How Can You Build a Cryptocurrency Portfolio with Little Money?

This is the question that most people who are just starting out with crypto investing have in their minds. And it is a very pertinent question to ask.

Cryptos are volatile assets, and as much as they can make quick gains, they can roast your rooster to charcoal as fast if your finger is not on the proper dial. This is more so if you have a little cash to start off.

So is it possible to watch your dimes grow from almost zero? Let us try and find three ways of doing exactly that.

Investing in CFD Trading

Welcome to the world of Contracts for Difference (CFDs) and the way they are used for leveraging stocks of underlying assets. Let us explore a few things to get you started;

What is CFD trading?

In Contracts for Difference trading (CFD’s), you are allowed to speculate on the rise or fall of an asset’s value without really buying the asset.

Let me explain; You sell if you predict a fall in the value of the underlying asset, and you buy if you predict a rise.

By using the leverage provided by the exchange, you could be speculating on an asset ten times larger than your investment for an equivalent gain to someone who owns the asset. For example, if you have 100 dollars, you could bet on Bitcoin and gain as much money, with good prediction, as someone who holds $1000 worth of Bitcoin if your leverage is 10%!

But note. You could lose by the same margin if your predictions are wrong! CFD trading is a zero-sum game, and so if the price goes down, the buyer has to pay the seller the difference. It’s prudent to also keep an eye on broker spreads. The larger the spreads, the riskier the CFD if you are good at predicting a particular effort. A spread is simply a price allowance

the broker puts in the rise or fall of an asset price before they can apportion gains or collect losses from traded positions.

How to start trading Cryptocurrencies?

When you decide to try out CFD but do not have a huge budget, you will need a broker to help you out. A reliable broker that provides CFD trading is crucial because they lend you the money to leverage.

From you, a broker will require a margin which is a sort of deposit to protect himself from losses.

Protecting yourself from losses

CFD trading allows you to leverage your position on asset price increase or decrease. The underlying assets (cryptocurrencies) fluctuate a lot. Your goal is to predict the right kind of movement.

To avoid massive losses, you should avoid overextending yourself financially. Hence, You should never take a position that is worth more than what you hold in your CFD account. For instance, if you have $1,000, do not take a position that is worth $1,500 as this will wipe you out if there is a massive drawdown.

In the same breath, do not take credit from your broker that is more than your portfolio. Your broker should only lend you 5% to 10% of your portfolio amount. Lastly, do not invest in CFDs with credit money. There is money to be made, but you can also make losses.

A good piece of advice with CFDs is to make good use of the stop-loss and profit target functions to manage the movement of your portfolio as you speculate. Some brokerage platforms allow you to shadow successful traders, and most have practice accounts.

Trading on Admiral Markets

Admiral Markets UK Ltd is a European based online brokerage firm. They have been in the business for a while and have earned themselves a reputation for being efficient.

In the business of money, reputation is critical. This is why Admiral markets is a known name in the CFD circles. They opened their platform to CFD trading in 2013. Their website and trading platform are user-friendly, and it allows you to keep an eye on your investments 24 hours a day.

Trading in CFDs does not have to be a million-dollar affair. In fact, starting small is most recommended. However, you should take caution to avoid suffering losses and developing cold feet from the get-go.

If you have ever wanted to trade cryptocurrencies but are risk-shy, this is a great way to warm up.

Well-researched investment

The crypto universe has seen a proliferation of many different tokens. There is a massive opportunity to buy cheap tokens and get good returns within a short time as a token starts getting enough interest.

You can make handsome returns with some good research about many tokens that are not yet mainstream. Obviously, you have to be familiar with the crypto world, the impact of fundamental news on some cryptos and, as it recently becomes the main catalyst for cryptocurrencies volatility, the effect of regulation over cryptos’ prices.

If you decide to dig into cryptocurrencies trading, read as much as you can, follow some cryptocurrencies’ investors and analysts on social media, connect to Reddit and find a broker that provides you with the best terms. From that point, your profit depends on your discipline and trading skills.

Early Bird Crypto Looting

Token sales are a great way of making early investments in ICOs that you think will generate a lot of public interest. An ICO is a tokenized business which seeks to fund its future operations using crowdfunding.

When you learn about a blockchain company and its investment idea, the first thing you do is read about how the business will unfold.

What are the problems it seeks to address? Are there better alternatives? Who is developing the idea?

Once you are confident that the idea you are funding will generate interest, you now can invest in the token either for long-term holding or until you can reap a targeted return.

How to prevent losing your portfolio with ICOs

As much as you can make money with ICOs, the risks are high with many of them. Many tokens crash soon before issue, or you could have difficulties liquidating some of them if they are not being bought at the exchanges.

There are several things you can do to manage the risks;

Read the white paper – The whitepaper is the blueprint of any ICO. It spells out what the ICO intends to bring to the market. However, most importantly, it states the amount it needs to raise and how it plans to do that.

You should invest only in tokens that convert at the ICO, that way, even if the price decline sharply, the program will not be derailed.

Look for that needle in the haystack kind of token – Most tokens nowadays are doing the same thing. They mostly just want to add themselves to the decentralized system bandwagon. When investing always go for that coin or token that goes an extra mile.

For instance, most coins that are as a result of a hard fork such as Bitcoin cash or Litecoin cash will be worth your money if their improvement is revolutionary and in demand. Endeavor to also have in your portfolio those tokens that have been well marketed as they tend to have a lot of initial gains in the market.

Final thoughts

While having a good capital base when investing in cryptos can be a good thing, it is possible to start small, learn, and grow your portfolio with time. Whatever you do, be it CFD trading via brokers such as Admiral Markets, Early Bird ICO investment or simple token purchases, use most of your time to research and get facts.

