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cladeymoore · 4 years

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Around the Block #11: A snapshot of DeFi and two sides of the crypto regulatory spectrum

Coinbase Around the Block sheds light on key issues in the crypto space. In this edition, Justin Mart and Ryan Yi take a look at the current state of DeFi and two sides of the crypto regulatory spectrum.

A snapshot of DeFi

In the midst of a broad crypto bull market, DeFi has continued its strong rise. Beginning in summer of 2020, DeFi projects saw significant growth in Total Value Locked (TVL). Around the Block previously explored DeFi and the Yield Farming phenomenon in June 2020, but what’s happened since?

To put it simply, DeFi’s meteoric rise has continued. As we noted last time, growth is still spurred by the yield farming phenomenon. This includes a virtuous cycle: Yield farming mechanics induce participants to add capital → which increases TVL → which drives governance token valuations → which increases yield farming subsidies → which continues the cycle.

Nevertheless, true zero-to-one innovations in DeFi cannot be discounted as part of the growth story. These are things like synthetic assets (e.g. Synthetix, UMA, and Mirror), increased capital efficiency in financial products (e.g. Aave, Compound), open financial access (including flash loans and emerging remittance use cases), and composable protocols that layer DeFi projects together like Yearn, among many other things.

Total Value Locked in DeFi protocols (TVL) now stands above $25B, an incredible 2500% growth Y/Y. Similarly, the number of DeFi users has surpassed 1.2M, as defined by the number of unique addresses accessing DeFi services. Mainstream protocols like Uniswap and Compound claim 200–500K users, with most other DeFi apps between 25–50K users.

Similarly, DEX volume has continued its strong growth since July 2020. Cumulative DEX volume now surpasses most centralized exchanges, topping $10B per day in January 2021.

Volume has been driven by growth in DeFi, but also tailwinds from broader crypto bull markets and sustained traction in categories where DEXs enjoy competitive advantages. These include access to the long-tail of novel DeFi tokens; and efficient swaps between highly correlated assets (e.g. stablecoins).

However, DEXs today settle trades on the main Ethereum blockchain, and are thus subject to oppressive gas prices in periods of high demand. This drives continued interest in scaling solutions, with a notable milestone as Synthetix has launched on Optimism (a rollup-based scaling solution).

While looking at top-line metrics is encouraging, the fact remains that DeFi is moving too quickly for any single person to keep track. Here are some high level themes we find interesting:

DeFi projects are embracing composability: New DeFi projects either introduce new primitives, or bundle existing primitives to create net new products. Think of these primitives as lego bricks, 6 months ago we were designing and building single bricks. Today we are combining these bricks into cars, planes, and castles.

Composability is extending into DeFi versions of partnerships: DeFi projects are wrestling with key questions around moats, defensibility, and top-line growth. Most projects seem to embrace open community collaboration, believing communities create moats (you cannot fork a community). This exact vision initially led to the governance token and yield farming phenomenon, and today is evolving into creative partnerships and collaborations, most notable in Sushiswap’s 2021 roadmap.

Scalability is becoming a bottleneck, but solutions are coming: As the base Ethereum chain struggles under scale, several protocols are openly exploring integrations with Layer-2 networks or other blockchains. Look for significant progress in 2021, especially in Ethereum rollups.

Regulatory uncertainty impacts development: In tandem, the SEC lawsuit against Ripple and CFTC lawsuit against BitMEX demonstrate that regulatory bodies are paying close attention to crypto, and not afraid to charge the largest players in the space. It’s reasonable to expect increased attention on DeFi based projects, and this uncertainty continues to impact feature development in regulated jurisdictions.

Speaking of regulation….

Two sides of the regulatory spectrum

Over the past quarter, both FinCEN and the OCC have come out with crypto regulatory guidance. Even though both are under the purview of the US Treasury, the guidance seems to be on the opposite ends of the spectrum toward crypto friendliness.

FinCEN

FinCEN is responsible for adherence to KYC/AML laws, which are especially important for crypto exchanges (“VASPs — virtual asset service providers”) like Coinbase. Crypto exchanges are required to verify their customer’s identities (KYC) and use blockchain forensic tools to study crypto transactions in order to ensure deposits do not come from potentially illicit sources.

FinCEN recently proposed an amendment to the Bank Secrecy Act’s FBAR regulations, specific to cryptoassets and VASPs. In summary, under the new amendment, US citizens would have to report crypto holdings and transactions greater than $10K regardless of where the cryptoassets are held. To summarize, the amendment would essentially require US individuals to report crypto holdings in excess of $10K that are held in foreign accounts, and require crypto exchanges or wallets to store customer information related to any transaction above $3K, and report this information to FINCEN for any transaction above $10K.

Additionally, the public notice had a limited 15 day comment period over the U.S. holiday break, which made it potentially difficult for crypto service providers to respond.

Many crypto service providers (Coinbase, Fidelity, Square, CoinCenter, ErisX, among others) have come out with strong responses arguing against the proposed rule, highlighting (among other things) the rushed nature of the proposal and inadequate time to address questions.

Since then, the Treasury has extended the comment period, and the future remains unclear given the new administration.

OCC

The Office of the Comptroller of the Currency (OCC), an independent bureau in the Treasury with a mandate to help “charter, regulate, and supervise banks,” came out on the other end of the spectrum with recent guidance:

Federal Banks may run public blockchain infrastructure [Jan 2021]

Federal Banks may engage in stablecoins [Sept 2020]

Federal Banks may custody crypto-assets [July 2020]

With this string of positive guidance, it’s clear that national banks may now participate in the crypto economy through custody and settlement. Notably, Jan 2021 guidance which legitimizes public blockchains as settlement infrastructure, placing blockchains on par with ACH or SWIFT.

In other words, federal banks can serve as large validators on blockchains (e.g. miners), or more practically, banks may ultimately settle transactions on Bitcoin, Ethereum, or through stablecoins.

Ultimately, this is the first step in regulatory action required to bridge the crypto economy into traditional financial infrastructure. Note also that while the OCC is the federal regulator, it is not the only regulator. There will be an interplay between the interpretation of this guidance from the state vs federal level. Separately, adoption will take time — blockchains are still relatively new and lack some core features (e.g. privacy, scalability), but this is a promising development.

To their credit the Treasury has since extended the comment period, and the proposal potentially hangs in limbo with the incoming Biden administration.

