How to trade cryptos

This is a discussion on How to trade cryptos within the Cryptocurrencies forums, part of the Markets category; Ok fredys, there are some basic concepts to know: 1) Know your market: The cryptoassets world is pretty funny. Is ...

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Old Dec 5, 2017, 1:25am   #1
 
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How to trade cryptos

Ok fredys, there are some basic concepts to know:

1) Know your market:

The cryptoassets world is pretty funny. Is very volatile but also is very predictible.

The crypto world follows the same rules of the stock markets but is much more "innocent", its traders are much more naive and predictable, so you can more easily estimate their supports and resistances.
Now, since January is in a strong bullish cycle, so there are two ways to calculate the target prices: through its total capitalization or through its price in relation to bitcoin. The dollars are not very useful to assess your success. You need a stronger reference: the BTC.
The first, then, is to know your market and there are three places to start investigating interesting assets:

a) https://coinmarketcap.com/

b) https://www.worldcoinindex.com/

c) https://www.cryptocompare.com/

I follow basic rules, if I investigate an asset related to the transfer of purchasing power, I use a maximum of 10-20% of the daily FOREX market to calculate the maximum capitalization and estimate the possible maximums.

If I research an asset related to Internet of Things (IoT) I think of a maximum of 15 trillion in three or four years.

The same applies for assets related to bets, social content, etc.

Soon you will see that cryptoassets are a not so big world, but related to specific things of consumption, especially those that require a controlled and reliable accounting, or the use of data for EVERYTHING.



2) The intrinsic value of your assets:

This aspect is fundamental, the cryptoassets, unlike other assets must have certain unique characteristics:

a) They must be safe. That is, the resistance to being modified, deformed or altered. Bitcoin has become so valuable because it has proven that neither miners, developers, nor large investors can modify its DNA. But bitcoin is just the tip of the iceberg, there are many other safe assets, with an unbreakable cryptographic architecture.

b) Scalability. It is the Achilles heel of Bitcoin and Ethereum. Scalability refers to its practical use in everyday situations, ie how easy you can transfer those assets at the lowest price, is a relationship between the speed and security with which your asset is transferred.

c) Fungibility: That is, the ability to replace an asset of the same nature with another of the same nature. For example, an ounce of gold can be exchanged for an ounce of gold without any problem, they are identical, indistinguishable. On the other hand, bitcoin is not. Suppose you acquire a bitcoin: it is possible to trace the origin of that bitcoin and know what it was used for -to buy drugs, to launder money, etc-; that is to say that there is a trace in the bitcoin.
Instead there are other assets that it is virtually impossible to know in what or how or where they have been used without implying that it is a triple entry accounting asset that can be confirmed in the blockchain.


Which brings us to the most important feature:

d) Triple Entry Accounting: The triple entry system allows you to verify that there is no duplicity, that you do not incur a double expense and makes the system extremely secure. VISA and Mastercard have good scalability and can be very safe, but they are still centralized and therefore easily subject to manipulation by bad actors. With cryptoassets this risk is diminished in an infinite way. The third counter is, of course, the ecosystem -that is, anyone who decides to have the account book on their computer and lends the power of their computer to verify that security (ie the miner or the stakeholder).

The greatest triumph of the cryptoassets is to keep the accounts in the public domain and make it inviolable. This has been achieved by:

1) Domain public software.
2) Universal mathematical rules.
3) Global distribution of the Proof of Work and Proof of Stake.

How to know these characteristics:
In githubhttps://github.com/ you can, if you know programming, check the code. But since we are not experts in programming, just read the specialized people.

Ie:

https://github.com/bitcoin/bitcoin

https://github.com/monero-project/monero

https://github.com/ethereum


e) The economic model of the asset:

Inflationary or deflationary.
The distribution of assets.
The generation of assets.
Its scarcity or abundance.




3) Where to exchange your assets:

Here there are many options and it depends on where you live. Most platforms have a decent trading software, but if necessary there is a fairly complete one called https://www.tradingview.com/ to do technical analysis.




I hope this thread is useful and can grow over the days.
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Old Dec 6, 2017, 5:16pm   #2
 
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Garvo started this thread About an exchange platform, there are many out there, the main ones:
bitfinex, coinbase, bitstamp (with deposits in dollars), bittrex, poloniex (for exchange of cryptoassets) or some smaller ones like cryptopia that I would compare it with the OTC of the stock market.

However I would like to talk about one that I especially love: LYKKE.
For an old-guard trader, Lykke is a mine, it allows you to do tranding without commission and handles FOREX and METALS. You can enter and exit without problems from the cryptos to the dollar or the Swiss franc or another FIAT colored btc currencies.

Lykke is a semi-decentralized platform based in Switzerland, which also allows you to be a shareholder (every 100 LKK equals one share), in this small incipient world, investing in a company that will soon be the Interactive Broker of the blockchain seems excellent to me.

The LKK are exchanged for BTC or ETH or USD or EUR or Cable instantly and without commission (something that has to be solved given that the LKK are built on the BTC ecosystem).

Something that I also like is that you can transfer directly to FIAT (although I use my broker in my country and then send cryptos to Lykke's platform).

The platform is friendly and works on smartphones and tablets, even there is no desktop platform.

