Crypto Currencies 101: Basic information on various Cryptos and how you can maneuver in the markets.
Crypto Currencies 101: Basic information on various Cryptos and how you can maneuver in the markets.
Specializing in Crypto Currencies 101 is a way to make money, but not in the way you think. It’s not about trading, or earning interest, or even getting rich. It’s about making money by making other people rich. That is not the same thing at all, but it has its advantages. If you want to become rich by trading in Crypto Currencies, simply buy some of whatever happens to be most popular today, wait for it to drop in value, and then sell it at a profit when it rises again. Or do that with every new thing that looks like it might be big today. In fact, as long as you understand the nature of Crypto Currencies, I’d recommend this strategy to just about anyone who wants to get rich.
It is better than that because it doesn’t involve getting into trouble. Maybe Crypto Currencies will turn out to be big somewhere down the line; maybe they won’t be worth anything at all; maybe they will launch only after everyone’s had enough of them; maybe they will disappear before
Crypto currencies are a new technology that can be used to transfer wealth or store wealth. These are not the same thing as Bitcoin or Ethereum, and there is no one right way to use them. But they are safe, efficient and transparent. They will soon be used for many transactions that are currently done on the black market, where money is exchanged by giving people guns or drugs.
Cryptos have been called “private crypto currencies,” “digital gold,” “cryptographic tokens,” “smart contracts,” “precious metals” and “digital cash.” If you want to know more about them, please watch this video
If you want to get rich in the crypto markets, you need a good understanding of what is happening. I’ll try to give you a simple explanation of the basics before we get into the more advanced stuff.
Crypto currencies are digital money. They are not issued by any government or central bank and they don’t exist on any real computer anywhere in the world. They have their own blockchain, which is a ledger of who has how much and where it came from. They are never printed or minted, so that’s why we call them “crypto” rather than “fiat” (the Latin for “let it be decreed”).
The term “crypto” comes from a system of cryptography invented by somebody called Whitfield Diffie and Martin Hellman in 1976. This was one of those things that sounded like a great idea at the time but turned out to be rubbish. For one thing, they were trying to do it by means of something called public-key cryptography, which is faster than secret key cryptography but is also far less secure; there have been many serious problems with public-key systems over the last thirty years.
And then there was this other problem: the whole point of public-key systems was that they were supposed to be
The first thing you should do when you hear about a new crypto is to learn everything you can about it.
But since information on various coins is scattered all over the internet, and not easy to find in one place, I’ll try to give an overview here.
First of all, there are two kinds of crypto: “tokens” and “coins.” Tokens are designed for use in specific applications; your bitcoins are bitcoins, even though they are created by a company. Coins are like banknotes or coins used in everyday commerce; your dollars or euros or yen are what we call dollars or euros or yen.
Second, there are several different kinds of coin. If a coin has a fixed supply, it’s usually called a “fiat” (like dollars and euros). If it has no fixed supply but inflation is built into the code, it’s called “cryptocurrency.” If it has no inflation built into the code but can be created at will by whoever controls the network (usually by mining), it’s called an “altcoin.” There is also a fourth category, which includes tokens that have multiple functions–a car as well as money, say–and which often have unregulated supplies and hence no fixed value. These include things such as
Cryptocurrencies, or cryptocurrences as I call them, are of course real currencies. They are not just a way of moving wealth. For example, if you have a traditional currency (the US dollar, for example), and you want to move wealth from place A to place B and the amount is less than $1000, you can do it by using a large charge card and paying lots of fees.
Crypto Currencies such as Bitcoin are much faster, cheaper and more private. You don’t have to waste time with charge cards, banks or payment processors: instead you can just send money over the Internet.
The difference is that Bitcoin isn’t a conventional currency like the US dollar, Euros or British pounds; it’s more like digital gold. Gold doesn’t rust and it is obviously valuable. But although it’s heavy to hold in your hand, you can take some gold to a jeweler and they will melt it down into an ingot that they will weigh out on a scale. The act of weighing gold ingots doesn’t make any sense unless you know how much there was to start with. And so we know how much Bitcoins there were before there was Bitcoin: no one knows for sure, but some people have estimated that there are about 16
The standard way of describing a crypto currency is that it is an attempt to create an alternative currency that operates by finding its own value. The most commonly used resource for this is the idea of cryptography, i.e., encryption and verification of information using mathematics. The core of the crypto system is a “value-transfer network” that allows for the transfer of value of different types, for example money, or goods, or services (this can be done in one step). The basic element of the crypto system are cryptos – virtual coins that are used as a means of exchange within the network and are not exchangeable at any other place. A special cryptographic key guarantees that each transaction is unique and cannot be interfered with.
Binary Options are one of the hottest financial instruments in the world right now. They have been around for a long time, but are only recently gaining traction in the public consciousness.
At an extremely basic level, Binary options are designed to give their traders the opportunity to either call or let go of a particular option at a predetermined set of price points during what is known as the “bid” and “ask” periods. The bid period represents when you can purchase the option, and the ask period represents when you can sell it.
During these two periods, the price of the underlying asset (i.e., stock, currency, commodity) will fluctuate between two fixed values (the bid price and ask price), similar to how a stock’s share price can fluctuate between its opening and closing prices on a daily basis.
Traders make money by betting on whether a certain asset will be above or below its current bid/ask price during these two periods. If they predict correctly that the asset will be above or below the specified bid/ask price at some point during these two periods, they earn an amount equal to the difference between these two values (the “spread”).
In this case, if you were predicting that an asset would be valued at $100