There is the difference between cryptocurrency exchanges (Poloniex,Coinbase, Bitfinex) and cryptocurrency brokers. The major difference between brokers and exchanges is that with brokers you are actually trading a CFD(Contract For Difference), most of the time. On the cryptocurrency exchanges, traders and investors can really buy a cryptocurrency. One of the advantages of trading cryptocurrencies through brokers is that the security of your funds is very high. Most crypto investors/traders still trade with exchanges directly, and we can ask the question “do we need a broker”?. Most exchanges were not built for the beginners, their customer support is not always available, crypto exchanges have also fallen victim to cyber attacks. All of this facts support the trading with reliable brokers. When choosing a broker, always check history and reviews to make sure their performance is consistent. Checking the reviews is something you should always do.
It can be difficult to choose the best cryptocurrency broker, here are a few key points that are very important:
- Regulation – Each country has its own regulatory body and traders should always open accounts with regulated firms. This is also important due to potential safety concerns regarding the deposit.
- Account Types – choose a Broker that offers customizability, competitive spreads and easy deposits/withdrawals. A good broker should always allow you to deposit funds and withdraw your earnings whenever you feel like it.
- Customer Service – choose a Broker with 24 hrs a day support. Give a call or message to the customer service center and check their availability and find out the representative’s ability to answer questions. Brokers should be there helping with accounts and technical support when you need them the most.
- Platform Type – look for a platform that’s easy to use with advanced analytical and technical tools. Some Brokers offer unique tools to make your trading that much simpler.
Cryptocurrency trading has been supported by a number of brokers already but in 2017 you can see the explosion in the number of cryptocurrency offerings. It is very hard to say which broker is the best because this depends on experience and habits of each investor/trader.
According to analysts, Plus500, AvaTrade, and EToro scored best in their review of the top brokers for trading coins. The cost of trading and the broker’s trust score were two most important categories. Some other advantages with these brokers include :
- 24/7 customer service
- A range of platform inc. Web Trader, Tablet & Mobile apps
- Offers demo account
- Many years in business
- Low spreads
- Used by thousands of traders
When we compare these brokers, Plus 500 has no minimum deposit. The minimum deposit to open an account with AvaTrade is $100.00, the minimum deposit to open an account with Etoro is $50. The spread usually ranges around $7 or 1.43% (Etoro takes a 1% fee for bitcoin trades). Plus500 doesn’t have a MetaTrader 4 option, the current maximum leverage for the opening position is 17:1and the margin to keep that position open is 3%. With AvaTrade you can use the same forex account to trade digital currencies. The company currently offers CFD trading in Bitcoin and Litecoin and the current maximum leverage for the opening position is 20:1. There are several restrictions for cryptocurrency traders who are trading with Etoro, they can only take a long position, no shorts are permitted. The CFD on offer is tied to BitStamp’s price feed but you can only enter and exit the market 4 times per day at fixed times. Etoro doesn’t allow margin trading. Plus500, AvaTrade, and EToro don’t accept US clients but deposits in USD are accepted.
One broker that has also very good reviews and accepts US clients is FXOpen. FXOpen follows standard AML and KYC laws and is registered and regulated in New Zealand. FxOpen offers a specialized MT4 Crypto Account. The minimum deposit is $10.00. The fee per side is 0.25% of the base currency. This broker offers easy deposits/withdrawals.
It is very hard to say which platform is the best because this depends on experience and habits of each investor/trader. Good trading platform dedicates a huge amount of attention to the professional preparation of beginner traders, while at the same time providing for the highest level needs of the most sophisticated players in the market. Collaboration with clients should be completely transparent, and customer support should always be available and ready to help.
Most crypto investors/traders still trade with exchanges directly while other trade with brokers that offer their platforms. The best cryptocurrency exchanges in 2017 include : Coinbase, Poloniex, Kraken. They are all very good, easy to use and very trusted. Fees are pretty low and everything goes through fast. Coinbase is really easy to use and because of this has lots of long-time customers. Coinbase has over 4,800,000 users that are signed up and has multiple online wallets. Poloniex is the most popular crypto exchange with good margin trading (up to 4x) available on largest altcoins. Poloniex is one of the best trading interfaces for mobile and desktop browsers. Kraken has cryptographic communications, works well for Europeans and North America and has low rates for trading, depositing and withdrawing.