Coinbase news

Coinbase acquires BisonTrails

Coinbase continues to be selected as a full service partner and custodian for institutions

Coinbase Institutional’s 2020 Year in Review

Coinbase responds to FinCEN rulemaking

Coinbase acquires Routefire

Coinbase unveils Asset Hub to streamline issuance

Coinbase is hiring in Canada

Coinbase suspends XRP trading

Retail

Global cryptocurrency market cap hits $1T

BTC reaches new all-time-high price of $40K

ETH reaches new all-time-high market cap

Coinbase hits top 30 app in App Store

Gemini Acquires Blockrize to launch BTC credit card

Robinhood to consider giving shares to users in IPO

Institutional

VanEck files BTC ETF

Crypto-friendly Gensler is nominated as head of SEC by Biden

Anchorage receives conditional approval for national crypto-bank charter from OCC

Brian Brooks steps down as Acting Head of OCC

Fireblocks launching staking service

BlockFi launches OTC services

Ecosystem

Tether adopts Hermez Ethereum Layer 2 tech

Optimism (Ethereum Layer 2 tech) launches on mainnet with Synthetix support

Brave browser integrates IPFS

Reddit partners with the Ethereum Foundation

The opinions expressed on this website are those of the authors who may be associated persons of Coinbase, Inc., or its affiliates (“Coinbase”) and who do not represent the views, opinions and positions of Coinbase. Information is provided for general educational purposes only and is not intended to constitute investment or other advice on financial products. Coinbase makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information on this website and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. Unless otherwise noted, all images provided herein are the property of Coinbase.

This website contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of Coinbase, and Coinbase is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. Coinbase is not responsible for webcasting or any other form of transmission received from any Third-Party Site. Coinbase is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by Coinbase of the site or any association with its operators.

Around the Block #11: A snapshot of DeFi and two sides of the crypto regulatory spectrum was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

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angryconnoisseurface · 5 years

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Data Transparency and Fake Trading Volumes — Institutionalizing Crypto

On Feb. 26, the Securities and Exchange Commission announced the rejection of yet another ETF submission from Wilshire Phoenix, a New York-based investment firm, citing a lack of resistance to market manipulation and fraudulent activity. The filing stated that the NYSE Arca had not demonstrated that the market was “designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”

While Wilshire Phoenix aimed to base its ETF both on Bitcoin (BTC) and the United States Treasury bonds to hedge against Bitcoin’s volatility in a hope to break the trend of ETF rejections, the reasons cited by the SEC remain the same: a lack of a surveillance-sharing agreement with a significant market for the underlying asset or a novel demonstration of the market’s inherent resistance to manipulation.

While reactions were mixed even within the commission itself, the decision highlights the need for a more robust and transparent exchange ecosystem. It also highlights the importance of data and its interpretation within the Bitcoin ecosystem. This was one of the topics discussed at the CryptoCompare Digital Asset Summit, hosted in London on March 10, which Cointelegraph attended. The panel focused on data and analysis, and how these two could help bring much transparency to the space and pave the way to institutionalization and regulatory improvement.

Main issues in the Bitcoin exchange ecosystem

The cryptocurrency scene has been, for a long time, regarded as a lawless land, or the “Wild West” of finance. The lack of clear regulatory guidelines and oversight has allowed companies to engage in less than savory tactics to gain market share. This has also been aided by the absence of easy-to-digest information in the crypto space, making it possible for retail investors to be misled by malicious companies.

Crypto exchanges have often relied on volume manipulation in order to boost their visibility and position in the industry. While this has been done in part to attract traders to the platforms — as they often look at volume to understand how liquid an exchange is and how much impact their trades will have on the market — exchanges also use these tactics to attract projects looking to list themselves.

Fundamentally, not only does this hurt users and the projects that are listed on these platforms but it also develops a bad reputation for the cryptocurrency industry as a whole. Institutional investors will stay away from unregulated markets especially when manipulation is rampant. Indeed, this has caused some regulators to crack down aggressively on exchanges as, for example, in 2017, the People’s Bank of China’s actions saw China’s volumes decrease from the absolute majority (>90%) to only a fraction of the global trades.

Related: Countries That First Outlawed Crypto but Then Embraced It

Transparency, when it comes to volumes, is not the only issue found on exchanges. Fractional reserve practices have also been a problem. The infamous Mt.Gox fiasco that led users to lose 850,000 BTC collectively — valued at around $460 million at the time — also demonstrated the need for more transparency when it comes to solvency. Poor security has also been a weak point in the cryptosphere, as many of the top-tier exchanges have been hacked in the past.

While exchanges have been at the heart of some of the biggest issues in crypto, the 2017 initial coin offering craze, along with their resulting losses, also demonstrated a lack of accountability and transparency from projects and token issuers, and they’ve led the U.S. SEC to issue a crackdown on these activities, having filed lawsuits against multiple ICOs.

Volume manipulation, techniques and challenges

According to the panel, fake volume is certainly a common concern in the market but one that will most likely fade away as transparency grows and incentives for faking volume disappear. James Kim, co-founder of CrossAngle, a disclosure platform, said: “In the long run, faking volume is not going to be competitive, either for exchanges or investors.”

Efforts to bring transparency to the market are aided by the inherent public nature of blockchain technology. For example, Flipside Crypto, a research and intelligence firm, looks at on-chain data to analyze the inflow of Bitcoin onto exchanges and match it to the reported trading volumes to detect suspicious activity. Avi Meyers, director of business development of Flipside Crypto, stated:

“[Faking volume] is certainly going to damage the integrity of some of the exchanges, so, obviously, that’s why we’re focusing on it now because we want to increase legitimacy of these trading venues so we can drive institutional investment.”

Chainalysis uses a similar approach to identify fake volume. In a study published last year, the crypto forensics firm looked at 10 exchanges from the top tier and came up with a baseline ratio for reading volume when looking at incoming BTC and BTC being traded. Based on this metric, they found many discrepancies when looking at other exchanges. Although this ratio can serve as a baseline, analyzing the data requires some level of insight on different types of exchanges. Philip Gradwell, chief economist of Chainalysis, explained:

“Some exchanges are largely custodians so they get much more Bitcoin flowing into the exchange relative to the amount of trading they have and then you have some exchanges where people are happy to just leave their crypto on that exchange and just trade all day and so they have a much higher ratio.”

On the other hand, crypto market data provider CryptoCompare looked at off-chain data to determine how exchanges potentially fake volume while also analyzing their order books and other data points to assess reported volume.

Once again, these datasets are not always easy to interpret and are subject to the nuances of the cryptocurrency world. This is the case with novelty venues like zero-fee or transaction-fee mining exchanges. The monthly exchange report published by CryptoCompare in October 2019 demonstrated how these nuances make crypto hard to navigate for those who do not actively follow the space. It reads:

“This [zero-fee or transaction-fee mining trading] might give traders an incentive to trade more to receive more tokens which often have valuable features such as voting rights on the platform or a dividend. Both of the above can effectively lead to wash trading.”

Quality vs. quantity, bringing transparency and trust into crypto

While volume and market capitalization have been, for the most part, the main metric that stakeholders have worried about, new ways of categorizing projects and exchanges are being created to give market participants a better understanding of the ecosystem.

These efforts to find new metrics to evaluate projects include CryptoCompare’s Exchange Benchmark — which ranks exchanges from AA to F based on qualitative data like due diligence and quantitative measures like “market quality based on order book and trade data.”

