FAQ

The Frequently Asked Questions

What are crypto-currencies?

Crypto currency is a kind of digital currency, the creation and control of which is based on cryptographic methods. Elements of cryptography (digital signature based on a public key system, sequential hashing) are used to ensure the authenticity of the chain of transaction blocks.

The key feature of the crypto currency is the absence of any internal or external administrator. Therefore, banks, tax, judicial and other public or private bodies can not influence the transactions of any participants in the payment system. The transfer of crypto-currency is irreversible – no one can cancel, block, challenge or force (without a private key) to make a transaction. However, participants in a transaction may voluntarily temporarily block their crypto-loans as collateral or establish that the consent of all (or arbitrary additional) parties is required to complete / cancel the transaction.

For the emergence of crypto currency, there are several fundamental prerequisites:

  • First of all, they appeared in response to the lack of flexibility of the official system.
  • There was a desire to make purchases on convenient terms: lack of control of transactions by the bank, the tax service or other supervisory bodies.
  • Crypto currency is more resistant to inflationary fluctuations.
  • Commission for transactions between countries is significantly less than in bank transfers.

Depending on the country, crypto currencies are regarded as a payment instrument, a specific product, may have restrictions on turnover (for example, prohibition of transactions with them for banking institutions). As of January 2018, the crypto currency is accepted and used as a means of payment in Japan, Australia, the Netherlands, South Korea, Estonia, the United States, Denmark, Sweden, Canada and the United Kingdom.

Where is it safe to store bitcoin and other crypto currency?

There are several formats of purses for storing crypto-currencies – “hot”, “cold”, hardware and paper.

Hot wallets are suitable for storage, if you are going to regularly make transfers (between exchanges, for example). A hot wallet is an online platform where a private purse key is stored. Access to the platform can be obtained by entering a login and password. For additional protection, we recommend that you enable two-factor authentication via SMS or email.
Among the hot wallets, we recommend that you pay attention to blockchain.info . Supports bitcoin , etherium and bitcoin cash . Inside the platform, you can choose the level of protection of wallets. Works through browser, iOS and Android.
Cold wallets are the safest way to store crypto currency. It is not intended for regular use, does not require a permanent Internet connection, and stores crypto currency in offline mode. In fact, it’s a hard drive that you need to download the entire transaction chain, that is, the entire block (about 190 GB). It should be taken into account that with increasing the number of transactions, the required space on the disk will only increase.

Bitcoin Core . An official customer created by the Bitcoin group, which is developed and promoted by the Bitcoin Foundation, a non-profit organization that unites kernel developers. Constantly updated, excellent safety and stability indicators, easy to use, but takes up a lot of disk space, resource-intensive, few options.

Hardware wallets are used to store a private access key, connect to a computer via a USB port, do not require permanent connection to the Internet and a PC. Such purses are protected from viruses and hacker attacks. More suitable for storing large amounts of crypto currency. Among the hardware wallets, Ledger nano S scored the most popularity .

Paper wallets are a small sheet on which a private key is indicated. Sometimes they have a QR code for quick access to the wallet. They look like this:

Cripto_14

How to make money on the Crypto currency?

How it is possible to earn on криптоалюте with the minimal investments? How much should I invest in crypto currency?

You can earn in the currency in two ways:

  • to engage in mining, that is, to buy equipment and “mine” coins, helping to process operations;
  • either to earn a change in the course of the Crypto-currency, buying and selling coins, making a profit from the difference in price.

It is thanks to the second method that many traders earned hundreds of percent of profitability in 2017.

You can get income with minimal investments, but you need to take into account that the smaller the starting capital, the less will be the final profit and higher risks in the work. You can invest from any amount, because the price of many crypto currency does not reach the dollar, but again, the income in this case is relatively small.

What is mining?

Mining (from English Mining – extraction of minerals) is the generation of new coins in various crypto-currencies. If you explain the essence of mining in simple words, then it is the search for a specific sequence of numbers that corresponds to the given parameters. It is called hashing.

As a result of the mining, new blocks are created, united in a chain. Each block contains the transactions that users of the system have done recently. For example, “Zhora sent 5 bitcoins to Karl”, and “Karl gave Vasily 3 bitcoins”. These are all transactions. However, to be confirmed, these records must be added to the blocks. Once this happens, they are considered to be completed and can not be canceled later.

The process of mining is time-consuming and in time only becomes more complicated, and, accordingly, huge computing power is required for it. Because the creators of the crypto currency have come up with a brilliant move – anyone can connect to the network by providing part of the computing power of their computer for mathematical calculations.

What is blockade, and do I need to know this at all?

Blocking is a technology on the basis of which crypto-currencies are created. Technically, this is a chain of blocks containing electronic information, built according to a certain algorithm. Knowing what blockage is to invest in crypto currency is not necessary, but a common understanding of the process can be useful

What is ICO and why are they needed?

