Research: 75% of Bitcoin Exchanges Report ‘Suspicious’ Digital Currency Trading Volumes

bitcoin exchange volumes
New research adds even more evidence that Bitcoin exchanges are faking volumes on a massive scale. | Source: Shutterstock

A site called TheTie released a report today that estimates over 86% of all reported Bitcoin exchange volume is suspicious, while 75% of exchanges report extremely dubious volumes. The research uses a different formula than other reports have: it values each website’s visitors and compares that value to the reported figures.

Potential Fake Crypto Volumes High Across The Board

crypto exchange fake volume
Many Bitcoin exchanges – most notably Bithumb – report volumes well in excess of what should be expected given their web traffic. | Source: TheTie

For example, Bithumb, which has been the subject of previous investigations, was expected to have a monthly volume of roughly $1.2 billion based on an average visit value of $13,418. Instead, Bithumb reports over $28 billion. This means their reported volume is nearly 2,000% higher than what would be expected.

TheTie introduces the data saying:

“The weighted average trading volume per web visit for Binance, Coinbase Pro, Gemini, Poloniex, and Kraken was selected as a baseline volume per user to calculate expected volume. This amounted to $591 per web visit. BitMEX was not included because it is a futures exchange. This does not account for mobile app or API usage to trade – web traffic is an assumption for simplicity. Relative outlier detection is quite notable, so the outright number isn’t the main objective.”

TheTie hedges its statements by saying these are “potential” indications of fake volume.

Altcoin Exchange Bittrex Among the Most Reliable Reporters

bittrex
Bittrex resists the urge to inflate its crypto trading volumes to attract more customers....

Mt. Gox’s Mark Karpeles Found Guilty, Given 2.6-Year Suspended Sentence

Mark Karpeles, former CEO of the long-defunct bitcoin exchange Mt. Gox, has been found guilty and given a suspended sentence of two years and six months.

According to a report from The Wall Street Journal on Friday, the Tokyo District Court found Karpeles guilty of wrongfully making electronic records connecting to Mt. Gox’s books, but innocent on charges of embezzlement and breach of trust.

However, Karpeles will be suspended for four years, meaning he won’t do time in jail if staying on good records in the next four years.

The court’s verdict comes almost five years after Mt. Gox filed for liquidation in April 2014 after claiming to have been hacked for 850,000 bitcoin, some of which was later found.

According to the WSJ report, Karpeles’ lawyers wrote in their final...


Bitcoin Price Trapped in Key Make-or-Break Trading Range

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  • Bitcoin is trapped in a trading range defined by the 200-week simple moving average and the 200- week exponential moving average, currently at $3,404 and $4,106, respectively. Therefore, the outlook as per the weekly chart is neutral.
  • A weekly close (Sunday, UTC) above $4,106 would confirm a longer-term bearish-to-bullish trend change and could fuel a rally toward $5,000.
  • A weekly close (Sunday, UTC) below $3,404 could revive the sell-off from November highs above $6,500 and allow a drop to levels below $3,000.
  • The odds of a drop to the lower edge of the trading range would improve if BTC invalidates a bullish candlestick pattern created on Feb. 27 with a move below $3,658.

Bitcoin is trapped in a key trading range defined by the 200-week simple moving average and the 200- week exponential moving average, currently at $3,404 and $4,106, respectively

The cryptocurrency needs a break above the upper edge needed to confirm a longer-term bull reversal. Conversely, a move below the lower bound of the range could revive the bear market.

Prices fell below the 200-week EMA in the third week of November, bolstering the bearish view put forward by the high-volume breach of the crucial support at $6,000 on Nov. 14.

The ensuing sell-off, however, ran out of...


Why Every Portfolio On The Planet Should Be Holding Bitcoin

Editor’s Note: Art Jonak is an investment analyst with both a wide and deep synthesis approach to research data. His commentary threads on titans like Netflix, Amazon and Facebook are a minor legend for their insight, detail and clarity. He also navigates venture funding, and emerging sector data, in a narrative, often with striking visualization, that reveals trends in their formation long before they are visible. It should not need to be said for investment disclosure that Art is holding crypto assets himself. He is obviously making a case of why everyone should.

