13 questions about crypto-currencies

1. What is cryptocurrency and what is their main difference from conventional currencies?

Cryptocurrency is a kind of virtual money that is created directly on a computer network. A unit of cryptocurrency is a coin. It is protected from forgery, as it is encrypted cryptographically. Cryptocurrency is issued in a computer network and is in no way connected either with the usual currency or with any state currency system. The cryptocurrency has no administrator, it is not backed up. The rate of cryptocurrency can not be regulated by a third person, it depends only on the balance of supply and demand in the market.

2. What is the difference between crypto and bitcoins?

There is no difference, except that cryptocurrency is the general name for the type of currencies, while bitcoin is the first to properly exist. Since bitcoin is one of the types of cryptocurrencies, today it is the most popular and expensive. Today on the market, you can count about 1,000 cryptocurrencies. But their total number is very difficult to accurately name, because new ones appear constantly, and some of the existing ones do not find popularity and actually cease to exist.

3. How do they arise? 

Cryptocurrency is generated during an action such as mining. The production of cryptocurrency can not be blocked, transactions can not be canceled, and all data is stored in a common database. This uses blocks that arise during the creation, for example, bitcoin. The whole process provides complete anonymity. Therefore, it is impossible to trace the transaction chain.

4. What is mining? 

Mining is a method of obtaining a virtual cryptocurrency.
Mining makes it possible to work on the infrastructure of the detachment. In a distributed network, there are no central servers that would regulate them, all the calculations for the operation of the network are made by the users themselves. There are several different methods of issuing cryptocurrencies.

The most popular today is called PoW - Proof of Work. Often, whole farm factories are being built for mining, most of which are in China today. Mining by the principle of PoW is beneficial only in countries with cheap electricity. Some new cryptocurrencies use other, much more energy-efficient methods of emission. For example, PoI (Proof of Importance) or PoS (Proof of Stake). Then the reward of the miner is determined not by its computing power, but by the activity of the trades or simply by the amount of currency on the balance sheet.

5. Is it legal?

In some countries bitcoin is legalized at the state level. The leaders of the market, in terms of creating a favorable environment for Fintech and Cryptocurrencies are Japan, Switzerland, Singapore. In Switzerland, cryptocurrency companies do not require any special permits or licenses, and the digital currencies themselves are treated as property, not debt. In Singapore, cryptocurrencies are considered assets, not financial instruments, while transactions are not regulated in virtual currencies.

6. Why did the crypto currency frighten all the states?

Because many states do not know how to work with the new phenomenon of the XXI century. Also, many governments and central banks do not want to lose power and monopoly over the turnover and issue of money.

7.How are the cryptocurrency used in the banking business?

To date, no banking system is operating systematically with cryptocurrency. There are several states that have expressed their readiness to create a national cryptocurrency: Japan, Singapore, Russia, Estonia, Switzerland, Sweden. Cryptocurrencies can be used in the banking business to make regular and p2p-payments. The digital currency will enable consumers to make instant payments in stores, while the costs of making such payments will be significantly lower than existing methods.

8.Is it secured in real exchange than they are provided?

It is  impossible to talk about securing cryptocurrency in the usual sense of the word. Unlike traditional money, the issue of which is controlled by state financial institutions and which are provided with gold and foreign exchange reserves, there is no single center for cryptocurrency. That is, the technology underlying the crypto-currency, block, is by definition a decentralized system. Probably, we can say that the crypto-currencies are provided with the power of a distributed computer network.

9. Is it possible to earn money on this?

Of course you can. We see that the rate of the most famous cryptocurrency is growing continuously. If in May of this year one bitcoin cost 2 thousand dollars, today its rate is 7 thousand dollars up. Other cryptocurrencies are cheaper in absolute terms, but they show even more confident growth. Given the fact that it is becoming technically more difficult to mine the cryptocurrency, and demand exceeds supply, it is possible that the value of cryptocurrency will, despite periodic falls, continue to increase.

10. Why does the course skip?

If the cost of fiat money is influenced by various external factors - political events, government actions and stock speculations, then the course does not affect the currency. For example, after the referendum in 2016 due to the withdrawal of the UK from the European Union, the pound sterling rate fell to the values ​​of 1985, and the election of US President Donald Trump had a negative impact on stock quotes around the world, but this did not affect the bitcoin rate - it continued to grow .

Nevertheless, several times we have already seen how the rate of bitcoin after a prolonged growth has significantly dropped. The rate jumps, because volumes are not too big and an investor with several million dollars can easily loosen the exchange glass.

11. What was the reason for the popularity of cryptocurrency?

It's role here played both ideological and commercial-speculative components. According to the original idea, bitcoin and other cryptocurrencies are anarchic means of payment, independent of states and central banks. In fact, this is an attempt to realize the dream of Friedrich von Hayek about the system of competing private currencies. These ideas have not yet been fully realized due to the extreme volatility of the cryptocurrency, which makes it difficult to use them as payment instruments. But high volatility attracted a lot of investors to cryptocurrency.

It's cumulative capitalization is now about 196 billion dollars. But the number of people entering this market is constantly growing, and with it the exchange rates are also growing.