FlipSide’s Fundamental Crypto Asset Score looks at on-chain and off-chain data to analyze various factors — like “User Activity,” “Developer Behavior” and “Market Maturity” — to rate assets from 0–1,000, and to assign a ranking score from “Superb” to “Fragile,” focusing largely on the first two points rather than the market itself, as the latter only contributes to 5% of the overall score.

Crossangle’s product, Xangle, provides a disclosure and governance system for crypto markets, bringing it up to traditional financial standards like the ones applied in the SEC’s Electronic Data Gathering, Analysis and Retrieval database. Xangle facilitates corporate filings and makes these readily available to the public.

These initiatives, and others like it, create a basis for serious investors to choose trading venues and assets and incentivize exchanges to report volumes accurately, focusing on improving ease of use, security and regulatory compliance. However, there are still some ways to go about this, and in many cases, the methodology may be a work in progress as Jenna Wright, head of LMAX Digital, an institutional spot cryptocurrency exchange and part of the LMAX Group, told Cointelegraph, adding:

“We think that industry players, especially research companies, need to ensure that their research and benchmarking methodologies capture an accurate picture of the market. This means that the methodology, used to measure volumes and market share, needs to be consistent across providers and must ensure it captures the different players in order to offer an accurate picture of the market.”

Data and regulation, a bottoms-up approach

Crypto is a completely new and uncharted territory that opens up a lot of questions for regulators and institutional investors — the latter of whom relies heavily on the former when considering investing in the space. This is another area where data companies are becoming essential as cryptocurrencies are largely misinterpreted by regulatory entities. Kim stated during the panel:

“I think most of the players are expecting governments to come up with clear guidelines to say it’s okay to trade, how to trade, it’s okay to do business in the crypto world, but more likely, I think it will happen the other way around. Governments are not experts, they’re asking the regional players and players who can provide research, who have seen responses from the market and investors to understand what’s happening.”

Data companies and some exchanges have been working with regulators to help them understand digital assets and their associated infrastructure. Chainalysis is known for working with agencies that fight crime to track illegal activity and money laundering. Flipside Crypto uses blockchain data to map wallets to foundations and bring transparency about what entities hold what assets.

CryptoCompare provides data services to a number of regulators, according to James Harris — another member of the panel — and has also publicly launched the Cryptoasset Taxonomy Report, which offers “a framework to help retail and institutional investors, regulators and the industry as a whole gain a holistic understanding of the crypto asset landscape.”

Related: Hester Peirce Says SEC Is a Partner to Crypto, as US States Chase Regulations

While some countries have outright banned crypto or taken other aggressive measures against it, others are working actively to understand and regulate it. When asked about it, the panel unanimously named the U.S. as the most advanced and forward-thinking country when it comes to crypto regulation, also citing other countries like Singapore, the United Kingdom and Germany.

The road to institutionalization

A previous SEC filing regarding the rejection of the Bats BZX Exchange ETF cited a lack of data over Bitcoin’s spot market resistance to manipulation due to arbitrage opportunities.

However, data and transparency, especially when it comes to exchanges, could hold the key for the regulatory approval of a Bitcoin-based ETF which, in turn, can be the start of an institutional-level cashflow into Bitcoin and cryptocurrencies. Gradwell said:

“If you want to get serious money into crypto, you have got to build up their confidence that there are actually good trading venues […] If you’re an exchange and you have good incentives to report real volume, you may actually get institutional money coming in, but if you don’t have those incentives, they’ll stay away.”

Initiatives like the aforementioned ones bring much-needed transparency to the market and allow institutions to access and understand large datasets from the cryptocurrency market — which is quintessential to driving institutional investment. Initiatives by trading venues like Proof of Reserves will also be a driving force despite carrying some security and practicality challenges.

While it’s still unclear how long regulators and institutional investors will take to jump on board the crypto bandwagon, the future looks bright. Institutional demand for regulated trading products seems to exist as signaled by the creation of Bitcoin exchange traded products and blockchain ETFs, and as the crypto world starts to become more aligned with traditional finance standards, this demand will be allowed to grow and to finally materialize into actual market participation. Nevertheless, there is still work to be done as noted by Wright: “The cryptocurrency industry has already gone a long way in disclosing volume data, but there is still a way to go.”

The post Data Transparency and Fake Trading Volumes — Institutionalizing Crypto appeared first on Tip Crypto.

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cryptowavesxyz · 5 years

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Data Transparency and Fake Trading Volumes — Institutionalizing Crypto

Main issues in the Bitcoin exchange ecosystem

Related: Countries That First Outlawed Crypto but Then Embraced It

Volume manipulation, techniques and challenges

Quality vs. quantity, bringing transparency and trust into crypto

Data and regulation, a bottoms-up approach

Related: Hester Peirce Says SEC Is a Partner to Crypto, as US States Chase Regulations

The road to institutionalization

A previous SEC filing regarding the rejection of the Bats BZX Exchange ETF cited a lack of data over Bitcoin’s spot market resistance to manipulation due to arbitrage opportunities.

The post Data Transparency and Fake Trading Volumes — Institutionalizing Crypto appeared first on Crypto Waves.

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coinfirst · 5 years

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Data Transparency and Fake Trading Volumes — Institutionalizing Crypto

Main issues in the Bitcoin exchange ecosystem

Related: Countries That First Outlawed Crypto but Then Embraced It

Volume manipulation, techniques and challenges

Quality vs. quantity, bringing transparency and trust into crypto

Data and regulation, a bottoms-up approach

Related: Hester Peirce Says SEC Is a Partner to Crypto, as US States Chase Regulations

The road to institutionalization

A previous SEC filing regarding the rejection of the Bats BZX Exchange ETF cited a lack of data over Bitcoin’s spot market resistance to manipulation due to arbitrage opportunities.

The post Data Transparency and Fake Trading Volumes — Institutionalizing Crypto appeared first on Coin First.

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coinretreat · 5 years

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Data Transparency and Fake Trading Volumes — Institutionalizing Crypto

Main issues in the Bitcoin exchange ecosystem

Related: Countries That First Outlawed Crypto but Then Embraced It

Volume manipulation, techniques and challenges

Quality vs. quantity, bringing transparency and trust into crypto

Data and regulation, a bottoms-up approach

Related: Hester Peirce Says SEC Is a Partner to Crypto, as US States Chase Regulations

The road to institutionalization

A previous SEC filing regarding the rejection of the Bats BZX Exchange ETF cited a lack of data over Bitcoin’s spot market resistance to manipulation due to arbitrage opportunities.

The post Data Transparency and Fake Trading Volumes — Institutionalizing Crypto appeared first on CoinRetreat.