Here is Art’s 2019 message thread for investing in Bitcoin, in particular. In our eyes, it slams the case for why every single portfolio on the planet should be holding Bitcoin, and treated as a portfolio asset class.

Here's one case for why some should consider adding Bitcoin to their investment portfolio:

* Bitcoin is a non-correlated asset — This is the holy grail of any portfolio. Bitcoin’s current 180 day correlation to the S&P 500 is 0 and the correlation to the dollar index is near zero as well. Investing in non-correlated assets should reduce the risk and increase the returns of a portfolio according to modern portfolio theory.

* Bitcoin has an asymmetric return profile — There is much more upside than downside in owning the asset. The downside (loss of capital) is capped at the total amount of capital invested, yet the upside is ~100X+ (if Bitcoin only becomes gold equivalent).

The modern portfolio theory argument for investing in Bitcoin is quite strong. But how has theory played out in practice?

Bitcoin has been the best performing asset over the last 10 years. It has experienced a 1,300,000X+ increase in value from $0.003 to ~$4,000 today. It has beat the S&P 500 for the last 10 years, the last 5 years, and the last 2 years. As a fixed supply asset, I believe Bitcoin will continue to outperform traditional assets in the future as demand continues to increase too.

Although I believe in Bitcoin’s future outlook, most people should not put significant funds at risk in this investment opportunity. It is risky and speculative. They could lose 100% of the money that they invest. For that reason, each person needs to evaluate their current situation, their goals, and the amount of capital they would be willing to lose.

If the thesis plays out how many smart people anticipate though, an investment of 100 basis points or less would materially change the performance of your portfolio fund, which ultimately changes the quality of life you will live when you retire. Most institutions have permanent, long-term capital which allows them to stomach more volatility than most investors.

For example, an investment of 1% of assets at $4,000 BTC price would yield a 25% increase in your portfolio total assets if Bitcoin reached $100,000. If you decided to invest 0.1% of assets, the same price appreciation would increase total assets by 2.5%.
However, the exciting part is that many people believe Bitcoin will not only reach $100,000 one day, but rather be worth $1,000,000+. If that comes to fruition, a 0.1% investment today could lead to the same 25% increase in total assets for your portfolio. These types of trade-offs are the definition of an asymmetric return profile.

And still, most people's portfolios have 0% exposure to Bitcoin and crypto. Something to consider as we head into 2019.


The Good And The Bad Sides Of Initial Coin Offerings

Cryptocurrencies are the new craze in the world of finance. Anywhere you look, one financial enthusiast is trying to get a grip with the world of cryptocurrencies. They are digital currencies; they are not minted in a central bank or regulated by a sole administrator.

They, however, hold a whole lot of value and are used for transactions. Their secure and decentralized nature made them an almost indispensable asset for several industries.

This brings us to initial coin offerings (ICOs). They would not have been possible without the existence of cryptocurrencies. In the short time that they have been in existence,  ICOs became the latest trend in business circles. Simply said, they are are the best way for a startup business to generate investments.

How Do ICOs Work?

Startups offer investors a chance to purchase their tokens at considerably low prices in exchange for valuable cryptocurrencies such as Bitcoin, Ripple, and Ethereum. Due to the low prices of tokens, successful ICOs usually end up raking in millions in investment for the startups. Depending on how successful the startup businesses turn out to be in the future, investors can sell tokens for huge profits.

When Did ICOs Come Into Existence?

This might be very surprising to you, but ICOs are very young. The first one ever took place in 2013 and was held by Mastercoin. The next big ICO was done by Ethereum, which raised over two million dollars worth of investments within the first twelve hours of the process. Today, this cryptocurrency is one of the world's most valuable digital currency.

ICOs became the norms for startups soon after that. By the end of 2016, over a hundred million dollars were raised this way. Last year, that total figure grew to an unprecedented $1.25 billion.

There is no denying it, ICOs have been very vital to the economic and business development of the world as a whole. However, like with every new idea, there are many people very skeptical about this way of funding startups. To be honest, this is a very controversial topic.

