This broker is mostly recognized for its involvement in binary options trades. However, it has since been through some diversification, especially in the past few years. It is also involved in forex, CFDs, Cryptocurrencies, and ETFs.
There are a few scams out there, but IQ Option is one of the legit ones. IQ Option is not a scam.
Is IQ Option a Scam?
IQ Option is definitely not a scam broker. And here is why:
CYSEC Regulation: The broker has been licensed and regulated under CySEC since 2014 which makes it possible to extend its services to just about any Europe based economy.
Other Licenses: This broker is also registered with other well-known agencies such as the FCA (UK), Consob (Italy), BaFIN (Germany), and Regafi (France).
Repuation: IQ Option has a stellar reputation in the community
Withdrawals: There are no reports about withdrawal difficulties or similar problems
The main attraction for traders who choose to trade with IQ Option is arguably the accessibility and ideal trading conditions that it affords.
Aside from requiring very minimal deposits to operate their binary options accounts, they also offer attractive spreads for both CFD and forex products. All of this has contributed to a rapid rate of expansion in its user base – from just under a million in 2014 to over 14 million by 2016. So indeed, diversity in the online trading industry is good.
IQ Option Trading Platform
Unusually, however, when it comes to their trading platform, IQ Option have not opted for MT4 which has been a staple choice for most of its competitors. Instead, their platform has been developed totally in-house. It works surprisingly well, although it could use a little more detail in its charting and analysis options.
The rest of it, however, is absolutely sublime. The interface is a joy to use and can be downloaded as well as accessed on the web. Note that the downloaded version is very much the same as the web-based version, carrying the same benefits and faults.
The charts, although a bit lacking, are still far from being the worst. You can view up to 9 of them simultaneously and they are not at all daunting to look at.
If you happen to be new to online trading and need some assistance to find your way around it, the interface has quite a few tutorial videos you refer to which contain many different methods of analysis and helpful tips regarding the mechanics of the platform.
However, traders should also be aware that when it comes to cryptocurrency vertical, most of the ‘classic’ technical analysis methods will not be effective, since this type of assets have a unique way of evolving its value.
What Our Readers Asked
No, IQ Option is not a scam. In fact, IQ is one of the best all-round brokers.
Every form of trading is risky. If you make bad trades, you can lose money. However I have never heard of traders having problems with withdrawals.
IQ Option has the lowest minimum deposit in the industry. You only need to deposit $10 to get started.
IQ Options has been consistently keen on incorporating new classes of assets. Its portfolio contains the 4 major classes – forex, equities, commodities, and indices. There are also several currency pairs to trade here including some really exotic ones like SEK, TRY, and NOK.
Recently, IQ Option expanded into the cryptocurrency market and now offers CFD trading for up to 7 prominent cryptocurrencies including Bitcoin.
IQ Option Demo Account
The demo account offered by IQ Options is among the best you can find at any broker. There is no deposit required and its balance can be replenished up to $1000 with no time restraints.
It can also be operated simultaneously with a real account unlike with some brokers, where you can only use one or the other. The major benefit of this is that traders can experiment with new strategies and retrieve valuable information without risking their actual funds. It certainly has scored IQ Options plenty of popularity points over the years, particularly among novice traders. And this speaks volumes about its overall capabilities as a broker.
There is a vast array of regional telephone numbers by which you can contact IQ Options’ customer support staff. Even the CEO and CAO of the brokerage are reachable via email. The standard email address for IQ Options is email@example.com. Its headquarters are located at the Yiannis Nicolaides Business Center, Agiou Athanasiou Avenue 33, 4102, Agios Athanasios, Limassol, Cyprus.
IQ Option is a Legit Trading Platform
If your focus as a trader is on Forex and Cryptocurrency CFDs, IQ Options is likely to be your best bet.The company is legit and it is regulated by CYSEC.
While there are still mass technicalities that cannot all be covered in a single review, what we know for now is that it certainly has not deterred traders from signing up. Since its inception, IQ Options has seen some of the most exponential expansion rates of any broker. It is certainly deserving of its high reputation in the online trading community.
With the growth of the cryptocurrency industry , more and more events and conferences are being organized. There are many opportunities waiting for you. You have the chance to meet CEOs, venture capitalists, entrepreneurs and other important personalities in person. Don’t miss out the chance to build long lasting business relationships.
Malta Blockchain Summit
Event date: November 1-2, 2018
Place: Malta, InterContinental (St George’s Bay, St Julians)
Description: With over 300 sponsors, 100+ speakers and 5000+ delegated, Malta Blockchain Summit is one of the biggest of its kind in Europe. THe fields covered include: cryptocurrencies, blockchain for dev, fintech, regulation, affiliation and much more.
Prominent speakers: Christopher Obereder and Miko Matsumura (Evercoin Founder), just to name a few.
Event date: September 14, 2018
Place: NDK Sofia, Bulgaria
Description: NEXT BLOCK is one of the hottest blockchain related events in Bulgaria. With over 400 attendees, 25+ Top Speakers and an exclusive after party, it’s also one of the most important events in Eastern Europe. The event will be streamed online as well.
Event date: August 23, 2018
Place: Moscow, Berezy Park
Description: CryptoBBQ is the first outdoor-crypto conference. The CryptoEvent team organizes this fantastic and unique event in the Berezy Park, Moscow.
Get 15% discount for ANY type of tickets with the promo code howwetrade15.
Event date: 29th July 2018
Place: Arcapita, Manama, Bahrain
Description: The conference includes panels, fireside chats, keynotes and demos. Meet developers, bankers, blockchain operators and much more.
Everybody has the possibility to trade bitcoin on Plus500.
Plus500 is most of the most trusted brokers to offer bitcoin and other cryptocurrency trading.
Not only does Plus500 offer Bitcoin but they also have:
If you are interested in trading bitcoin on Plus500, then you have to make a minimum deposit of $100. You can start trading cryptocurrencies with a leverage.
One advantage of the cryptocurrency market is, that it is open all the time which means you can trade it 24/7, whenever you want excluding Sundays at 13:00-14:00 UTC.
What is Plus500
Plus500 is a broker that specializes in CFD trading. Plus500CY Ltd authorized & regulated by CySEC (#250/14). It is one of our top rated brokers. Unfortunately, however, its services are off limits to US traders.
You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.
Types of accounts – Trade Bitcoin on Plus500
With Plus500, you have a choice of two accounts, a live account and a demo account.
The former requires a minimum initial deposit of $100 to be activated and leverage for forex traders is available.
Naturally, this represents a considerable level of risk that only certain types of traders are advised to play with. You can trade bitcoin with any type of account.
