ensures whoever has reached the recommended minimum balance of a particular currency can validate to transactions and earn staking rewards.
Through staking, buyers purchase cryptocurrency to lock it up. This is also referred to as staking. In most cases, you don’t necessarily have to vote to have transactions approved since at times it happens automatically. Rules pertaining to staking vary from one network to another. Some aspects of staking involve the following.
Some cryptocurrency networks reward users with stakes for approving valid transactions.
In cases where stakes vote to approve illegal transactions, they are likely to lose all or some of their stake.
Typically, staking is a perfect way of earning passive income. Cryptocurrency fanatics can make an impressive income which is easier than mining.
Proof of stake is a term in cryptocurrency which refers to grounds under which a cryptocurrency network attains distributed consensus. Some of the basis under which consensus is arrived is through Proof of stake (POS) cryptocurrency where the person who creates the network of the block is selected based on various parameters which include either random selection, age or wealth.
(PoS)?
Proof of stake (POS) is an acronym used In blockchain which focuses on the basis under which cryptocurrency networks arrive at a consensus.
What is Delegated Proof of Stake (DPoS)?
Delegated Proof of stake(DPoS) is a basis of consensus under which blockchain networks use certain algorithms to ascertain the rightful validator of each block. The parameter is used to determine the type of data that is supposed to be added on the chain.
The DPoS is designed in a way that it offers a perfect technology for a credible process to ensure transparency. The process uses transparent, protected and democratic processes in the selection process to protect the blockchain from being infiltrated by third parties.
Is Crypto Staking Profitable?
Just like mining or trading cryptocurrencies, staking is equally a profitable venture in the blockchain industry. The more you hold your coins, the more you earn rewards that convert to a steady income. You invest, freeze or withdraw your wallet and still earn from the network.
The reason as to why staking is safer compared to other mining techniques is that the wallet is not connected to the internet. Stakers have to access the wallet without necessarily using a network physically.
Proof of stake has been regarded as the safest compared to Proof of work. Many blockchain networks have fully embraced staking and continue to offer impressive earning opportunities for stakers. Are you planning to venture into cryptocurrency business, then staking is the safest and profitable venture that you can engage in and generate revenue.
Some would wonder whether staking in the blockchain is profitable or not. The fact is every business venture requires relevant experience to understand how to run. The same applies to cryptocurrency, armed with relevant experience and mastering the art of the game, chances of generating impressive income from the process are high. In this regard, reviewing the profitability of various coins is ideal to understand which coins you can capitalize on.
Finding out theprofitability rewardfor every coin makes it easier for you to stake from an informed point of view on the amount you are likely to make from every coin in the blockchain. To earn passive income, simply find out which particular coins have the highest rewards and theeasiest wayyou can stake.
Compared to other reward formats on blockchain networks, staking is more profitable since it involves less risk. You simply stake, buy and hold a few cryptocurrency coins to be included in the mining pool. In this case, the amount of profit you can make determines the amount of investment and the period involved.
Crypto staking rewards ensure you earn passive income through staking on various coins. This is the reason as to why you need to determine which coins you are likely to earn more if you stake on them. You can stake on dozens of coins available on the blockchain network.
How do Crypto Staking Rewards Work?
Staking in cryptocurrency enables you to receive a reward from the blockchain network. You can either receive a reward as a group or an individual. Through a pool, coin holders may opt to put their coins together, thereby increasing chances of validating a block. In the end, the revenues can be higher and shared among the stakers. In simpler terms, you earn rewards through validating transactions.
Stakers in cryptocurrency earn through buying and holding coins on the blockchain. Through holding coins, you are entitled to rewards from the blockchain network since the process is believed to strengthen the network. This is why the more you buy and hold coins on the network, the more you earn passive income.
Additionally, you are likely to earn more rewards in the form of tokens in case the held coins increase in value. Blockchain networks roll out these aspects to reward stakers for playing a role in strengthening the network. If you want to generate more, you can opt to let the account remain idle for a long period of time to earn more rewards.