Many financial analysts have raised the fact that it is highly unregulated as a major turnoff. Such concern is backed up by the fact that many ICOs were followed by some serious scandals. There have been huge scams and cases where investors have lost entire investments.

However, there are also several important advantages of this way of funding, which continue to attract an increasing number of worldwide investors. Some of the advantages include:

  • Middlemen are cut out

  • ICOs are available regardless of your location and nationality

  • Offer cheap avenues of investments

  • Allow you to contribute to the technological development of the globe.

Revolutionary Way to Get Funded: ICO Roundups


‘Bull Cross’ Points to Positive Bitcoin Market Shift

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  • Bitcoin’s three-day chart is showing a bullish crossover of the 5- and 10-day exponential moving averages for the first time since July. The crossover looks decisive as both EMAs are now trending north, validating the bearish-to-bullish trend change signaled by the high-volume triangle breakout seen on the 3-day chart.
  • The cryptocurrency could test December highs above $4,200 in the near term.
  • A minor pullback to $3,800 may be seen in the next 24 hours, as signs of bullish exhaustion have emerged on the hourly and 4-hour charts.
  • The bullish case would weaken if BTC finds acceptance below $3,614 (the low of the previous three-day candle), but that currently looks unlikely.

A much-followed bitcoin (BTC) price indicator has turned bullish for the first time in seven months, indicating a trend change in the market.

On the three-day chart, the 5-candle exponential moving average (EMA) has crossed the 10-candle EMA from below – the first decisive bullish crossover since July 17, 2018.

Back then, BTC was trading above $7,300 and the crossover was followed by a rally to highs above $8,400 on July 24.

Moving average crossovers help identify shifts in momentum. A bearish-to-bullish trend change is confirmed when a short-term moving average crosses through a long-term average from below.

Many would argue that EMA crossovers are lagging indicators. While that is true, crossovers between the short duration averages help traders distinguish between bullish and bearish scenarios. The long-term MA crossovers like the “golden cross” (bullish crossover of the...


Bitcoin (BTC) transaction average & median fees

Transaction fees make the bitcoin blockchain go round. The miners are compensated for their efforts, not only through inflationary block rewards but also through fees charged to users for adding their transaction to blocks. While fees on average make up about 4% of the total miner revenue per day, with the lion’s share coming from block rewards, sometimes economic shocks cause those fees to rise.

The average fee per transaction is approximately $1.63 with the median being $0.88 over the past five years. The fees are the prices charged for a transaction to get into the limited space of a 1 MB block that occurs every 10 minutes. This results in about 1,800 transactions (~556 average transaction size in bytes) that are able to fit into a block. If the standard 144 blocks are mined per day, we observe a ceiling of about 260,000 transactions per day. Thus there is always a backlog of unconfirmed transactions that reside in the mempool awaiting miners to select them for inclusion in the blockchain.

According to Blockchain.Info, there are about 3.4 million bytes awaiting inclusion in the mempool. Miners will usually include the transaction with the highest fees and work their way down as capacity dwindles to the lower fee transactions. Imagine you are commuting to work and...


How hackers can be stopped from Splitting Bitcoin Into 2 with SABRE Tech

If hackers felt like it, they could split bitcoin in two.

It wouldn’t even be that hard, according to research from 2017. Thanks to insecure technology underpinning the internet, someone with the right credentials could exploit the Border Gateway Protocol (BGP) by faking their identity and confusing the network into sending floods of data somewhere it shouldn’t. “The internet’s biggest security hole,” as it’s been called, has been used for everything from snooping on government emails to stealing cryptocurrency.

As far as splitting bitcoin, the attack is as bad as it sounds. If executed successfully, one chunk of the network would be completely sliced off from the other. No one could communicate and send transactions to people who are a part of the “other” network.

That’s where researchers from the prestigious Swiss university ETH Zurich hope to help. As described in a new white paper, they’ve invented a relay network called SABRE that they hope will one day be built on top of bitcoin.