12. Is there a future for cryptocurrency in Russia?

National states have not yet decided how to treat cryptocurrencies. On the one hand, this is an objective scientific and technical breakthrough, which is difficult to simply take and prohibit. On the other hand, according to its original idea, cryptocurrencies pose a challenge to national states and can weaken their influence. For governments this is a difficult situation, and Russia is not an exception. In 2017, tough measures were taken in the United States and China to put the cryptography under control, or even ban some of its aspects (the prohibition of ICO in China).On the other hand, Japan adopted a relatively liberal act on the legal status of the Cryptocurrency. It's hard to say which way Russia will go. The last statement of Russian President Vladimir Putin caused a positive response from market participants to the cryptocurrency.

13. Can I get a cryptocurrency?

If it is a question of purchase, then there are no difficulties with it. It is enough to register on the crypto-exchange (in Russia, often, this does not even require passport data), to place ordinary money there, to place an order for the purchase of a cryptocurrency at an acceptable price, wait until it turns out, and withdraw the cryptocurrency into your wallet. If it is a question of mining, its complexity depends on the specific currency that you want to mine. So far this is legal and profitable in terms of electricity consumption. But if you want to receive notable amounts of at least several tens of thousands of rubles, then you will face such complexities as overheating of the room with computers and increased fire danger from a large load on the electrical wiring. In such cases, you need to carefully calculate the power consumption, carefully assess the capabilities of your power grid and, perhaps, even rent a separate room.

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What You Need To Know About Cryptocurrency - Part 2

Part 2 – Learn About Cryptocurrency or Digital Currency in Detail

Internet / Cryptocurrency 

Must Read Part 1 About Cryptocurrency If You Missed It

How does mining cryptocurrency work?

How are new coins created?

We know that one of the main differences between regular currency and cryptocurrency is that (i.e. Bitcoin) has no overseeing body like the Federal Reserve to release new currency whenever the market demands or requires it. In the world of Bitcoin, new coins are released on a steady and predictable rate through a process called Mining. This rate started with 50 new bitcoins every hour and is halved until around the year 2140 when there will be no more bitcoins released. By then, all the 21 million bitcoins that ever will be created will be in circulation.

Understand Mining as verification

Mining cryptocurrency is a bit misleading because most of the work that is being done is to verify what transaction has taken place within the network and then add them to the ledger. Therefore, to understand mining better, it might be more simple to think of it as just verifications of transactions.

Who can mine?

From the beginning, when the competition for these cryptocurrencies was not very high, you could actually mine the coins with only your own hardware at home. You could take your home computer and just connect yourself to one of the mining pools where you would be able to get a share of the profit that was made from the collective of miners. While competition grew, it became harder and harder to mine and the mathematical equations that were solved in these processes became too high for personal computers to solve. Then the development of specialized hardware started to come to the market that was specialized in mining cryptocurrencies. Nowadays there are mostly companies or big players in the game of mining cryptocurrency and even though if you still see smaller players in the field the big players or collectives are definitely in the majority.

Should I start to mine?

While everyone joining the network to mine it, makes it a safer network. There are not many financial reasons to start mining. This is now an extremely competitive market and if you are not a big player with a lot of financial capital to make a big investment in gear required, you will probably not see even a return on your investment. So, there are good moral reasons to join or just as a hobby if you feel like you would like to be part of something.

What is a 51 Percent Attack?

If you have been dabbling in the world of cryptocurrency for any length of time, you may have heard about a 51 percent attack. If you are wondering what a 51 percent attack is, what powers the attacker would have, and what he would not be able to do, you will find the answers here.

To understand it, you first have to understand a little bit about how mining and transactions within a cryptocurrency based on cryptography and the blockchain technology work. Let’s take Bitcoin as an example. Bitcoin relies on a data structure called a blockchain, this is a type of digital logbook of all of the transactions that have occurred in the Bitcoin system and mining is a process that builds the blockchain by controlling and verifying all the transactions that are happening around the world. Individuals solve difficult mathematical equations, and the first person to solve the equation gets to add a block to the blockchain and receive a reward in bitcoins. A new block is added to the block chain when a majority of the mining network accepts it and adds it to their own copy of the blockchain and the miners in the network is given the power to accept the transactions based on their computing power. The more power you are using to verify a block, the more is your vote counted. Therefore a 51 percent attack is a theoretical situation that would develop if a single individual or entity gains 51% or more of the mining power. This person or entity could, therefore, decide what transactions they would verify and what to deny, effectively making the value of Bitcoin being a consensus based currency, invalid.

Power of the Attacker

The immediate result of a 51 percent attack would be panic and mayhem. However, the power of the attacker is limited.

First, that attacker would be able to manipulate the blockchain at will by preventing transactions and reversing transactions. This could result in “double spend attacks” where the attacker would spend the currency and then reverse the transaction later. The attacker would also be able to prevent miners from finding blocks by not accepting them and adding them to the blockchain. This would allow the attacker to claim 100 percent of the mining rewards.