The Plus500 online trading platform manages to be both comprehensive and user-friendly. On top of that, it also offers valuable technical analysis software.
A trader can trade in multiple markets on the same screen and access price quotes of products in real time. Also, the trading platform is available in 4 different versions; one which can be downloaded, one which is web-based, one which allows a trader access from a foreign computer, and an app version for Windows, Android, and iOS.
With Plus500, you can trade CFDs, currencies, cryptocurrencies (bitcoin etc), stocks, commodities, ETFs, and indexes.
Deposits and Withdrawals
You can fund your Plus500 account with a Visa or MasterCard credit card, bank wire transfer, or MoneyBookers. Of these, the credit card is the fastest method.
In the case of bank wires transfers, it should be noted that the minimum amount you can deposit is $100.
Customer support from Plus500 is available 24/7 in multiple languages via email and online chat. However, no telephone number is provided, which can become a problem if you do not have an internet connection or your computer crashes.
As you can see plus500 is a great broker, if you want to trade bitcoin.
For traders outside the United States, Plus500 is among the most reputed brokers in the business thanks to a variety of assets available for trading and an easy-to-use platform that supports different trading styles.
Can I buy Bitcoin on Plus500 with credit card?
Plus500 only offers bitcoin trading. You can’t buy actual coins that you can withdraw later.
Can I trade cryptocurrencies on my smartphone?
Yes, plus500 offers quality trading apps for Android and iOS. This means that you can trade cryptocurrencies and all other assets on your smartphone.
So you’ve decided that it’s time to open your first bitcoin wallet? Good choice. Cryptocurrency is the future and you’re an early investor at this point.
Without the numerous Bitcoin wallets that offer varying levels of security, convenience and opportunities to holders, Bitcoin and indeed cryptocurrency in general, would not be as big as it is.
On a basic level, Bitcoin is a currency like any other, with the only difference being that it’s digital and decentralized, unlike ordinary currencies.
Nonetheless, Bitcoin, which raked in revenues of more than $2 billion in 2016, needs to be stored just like other currencies to ensure safety and ease of transactions primarily. However do you know how to open a bitcoin wallet?
We believe that you found your way here not to read about the importance of Bitcoin wallets, but their intricacies. If you are in e-commerce or just an enthusiastic developer looking to create your own Bitcoin wallet, here are three things you need to know before anything.
Different Types of Wallets
Before going any further, we have to make it clear that a Bitcoin Wallet is not the same thing as a Bitcoin Exchange even if the two may be used together.
Basically, a Bitcoin Exchange is an app or website that allows Bitcoin holders to exchange their crypto for fiat or paper currency.
On the other hand, a Bitcoin wallet is a software that helps you “store” your crypto and make Bitcoin transactions.
Well, technically Bitcoin can’t be stored as it’s not tangible so in this case, wallets store both the public and private keys that you use to send and receive BTC and help you connect to the Blockchain when you need to make a transaction.
That said, the point here is that when setting out to create one, you need to be aware that all wallets are not made equal – just like you have real leather and faux leather wallets for paper money. There are five different types of wallets that you can create, namely:
Mobile Wallet – Usually in the form of a mobile app that allows you to make instant purchases using your smartphone. Features include safe storage for your keys both private and public, QR code scanning and fast transactions.
Desktop Wallet – Typically computer software that enables you to, among other things, store your private keys in cold storage, away from the Internet or third-party servers.
Web Wallet – Depends in varying degrees on the Internet to function. On the brighter side, they allow multiple transactions, can be linked to Exchanges and allow you to log in from different devices and locations. However, private keys are stored on the web in third-party servers.
Hardware Wallet – A dedicated device that securely stores user information and private keys in an internal microchip in encrypted form, making it very difficult for unauthorized access. It’s considered the most secure type of wallet.
Paper Wallet – A piece of paper, generally printed by the user, containing both the private and public keys in the form of QR codes.
Each of the above wallets requires its own level of security and functionality features and as a developer, knowing the differences between them is an excellent first step.
Security is Key
Whether you are building a wallet for commercial purposes or your personal use, security is one thing you don’t want to compromise.
It is what people look at when choosing wallets to use, and in the absence of a regulatory authority, your wallet needs to be very secure to even be among the options.
As mentioned above, you need to have a safe, secure and convenient way to store private keys whether online or in cold storage.
Standard practice to this effect is Two-Factor Authentication (2FA) which requires the user to use both their wallet password and a One Time Password (OTP) which can be sent through email, SMS or Google Authenticator.
Another way to secure user funds is by backing up their wallet data, including private keys (in encrypted format) in a secure server. This makes for easy recovery in case of primary server crash on your part and human error on the user’s part. You can also encrypt user data in such a way that only them, through their private keys can access wallet data. Depending on the encryption software you use, every user gets a password to use when sending Bitcoin from their wallet.
If any unauthorized person gains access to their wallet, they won’t be able to transfer or use any funds inside unless they somehow get access to the secret passcode. Again, security is the key to success of your wallet. If you get it right, everything will be alright, and the reverse is unfortunately also true.
It’ll Cost You!
Note that we are not talking about the obvious sleepless nights when trying to find a secure API or Source Code to use. We merely mean that building a Bitcoin wallet will cost you money, real and big money.
Therefore, you need to be fully prepared not only mentally but also financially as well. To put it into context, the average cost of creating an ordinary mobile app for just one OS is around $10-$15k depending on graphics and specifications.
When it comes to Bitcoin wallets, you may want yours to be compatible with several platforms, especially if you are in business.
Add the cost of paying a decent app/software development agency for an additional 200 hours or so to create a multi-platform wallet to the common expenses such as front-end development, web integration, secure hosting and SSL encryption for your web site and the costs can easily run up to $100,000 plus.
Nonetheless, the cost of creating your wallet will depend on the projected user numbers, features included and what type of wallet it is relative to the 5 categories mentioned in point 1 above.
The development team you hire for the job may also be cheaper or expensive depending on their skill and experience levels and your specifications. Ultimately, the costs are still manageable but still run up to a tens of thousands of dollars.
Thus, it makes more sense to develop a custom Bitcoin wallet for business use as opposed to one for personal fun but hey, it’s all in your hands.
While it may make sense to you in the heat of the moment, we strongly advise against going for dirt-cheap developers and features as it may negatively impact the security and consequently, the reliability of your wallet. Go for quality instead.
We may not have covered everything about Bitcoin wallets in this article, but we believe that we have comprehensively touched on the three most important things to know before creating a wallet. It may be time-consuming and expensive, but that’s nothing to hold you back if you are committed to the course.
Drop a comment below if you liked the post or a question if you need something explained in detail.
Revolut is absolutely free to use as they don’t charge any fees for most of their services.