With the same name as the curved blade common in the Napoleonic era, SABRE sounds like it would be used to slice bitcoin in half. Instead, it hopes to do the opposite. Rather, the planned network would (metaphorically) wield a saber against impending attackers, stopping them in their tracks.

Eth Zurich computer network researcher Maria Apostolaki told CoinDesk:

“SABRE is a small relay network whose nodes are strategically located such that they remain connected to each other and connected to as many regular nodes as possible, even in the presence of a AS-level adversary that hijacks traffic.”

This network would “render the partition ineffective,” she said.

When SABRE is used, the risk of a split goes down, the researchers claim. Without SABRE, it’s possible for an ISP to attack and partition bitcoin with only a “small” routing attack. But, according to the researchers’ simulations on a group of five nodes, there’s only a 3.1 percent chance probability of the attacker could hijack the network and partition it. The probability also decreases as the number of nodes increases.

To be presented at The Network and Distributed System Security Symposium this month, the proposed layer is the result of years of research. Apostolaki has been researching this specific issue since 2016 since “blockchain applications are very common nowadays making research on their routing characteristics very impactful.”

The attack

The attack strikes at the root of the internet.

Every time you click a webpage, you’re unknowingly using BGP, an internet protocol that helps get data from Point A to Point B. Say you want to get to CoinDesk.com. Your...


Coinbase Allows Crypto Traders to Claim Bitcoin SV

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Coinbase users can finally claim the Bitcoin SV tokens created by last Fall's Bitcoin Cash hard fork. | Source: Shutterstock

In a note to users today, Coinbase announced that it has finally made Bitcoin SV balances available for withdrawal. Users have been complaining for months about their Bitcoin SV, which peaked shortly after launch at over $200. It has since then been in steady decline, and the announcement by both Coinbase and Waves Platform today that BSV balances will be made available might stimulate a dumping frenzy on the coin.

Coinbase Allows Crypto Traders to Claim Bitcoin SV

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Bitcoin SV was the product of last year’s Bitcoin Cash hard fork. | Source: Shutterstock

The note reads, in part:

“The competing chain, known as Bitcoin SV, resulted in a forked coin now commonly referred to as BSV. When the hard fork occurred, the BSV blockchain used the amount of BCH associated with an address at the time of the fork to determine the amount of BSV that would be allocated to the parallel address on the BSV blockchain. As such, the amount of BSV now available in your Coinbase.com account is the same as the amount of BCH that was in your Coinbase (Coinbase.com and Coinbase...


Future of Cryptocurrency: A Complete Overview

Today, crypto-currencies have become a worldwide phenomenon known to most people.

Banks, governments and many companies are aware of its importance. Industries from E-commerce development companies, Fintech to logistics, and digital marketing are all trying to justify its importance their use of crypto-currencies, even if they are still a little geeky and misunderstood by most people, but banks, governments, and many businesses are aware of its importance as a global digital transformation layer.

What is cryptocurrency?

The term cryptocurrency refers to cryptology and currency of course. Here, the term crypto reminds us of the Greek word Kruptos which means hidden. Moreover, it is used in the prefix to designate hidden or little-known practices as in cryptozoology. Be careful however, cryptocurrency does not mean hidden currency! Transparency is what makes this system a rolling business, we will come back to it later. Here, we speak of crypto in the sense that the information relating to the holders of funds is not retained by any "governing entity". Nobody will remember your personal details.

What are cryptocurrencies for?

Cryptocurrencies are used as fiduciary money in general. They circulate for the payment of goods and services abroad according to the value which they are attributed. These values are of course predefined and are influenced by the popularity of cryptocurrency on the market. It should be known that cryptocurrencies that are losing popularity are also losing their value. The more cryptocurrency you have, the more you will be able to buy goods and services payable by this virtual currency. One YouTuber even experienced living with bitcoin cryptocurrency for 30 days and he kept his bet except in public transport.

So, Cryptocurrency allows you to pay your rent, food, clothes, and much more if you go to sellers or renters who use it as an official bargaining chip. If you travel to the US for example, you will be able to fully enjoy the bitcoins you've saved recently. Aside from that, cryptocurrencies are also put on sale. To get some, you will have to buy some.

