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.
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.
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.
The investor centre is fraught with decisions – domestic or foreign, stocks or bonds, value or growth, ETFs or mutual funds?
The latter may not be a particularly pressing dilemma. Nevertheless, being aware of the differences and similarities between them can have a profound impact on the amount of money you make and how easily you make it.
The first similarity to note between ETFs and mutual funds is that they both allow you to purchase a collection of securities as one investment security. But there are more similarities
They have great utility in terms of diversifying your portfolio.
They also tend to invest in the particular market of stocks and bonds.
The majority of ETFs are passively-managed in much the same way as index mutual funds. That means that they will exactly replicate the performance of the underlying index. Also, the expense ratios are much lower than they are with actively managed funds.
That said, however, the meat of this articles is based squarely on the differences between ETFs and mutual funds. So what are they?
ETFs vs Mutual Funds: Differences
Pooling your money into a mutual fund is essentially pooling it with whatever company that is managing it. You can do this directly or have it done through a broker.
The buy is carried out at the net asset value of the fund which is calculated using the price as quoted when the market closes up for the day. Of course, if you happen to place your order after closing time, that figure will be taken at the end of the next day’s operations.
Predictably, that same process is reversed when you sell your shares but there is a catch. There may be a penalty attributed to some mutual funds if you decide to sell early. This can sometimes amount to 1% of the total value of shares and the period in which a sale is considered early is usually sooner than 90 days after the purchase.
Now ETFs are quite different in this regard. They trade in much the same way as stocks do – between two private investors instead of one investor and some corporate behemoth.
Purchases and sales can happen at any time that takes your fancy at whatever price the market is currently trending. There is no need to wait until the end of the day and there are no penalties tied to the shares for selling out early.
This enhanced flexibility really comes into its own when you consider that ETFs keep track of international assets, where prices that have already been updated in US markets are yet to be updated elsewhere.
Compared to mutual funds, ETFs do a much quicker job of relating new market information.
Another key distinction with ETFs is that they keep track of indexes like S&P 500 and attempt to mirror their returns and price shifts. They do this by putting together a portfolio to match the elements of the index as accurately as possible. Not to say that mutual funds are not capable of doing the same.
However, they are under active management by people who are always looking to usurp the index which they consider to be their benchmark. Also, they can be considerably more expensive. Active management naturally requires a hoard of analysts, extensive research into the economy and different industries and that makes a mutual fund a lot more costly to invest in than an ETF.
Which should you choose?
ETFs? Mutual Funds? Or both? Neither of these is a particularly bad option. The main concern for investors here is the cost involved relative to the gains.
Then there are the different types of investments for which one of the funds will be more beneficial than the other.
It is also useful to tap into the performance history of a fund which will help you evaluate your profit potential with it.
Finally, it is not absolutely necessary for you to choose between them. ETFs and mutual funds can actually work to further diversify your portfolio so long as they do not compromise investment goals or pose too much of a risk.
As you can see, ETFs and mutual funds can be incredibly resourceful and rewarding to invest in, and knowing what sets them apart from each other will help you deal with them a lot better than you otherwise would.
In the simplest form, a crypto-wallet is a place to store and trade cryptocurrency. It also works as the ledger that stores public and private keys and allows users to trade crypto-coins.
The authorized access is the most important aspect of the process to keep the trading process safe.
Some wallets allow users to use multiple cryptocurrencies in a single wallet. Software wallets are most commonly used as crypto-wallets.
A dedicated application is installed locally on the computer or the private keys are stored by a third party source in a web-wallet.
On the other hand, hardware wallets create payments through the API of the wallet and the public keys are sent to the network after being signed by wallet’s hardware.
The wallets which are connected to the internet are known as hot wallets whereas the cold wallets are not connected.
The Future of Cryptocurrency
As the crypto-coins are not actually inside the wallets, losing the access to the wallet doesn’t necessarily mean the loss of money but losing the keys can prove to be detrimental. In future, cryptocurrency is expected to be used while listening to music, watching videos or traveling from one place to another. The applications will have their own mechanisms for payments which will replace the bank accounts and middlemen.