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noisyunknownturtle · 5 years

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Data Transparency and Fake Trading Volumes — Institutionalizing Crypto

Main issues in the Bitcoin exchange ecosystem

Related: Countries That First Outlawed Crypto but Then Embraced It

Volume manipulation, techniques and challenges

Quality vs. quantity, bringing transparency and trust into crypto

Data and regulation, a bottoms-up approach

Related: Hester Peirce Says SEC Is a Partner to Crypto, as US States Chase Regulations

The road to institutionalization

A previous SEC filing regarding the rejection of the Bats BZX Exchange ETF cited a lack of data over Bitcoin’s spot market resistance to manipulation due to arbitrage opportunities.

The post Data Transparency and Fake Trading Volumes — Institutionalizing Crypto appeared first on For Crypto.

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cryptoevent · 5 years

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How to Trade Bitcoin – Learn Bitcoin Trading

Trading Bitcoin, profitably, has been somewhat of a challenge for many crypto traders, especially beginner traders. To become successful at cryptocurrency trading, one has to garner a healthy amount of knowledge or experience. All that is required is the dedication to become well versed in cryptocurrency, which will invariably help you grow your trading prowess and become a profitable trader.

In this article, we cover the basics of trading Bitcoin, the adoption of healthy trading habits, pitfalls to avoid, Bitcoin CFDs, and every other necessary trading information you will need. Regardless of whether you’re a beginner trader or a professional trader, this article will be more than valuable for you.

Introduction to Bitcoin Trading

Bitcoin trading, simply put, is buying into Bitcoin positions for a relatively short period with the primary aim of making a profit at the sale. Bitcoin trading involves analyzing trends and charts to get an idea of what the market is doing at that moment and predicting what it will do in the next.

Mainly, there are two primary modes for analyzing the Bitcoin market; fundamental analysis and technical analysis; we’ll come to this later.

Why Bitcoin is Valuable

Bitcoin is an investment vehicle that provides an effective means of transferring funds through the internet at lightning speed and is governed by a decentralized network with transparent regulations, thus serving as a suitable replacement for traditional fiat, which makes it a good Store of Value.

In today’s economy, for a currency to indeed be characterized as successful, it has to comply with three main qualities:

It must be free from all control by governments or authorities.

Borders must not bind it so that it can travel freely to any location on earth.

It must be apolitical, meaning it doesn’t favor certain groups or individuals.

All these qualities are inherent in Bitcoin. The crypto giant, which was the world’s first digital currency, derives its value from being the very first currency that cannot be manipulated and is readily available to anyone willing to purchase.

Bitcoin is free from oppression, control, and hyperinflation. It also has a limited supply of 21 million tokens to safeguard against inflation and sustain its value.

In truth, any currency governed by a central bank is not credible considering the big picture. Governments have made it so that their nations’ currency can be manipulated at will. Fiat has become less and less valuable since it was removed from the gold standard.

All the numerous flaws plaguing the fiat monetary system cannot be found on Bitcoin, which makes it superior to fiat.

Bitcoin Trading vs. Investing

In the global markets, Bitcoin included, there are generally two kinds of players involved: traders and investors. Understanding the difference between the two will help you in becoming a better Bitcoin trader/ investor.

“Investing” in Bitcoin involves buying and holding Bitcoin for the long term in hopes or expectations that the value will increase over time. Investors also invest in Bitcoin out of the belief of the technology or team. This class of actors is popularly known as HODLers in the Bitcoin community.

Bitcoin traders, on the other, trade Bitcoin in the short term, for quick profits. Traders, unlike investors, see Bitcoin as an opportunity to make profits. In some cases, they don’t even care for the technology behind it or the team.

That said, some people trade and invest, at the same time, in Bitcoin.

Bitcoin trading has been on the rise in recent times due to various reasons.

Firstly, Bitcoin is extremely volatile. This means that you can make a decent profit in a short period if you correctly predict the next price movement. Furthermore, the Bitcoin market is open 24/7 all year round. This allows for more time to trade Bitcoin whenever you see fit.

Finally, Bitcoin’s decentralized nature and its ease of entry make it very appealing as a trading tool for many.

Bitcoin Trading Methods

There’s no arguing that the primary purpose for trading Bitcoin is to make a profit. There are several methods to achieve this aim in the cryptocurrency market. Explained below are the trading methods involved in Bitcoin trading:

1- Day trading: Day trading, as the name suggests, consists in executing and completing trades within a day. Day traders spend the bulk of their time in front of their screens, analyzing charts and price movement. Day traders always make sure they close all open trades on the same day it was opened.

2- Scalping: Scalping is the attempt of scrapping tiny profits off tiny price movements multiple times to generate substantial profit. Scalping is an extreme short-term trading strategy and is based on the precept that it alleviates the risks involved in trading. Scalpers can conduct hundreds of trades in a single day. However, this trading method has its inherent risks and disadvantages and requires experience and expertise to carry out.

3- Swing trading: Swing trading is a more passive trading approach that takes advantage of the natural swings of price cycles. Swing trading involves identifying market trends, entering and riding the trend, and exiting only when the trend has ended.

Swing traders can hold trades for weeks, months, and even a few years until they achieve the desired outcome.

Fundamental and Technical Analysis Methods

There is no “holy grail” in trading Bitcoin that guarantees a loss-free trading system. Every trader, no matter how experienced, witnesses trading losses at one point or the other. The goal, however, is to have your trading balance in the positive no matter how many losing trades you may have accrued.

There are two general techniques involved in analyzing the global markets, Bitcoin inclusive. They are fundamental analysis and technical analysis.

Fundamental analysis: Involves predicting market movements by evaluating news and events happening with Bitcoin. Macroeconomics are also important factors when carrying out fundamental analysis on Bitcoin.

This analysis method is not concerned with what price may be doing at that moment but is concerned, instead, with outside factors and how they could influence the price.

Technical analysis: This involves the thorough study of the technicalities included in Bitcoin trading. It requires reading and understanding charts, graphs, momentum indicators, oscillators, volume, volatility, and price action to predict the next possible movement of the price.

Trading Bitcoin CFDs

The recent increase in the rage for Bitcoin has caused exchanges to increase the access to the global markets they offer their customers. Particularly, a good number of providers have begun delivering “Contracts for Difference” services on popular cryptocurrencies.

A CFD is an arrangement based on an underlying asset, probably a share, index, commodity or currency pair. Trading CFDs allows you to take advantage of an asset by making speculations on that asset to make a profit, without having to own that asset at any time.

In CFD trading, every point move the price makes in your selected direction translates as a profit for you according to the number of units you traded. Likewise, in a scenario where the price goes in the opposite direction of your selection, you make a loss.

CFD was initially limited to stocks, currencies, commodities, and indexes. However, it is now available for Bitcoin pairs and crypto-fiat pairs.

How Does Bitcoin CFD work?

One of the most remarkable features of trading CFDs is the ability to make a profit by either buying or selling a CFD. Since you don’t own the underlying asset, you are not restricted to just buying that asset, and you could sell it if you feel it is headed for a drop in price.