Can I Buy Cryprocurrencies on Revolut.com?
Revolut recently added cryptocurrencies to their platforms. You can buy cryptocurrencies like bitcoin, ethereum, litecoin, bitcoincash and ripple directly from the app. Their crypto offering is quite limited because only these 5 cryptocurrencies are available at the moment.
What’s even worse is that you cannot withdraw any cryptocurrency from Revolut. You can only buy, sell or transfer it to other revolut users. This makes Revolut a bad platform is you are interested in cryptocurrencies only.
However they do offer real time rates and you can track the performances of your cryptocurrencies. You can even set price alerts to get notified when a certain cryptocurrency reaches your desired price.
Alternatives To Revolut.com
If you want to get started with cryptocurrencies then we recommend picking one of the top rated bitcoin brokers here. The all offer a bigger number of cryptocurrencies. Or if you are interested in crypto trading then sign up with Binance (here is our binance review).
Should I Buy Bitcoin On Revolut?
Honestly you can’t really do much with the crypto you buy on Revolut. You can’t spend it, you can’t trade it. All you can do is to hold it and hope that its value goes up, or send it to somebody else.
Think about what your goals are when buying cryptocurrency and then decide if buying it from Revolut is the best choice.
Despite the risks associated with cryptocurrencies, which refer to hyper-volatility, hacking resulting in substantial losses and no downside protection, among others, more and more entrepreneurs are trying to exploit digital currencies by incorporating them into real estate transactions.
Whether we are talking about trading, investing, renting or buying, the truth is that this idea comes with perquisites as well including cost reduction, privacy, particularly for those who intend to purchase property, easier international transactions and tax avoidance.
Of course, we cannot forget the most obvious benefit of all – using Bitcoin in real estate transactions captivates the attention of the press – probably this explains how a Bitcoin enthusiast managed to sell his property in 2017 through a non-so-typical real estate transaction based on cryptocurrency.
Since the moment it made its appearance, Bitcoin undoubtedly enjoyed great popularity, which also led to a considerable rise in value, but will it offer stability? Can you use it in DST Real Estate Investments & 1031 Exchange?
Find someone willing to accept Bitcoin as payment
Taking into account that real estate professionals have no intention of giving up on cryptocurrency, some states even started working towards changing their laws in order to give them the permission to finance real estate transactions with Bitcoin.
Consequently, the industry does not miss a single opportunity to make use of this popular digital currency in various ways. For instance, those who intend to purchase properties have the possibility to resort to Bitcoin for the payment. In this case, sellers have two options: accept the Bitcoin in his current form or turn it into cash – the traditional currency.
However, the following question inevitably arises: how do you actually conduct a cryptocurrency real estate transaction? Well, even though cryptocurrency gradually became a common topic of conversation in various industries, not just real estate, not everyone is willing to accept it as a payment method.
For this reason, those who want to buy a house with Bitcoin need to find someone willing to accept the exchange to begin with or at least agree on converting it into money, which represents an additional step to the process.
Converting the Bitcoin to real cash might require additional steps
The only inconvenient is that converting the Bitcoin not only takes more time, but it also requires a specific fee.
Furthermore, when it comes to house mortgages, although opting for Bitcoin is more than possible, it makes the buying process more complicate because home sellers might agree on a Bitcoin offer, but lenders might not share the same enthusiasm for this popular digital currency.
Apart from these minor details, the process is not very different from a cash sale.
However, documenting the conversion is crucial because mortgage lenders must determine where the cash deposits come from to rule out any potential illegal activity. In some cases, the buyer has to sign a declaration, which states the source of the money because it eliminates the possibility of a debt. In conclusion, including Bitcoin in real estate transactions is possible, but it comes with additional precautionary measures.
For years, hedge funds and institutional investors have been using sophisticated algorithms to identify price patterns and trade ideas in the securities markets, and perhaps today they’re doing the same for cryptocurrencies.
All the while, the everyday retail investor has largely been left behind.
But that’s changing by the day. Companies are starting to roll out retail-friendly A.I. tools to identify patterns and generate trade ideas. A company in California called Tickeron has a “Pattern Search Engine” tool that does just that, and on January 17, 2018 it’s A.I. confirmed a “Broadening Bottom Pattern” for Bitcoin with dire predictions for its price. Given Bitcoin’s powerful rise over the previous year, it was a undoubtedly a bold and difficult-to-believe claim:
Tickeron’s Artificial Intelligence was predicting a -40.53% crash.
At the time of the prediction, Bitcoin (BTC.X) was trading at a little over $11,000, but according to the AI’s forecast it believed with 88.78% confidence that the price was set to plunge below $6,000.
What happened next is astonishing:
BTC.X ‘breakout price’ set by AI on January 17: $11,491 (reached on January 18)
BTC.X price on February 5: $6,914
On a price basis, that marks a 39% decline, meaning the AI’s forecast was remarkably close to being on target. To note, the AI never makes any predictions with certainty, but calling for this Bitcoin crash is a significant indicator of the AI’s potential.
Here’s how the prediction was displayed at the time of inception. You can see the breakout price, target price, and an image of the “Broadening Bottom Pattern” in the chart:
For investors who are new to pattern trading, a Broadening Bottom pattern forms when a security’s price progressively makes higher highs (2 and 4 in the Bitcoin chart) and lower lows (1, 3, 5), creating two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first — in this case, the lower boundary.
For investors who are subscribed to Tickeron’s AI-powered Pattern Search Engine and received an alert of this Broadening Bottom pattern for Bitcoin, there could have been a few trading options. One option might have been to sell Bitcoin and buy it back at a lower price — assuming the trader believed the declines would be significant but also temporary. Another possibility would have been to purchase a put option on Bitcoin at the time of the AI’s prediction, when the price was still high.
Adding A.I. as a Tool in Your Investment Toolbox
One of the only certainties of investing in stocks, bonds, forex, cryptocurrency, or any other type of security is that there is no certainty when it comes to future price movements. Making an investment decision about a trade or a strategy can involve all the data and research in the world, but there still remains an element of chance, and ultimately, luck.
But that does not mean it’s a waste of time to perform diligent research and homework, and to use all of the tools at your disposal in an effort to make informed, smart decisions. More data generally leads to greater conviction, which can also also lead to a higher probability of success.
It is a very new tool that until now has not been available on a broad basis to retail investors. The A.I. mentioned in this article can be found on Tickeron.com, and it offers investors a free trial. Tickeron’s idea is to provide retail investors with technology and tools to enable trading with massive amounts of data and analysis.