While it seems like an attacker might have a lot of power, in reality, their power is severely limited. It is important to note, that the attacker cannot reverse transactions from a long time ago. The transactions have to be recent. The attacker is not able to create coins, and they also cannot steal coins from someone else’s wallet.

In the event of a 51 percent attack, the attacker would be amiss to undermine the system too much because by doing so would decrease the value of the crypto currency dramatically. Therefore someone who had invested such a huge investment to actually get 51 percent of the mining power would, from a financial perspective, be much more well of just mining the currency and reap the rewards.

Does Cryptocurrency have an intrinsic value?

 Since its conception and subsequent expanding market, there has been one big issue with cryptocurrencies. How can they be valued? Do they hold any intrinsic value whatsoever? Of course, that is not the only issue surrounding them but it is certainly one of the biggest questions asked and also one of the most important ones to create an opinion about if you are thinking about investing in these types of assets. A cryptocurrency only has value in its exchange – it has no inherent value – this is precisely the same as with a “conventional” currency. A dollar is only actually worth what someone is willing to give you in exchange for that dollar. If everywhere were to stop accepting the dollar it would become worthless. This is precisely how the financial market works.

Cryptocurrency, just like the dollar, is only worth what someone will exchange for it. There is no Federal Reserve to issue new digital currency, theoretically making it more stable. Bitcoin, for example, releases more of its cryptocurrency each year but the exact amount decreases proportionally year on year; the Federal reserve reissues in a reactionary fashion whenever it so chooses.  Thus, the more businesses and people that accept a form of a cryptocurrency – the more stable it will become.

In conclusion, you could say that this question has two answers. One view is that because cryptocurrencies, in general, are not pinned to any physical commodity or other institution giving it a value it can not have any intrinsic value. At the same time, the opposite can be argued that actually because it is not pinned to any person, organization, country or regulation that can control it, therefore, has an intrinsic value in its ability to not being able to be controlled.

How does the cryptocurrency QR code work?

Firstly, it is important to understand what a QR or Quick Response code is: it is a two-dimensional barcode, originally developed to track vehicles during manufacture. The rise of the smartphone cemented their presence in our everyday lives.  It is now possible to create a QR code which contains all the unique information of an amount of currency.

We can create a QR code to represent an amount of cryptocurrency which you own. This can then be printed and stored safely offline. This makes sure that no one can hack or access your online money until you chose to trade or spend it. This way you must keep the paper representation safe as you would do to actual currency – in your safe, in a safety deposit box at the bank. This paper containing the code can then be handed over in a transaction (just as you would with a $20 bill or a personal cheque).

It is possible for investors to make a custom code containing their public key. In order to purchase or trade, an account holder would need this code in any future transaction, be that for further currency trade or an online purchase. A trader could publish these codes on a profile or personal online presence, in a place where they may be able to exchange currency.

From the other side, a merchant can use these QR codes by embedding other information into the mess of black and white squares, information about a sale or special offer. This makes it incredibly easy for customers to access or take advantage of these offers. It could even be a way to encourage customers to make purchases using cryptocurrency rather than more conventional methods, an incentive even. This could encourage repeat business through easy of use but also encourage new custom, making the use of QR codes win/win in conjunction with cryptocurrency.

How do I protect my cryptocurrency?

As we can see, cryptocurrency is kind of new in the market, and it is developing time after time, for that reason have more than three millions of users right now. But you must be very careful because this currency is not linked to any bank or any government organization, so your money can be stolen and just disappear forever. And because it is an anonymous owner, you won’t ever know the identification of the people you are receiving or sending money to.

Tips to protect your cryptocurrency

There are so many ways to protect your digital money, but the most important ones are the following:

• 2 Step Verification is one very common way to protect your account from being accessed by other people. This is commonly used by most big corporations such as Google, Facebook and Twitter and those who want to keep the account secure use it.

• Try to have your money mostly offline, if you do so the hackers won’t have any chance to enter to your platform and take your money, connect this one just when you are doing transactions and as soon as you can just turn it off.

• You can have the law to protect you with layers of security. There are many platforms that offer even six layers of coding security, make sure you chose the best option for you and your currency.

• Look for the latest news about the development of the cryptocurrency. Don’t wait until the last day to know something because it can be so late, read blogs and articles about the news of this currency.

How will cryptocurrency affect the economy?

Compared to the existing financial markets and real world currencies, crypto currencies are mere fledglings. At this early stage in their existence, it is not a surprise that their effect on the global economy is limited.

It is possible that this could change, as is the nature of the market. It would not be unthinkable for a particular cryptocurrency could eventually play a part in the destabilization of a global currency.

What would need to happen for a cryptocurrency to have such power? Well, this is quite simple – people need to use it. Take Bitcoin, for example, the more people who buy, sell and trade in Bitcoins the better for its fate.

Cryptocurrency is only worth what someone will exchange for it. There is no Federal Reserve to issue new digital currency, theoretically making it more stable. New cryptocurrency is released, Bitcoin, for example, releases more each year but the exact amount decreases proportionally year on year; the Federal reserve reissues in a reactionary fashion whenever it so chooses.  Thus, the more business and people that accept a form of a cryptocurrency – the more stable it will become.