One important concept you have to comprehend before going into CFD trading is “Leverage.” Leverage can be very advantageous and detrimental at the same time.

To open a CFD trade, you will be required to deposit a small percentage (10%, 2%, or even less) of the trade’s total worth. This is generally known as a “margin requirement.”

For example, assume you open a trade worth $5,000 with a margin requirement of 2%, it means that you need just $100 to make this trade.

Here’s where it gets interesting. Your profit expectation is not based on your $100 deposit but instead, on the $5,000 original worth.

Leveraging allows you to reap more benefits with so little. However, it also amplifies your losses, meaning that there is the possibility of losing more than you deposited for the trade. This risk tendency should be your major concern when trading CFDs.

Even though CFDs trading may seem more daunting than traditional Bitcoin trading, they help you avoid the security-associated risks that come with trading those securities. They also offer the opportunity to make profits in both rising and crashing market situations. However, this advantage comes with a heightened amount of risk.

Pros of Bitcoin CFDs

Listed below are the advantages of trading Bitcoin CFDs:

Margin trading allows for increased profit potential.

You can trade Bitcoin without having to own it.

You don’t need to have accounts on exchanges or own crypto wallets.

You can make a profit in both bullish and bearish markets.

CFD providers tend to provide better customer support.

Cons of Bitcoin CFDs

Greater exposure to margin calls.

You can lose more than you deposit.

Not convenient to hold for a prolonged period.

Heightened volatility.

It is also speculative.

Common Bitcoin Trading Mistakes

If you’ve read up to this point, you should have gotten a feel for how Bitcoin trading works, and you should be ready to test your newly acquired knowledge in the field. However, you need to keep it in mind that trading Bitcoin is a precarious business, and mistakes can be very costly.

Explained below are some common mistakes traders make. Let’s hope you learn from this and avoid making these mistakes yourself. Professional traders can also make a point or two from these warnings.

#1 Mistake – Risking more than you can afford to lose: This is probably the worst mistake you can make as a trader. As explained previously, losses are made once in a while. Every trade you take has a possibility of going against you, so if you’re risking more than you can afford, you’re setting yourself up for s loss… and a margin call.

Also, trading more than you can afford to lose affects you psychologically, which could cause you to make terrible trading decisions.

#2 Mistake – Not following a plan: Some traders make the mistake of not having a precise course of action when trading. They don’t have any entry or exit plans.

To be a successful trader, it is imperative to have a pre-set stop-loss and take-profit area before entering any trade.

#3 Mistake – Keeping money on an exchange: Never leave money on an exchange you’re currently not engaged with. Moving your money on exchanges leaves you open to casualties. The transaction could get hacked, go offline, or go out of business entirely at any time, and if your fund is still on the exchange, you may never be able to recover it.

Instead of leaving your funds idling on an exchange, move it to your offline or online wallet to secure it.

#4 Mistake – Acting based on fear or greed: Two fundamental emotions can control the actions of traders; fear and greed. Anxiety could cause you to close out of a position, that would have been profitable, prematurely. Greed, on the other hand, causes traders to jump on a trade without performing proper market analysis because they don’t want to miss out on that opportunity.

There will always be more opportunities in the future, take your time, and evaluate before executing any trade. A repetition of such actions can lead to the total wipeout of your trading funds. One way to overcome the trap of our emotions in trading is by following our set plan religiously.

#5 Mistake – Not learning from experience: Regardless of whether you had a successful or losing trade, there is always a lesson to be learned. Keep a journal or recorder at hand, and document all your activities.

Should You Trade Bitcoin?

Here are eight reasons why you should, in fact, trade Bitcoin:

1- Bitcoin’s rules are permanent: Bitcoin’s set rule can never and will never be changed. The token distribution plan will go as scheduled, halvings will occur when due, and every other set plan will be executed.

2- Bitcoin will become even more scarce: Because of how rapidly the adoption of Bitcoin is, it is sure to become more limited in the future. Scarcity is also a method Bitcoin utilizes in sustaining its value.

3- Bitcoin is transparent: Bitcoin is more transparent than the Federal Reserve or any other traditional currency.

4- Bitcoin cannot be censored: It cannot be censored even in strictly regulated countries like China, Brazil, and Russia, mainly because of its decentralized nature.

5- Transferring Bitcoin incur low charges: Unlike fiat, transferring Bitcoin across borders is unbelievably cheap.

6- Bitcoin regulation is becoming more developed: In its inception in 2009, Bitcoin was not regarded by any authority because it wasn’t considered to be valuable. However, nations are clamoring to control or regulate the entity, which is a clear sign of how expensive it is and is becoming.

7- Bitcoin creates the opportunity to make a profit: Profit can be made by trading the security or by merely holding it long enough for its value to increase.

8- Bitcoin is a better alternative to gold: It has become apparent that we’re now in a digital era, and digital currencies are the currency of the future, and gold, unfortunately, will be left in the past. Bitcoin is considered to be an even better Store of Value than gold.

Now that you’ve seen the pros of buying Bitcoin, It is also imperative to be aware of the possible downsides of buying Bitcoin. Here are some reasons to consider:

1- Bitcoin could suffer technical obsolescence: As the digital world advances, better alternatives to Bitcoin could arise, causing Bitcoin to become obsolete.

2- Bitcoin is still in its development phase: The stocks and bonds market has been around for over 300 years, which is a huge difference compared to Bitcoin’s tiny ten years in existence.

3- Bitcoin could be taken down by a coordinated government attack: If all the top economies of the world were to collectively crackdown on Bitcoin, there’s no telling what catastrophe it could spell for the cryptocurrency.

Frequently Asked Questions (FAQs)

Q- How do I trade Bitcoin?

A- To begin trading Bitcoin, you need to follow these simple steps:

1- Open an account with a Bitcoin-supported exchange.

2- Verify your identity.

3- Make a cash deposit into your live account.

4- Make your first trade.

Q- Is day trading a good way to make money?

A- Trading cryptocurrencies can be very profitable, and there are several trading methods to adopt.

While trading Bitcoin can be a sure way to make money, facts have it that 90% of people that go into trading quit in the first 3 months.

Final Note

In my opinion, trading Bitcoin can be very challenging, and as stated in this article, the percentage of people who quit trading after the first few months is alarming. That said, to succeed in this intimidating market, you need to build your trading knowledge, skill, and experience.

Another note of warning goes to those who are looking to trade Bitcoin as a get-rich-quick scheme. Bitcoin doesn’t work like that, and it is advisable to stay away entirely from it if this is your expectation.

#Crypto #Bitcoin

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awesomeblockchain · 6 years

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Before we jump on analyzing blockchain technology's impact on hospitality, let's quickly review what this new technology and some of its more popular applications are all about.

Blockchain is an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. Blockchain operates as a continuously growing list of records, called blocks, which are linked and secured using cryptography/secure communications. Each block typically contains a cryptographic hash of the previous block, a timestamp and transaction data.