Active stakers invest in operating as a group to earn more rewards and share within themselves. Stakers can opt to put together resources to invest hold and earn impressive income in the process.
Which Platforms Offer Cryptocurrency Staking?
A number of platforms offer cryptocurrency staking.
Depending on which one you choose, every coin has a set interest rate. Some coins are likely to yield an interest of 7%, others 50%. Typically, to generate more passive income, participating in transaction validation can earn you staking rewards.
Which Cryptos Can Be Staked?
The following are the top most common staking cryptocurrencies.
Decred (DCR)
Cosmos ( ATOM)
Icon (ICX)
Loom Network (LOOM)
Synthetix (SNX)
Tezos (XTZ)
Algorand ( ALGO)
What Is Cold Staking?
Cold staking is a process where a person delegates staking to a different wallet. The intention of this approach intends to keep the wallet safe for at least 24hrs. This helps a stakers to earn rewards for being offline. In some cases where internet connection is a problem, stakes run wallets on a rented server. This reduces the risk of coins being lost or systems being hacked.
Therefore cold staking refers to a process where stakers run empty wallets on VPs to get rewards hence the name cold staking. Some of the notable devices in operating wallets offline include mobile apps.
One of the key apps is Flits mobile app where stakers can keep up to 1,000 coins and can get up to 100 coins in return. The Flits mobile app has up to 80 mobile coins listed on the mobile wallet. The app offers a perfect platform to cold stake coins and run masternodes. The platform is safer since the staker has the private key, and the developer can not access the wallet.
What Is a Staking Pool?
Staking pool in cryptocurrency is a process where multiple stakeholders combine their computation abilities to increase chances of being rewarded. Stakers in this case combine efforts in participating through a series of verifying and validating new blocks. This increases their chances of earning more rewards. This technique is regarded as the most effective in generating more revenue through staking.
These stakeholders operating in a pool combine their staking efforts to win more rewards and share amongst themselves. The approach is believed to be effective since it improves the chances of earning more passive income that’s shared proportionally among the group. Various softwares have been put in place on various Bitcoin networks to guarantee safety of individual earnings throughout the process.
How Are Staking Rewards Calculated?
Staking calculatorsare used to predict the amount a staker is likely to be rewarded. The amount depicted on the calculator is usually an estimate though the actual amount varies from one crypt currency blockchain network to another. The calculation is based on interest and the duration at which stakers have spent on a blockchain platform.
Will the Staking Reward Rate Always Be a Fixed Percentage?
Staking rewards are reset every year. This indicates that the percentage is fixed to apply for an entire year. Depending on the blockchain platform, percentage reward interest may vary from one network to another. In most cases, most networks set a fixed percentage of transactions and reward rate. Being that the earnings are likely to increase based on the duration stakers stay on the network, most platforms apply a fixed percentage in calculating the rewards.
Can I Trade or Send Funds While They Are Being Staked?
Typically, some blockchains networks impose certain restrictions on moving funds. Some of these restrictions include putting caps on the withdrawal period. The number of factors determines whether you qualify to move your funds regardless of the status of your account.
Transaction history, account and banking history determine whether you can be allowed to trade with the staked amount in your blockchain account. In certain circumstances, withdrawal requests may be delayed pending unlocking of the staked funds.
Every blockchain platform operates under various policies. Therefore you can discuss various aspects of funds withdrawals with the support to have a clear understanding of the existing terms of engagement.
Cryptocurrencies for Staking at Different Exchanges
The following currencies can be traded at different exchanges.
Litecoin (LTC)
Ethereum (ETH)
Bitcoin cash (BCH)
Ripple (XRP)
Libra (LIBRA)
Monero (XMR)
Binance coin (BNB)
Chain Link (LINK)
Who Created Proof of Stake?
Commonly referred to as PoS, Proof of stake was first introduced by Scott Nadal and Sunny King in 2012. The move was meant to ease the challenge of high energy consumption in Bitcoin mining. This eased the cost inquired in managing a Bitcoin network.