CFD trading can allow you to get leveraged earnings without buying the crypto you are speculating about. When you start with little money, you can learn early through less costly mistakes.

Learn and learn well. No one will give you foolproof advice on investing in cryptos. They are volatile assets, and this means that they make massive profits and return huge losses to different people, in different measure.

Risk disclosure: Forex and CFD trading carries a high level of risk that is not suitable for all investors. Presented information is not an offer, recommendation or solicitation to buy or sell. Before making any investment decisions, you should seek advice from an independent financial advisor to ensure you understand the risks involved. Read more at admiralmarkets.com.

Trading the Markets with Spread Betting

All investors worldwide aim to create investment opportunities which can give them the highest returns at the lowest costs. With the advent of the internet, such investment options have surged.

One trading vehicle that has grown exponentially due to online trading platforms is financial spread betting. Coming a long way and faced with near obscurity in the 1990s, the industry has provided an alternative to conventional investments.

In this article, let’s look at what spread betting is and how you can use it to open potentially lucrative positions.

What is Spread Betting?

Spread betting is a kind of speculation which involves taking a bet on market price fluctuations. It can be applied to an extensive range of financial markets. In this type of betting, the investor does not own the underlying asset but merely speculates on its price movement. Individual traders perceive it as a high-risk but potentially highly rewarding method of making tax-free gains.

A spread betting company quotes two prices, the bid and offer price. Investors then bet whether the price of the market – such as shares, commodities or currency pairs – will fall lower than the bid or rise higher than the offer. To run a position the investor provides a deposit known as ‘margin’.

Quick gains can be made from trading short-term openings as market prices oscillate. Essentially a trader is buying a market when they speculate a price will rise or selling if they think it will fall.

Benefits of Spread Betting

There are numerous benefits that come with spread betting over the conventional method of trading. The key benefits include:

Trading on margin: Spread betting is a form of margin trading, in that you don’t have to fund the full value of your position. For example, if the margin rate for a market is 10%, and you place a bet worth £300, you only need £30 from your account balance to open the position and trade. This affords investors an opportunity to do more with their capital.

Risk management: Some risk management tools are available that lock in profits and limit losses. Such tools include stop-loss orders, take-profit orders and trailing stop-loss orders. These orders help to manage your exposure by setting price limits on your position. For instance, a stop-loss order should automatically close your position if the price of the given market moves against you to a level where you want to exit your position.

Commission-free trading: This type of betting is exempt from various costs that come with trading shares with a stockbroker. The UK spread bettors don’t pay stamp duty, commission or capital gains tax because they are not buying the underlying stock. This makes spread betting an appealing and viable investment vehicle.

Traders can go short in falling markets: Investors do not have to wait on markets to ascend to make a profit. As you can use spread betting to speculate on rising or falling prices, you can make gains in bull and bear markets.

Trading in global markets: Traders get access to a wide range of financial markets such as indices, equities, currencies, and commodities like gold and crude oil.

Full-time trading: Spread betting enjoys uninterrupted access to markets throughout the trading week. Trading is available 24 hours a day, with some spread betting markets quoted even when the underlying market is closed.

How Does Spread Betting Work?

Spread betting allows investors to back their judgment in the financial markets. You can buy or sell a particular market for a given stake per point. The more right you are, the more you make gains, and vice versa.

In spread betting the ‘spread’ is the range between the selling price and the buying price. If you think the price will rise you can buy (go long); if you think the price will fall you can sell (go short).

You also need to decide your stake. This is the amount you are betting per point. For each point the market moves in or against your favor, you will make or lose this amount, as illustrated below. For example, if you buy £5 per point and the market moves favorably 5 points, you will make £25. If the market falls 10 points you’ll lose £50.

How is Margin Set?

To open a spread betting position you put down a margin deposit. This margin is calculated as a percentage of the full value of the position.

The initial margin required is established by the margin percentage for that particular market. The stake is multiplied by the opening level to give the position value. This amount is then multiplied by the margin percentage.

For example, a trader may decide to open a £2 per point position on UK 100. Say the margin percentage margin for UK 100 is 0.5% and the opening level is 7000. The initial margin can then be determined as: (£2 x 7000) x 0.5% = £70. In this case, £70 will be required as the initial margin for the position.

Trading on margin significantly enhances the potential return on your capital. However, potential losses are equally magnified if the price moves against you.

Spread Betting vs. CFDs

While with spread betting investors speculate on the price movements in financial markets, with CFD trading investors buy or sell a certain number of CFDs (Contracts for Difference) in an instrument.

Thus a CFD is a contractual agreement between a consumer and an enterprise. When the contract ends, the consumer receives the difference between the closing and opening prices of the underlying asset. If the difference is positive, profit has been realized; if the difference is negative, a loss has been made.

Nevertheless, both CFDs and spread betting present an opportunity for traders to achieve very high returns.

Similarities Between CFDs and Spread Betting

With both spread betting and CFD trading, traders can go short as well as long. You can take a long position when market prices are increasing or a short position when prices are decreasing.

In both types of trading, investors can deposit just a small percentage of the full value of the position to enter a new trade.

Differences

In spread betting, profit or loss is calculated by finding the difference between the entry and exit prices. This difference is multiplied by the stake. However, with CFD trading, the price difference is multiplied by the number of CFDs traded to determine the profit or loss.

Profits realized from spread betting are not subject to UK stamp duty or capital gains tax (CGT). Profits from CFDs are exempt from stamp duty but are subject to CGT.

Spread betting is available to customers who reside within given jurisdictions such as the UK or Ireland. CFDs are available in more jurisdictions globally.

Consumers seldom pay a separate commission when trading with spread bets – in most cases, the commission is included in the spread. In contrast, CFD prices often do not include these charges and commission is paid separately.