To be used as a distributed ledger, a blockchain is typically managed by a peer-to-peer network (so-called miners or ledger keepers), collectively adhering to a protocol for validating new blocks. These miners use specialized software to verify the transactions, which consumes tremendous amounts of power. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks (Wikipedia).

Blockchain vs. Bitcoin: Blockchain and Bitcoin are two completely separate terms, though they are being mixed by many authors and in many publications. Bitcoin is one of the many applications of using blockchain technology, while blockchain is the underlying technology platform enabling cryptocurrencies, i.e. artificial digital currency not affiliated with a bank or a national currency issuing institution, such as Bitcoin. Unlike traditional currencies such as the US dollar, which is backed by the full assets of the US government, which are worth an estimated $269.6 trillion, cryptocurrencies are not backed by valuable assets like gold deposits, land, natural resources, etc.

Blockchain technology may have application in loyalty programs and contracting-here we will focus only on its much-hyped use in hotel distribution. Blockchain has been described in some publications, including in the Nasdaq article quoted above, as the -future of hotel distribution."

The authors claim that the main advantages of blockchain distribution are not that this technology introduces tremendous efficiencies in the very archaic hotel distribution space, or that it eliminates the long chain of legacy systems interacting with each other (PMS, CRS, etc.). Rather, the one and only advantage cited in all publications is that blockchain enables -commission-less" distribution-i.e., free distribution-and does this securely.

However, there should be a high level of skepticism that at this stage blockchain technology can be used successfully for hotel inventory distribution. Here is why:

Hotel Legacy Technology:

Any blockchain player has to tackle the complexity of hospitality technology, consisting of many moving parts, including old legacy systems that are barely functioning, co-existing with ultra-modern, next-gen apps and promising AI and blockchain implementations. Where do you start? Deep integrations/two-way APIs are needed with legacy systems like PMS, CRS, Hotel Switches, GDS, and Channel Managers in order to build real-time hotel inventory availability and pricing connectivity with hotel chains, mid-size and smaller brands, and independents.

Just building an OTA-type CRS with RMS, digital and video content and personalization capabilities, fully interfaced with the numerous legacy systems in travel, would cost any blockchain player that enters the space billions of dollars and take many long years to develop.

A blockchain distribution system has to interface with many of these legacy systems, which means a big investment in API development and ongoing maintenance. It also means that the hotel will continue to incur transaction fees from CRS, website booking engines, and more, so where are the savings?

To achieve any -commissionless" distribution, the blockchain system needs to replace all of these legacy systems, not just interface with them. Who will pay for this huge investment? Where would a blockchain distribution system recuperate its investments in APIs, ongoing API management, or completely replacing the legacy distribution systems?

Hotel Supply:

Gaining access to hotel inventory is a major barrier to entry in online travel. It's all about reach: How will a blockchain booking system get access to 750,000 hotels to match the reach Booking.com already has? Or Expedia's 685,000 hotels? How long would it take for a blockchain player to establish the deep hospitality industry expertise and relationships developed by the OTAs for over 20 years now? Hospitality is a relationship industry that is very hostile to new entrants and vendors.

Instant Reservations:

Most of the hotel reservations today require instant confirmations for all website, mobile app, voice channel, OTA and GDS bookings. Due to the very definition of blockchain, each transaction must be verified by the miners of the blockchain distributed network. Unfortunately, -instant" and -confirmation" do not go hand in hand for any blockchain technology application.

Here is a case study from the most advanced blockchain application: Bitcoin, where the average Bitcoin transaction generally needs six confirmations from miners before it's processed. According to CoinCentral, the average time it takes to mine a block is 10 minutes, so you would expect a transaction to take around an hour on average. However, the recent popularity boom of Bitcoin has caused severe congestion on the network; the average time for one confirmation has recently ranged anywhere from 30 minutes to over 16 hours in extreme cases.

Travel consumers will not wait 16 hours to get a confirmed hotel reservation, that's for sure.

Highly Fluid Hotel Inventory:

Hotel inventory is highly fluid and riddled with transient reservation changes and no-shows, re-bookings, and group cancellations. Many hotels experience reservation changes and no-shows to the tune of 15%-30% of occupancy on any given night. This inventory fluidity is in stark contrast to the permanent character of any blockchain transaction. Once the transaction (hotel booking) is recorded on the blockchain, it cannot be altered retroactively without the alteration of all subsequent blocks. So how will hotel bookers be able to update their reservation, change the arrival or departure date, add another guest to the reservation, or upgrade their room if their reservation is set in stone? Make a new reservation that will take up to 16 hours to verify?

Transactions vs. Content:

Hotel reservations require more than simple verifications by blockchain miners. Hotel reservation systems, in addition to carrying real-time hotel inventory availability and pricing, serve as huge depositories of content: rate information and descriptions, booking terms and conditions, hotel and room amenity descriptions, and visual content. Content is definitely not a strong suite for any blockchain platform, which is primarily transaction oriented.

Economics of the Blockchain Distribution System:

As mentioned, blockchain is being promoted as -commissionless," i.e., no cost to either hotels or travel consumers. Yet, any hotel distribution system needs huge investments in order to function and serve its core purpose:

If the blockchain distribution system does not charge any commission, where would the money come from to pay for all the above? The economics simply does not work.

Blockchain Distribution and Payment Security:

Blockchain transactions have been promoted as super secure. This is crucial for any hotel distribution system. In fact, the perceived security of transacting via blockchain technology has been continuously discredited by many cases of hackers successfully targeting cryptocurrencies.

As of today, more than 3 million bitcoins have been lost to hackers, scammers and crypto thieves. -All the hackers in the world are targeting cryptocurrencies," Eric Larcheveque, CEO of cryptocurrency security company Ledger Wallet, said recently. In a much-publicized case, Steve Wozniak, the co-founder of Apple, had $70,000 in bitcoin stolen after falling for a simple, yet perfect, scam. CNBC offers an interesting read on the subject.

The much-promoted use of blockchain in hotel distribution is another affirmation that we are an industry of buzzwords. Many people are getting overly excited by these new technologies and their perceived -magic wand" ability to solve industry deficiencies.

Before we all jump on the blockchain bandwagon, the industry needs to deal with the fundamentals in distribution first, including optimizing the direct channel, fixing an outdated property website, improving SEO, launching multichannel campaigns, and finally doing something about CRM to better engage and retain customers, among other initiatives.

Only then would it be advisable to start thinking about all the new fancy technologies out there by partnering with smart vendors who are already working on the subject matter.