The end result is arming retail investors with a high-powered, virtual research assistant: Tickeron’s Artificial Intelligence. Readers can check out the free trial here: Pattern Search Engine
To note: the information in this post does not constitute investment advice, and Tickeron has no recommendation for Bitcoin or any other cryptocurrency. Investing in cryptocurrencies involves risk of total loss.
The announcement came on the heels of customer demand, and Robinhood execs seeing the opportunity for cryptocurrency to be an entry point for other financial services. After all, Robinhood was created to make the stock market more accessible to groups afraid of the cost-barrier. Why wouldn’t they use the same strategy for cryptocurrency?
On the surface, the promise of no high commission fees and its adoption of quick access to BTC and ETH is appealing. Plus, it’s a drastic difference from Coinbase that charges 1.5 – 4% fees for transactions.
In fact, many top exchanges and platforms have a similar fee structure as Coinbase. Kraken, for example, offers lower transaction fees but is not beginner-friendly and makes up for those lower fees with higher deposit fees.
Digital money platforms where you can move money instantly, like Uphold or Abra, charge lower fees overall and are transparent about how funds are reserved but don’t have the same “commission-free” lure of the newcomers.
However, there’s almost no transparency of how Robinhood Crypto, or any commission-free exchange, is making up for the loss: with hidden fees.
Paid subscription service for higher borrowing amounts
Adding 1 – 5% to the value of cryptocurrency during trading
So, “commission-free” actually means that the revenue is distributed in other ways that users can’t always see. What’s more, an exchange like Robinhood Crypto encourages you to borrow money in order to fund your wallet.
This is just one example. Robinhood Crypto isn’t the only exchange using a misleading marketing promise in order to meet customer demand. Circle Invest also promises no fees, but uses a similar “exchange-spread” strategy to add an additional fee to the real cryptocurrency value during trading.
In other words, Circle Invest offers an unfavorable quoted price compared to the actual price of BTC at the time of exchange. As an article from 99Bitcoins revealed:
“When you buy [b]itcoins with Circle you won’t pay a fee but it seems that [on] Circle $500 doesn’t come up as $500 worth of [b]itcoins. It seems that Circle doesn’t guarantee the exchange rate at the time of placing the order (unlike [exchanges with fees]). This can cause a difference in how much you pay.”
This was before December 2016, when Circle removed the ability to buy and sell bitcoin on its platform. The same strategy though applies as its moved it’s cryptocurrency market over to Circle Invest, Circle’s latest cryptocurrency mobile app. For example, the value of Ethereum may be a price of $500 across exchanges. However, on a “comission-free” exchange you would be charged $505 to buy or $495 to sell. Why? So the exchange can make up the difference.
Other exchanges and digital money platforms have started to pay attention, as they stick to traditional structures of upfront fees and guarantee the value of cryptocurrency at the time you buy it.
When you buy a cryptocurrency on Circle Invest, you’re not actually buying it at the value it’s currently trading at—there is a hidden fee built into your transaction, so you’re paying more for that cryptocurrency. So, from the customer’s perspective, you may think it’s a free platform, but it’s really not.
Buy Bitcoin Now, Transfer Never
Still, consumers are drawn to these new, exciting exchanges for more than just the “zero fee” sticker on the front page of their website. The ease of buying, especially with exchanges that have integrated apps like both Circle and Cash by Square, has challenged the industry to grow beyond one central exchange platform.
However, what some of these exchanges and digital wallet apps don’t explain, is that you can’t really do anything with your cryptocurrency beyond buying and selling within the app.
Which means, you can’t use your bitcoin as currency. There’s no function to take your bitcoin out of the app, or on the other hand bring cryptocurrency into it.
These exchanges, simply, treat cryptocurrency as an investment opportunity with no flexibility. You can’t use the money for transactional purposes. You can’t send someone else bitcoin, or pay for a purchase with bitcoin. Right now, all you can do is hold that bitcoin.
Which, in that case, do you even own it?
Transparent and Reliable Exchanges Exist
There are over 190 cryptocurrency exchanges to choose from, and with so much competition it’s no surprise that companies are doing everything they can to attract customers.
The fact is Coinbase isn’t the only option—nor should it be the only option. There are a few key features of a reliable exchange that can make sure you protect your funds and have a good relationship with the platform:
Transparent policies and fees
High price accuracy
Of the listed exchanges, the most reliable exchanges or wallets offer a diverse mix of traditional and cryptocurrencies. While many come with fees there are alternative options that have fees that are notably lower and are transparent about the exact costs of transactions. That level of transparency goes a long way for consumers, especially when so many of these other digital wallets leverage insidious hidden fees.
As consumers, it’s critical to do some homework, look at fee structures, weigh the available cryptocurrencies and ultimately decide which exchange offers the most practical value. The key to remember is that if an offer sounds too good to be true, it just might be.
Some say it is the future of digital transactions. Some just got scared of it, considering it as Water Bubble. Others named it “Magic Internet Of Money.”
What is exactly cryptocurrency? Why it’s taking the world by storm?
One out of five people knows cryptocurrency come up a side product of another invention. Developers of Bitcoin claimed that they came up with this cryptocurrency as Satoshi Nakamoto.
Satoshi announced Bitcoin in 2008, said that bitcoin is “Electronic money transaction between peer to peer network.” The primary goal is to invent digital currency without the intervention of the third party with a high-security transaction between peer networks.
Cryptocurrency is medium of exchange currency in digitally, here virtual currency completely control under government or any central authority, but cryptocurrency entirely there own thing which means we no need to go the bank to translation or process.
Satoshi tried to build a digital cash system without a central entity. Like a Peer-to-Peer network for file sharing. A blockchain is a public ledger of all transactions that ever occurred in Bitcoin peer to peer network. It’s completely decentralized with no server or central authority.
Then what is Bitcoin?
Bitcoin is first centralized digital currency, which has become incredibly famous among the rich and famous as well as those involved in the finance industry today.
Bitcoin relies on something called “the blockchain.” A simple way to understand. Bitcoin is a technology, its store’s data in a network of personal-systems called nodes. In blockchain technology, there is no decentralized system like a government or bank handling it. In blockchain technology systems are distributed with a chain or node of networks, which means all Computer network stores the same information.
How does Bitcoin work?
In nutshell bitcoins designed as a virtual coin, transactions made self-contained
In nature. Which means we need not go banks for monetary transactions.
Once you have bitcoins in your pocket, they act the role as some gold nuggets in your pocket. With bitcoins, you can do all kind of transactions to buy anything over online, or you can store them for future, which may eventually increase its value over the years. Bitcoin transactions made one personal wallet to other ones.
Here wallet means you can use the wallet as a small database which we can store in a personal computer drive, or your mobile phone, tablet or somewhere in the cloud.