By then, the cost of maintaining a blockchain network stood at slightly above $ 150000, which was too costly compared to today. Ideally, Proof of stake (POS) has brought a sigh of relief in the blockchain industry where miners can validate and earn based on the coins withheld in the account. As a result, miners who hold more coins in their wallets have more power to mine more and get more passive income.
What Are the Advantages of Crypto Staking?
Compared to other mining alternatives in the Blockchain industry, crypto staking is regarded as less risky since stakers simply need to hold funds or operate wallets offline to earn more rewards. Stakers can opt to freeze their account to validate coins existing in the network.
You then earn through such a process. Compared to other ventures where individuals have to remain active on the network to earn, takers opting for crypt currency staking can earn rewards whether they are active on the network or not. Delegated Proof of stake (DPoS),stakers earn through stakeholders earn rewards through freezing their wallets. This applies through using other alternative networks to operate outside the platform.
Other advantages of staking include the following.
Stakers earn transaction fees for being part of DPoS.
Earning rewards in the form of tokens for staking
Reduce transaction fees to stock on exchanges
Basically, staking is the most risk-free Bitcoin venture. You can invest coins, sit back and wait to earn more rewards. The more the account remains inactive, the more you earn interest from the network. However, members can combine their efforts to participate in validation, win more rewards and earn more passive income. This reduces the chances of losing investment since combined effort increases the chances of generating more passive income. You simply need to stake, buy Bitcoins and hold.
Through this, you earn rewards that converts to passive income. This is one of the most reliable and profitable ventures in the Bitcoin industry.
Conclusion
As we have shown, there are many providers that offer great interest rates on your cryptocurrency. Well-known exchanges, like Coinbase and Binance, offer an opportunity for you to earn high passive income on your crypto.
If you are holding (or HODLing, I should say), you should definitely take this opportunity to earn an extra income.
Think about it this way: Let’s say you expect your Bitcoin or Ethereum to triple over the next year. Then you stake it today at 7% interest rate. Suddenly, in one year from today, you earn a passive income of 21% on you original investment(!)
Forex trading for beginners may seem like a hard task, but it doesn’t have to be.
Have you ever come across an ad or a testimonial by a forex trader describing how they make thousands of dollars a day through forex trading? You know, deep down, that’s what you want for yourself.
As a beginner, you most likely have a million questions about how to get started on forex. From a distance, it seems complicated and some sort of gambling.
Unlike the guesswork and dependence on luck associated with gambling, forex trading involves carefully analyzing charts, following strategies, and trading wisely.
Now that you are interested in forex trading, it’s important to remember that succeeding as a forex trader takes time.
In this article, we shed light on a clear path to follow in your quest to become a profitable forex trader.
Forex Trading Lessons for Beginners
The Forex Market
Foreign Exchange, popularly known as Forex or FX, is the changing of one currency to another. The Forex global marketplace allows for this exchange to occur for diverse reasons, like, trading, tourism, or commerce.
This international market conducts its business electronically over-the-counter as there is no central market place. Traders, investors, banks, and institutions congregate online intending to profit with every movement of the stock price.
Words Commonly Used in Forex Trading
Every industry has its jargon. In Forex trading, you will need to know and understand the meaning of words that are used by investors and traders to do business. Some of these words include:
Pip
Price Interest Point (PIP) refers to the smallest change of price in a currency pair, usually the last decimal place of a price quote.
If, for example, you have EUR/USD moving from 1.1701 to 1.1702, that 0.0001USD rise in value represents one pip.
Most currency pairs go for four decimal places except those with Japanese Yen (JPY), which goes for two decimal places. For example, for EUR/USD, it’s 0.0001, and for USD/JPY, it’s 0.01.
Leverage
Leverage means that you are trading using borrowed funds to amplify profits from a relatively small price change in the currency pair. The money is borrowed from the broker and set aside from your account.
For example, for a $100,000 position, your broker will set aside $1,000 from your account. Therefore, your Leverage, which is expressed as a ratio, will be 100:1.