ABOUT HEBS DIGITAL:

Founded in 2001, the firm is headquartered in New York City and has global offices in Las Vegas, Tallinn, Munich, and Asia-Pacific. Through its Smart Guest Acquisition Suite, including the smartCMS(R), Smart Personalization Engine, Smart Data Marketing, and full-service digital consulting and marketing solutions, HEBS Digital helps hoteliers drastically boost direct bookings, lower distribution costs, and increase the lifetime value of guests. Its diverse client portfolio consists of top-tier luxury and boutique hotel chains, independent hotels, resorts and casinos, franchised properties and hotel management companies, convention centers, spas, restaurants, DMO and tourist offices.

Part of NextGuest Technologies, HEBS Digital and Serenata CRM, the most comprehensive Hotel CRM Suite today, are the creators of the hospitality industry's first Fully-Integrated Guest Engagement & Acquisition Platform.

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#Ingentium #Inc. - Today

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gdccoin-blog · 6 years

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Investing In Cryptocurrencies For Bright Future!

The most happening thing ever in this decade is the digital currencies. Over the last five years, they have started populating at a speed which is revolutionary. It is just not merely their existence; the kind of remarkable attributes they contain makes them the subject of interest. The noise created by their ever-growing, the exponential price is drawing attention. To add, advanced technology and a decentralized ecosystem, with the feature of anonymity and fast settlement, are the reason for their amplification.

Regular Shares Vs Altcoin Investment

Globally, an investment in altcoin is the topic of debate and it finds that space because it is different from traditional investment done in the company. Investing in regular stocks is actually buying small units of the company you are investing in. You buy shares of that company and depending on its performance you gain or lose. With Cryptocurrency investments, you actually receive digital tokens, and power to run decentralized apps and smart contracts. Trading of cryptocurrencies occurs, in exclusive Cryptocurrency Exchanges only, like- GDAX, Kraken and much more.

The following are few points which can be compared between the two to understand the difference in a better way.

A. Return Perspective: For traditional venture capital the horizon is seven to ten years, whereas for Cryptocurrency token powered investing has a shorter horizon of one to five years only.

B. Model: The ownership is in the form of preferred shares in traditional investing. In case of Cryptocurrency, it is shares, tokens, or Cryptocurrency.

C. Entry Phases: While you can purchase them from the company in case of Cryptocurrency, in case of traditional investing it is usually Angel, Seed, or an early to late stage entry.

D. Exit Method: It is normally acquisition and IPO with traditional investing and acquisition, ICOs or via Cryptocurrency Exchange listings.

E. Business Model: In traditional case, the companies sell product or services. In case of Cryptocurrencies, a circular economy is created with its own token.

F. Legality: Usually n traditional venture capital the businesses are “Limited Liability Companies” (LLCs) or are governed by corporate laws. But in Cryptocurrency investing the LLCs create technology and runs the separate business. It may also operate as non-registered DAO or Decentralized Autonomous Organizations.

G. Fund Currency: It is fiat currency for traditional investment and in case of Cryptocurrency it is either altcoin or fiat currency.

H. Approach: a Market approach for traditional investment is creating new models or support the current one. It is always creating a new business model for Crypto investments.

Why explore Cryptocurrency Investment?

On the first instance, you may ask the reason for Cryptocurrency investments. In that case, you must study the following trends and facts.

1. Cryptocurrency Jobs:

Though unbelievable, it’s a fact that nearly 2000 jobs exist in the Cryptocurrency industry across the globe. The astounding figures for Asia-Pacific are 720 jobs, and for Latin America, it is 105 jobs. This is a clear indication that this industry has already started flourishing, at a stage where global unemployment is aggravating day by day.

2. High density of employees at Exchanges:

The need for technically sound manpower, who can work on the blockchain technologies are in high demand at the Cryptocurrency Exchanges. At an average around 13% of the employed people constantly are handling the cybersecurity task.

3. Number of Cryptocurrency Exchanges:

There are around 120 Cryptocurrency Exchanges across the globe with a maximum in European region- approximately 37%.

4. Active Cryptocurrency Wallets:

There are around 11.5million active Cryptocurrency Wallets which are storing altcoins. Of these around 20% wallets can be linked to credit card services, clearly showing that they are used for personal purposes. It is also believed that 52% of the wallet service providers offer integrated currency exchange facilities to their users. This shows that the wallets are just not held for storing Cryptocurrencies.

5. New Entrants:

Lot of new entrants is venturing into the industry and the best part is they are being accepted with open arms. The same can be claimed by the exponential growths they have shown in recent past for example- Dash and Monero.

The point to be noted is if you do not invest in Cryptocurrency, you might stay behind and repent later when the ball rolls faster and gains momentum.

The following are the top blockchain stocks and companies you might think of investing in if you are already into the ecosystem.

BTCS

Global Arena Holding

DigitalX

BTL Group

Coinsilium Group

First Bitcoin Capital

Once you have decided to invest in Cryptocurrencies you just a few more things to keep in mind and they are-

Be aware that prices swing and are very common,

Invest safely and securely,

Fluctuations are perception based, therefore you must be extra cautious while investing,

Keep learning new trading techniques to grasp the trading psychology and language of the market.

#GDC Coin #gdc coin exchange #dogecoin pool #gbc gold coin #tesla coin gdc #GDC Coin Wallets

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tortuga-aak · 7 years

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Robo Advisors vs. Human Financial Advisors: Why Not Both?

MyPrivateBanking

After the strong growth of the robo advisory approach in recent years, promoted by numerous start-ups worldwide as well as sizeable number of early adopting wealth managers, a new ‘sub-species’ has emerged: the hybrid robo/personal contact service, which adds a substantial software component to human interaction in the client advisory process.

This is a key finding of MyPrivateBanking's latest report "Hybrid Robos: how combining human and automated wealth advice delivers superior results and gains market share".

Robo Advisors vs. Human Financial Advisors

Robo-advisors have begun to distinguish themselves into three models, but they each have the same goal. Standalone companies such as Betterment (the most popular U.S. robo-advisor) use algorithms to recommend stocks and manage portfolios. Hybrid robo-advisors combine computerized recommendations with on-demand advice from a human being. And advanced standalone companies leverage more complex algorithms to create and actively manage portfolios.

Robo Advisors for Advisors

In MyPrivateBanking's view, hybrid robo advisory strategies represent a paradigm shift in the pace and path of change in the wealth management industry. MyPrivateBanking estimates that hybrid robo services will by 2020 grow to a size of USD 3,700 billion assets worldwide; by 2025 the total market size will further increase to USD 16,300 billion. This number constitutes just over 10% of the total investable wealth in 2025.

By comparison,“pure” robo advisors (completely automated without personal service added on) will have a market share of 1.6% of the total global wealth at that stage. The report includes a projection for the market size and growth globally of Hybrid Robo Advisor and pure play robo advisor, including a breakdown between North America and the rest of the world, and a split by the retail and affluent wealth and the HNWI/UHNWI segments.