In most cases, CFDs are linked to physical assets such as shares, currencies, and commodities. But spread betting can take place in markets made across many activities such as election outcomes and sporting events.

Spread Betting Brokers

Every trader needs a reliable partner in investment plans. We believe that InterTrader is a cut above other brokers, offering an exceptional range of spread betting and CFD services.

InterTrader has a range of direct and reliable trading platforms giving traders the flexibility to trade rising or falling prices. Order execution is fast, with remarkable liquidity, and traders have free access to specialized trading tools and dedicated customer support.

As a broker, InterTrader is fully market-neutral, which means that it never stands to gain from client losses. Furthermore, the broker complies with internationally accepted best practice, carrying sufficient liquid capital to meet all its obligations.

InterTrader Ltd is authorized and regulated by the Gibraltar Financial Services Commission, and registered with the UK’s Financial Conduct Authority (FCA). This implies that investors’ funds are under full protection.

We believe this broker is the ultimate answer to formidable investment in spread betting as well as CFDs.

Conclusion

Spread betting is a viable investment option with the potential for high returns. As with CFD trading, it can provide an investor with a flexible range of trading opportunities, especially via a broker like InterTrader.

With insightful market analysis, traders can enjoy healthy profits, but the risk of major losses is also significant. The fact that profits made from spread betting are exempt from stamp duty and capital gains tax makes it attractive for UK investors, giving you a flexible, cost-efficient way to speculate across a wide variety of assets.

The Ultimate Guide to Buy Ethereum (ETH); All You Need to Know

Being the second most popular cryptocurrency is no mean feat especially if you are not a mere imitation of the master.

Ethereum has charted a beautiful but risky path to distinguish itself from Bitcoin and claim its place as a unique blockchain.

But how?

In this guide, we will discover all about Ethereum (ETH).

What is Ethereum?

The Buterin Story

When Bitcoin was getting all sorts of attention as a breakthrough in the scaling of digital currencies in 2011, a father brought the earth-shaking blockchain technology to the mathematical genius who was his teenage son.

Dmitry Buterin may not have known at the time, but his son, Vitalik Buterin, would evolve in a few short years to co-found and spearhead the most disruptive blockchain after Bitcoin, known as Ethereum.

At the time, Vitalik was a student and a tech blogger who was brought up in Canada.

Mihai Elisie, 23, who was working in Poland at the time, had noticed Vitalik’s unique writing in crypto blogs. He asked the young Buterin to join him in founding Bitcoin Magazine. The young lad promptly accepted and became the magazine’s chief techie writer.

Later, after conceptualizing the massive potential proposed by Satoshi’s invention, Buterin dropped out of college, contacted and started working with Dr. Gavin Wood to develop Ethereum. The Programming started in 2013 and, by January 2014, The Ethereum Blockchain was introduced to the world.

With it, Vitalik Buterin changed the Distributed Ledger technology… for the better, for good.

Definition of Ethereum

Put simply, Ethereum is a source of all sorts of open source (or free) applications that are based on the blockchain technology.

Applications enabling transactions that cannot be altered because of the immutable and decentralized nature of the blockchain is a huge addition to blockchain technology, especially when its innovation promises the immutable digitization of the world’s assets that do not directly involve money. Such applications were first made possible on the Ethereum blockchain.

Ethereum is therefore introduced as the blockchain that would ‘do for everything else what Bitcoin did for money.

The Ethereum Community

The blockchain has a very dynamic community. It consists of individuals and organizations, working together to develop and secure the network. These entities collectively assist in the realization of the Ethereum dream. They include;

  • Core developers: Vitalik Buterin leads a team of developers who are dedicated to the implementation of the wishes of the rest of the community through hard coding of agreed rules into the cryptographic algorithms that created the blockchain.
  • The miners; Though the blockchain is moving from mining to staking, miners run the nodes that confirm transactions, update the ledger and secure the platform.
  • Independent Developers; Creators of the smart contracts and the dApps, independent developers give life to the blockchain.
  • Researchers who are the technical capability of the blockchain’s fraternity to dream and bring complex ideas into context.
  • Clients: The reasons why any blockchain is formed. They make the transactions and give the blockchain life.
  • Organizations: The blockchain is funded and facilitated by organizations that use the decentralized applications.

How to Buy Ethereum (ETH) – A Step-by-Step Guide

Buying Ether is amazingly simple due to its popularity. It has three steps.

Step 1 – Get an Ethereum Wallet

Before you buy your ether, you need to either buy or install the wallet on which to store your ether.

There are various types of wallets that can hold Ethereum. For the Ethereum official wallet click here.

Ethereum Hardware wallets are the most secure way of storing Ether. The main ones are Ledger and TREZOR.

Electrum Software wallets are ideal for starters who may have little holdings or no funds to buy hardware wallets. They are free software wallets but are less secure because they are often connected to the internet and can, therefore, be hacked. The main ones are Exodus, Jaxx, and MyEtherWallet.

Step 2 – Buy Ether from the best exchanges

Many exchanges provide Ethereum (ETH). In this article, we review the processes for Coinbase and Binance.

Acquire Ethereum with Credit Card through Coinbase

Coinbase is the largest Bitcoin broker in the world. However, it also offers Ethereum, Bitcoin Cash, Litecoin.

After signing up and going through the security authentication, you can then Log in and deposit fiat currency. Finally, go to the buy/sell button to acquire your ETH.

Coinbase will keep refreshing the devices you use to access your account through email verification, even after the verification step after sign-in. This is a welcome added security feature.

Coinbase is available in 32 countries worldwide, mainly in Europe, Canada, the US, and Singapore.