However, it is possible to obtain it by other means, but so far it is the most adopted way in the world to have it. When you bought your cryptocurrency, you should always check the prices before spending them. Just to be vigilant, the best is to make sure you have real values before you do anything. Indeed, if you spend your virtual currencies when they lose in value you will be well disappointed. So, between buying and spending your cryptocurrency, you always have to be aware of trends.

There is no cryptocurrency without mining

For virtual currencies to circulate, they must be verified. A competent institution must be able to verify each transaction to attest to the reality of the value circulating. In a classic world, audits are done by banks and various financial institutions. If we want to withdraw money from our bank card for example, the bank will check our available balance before granting us the amount we ask to have. In the field of cryptocurrencies, verifications are done on the blockchain or block chains. In addition, the blockchain is a set of calculators that take note of all cryptocurrency transactions that have been made since the very beginning.

Whatever type of cryptocurrency we use, transactions will be recorded on the blockchain. In this network, each transaction forms a block and all transactions are visible to the general public. As the demand for computing power increases day by day, the blockchain must be supported by third-party computers. It can be you or me as anyone ready to lend the power of its processor to strengthen the system. Indeed, as all transactions are peer-to-peer exchanges must be followed closely by calculators.

This is where mining comes in. So people who are willing to mine to help the network register on a mining platform. Then, they will simply lend the computing power of their computer so that the cryptocurrency network can work. In mining, minors receive a percentage in cryptocurrency. Generally, the miners receive Ethereum but they can exchange them in bitcoin.

Why are cryptocurrencies so popular?

Cryptocurrencies began to invade the world of Internet users in 2013. Talking about bitcoin has become commonplace and winning Ethereum, ripple, Cardano, Bitcoin Cash and so on, has become normal. Of course, the trend is not yet global, but it is beginning to take over internationally. So, why are cryptocurrencies so fashionable? People who use cryptocurrency rely heavily on the value of each token (cryptocurrency unit) they use. But above all, cryptocurrencies are gaining value because they do not depend on any central bank in the world. Then, they greatly facilitate online payments because the exchanges are done with almost 0 fees.

Cryptocurrency is also fashionable because it cannot be counterfeited. Indeed, thanks to the blockchain and the different strategies of hashing, it is almost impossible to usurp the tokens. Moreover, as everything is virtual and not related to government organizations and institutions, there are no coins or notes to counterfeit.

Aside from this craze for values that do not depend on government, cryptocurrencies are also fashionable because they are very easy to transfer. Indeed, it only takes a few minutes to receive or issue tokens. Linked to this, costs are lower and ceilings are not defined. So, crypto coins are fashionable because they are easy to use, they can have great value and they are not conditioned by intermediaries. Everything is in the ease of manipulation of the values. It is a kind of international value that can be used more freely and in addition, is not taxable.

How to buy and trade cryptocurrencies?

To have cryptocurrency, nothing easier. Go to a sales site or broker to buy the cryptocurrency that interests you. Among the most well-known brokers are Coinbase, Coinhouse, etoroBinance, Kraken, and Livecoin. When you buy cryptocurrency, the broker will take a commission, verify your identity, and deliver the token according to its price.

Cryptocurrency trading To invest in cryptocurrency, many people opt for trading. Trading cryptocurrency is an activity that is gaining more and more ground because it allows you to earn money very quickly. However, the price of each token can vary in seconds so it is very important to stay alert. Vigilance is the order of the day, so you should pay attention to the curves disclosed by the trading sites when you enter this field.

There are several cryptocurrency trading sites on the net. you just have to register to be active and start the investment with a minimum of funds ($ 1 can do the trick). If you want to trade cryptocurrency, train yourself first. You must acquire the basics and know the weak points and strengths of each token. Do not run away on Bitcoin. While it is prosperous but is not always advisable unless the day of trading is conducive.  It would be best to see YouTube tutorials, get in touch with regulars or just take classes. In short, find out a minimum to avoid unpleasant surprises. If you are lucky enough to be perfect self-taught and have affinities with the business world however, getting started on the job might be interesting.