The basics for a new user
If you are a new user, you can use bitcoin without knowing the technical details of bitcoin. Once you have registered a Bitcoin wallet on our mobile phone or computer. It will automatically create your bitcoin address after that you can also create multiple addresses whenever we need one.
Here we can share your addresses with your partners or friends. So that they can pay you or vice versa.
Actually virtual currency ( Bitcoin) works similar to how email works, except we can use bitcoin address must be used once only.
Features that will help your business grow:
1) Fast transactions
Today’s competitive world, everyone wishes to transfer their monetary transaction faster and quicker. But bank to bank transactions between nations is. It takes up to 5 business days to complete.
Small businesses and startups that cherish KPIs more than anything cannot wait that long. To overcome this delay in transactions, Cryptocurrency features were adopted by many innovative business groups.
When transaction made through cryptocurrency, all activated transactions are stored in a public ledger. All transactions are encrypted to ensure the authority of record keeping. Because the currency is no central authority, you own it. Either government nor bank has any control over it.
3) Lesser fees
While it is true that the elimination of a third party involved in the settlement, the money that the participants had to shell out for them would no longer be required. But at the same time, there would be a need to pay the fees of an online platform which would make bitcoin transactions work together. Albeit with much lesser prices than charged by intermediaries.
Did you know that today one in 3 Kenyans, can own a bitcoin wallet? Such individuals who can have access to smartphones and the internet, but do not have as much access to traditional cash, would be able to be involved in cryptocurrency.
5) Universal recognition
Being a digital currency, cryptocurrency doesn’t need to keep concerning any exchange rates, transaction charges or anything like that of other countries. This gives it a great appeal to make use of it on a universal level.
6) Quick Settlement
Cryptocurrency has any value because of Blockchain. Secured transactions with ease made cryptocurrency lead the market. All you need is a smart device, an internet connection, and instantly you become your bank making payments and money transfers.
7) International trade payments
The globalization process has removed the cross-border barriers for businesses. One can quickly sell or purchase anything from any part of the word. When it comes to payment process it is challenging, expensive, and time-consuming process with the traditional financial system. But cryptocurrency simplified this process. Using bitcoin one can transfer the payment within no time and at leas cost. Bitcoin encourages international trade through its hassle free and secure pattern.
So, thus although at its nascent stage, cryptocurrency sure shows many great opportunities and benefits for the future. From experts point of view, the features of cryptocurrency are not limited. As the research and developments are in progress, we can anticipate cryptocurrency provide us new features to grow business.
Established back in 2013, CEX.IO initially operated as a cloud mining provider that was in charge of about 40% of the Bitcoin network at that time. However, since 2015, it has solely operated as a cryptocurrency exchange.
Broadly speaking, CEX.IO is a platform that allows users to buy/sell or trade Bitcoin, Bitcoin Cash, Ethereum, Ripple, Dash and many more popular cryptocurrencies in the easiest way possible. It is a plain and comprehensible platform having an increased focus on newcomers who wish to get the hang of cryptocurrency.
Options available on CEX.IO
There’s no rocket science here. Speaking of financial operations made available for its users, CEX.IO includes two basic options: Buy/sell and Trade. Let’s consider each of them a bit closer.
You may be wondering what’s the difference between trading and buying/selling. In general, there’s no difference. But, on CEX.IO, Buy/sell is a solution for people who don’t really need to engage in trading but only wish to buy a certain amount of cryptocurrency instantly and without any effort. See for yourself:
Under the hood of Buy/Sell, there’s a FOK (Fill-or-Kill) order system. Once you entered the amount of money you want to spend, the system freezes the rate of cryptocurrency for 2 minutes. In other words, it guarantees that you will buy THIS amount of crypto for THAT amount of money. On top of it, the total amount displayed includes all the fees of the platform so that you won’t receive any unexpected or hidden charges.
Cryptocurrency Trading on CEX.io
The Trade section, in its turn, includes three various trading options:
Limit. You specify the predicted rate at which you are ready to strike a bargain. In case it comes true, the order will be automatically executed, no matter if you are at work or sleeping. So, the limit order option is a risk-preventing mechanism for traders in a sense.
Market. This is all about traditional trading. All you need is to choose the amount of cryptocurrency to buy or sell, and press the “Place order” button. It will be executed based on the order book and at the best rate possible at the moment. For those who don’t want to count up the profitable rate, the average market price is inserted by default.
Margin trading. In a nutshell, this option allows users to enlarge their trading profits by means of borrowing money from the exchange. The hallmark of CEX.IO’s margin trading is that all operations are done within one account and money balance, whilst most of other exchanges require the users to make a separate margin trading account with funds in it.
Formerly, CEX.IO would let you deposit/withdraw $3,000 monthly without a need of verifying yourself. Now, the attention to cryptocurrency is much higher, so the regulating issue is more of a pressing point. You can read about it on their blog.
As to the process of verification, there’s nothing complicated about it. Going through CEX.IO’s official guide is enough to get the know-how.
When it comes to deposits/withdrawals, you basically have two options:
Easy || Instant || Commision charged. CEX.IO made it possible by virtue of money transfers via Visa/Mastercard. First of all, you should link a bank card to your account. And once you’ve done this, funds can be transmitted literally in seconds. If you feel restless about your bank card data, it would be proper to mention that CEX.IO is PCI/DSS certified, which ensures the safety of card data processing. To conclude, the only disadvantage is the fact that a 3.5% + $0.25 deposit fee is imposed on this payment method. In terms of withdrawals, the fees will vary: $3.8 – for VISA, and $3.8 + 1.2% – for Mastercard.
No commissions, but longer execution. It is referred to as bank transfer. There’s nothing to add here. CEX.IO doesn’t charge commissions if you use it for deposits, but the transaction can stay pending for some time. As for bank withdrawals, commissions depend on the currency and the specific withdrawal opportunities available. You can always find the information on the fees in the Limits and Commissions section.
So, what is CEX.IO in summary? CEX.IO is a plain, trusted and easy-to-use cryptocurrency exchange, offering great functionality for regular customers who wish to unveil the cryptocurrency sphere with no hassle.
Bitcoin took the world by storm over the course of the last twelve months with the meteoric rise in its market value.
Bitcoin peaked at an all-time high of $20,052 on December 17, 2017, and made the headlines across the globe.
Bitcoin is no doubt innovative as a payment option, and it runs on Blockchain technology. You will learn how you can trade bitcoin even if you are just a beginner. Start making money with bitcoin and other cryptocurrencies.
Bitcoin is a cryptocurrency, which was created in 2009. The creator is known under the alias Satoshi Nakamoto and nobody know who he really is.
