Beginners Guide To Crypto Trading | Crypto Currency Tips

Bitcoin

Taproot Upgrade: Everything You Should Know

In the past four years, Bitcoin hasn’t implemented any upgrade until now. The latest upgrade on the Bitcoin network is Taproot. The main aim of implementing Taproot is to streamline the transactions making them more efficient and cost-effective. In this blog, we will give you a brief overview of Taproot and the effect it will have on Bitcoin transactions now and in the future. Taproot Upgrade: What does it do? You might already know that bitcoin transactions require signatures that need to be verified to complete the process. Some bitcoin transactions require a single signature whereas some need multiple signatures. Verifying each signature takes a lot of time to process along with a lot of energy. This increases the costs and reduces the speed of processing transactions. However, the latest Taproot upgrade implements signature aggregation. Signature aggregation in Taproot combines the transactions that need multiple signatures for verification. Moreover, the upgrade also combines multiple signatures and single signatures transactions. Since the signatures are combined and can’t be differentiated, it enhances the privacy of transactions. Taproot Upgrade: How Does Signature Aggregation Works? The latest Taproot upgrade uses Schnorr signatures in addition to the Bitcoin’s Elliptic Curve Digital Signature Algorithm (ECDSA). With this, users can not only generate private keys for verifying transactions, but they can also aggregate the multiple signatures saving a lot of time. Linearity is one of the key concepts of Schnorr signatures. This allows the verification of Bitcoin transactions in batches rather than one transaction at a time. Taproot Upgrade: What Are The Benefits of Implementation? As mentioned above, Taproot upgrade combines multiple transactions and signatures for easy and quick verification. This increases the number of bitcoin transactions that can be processed at a time thus reducing the overall costs. Taproot upgrade also processes the bitcoin transactions that have occurred at Layer 2 channels. This also makes the bitcoin network more efficient. The upgrade also enhances the overall privacy of bitcoin transactions. Since signatures are aggregated and can’t be differentiated, it is difficult to identify the participants of the transaction. The upgrade also greatly benefits the smart contracts feature of bitcoin. Earlier, the smart contract feature of the bitcoin network wasn’t used to its full potential due to the inability to scale transactions. However, with the taproot upgrade, this problem is solved. This also creates a possibility for Bitcoin to be used as Decentralized Finance (DeFi). Taproot Upgrade: How Does It Affect Bitcoin As A Cryptocurrency? Since taproot enhances the speed of transaction processing, it makes Bitcoin as a highly viable currency to be used in the future. Also, as a greater number of transactions are processed, bitcoin’s worth will increase consequently. Also, if bitcoin reaches its maximum value of 21 million coins, taproot will generate more transaction fees due to faster transactions. This will be the bulk revenue for miners. Final Takeaway The latest Taproot implementation drastically changes the way bitcoin transactions are processed. And it will yield far better results for bitcoin and its users in the future. For more information on cryptocurrency, insights, latest news, keep reading Coin Informer.

Benefit of Bitcoin Mining?

Bitcoin Mining: Frequently Asked Questions Answered!