So perhaps cryptocurrency will not affect the economy directly at this moment in time but it has definite potential. So we will wait and see what the future holds.

Will CryptoCurrency become stable?

Cryptocurrency is referred to as the virtual currency that uses cryptography for safety. Due to the security features of Cryptocurrency, it is very difficult to forge. A unique and important feature of a Cryptocurrency is that it is protected from government interference or operation, hence not issued by any central power.

The unspecified character of Cryptocurrency transactions makes them compatible for a host of despicable activities such as tax evasion and money laundering. The first Cryptocurrency introduced was Bitcoin, that was launched in 2009. Cryptocurrencies make funds transfer easier between two individuals in transactions; these transfers are secured by using public and private keys. The fund transfers are done with negligible processing fees, enabling users to keep away from the unreasonable fees charged by the financial institutions and for bank wire transfers. A chief drawback of Cryptocurrencies is that they do not have a central storage area, a user’s Cryptocurrency balance can be removed by a computer break down if a backup copy of the holdings is not restored.

Ever since prices are dependent on supply and demand, the Cryptocurrency rates are fluctuating extensively.  They have also created a place for illegal transactions, such as drug trafficking. Cryptocurrencies are lawful in all countries except Iceland, and there are some restrictions in the other countries. The greatest danger to Cryptocurrencies lies in the capacity of hackers to break the system of cryptography and get into the security systems, basically rolling down the value of the currency.

There are various Cryptocurrencies such as Bitcoin, Ethereum, E-Dinar Coin, Ripple, Litecoin, Monero, Peercoin, Namecoin, Primecoin, Stablecoin, Mazacoin, etc. The Bitcoin procedure has enabled opposition between digital Cryptocurrencies and traditional fiat currencies. Despite remarkable Cryptocurrency approval rate, impressive deflationary price insecurity has dissatisfied declaration about the Cryptocurrency management. Price constancy can be reached by strongly evaluating the outstanding sum of money: the currency units in every wallet are adjusted instead of changing the value of a single unit. This proves that its only real uniqueness is about equality and effectiveness.

The future financial base changes have an impartial blow on the overall wealth, as it does not introduce any random alteration in the basic value of the wallet. Cryptocurrencies have been used so far by just a few thousands of people for a very restricted part of their assets. If billions of people start using it, Cryptocurrency value will surely reach beyond imagination. Price insecurity is going to be as remarkable in the future as it has been in the past years. But the view of making a better and more stable Cryptocurrencies is good news for anyone who adopts Cryptocurrencies, as well as the future and stability of our financial systems.

What is the Future for CryptoCurrency?

No one knows the future of cryptocurrencies. But the fundamental premise for the existence of cryptocurrencies is aptly eroded by one factor; the more popular they become, the more regulation and government scrutiny they are likely to attract, that bedevils the cryptocurrency, and it will be harder to surmount. And the fact that one’s digital fortune can be ransacked by a hacker or erased by a computer crash tells a lot about cryptocurrencies future.

Why the Future of Cryptocurrency Looks Very Unpromising

Except for the technologically adept, the relative complexity of cryptocurrencies alone compared to conventional currencies deter most people from using them. For the cryptocurrency to become more widely used, it has to generally gain widespread acceptance among consumers. Unless this happens, the future looks bleak. The number of merchants who have accepted cryptocurrencies is still very much in the minority albeit having increased.

Cryptocurrency should also preserve user anonymity from disreputable activities without being a conduit for money laundering and tax evasion. It would also need to be decentralized but with adequate consumer protection; be easy for consumers to understand, and be mathematically complex to avoid hacker attacks and fraud. A cryptocurrency, which tends to become part of the conventional financial system, must satisfy widely divergent criteria.

These are formidable criteria to satisfy, and even though the future fortunes of other small cryptocurrencies might not be determined by major and popular cryptocurrencies in dealing with the aforesaid challenges it currently faces; the possibility looks remote for the most popular cryptocurrency in few years as it could have traits that fall in between today’s cryptocurrencies and fiat currencies, which are heavily-regulated.

Is It, Therefore, Worth Investing In Cryptocurrency?

As a cryptocurrency merchant, you should recognize that you run the risk of losing most of your “investment” if not all of it, when investing in cryptocurrencies. It is best, therefore, that you treat your investment, in the same way, that you would treat any other highly speculative venture. Cryptocurrencies increase the risk of loss to an investor as they are susceptible to huge price swings. That is because a crypto currency has no intrinsic value.

It is upon a conservative investor to determine whether a cryptocurrency is just a speculative bubble, or just another investment with a limited supply and a dwindling usage. While opinion continues to be deeply divided about the merits of cryptocurrencies, it is imperative that you realize that their value can plunge at an all-time low with shattering speeds, in a snap. So also in the reverse case, prices can sky dive any moment, making huge gains. If you cannot stomach that kind of volatility, look elsewhere for investment that is best suited for you. In a nutshell, the future for cryptocurrency does not look exactly promising or scream success either unless needs to be developed to have an intrinsic value.