Buying Ethereum (ETH) at Binance

Being a crypto-to-crypto exchange, the main way to acquire Ethereum at Binance would be to import Bitcoin (or other cryptocurrencies that you previously own) and use the funds to purchase Eth.

Enter Binance, get to the site registration page where you put in your details and password. Then log in to Binance.

You will have to go to your email to click on the verification code sent to you on email.

Binance will take you to the 2FA page, where you use the Google Authenticator on your mobile device to provide you with a constantly updating authentication code. It provides increased security.
Once in Binance, go to ‘funds’ – ‘Deposits and withdrawals’;

Scroll down and find BTC and click on the corresponding deposit button.

binance deposit and withdrawls

Import Funds and Buy Ethereum

You will be given the BTC Address on which to send your funds. Do not send any crypto to an address belonging to another.

Binance will deposit your BTC immediately after 30 confirmations.

Once you have the funds on Binance, proceed to Exchange – Basic and select the Eth pairing as follows;

binance 3

Once the pair is selected, go to the dashboard below the graph on the exchange.

Buy as much Eth as you can afford with the BTC you have on the platform.

binance 4

Step 3 – Transfer your crypto to your secure wallet

No crypto is entirely safe on an exchange or online wallet. Sending ETH to the chosen offline wallet is an important and easy step that protects your holding.

Trading Ethereum Through CFD’s 

CFD stands for Contracts for Difference. This means that you can open a trading position to speculate on the increase or decrease of an asset you don’t necessarily own, by leveraging a percentage of the price.

Plus500 (*76.4% of retail CFD accounts lose money)offers Ethereum CFD trading along with other cryptocurrencies. The broker has endeavored to be regulated in many jurisdictions, with the current ones being the Financial Conduct Authority of the UK, Cyprus Securities and Exchange Commission, and the Australian Securities and Investments Commission.

To open an account via Plus500 is a simple process and all requires is a minimum deposit of 100 USD/EUR/GBP to open an account.

Once you apply, you can deposit your funds and start trading. You get to explore on your own.

However, you cannot send your crypto to another wallet from a forex exchange; you can only cash out to fiat.

Technologies Supported by Ethereum

Ethereum Smart Contracts

A smart contract is a cryptographic computer protocol that facilitates, monitors, verifies or enforces the execution of an agreement immutably and exactly as programmed. It accomplishes this without the burden of expensive and inefficient third parties and human error.

It carries the potential of eliminating most need for lawyers, auditors, witnesses, banks, experts, governments or trustees.

With the blockchain technology, witnesses become honest nodes operating anonymously in the distributed network, across the world, executing hard-coded consensus algorithms to satisfy themselves that all the conditions for executing the agreement have been met, and hence enabling the contract to execute expected outcomes.

Introducing the technology in 1994, Nick Szabo envisioned a way of creating trackable and irreversible contract outcomes by use of a computer protocol that would be superior to pen and paper contracts.

According to him, smart contracts would;

  • facilitate mutual monitoring of both parties’ performance inside the contract,
  • Verify the successful completion of a contract, or of a condition therein.
  • guarantee selective distribution of contractual details to ensure only necessary information is passed
  • be self-enforcing and autonomously deployable to minimize human intervention.

In 2009, Satoshi provided the first successful use-case for smart contracts when he created the blockchain.

With it, he ensured the security of smart contracts’ outcomes through the decentralized Byzantine Fault Tolerant (dBFT) algorithm,  made possible by the distributed nature of the blockchain.

He made it possible to assure privity, anonymity, observability, and enforceability of smart contracts like the ones that run Bitcoin.

Soon, Vitalik Buterin posited that Ethereum would use the technology to bring any business to the blockchain.

Ethereum Decentralized Applications (dApps)

dApps, as they are commonly known, are programs that are designed to do for ‘everything’ what bitcoin did for money. They are complex smart contracts, or many smart contracts working in harmony.

We can, therefore, say that decentralized applications are computer software programs that are deployed on a blockchain to perform more complex tasks than smart contracts.

Dapps have self-incentivizing features (i.e., have resident tokens that fuel its operation) and run on the distributed ledger technology. Anything short of this is not a Dapp. It is just computer software.

What are decentralized autonomous organizations or DAOs?

Calling a DAO a company can be confusing, though it is tempting. A DAO is simply a for-profit entity that exists on a distributed network, working autonomously, and relying on hiring humans to perform certain tasks that cannot be automated.

A consensus is achieved through voting on who to employ, what to do, how to spend money, how to share profits etc.

Ethereum members created the inaugural DAO in May 2016, bullishly named ‘The DAO‘. However, it died a premature death due to a security breach in August of the same year that drained it of $50 million worth of Eth before the blockchain hard forked to stem the theft.

This was the first indication that the technology would not be deployed as easily as originally thought due to security.

Ethereum vs. Bitcoin: How is Ethereum Different than Bitcoin?

Bitcoin Recap

As he labored hard to break the age-old kleptocracy that existed in the governance of money, the pseudonymous Satoshi Nakamoto had no illusions that he was onto an explosive but necessary odyssey.

We paid him no heed when, in 2009 January, he brought the blockchain to the world.

He would often plead with fellow cryptographers to participate in bitcoin mining. By May 2010, Laszlo Hanyecz, one of the geeks, made the first ever purchase of a good with bitcoin, and the era of cryptocurrencies begun.

Since then, bitcoin has gone through it all to record one of the most incredible appreciation records of any asset in trading history.

It has suffered staff desertion (including Satoshi himself), price dumps and hard forks.

It has enjoyed price hikes, been targeted by all manner of regulators, and fought off crime abetting claims to record a high of almost $20,000 by December 2017.

And that is huge, considering that bitcoin achieved dollar parity only in February 2011.