This will help greatly in managing investments and also in doing the analysis of investments. People will feel to be in full control of their accounts in the absence of a centralized authority. Getting the services from networks will be different as people will contact developers if they need a secure place to store personal data. Marketing strategies will also be transformed with the change in consumer experience.
Wallets to look for
Only those wallets are expected to exist in the future which will adapt quickly to the changing needs of consumers. Mobile application wallets are expected to take over the transactions completely in the future. Following are some mobile application wallets:
Coinbase is estimated to have around 13 million customers in more than 30 countries. The most outstanding feature of this wallet is the option of recurring investments that can make the funds increase rapidly. It supports transactions across Bitcoin, Litecoin as well as Etherium.
At the moment, electrum is only available on Android and desktop platforms but it is expected to expand on other platforms too. It also allows users to use third-party plugins of hardware wallets like Trezor etc.
This is an open-source wallet but ensures the security by using only the verified servers which offer better optimization.
It is estimated to have more than 14 million customers worldwide. The simplicity and security are the core features of this product.
Mycelium is considered as one of the most reliable choices available when it comes to ratings given by the users. It also supports third-party plugins and is expected to give an optional link to connect debit cards in the near future.
Coinomi is a multilingual wallet that supports all the currently available cryptocurrencies and exchanges can be made using ShapeShift. The security and secrecy are the significant features of this wallet. It is designed to discourage IP tracking to make the whole process of transaction extra anonymous.
Lykke is a rapidly growing multi-asset wallet that allows users to buy, sell or trade: FX currencies, bitcoins, ethers, or tokens. Users can manage their existing wallets with better security options. It is an open source wallet available on iOS as well as Android platform. Under the effective leadership of Dr. Demetrios Zamboglou, Lykke won the FinTech of the Year Award in Digital Championship Cyprus 2016-2017.
Zamboglou is credited for his unconventional and relentless approach for making Lykke a competitor for the giants of the market within no time. He is hopeful of making all the transactions made through Lykke available in blockchain to make it transparent and accountable.
Mobi is essentially a Bitcoin wallet and now supporting an excess of 100 currencies across the globe with the use of Visa debit card. International transactions have become a lot easier with the use of Bitcoins. The instant crypto-conversions have revolutionized the whole idea of cross-border transactions.
Cryptocurrencies have emerged as a means of a digital substitute as compared to conventional modes of exchange, such as cash or credit credits and have liberated a distinct point.
In the beginning, it seems to be unfamiliar and somehow different as the credit card appears to the users in the earlier times. It appears to be a good source for the kidnappers, fraudsters and offenders who most of the times are indulged in ransomware dodges.
Though, with the increase in the Bitcoin value, the cryptocurrency has become as a feasible mechanism. The positive buildup encompasses the blockchain innovation that backs it up and may have a positive effect on the wallets and trading practices of standard financial specialists around the world.
In this article, you will have an insight on cryptocurrency and why it is considered as a workable option to more established forms of trade.
In conventional business transactions, agents, legal representatives and brokers may add substantial inconvenience and cost to have a clear transaction. There is paperwork, commissions, brokerage fees and some quantity of other particular conditions which might apply.
One of the upsides of Cryptocurrency transactions is they are balanced undertakings and occurs on shared systems networking framework. This results into a great amount of clarity in setting up assessment trails, less misunderstanding over who should pay to whom and better accountability. In that, two parties are included in a transaction and each knows their identity.
Transfer of Assets
The Blockchain cryptocurrency seems like great property rights database, which is used to implement and authorize two-party contracts on goods, such as automobiles or land. But, the blockchain cryptocurrency biological system may likewise be used to encourage expert methods of transfer.
For instance, Cryptocurrency contracts can be intended to include third-party consents, create a reference to outer evidence or be finished at a predefined time or date later on. As you are a Cryptocurrency holder and have restricted authority of your account, this reduces the cost and time included in making transfer of assets.
Transaction fees can make some substantial bit from your assets, particularly in the case when you are performing out a considerable measure of transactions in a month.
Transaction fees don’t apply because the data miners, which do calculations that creates Bitcoin and other cryptocurrencies get their pay from cryptocurrency network.
Some of the external expenses are included if you receive the services of third-party administration for maintaining your cryptocurrency wallet. However, another upside of cryptocurrency is that they are still liable to be significantly less than the transaction charges incurred by customary financial frameworks.