Should I store cryptocurrency offline?

So many people are asking this question, Can I store cryptocurrency offline? And even though this seems difficult to do, it is possible and the safest way to store your currency. As technology advances, the number of cyber criminals are increasing as well. And for this reason, it is very important to take action and make the best to protect your digital money. One of the reasonable ways to keep your currency safe is to have it in a location that is not accessible by the internet. The reason that this is such a safe way to store your money is that, the advancement in ways in which criminals will try to steal your money online, will most definitely increase faster, then you are able to update your own measures to protect them. Further, you will almost never be able to retrieve your lost money because of the sheer nature of the anonymity that exists around cryptocurrency.

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What You Should Know About CryptoCurrency – Part 1

What is CryptoCurrency?

CryptoCurrencies are Digital or Alternative currencies that don’t have any physical form. Cryptography is used for such currency to make secure transactions. In Such Transaction, information or transaction details are converted into such code that is uncrackable. So everything in such transaction is traced by a code. Usually, CryptoCurrency is not controlled by any country, so the value of such currency is determined by the market.

Why was CryptoCurrency Invented?

Cryptocurrency started with the invention of Bitcoin in 2009 by the unknown entity known as “Satoshi Nakamoto”. A start-up company producing a new form of money – digital currency was born. This decentralized currency is not controlled by governments or any organization and as such is open to all. It has never and will never be afforded copyright. Currently used by over hundreds of thousands of people per day, and there is no middle man or no credit company. Bitcoin is an accepted currency on such major sites as WordPress, Piratebay, Reddit, OK Cupid  and several others even as it's acceptance increases. Today there is a whole host of other digital currencies which work on the same basis but use different code eg. E-Dinar Coin, Ethereum, Dash, Litecoin and Primecoin, etc.

Cryptocurrencies are legal all over the world with the exception of Iceland; although there have been restrictions made to their usage in other countries such as China. The biggest downfall of a Cryptocurrency is the potential for fraud through inside party infiltration of security systems: however, whilst this is logistically possible, but the cost would be sky high and unbelievable skill level would require. “Miners”, or members of the public, rewarded for successful handling of cryptocurrency, use resource-intensive software to help secure the network allowing it to mathematically solve equations and directly impede attempted fraud.

A cryptocurrency only has value in its exchange – it has no inherent value – much the same as a ‘conventional’ currency. A dollar is only worth what someone is willing to give you for that dollar. If everyone stops accepting the dollar – it becomes worthless. Hence cryptocurrency is only worth what someone will exchange for it. There is no Federal Reserve to issue new digital currency, theoretically making it more stable. New cryptocurrency is released, Bitcoin or E-Dinar Coin, for example, releases more each year but the exact amount decreases proportionally year on year; the Federal reserve reissues in a reactionary fashion whenever it is required  Thus, the more business and people that accept a form of a cryptocurrency – the more stable it will become.

What makes CryptoCurrency Different

So what makes cryptocurrency so different from just using regular digital money? Well, there are a few key differences that we will cover in this article. 

Firstly, there’s no central bank anywhere that determines its value or controls the flow in which new money is being created. This makes the manipulation of the amount of money in existence not controlled by for the usual institutions we are used to. For example, the US dollar is controlled by the Federal Reserve, but Bitcoin, which is one of the most popular cryptocurrencies today, is controlled by an algorithm that no individual person, company or country can change.

The value of a fiat cryptocurrency is really just based on what other users are willing to give up for it. No countries are involved, so the welfare of a particular nation’s economy doesn’t affect currency value. Since value is based solely on supply and demand, it functions like the way commodities do in the stock market.

Another aspect that differentiates cryptocurrencies from regular currencies is the low transaction fees to transfer money all over the world. The fee is independent of distance, country borders etc.. This makes it much easier to transfer enormous sums of money globally or to make micro payments between people who live in different countries.

Why do some people love cryptocurrency where some people see it as pure evil?

There are multiple reasons to love it or hate it. For example, the transaction made using Cryptocurrency cannot be traced like Credit Card or Bank Account that is usually linked to a specific transaction. All the transactions made using cryptocurrency (e.g. Bitcoin) can be traced forever with the specific “alias” or key that performed it. This makes for a lot of discussions and there are arguments that Bitcoin is both untraceable and 100 percent traceable. Obviously, that has an immediate appeal in shadier sectors, and even though media often portrays cryptocurrencies as something only used by criminals, but the truth is that most people who use cryptocurrency are just regular people. Cryptocurrency also creates a lot of discussion because of the way it is making it possible to maintain some privacy in a world where someone is always looking over our shoulders. Be it a government, an Internet service provider, or data mongering corporations, cryptocurrencies such as Dash(earlier Darkcoin), E-Dinar Coin, Monero, Blackcoin, are constantly trying to increase the privacy of the individual.

How do you buy CryptoCurrency?

As of late, the world of cryptocurrency has emerged in full force contributing to a run to buy up hundreds of stocks in the newest digital currency market that springs up. However, even if you are familiar with this emerging market, there may be a few basic things you are unaware of which can have a detrimental effect on your trading power. Read on to learn more about how to buy cryptocurrency in a secure way.

