Connect with us

Blockchain

Is It Worth To Start Cryptocurrency Trading?

Watch Wunderbit’s Evgeny Latyshev and Kirill Osaulenko talking about cryptocurrency trading on Dukascopy TV!

Republished by Plato

Published

on

Watch Wunderbit’s Evgeny Latyshev and Kirill Osaulenko talking about cryptocurrency trading on Dukascopy TV!

Trading As One Of The Ways Of Making Profit From Digital Currencies

Trading. So, imagine, you are mining cryptocurrencies, you’re getting some rewards, should you start trading? What do you reckon? In case you have no experience in that, should you touch this area? 

No, you should trust someone who knows how to do that. That’s the key for sure. Because otherwise, it’s going to be very frustrating for you. You have a very, very steep learning curve so you need to spend quite a lot of time to understand what to do and how to do it, and this is a full-time job. 

So, if you are working and cryptocurrency mining is your hobby, like your side investment, then there is an opportunity for you to accumulate more of the cryptocurrency that you mined and use it for cryptocurrency trading purpose. But if you don’t have the opportunity to do that, then you better trust somebody who knows how to do that. And this is what these social trading platforms are for. 

So, there is a solution of how to stay in the crypto space using your mining as an initial investment and then to trade and accumulate more of the cryptocurrency without spending too much time.

Usually, when you trust a trader to manage your funds, you would have to transfer the funds. Thus, there is a risk that you would lose your crypto, is that correct?

Not with the social trading platforms, because they work in such a way that you don’t actually transfer the funds, you only provide the trader with the API access that allows him to buy and sell a cryptocurrency, but there is no way for him to withdraw the funds. And this is a very good way to see the transparency because you can see all the trades that the trader makes and at the same time, this is a very secure way to provide somebody with the funds and to accumulate more. Most of the copy trading platforms will ask for some kind of commission from a trader so you will have to pay the trader something because he is doing the job for you. But this varies from one platform to another.

All right. So, basically, you’re left with the risk that the trader will make unprofitable trades and that’s it?

Yes, pretty much. As soon as you choose the trader that you would like to copy-trade, the only risk is that he will be not very successful in terms of making profits.

Alright, let’s get back to mining. So, we’ve discussed briefly what are the main ways of crypto mining. Let’s just make a quick summary. What do you reckon, as a person who actually heard the whole story, would you like to start mining?

I think the most important thing here is to understand what are your goals. Is it a long-term investment for you? Is it actually something that you would like to have the short-term gains and to maximize your current profits? If we’re talking about the long-term investment, then yes, I think mining is a very good starting point and one of the tools that you can use for a long-term investment. So, start with the GPU mining rigs, select the cryptocurrency you would like to mine and then start accumulating it. But, as we mentioned, it should be combined with some other form of, at least, short-term trading or some strategy that you will have in mind in order to accumulate more and not to rely just on the price of the cryptocurrency at this particular moment. That’s my view. What about you?

Well, in my opinion, it really depends on several factors: 1) you have funds to create a significant investment, 2) you really understand where you would allocate this mining production, 3) what’s going to be the electricity cost. 

If all the factors say that the breakeven point would be quite short, for example, three or four months, maybe six months with the existing prices of bitcoin, and you can afford to allow the bitcoin price to fall to as low as, let’s say, 3000 BTC/USD and you would be still happy to continue mining, then probably yes, why not. 

Again, this business plan should be compared to any other business plan that you can imagine or you have in your mind. If that performs better, if that has better numbers, then absolutely.

Crypto Currencies Trading vs. Crypto Currencies Mining In 2020

Trading is actually a wide topic. As a trader, maybe you could comment what do you think about trading?

Well, there are two aspects. First of all, obviously you need some knowledge, skills and practice to trade profitably. That’s one thing for sure. And if you just start with mining, for example, and you have no clue of how to make a transaction on exchanges, then there is a solution for you as well, which is called social trading. 