What makes cryptocurrency unique, is that there are no middlemen like banks. However bitcoin transfers are a lot faster and a lot cheaper than bank wires.
How To Trade Bitcoin – Buying Your First Bitcoin
Bitcoin can be bought in a variety of ways depending on where you live on earth. Trading Bitcoin has become very popular – millions of dollars are being traded every day. The following options are widely used:
Bitcoin Brokers (Recommended For Bitcoin Traders)
You can buy/sell Bitcoin and other cryptocurrencies on brokers like Plus500 and 24option. The big advantage of the brokers is that they are regulated in the European Union and other countries. This means that your funds are safe. The support is also great and you have a variety of deposit methods. The disadvantage is that you can’t withdraw your crypto. You can trade is on the broker and withdraw fiat money (USD, EUR etc.) when you wish.
Bitcoin is usually bought by using an exchange. In any of the exchanges like Coinbase, Binance or Kucoin, you need to provide your personal details to register an account and be validated. While Coinbase is restricted to users from America and a few countries, you can register on Poloniex and Binance from other countries.
Peer-to-Peer avenues like LocalBitcoins give you an opportunity to buy Bitcoin. You will need to register an account on the platform to be able to use the platform to buy Bitcoin. Sellers and buyers are registered on LocalBitcoins to facilitate Bitcoin trading.
Bitcoin ATMs are increasingly becoming a glaring feature in major global cities. In America, Europe, Asia and South Africa, there are Bitcoin ATMs that give you a chance to buy Bitcoin. You need to have your Bitcoin account barcode scanned at the ATM to buy the quantity of your choice. If there is a Bitcoin ATM around where you live or visit, you can locate it on Google Map and buy your Bitcoin with ease.
Mobile AppsBuying and Trading Bitcoin is now easier than ever before with several apps on mobile phones now making it easier to do so. The Square app can be used to buy and sell bitcoin on your mobile phone.Several other apps have a similar function, and they can be downloaded from Google Play and Apple iStore.
According to recent data, only 8,5% of the traders are female investors. Maybe the reason for this is that men are more interested in new technologies. Over the next 2 years, the percentage of female investors is expected to double.
How Beginners Can Make Money With Bitcoin Trading
It’s very easy to get started with bitcoin trading. You can either deposit money to an exchange and trade it there, or you can sign up with a regulated cryptocurrency broker and discover the huge variety of bitcoin trading options.
If you are only interested in trading bitcoin and other cryptocurrencies, then signing up with a broker is probably the best choice.
Bitcoin has come a long way since it was first introduced in 1998, and it has become a global currency without boundaries. The value of Bitcoin is universal, and it is accepted as a means of payment in many countries on earth. The popularity of Bitcoin has given rise to alternative coins (or altcoins) like Ethereum, Bitcoin Cash, Ripple, among others.
You can shop online and buy a range of goods and pay for services with Bitcoin. Many merchants accept Bitcoin as a means of exchange, and this has become easier with the issuance of Bitcoin debit cards.
The bandwagon effect of Bitcoin has led to a growing acceptance of the altcoins, and this can be seen in the increasing market activity. For example, ethereum price leaped to its highest peak of $1,389 on January 15, 2018 as the demand for it exploded. Bitcoin is accepted by businesses like Microsoft, Dell, WordPress, and PayPal.
Answers to Important Questions – There are some important questions that newbies always ask about Bitcoin. Here are the major ones you should know:
Altcoin stands for ‘alternative coin’. Bitcoin being the first crypto coin, it is not an altcoin. All other coins, but Bitcoin are altcoins (ex. Monero)
There are several ways to make money with bitcoin. A few of them are: trading or long term investing
Who Created Bitcoin?
Bitcoin arose from the innovative work of Satoshi Nakamoto, who laid out the specification and operating methodology.
Satoshi did not create Bitcoin alone, as he worked with other developers on the project. As a result of this approach, Bitcoin operates as an open source and decentralized platform.
While many people have wondered whether Satoshi was a pseudonym or a true identity; the answer remains unknown.
Other collaborators on the Bitcoin project are Gavin Andresen, Jeff Garzik, Mike Hearn, among others.
Bitcoin is definitely the outcome of a painstaking work that includes the footprints of several people.
Bitcoin is created when a computational difficulty is solved on the Bitcoin Blockchain, and this is rewarded through block rewards. Block rewards are given to miners who successfully completed the recognized process that gives rise to a Bitcoin.
Block rewards are not arbitrary as they are subject to a verification process built-in as a part of the Bitcoin algorithm.
What Drives The Price of Bitcoin?
Bitcoin derives its price from the interplay of the forces of demand and supply. As people increasingly acquire it, the price soars and the inverse leads to a price drop as demand reduces. Bitcoin can then be seen in the likeness of gold or diamond that is scarce in supply.
Bitcoin is limited in supply to the tune of only 21,000,000, and about 17,000,000 of these are in supply at present. It is not known if any change can be made successfully to the underlying framework of Bitcoin; otherwise, it has a fixed supply.
Is Bitcoin & Bitcoin Trading Legal?
Bitcoin has attracted lots of controversies in the course of the last few months as a result of concerns and misrepresentations. The United States, Europe, and several countries have accepted Bitcoin as legit, and efforts are being made to regulate it. This is not to say that it faces opposition in a couple of countries.
In China, Bitcoin is illegal, and South Korea has also imposed a couple of restrictions on it. A few other countries have come up with laws to restrict its use. However, an overwhelming number of countries are open to Bitcoin.
Are Bitcoin Transactions free?
One important aspect of Bitcoin transactions is the fact that it also attracts transaction fees. While the fees charged might vary according to the processor, transacting in Bitcoin is not free. When you buy Bitcoin, you have to pay trading fees, and if you exchange it for fiat money, you will incur charges.
What is a Bitcoin Account Like?
Bitcoin is stored in an account that you can liken to a Bank account. The difference is that unlike a Bank account, your Bitcoin account is a virtual Bitcoin wallet. There is a unique address for each Bitcoin wallet that is created, and you can use it globally.
On a trading exchange, when you create your account, your Bitcoin wallet address is automatically created. You can choose to leave your Bitcoin on the exchange for trading or withdraw it to a private Bitcoin wallet. There are hardware, online, mobile, paper, web, brain, multi-sig, desktop wallets for Bitcoin.
There are different kinds of non-exchange wallets that you can use to store your Bitcoin for security purposes. Every wallet has a public wallet address and a private key used for accessing it. Your private key is like your password for emails.
Can I Lose My Bitcoin?
Bitcoin is safe if you have it stored in your private wallet. There is a difference between storing your Bitcoin in your trading exchange wallet and a private wallet. Your trading exchange wallet is considered to be risky to store your Bitcoin.