Start by opening up an account

In digital currency, the term ‘wallet’ is used to represent your online currency account. This account will provide you the access to the crypto market from where you can buy all types of cryptocurrencies. Regardless of which wallet you choose, once you open the wallet you can then accept and disperse cryptocurrency according to your needs. Popular cryptocurrency wallets include Blockchain and Coinbase, Jaxx, and some cryptocurrencies currently have their personal wallets, like E-Dinar Coin and Monero.

Buying Cryptocurrency with and without using PayPal or Credit Card or Bank Account

Your wallet really isn’t any good until you can fill it with the digital currency. The next step is to fill your wallet up. To ensure that you aren’t dealing with any fake service provider, choose to use a cryptocurrency exchange that has a big name and excellent reputation attached to it. Some wallets like E-Dinar Coin, also link you directly to certified exchanges, where you can find their cryptocurrency and many other ones. Once you sign up for an account you will then be required to upload funds to the exchange. Generally, you can do this through PayPal, credit cards, or a bank transfer. All of these methods are considered safe if you choose the right exchange company. If you prefer not to go through financial institutions, there are other options for cryptocurrency to look to. For example, buy cryptocurrency for cash by trading with someone in real life. To find such people who trade in cryptocurrency for cash, a common place to look is at localbitcoins.com.

After you find an individual who will sell the coins to you, all you have to do is provide them with your digital wallet address and you should have the funds in your wallet within 10 minutes after the purchase. It’s that simple!

Why should I buy cryptocurrency?

There are so many reasons why you should buy cryptocurrency but most important reason is; it is easy to start and you can manage to have so many different accounts. And you can be safe from hackers, cyber criminals, and other bad influences because you don’t need to put your personal information anywhere and you won’t need a real name to buy cryptocurrency. Just with a nickname, you can buy all the coins and digital money you need or you want. Other reason you should buy this currency is because since the technology is changing and going forward, it is really important that we can go forward with it too. Millions of users already use it, and its usage is increasing every day, and as always, the first ones will get the more advantages, knowledge, and experience in this field.

It is not a safe investment, rather it should probably be seen as a new field of study with a potential to make a huge difference in the future. A lot of people believe that CryptoCurrency such as Bitcoin, E-Dinar Coin, Ethereum, Litecoin, Dash etc. can have an enormous impact on society. Not just by changing economics but also by changing bigger concepts such as law, politics, and freedom. 

What are the most popular CryptoCurrencies?

• Bitcoin: Bitcoin was started in 2009 by Satoshi Nakamoto, and this is the company who started this all. Bitcoin is the most popular Cryptocurrencies that is accepted widely, and it is also easy to get.

• Litecoin: Litecoin started in 2011 and this cryptocurrency can be mined. You can use this to transact goods and services.

• Monero: Do you care more about privacy and don’t want to be traced easily? Bitcoin is not for you. Monero usage ring signature technology that makes the transaction more secure and untraceable.

• Dash (Digital Cash): Dash Currency is another secure way to transact. It usage anonymization technology. Dash Cryptocurrency is more secure and fast. It was known as DarkCoin, but now they have changed the name to not make people assume its connection with the Dark Web

• Ripple: Ripple is actually a RTGS (Real Time Gross Settlement System), a Currency Exchange and Remittance Network. It is a bank owned cryptocurrency, meaning it's not fully decentralized, and it's also used by many banks to reduce costs. It’s not very secure if you don’t want to get traced.

• Dogecoin: This cryptocurrency is widely used to give charity or collect the donation. It was initially made as “Joke Currency”, but now has gained much popularity. 

• MaidSafeCoin: You can exchange Safecoin for providing resources, like your Storage Space, CPU, Bandwidth etc.. The Process of getting Safecoin and providing resources is called Farming.

• Ethereum: Etherreum is another popular Cryptocurrency that you can trust, but it has recently seen many ups and downs.

• E-Dinar Coin: E-Dinar Coin is another popular Cryptocurrency that started in 2016 but very popular, even thogh some that doesn't understand it think it's scam, which is not. You can trust it, but it has recently seen many ups and downs and it's currently going through downs while some people see it's down cost as an advantage for them to get loads of it with little cost.

Can I transfer cryptocurrency to a bank account or exchange for cash?

Yes, you can absolutely transfer cryptocurrency to your bank account or exchange for cash. There are many fast and safe options out there that are very good at managing both cryptocurrency and fiat currency such as USD or Yuan. They have the security of a bank, and the flexibility of a cryptocurrency exchange, so it is very easy to transfer money to your bank account.

Issues:

KYC or Know Your Customer laws and Loss of Security

In many countries, however, there are restrictions on managing other people’s money and often “know your customer” laws are in place to try to manage money laundering and other criminal activity. Therefore, you have to take into account that the benefits of anonymity that many cryptocurrencies provide are often forfeited by transferring money directly from your cryptocurrency account to your bank account.