Margin
Margin is the capital required to open a new position and maintain it. It’s considered collateral or assurance that you can hold the open position until it is closed and be able to cover the potential loss of trade.
It is expressed as a percentage (%) and varies depending on the forex broker and the currency pair you are working on.
Spread
There are two prices quoted in every currency pair: The bid price (selling price) and the asking price (buying price). The difference between these two prices is called Spread.
Spread is used by traders to determine the liquidity of the market. In currency pairs with high trades, the Spread is very small, sometimes even less than a pip, while in other currency pairs with fewer trades, the Spread is large.
For example, for this currency pair, EUR/USD= 1.1054/1.1056, the Spread is 0.0002.
Bullish/Bearish
They are used to describe the general outlook of the market. When the price is rising, you say the market is Bullish, and when the price is going down, the market is Bearish.
The continuous upward or downward trends help traders to tell the mood of the market instantly.
CFDs
A contract for differences (CFD) allows the traders and investors to profit from price movements without owning the asset. It’s an agreement between the investor and the CFD broker to pay the price difference between the asset’s current price and its final price at the close of trade.
In CFD trading, you make money when this difference of the underlying asset’s price is multiplied by the number of units in the contract.
For example, if you bought 50 gold CFDs for $500 and then sold at $600 after a few months, your profit should be calculated as ($600-$500)*50= $5,000.
Currencies are traded in pairs, where one currency is quoted against another currency. All pairs are categorized as either major, cross, or exotic.
Major pairs are all pairs that include the US dollar, while cross pairs are all pairs that do not include the US dollar. Exotic currency pairs include one major currency and one from the emerging market.
Examples of major pairs are EUR/USD, USD/JPY, USD/CAD, USD/CHF, AUD/USD, NZD/USD, and GBP/USD.
Cross-currency pairs that involve a major currency like the Euro, Yen, and Pound are called minor currencies. Examples of Euro cross pairs are EUR/CHF, EUR/GBP, EUR/CAD, EUR/AUD, EUR/NZD, EUR/SEK, and EUR/NOK.
The Yen cross pairs are EUR/JPY, GBP/JPY, CHF/JPY, NZD/JPY, CAD/JPY, and AUD/JPY, while the Pound cross pairs are GBP/CHF, GBP/CAD, GBP/NZD, and GBP/AUD.
Examples of exotic currency pairs are USD/BRL, USD/HKL, USD/SAR, USD/SGD, USD/ZAR, USD/THB, and USD/MXM.
Types of Forex Charts
A chart is a trading tool representing currency price movements over a set period. It helps a trader to technically analyze trading activity on a single trading period (whether it’s 30 minutes, 2 hours, one week, or even one month).
The y-axis of the chart represents the price range, while the x-axis represents the time range. The most recent price of the currency is plotted furthest to the right.
Charts are formed from a complete blend of all activity undertaken by millions of market participants (humans and algorithms).
There are three types of charts:
Line chart
Bar Chart
Candlestick Chart
Line Chart
A line chart is drawn by connecting one closing price with another closing point, showing the general price movement over time.
It is simple to follow but does not comprehensively furnish the trader with details about the previous price movement within a set period.
This is what a line chart looks like.
You can use this kind of graph to get the “bigger picture” of what has been happening on the currency pair.
Bar Chart
A bar chart shows the opening and closing prices and the highest and the lowest prices reached, thus the name OHLC (Open, High, Low, Close).
This kind of chart gives the trader enough information to help make a detailed analysis of the market depending on each period’s price range.
This is how a bar chart looks like.
The bars appear in different sizes, as the currency pair’s trading range differs.
Candlestick Chart
A candlestick chart is the prettier and graphical version of a bar chart. A candlestick bar represents the high-to-low price ranges on the currency pair.
The block, which forms the candlestick body, shows the opening and closing prices of the currency pair at that given period.
Here’s an example of a candlestick chart.
Candlesticks are suitable for beginners, as they are easy to use and interpret. You can quickly identify chart patterns, turning points, and reversals from trends.