As the gold standard of cryptocurrencies, no altcoin coin has ever surpassed it in market capitalization or unit price.

Ethereum and Bitcoin: Comparison of the Blockchains

When you look at the two blockchain use cases, the niches are stark in contrast, and this is instructive when understanding the different opportunities they hold for different interested parties.

A quick pairing of the two cryptocurrencies gives us a clear picture of the main differences as depicted below;

Feature Bitcoin Ethereum
Current Price $ 8,053.00 $ 809.00
Market Cap $ 136 Billion $ 80 Billion
Consensus Algorithm Proof of Work Proof of Stake
Current Market Dominance 35% 17%
Current Supply 16.8 Million 97 million
Total Availability 21Million Not Defined
Block Size 1 MB N/A. Uses gas limit so block sizes can vary
Block Time 10 minutes 10-20 seconds
Transaction per Second 7 15
Decentralization Achieved Achieved
Coin Creation Distributed Mining Proof of Stake
Main Feature Cash Transfer Smart Contracts and Dapps
Year of Creation 2009 2014
Price on Jan 1st, 2016 $ 434.33 $ 0.948
Price on Jan 1st, 2017 $ 1,003.08 $ 8.18
Price on Jan 1st, 2018 $ 14,112.12 $ 773

Ethereum’s main objective is to enable the creation of decentralized applications that will reshape main global markets and bring them to the trust less unassuming distributed mainstream. It, therefore, allows for other blockchains to be built on it.

Bitcoin seems primarily solves the problem of expensive and slow transfer of money, worldwide. While Bitcoin chooses a decentralized ledger


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How can you Spend/Use Ether?

Ether is mainly designed to work as the fuel that allows you to access the Ethereum Blockchain. It may not scale into a mainstream currency, but is a good bet for crypto speculators.

Being the main gateway for most ERC20 tokens which account for most of the crypto coins, Eth is a good bet for increased demand as we delve deeper into the decentralized application era, and owning it at the right time is a good thing.

This means that Eth can be used for many applications that deal with anything from gaming, entertainment, medical, and a myriad of other dApps.

ICO’s and Ethereum

Due to the decentralized applications that are possible on its blockchain, Ethereum has enabled the onset of online crowd sales for business ideas that scale to become profitable.

Ideas that would never have been funded by banks and other traditional financial institutions of yesterday.

When an idea like that is broadcast to the public, and a date for the crowd sale is announced, it is known as an initial coin offering. Or an ICO, which is a play on the more mainstream IPO.

Final Thoughts

Ethereum is easily the broadest crypto to understand. It has a very elaborate and well-structured growth curve.

When the Casper algorithm is finally established, the blockchain promises very good prospects for growth.

However, it must be said here and now that all investments in crypto are risky, and no information presented in this article should be taken as solid financial advice.

What is Tether (USDT) and How to Buy It?

We have been going on and on about the capability of the blockchain technology that is getting us out of the autocratic management of money exercised by centralized institutions like central banks, normal commercial banks, and mobile money transfer institutions.

Governments, on the other hand, have been up in arms over the increasing popularity of blockchains and how their currencies carry a latent threat of enabling illegal practices through the obscuration of financial transactions that is now possible using the blockchain technologies.

The Epic Battle Between Blockchain, Fiat, and Regulation.

So the battle of the ages has been on since Satoshi mined the genesis block in January 2009.

Blockchain developers have been working day and night to defeat all manner of stifling regulation through innovative cryptographic ingenuity, while governments have been trying to outguess the geeks to ensure continued sanity in the world order and retain control of creation, storage and movement of money.

So when someone came with a cryptocurrency called Tether, both worlds were caught in the battleground, dumbstruck, and are trying to understand how this peacemaker can make them re-sheath their bloodied swords, shake hands, and co-exist in some restless harmony.

What is Tether (USDT)?

If you grew up on a livestock farm, you know that to tether an animal is to keep it near a structure you select, by tying it to that structure using a rope.

If you love Bluetooth technology, you know it is possible to tether a nearby device to another and make it enjoy connectivity.

Well, Tether is an innovation in the blockchain space that has made it possible to convert any fiat currency into a corresponding cryptocurrency. Tether Limited will then immediately accord the resultant tether coin all the functionalities of the blockchain, while at the same time allowing the tether retain the simplicity, stability, and usability of the ‘tethered’ fiat currency.

So if you submit some USD to be converted to Tether, you get the same amount of USDT, which is USD Tether, that can now be tradable, exchangeable and redeemable as a cryptocurrency.

Wow… This is huge.

In one stroke, the technology manages to eliminate the volatility associated with Bitcoin and its siblings, while retaining all the other blockchain capabilities and awarding them to the world’s assets.

Tether is made possible by the Omni layer Protocol operating on the bitcoin blockchain. It uses what is known as Proof of Reserves. Tethers maintain a near-perfect 1:1 parity with their underlying assets.

Tether

How to Buy Tether (USDT)?

Buying Tether (USDT) can be a similar process to other cryptocurrencies. It is a simple process that can be done quickly. The first thing to do is to create a digital wallet that supports USDT.

Tether (USDT) Digital Wallets

You can hold USDT in any hot wallet or exchange that offers the coin, including Binance, OKEx, Bittrex, Kraken, Poloniex, and ZB.com.

The main crypto wallets for semi-hot storage include Holy Transaction and Omni wallet.

Tether (USDT) Best Exchanges

The lion’s share of USDT trades is shared between Binance and OKEx, With Huobi, HitBTC, and Bitfinex bringing up the rear. You will also find crypto to crypto trading pairs at smaller percentages and for a variety of coins at other exchanges like Poloniex, Bittrex, Change.io, and ZB, com.

In light of these numbers, we will review how to buy USDT from Binance, as one of the major exchanges.