Great Accessibility to Credit
Internet and digital transfer of data are the media encouraging the trade in cryptocurrencies. So, these administrations are accessible to any individual who has certain knowledge of cryptocurrency network, a feasible data connection and prepared access to their significant portals and websites.
It has been assessed that there are currently billions of people all over the world who have access to mobile phones or Internet but do not have access to conventional frameworks of trade or banking. The cryptocurrency biological system holds the possibility to make transaction and transfer of asset procedure accessible to this huge market of willing shoppers when the required framework is set up.
Easier International Trade
As an unrecognized legal tender on a national level, cryptocurrencies are not subjected to trade rates, transaction charges, interest rates or other charges imposed by a particular nation. By making use of a shared instrument of blockchain technology, cross-border transactions and transfers might be conducted without confusions over currency trade fluctuations and so forth.
In the conventional banking system, you adequately turn stewardship of your assets over to an outsider that can practice the influence over your assets. Accounts might be closed down without any notice for intrusions because the account holder passes through many difficulties in the system.
Possibly, the best of all advantages of cryptocurrency is that till you have assigned administration of your wallet over to an outsider administration, you are the sole proprietor of the corresponding public and private encryption keys that make up your cryptocurrency identity or address.
When a cryptocurrency transfer gets approved, it can be turned around as on account of the ‘charge-back’ transactions permitted by credit card organizations. This is a fence against misinterpretation that requires a particular agreement to be made between a purchaser and seller with respect to discounts in case of a mistake or returns policy.
Strong encryption frameworks used all through the blockchain and cryptocurrency transaction procedures are a protection against fraud and account altering and assures consumer privacy.
Without a doubt, cryptocurrency is a concept which seems to further increase in the years to come.
Robert Bint is senior editor at Bitex.Global; which is pioneer in cryptocurrencytrading & exchan ge. He enjoys creating, uncovering a nd disseminating new and interestingperspectives in the cryptocurrency trading industry.
This article will attempt to explain what determines the price of Bitcoin and similar cryptocurrencies. It is understandable that there will be confusion as to the exact nature of Bitcoin, so let’s start with this first.
What is Bitcoin?
Bitcoin is the brainchild of an anonymous inventor in Japan, one Satoshi Nakamoto, whose idea has been to introduce a currency that will be free of all government control.
Mr Nakamoto, assuming he is a real person, and not a group of individuals, has been right to push for a libertarian money. However, he may have predicted the misplacing of cryptocurrencies for nefarious and illegal ends. The current conundrums that lie ahead of Bitcoin and all cryptocurrencies that shield the identity of their owners today are two.
First, without a way to trace transactions, criminals may roam freely the Internet, meaning regular citizens and crypto owners would be at risk.
Secondly, introducing more government control would result in surrendering of the core value of all cryptocurrencies – independence from the state.
What Determines the Price of Bitcoin?
It is difficult to pinpoint the main driver of Bitcoin’s value. Most recently, the price has plummeted, wiping off $60 billion worth of FIAT currency in its wake. Traded at $7,600 per single unit, Bitcoin is a brilliant example how over-indulgence of impossible-to-predict cryptocurrencies may have pernicious effects on the economy.
Some of the main drivers of the economy are the stability of FIAT money. They are justly ingrained in the financial system, and as such, it is difficult to cause shocks across the system without central bankers and regulators noticing first or warning us ahead. With cryptocurrencies, on the other hand, shocks are impossible to predict.
Regulators around the world have been acting quickly these days. The Internal Revenue Service (IRS) in the United States is the latest regulator to lead the way in regulatory measures. However, even the intervention of the IRS has not been reason enough for cryptocurrencies to sway in terms of their absolute value.
What Then Should We Do To Guess the Pricing?
Simply put, there is little individuals or bankers for this matter can do. Bitcoin prices sway freely and without any intervention from regulators or third parties. This creates excellent opportunities for people to buy when the prices are low and sell when they go up. However, nobody actually knows when and if the prices will go up.
Since it is not a recognized way of exchange, Bitcoin and other cryptocurrencies are cyclical and their value could and then again could not be swayed by introducing new regulation. Some experts like to think that these cyclical stages will repeat themselves until such a time that Bitcoin has either lost all of its value or has established itself at a certain level.