Each chart is different and has its advantages and disadvantages. You can use whichever feels easy and appealing for you.
Best Trading Methods for beginners
As a beginner, you’ll need strategies that you can use to find a fair trade and manage it. There are hundreds of strategies out there, but there are those that are favorable for a beginner to start with on their trading journey.
After finding your chart preference and gathering enough information on the chart, it’s time to find a simple strategy to use for trading so that you can make wise trading decisions.
Let’s look at three easy forex trading strategies that are best for beginners.
Breakout Trading
A breakout occurs when the set price ranges, such as support and resistance levels, are broken, and the trend continues in the same direction. It happens suddenly, and the movement is rapid.
Here’s what I mean:
Breakouts indicate a volatile market, and a keen trader can make a lot of profit before the volatility boils down.
Trading a breakout means that you enter a trade when the movement is in your favor.
You love a thrill, don’t you? Trading a breakout and having it go along in your favor feels so good like you can literally smell the riches coming your way.
But, the other edge of this sword can tilt and make you bleed your account balance away in case of a false breakout.
These false breakouts make this method not an entirely dependable strategy. However, with a proper risk management plan and timeliness, trading a breakout can be fruitful.
Swing Trading
It is a trading method where a trade position is held on for several days or weeks with the expectation that the price swings.
Swing trading is suitable for you if you work under a tight schedule during the day but can spare a few hours to analyze markets and keep abreast with current financial trends.
This trading method requires patience and calmness because you might notice that the trend is going against you while you are still holding. At this point, you have to remain calm and trust that your analysis was on point.
Trend Trading
This trading method is the most preferred among traders and investors because of its reduced risk and its high returns in the long run.
Trend trading involves technical analysis of the price movements and finding a way to flow with the wave. Once a trend starts in one currency pair, it is highly likely that other pairs will follow suit.
Whether you are a long-term investor looking to hold a more extended position on the trend or a short-term trend trader looking for quick profits, trend trading will most likely work in your favor.
Take a look at the downward trend below:
Trading Platform for Beginners
The application of knowledge acquired is power! Yes?
To apply this knowledge effectively, you will require a good trading platform that will allow you to analyze charts and trade smoothly technically.
Let’s look at the top three forex brokers for beginners and how you can open an account with each of them.
eToro is a well-known social trading broker that allows for trading CFDs and cryptocurrencies. It is rated the best broker for cryptocurrency and the best broker for social trading for 2020.
It offers commission-free stock trading and innovative features like social trading, where you can learn and copy strategies from other traders.
Fill in your details and click on “Create Account.” You can also sign up using your Facebook or Google account.
After those three steps, you’ll be redirected into the trading platform where you can complete your profile, deposit fund, and begin trading.
For Australia and the USA, residents enjoy a minimum first-time deposit of $50, and those residing in Algeria, Lebanon, the Maldives, and Venezuela are allowed a first-time deposit of $5000.
After the first deposit, the minimum deposit for all is $50. The site allows deposits from Credit cards, Paypal, Neteller, and Skrill.
The broker is beginner-friendly, equipped with technical analysis tools, learning materials, and video tutorials, and provides a beginner with a demo account for practice. Cool, right?
Click on the “Open Account” button on the home page.
Proceed to fill in the information required for account creation
Confirm your Identity by following the instructions provided.
After completing these steps, your account is open. You can now fund your account and begin trading.
Before diving into the real market and getting to swim with the sharks, I would recommend that you take some time trading on the demo account provided by the broker. Practice makes perfect.
Axi has no minimum deposit limit, and so you can deposit any amount and start trading.
It allows a long list of options of how you can deposit into your Axi account, some of them being Skrill, Credit/Debit cards, Neteller, bank transfers, and many others.
Click on the “Start Trading” icon on the home page.
You will be redirected to a page where you can enter your details on the application form.
Once the account is approved, you’ll receive an email with your account login details.