In any case, cryptocurrency trading is like traditional trading. So, if you are an informed trader, you can also get started without worrying about training. Only, do the necessary to know the value of each token. Be shielded vis-à-vis knowledge. Take the time to read introductory pages of the most valuable tokens and even those with a definite future in the market.    

Training to understand and make money with cryptocurrencies

It is possible to train in cryptocurrency to know them better. Several sites dedicated to the field offer training dedicated to the tokens and the best ways to invest them. It is mainly about trading but you would have the best bases by registering on these sites. Even if you do not know anything about cryptocurrencies, you can, of course, register on these sites.

The advantage of integrating online communities that form is the ability to make applications faster. If you are not too interested in these communities, you can always train directly with the people advised. By registering with Crypto Revolution, for example, you will be able to find different reasons to invest in the cryptocurrencies. You will actually learn how the system works.  You will even be able to find the interest of investing in altcoin or rather altcoins.

Indeed, it is not just bitcoins on the market in terms of payment cryptocurrency. Altcoins or "alternative bitcoins" represent a growing value and you have to find out. Learn the different facets of all these tokens by forming yourself. This is the best advice you can get if you plan to put your money in the cryptocurrency.

How crypto-currencies have become so important

Few people know this, but crypto-currencies have emerged as a by-product of another invention. Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and ever-largest cryptocurrency, has never intended to invent a currency. His goal was to invent something; many people have failed to create digital currency before. The most important part of Satoshi's invention was that he found a way to build a decentralized digital currency system. In the 1990s, there were many attempts to create digital money, but they all failed.

After seeing all centralized attempts fail, Satoshi tried to build a digital currency system without a central entity. Like a Peer-to-Peer network for file sharing. This decision gave birth to cryptocurrency. Satoshi found the missing coins to make digital cash. The reason is a bit technical and complex, but if you understand it, you'll know more about cryptocurrencies than most people.

So, let's try to make things as easy as possible. To make digital currency or cryptocurrency, you need a payment network with accounts, balances, and transactions. It's easy to understand. A major problem that every payment network has to solve is to avoid what is called the double expense: to prevent an entity from spending twice the same amount. Usually, this is done by a central server that keeps a balance register.

In a decentralized network, you do not have this server. So you need each network entity to do this work. Each peer in the network must have a list of all transactions to check if future transactions are valid or if they are attempting to split a transaction. But how can these entities maintain consensus on these recordings?

If network peers do not agree on a single balance, no matter how small, everything is compromised. They need an absolute consensus. Usually, you take, once again, a central authority to declare the correct status of the balances. But how to reach a consensus without a central authority? Nobody knew it until Satoshi came out of nowhere. In fact, nobody thought it was even possible. Satoshi proved it was. Its main innovation has been to reach a consensus without a central authority. Crypto-currencies are part of this solution - the component that has made the solution exciting, fascinating, and has helped it spread around the world.

Miners create money and confirm transactions

Let's look at the mechanism that governs crypto-currency databases. A cryptocurrency like Bitcoin consists of a network of peers. Each pair has a record of the complete history of all transactions and therefore the balance of each account. A transaction is a file that says "Bob gives X Bitcoin to Alice" and is signed by Bob's private key. This is basic public key cryptography, nothing special at all. After the signature, a transaction is broadcast on the network, sent from one peer to another. This is the basic p2p (peer-to-peer) technology. Nothing special, again. The transaction is known almost immediately by the entire network. But it is only after a certain time that it is confirmed.

Confirmation is a critical concept for crypto-currencies. One could say that crypto-currencies are essentially a question of confirmation. As long as a transaction is not confirmed, it is pending and may be counterfeit. When a transaction is confirmed, it is engraved in stone. It is no longer falsifiable, it can not be reversed, it is part of an immutable record of historical transactions: the so-called blockchain.

Only minors can confirm transactions. It's their job in a cryptocurrency network. They take the transactions, mark them as legitimate and broadcast them in the network. After a transaction is confirmed by a minor, each node must add it to its database. She is now part of the blockchain. For this work, minors are rewarded with a token of cryptocurrency, for example with Bitcoins. Since the activity of the minor is the most important part of the cryptocurrency system, we should dwell there for a moment and take a closer look.