When hackers attack exchanges or there is a system breakdown, you can lose access to your Bitcoin. To prevent this, it is advisable to use a hardware wallet for storage. Trezor and Ledgerwallet are two of the best known hardware Bitcoin wallets.
You can also lose your Bitcoin if you send it to a wrong address. It is important that you use ‘CTRL C’ on your keyboard when copying a recipient’s address. If you send Bitcoin to an unknown address, there is no way to claim it back at present.
How Does Bitcoin Mining Work?
Bitcoin can be mined by anyone who is interested in doing so. There are a few options when it comes to mining Bitcoin. You can decide to buy a mining gadget for that purpose and this is a common practice in many countries.
While the profitability of the mining exercise also depends on the market price of Bitcoin, the electricity implications have to be evaluated. As Bitcoin surges in market price, mining becomes more lucrative, and a crash in market price also means that you could incur losses.
You can also decide to use your PC for Bitcoin mining, and this will require that you download a Bitcoin mining extension by using your browser. Using a browser extension for Bitcoin mining is a rather passive means to earn an income. You will be credited a share of the Bitcoin mined with your browser by the service provider.
What Is A Blockchain?
An understanding of the Blockchain is equally important for anyone who is keen to follow-up on its underlying basics. Blockchain is best described as a distributed ledger that operates within a decentralized network of linked computers, nodes and devices.
There is no central control over the Blockchain, and it can be accessed anywhere around the globe.
The use of Blockchain extends across several spheres of human endeavor from medicine to shipping, payment systems to database validation, etc.
Payroll processing, invoice management, and Insurance are some of the other facets of life that are revolutionized by the Blockchain. Bitcoin value in itself can be traced to the transparency, traceability, and auditable nature of the Blockchain.
The outlook for Bitcoin looks bright with many countries opting for regulation instead of a ban. This perception is a green light for many people as they look out for ways to share in the Bitcoin boom. Evidently, Bitcoin will wax stronger in the days ahead.
Forex market is very old and there are many traders who have been trading in this market for a long time.
You will find they have the age of your grandmother and still they trade with patience in Forex. This thing is absent in the modern traders and they are all in a hurry.
They want fast result, they want short-term strategy, they want trend changing fast and they also trade in commodity market for making the fast profit. There is one thing in Forex that is always true and that is success never comes easy.
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You cannot expect that you can be rich if you are using day trading or you are scalping. Trading in Forex depends on how you are making the use of your time. If you want, you can place 100 trades in one day and lose most of them.
If you want, you can only place 2 trades in one day and win them. This article will tell you why people are always in hurry even after knowing that it will not do them any good.
Greed is very dangerous when it comes to currency trading. Since the Singaporean traders have access to high leverage trading accounts, many traders often trade with a big lot to change their life.
Leverage is one of the most sophisticated tools offered to you in the investment world. You have to be extremely precise about the use of leverage or else you are going to blow your trading account. Learn to control your greed to become successful a trader.
There is no shortcut in the trading industry
Do you want to become rich within a short period of time? Do you want to change your life in a blink of your eye? If so, trading is NOT the right profession for you.
Trading is like your traditional business where you will have to assess the market with precise knowledge. You need to learn the use of advanced trading tools in your trading platform so that you can enhance your winning edge. Always try to trade with the elite class broker like Saxo so that you can experience premium service in the Forex industry.
All want easy money
The reason behind they are hurrying is they all want to make easy money, it is hard for them to think the market is going to change and they have not made a profit. They want to trade and they think wasting time is not going to bring them profit. They become brave and place the trades on the market. The result is known to us all.
This market may seem random but it is not and only the hardworking people are successful in Forex. If you want to make easy money, this market is not the right place for you. Only the experienced and patience traders can make the change in their career.
The wait is the important strategy in Forex trading that can make the transition from ordinary and common to successful and master trader.
Waiting is hard when there is so much money
You may think people do not know they need to wait for time to make the profit but most of them know but it is not easy to control your mind.
You begin to think when you are going to make money and as it is the biggest investment market, it is not easy for people to control their greed. Many traders have the nature of pigs and they lost their money. They want to make the profit and when they place their trades, all they have is only losses.
Millions of trades are being made in every hour and billions of dollars are at stake. It makes it hard for the traders to go home without trying. The results are they place in trades in whatever trends they get in Forex.
Are you considering investing in gold? Are you curious about other ways to do it besides buying it in a physical state?
As it turns out, there is only one other way to do so and that is via an exchange-traded fund. While you may have to deal with a yearly expense ratio, you will not have to insure or store your gold all on your own.
Of course, if you are going to trade ETFs, you will need a broker. And some of the best brokers that allow you to trade ETFs as well as gold are eToro and Pepperstone.
The bottom line is there are 3 main gold ETFs right now.
SPDR Gold Shares
iShares Gold Trust
ETFS Physical Swiss Gold Shares
SPDR is by far the largest of the three. However, the other two are also pretty substantial in their own right. But before we go any further, let us ask ourselves if gold is a worthy pursuit to have in our portfolios.
Why would you want gold in your portfolio?
It is not merely because it is – well, gold. There are plenty of other reasons that make it a highly sought after commodity in the online market at least.
Value is certainly a driving factor. The value of gold usually stays apace with inflation because the US Treasury will keep producing more money, but the amount of gold in the world is finite. Of course, we have not reached the end of that supply yet. But the fact that the supply gold is not unlimited gives it an inherent capability of keeping up with inflation rates year after year.
Moreover, gold has been shown to perform better than other assets in times of difficulty. If we look back at the financial crisis of 2008, we can see that gold was still able to generate a 4.3% rise while S&P 500 sunk by a whopping 38.5%.
Finally, as an investor interested in ETFs, you obviously care a lot about diversifying your portfolio and here again, gold can be very useful. This is because its movements are largely independent of the movements of other assets. Very often, you can find gold shifting in the direction opposite to that of other stocks. It is no surprise then that investors have deemed it a “safe” asset.
Best Gold ETFs To Invest In
SPDR Gold Shares
This is a fund where purchases are made in gold bullion. Selling gold only happens only when there are expenses to be paid for or redemptions to be honored. Being so heavily invested in bullion, it very closely follows the trending prices of gold.
There are some neat benefits to be had from owning gold bars. First off, they cannot be loaned and every share has more value in gold than shares that do not purchase gold in its physical form. The drawback here is taxes. Since the IRS has labeled gold to be a collectible, the taxes imposed on long-term gains are pretty high.
iShares Gold Trust
If for some reason, you have overruled SPDR in your list of options, this is another fund for you to try. Be informed that it sustains bills for insurance, transportation, and warehousing. The gold is stored in a series of vaults spread out across the globe. IAU has also developed a reputation for being a safe fund because of its unusual policy of not selling gold when prices are up to make a profit. Rather, its management focuses on investors being able to purchase and hold their gold bullion.