Buying Tether (USDT) with Credit Card/Other Cryptocurrencies

Acquire Tether from Tether Limited

Because Tether is leverage crypto that puts its value on a 1:1 ratio with the underlying currency, USDT can be acquired by submitting US dollars to Tether Limited, which then issues the equivalent number of USDT to an appointed user’s compatible wallet, and holds the reserves for US dollars. All that is needed is to carry out the normal sign – up and follow the deposit instructions to load up your account and get the USDT sent to a wallet of your choice.

Acquire USDT with other cryptocurrencies

One of the easiest ways to cash out to USDT is through Binance.

They have the easiest and fastest crypto to crypto exchange from Ethereum, Bitcoin and other major cryptocurrencies to USDT.

What you want to do with USDT is to bring all your crypto holdings to USDT for safeguarding against day to day or periodic volatility.

You can, therefore, convert all your redeemable crypto into Tether for safekeeping.

At Binance, there are USDT pairs of Bitcoin, Ether, Litecoin, Neo, BCC (Bitconnect) and BNB (Binance Coin). This means you can import any of these currencies to Binance and trade them for USDT.

How to Buy Tether (USDT) via Binance?

Register with Binance

The registration to Binance is straightforward and is completed after you carry out an email verification and 2-factor authentication.

Once in Binance, select funds – Deposits; Bring your crypto to Binance for exchange to USDT.

You will find your appointed pairs, and you can then acquire your USDT and spirit it off to cold or semi cold wallets for hodling or to use as normal dollars, but on a blockchain.

This is the main method that most traders will be familiar with because of its familiarity and ease.

Import funds and buy USDT

You will be given the Crypto Address on which to send any of the options given above. Don’t send any crypto to an address belonging to another.

Once you have the crypto balance on Binance, proceed to Exchange – Advanced and select the USDT;

Tether Binance

Once that is selected, click on the appropriate pair that matches the crypto you have deposited, and open in order to buy USDT.

You can now buy as much USDT as you can afford on the dashboard below the graph by selecting the quantity you want and matching it with the available crypto balance you have for appointed Crypto.


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Tether Use Cases

For Exchanges

At current, crypto traders go through hell identifying payment avenues for converting fiat to crypto.

From having to find the right exchange that will accept your fiat and provide the crypto you are looking for to engaging in long security protocols and wait times for wire transfers to clear, many newbie traders simply give up in the middle of the process.

Exchanges also have to integrate with banks that may not have necessary APIs, making the transfers extremely hard and expensive. Tether relegates this problem to the backburners of history. The risk of handling fiat is handled by Tether Limited, which in turn can simply provide the tethers.

Exchanges can then provide Tether Pairs, and enable blockchain movement of fiat assets across networks and borders seamlessly

Individuals

With USDT and other Tethers, it is now possible to HODL crypto that is pegged on a fixed fiat value and avoids the hassle of withdrawing crypto assets that someone wants to remove from the sometimes unforgiving volatility of cryptos like bitcoin.

All the other characteristics of bitcoin are made possible with Tethers. And all one needs is an Omni Layer Protocol enabled wallet like Omni or Holy Transaction. This means that you have pseudo-anonymity, peer-to-peer flexibility, cheap and fast cross-border transfers of fiat based crypto.

To the Merchants

Tethers bring a breath of fresh air to merchants allowing them to concentrate on their core business and not on payments. Transfer of USD/fiat is now made possible without the hassle of centralized money movement systems, chargeback risks and intermittent conversion across fiats.

Tether (USDT) Challenges and Prediction

The Bitcoin Baggage

If the Launchpad for the Tethers is the Omni Layer Protocol laid on the bitcoin platform, and it has not tried to address the scalability problems that bedevil the bitcoin blockchain, then questions still abound about the problems that affect bitcoin and whether they also manifest in Tether.

The Fiat and Centralization Curse

For the simple reason that the Tether is generated after fiat is deposited somewhere, the question of anonymity cannot be wished away. Just how is Tether a cryptocurrency when it is permanently tied to a fiat value? Proof of Reserves is a distant call from decentralization, the main drive that makes cryptocurrency a choice for financial libertarians.

Prediction

But we are talking about a currency that is running on major exchanges and carrying fiat value. That in itself makes the Tether a highly attractive compromise that promises a piece of both conflicting worlds. It is now easier to offload gains to a fiat simulator crypto and be assured of the stability of fiat in a blockchain setting, which is refreshing.

Final Thoughts

As much as the Tether is designed to work with many world’s cryptos as underlying assets, The USD Tether is the world’s first Tether, and the technology is simply in its earliest stages.

It is possible to now download crypto to crypto that retains fiat properties. It is called a Tether, and the USD Tether is the first among many.

The most relevant purchase of a USDT is as an exit of crypto loot from trading to USDT for consolidation and security of accumulated value.

It is easy to bring Eth or Bitcoin from any wallet to Binance and purchase USDT which can be stored on an Omni or Holy Transaction Wallet, or any other Omni compatible wallet, as the Tether runs on the OLP which is layered on top of the bitcoin protocol.

But this must be said: Cryptos are always volatile assets. Do not trade in cryptos what you cannot afford to lose.

How to Buy TRON (TRX): A Complete Guide

If you have been investing in crypto assets for some time now, you must have noticed that one of the best ways of accumulating a respectable portfolio is trading the smaller altcoins that have unique features to the major players.

In fact, currently, this is the space where the most money is being made.

In this guide, we bring you the TRON (TRX) coin. We will review how to buy TRX, the characteristics of the coin, its qualities, and challenges, store and trade it.

How to Buy TRON (TRX)?