What are cryptocurrency miners doing concretely?

In principle, everyone can be minor. Since a decentralized network does not have the power to delegate this task, a cryptocurrency needs a mechanism to prevent a dominant party from abusing it. Imagine that someone creates thousands of peers and spreads fake transactions. The system would disorganize immediately.

Thus, Satoshi has established the rule that miners need to invest some of the work of their computers to qualify for this task. In fact, they have to find a hash - a product of a cryptographic function - that connects the new block to its predecessor. This is called Proof-of-Work. For Bitcoin, it is based on the SHA 256 Hash algorithm.

You do not need to understand the details of SHA 256. It is only important that you know that it is the basis of a cryptological puzzle that miners compete to solve. After finding a solution, a minor can build a block and add it to the blockchain. As an incentive, he has the right to add a transaction called "coinbase" which gives him a specific number of Bitcoins. This is the only way to create valid Bitcoins. Bitcoins can only be created if minors solve a cryptographic puzzle. Since the difficulty of this puzzle increases the power level of the computer that the miner has to provide, there is only a specific amount of cryptocurrency token that can be created in a given amount of time. This is part of the consensus that no network peer can transgress.

Revolutionary properties of crypto-currencies

If you think about it, Bitcoin, as a decentralized network of peers that maintain a consensus on accounts and balances, is more of a currency than the numbers you see in your bank account. What are these numbers more than database entries - a database that can be edited by people you do not see and by rules you do not know? Basically, crypto-currencies are token entries in decentralized consensus databases.

They are called CRYPTO currencies because the consensus maintenance process is secured by strong cryptography. Crypto-currencies are built on cryptography. They are not guaranteed by people or by trust, but by mathematics. An asteroid is more likely to fall on your house than a bitcoin address is compromised. To describe the properties of crypto-currencies, we have to separate the transactional and monetary properties. Although most crypto-currencies share a set of common properties, they are not engraved in stone.

Transactional properties Irreversible: After confirmation, a transaction cannot be canceled. Per person, and nobody means nobody. Neither you, nor your bank, nor the President of the United States, nor Satoshi, nor your minor. Nobody. If you send money, you send it. Nobody can help you, if you sent your funds to a scammer or if a hacker stole them from your computer. There is no safety net.

Pseudo-Anonymous: Neither transactions nor accounts are linked to real-world identities. You receive Bitcoins on so-called addresses, which are strings of about thirty characters that seem random. Although it is generally possible to analyze the flow of transactions, it is not necessarily possible to relate the real identity of users to these addresses.

Fast and global: Transactions are spread almost instantly across the network and confirmed in minutes. Because they occur in a global network of computers, they are completely indifferent to your physical location. It does not matter if I send Bitcoin to my neighbor or someone on the other side of the world.

Secure: Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic of large numbers makes it impossible to break this pattern. A Bitcoin address is safer than Fort Knox.

Without permission: You do not need to ask anyone to use cryptocurrency. This is the only software that everyone can download for free. After installing it, you can receive and send Bitcoins or other crypto-currencies. Nobody can stop you. There is no guard.

Cryptocurrencies: the dawn of a new economy Due mainly to their revolutionary properties, crypto-currencies have become a success. Their inventor, Satoshi Nakamoto, did not venture to dream of it. While all other attempts to create a digital currency system did not attract a critical mass of users, Bitcoin had something that provoked enthusiasm and fascination. Sometimes it's more like religion than technology. Cryptocurrencies are digital gold. A healthy currency and free from political influence. Money that promises to preserve and increase its value over time. Cryptocurrencies are also a fast and convenient means of payment with a global reach, and they are sufficiently private and anonymous to serve as a means of payment for black markets and other illegal economic activity.

The 5 largest capitalization crypto-currencies

Bitcoin - The first cryptocurrency. The one and only, the first and most famous cryptocurrency. Bitcoin serves as a digital gold standard throughout the cryptocurrency industry. It is used as a means of global payment and is de facto the currency of cybercrime such as darknet markets or ransomware.

Ethereum - The reference cryptocurrency. The concept of young Vitalik Buterin rose to second place in the cryptocurrency hierarchy. Unlike Bitcoin, its blockchain not only validates a set of accounts and balances but also so-called states. This means that Ethereum can not only process transactions, but also complex contracts and programs. This flexibility makes Ethereum the perfect instrument for blockchain application. But that has a cost. After the hack of the DAO - a smart Ethereum-based contract - the developers decided to make a solid fork without consensus, which resulted in the emergence of Ethereum Classic. In addition to that, there are several Ethereum clones, and Ethereum itself is a host of several Tokens like DigixDAO and Augur. This makes Ethereum a family of crypto-currencies rather than a single currency.

Ripple - A cryptocurrency for finance. Perhaps the least popular - or most hated - project in the cryptocurrency community is Ripple. While Ripple has a native cryptocurrency - XRP - it's more of a network for dealing with IOUs than cryptocurrency itself. XRP, the currency, is not used to store and exchange value, but rather to protect the network against spam. Banks, however, seem to like Ripple. In any case, they are adopting the system at an increasing pace.

Litecoin - A lighter cryptocurrency. Litecoin was one of the first crypto-currencies after Bitcoin and was labeled as silver compared to digital gold bitcoin. Faster than Bitcoin, with a larger amount of token and a new mining algorithm, Litecoin was a true innovation, perfectly suited to be the smallest brother of bitcoin. "It has facilitated the emergence of several other crypto-currencies that have used its code base but made it even lighter." Examples are Dogecoin or Feathercoin. While Litecoin failed to find a real use case and lost its second place after Bitcoin, it is still actively developed and exchanged and is stored as a backup in case Bitcoin fails.

Monero - An anonymous cryptocurrency. Monero is the most important example of the cryptonite algorithm. This algorithm was invented to add the missing privacy features to Bitcoin. If you use Bitcoin, every transaction is documented in the blockchain and the transaction trace can be tracked. With the introduction of a concept called ring signature, the cryptonite algorithm has been able to break out of this path.In addition to these, there are hundreds of crypto-currencies of several families. Most of them are nothing more than attempts to reach investors and make quick money, but many promise playgrounds to test innovations in cryptocurrency technology.

What is the future of cryptocurrency? The cryptocurrency market is fast and wild. Almost every day, new crypto-currencies appear, old ones die, first-time adopters get richer and investors lose money. Every cryptocurrency comes with a promise, most of the time a great story to change the world.

Few survive the first few months, and most are pushed and abandoned immediately by speculators and live like zombie coins until the last of the holders loses hope of seeing a return on his investment. The markets are dirty. But that does not change the fact that crypto-currencies are here to stay - and here to change the world. It's already happening. People around the world are buying Bitcoin to protect themselves against the devaluation of their national currency. Especially in Asia, a live market for Bitcoin remittances has emerged, and Bitcoins using darknets of cybercrime are flourishing.

More and more companies are discovering the power of smart contracts or tokens on Ethereum, the first real application of blockchain technologies. The revolution is already underway. Institutional investors are starting to buy cryptocurrencies. Banks and governments are realizing that this invention has the potential to make them lose control. Crypto-currencies change the world. Step by step. You can both sit beside and watch - or you can be part of the story being worked on.

How to effectively anticipate the price of bitcoin? 

Let's discuss some effective ways to predict the price of bitcoin for day trading. There are basically two methods for forecasting bitcoin prices using.

  • Fundamental analysis - a method of valuing a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors.
  • Technical analysis - a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.

In conclusion

Cryptocurrency is a very broad subject, but more or less easy to understand. Cryptocurrency is being used little by little in today's society.  If major financial institutions fear the rise of these virtual values, we must place some confidence in the practice. In addition, cryptocurrencies can be converted into currency according to their nature. So, they are another way to make sure investments.  Only, there is no point in rushing. It is necessary to take the time to get information and training because the area can be quite delicate as the value of the tokens varies from minute to minute.