If you want to take a look, and about the plans they have in relation to futures, margin, forwards and new assets here you can have a look:

https://coinmarketcap.com/currencies/lykke/


https://www.lykke.com
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Old Dec 8, 2017, 12:25pm   #3
 
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Garvo started this thread Let's be honest, there are those who do not believe in a particular asset but believe in the potential of the blockchain.
Certainly there are some very good projects out there, revolutionaries so to speak, but there are also others that have no logical foundation -something similar to boom dot.com-

There are those who simply do not want, can not or do not know what asset is worthwhile and still want to have some degree of exposure to blockchain technology.

Good. There is a platform that allows you to invest some amount - from 1 USD to thousands or hundreds of thousands of dollars - without your exposure being for a particular asset.

Iconomi https://www.iconomi.net/

The DAA (Digital Assets Arrays) are comprised of various combinations of digital assets. Each manager can create their own assortment of specific digital assets and offer them to the community of supporters.

"Because you can have as many assets as you want, they are a perfect vehicle to achieve your goals." DAA can be either diversified to maximize value stability, or fine tuned to aggressively pursue maximum gains. "

There are around 20 DAA in iconomi led by fund managers and their behavior is similar to that of an ETF or an index, in fact most follow the same mechanisms as the SP500 or other market indexes, obviously they are much more agile because of the speed with which the prices of the cryptos are varied but in general they follow the same principles.

They have excellent liquidity -inmediate- and can be bought and sold in the form of bitcoin, ethereum or iconomi, their performance can be followed in daily, weekly, monthly and annual percentage, as well as their value in dollars -all are expressed in the US. Dollars.

Each DAA shows its components and the percentage invested in each asset: there are those that are very inclined to bitcoin, even those that are more averaged, some are capped and others are corrected and weighed to the manager's criterion.

If you want to speculate with the blockchain technology but you do not know where or where, this is a good option to get bulky results.

In these months around 20-30% per month although obviously you have to understand that they can be negative returns if the cryptos go down.
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Old Dec 8, 2017, 3:36pm   #4
 
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I see Amazon are selling coin mining machines.

https://www.amazon.co.uk/s/ref=nb_sb...mining+machine

Anyone willing to have a go ?
Probably need your own windmill too.
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Old Dec 9, 2017, 12:40am   #5
 
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Originally Posted by Pat494 View Post
I see Amazon are selling coin mining machines.

https://www.amazon.co.uk/s/ref=nb_sb...mining+machine

Anyone willing to have a go ?
Probably need your own windmill too.

Proof of Work is the way in which security is given to the information contained in the blockchain. It consists in the use of mathematical calculation power - in bitcoin in specific - of the SHA-256 algorithm to reach a target that is less than or equal to the current one. This competition should give every 10 minutes the "correct anwer" and whoever wins, receives bitcoin compensation (12.5 btc). The way in which this difficulty is resolved in order to make each hash smallet to the previous one is called hashcash.

The smaller the target, the more difficult it is, and therefore the greater the power needed to solve the mathematical equation.

At the beginning the CPU was used to solve the hash, but as more people competed the greater the difficulty, then they began to use GPUs with greater calculation power. Eventually, specific SHA-256 CPUs were designed to obtain more hashing power. They are called ASIC.

The miners that sell on Amazon are ASIC machines designed to solve this hashcash. The difficulty is measured in Hash. They are indispensable to guarantee the safety of the blockchain and consume enormous amounts of energy -not as many as those consumed in Syria, Libya, Sudan, Yugoslavia, South America or Afghanistan to maintain the power of the dollar, but very much.

It should be mentioned that the ASICs serve to mine only some specific algorithms (SHA-256 or Litecoin's Scrypt) but there are cryptoassets that are resistant to specialized CPU's and can only be mined with common CPUs or graphics cards (Ethereum, Monero, Zcash between much others).

There are other ways to verify the security of the data: Proof of Share, DAG, Tangle, Hashgraph that require minimum amounts of energy, or in the case of IOTA (Tangle) none.

Of course, a real concern of the blockchain technology, specifically bitcoin, is to use renewable energies to handle those giant warehouses full of ASIC machines.
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Old Dec 12, 2017, 1:17am   #6
 
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Garvo started this thread Click the image to open in full size.


I can certainly assure you that BTC is not a ponzi scheme, I can also assure that it is not money in the sense in which our parents taught us, nor their parents to our parents, nor the parents of our parents. We are facing a new asset that is contrary to any economic theory of the State, which escapes banking, which is alien to the economic power of the wealthy.

The hyperbitcoinization will arrive, sooner or later, it will arrive like the 4 horses of the apocalypse. But it will take the gold and the silver first, then the whole FIAT. Eventually it will be so ubiquitous and global that there will be no power that can stop it.

They are afraid, because the Weimar nightmare is alive in the financial center of the world. They do not know it yet -their decadence has clouded them- but they will be assaulted by the horror of the digital revolution without being able to do anything.
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Old Dec 12, 2017, 5:12am   #7
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Originally Posted by Garvo View Post


I can certainly assure you that BTC is not a ponzi scheme,
I will grant you the benefit that at best your choice of language is simply rhetoric or at worst you don't understand the meaning of assurance. No one or authority has a clue how BTC will unfold let alone be providing any assurance.

It would be prudent to stick to facts.
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Old Dec 12, 2017, 8:49am   #8
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That's why there is a phase in bubbles called delusional phase .
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