Trading TRON (TRX) with other cryptocurrencies

The best way to acquire TRX is through Binance. They offer the easiest and fastest crypto to crypto exchange from Ethereum, Bitcoin or USDT to TRON and a host of other alternatives.

You can do this in the following three steps;

Step 1 – Acquire Bitcoin or Ethereum through Coinbase

Coinbase is the world’s largest Bitcoin broker, but it also offers Ethereum, Bitcoin Cash, Litecoin.

Once you sign up and finish the mobile code verification, you can then deposit fiat currency and go straight to the buy/sell button to acquire your BTC or ETH.

Ensure you load up enough money to buy the TRON (TRX) you need. You can do this by doing a mock sale at Binance which is explained below.

Step 2 – Register with Binance

The registration for Binance is straightforward and is completed after you do an email verification and a 2-factor authentication.

Once in Binance, select funds – Deposits and withdrawals;

Binance

Scroll down and find either ETH or BTC and click on the corresponding deposit button.

Step 3 – Import Funds and Buy TRX

You will be given the ETH Address in order to send your ETH or BTC. Do not send any crypto to an address belonging to another.

Binance will approve your deposit in a process that can take up to an hour.

Once you have the crypto balance on Binance, proceed to Exchange – Basic and select the TRX pairing as follows;

Binance

Once that is selected, you can now buy as much TRX as you can afford on the dashboard below the graph by selecting the quantity you want and matching it with the available crypto balance you have for ETH or BTC.

Binance 5

What is TRON (TRX)?

Tronix (TRX) is a cryptocurrency that is crushing the market capitalization party big time. It has been designed to run on TRON, to pioneer the decentralization of the entertainment industry by constructing a worldwide free content entertainment system using the blockchain technology.

TRON will allow each user to freely publish, store and own entertainment data in the decentralized autonomous form. Content owners will also decide on the distribution, subscription, and push of content. It will also enable content creators to release and circulate their entertainment digital assets, and thus become the first decentralized content entertainment ecosystem.

With a current market cap of close to $10 billion and a daily volume of almost $700 million, the coin is already a market leader barely four months since it was created.

TRON intends to scale through six distinct milestones.

Exodus: Offering a simple, distributed file sharing facility. In Exodus, there is not much leveraging of the blockchain technology, just a liberation of the sharing of entertainment files.

Odyssey: Odyssey will usher a tipping system that replaces the views or clicks currently with decentralized systems. It will be similar to the Proof of Stake paradigm. People will be able to get authentic content from the system when they tip the content creators.

Great Voyage: In this stage, a personalized token creation for all content marketers will incentivize the creation of personal ICOs that will allow for supporter management, income payment, and dividend management. People will now be able to support massive entertainment projects and have a share of the proceeds using the personal ICOs created by the content creators.

Apollo: This phase will function much like Great Voyage, with the exception that TRON will introduce its decentralized tokens, and carry out system updates to increase security and make the blockchain more robust and secure to avoid hacks, malicious tokens, DDOS and Sybil attacks.

Star Trek: The fifth phase in the scaling of TRON will see the blockchain morph into a decentralized gaming platform, much like Augur. The system will be improved to provide for autonomous gaming and prediction functionalities which will allow TRON to enter the $450 billion, and probably give the currency much needed improvement in capitalization.

Eternity: This last phase of the blockchain will handle fundraising where investors will seek to put their money in the gaming or entertainment options of their choice.

Tronix is poised to be big when TRON scales in this manner. And this is mainly because it has several things going for it that most other coins can only dream of.

TRON Coin Qualities

Ready Market

The best thing going for TRON is its target market. The entertainment industry commands an online world capitalization of over $1 trillion. As a trendsetter in decentralizing entertainment, most artists and content owners who have been oppressed by fat wallet distributors and promoters are now breathing easier with the promise that TRON brings to enable them to manage their content.

TRON Is domiciled in China where it already enjoys massive support. This is mostly due to the fact that China is a huge market that seems to support its innovations over others.

Partners

In addition, Justin Sun, the CEO of Peiwon App is the brainchild behind TRON. He is an accomplished 26-year-old blockchain expert with experience working for Ripple as their chief representative in the greater China.

Peiwo is an audio app that has a following of more than 10 million subscribers, with a million regular users. Sun has availed this massive market immediately to TRON by making the app compatible with the TRON protocol, to allow the distributed functionalities immediately available to Peiwo users, and afford TRON with a ready market of 10 million wallets.

The Chinese cast of business magnates who support TRON is stellar. People like Dai Wei, the founder of OFO bike, Tang Bingsen of ‘Clash of Kings,’ Chaoyong Wang of China Equity Group and Yang Linke, the founder of BTCC.com provide massive endorsements to the coin.

Sun himself is one of the first students of Jack Ma’s Hupan University, has a master’s degree from the University of Pennsylvania and has appeared in the Forbes list of China’s ‘30 under 30’.

Lucien Chen, a big data expert who has worked for Tencent and Alibaba, has left Alibaba to join the TRON team as their technical lead, coordinating and guiding their worldwide technical teams.

The Interface

TRON will enhance live shows, social networks, online casinos and games as well as mobile games, and all manner of digital entertainment platforms around the world.

It accomplishes this by providing features for payment, development, credit sharing, and storage of content.

TRON Digital Wallets

Since TRON is an Ethereum based coin, it is compatible with most ERC20 wallets. The most prominent wallets can be categorized into two broad categories, which allows you to secure your crypto or trade it as you wish.

Crypto wallets are digital and are similar to normal wallets in that they store money. However, they are unique in several ways;

  • They are digital and are identifiable only using pseudonymous character keys called public keys.
  • They are either online (‘hot’), or offline (‘cold’).
  • They support different coins for different reasons. For example, there are wallets that only support Bitcoin and Ethereum.
  • Some can allow for intra-wallet coin exchanges (they have to be online for that to happen though).
  • They have private keys which are used by the cryptographic algorithms to allow network members to ascertain the veracity of transactions from your wallet.