Factors that make a good platform:
- Easy to use
- Absolutely transparent and fair practices, technology to protect all data and secure methods for funds depositing/withdrawing
- Good customers support available 24 hours
- Advanced analytical and technical tools
- Guaranteed stop-loss orders
- Free demo account
- Real-time charts
- Low spreads
- News and market analysis
Factors that make each platform unique include some features like automated trading, hidden orders (does not appear in the order book and thus doesn’t influence other market participants). Some platform allows you to organize your workspace according to your needs: compose your layout, choose between themes, set up notifications and data preferences. You can find on the market different copy trading platforms with different copy trading logics. Copy trading is the term for the practice in which traders copy the trades of other traders directly into their trading platform.
I would always choose a platform from a secure a friendly broker that offers many tools for its customers, along with a wide range of available options and underlying assets to choose from. When choosing a broker, always check history and reviews to make sure their performance is consistent. Checking the reviews is something you should always do. You can find lots of useful information and reviews on the internet. The Internet also makes it very easy for people to post their experiences and useful information. Forums are a very good place to find objective third-party reviews of all the platforms and any broker.
What you should know about Bitcoin
What is Bitcoin?
Bitcoin is an open, worldwide peer-to-peer currency issued in 2008.
Bitcoin is divided into digital units called blocks, which are linked together by cryptographic algorithms. The length of each block is ‘mined’ using a process called ‘mining’. Miners are rewarded with a small ‘satoshi’ or bitcoin for each block they solve. As more miners join the blockchain, the reward for solving each block increases until a reward of 21 million bitcoins is issued. This reward, initially capped at 50,000 bitcoin, has been halved several times in the last few years.
How does Bitcoin work?
Bitcoin works by applying the cryptographic “hash” to each block in the chain that will eventually be included in the main chain. To do so, miners essentially use special computers to solve a cryptographic puzzle called a “hash.” This solves the cryptographic hash and records the block in the blockchain.
To clarify, hash is a string of characters that each has to be transformed in the right order before they can be summed up to produce a sequence that ends with a certain number. In cryptography, hashing is the act of transposing the sequences that are stored in a hash. When a miner solves a hash, he is doing this by solving its up to 64 billion mathematically-delimited words that are extracted from the hash using cryptographic tricks that involve starting at an initial state where the stream is at least slightly skewed to result in a slightly skewed result.
To put it another way, it takes a miner to solve a hash once and you take him away for giving you wrong results once.
History of Bitcoin
Bitcoin’s foundation was laid in 2009, when a mysterious group of individuals known as “The Bitcoin Foundation” in reference to the organization that owned it, created the network. At that time, Mt. Gox, the Bitcoin exchange that housed the Bitcoin principals, was insolvent. As a result, the Bitcoin network split under an agreement between the world’s bitcoin users and the Bitcoin Foundation, which granted Bitcoin new legal status.In 2011, the government of Cyprus formally recognized Bitcoin, and the financial sector in the island began trading it.
In 2012, the Finnish Central Bank became the first central bank in the world to sell Bitcoin. In 2013, the Hungarian central bank and the Bank of England issued “safe haven” certificates to Bitcoin owners, which made it easier for investors to use it as they wished. It was later revealed that this was part of a scheme to flood with cryptocurrencies, and investors feared a flood of losses due to large buying volumes. Additionally, the European Central Bank and the Bank of England held futures contracts on the digital currency in May 2017, and further changes were made to support exchanges.
How to get Bitcoins?
You can obtain Bitcoin in many different ways, including directly through companies like Coinbase. The biggest option is to use the cryptocurrency to buy, sell, trade, or store it for yourself or another user.
Making your first purchase or transfer of bitcoin involves sending some or all of your currency — called “mines”— to a public address. This makes it more difficult to track and trace.
Things to know about Ethereum
What is Ethereum based on?