Tax

By giving up your anonymity and disclosing your assets you might be subject to tax laws. This is, of course, different depending on what bank you use or from what country your citizenship originates but generally, it is highly recommended to be very careful about disclosing your assets without consulting a tax attorney.

Safe choices (Buy and Sell Cryptocurrency or Digital Currency for Local Money or Cash)

Coinbase.com: Coinbase is one of the largest exchange with banking services in the US that you can use to buy and sell digital currency. You can connect sell to convert in local money

Kraken.com: Kraken is another option if you want to trade digital currency

Localbitcoins.com: You can also visit LocalBitcoin’s website to buy or sell digital bitcoins for cash.

Localtrade.pro: Localtrade.pro is a new exchange which also offers e-dinar coin cloud mining and also cryptocurrencies exchanges and trades.

Kingdomexchanger.net: KingdomExchanger.net is a new Indonesian exchange that strongly believes in e-dinar coin, trading of several cryptocurrencies already occurs there.
Yobit.com: You can also visit Yobit.com’s website to buy or sell digital bitcoins for cash.

Should my company accept cryptocurrency?

Cryptocurrency is a modern payment method that has been adopted by an increasing number of companies. However, even if this number is increasing substantially, the truth is that it is rather small in comparison with the total amount of companies from the entire world. A lot of companies are still asking themselves if they should accept cryptocurrency and if you have a company and you are wondering whether to adopt cryptocurrency as a payment method, you should know that this is a complex decision that should be carefully analyzed.

Since cryptocurrency has many benefits, it seems fair to begin with all the pros. This way you will be able to learn more about this, and therefore you can take the best decision for your company. Here is the list of the most important pros that should be taken into account:

Pros or Advantages of CryptoCurrency

No Fraud

Cryptocurrency is a safer method of payment, and therefore people won’t have to worry about losing any money, or even worse, they won’t have to fear about identity theft; as a company, any payment that is made is irreversible, and therefore you do not have to worry about charge backs that you can often see from companies like PayPal, Visa or MasterCard.

Early adopters approval

It seems that cryptocurrency represents the future, and even if there is a long way until it will reach its true potential, it is on the right track; Being an early adopter as a company gives you access to customers who are also early adopters.

Global reach

You will be able to have clients from different countries, and therefore you will increase your profit. Additionally, it seems that people prefer this method because this way they do not lose money while exchanging currencies.

Low transaction fees

The fee to transfer money both between business to business as well as to and from customers are substantially cheaper than all other online payment methods.

Cons or Disadvantages of Cryptocurrency

As you know, in every situation there are always pros and cons, and therefore you should take a decision only after you have heard both the good and the bad. These are the Disadvantages or the Cons of Cryptocurrency:

Little investment to manage

Knowledge is required to implement and manage another payment system. It is very easy to start with, but it will require time to manage just like any other payment method. So you may need to hire an expert at the start, and then you can learn gradually. Or you can learn it and then start to get rid of this disadvantage.

Volatile

It is currently extremely volatile, and even though there are ways to avoid getting impacted by volatility it requires some extra management and time to learn.

Should I invest in Cryptocurrency?

Cryptocurrencies are very useful in the day to day life, as they bring a major alternative to the saturated market of real life currencies, so lots of people from all over the world embrace this new wave. However, these currencies can also be thought of as an investment, so people can get lots of money out of them in the long run if they do it properly.

Before investing in such currencies you need to figure out their value. https://www.coinmarketcap.com/ is the best source for anyone that wants to know registered cryptocurrencies and  the current price for the genuine and listed currencies or access the merchants that support cryptocurrency exchange.

When it comes to investing in crypto currencies, a good idea is to take it slow, as you don’t want to spend a lot of cash in the beginning. Instead, investigate the market prices for a few days and see how many chances of success you might have. Always remember that all cryptocurrencies don’t have an authority that controls their price, so you can easily encounter market crashes at all times. It’s important to think out of the box and invest in these currencies, of course, but you should always take the downsides into consideration before you start making any type of payment.

After that, you should consider setting up your wallet, as this is where you will store your virtual money. Check reviews and make sure that the wallet you are going to use is secure, as that is crucial. Once you set it up you can easily add funds to it without a problem. You can deposit and withdraw funds at any time from the most virtual wallets, and the payments are done very fast, which is more than refreshing for any user.

If you just want to invest in Bitcoins or Ethereum, then you can check the current price and change on https://www.coindesk.com/price/, and you can also view lots of relevant information regarding the current price and fluctuations. In addition, here you can also calculate the amount of money you spend of each Bitcoin amount, a feature that is very useful especially for those people that want to invest a lot of money in the long run.

In summary, investing in cryptocurrency is a bold move. But, one that can bring numerous profits and benefits in the long run is also risky. There are risks involved in all this, as we stated above, but in the end without risking you won’t be able to get the highest profit margin.

What are Smart Contracts?

As cryptocurrency and bitcoin has become more common and are being used more and more throughout the world, many companies are developing new technologies that can be used with currency networks like Bitcoin. How do Smart Contracts work?