However, the downside of this theory is that unless an underpinning regulatory framework is introduced, then nobody could actually know how to invest and rely on this currency for their livelihood, and that is a problem.
Are you a money manager or a professional trader looking to perfect your automated trading system? Are you an individual, wanting financial control with today’s technological advantages? If so, this compact guide is going to help you develop smart algorithmic or algo trading strategies.
This culls professionals’ vast experience in this field. Before diving into comprehensive ideas, let’s discuss what algorithmic trading is.
Algorithmic aka Algo Trading is automated trading by computers. These computers are programmed to take certain actions according to fluctuating market data.
In it, people require using a computer program to follow a defined set of instructions. Or, they use the system to place a trade to generate profits at in fasters and more frequent speed, which is hardly possible with a human trader.
Believe it or not, the Algorithmic system (as the name suggests) uses advanced mathematical models named algorithms. These systems are used for making investment decisions in the financial world. The algorithm manages the quantity and order type as well as the entry and exit price with minimum human intervention.
Building a Trading System
If you want to build a trading system, you need to focus on some points such as background knowledge, market data, a trading platform and market access. It is advisable to learn basic market mechanics. It enables you to create profitable algorithmic trading strategies.
Implementing Algorithmic Trading Systems
If truth to be told, the algorithmic trading strategy, more often than not, is used by large investors – institutional investors. This comprises of pension, funds, and mutual funds. The reason is that they purchase a large of shares every day. These stocks and shares are divided into smaller blocks. And, they purchase them individually.
Then the complex algorithms determine an appropriate time for buying these smaller lots. An order is placed in a way that the purchase carries the least impact on the price of the stock and without increasing purchasing price. Thus, it leads to lower the market impact and heightens the profit margins for large investors.
Benefits of the Algorithmic Trading Systems
By choosing Algo Trading, you can read a lot of benefits. The fact that this innovative trading option uses electronic methods in the form of computer devices; it’s an advantageous position over traditional systems.
No doubt, you cannot expect 100% accurate prediction, still, when compared with manual trading, the automatic trading system offers you a higher level of accuracy. Since, it’s an electronic-based; you can work anytime from anywhere.
Good for Beginners
The algorithmic trading strategy is also a good opportunity for beginners. It boosts efficiency and increases their earning potential which is very beneficial for them. Although beginners lack in knowledge and skills, they are able to trade like professionals. They don’t need to have technical knowledge of operating the computer programs start trading.
Going ahead with other benefit is the speed at which beginners can make decisions. They can have updated market information in minutes, which help them to initiate orders many-a-times without the knowledge or intervention of human traders.
Before stepping into an algorithmic trading practice, it’s good to understand the type of fund you want to invest.
You should know that some funds concentrate on the money market, stocks, currency pairs, precious metal like silver, gold and other industrial materials.
Each fund comes with its own benefits and risks. You should take into consideration before entering into the automatic trading world. If you can take a huge risk, then you should go for funds that can carry high risk but high return. Do focus on getting the high return. On the contrary, if you want low risk, investing in precious metal is an ideal option.
If you have any question related to algorithmic trading practice, feel free to write in the comment box.
If you rely primarily upon technical analysis to make your trades, it is quite probable that trend analysis will be quite important to you. In short, trend analysis is the determination of the price movement for an asset, dependent upon the trend lines marked on a chart. There is a great deal of talk about trends which may have you wondering precisely how to spot a trend in binary options. Well, here are some tips on how you can identify a trend that may be emerging and how you can use this to your advantage:
Drawing the Trend Lines
Remember those trend lines that were mentioned? Well, they can essentially be divided into two types. There is the bearish line and the bullish line. The bearish line can be drawn between the two highest price points on a chart.
If the all of the candlesticks are present below this line, then trend is most likely to bearish – hence, moving up. On the other hand, the bullish trend can be determined by looking at the two lowest price points on the chart and drawing a connecting line. If the candlesticks remain below this line, the trend is bullish.
Once this is done, it is a matter of plotting the resistance and the support line to truly be able to determine the direction of the movement. The resistance line is representative of the highest points of the price points of your asset. Therefore, if the trend line is above this point, the trend is moving in an upwards direction. The support line, on the other hand, marks the lowest price points of an asset. If the trend line falls below the support line, the trend is said to be in a downwards position.
The Third ‘Trend’
Now, it is not actually considered as a trend by many traders. Therefore, it isn’t really taken into account in most instances. Nonetheless, you should be aware of it. This third trend can be identified by what takes in places between the price hikes or lows. These are periods of stagnation. There are typically depicted by flat lines which indicate that the price is neither moving up nor down.
Understanding the Importance of Reversals
As you well know, nothing lasts forever. This means that regardless of whether the value of an asset is rising or dropping, it is not going to last. At some point, the trend is going to change direction. This is known as a trend reversal – the point at which one trend expires and another begins. Now, it is vital that you identify the initial trend. After all, this is how you know when to enter a trade. At the same time, you should also know when trend reversal is about to take place. This will provide you with the information that you need to determine when your trade expires. Remember, when the trend no longer exists, the conditions of your trade become false. This is why you need to get ahead of it.
One way that you can do this is look at the highs and lows of each trend. For instance, let’s consider an upward trend. If this trend doesn’t result in a new high, this may be a good indicator that a reversal is about to take place. It is important to understand that this doesn’t actually signify the end of a trend. However, it could hint at events that may be coming.
These are some of the things that you should be aware of with how to spot a trend in binary options. You should always establish that a trend has, in fact, been identified before you place a trade.
What’s stopping you from investing in the stock market?
Despite the evidence of some fairly sizable ‘push factors’ – namely super-low interest rates crippling the benefits to be had from savings accounts and a series of measures making it tougher to accrue an income as a buy to let landlord – many of us fear taking the plunge and putting our money in the hands of the markets.
In some respects, this appears to be a generational issue. The ‘baby boomers’ have been well-versed in making their money go further through stocks and shares but millennials have not.
That was certainly the finding of an American study carried out by Bankrate.com.
It discovered that only 26 per cent of under-30s are investing in stocks – compared to 58 per cent of people aged between 50 and 64.
While a lack of money was a problem – 38 per cent of 18-30s felt that they didn’t know enough about the market, the highest proportion of all categories asked. In a separate study, reported by USA Today, only nine per cent of millennials would describe themselves as ‘investors’. It’s likely that the recession – sparked by the banking crisis – is fresh in the minds of these nervous investors as it has had a significant impact on their adult life.
A lack of knowledge – and a more cautious mindset – are important factors, therefore.Yet as fed up millennials search for ways to make their money go further, what might help them to feel more confident about the potential in the market?
Here’s some food for thought:
Step 1: You don’t have to risk thousands
Ok, so young people don’t feel like they have big pots of cash to invest. But it’s important to realise that you can still get a decent return from a relatively modest sum.
As The Guardian notes, as little as £50 a month can be invested in unit trusts. It quoted Justin Modray at Candid Money, who advised:
“Look for a fund that spreads your money across a blend of shares, corporate bonds, commercial property and commodities to reduce risk.”
The article also demonstrates how investing £100 a month in a FTSE 100 tracker that returned 5% a year after inflation, would deliver about £88,000 after 30 years, or £152,000 after 40 years. Seeing the large potential reward to be had from putting money into the markets (while still appreciating the risk) is important to win over those who have not yet taken the plunge.
Step 2: Learn the lingo
Don’t know your futures from your forex? Sometimes it can feel like the market speaks a different language to the rest of us – and this might be why so many millennials feel in the dark. This is where sites such as Investopedia can come in incredibly handy – with handy definitions and descriptions of all the key terms you’ll come across. Many of these are easier to understand than they sound.
Step 3: Try before you buy
Would a trial run make you feel more confident? Providers such as IG offer you the chance to run a demo trading account, practicing trading CFDs and spread betting with virtual funds. You’ll see the same charts and data as you would when you’ve put real money into the market – but will get a chance to see what would happen without the risk of losing a penny.
This experience, a greater knowledge of the terminology and an appreciation that relatively small amounts can deliver a decent return should help those who harbor a fear of trading, especially among a younger generation that is reticent to dip its toe into the market.
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.
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