IC Markets allows a minimum deposit of $200. The initial minimum deposit is high to cover their initial costs associated with creating an account and also give you a chance to make large trades for greater profits.
You can deposit into your account using your Credit or debit card, Skrill, Neteller, Paypal, UnionPay, and several other methods. You can choose one that is favorable for you, depending on where you are on the planet.
There is no deposit fee, so no money is deducted as you make a deposit.
Proper risk management will help you remain calm, tame your gambling instinct, and ensure that you remain sober enough to make wise trading decisions. The focus is to make more money while protecting what you have in your account.
Have you heard of ‘revenge’ trading? It is the mistake of trying to recover all that you have lost in just one trade.
Most traders lose money, not because they lack experience or knowledge, but because of poor risk management.
Forex is not gambling. Therefore you cannot just place trades hoping you win and be ready to stomach any losses incurred.
As a trader, you will face risks like:
False breakouts and reversals – the trend can suddenly reverse and push you to the losing end.
Liquidity risk – how liquid the market is can mean either a loss or a profit for you.
Market instability – you risk sudden changes in the currency interest rates, resulting in a loss on your trade.
Proper risk management involves the following:
Trade with money you can afford to lose.
This is a golden rule. As obvious as that sounds, risking money that you live on is a mistake you need to avoid at all costs.
Why?
Because, in the forex marketplace, it is possible to lose all you have. Also, losing the money you live on will add to you extra pressure and emotional instability, affecting your ability to make wise trading decisions.
Determine your risk tolerance
Forex trading is a risky affair, so start by determining how much loss you can handle. Consider your level of experience and the knowledge you have to determine your risk tolerance.
Advanced traders advise for not more than 5% of your account balance as a reasonable risk margin. However, for a beginner, 1% or 2% of your balance should do the trick.
The more you risk, the faster you are likely to drain your account. Be wise and limit yourself.
Use stop-loss and limit orders.
Stop-loss is placed in an open position to bail you out of the trade in case it goes against you. It’s advisable to set it such that you lose no more than 2% of your trading balance for any trade.
Limit orders are set for anticipated trades, where a trader instructs the broker to place a trade when the market reaches a certain level.
Stop-losses and limit orders leave the trader with much-needed peace of mind knowing that there’s some degree of protection in case the trade goes south.
Use Leverage wisely
Using Leverage magnifies the profits from each trade, but also losses come with a similar magnitude.
As a beginner, the temptation to leverage high is fueled by the desire to make significant profits in a single trade. But, if you are over-leveraged, a single mistake or an unexpected reversal on your trade could mean a significant loss.
Make a plan and stick to it.
Use a trading journal to make a plan and set goals of the number of trades to make per day despite the outcome.
A proper plan should include a target profit, risk tolerance levels, strategies to use, and evaluation criteria. Sticking to the plan means that you know when to stop and call it a day.
Improve Yourself
The forex trading space is expansive, and there are many things to be learned every day. There are enough resources online at your disposal that you can use to increase your knowledge.
Practice what you learn. Several trading platforms provide beginners with a practice account that they can use to familiarize with the markets and sharpen their skills.
Keep your risk amount consistent
As a beginner, the desire to make a lot of profit is always itching. The thought that you could make more profit by staking more money keeps lingering.
Another scenario that could trigger the urge to increase the amount of the money staked, is a previous trade loss. The intention is to recover the amount lost.
As profitable as this action would be, it is possible to lose all the money in your account balance in just one trade.
Final Thoughts
Forex trading, however risky, can be advantageous and very rewarding. Most things about forex may seem a little complex for a beginner, but with time you’ll begin to flow with it.
Have you found a broker that is favorable for you? Before making a decision on which trading broker to trade on, it is crucial to conduct research on it and rule out any possibility of losing your money to a con.
With the current economic conditions, you must keep abreast of the current affairs such as COVID-19 and its impact on the market’s leading currencies.
The forex marketplace may be vast, but it’s not impossible to navigate and become successful. You have to remember to learn at every step and always have a safety net to catch you if things turn out otherwise.
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