On private keys, HEAR THIS;

NEVER share your private keys or leave them insecure. The day unauthorized persons access your private keys, your crypto is as good as gone.

NEVER lose your private keys too! If you do, there are no recovery systems and the wallet will never be opened by anyone.

Hot Wallets

All exchanges that offer TRX will provide a hot wallet to facilitate the trade. Remember that exchange wallets are only recommended for a short time holding as they are online and therefore can be attacked and your crypto can be lost for good.

Among the hot wallets, you will find Binance, Liqui, HitBTC, Yobit, and Gate.io.

Semi-hot and Cold Wallets

If a wallet can operate offline, it is called a cold wallet. Some wallets can operate both off and online but are more secure than exchange wallets. Let us look at several of these wallets that support TRX.

ether wallet

MEW is one of the most versatile Ether wallets out there that allows you to hold your Ether and all ERC20 compatible tokens. It is not a desktop wallet that allows for additional back-up in the form of additional passwords and even as a paper wallet for added security.

For ease of access, you can add it to Chrome.

It is easy to increase the gas limit to accelerate transaction speeds for your token to wherever you want to deposit.

MetaMask

Apart from the fact that MetaMask has a wallet that can store all ERC20 compatible tokens including TRON, It is a very well designed interface and is actually an Ethereum browser, which is cool because it can allow you to interact with all the Dapps and Smart Contracts on the Ethereum Blockchain without installing any software or downloading the blockchain.

Ledger

The Ledger Nano S is a cold storage hardware wallet that can be bought on eBay or Amazon, or on its website. It supports a large number of cryptocurrencies, including Ethereum tokens through MyEtherWallet.

The procedure for using the ledger wallet to store TRON is well detailed here.

Trezor

Trezor connects via a USB and is a fantastic hardware wallet that stores many cryptocurrencies including Ethereum and all ERC20 tokens. It works much the same way as a Ledger when it comes to depositing and storing TRX.

TRON Best Exchanges

The lion’s share of TRON trades is shared between Binance and Liqui. These two exchanges cover almost 95% of all trades in January 2018, with Binance commanding the majority using two trading pairs, TRX/BTC (54.8%), and TRX/ETH (20.8%) of all traded volumes.

Liqui has a combined trading volume of 16% with three pairs, TRX BTC (9%), TRX/ETH (3.5%) and TRX/USDT (3.5%).

TRON Challenges and Prediction

The Bad

If TRON is entering an industry that is littered with personalities who court controversy for a living, including wearing fresh meat to popular events (remember Lady Gaga?) and all manner of other untoward happenings, then it is in good company when it comes to controversy.

However, the blockchain fraternity is unforgiving when it comes to bad press and controversy, and TRON has taken a major price beating after going through both. Let us see what could be improved on this blockchain.

Claims of Plagiarism

An embarrassing development came quick and fast after the release of the TRON whitepaper that it had been plagiarized its white paper from a competitor known as Filecoin.

Matters promised to spiral out of control on this sideshow until Sun himself had to go to Twitter on January 8 and place the blame squarely on volunteers who purportedly interpreted the paper from Chinese to English and other major European languages.

Misrepresentation of Partnerships

On January 10, 2018, Justin Sun posted on Twitter that TRON had reached a partnership with the Baofeng group in China. He baptized the company as the Chinese Netflix, and this was quickly picked up by the crypto sleuths who screamed bloody Monday since Baofeng is nothing like Netflix. They do not produce actual video content. They provide the software used to play videos.

While this is not a strange phenomenon in cryptocurrency, it was not helped with the issues that already existed with claims that the TRON white paper was plagiarized from other existing white papers including.

Because of its latent threat to crash the big boys’ party, people like Charlie Lee, former Google employee, and Inventor of Litecoin, could not help himself as he weighed in with his criticism of TRON when it went through the above challenges. And that is an indication that the big boys are listening.

Prediction

In blockchains, everything is possible. TRON has taken on a major and heavily centralized industry that commands serious money. If Sun expects a smooth ride as he embarks on demolishing the demagogic hegemony in entertainment financial flows, then he is in for a rude shock.

But there is beauty in decentralization. Once a blockchain is released as open-source, not even the creator has any meaningful control over what its network will decide to do in the future.

All currencies at current seem to be taking a beating on the price angle, but experienced crypto enthusiasts know that there has been an unexplained and unprecedented appreciation of crypto value in recent weeks. It is therefore hard to predict crypto coin behavior when there seems to be an all-industry melt-down.

But cryptocurrencies grow and depreciate all the time. It is the volatility that astute crypto traders use to hog the crypto landscape, milking hikes and buying on the cheap.

The simple fact that TRON is working to bring the entertainment revenues back to the entertainers is very endearing to almost everyone. There is going to be a lot of activity in the decentralization of entertainment in the coming decades, and TRON has put a huge foot forward in that arena.


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Conclusion

Talk is cheap. There are so many spin doctors in the crypto landscape. If any token is worth anyone’s time, then TRX is either the coin, or it is not far from the pecking order.

It is still affordable, selling at $0.06 by the time of writing, and because of its massive potential for adoption across all industries, it has all cryptocurrency tongues wagging at current. Rallying to Position 14 in the fourth month of operation is not a joke.

The Entertainment Industry’s revolution has been revealed by the TRON blockchain. And now you know exactly how to go about acquiring this promising asset.

But whatever you do, any investments you do in the cryptocurrency space have no guarantees, and as such you should not invest assets that you are not prepared to lose.