Ethereum is based on the Ethereum Virtual Machine (EVM) which has the following functions:
EVM has 5 main parts: Consensus – a set of multiple nodes (per consensus). Copay – for managing transaction data: confirmation, verification, and issuance (application of consensus). Consensus The ABOV (Application-Specific Adjusted Block Vector) for each block. Balances – balances in a public ledger to each user. DApps – tools, or applications, for participating in the consensus process
What are Smart Contracts?
What is Ethereum?
Ethereum is a platform for building and deploying blockchain applications that run on its network. The underlying system runs on a shared immutable consensus on a large mining network.
The Ethereum platform has been powering more than 75% of all Ethereum transactions at its peak, making it the largest and most used blockchain of its kind in the world.
A network state (network state denotes the state of the network as it stands in terms of transactions) is expressed by a series of digest messages (pointer messages), all attached to a sequence of (shorter) hexadecimal digits. Each digest message has to contain 1 to 3 nibbles of hexadecimal code, which are used for splitting the network state into units of bytes called data and adding the needed information.” – Wikipedia
Why is Ethereum great?
A lot of applications and projects use Ethereum, e.g. businesses in China, financial institutions, healthcare organizations, etc. Ethereum is also used for a lot of everyday projects and projects don’t believe the need for a central authority for controlling resources. What is your favorite project or project that uses Ethereum?
What you should know about TRON (TXR)
What is TRON?
TRON is a decentralized platform that allows to share digital content. It is easy to use and users’ money can be transferred to their accounts in an instant. Unlike other digital media, it is not only for consumption. Instead, it is meant to be used for a long time. That is why it is called as a project that lasts a long time. However, it can be bought and sold in a matter of seconds. So, what does that mean for TRON?
TRON can be described as a blockchain platform where developers can create decentralized applications. The most important thing to note is that TRON’s main goal is to create a distributed entertainment system that can cater to all kinds of media types. People can be paid in TRON for their content. TRON’s technology can also be applied to make DDoS protection and other kinds of protection services that are currently not possible on the Internet. The biggest threat that TRON faces right now is its low transaction capacity. However, that is not a serious problem for the platform as long as it keeps growing.
Although TRON can be described as a blockchain platform, it is actually more suitable for use as a decentralized operating system. TRON has a lot of applications in the real world, including gambling, digital identity management, and so on. There is even a virtual reality (VR) app that was developed in collaboration with Samsung. However, it is too early to say how successful this app will be. Fortunately, TRON is still a relatively small project. There are only around 400 developers working on the project right now. But this project can achieve much more.
How does TRON work?
By using TRON you can share digital content, such as movies, online games, or music. Instead of spending money on transaction fees, this means that you will not pay a cost for accessing content.
At the same time, unlike other cryptocurrencies, you do not need to buy up large amounts of tokens in order to be able to spend them. By this means, you can save a lot of time that would be otherwise spent on registration and verification.
What are the advantages of TRON?
By using TRON, you can gain access to one of the largest content creators in the world.
By sharing content with the world, you are helping to enrich not only your own portfolio, but the portfolio of other content creators as well.
Finally, the main advantage of TRON is that it is under a 100% blockchain-based ownership structure. That means it can never be taken over or taken over by another entity.
For a more detailed understanding of the TRON network, you can refer to this white paper.
Where can you buy TRON?
There are different ways to buy TRON. The two most popular ways are from a traditional broker and from a trading platform. Both of them allow you to trade TRX for BTC, ETH, etc.
Trading platforms allow you to deposit fiat currencies, or even private wallets, and then have your account made available to a large pool of other traders.
These types of platforms require a high level of technical knowledge and familiarity with the underlying code.
In the event that you are unfamiliar with the crypto markets, a broker might not be the best option.
Trading platforms are also subject to operational risks, including human error, technical difficulties, and hacks. That said, they can still prove to be very profitable.
What is the difference between TRON and Ethereum?
TRON(TRX)’s main innovation is its blockchain technology. It uses cryptocurrency instead of main data. However, it is rather easy to use cryptocurrency to keep track of one’s holdings. TRON is also very scalable, and supports a very large number of transactions per second.
Ethereum(ETH)’s main innovation is the concept of smart contracts. By using the smart contract system, Ethereum is able to achieve unprecedented scalability and efficiency.