ICO is an analogue of the IPO from the world of crypto-currencies. The IPO is the withdrawal of the company’s shares (Facebook, Microsoft, Apple) into the market. ICO – this is the same topic, only without distribution of ownership of the company to shareholders, but just a promise of nishtyakov such as access to the platform or profit due to the increase in the price of purchased tokens. That is, either the pre-order of goods or services, or purely speculative history.

What is a smart contract?

A smart contract is a program code that helps to automatically perform the main function of a crypto currency – transfers in transactions of purchase / sale / exchange without intermediaries, with full control over their execution. This algorithm exists on the basis of blocking technology, and the code itself is stored in blocks. Primitive forms of the smart contract are embedded in the original bitcoin protocol, but they were not used fully, due to code limitations. The widespread use of smart contracts began with the advent of the Etherium, and despite the fact that it is written on any blocking computer, the ETH platform still remains the most popular.

In practice, smart contracts can be used for automatic shopping, currency exchange, insurance, gambling rates, etc. For example, in the case of online purchases, the program code can be prescribed so that the seller will receive payment only if the delivery the goods will be confirmed by the buyer. Until then, the amount for the purchase is written off from the buyer and frozen in the blockhouse.

Why invest in a crypto currency is beneficial?

The main confirmation of the prospects of the crypto currency is history. Bitcoin has grown 20 times during 2017. Other coins with less popularity grew by thousands of percent, for example Ripple. Therefore, certainly, crypto currency represent one of the most dynamically developing groups of financial assets.

Which exchange to choose (for trading)?

Exchange is very much (more than 30). We can advise several time-tested and with the largest trading turnover

  • Bittrex
  • Bitfinex
  • Poloniex
  • Binance
  • Kucoin
  • Cryptopia
  • Coinexchange
  • Gate
  • Yobit

I bought several crypto currency, but they are all on different stock exchanges. Is there a service where you can track the dynamics of all at once?

Yes. One such service is Cryptocompare . This is not a stock exchange. Here you can create a personal cabinet and write down all your purchases of crypto-currencies here. Service is convenient in that you can enter the purchase price and track the dynamics. Also, it helps to see the full picture of the cryptography and understand that, despite the drawdown on some coins, you are generally profitable.

Which altcoyins are the most promising?

There are many promising altcoys, and the feasibility of investing in them depends on your goals. When choosing altcoin for attachments, you need to carefully study: how a particular crypto currency has arisen, on the basis of what was developed, how reliable its source is, what is the news background. At the same time, it is worth investing in some altcoins for a long time, while short-term investments are more suitable for others.

How to analyze coins? What pairs to choose for speculation?

When analyzing a coin, be sure to pay attention to the following:

The activity of mentions of crypto currency in social networks (twitter, reddit, bitcointalk). It is strongly recommended to read at least the last five pages in the discussion of any crypto currency at bitcointalk.org .

Is there a work product? Those. some coins go to the stock exchanges without any practically useful basis, and therefore do not carry potential value. For example, Ethereum can be used to provide fast and secure transactions by banks, which provides a coin with investments. If the crypto currency is not useful to someone, then the probability is high that over time it will become bankrupt.

Study the development team – what is their experience, reputation in the circles of the crypto-currency community, the openness of profiles on Facebook and LinkedIn.

Track the general news background on cryptology on popular sources. We recommend the following sites:

  • coindar.org
  • coinmarketcal.com

When is it best to invest in a crypto currency?

Buy Crypto currency is best at the time when there is a drawdown of the market. Those. the cost of all coins falls.

How long to keep bought coins?

It all depends on your strategy. We advise you to keep coins from a month to a year. Also, in our opinion, one of the effective strategies is to sell 20% of the initial capital when your profit has grown to 500%.

Can I transfer some of the purchased crypto currency to another purse / friend?

Yes, it’s easy. By the way, the implementation of fast and anonymous transfers between private individuals is one of the main purposes of the crypto currency for which it was invented.

How to protect yourself from hacking your account / wallet?

The safety of your wallet can be ensured by observing simple conditions:

  • never, and do not tell anyone your private key (seed);
  • use different passwords for each exchange;
  • always connect two-factor authentication from Google;
  • store the Crypto currency only on checked purses (we already wrote about them above).

Where to read the news on crypto currency?

News of the Crypto-currency has become one of the most popular content today, which is used by numerous haypovyh sites, pampers, etc. Because of this, we advise you to trust information published in authoritative English-language sources, such as:

  • cointelegraph.com
  • bitcointalk.org

What influences the growth of altcoyins and the crypto currency market in general?

The growth of crypto currency is affected by many factors, some of which remain the “underwater part of the iceberg”. Often the sharp growth of a coin can be caused by listing on a new exchange, this can ensure a growth rate of 100% or more. In addition, quotes can go up with a positive news background, which includes news about major contracts signed by the creators of the crypto currency, news about the technical modernization of the system, the appearance of serious investors, etc.

What is the future of bitcoin?

“Bitcoin will become the digital equivalent of gold,” says billionaire Peter Thiel. We agree with him. The world mining of bitcoin is limited by the system itself and can not exceed 21 million coins. This means that BTC can not depreciate over time, like any limited resource, and therefore can be an investment asset, the same as gold.

Where to watch the Bitcoin course and other crypto currency?

The most popular resources for monitoring the course are:

  • coinmarketcap.com
  • coingecko.com
  • livecoinwatch.com
  • tradingview.com

What is Pump and Dump?

Pump is an artificial rise in price, by a group of traders. After a small increase in the rate, the pampers begin to flood the chats with exaggerated reports of the coin’s growth, and wait until inexperienced traders start buying it in large quantities. We do not recommend contacting pampers, as only the creators of crypto currency can earn on them.

Dump – a sharp drop in prices several times. Usually a dump follows immediately after the pamp, or when there is a strong negative news background about the coin.

How to read technical analysis charts

Technical analysis is one of the most effective ways to determine the further trend in the price movement. In several sentences it is rather difficult to provide information that takes up whole books, but it is possible to single out the main principle – on the price chart one can track the actions of the main market participants and draw conclusions about the future price movement.

Particular attention should be paid to important levels of support and resistance for the price, as well as the underlying indicators, for example, Moving average. More information on this can be found in the specialized literature or on the brokerage company website.

Psychology of trading. How to avoid emotional transactions?

In the process of trading, traders are influenced by emotions, which cause the majority of failures. The only correct solution for each market participant is the availability of a trading strategy, that is, the initially planned plan for each transaction, which should include the opening and closing levels of the position, the rationale for entering the market, and behavior in the trading process. In the presence of such an algorithm, when actions are known in advance for various scenarios in the market, unsuccessful and emotional decisions will be brought to nothing.

How to translate the crypt from the stock exchange to the stock exchange with minimal commissions?

First, you need to find a stock exchange that carries out the transfer with minimal commissions.

Secondly, choose the correct currency for translation.

And thirdly, correctly sell coins after the transfer.

What should be the balance between fiat money and crypto currency?

Strongly do not recommend investing all your savings in the crypto currency. You can not mortgage property or take loans for the sake of investing in virtual assets. In the crypt is worth investing only the money that you can afford to lose, and lose completely.

How to set up and use indicators on specific exchanges?

It is necessary to understand that the trading platforms can differ quite a lot in terms of functionality and those indicators, the use of which is possible. We recommend using the trading terminal MetaTrader 4, which is offered by some broker companies. It contains the most useful indicators, as well as other tools for market analysis.

How to determine the ideal entry point?

For each trader, the concept of an ideal entry point is different, and there are hundreds of different trading strategies. However, the main parameter characterizing the correctness of the opening of the transaction is the risk-profit ratio and the suitable entry conditions that are consistent with your strategy. I.e:

  • before the opening of the transaction, it should be known exactly when the loss will be recorded if the price goes the other way;
  • potential levels, near which the transaction will be closed in positive territory;
  • The transaction should open in a situation that is already familiar to the trader.

Is trade intraday profitable? If so, how?

Trade intraday is one of the most effective approaches to work in any market, including crypto-currencies. However, you need to have appropriate trading conditions, since in the case of high commissions, work will be unprofitable, because it is assumed that several transactions are executed per day and more. For the opening of transactions, technical analysis is mainly used, as well as the development of local fundamental events.

What is risk diversification?

Diversification of risks is the distribution of their deposits on different coins. You can not go into one coin “for the whole cutlet”. Do not keep all the eggs in one basket.

If the quotes of one of the coins went down, then the growth of the rate of the other replenishes these losses.

Diversification of risks is carried out by creating a cryptortfolio – a set of three or more coins into which investments will be made. For example, your portfolio consists of Ethereum, Bitcoin Cash, EOS and NEO. In this case, it is possible to distribute investments in a proportion of 40% to ETH, 40% to BCH and 20% to other coins.

What are paid signals? Should I use them?

Suggestions for paid signals can be found on every Internet corner “without registration and SMS”, their main task is to take money from you. The price range varies from $ 60 to 0.1 BTC, and this is not the limit.

The accuracy of predictions of paid signals can reach 70% if the market is at the growth stage, and 50/50% if the market is in correction. The profit from such signals is minimal. We do not advise them to use.

Which altcoyins are the most promising?

There are many promising altcoys, and the feasibility of investing in them depends on your goals. When choosing altcoin for attachments, you need to carefully study: how a particular crypto currency has arisen, on the basis of what was developed, how reliable its source is, what is the news background. At the same time, it is worth investing in some altcoins for a long time, while short-term investments are more suitable for others.

Which altcoyins are the most promising?

There are many promising altcoys, and the feasibility of investing in them depends on your goals. When choosing altcoin for attachments, you need to carefully study: how a particular crypto currency has arisen, on the basis of what was developed, how reliable its source is, what is the news background. At the same time, it is worth investing in some altcoins for a long time, while short-term investments are more suitable for others.

How to set up and use indicators on specific exchanges?

It is necessary to understand that the trading platforms can differ quite a lot in terms of functionality and those indicators, the use of which is possible. We recommend using the trading terminal MetaTrader 4, which is offered by some broker companies. It contains the most useful indicators, as well as other tools for market analysis.