How to Start Investing in Bitcoin with an Exchange or Broker?
It's no use studying the market, setting the amount according to your risk profile, and then handing over your entire investment in some scam. For this reason it is so important to correctly choose not only the asset, but also the exchange for trading cryptocurrencies. Bitcoin's decentralized feature allows for free trading between its users, known as p2p. In order to avoid risks in these transactions, exchanges emerged, which copied the model of traditional brokers, charging fees in exchange for this intermediation and settlement service. How to choose a broker? Exchanges, or crypto-asset brokers, such as the Bitcoin Market, are…
Bitcoin: From China to Elon Musk, The Factors that Fueled Crypto’s Volatility
Roller coaster already seems like a light term to describe Bitcoin moves. Over the course of these months, the world's most famous cryptoactive has had very strong moments, such as a drop of 31% on May followed by a rise of 33% just one month later. Compared to the historic high so far (US$ 63,300, reached on April 15), the drop to the week's low (on Wednesday, 19) was 45%. What explains this coming and going? First, it is important to remember that Bitcoin and cryptoactives in general are still at the beginning of their history. It is and will…
Advantages and Risks of Cryptocurrencies
The blockchain, where cryptocurrencies are registered, has security that is difficult to break. In addition to the blocks being all encrypted, to make a change to the network, all computers would need to approve, and the individual would have to rewrite all blocks after that, which should also be approved. But is it possible for someone to steal your digital coins? This happens quite often, but not on the blockchain. Scams are typically targeted at brokerages and individuals through phishing, which is a social engineering technique that tricks the victim into providing sensitive data, or even through information hijacking (data…
Cryptocurrencies can Strengthen Your Wallet
Jokes aside, cryptoactives are gaining more and more space in the financial market. Big names in the market have expressed their opinion on this class of assets, including already declaring investment in some cases: Paul Tudor Jones II, founding partner and manager of the billion-dollar Tudor Investment Corporation fund, said in an interview with CNBC that Bitcoin has great similarities to a technology company. For him, as well as investing in Apple, or even Google, there are very smart people working for Bitcoin to become a way of being a store of value, and this makes him increasingly optimistic about…
What are the Best Robots for Trading Cryptocurrencies?
Trading robots or bots are computer programs that perform sending automatic orders to a broker. Contrary to popular imagination, there is no intelligence behind it, but predetermined rules for making purchases and sales. However, robots have no feeling, nor do they get tired. In this way, they execute orders with greater precision. In other words, the program will respect previously informed limits and instructions. In fact, automated execution makes the trader's life much easier, being used even by large investment funds and professional managers. However, this does not necessarily mean that decision making is done by a trading robot. What…
Investing in Equity Income: Guide to Get Started without Fear!
More recently, cryptocurrencies have emerged as an option for those willing to invest in variable income in search of good returns. Investment in this asset category is nothing more than an investment in foreign exchange assets. The difference here is that, in general, cryptocurrencies are not issued by a country, but through private encryption technology. There is also no cash, as the coins are exclusively digital. In addition to Bitcoin (BTC) – the first cryptocurrency to gain notoriety – alternatives include Ethereum (ETH), Tether (USDT), Ripple (XRP), among others. The financial market is very dynamic. Every day, variable income assets…
How does Mining Work and its Issues
To mine, it is necessary to organize the transaction block, and then find the solution for the Proof of Work. Different miners compete for the same block, but only the first to find the solution to the equation will be able to register in the blockchain. This mathematical calculation will result in the hash of the block. This process is an algorithm that encodes a variable amount of information into a fixed sequence of characters. In the case of Bitcoin, the function used is SHA256, which generates a 64-character hash. If any small change is made to the information contained…
Dish of the Day: Uncertainty in Crypto Trading
World stocks continue to serve uncertainty on a platter. Today, the movement in most markets is downward, after some recovery at the end of last week. US futures fall 0.38% and Euro Stoxx has similar movement, at -0.36%. Inflation is the main course. The US inflation data measured by the CPI last week are still on the radar. The debate is whether the main central banks in the world are “late” in the movement to reduce stimuli, increasing the risk of a more persistent inflationary process ahead. This weighs on stocks, especially technology. Virus phantom haunts again. It negatively surprised…
Investing in Cryptos in Foreign Exchanges
It is not possible to say whether in the future an exchange will finally surpass security and decentralization. Likewise, governments, banks or technology giants themselves can create semi-centralized alternatives that satisfy most users. The greater the number of confirmations from miners, the more secure the transaction becomes. Therefore, depending on the amount in question, you should wait up to two hours, however, for most cases two confirmations are sufficient. Regardless of your financial objective, the strategy depends more on the ability to survive shocks and eventual losses, than hitting a single asset. It is tempting for a conservative investor to…
Are There Scams using Bitcoin and Cryptocurrencies?
Yes, in the same way that famous scams in the past were disguised as investments in live cattle, internet call credits, ostrich, and football players' passes. In other words, the sales pitch changes, but the blow is the same. The fact that the representative actually owns the deed of a farm, or cryptocurrency mining machinery, does not make the lawful activity. The honesty of the offering company, and the degree of reliability in the return depends on the legal certainty of the business. In the case of Bitcoin and cryptocurrencies, due to the lack of knowledge of the general public,…