So, you can connect your wallet from the exchange to the social trading platform and then follow one of the traders. So, all the trades will be done by that particular trader. And then your account will copy every trade that this trader did in the certain proportions. And that’s one of the solutions for you. 

Another one, if you are a long term investor, let’s call it this way, you can actually distribute your portfolio in certain portions so you can, even if you mine, just Ethereum, for example, you can then buy Bitcoin, Ethereum and some other altcoins in order to accumulate the USD price of it, for example, higher in one year. So, the idea is that you diversify your portfolio and then you sell it off in a year’s time, or you can use whatever the bitcoin maximalists call – a strategy is just HODLing it. 

So, whatever you mine, you just transfer the operation costs, so you basically have to cover just those and then the rest will stay in the cryptocurrency that you mine. Or if you mine Ethereum and you would like to HODL bitcoin, you just transfer everything to Bitcoin. However, this, from my perspective, is not a very efficient way to actually hold your cryptocurrency because it’s such a volatile market, it’s very hard to make a projection of what is going to be in one year, in particular, so even though your, for example, electricity cost is more or less stable, you know how long your hardware is going to last for, but the huge problem is the price. 

My strategy would be to actually setup a certain cutoff point. So, if the price of Ethereum, for example, goes below 200 dollars, I will sell everything straight to dollars and then cover my costs and keep everything in dollars, as soon as it starts reaching above it, I will convert everything back to Ethereum and everything that a mine will stay in Ethereum.

Okay, I’ve got a question for you. So, for example, at this point, you’re mining, imagine you are a cryptocurrency miner, and the cost of Ethereum is not very high, it’s actually below 200 dollars right now, and the cost of electricity is sort of high for you. At this point you’re negative. What would you do? Would you stop mining or would you accumulate Ethereum until the price would reach a breakeven point? Or will you follow it further?

That’s a good question. I think it totally depends on the price of that particular cryptocurrency at the moment. If we talk about Ethereum, I think that right now it is not very profitable to mine and it’s quite hard if you’re not, for example, short-selling, using this as a trading strategy. It’s quite hard to have a breakeven point if you’re just buying the cryptocurrency, buying low, selling high. The typical trading strategy. For now, I would think that mining, in particular at this moment in time, is not very profitable. 

So, you better shut it down for some time, as soon as the price is going to reach at least 200, you can switch it back on, and we’re talking about Europe right now, so the cost of electricity is quite high.

Stay tuned with our YouTube channel and try what is copy trading now!

Source: https://wunderbit.co/en/blog/cryptocurrency-trading

Blockchain

Following Coinbase And Bakkt: Winklevoss’ Gemini Reportedly Considers Going Public

Republished by Plato

Published

on

Cameron and Tyler Winklevoss are reportedly exploring the option of making their cryptocurrency exchange Gemini public. The brothers could follow the steps of other US-based digital asset-related companies with similar intentions, such as Coinbase and Bakkt.

Gemini To Go Public?

Bloomberg reported today that the founders of the US-based crypto exchange Gemini are open to the idea of going public.

“We are definitely considering it and making sure that we have that option. We are watching the market, and we are also having internal discussions on whether it makes sense for us at this point in time. We are certainly open to it.” – said Cameron.

Gemini, based in New York City, employs over 350 people. The exchange obtained a trust charter from the New York State Department of Financial Services shortly after its establishment and is licensed as a money transmitter in multiple US states.

Making a company public has been a hot topic within the cryptocurrency industry lately. Firstly, the largest US exchange Coinbase announced such plans with an estimated value of nearly $30 billion.

More recently, Bakkt, the Bitcoin futures trading platform owned by the Intercontinental Exchange, stated similar plans after a merger with a special acquisition company. Bakkt’s estimated enterprise value is at approximately $2.1 billion.