We mentioned at the beginning that there are certain expenses that must be paid. The good news is that these expenses are considerably low, making this fund a cost-efficient way of purchasing and managing gold. However, once again you will be subjected to taxes from the IRS which has labeled this fund a collectible as well.
ETFS Physical Swiss Gold
This fund has its gold sealed tight in a vault in Zurich. It is also a very liquid fund so you can make purchases and sales without too much trouble. The only real standout feature about this particular fund is that unlike others that store real gold, it has all of its supply stored only in Swiss vaults.
Exchange Traded Funds are one of the best ways to diversify your investment portfolio as provide exposure to a multitude of different markets and industries – but then, so do mutual funds.
So if you were to choose one over the other, how would you go about it?
Of course, you could invest in both simultaneously if you have an ample of amount of dough to spend. However, that is not the case with a lot of traders.
So in this article, we try and explain the reasons why you might fancy investing in ETFs over any other alternative.
As far as investment portfolio diversification and exposure goes, we often see ETFs and mutual funds being listed alongside each other as very strong investment strategies.
That is because, in a number of key ways, they are quite similar. But crucially, in a number of key ways, they are also very different.
ETFs trade in the same way as stocks do and can be traded any time during the day. That affords them with a number of attractive qualities that mutual funds simply do not have.
Reasons to Invest in ETFs
Here are some of the key reasons why you would want to invest in ETFs exclusively.
ETFs cover a wide variety of markets and industries. In fact, some of them even represent the economy of an entire nation. The main benefit of this kind of diversity is that it effectively allows investors to ‘hedge’, relying on one investment to compensate for the risk associated with another.
But it is not merely with investing that ETFs offer flexibility. That quality is also present in the transactions. Since ETFs trade like common stocks, there are no time constraints on when they can be purchased or sold. To put that into context, if you wanted to short sell a mutual fund, you could be liable to pay penalty which could be as high as 1% of your initial investment. And the early sale period could be as long as 90 days after the purchase.
2. Low expense ratios
Owning and managing an ETF can be remarkably less costly than doing the same with a mutual fund. One study shows that in most categories, ETFs have expense ratios that are lower than mutual funds.
That said however, investors who prefer mutual funds will point out that the sum of commissions for all transactions combined with the scale of the bid-ask spread is enough to nullify the benefit of having a low expense ratio. Incidentally, these are both costs that do not apply to mutual funds.
3. No minimum purchase
If you have had prior experiences with investing in mutual funds, you will be aware that a lot of them have a minimum purchase amount which can be anywhere between $100 and $3000, maybe more. In fact, it is not unheard of for a minimum purchase to be as high as $50,000.
Fortunately, there is minimum purchase amount attributed to ETFs. You can literally invest in one share at a time if you want to.
4. Lower taxes
Once again, ETFs out-cheap mutual funds when it comes to capital gains taxes mainly because of the way each trade is structured. With a mutual fund trade, capital gains taxes are applied immediately whereas with ETFs, those gains are not realized until after the securities are sold along with the whole fund. That makes them a lot more cost-efficient when it comes to taxes.
When managing your portfolio, it is important to focus on risk management as well as diversification. A lot of ETFs offer plenty of useful tools to control risk including futures contracts, options, and swaps. So chances are, you can find a fund where you can hedge your bets with call or put options, or trade with option straddles.
However, some ETFs do actually contain options and futures in which case you should find out about how they may affect your trading strategy and the amount of risk involved.
These are just some of the many benefits you can have by trading ETFs over their alternatives. These benefits have been a driving factor in the popularity of ETFs since the early nineties and they continue to be so even today.
ETFs also usually have a higher liquidity and lower fees on a daily basis compared to mutual funds which further elevate their appeal to private investors.
How big are ETFs today? In the United States alone, they have attracted an estimated $1 trillion from investors and have roughly 1000 products trading on stock exchanges all over the country.
An ETF can be bought or sold just like shares of stock since the shares of an ETF are traded on a public stock exchange. Shareholders receive a percentage of the profits, and a residual value if the fund liquidates.
Creation and Redemption
The amount of ETF shares is controlled by a system called creation and redemption. It involves a few big investors or authorized participants and large financial agencies like banks or investment firms that have a high capacity for making purchases. Such APs are the only participants capable of creation and redemption.
In creation, an AP trades a certain number of underlying assets and receives in exchange some newly created ETF shares. Redemption is when the AP returns the ETF shares and receives the underlying assets.
Types of ETFs
There are many different types of ETFs to become familiar with. Fortunately, they are not that hard to get.
Market ETFs are aimed at keeping track of specific indexes like S&P 500 or NASDAQ.
Bond ETFs are designed to give some insight into various types of bond.
Sector and industry ETFs give exposure to industries like technology, medicine, and crude oil.
Commodity ETFs keep track of the price of a given commodity such as oil, precious metals, and food items
Style ETFs keep track of certain styles of investment or focus on market capitalization.
Foreign market ETFs keep track of markets like the Hang Sang index in Hong Kong and Japan’s Nikkei index and others which are outside of the United States.
Inverse ETFs at making a profit out of a declining underlying market/index.
Alternative investment ETFs: These refer to innovative ETF structures like those that enable investors to be exposed to certain investment strategies.
Advantages of ETFs
Ability to buy and sell at any time of the day.
Investors can place different types of orders since ETFs are traded in much the same way as stocks
Without counting brokerage commissions, fees are generally lower as there is no sales load.
Offers investors more control when dealing with taxes such as when they have to pay their capital gains tax.
Disadvantages of ETFs
Given that your strategy is to invest small amounts on a regular basis, it would be more cost- efficient to consider alternatives that invest directly in a no-load fund with a fund company.
Technical problems and discrepancies are not unheard of in ETFs that keep track of their underlying Index.
An ETF sale will not be settled until after 2 days of the transaction. So as a seller, the funds you receive from selling an ETF cannot be reinvested for at least a couple of days.
Happily, however, ETFs will continue to be the subject of innovation, speculation, and advancement for years to come. The key is to be fairly picky about which one you choose to advance your trading goals because, as we know, not all ETFs are created equal.
Never risk more, than you can afford losing. Trading carries a high level of risk, and we are not licensed to provide any investing advice. Understand the risks and check if the broker is licensed and regulated. A percentage of the external links on this website are affiliate links and we may get compensated by our partners. We are not financial advisors. Do your own due diligence. This is an information website only.
Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions.