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Saturday, 21 October 20:47 (GMT -05:00)



Foreign exchange market

What Threats Do Cryptocurrencies Bring to Users and Investors?


Anonymous cryptocurrencies are said to simplify many financial transactions. Those who advocate digital currencies claim that they are very easy to use, even though this is a rather disputable statement, Market Leader reports.

 

 

 

 
On the surface, cryptocurrencies resemble plain text files. The very process of transferring digital currencies is as easy as sending an e-mail. The owners of digital currencies can transfer the money directly to each other, without having to address banks or other third parties. Basically, the only thing you need to know to transfer funds is the e-wallet number. The person’s credentials are option.
 
Once again, most cryptocurrencies out there are anonymous. For now, Bitcoin makes up for roughly 40% of the cryptocurrency market capitalization. This is not accidental given the fact that Bitcoin is the first and most popular cryptocurrency in the world. Basically, anonymity is one of the key reason why Bitcoin has been so popular worldwide.
 
The total market capitalization of the entire global market of cryptocurrencies is around 138 billion dollars. Even though digital currencies have been increasingly popular, experts recommend against making hasty investment decisions and take into account all the risks related to buying, hold and selling those currencies online.
 
When it comes to cryptocurrencies, there are no single and stable exchange rates, which means that those currencies are still rather volatile compared to conventional currencies we all know. The exchange rates of Bitcoin and its peers have been some kind of a roller coaster ever since they came into existence. Some people try to trade those changes to try and make quick cash. They want to buy low and sell high. However, such transactions may take a while, and in reality the exchange rates may change a couple of times while they are processed and completed. That’s why trading cryptocurrency is rather risky.
 
Cryptocurrencies are decentralized. There is no single bank to control them. Their exchange rate is basically backed by people’s trust. After a hack attack on major Bitcoin exchanges in July 2017, the BTC exchange rate instantly dropped from $2600 to $1900. Even though the hackers managed to hack a related system, not Bitcoin itself, the trust was undermined, which was instantly reflected in the exchange rate.
 
Some observers claim that cryptocurrencies get more expensive when they get more attention from the international community. On the contrary, when people lose interest in them, they may lose value as fast as they gain it. Fully functional cryptocurrencies emerged in 2009. This year, Bitcoin has split in half – Bitcoin and Bitcoin Cash. The thing is, the system is used by too many people while the capacity is 7 transactions a second. For the sake of comparison, Visa and Mastercard can handle 2000 transactions a second. Ethereum also split in half after a major hack attack.
 
At the same time, some experts say that if the system gets more complex, this may result in higher system requirements for miner to back higher processing power. This means that only big-scale miners will manage to survive further down the road.
 
According to Nobel Prize Winner Robert Shiller, Bitcoin is the best example of a speculative bubble. This is what he stated during his interview to Quartz, a recourse specializing in IT and business. According to him, price bubbles emerge when too many market participants invest too much money in a relatively small amount of assets. As a result, the assets get overpriced.
 
Students of financial colleges and universities are often told the same story. They say that in 1928, right before the Great Depression in the USA, a major banker learned from a shoe-shine boy a reason to sell the stock of a railway company. Later on, the banker sold the stock, and the company went bankrupt soon. The banker came to the conclusion that when even a shoe-shine boy can buy a stock, such a stock should be get rid of as soon as possible.  
 
Anonymity is not always good
 

 

Cryptocurrencies have been popular with hackers, drug dealers and other criminals. Anonymous cryptocurrencies make it impossible to track those transactions or get the money back. Even if the user loses a secret code to access the e-wallet, the system won’t let them restore it. At the same time, new technologies are often hacked. Because of various vulnerabilities in the operating system, the e-wallet can be stolen anytime. At the same time, hackers keep on coming up with new ways to mine cryptocurrencies. Kaspersky Lab warn us about mining viruses that have already infected around 9000 PCs. Those viruses secretly utilize the victim’s PC processing power to mine cryptocurrencies, which is why the infected computers get slower and consumer more electricity. So, be careful and make sure your computer is secure.

 

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Duckascopy Offers Most Favorable Trading Conditions to Forex Traders

Profitable forex trading has become something usual for thousands of people all over the world. Having decided to change their lives for the better one day, they started valuing the active lifestyle of daily trading while listening to those market signals. Keeping in mind all the risks and potential benefits of trading forex, they dared take their first step.

Publication date: 19 October 10:36 AM

Bitcoin Sets Another All-Time High

Bitcoin has completely recovered from September’s downtrend and is now moving higher. Moreover, the world’s first and most popular cryptocurrency has just set a new all-time high, Market Leader reports.

Publication date: 14 October 03:28 AM

Billionaire Cuban Calls Cryptocurrencies and Blockchain the Future of Financial Markets

American billionaire Mark Cuban thinks that cryptocurrencies and the blockchain technology is the future. He shared his opinion with the public during his interview with Bloomberg. He talked about Bitcoin and the development prospects for the entire industry of digital currencies.

Publication date: 10 October 10:10 PM

Miners Start Panicking as Some Cryptocurrencies Start Going Down in Value

Bitcoin is making everyone nervous again. Bitcoin miners start panicking, and the panic is driven by the news that Bitcoin Cash and some other cryptocurrencies are crashing again, Market Leader reports.

Publication date: 08 October 01:34 PM

Bitcoin Exchange Rate Retraces Before Another Rally, Expert Says

These days, new financial assets are being added to the list of forex assets. Those are highly volatile assets like cryptocurrencies, for example. Cryptocurrencies have been getting increasingly popular with international forex traders. This holds especially true for Bitcoin, which is the world’s first and most popular digital currency.

Publication date: 08 October 05:40 AM

Masterforex-V Expo Names Best Forex Brokers for Beginners in September 2017

To succeed in trading financial markets in general and forex in particular, each and every trader needs to choose the right broker. Most people think that there is no difference between forex brokers, expect their names. Well, it may seem so at first sight but the truth is, brokers differ in many aspects, including the quality of products and services they offer, as well as the trading conditions.

Publication date: 05 October 08:54 AM

Goldman Sachs Will Trade Bitcoin

Goldman Sachs, a major American investment bank, is now considering a new option – working with Bitcoin and other cryptocurrencies. The Wall Street Journal reported about yesterday.

Publication date: 02 October 09:28 PM

Euro, Pound, Yen, and Franc Prospects for the first Week of October

The analysts working for NordFX have published another weekly forecast (October 2nd – 6th) for such currency pairs as EUR/USD, GBP/USD, USD/JPY and USD/CHF.

Publication date: 02 October 10:06 AM

NordFX is the best broker, FIBO Group, XM.com and FxPro are the worst brokers based on trader feedback

Many of those who make their first steps in forex trading usually search for customer feedback before going with a certain forex broker. Evaluating a broker through customer feedback, including various review on the Internet, is a major factor to consider, though a rather biased one. Basically, that’s the reason why customer feedback is only one of those 20 criteria (licenses, expertise, offices, trading conditions, and so much more) used by Masterforex-V Expo to create various ratings of FX brokers.

Publication date: 30 September 08:47 AM

What is the best place to store cryptocurrencies?

The most common reason why people get their digital currencies stolen is that their e-wallets are often poorly secured and therefore vulnerable. Apparently, such apps do have vulnerabilities. However, there are certain tips and tricks that will help you to increase your security when it comes to storing digital currencies, Market Leader reports.

Publication date: 27 September 09:53 AM