So what exactly are Smart Contracts and how do they work? Think of them like a contract that is verified by computer instead of by a person or organization. A smart contract allows for information like the conditions and outcomes of legally binding agreements to be encoded into a computer program such as Bitcoin, Ethereum, and soon E-Dinar Coin. This allows for programs to get rid of the middleman that is there to ensure that those legal contracts and agreements are being fulfilled as the encoding will do that for the program. The way Smart Contracts work within Bitcoin is that they allow for the transfer of assets with an encoded signature. Many programs especially Bitcoin are finding that this helps to increase the speed and efficiency of their transactions and it also adds another layer of security and trust when it comes to the execution of the contract and agreements.

What makes them different from normal contracts?

Smart Contracts that are associated with Bitcoin are contracts that are associated with funds. What makes them different is that they are verified through the network and the program rather than by an authority. When transactions occur that use Smart Contracts the funds are paid as set forth in the agreement. For example, if you are a Bitcoin user and have a smart contract that says when transactions are made, funds will be paid to your account and then distributed as stated in the smart contract. If you have contracts that need to be paid, the money from your transaction will be distributed to that payment first and then to others as needed. Smart Contracts allow for users to set forth a contract and have it automatically fulfilled by a reliable system that can keep track of contracts. The difference is that Smart Contracts takes away the middle man, therefore also the human error.

What can Smart Contracts do?

Smart Contracts distribute and execute contracts through multiple networks, Bitcoin can be classified as one of these networks. Users of Bitcoin, Ethereum, and very soon E-Dinar Coin, can use a single smart contract to interact with other services like PayPal, Google, and E-Bay which allows for them to use it to efficiently, quickly, and safely make transactions with multiple programs. The reason Bitcoin and Smart Contracts are taking off is that it is allowing for cryptocurrency to be more efficient and it also provides an efficient legal system throughout the Bitcoin network.

Smart Contracts allow for Bitcoin users to develop contracts for the trading of major assets across the global trading exchange. This allows for contracts to be made quickly and efficiently and they are enforced through the encoding rather than by a third party. This allows for global trading and investments to be conducted quickly and safely.

For  More Details about Cryptocurrency, Proceed to Part-2

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Rules of Prudent Investing

Constructing an Investment Plan

• Recognize that the ability, willingness and need to take risk is different for everyone. Plans fail because investors take excessive risks. The risks unexpectedly show up and the plan is abandoned. When developing a plan, investors should consider their investment horizon, stability of income, ability to tolerate losses and the required rate of return.
• Don’t invest in any security without fully understanding the nature of all of the risks. If investors cannot explain the risks to their friends, they should not invest. It’s critical to understand the nature of the risks being taken.
• A well-designed investment plan has many elements. It should integrate portfolio management with tax planning, estate planning and risk management.
• Don’t treat the highly improbable as impossible, nor the highly likely as certain. Investors assume that if their horizon is long enough, there is little or no risk. The result is they take too much risk. Stocks are risky no matter the horizon.
• Only work with advisors who will provide a fiduciary standard of care.That is the only way to ensure that the advice provided is in the investors’ best interest. There is no reason not to insist on a fiduciary standard.

Maintaining an Investment Plan

• The more complex the investment, the faster investors should run. Complex products are designed to be sold, not bought. Investors can be sure the complexity is designed to favor the issuer, not the investor. Investment firms do not simply give away higher returns.
• The only thing worse than having to pay taxes is not having to pay them. The “too-many-eggs-in-one-basket” problem often results from holding a large amount of stock with a low cost basis. Fortunes have been lost because of the refusal to pay taxes.
• The safest port in a sea of uncertainty is diversification. Portfolios should include allocations to the asset classes of large-cap and small-cap stocks, value and growth stocks, real estate, international developed markets, emerging markets, commodities and the appropriate amount of bonds.
• Owning individual stocks and sector funds is more like speculating than investing. The market compensates investors for risks that cannot be diversified away, such as the risk of investing in stocks versus bonds. Investors should not expect compensation for diversifiable risk­, such as the unique risk related to owning one stock or sector fund. Prudent investors only accept risk for which they are compensated with higher expected returns.
• Take risk with equities. The role of bonds is to provide the anchor to the portfolio, reducing overall portfolio risk to the appropriate level.

Staying in the Course

• The consequences of decisions should dominate the probability of outcomes. Investors should ask themselves if they can live with the outcome, regardless of how small of a chance there is of the outcome occurring.
• The strategy to get rich is entirely different than the strategy to stay rich. One gets rich through inheritance or by taking risk. One stays rich by minimizing risk, diversifying and not spending too much.
• The four most dangerous investment words are “This time, it’s different.” Getting caught up in the mania of the “new thing” is why the surest way to create a small fortune after starting out with a large one.
• If it sounds too good to be true, it probably is. Investment decisions should be based on the evidence from peer-reviewed academic journals.
• Keep a diary of market predictions. After a while, investors will likely conclude that they should not act on their “insights.”
• Good advice does not have to be expensive, but bad advice always costs dearly no matter how little is paid for it. Smart people do not simply choose services based on cost (the cheapest doctor or CPA). Costs matter; but it is the value added relative to the cost of the advice that ultimately matters.

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