Gemini Releases A Credit Card With Crypto Rewards

The exchange also announced that it will launch a credit card that will provide users with cryptocurrency rewards. Dubbed Gemini Credit Card, it will enable up to 3% back in bitcoin and other digital assets. The rewards will be automatically deposited into the cardholder’s Gemini account.

The card comes after Gemini acquired Blockrize – a company specializing in building such products. The distribution will start later in the year, and the statement informed that there’s already a substantial waitlist with over 10,000 people requesting early access.

The card will work like traditional ones and will be available to US residents in every state while also accepted in merchants that accept regular cards.

“The Gemini Credit Card will make it easier for any consumer to invest in bitcoin and other cryptos without changing their existing behavior. Rather than deciding how and when to buy crypto, customers can do so when making their everyday purchases. We are excited to welcome the Blockrize team to Gemini and work together to continue to mainstream crypto.” – commented Tyler Winklevoss.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/following-coinbase-and-bakkt-winklevoss-gemini-reportedly-considers-going-public/

Continue Reading

Blockchain

FinCEN Extends Comment Window on Proposed Crypto Regulations

Republished by Plato

Published

on

With the initial deadline for comments long expired, FinCEN has decided to extend the comment period for its proposed controversial crypto regulation for an additional 15 days.

FinCen Sets New Deadline

The Financial Crimes Enforcement Network (FinCEN), an office of the U.S. Department of Treasury, announced the news of the extension via a press release on Thursday (Jan. 14, 2021). FinCEN’s earlier deadline was set on January 4, 2021.

Following the different requests for extension, it appears that FinCEN would not be hasty to implement the proposed regulation. The extension is beneficial for the industry, as affected entities can have time to analyze the proposal. Since the initial comment period, the bureau has received thousands of comments and is ready to receive more feedback.

An excerpt from the press release reads:

“FinCEN is providing an additional 15 days for comments on the proposed reporting requirements regarding information on CVC or LTDA transactions greater than $10,000[…] that involve unhosted wallets or wallets hosted in jurisdictions identified by FinCEN. FinCEN is providing an additional 45 days for comments on the proposed requirements that banks and MSBs report certain information regarding counterparties to transactions by their hosted wallet customers, and on the proposed recordkeeping requirements.”

The Proposed Regulations

FinCEN’s proposed crypto regulation required that cryptocurrency exchanges would keep records and verify “the identity of their customers if a counterparty uses an unhosted or otherwise covered wallet and the transaction is greater than $3,000.” Also, exchanges are expected to submit to FinCEN transactions that exceed $10,000.

However, the proposal saw pushback from the crypto community, with many saying that the rule was harmful to the industry. Companies like Jack Dorsey’s Square and Andreessen Horowitz opposed the rules, with Square noting that it could create unnecessary friction between crypto users and regulated entities.

Other comments noted that the original 15-days comment period was too short. As reported by CryptoPotato, days after FinCEN released its planned regulatory policy, U.S. crypto exchange Coinbase asked for an extension of the comment period.

According to Coinbase, the comment time frame was rushed and asked the bureau to instead consider a 60-day time frame. Also calling for an extension was a U.S. Senator and several members of Congress. The lawmakers also asked for an extension between 15-60 days to give concerned parties time to evaluate the proposed rule.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/fincen-extends-comment-window-on-proposed-crypto-regulations/

Continue Reading

Blockchain

Bulgarian Crypto Exchange Owner Sentenced To 10 Years in Prison for Laundering $5 Million

Republished by Plato

Published

on

A Bulgarian national was sentenced to serve ten years in prison after a major crypto-related fraud. Not long ago, the man was convicted in a transnational multimillion-dollar scheme to defraud over 900 American citizens.

An Auction Fraud That Victimized over 900 Americans

According to an official announcement by the United States Department of Justice, Rossen G. Yossifov, a 53-year-old man, had defrauded hundreds of American citizens during a well-masterminded illegal endeavor.

He managed and promoted the so-called RG Coins – a cryptocurrency exchange headquartered in Sofia, Bulgaria. Now, the US court has sentenced him for conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense plus a conspiracy to commit money laundering.

During the crime, Iossifov and his Romanian co-conspirators, part of the Alexandria Online Auction Fraud (AOAF) Network, engaged a large-scale online fraud. They organized a false auction that victimized at least 900 Americans during its course.

As CryptoPotato reported, Iossifov was officially charged with participating and dictating the international fraud a few months ago. 

Providing Favorable Crypto Exchange Rates To Victims

According to initial court documents, the scammers made everything seem legit, providing invoices with trademarks of reputable firms to their victims.

One of the primary ways to lure people into the scam was that the conspirators designed their scheme to cater to criminal enterprises by providing better exchange rates to the AOAF Network members.

The Romania-based fraudsters posted false advertisements to popularize online auctions for expensive goods and vehicles that did not exist. They had also established call centers to offer customer support to advise client questions and “alleviate concerns over the advertisements.”

When convinced, victims had to fulfill a payment. Domestic associates of the criminals would accept the money, convert them into cryptocurrency, and transfer them to foreign-based money launderers. As per the announcement, Iossifov was the final gear that facilitated the last stage of the scheme.

Some of the trial’s evidence revealed that, in less than three years, Iossifov had laundered nearly $5 million in cryptocurrency for just four of his partners.

“This represented over $7 million in funds defrauded from American victims. In return, Iossifov made over $184,000 in proceeds from these transactions”, read the official court publication.

Apart from Iossifov and the five co-operators, so far, 17 more members of the Romanian crime network will face court for their role in this scheme. Seven others have already faced sentences with verdicts between 30 to 96 months. Three of the members of the scam are fugitives.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/bulgarian-crypto-exchange-owner-sentenced-to-10-years-in-prison-for-laundering-5-million/

Continue Reading
Blockchain4 days ago

Ethereum Whale Addresses With Over 10,000 ETH Continue to Grow In Numbers, Price Holds Above $1000

Blockchain3 days ago

Bitcoin Will Be Analogous to Amazon, Mark Cuban Compares Crypto to the Dot-Com Bubble

Blockchain3 days ago

‘Crypto is exactly like dot com bubble; Bitcoin, Ethereum can survive it’

Blockchain3 days ago

As Bitcoin Regains Lost Ground, Options Traders Bet on $52K Move By Late January

Blockchain3 days ago

Ethereum Price Analysis: 12 January

Blockchain4 days ago

Shanghai Government Invests $5M in Blockchain Startup Conflux

Blockchain3 days ago

Brian Brooks, Crypto-Friendly OCC Leader, Steps Down

Blockchain3 days ago

Coinbase Custody Lists DeFi Project BarnBridge

Blockchain3 days ago

Bitcoin ‘real’ daily trading volume tops $22B as BTC price recovers

Blockchain3 days ago

How the OCC Is Building Crypto America (and Saving Banks From Extinction)

Blockchain2 days ago

SolidX Sues VanEck Over Bitcoin ETF Plagiarism

Blockchain3 days ago

Crypto Community Expects Bitcoin to Surge Amid Biden’s $3 Trillion Stimulus Plan

Blockchain3 days ago

Bakkt to Become a Publicly Traded Company worth $2.1 Billion Via New Merger

Blockchain4 days ago

HSBC Blocks Transactions From Crypto Exchanges

Blockchain3 days ago

IMVU’s new blockchain-backed stablecoin goes live

Blockchain3 days ago

Is China Poised to Nationalize Alibaba?

Blockchain3 days ago

Gensler Said to Be Named SEC Chairman: Reuters

Blockchain3 days ago

Trader comforts the market’s traumatized first timers amid falling prices

Blockchain2 days ago

Fidelity International Increases Stake In A Hong Kong Cryptocurrency Exchange Operator

Blockchain2 days ago

Update on Ethereum 2.0 Staking Rewards

Trending