Bitcoin Mining: The 2008 recession saw people struggling to make their ends meet. But this recession also saw the emergence of digital currency, namely, bitcoin! Developed by an unknown creator called Satoshi Nakamoto, Bitcoin was first released in 2009. The main aim was to decentralize the transactions and give people more power rather than central banks. And since then, bitcoin kept gaining popularity and now has a market capitalization of $800 billion. However, there are several things that most people don’t know or are confused about. One of the concepts that beginner investors struggle to understand is Bitcoin-mining. Hence, in this blog post, let’s answer a few frequently asked questions regarding bitcoins mining. Bitcoin Mining: What Is It? In simpler terms, bitcoin mining can be defined as the process to earn bitcoins in a digital wallet. To earn bitcoins, miners need to solve a mathematical puzzle. These puzzles are solved using large computer systems with large computing powers. Earlier, bitcoin mining was done using regular desktops with central processing units (CPUs). However, due to the larger volume, bitcoins mining is done using large mining pools. What Is The Benefit of Bitcoin Mining? As mentioned above, bitcoin mining helps miners earn bitcoins. Apart from this, bitcoin mining also records transactions on the blockchain. This makes the transactions more trustworthy. Are There Any Costs Involved With Bitcoins Mining? Yes, there are some costs associated with bitcoins mining. The three larger costs associated with bitcoin include: Electricity: To run systems with large computing systems, miners will need electrical input. Hence, major costs come from electricity consumption. Network Infrastructure: To mine bitcoins, you constantly need an active Internet connection with minimal latency. Mining Infrastructure: To mine bitcoins, you will need computer systems with higher computing power. Regular desktops are not a great fit. What miners need areApplication-specific integrated chip (ASIC) systems. These systems are highly specialized and thus cost a minimum of $4,000 and range up to $12,000. This will add to the overall costs of bitcoins-mining. Bitcoin Mining: Should You Do It? As mentioned above, there are huge costs associated with bitcoins-mining. So, taking it up just as a hobby might not be a good idea. Also, there is no guarantee that you will always generate bitcoin. If you can’t solve the puzzle, you can’t generate bitcoin. This can drain your monetary resources over time with no guaranteed results. However, if you have unlimited wealth (which is highly unlikely), you can go for bitcoins-mining. Is Bitcoin Mining Environmentally Friendly? As mentioned above, Bitcoins mining requires a lot of electricity. This means huge consumption of electricity made from non-renewable resources. Hence, bitcoin-mining is currently not so environmentally friendly. The energy consumption of bitcoin-mining can be compared to the energy used by entire countries. Bottom Line Bitcoins mining is an expensive task. If you want to become a miner, you need to have enough funds and time on your hands. Also, the brains and expertise to solve mathematical puzzles to earn bitcoins. For more frequently asked questions answered, keep reading Coin Informer!

Automated Trading

What is Automated Trading Software, And Why Has it Become So Popular?

Automated trading systems are taking over financial markets. A study found that they account for substantial trade volumes, especially in the commodities and futures market. Thus, they are increasingly being embraced by traders. The reasons that traders give for their widespread use include the convenience and accessibility that they offer. What Is an Automated Trading System? Automated trading systems — also referred to as mechanical trading systems, algorithmic trading, automated trading, or system trading — allow traders to establish specific rules for both trade entries and exits that, once programmed, can be automatically executed via a computer. Various platforms report 70% to 80% or more of shares traded on U.S. stock exchanges to come from automatic trading systems. Traders and investors can turn precise entry, exit, and money management rules into automated trading systems that allow computers to execute and monitor the trades. One of the biggest attractions of strategy automation is that it can take some of the emotion out of trading (which is a good thing) since trades are automatically placed once certain criteria are met. Automated trading systems typically require the use of software linked to a direct access broker, and any specific rules must be written in that platform’s proprietary language. Three very important aspects of automated trading have contributed to its explosion in popularity: It removes human fallibility in trading by automating trade according to specific indicators or conditions. It allows access to a variety of markets simultaneously. It allows anyone to engage in trading, provided they have access to both a computer and good internet. Advantages of Automated Systems There is a long list of advantages of using automated trading systems – including: They Reduce Emotional Trading As earlier mentioned, humans are susceptible to emotions that can cloud judgment when making trades. A trader may hesitate, pull back, or get influenced to trade in an unyielding way. Automated trading systems minimize such emotional trades by executing trades instantly after the rules have been set. Once the computer executes, the action cannot be undone. This capability is beneficial to traders who are afraid to make trading moves. It is also beneficial to those who tend to overtrade. Many Cryptocurrencies traders are using automated trading platforms because they find it challenging to maintain their emotions in that aggressive market. They Preserve Trading Discipline Automated trading systems work under set rules, and they execute trades automatically. This in itself brings an aspect of discipline in market trading. It maintains discipline even in volatile markets. Automated Trading System Increases the Speed of Order Entries Automated systems are quite swift in generating orders. It takes seconds for one to get in or out of a trade. The response to dynamic market conditions is also swift, influencing positive outcomes for traders. Trade Diversification Automated trading systems can be used in diversifying trades. Traders can trade with multiple accounts or multiple strategies at the same time. The result is a diversified trade that has risks that are spread over various instruments. Humans are unable to execute such diversified trades swiftly. They may take a lot of time to do so. However, computers can identify opportunities across broad markets in just a matter of seconds. Who should use an automated trading system? It doesn’t matter if you are a skilled or a new trader. Automated trading systems are for everyone. Skilled traders will take advantage of the features of the automated system and set up a large number of trades quickly, generating more profit. Many experienced traders are using automated trading platforms for trading Cryptocurrencies because of the potential to gain massive amounts quickly without involving emotion that could cause losses. Beginners will enjoy the opportunity to trade smartly without years of knowledge and experience in traditional trading methods. Of course, the automated system will prevent them from trading out emotions which is the cause of the loss of 90% of beginners. Most of the trading platforms are providing a personal account manager like ETHEREUM CODE, which is a huge benefit for beginners – We mentioned what other platforms are providing this service in the reviews by the end of the article. Frequently Asked Questions Is an Automated Trading System the Right Choice For Me? Automated trading might be the right option for you if you’re looking for a technique that helps you trade according to predefined parameters. This can be especially helpful when trying to avoid emotional trading. Automated trading is a good solution for someone who wants a low-maintenance trading strategy that relies on advanced technology. I Want To Start, How Do I Choose The Right Platform to Start With? Here’s the high-ranked automated trading software of Coin-Informer reviews section. Are you ready to start generating profits from an automated trading system? – Reading the full review might help you decide which platform will fit your needs. Read The Full Reviews: 1. QuantumAI – Best Overall, Multi-Award Platform, Rated 4.4 / 5 2. Immediate Edge – User Friendly, Rated 3.9 / 5 2. ETHEREUM CODE – Active Personal Account Manager, Rated 3.5 / 5 3. Crypto Hopper – Fast Transactions Between Exchanges, Rated 3.2 / 5

Bitcoin

What Factors Affect the Price of Bitcoin?

Price of Bitcoin: Bitcoin is one of the most popular cryptocurrencies in the market. The coin was released in 2009 by an unknown creator named Satoshi Nakamoto. Since then, the currency has gained more attention from new and pro investors alike. However, the major question that most investors have is how much does 1 bitcoin cost? Or rather what are the factors that determine the cost of 1 bitcoin? Now, this is a fair question to ask considering bitcoin is not a fiat currency and hence is not regulated by the central bank. So, the cost will have major fluctuations. But what causes these fluctuations in bitcoin costs? Let’s find out. Supply Just like any other product, the reduced supply of coins will definitely increase its prices. With bitcoin designed to be released at a fixed rate eventually slowing down over time has definitely affected its prices. If you observe the trends, bitcoin release has slowed down from 6.9% in 2016 to just 4% in 2018. This is the result of bitcoin halving which means there isa lesser number of coins circulating in the market thus increasing its prices over time. Demand The high demand for any coin will certainly drive its prices. And such is the case with bitcoin! Since its release, the cryptocurrency has gained massive momentum. Although the currency is yet to find its way into replacing fiat currency (which we highly doubt will ever happen!), it has gained attention in a situation where the regular currency has been devalued such as Venezuela. Or bitcoin has gained attention from criminals who make bigger transactions. Also, with a lot of media attention, the demand has increased exponentially. So, a combination of high demand and lower supply has given a huge bump to the prices of bitcoin. Production Costs Bitcoin costs are heavily determined by the production costs. The costs are affected by direct costs incurred by infrastructure and electricity for cryptocurrency mining. Along with direct costs, there are indirect costs that are incurred due to the complexity of the bitcoin algorithm. The more complex the algorithm is, the more time miners will need to crack to code and acquire new coins. This will increase the overall consumption of electricity and miner will need to invest in complex systems. This overall process of cracking the algorithm will increase or decrease bitcoin production thus affecting its costs. Competition Yes, bitcoin is amongst the most popular coins in the market. However, there has been a massive release of new coins that are competing for attention. And some have been successful in effectively affecting the market capitalization of bitcoin. For example, Ethereum blockchain’s token Ether (ETH) has given tough competition to bitcoin. Ethereum blockchain is set to revolutionize the way financial institutions work. Hence, investors are giving the coin immense attention. This has affected the costs of bitcoin. Other coins including Ripple XRP, Cardano ADA, and more have also gained attention from investors. This tough competition from other coins combined with production costs, supply, and demand has increased the price of bitcoin over time. Regulation of Bitcoin The cryptocurrency market is highly unregulated and so is bitcoin. This lack of regulation has invited criminal elements to use bitcoin as a currency of illegal transactions. Hence, several investors are still skeptical of investing in bitcoin making the market more volatile. However, if more governments make bitcoin legal and include it in their daily transactions, it will bring more stability to the market. Investors will invest in bitcoin and affect its overall supply and demand thus affecting its costs. News Development The latest news regarding the market will have a major impact on bitcoin prices. This will especially include news related to the regulation of cryptocurrency. Apart from this, airdrops and hard forks can also affect bitcoin and investors’ drive to invest in cryptocurrency. Both these factors and more news can increase the price of bitcoin over time. Final Takeaway So, what is the price of 1 bitcoin? Well, the answer is not so simple! With several factors affecting the price of bitcoin, it can rapidly increase or decrease thus making the market more volatile. To know more about cryptocurrency, guide, insights, and news, keep reading Coin Informer!

buy Ether

Buy Ethereum Successfully Using These Five Steps

Ethereum: Ether, the native token currency of the Ethereum Blockchain Network is the second most popular cryptocurrency in the market. Currently, the market capitalization value of Ether is $380 billion just after bitcoin at $800 billion. Hence, most investors see immense potential in investing in Ether (ETH). Although the cryptocurrency market shrank in 2018 and 2019, it has gained momentum again in 2021. And even in January 2022, the market is seeing a rise in values and the number of investors. However, if you are a beginner, you might be wondering how you can buy Ether on Ethereum Blockchain Network. Hence, here is a simple guide for you that will help you to invest in Ether. Tip: Although we advise you to keep reading more about the cryptocurrency market, different coins, and strategies to get a proper idea of how to successfully keep investing in this market. Here are five steps that you can follow to buy Ether (ETH). Find a High-Quality And Secure Trading Platform Just like stock market trading, you will need a trading platform that is exclusively dedicated to cryptocurrency trading. And the one that offers Ethereum. Now since it is the second most traded cryptocurrency, most cryptocurrency trading platforms offer Ethereum. Some of the leading trading platforms for cryptocurrency are Coinbase, Binance, Bitstamp, Kraken, Gemini, and Bitfinex. There is one major thing that you need to consider when choosing a trading platform. Does it trade using fiat exchanges or cryptocurrency to cryptocurrency exchanges (C2C)? Both types of trading platforms can be used by traders based on the requirement. If you are planning on investing only in Ethereum, you can easily do so using fiat exchanges. But if you want to invest in multiple currencies, using a C2C platform will be the best bet. Also, you must consider factors such as license of the platform, secure exchanges and trading features, headquarters of the platform to determine whether it is a legit trading platform. This is important to avoid fraud. Create an account Once you have confidently chosen a trading platform, you need to create an account. Just like any trading account, you need to provide certain information to open a cryptocurrency trading account. This information includes name, address, social security number, and certain important identification documents. Since you will be providing personal information, you need to be the utmost sure of the trading platform you are choosing to avoid identity theft. Once you have provided all the information, the platform will carry out verification. This will either take one hour or a day or two. This will depend on the type of trading platform you choose. Once your account is verified, you can start trading. Deposit currency Now you have an active trading account, you need to deposit currency. For fiat exchanges, you can directly transfer funds through your bank account or debit cards. However, for C2C exchanges, you need to transfer deposits using codes. This code transfer will take longer than your usual instant transfers. Start trading Now you have an active account, money deposited in the account, you are all set to start trading. You can now start buying cryptocurrencies. Be ready to provide commands that confirm your transactions and process your trade. This will take time depending on the platform you use. Also, the trading interface of each cryptocurrency trading platform is different. So, practice a little to get a feel of the interface to trade in larger amounts in the future. Withdraw ETH Once you have bought ETH, you can withdraw it into your bank account or wallet. Again, on fiat exchanges, it is easier to withdraw ETH to your bank account. However, for C2C platforms, you need to send codes that will take some time to process. Final Takeaway With these five steps, you can successfully buy Ethereum and start trading in the cryptocurrency market. Since the cryptocurrency market is evolving with new technologies, we suggest you should keep reading about any changes and updates in the market. This will help you make wise investments and earn profit. You can keep following us at Coin Informer to get more insights into this market.

Bitcoin Gemini

Bitcoin Gemini: Is It Worth It?

Bitcoin Gemini: What Is It? Bitcoin Gemini: Are you a new trader who has just started to invest in cryptocurrency? However, due to your full-time jobs and other obligations, it gets tricky for you to monitor the cryptocurrency market and your investment. Also, as a new trader, you are not an expert in the market and want someone to take care of your investment on your behalf. If you are in such a predicament, Bitcoin Gemini might be a great choice for you. This is an excellent automated trading tool that assists new traders like you in handling cryptocurrency investment. The tool will monitor your cryptocurrency investment on your behalf and will tell you the best trading opportunities. Moreover, it will execute the trade on your behalf too. Bitcoin Gemini is a fully automated trading tool with an 85% success rate. Not bad, we think! All you need is 20 minutes out of your busy schedule to set up the account and the rest will be taken care of by Bitcoin Gemini. In this review, let’s take a look at things that make Bitcoin Gemini one of our favorite trading tools. Bitcoin Gemini: Technical Features As mentioned above, Bitcoin Gemini is an AI trading tool with an 85% success rate. The account setup and verification are free and take place in 20 minutes. This allows you to immediately start trading in the market. The software tool requires a minimum of €250 as a deposit to start trading. The software takes less than 1ms to execute the selected trade. This allows you to quickly act on suitable trading opportunities and earn profits. Moreover, the withdrawal window for cashing out your profits is 24 hours. Bitcoin Gemini is regulated by CySEC (Liquidity) and provides anAES 256-bit data encryption ensuring the safety of your personal and trading data. Bitcoin Gemini: Account Features Doesn’t require a trading fee: Bitcoin Gemini doesn’t need any trading fees. You also don’t need to worry about your trading license expiring. Account registration is completely free. Easy to navigate: If you don’t have any prior trading knowledge, don’t worry! With Bitcoin Gemini, you don’t need expert knowledge to use the software. You can easily understand the user interface and navigate efficiently. Low commission: The trading software charges extremely low commission fees viz. 0.01%. This fee is required to pay your brokers who can run your account effectively. Access anywhere with 24-hour customer support: Since it is an online automated tool, you can access it anywhere anytime. All you need is an active Internet connection. Moreover, the tool also offers 24-hour customer support. So, if you run into problems with your trading account, you can connect with them to get assistance. Numerous payment methods: To effectively trade in the cryptocurrency market, you will need some capital. You can use multiple payment methods to deposit money in your trading account. You can use your credit and debit cards or direct bank transfers. Trading leverage: You can get a 5000x leverage with Bitcoin Gemini. You can borrow funds from your broker and pay them later. Before you make use of the leverage, get to know the risks involved. Trade multiple cryptocurrency pairs: With Bitcoin Gemini, you are not just limited to trading Bitcoin. Instead, you can trade numerous cryptocurrencies such as Ethereum, Dash, and exotic pairs such as GBP/PLN, USD/NOK, and more. Expert Trading Advice Always start with a minimum deposit Bitcoin Gemini requires a minimum deposit of €250. You should start trading using this minimum deposit only. You don’t need to invest a large amount especially if you are a new trader. You can always use your profits to reinvest. Listen to your broker CySEC licensed brokers are part of the Bitcoin Gemini team. They will give you accurate advice for effective trading. We suggest you listen to the trading advice especially if you are a new trader. Keep tabs on your trading account Since Bitcoin Gemini is an automated trading tool, you might think of leaving everything on the AI tool. However, it is suggested that you keep tabs on your trading account. Spend at least 20 mins everyday to check the activity of your trading account. Take out your profits It is advised that you take out your profits to ensure that you understand the difference between capital and profit generated by the software. You can always reinvest your profits. Maintain account statement Once you start making profits, your income will increase. You might have to start paying taxes. Hence maintaining your account statement will be beneficial. Take your time Understanding Bitcoin Gemini and trading efficiently will take some time. Hence, give yourself some time to understand the intricacies before you start earning massive profits. Taking your time in the initial stages will help you in the long run. Bitcoin Gemini: How to Register? As mentioned above, registering on Bitcoin Gemini takes only 20 minutes. Here’s how you can register on this platform. Register with basic information: You need to provide basic information for creating your account. This will include your name, email address, and contact information. After you have registered and verified, you will get a licensed CySEC broker assigned to you. Give minimum deposit: You need to provide a minimum deposit of €250. This deposit can be used for initial trading. Practice or trade in real-time: You can use the demo account to practice or start trading in real-time. Final Word If you are asking if Bitcoin Gemini is worth it? Our answer is YES! Amongst numerous AI trading tools, Bitcoin Gemini is a great start for new traders. Check it out now! And for more information and such reviews, keep reading on Coin Informer!

blockchain technology

How Ethereum Blockchain Can Transform the Future of Financial Institutions?

If you are active on social media, listen to the latest news or chat with your colleagues, you might have already heard about cryptocurrency and how it is based on blockchain technology. Blockchain technology which sounds like something from a futuristic sci-fi movie is very much real and is gaining massive attention from businesses around the world. And for the right reasons! This technology shows massive potential in the financial industry for functions such as settlements, cross-border payments, organizing back-office processes, and so much more. But these changes haven’t yet disrupted the financial sector. The application is quite slow. However, with Ethereum blockchain gaining speed and attention, these changes can be implemented more quickly and efficiently. This will certainly have long-term effects on how financial institutions work and carry out their crucial business functions. Before we take a look at how Ethereum will bring massive and powerful change in the fintech business functions, let’s take a quick overview of the Ethereum blockchain. Ethereum Blockchain: A Quick Overview So, the first question that many people ask is “Why was Ethereum Developed?” Ethereum blockchain was initially developed to diversify the use of Bitcoin. However, it has evolved prominently for implementing ‘smart contracts’. VitalikButerin first proposed Ethereum blockchain in 2013 which eventually went live in 2015 with its beta version. The native token of the Ethereum blockchain is Ether which has a market capitalization of $25 billion. This is just behind Bitcoin and hence it is the next most popular cryptocurrency in the market. Ethereum can be used to trade anything without needing any third-party approval. Using smart contracts via Ethereum reduces the need for a legal system, judge, or court. Ethereum Virtual Machine (EVM) will not only execute smart contracts but can also be used to bet or execute wagers, coupon-paying bonds, employment contracts, purchase high-value items using Ethereum as escrow, and more. The potential of EVM is certainly high and powerful. However, it is still in its beginning! Several things need to be developed to make it accessible to everyone. Currently, smart contracts are highly expensive but to make them affordable, massive technological development needs to be achieved in the Ethereum blockchain technology. Ethereum Will Give Rise to Decentralized Autonomous Organizations (DAOs) The execution of DAOs using smart contracts will become a real-time possibility using Ethereum blockchain technology. These decentralized organizations will have business functions similar to any other regular corporation, however, without much human intervention. Most corporations are just a huge network of contracts and obligations. This complex network can be converted into DAOs using Ethereum. Ethereum and Decentralized Applications (Dapps): Already a reality! Ethereum and Dapps are already a reality! Although DAOs are still a thing of the future, Dapps have already come into existence. These are standalone applications such as payment gateways, gambling applications, P2P marketplaces, and more. The implementation of the Ethereum blockchain will eventually extend to day-to-day applications such as chat, shopping, gaming, and banking. Final Takeaway Although Ethereum blockchain was developed to support and enhance the functions of bitcoin, it has found its niche in smart contracts. The blockchain shows immense potential to completely transform how financial institutions execute business functions. Keep reading more about cryptocurrency technology with us at Coin Informer!

Benefit of Bitcoin Mining?

Will Bitcoin Ever Reach its Maximum Supply Value of 21 million?

Bitcoin is one of the most popular and the first cryptocurrencies to be released in the market for trading. Since its release in 2009, this cryptocurrency coin has performed really well, and most traders prefer buying and selling Bitcoin to earn profits. But there’s a major catch with Bitcoin and its potential to be the only currency in long-term trading. Bitcoin is designed to be digital gold that has similar properties to physical gold. This means that the maximum supply of bitcoin is limited to a finite number of coins. The maximum number of bitcoins that will be released and mined is 21 million coins. Every 10 minutes a new block is created to release new coins. However, at about four years after 210,000 blocks,the number of coins that can be minted is reduced by half. So, what does it mean for bitcoin as a long-term trading cryptocurrency coin? What will happen once bitcoin reaches its maximum supply value of 21 million? Let’s find out! Will Bitcoin Ever Reach its Maximum Supply Value of 21 million? The short answer is NO! Bitcoin will never reach its maximum supply value of 21 million. Here’s why! Bit-shift operators are a special type of arithmetic operator that is used by the Bitcoin network to calculate its value. These bit-shift operators usually round off the decimal value to its nearest smallest integer. But when does this happen? This happens when the value of a bitcoin block is divided in half. This gives rise to a new reward with decimal values that are expressed in Satoshi. Now Satoshi is the smallest unit to measure bitcoin and can’t be divided in half. Hence, bit-shift operators will round the decimal value to the nearest whole integer. This system of rounding off Satoshi values during new blockchain reward generation is the reason why Bitcoin will never reach its maximum supply value of 21 million. Due to this system, it is unlikely that the last bitcoin will be released before the year 2140! However, it will be interesting to know what will happen if bitcoin reaches the maximum supply value of 21 million. What Happens If Bitcoin Reaches Maximum Supply Value of 21 million? If bitcoin reaches 21 million which is highly unlikely, no new bitcoins will be released in the market for mining. The transaction will still be processed but any trader/miner will gain profits only from transaction fees. If in 2140, there are several bitcoin transactions, miners will be able to get profits from transaction processing fees. However, if bitcoin serves as storage of value, miners will still be able to get some profits but with lower transaction processing fees. However, some negative outcomes can be anticipated if bitcoin mining rewards are not so profitable. Selfish Mining: In this situation, a group of miners will keep valid blocks in hiding and release them as orphan blocks. In such a case, there will be an increase in block processing times and high fees will be required to be paid when these blocks are released in the market. Miner Cartels: Yes, miner cartels are very much a possibility if bitcoin reaches a maximum supply value of 21 million. A group of miners will try to control the mining resources and demand high transaction processing fees. Final Takeaway Bitcoin’s market is continuously evolving. It is highly unlikely for bitcoin to reach its maximum supply value. However, if it does, bitcoin traders will experience some negative impact. Now, what happens in the future remains to be seen. The truth is that you can keep investing in bitcoin for the near future without worrying too much! Keep reading more news and insights on the cryptocurrency market at Coin Informer!

crypto market

Self-Regulation of Cryptocurrency Exchange: Will It Work?

Cryptocurrency Exchange: The cryptocurrency market is highly volatile. Investors have always been too skeptical of investing in this market considering risks. And to top off the trading risks, there are high risks of hacks and scandals associated with crypto currency exchanges. These factors have kept several investors from trading in this market. Moreover, governments are still figuring out a way to regulate crypto currency exchanges to make trading a bit secure. However, there is still a long road to go for the government before we get crypto currency exchange regulations. So, what can exchanges do to ensure that trading in this exciting, yet volatile market becomes a tad bit secure? The answer is simple. Self-Regulation of crypto-currency Exchange. Self-Regulation: What is it? Now, let’s just get one thing straight, self-regulation is not a new concept. There have been several instances where self-regulation has worked and shown growth in the respective market sector. For example, commodities trading is self-regulated by the National Futures Association (NFA). Similarly, for the cryptocurrency market, self-regulation can include different aspects such as code of conduct, guidelines, industry organizations that will guide the market participants for secure trading. Self-Regulation can be based on different ways such as KYC (know your customers), security against hacks, or maintaining transparency. Apart from the set self-regulation guidelines by the International Organization of Securities Commissions, crypto-currency exchanges can also be regulated by independent market associations similar to NFA. Will Self-Regulation Work in the Cryptocurrency Market? The biggest question is whether self-regulation works in the cryptocurrency market. Will it help to regulate the operations in this highly volatile market? The answer is YES! There are several examples where self-regulation of the cryptocurrency market has helped traders trust investing and trading cryptocurrency. The Coincheck hack in 2021in Japan is a prime example of how self-regulation can help maintain the security of this market. The hack resulted in crypto currency exchanges enhancing their security checks. In fact, Coincheck went a step further by giving their customers partial refunds. This was done in association with the Japanese government and market associations. Another example of self-regulation for crypto currency exchanges came when the South Korean government announced overheated trading. This prompted crypto-currency exchanges to implement self-regulation strategies that will protect the interests of investors, their assets, and provide greater transparency. So, yes, the self-regulation of crypto exchanges can work. Have countries already implemented the self-regulation of crypto exchanges? Although there is a still long road ahead, some countries are implementing the self-regulation of cryptocurrency. Japan has implemented self-regulation with the Japanese Blockchain Association which has more than 100 members. Amongst these 35 are cryptocurrency exchanges. South Korea blockchain association also has 25 members with similar goals. India has established the Blockchain and Cryptocurrency Committee (BACC) with 7 crypto exchanges as part of the association to regulate the market and create a code of conduct. CryptoUK is another self-regulatory committee in the United Kingdom formed by seven cryptocurrency exchanges. The USA is still in the phase of proposing a self-regulatory body. However, Gemini developers have proposed the establishment of the Virtual Commodity Association (VCA) as self-regulatory for crypto exchanges. Final Takeaway Governments are still far away from establishing any regulatory commission for the cryptocurrency market. Until then, self-regulation offers a great way to make this market secure and protect the interests of investors. Want to keep reading about the cryptocurrency market, news, guides, educational content, and more? Keep checking our blogs at Coin Informer!

Best Coin To Invest In Crypto

Five Popular Ways to Invest in Cryptocurrency

Invest in Crypto: Cryptocurrency is a buzzword that was constantly heard on social media, mainstream media, and personal discussions all-around 2021. Thanks to global personalities like Elon Musk who kept tweeting about the cryptocurrency market and influencing the trends. But cryptocurrency is more than just a buzzword. It is an amazing opportunity that investors can avail themselves of to diversify their investment portfolio. But how do you invest in cryptocurrency? What are the best ways to invest in cryptocurrency? Let’s find out. Five Popular Ways to Invest in Crypto Currency An investor can buy more than one cryptocurrency coin. They can buy or sell cryptocurrency coins based on the trading strategies and opportunities. Here are five popular ways to invest in cryptocurrency. Buy Cryptocurrency Directly This is one of the most common and easiest ways to invest in cryptocurrency. You can buy more than one cryptocurrency. You can choose from more than 100s of cryptocurrencies such as bitcoin and Ethereum (popular ones) to unknown cryptocurrencies released during Initial Coin Offerings (ICOs). Cryptocurrency-Focused Funds If you don’t want to buy individual cryptocurrencies, you can always choose from different cryptocurrency-focused funds for investment. You can choose from ETFs (future funds or index funds) or investment trusts that are cryptocurrency-focused. When you invest in cryptocurrency-focused funds, your investment will either go into individual cryptocurrency coins directly or in derivative securities or cryptocurrency companies. Cryptocurrency Companies If you directly want to invest in cryptocurrency companies, you can do so quite easily. Several companies have a partial or total focus on cryptocurrency. For example, PayPal Holdings, Inc., cryptocurrency mining and hardware maker companies, and more. Become a Crypto Validator or Miner If you want easy access to cryptocurrency investment, you can become a crypto validator or miner. When you mine or validate a cryptocurrency, you will be paid in crypto coins. Now, you can either hold these crypto coins as investments or use them to buy other high-profit coins from the market. Cryptocurrency IRA When you want to get the tax benefits and secure storage of your cryptocurrency, you can invest in a cryptocurrency IRA (individual retirement account). Investing through a cryptocurrency IRA provider gives you the benefit of secure investment. Final Takeaway These are the five most popular ways to invest in cryptocurrency. Although the market is highly volatile and price fluctuations are high, investors are highly attracted to the market. If you have been thinking of investing in cryptocurrency, now is the time! The market is hot and you will certainly get profits in the long run. For more insights, information, guides, news, and strategies of cryptocurrency, keep reading Coin Informer!

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