Hybrid robo solutions are a dynamic and also unstable new phase in the wealth management industry’s transformation. MyPrivateBanking expects 2016 to be a year of significant developments – several major players have announced that they will reveal their hybrid offerings in the course of the year and many more wealth managers are currently working through the issues of hybrid robo adoption. The institutional players entering the robo advisors markets and their offerings are analyzed in detail in the report.

Hybrid Solutions will impact many financial services sectors

The drivers for hybrid robo innovation will come from several different sources within the global financial industry. For a start there is is the inspiration derived from the original robo advisor services. To this must be added the new opportunities that have arisen following the launch of a substantial range of new B2B technology providers, some focused only on the banking and wealth management industries and others with a broader scope.

The next 12 to 18 months will provide numerous demonstrations of the impact of the new (white label) technology providers and robo/conventional partnering on wealth management. In particular, as this report’s case studies show, the resulting hybrid wealth management solutions will spring up in a number of different parts of the global finance industry. Furthermore, with the help of robo technology, MyPrivateBanking expects to see a significant increase in quasi-wealth management services from sections of the industry that have been considered as distinct from wealth management, such as pension providers, fund managers and retail banks.

The robo model of investment portfolio management will be good enough in the eyes of a larger proportion of investors than the wealth management industry itself yet seems ready to recognize. Moreover, hybrid robo advisory services will increase the efficiency of advisors, in terms of numbers of clients served per professional, and the increasing numbers of hybrid solutions will also have a significant downwards effect on the client charges the market will bear.

Wealth managers should implement robo advisors solution fast, but thoughtful

The report highlights 20 different recommendations for consideration by wealth managers in weighing up hybrid robo opportunities, among them:

Wealth Managers should be wary of assuming that one or more robo advisory elements can be just ‘added on’ to an existing service.

Especially in the retail and affluent segments, tie-ups with non-financial retail services of various kinds will be of increasing importance for the success of robo advisory client recruitment.

For most wealth managers the path to a hybrid solution will have several stages; this is fine but clients’ awareness of the capabilities of automation will be increasing rapidly in the next few years.

In the higher wealth segments, wealth managers who automate ‘behind the scenes’ processes will be best placed to introduce client facing robo elements when they’ve established their client-base is ready.

This rigorous and detailed report tells you all you need to know for assessing this new stage in the evolution of robo advisors, the strengths and weaknesses and lessons to be learned from of a selection of existing hybrid robo advisor innovators and the implications for conventional wealth managers. This report makes a deep analysis of what constitutes ‘hybrid robo’ and draws out the important characteristics of this developing field. This is complemented by the MyPrivateBanking’s market projections exercise and together both give readers a clear idea of the scale of change that is underway.

In addition, in order to illustrate different types of hybrid robo solutions, five case studies of hybrid robo innovators are included that provide insights into different ‘pathways’ to hybrid solutions. The report’s recommendations chapter provides five outline strategic goals for hybrid solutions together with a larger number of detailed considerations for wealth managers preparing to implement a hybrid strategy.

For the report, the MyPrivateBanking analyst team covering the robo advisor development from its beginnings (see previous reports here) has further researched the leading trends (and providers) and engaged in discussions with service and technology providers as well as industry experts and wealth managers.

The report gives wealth managers, robo advisors, banks, IT-vendors and consultants answers to the following questions:

What constitutes a ‘hybrid robo’ and which are the most important characteristics? What are the different ‘pathways’ to hybrid solutions?

What is the status of the robo advisor market (full robo advisors and hybrid robo advisors) and how will it develop over the next 10 years?

How will the growth of the Hybrid robo advisor be differentiated by the retail and affluent wealth segments and the HNWI/UHNWI segments.

What are the learning points for wealth management from the hybrid solutions of five different institutions?“

Which features and functions should hybrid robo advisor solutions have to satisfy the needs of clients?

What are the implications of the hybrid robo advisor model to traditional wealth managers? How can they counter the threats? How can they benefit?

Main Content

Institutional players entering the robo advisors markets and analysis of their offerings

Hybrid Robo Advisor and pure play robo advisor market size and growth globally, including a breakdown between North America and the rest of the world

Hybrid Robo Advisor market size and growth split between the retail and affluent wealth segments and the HNWI/UHNWI segments.

Five detailed case studies of hybrid robo solutions incl. Schwab Institutional Intelligent Portfolios, Investec and Jemstep, and Hedgeable

Recommendations on elements of human interaction that can enhance robo advisors so as to win more clients

20 recommendations for conventional wealth managers (for all wealth segments) to benefit from the opportunities that hybrid robo advisors present

>>Click here for Report Summary and Table of Contents<<

Here's how you get this exclusive Robo Advisor research:MyPrivateBanking

To provide you with this exclusive report, MyPrivateBanking has partnered with BI Intelligence, Business Insider's premium research service, to create The Complete Robo Advisor Research Collection.

If you’re involved in the financial services industry at any level, you simply must understand the paradigm shift caused by robo advisors.

Investors frustrated by mediocre investment performance, high wealth manager fees and deceptive sales techniques are signing up for automated investment accounts at a record pace.

And the robo advisor field is evolving right before our eyes. Firms are figuring out on the fly how to best attract, service and upsell their customers. What lessons are they learning? Who’s doing it best? What threats are traditional wealth managers facing? Where are the opportunities for exponential growth for firms with robo advisor products or models?

The Complete Robo Advisor Research Collection is the ONLY resource that answers all of these questions and more. Click here to learn more about everything that's included in this exclusive research bundle.

NOW WATCH: RAY DALIO: Bitcoin is a speculative bubble

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bitcoinegoldrush · 7 years

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Industry Experts Believe Bitcoin Headed to $6,000

There’s an old saying, “Don’t let the fox watch the henhouse.” This may well be true when it comes to crypto-industry insiders and their opinions about the price of Bitcoin. But whether anti-Bitcoin fanatics like it or not, the price is steadily climbing toward the $6,000 mark.

Bitcoin liquidity, adoption

With the price of Bitcoin climbing toward the elusive $6,000, the reasons behind this rise are a point of contention. With the industry in an uproar, some market leaders link the rise in price to the increase in Bitcoin liquidity. For example, Luis Cuende, cofounder of Aragon said:

“I think the rise in Bitcoin prices reflects the enthusiasm that the public has into Bitcoin being a digital currency and new technical solutions like SegWit, that enable more scalability and new solutions for instant payments.”

Not everyone thinks that Bitcoin is a good choice for currency, especially since prices fluctuate so rapidly and massively. Nevertheless, in countries like Argentina, where the fiat currency is effectively valueless, Bitcoin may well be the only option. According to David Henderson, Founder of Sweetbridge:

“A quick look at Bitcoin’s price history (the two pizzas famously ordered by a developer for 10,000 BTC in 2010 would be worth about $30 million each today!) shows the challenges in using this as a transactional currency or as collateral, as the fluctuations are significant and frequent, unlike most fiat currencies. That said, it can provide an alternative in countries where the local currency is heavily controlled, restricted and subject to very high inflation.”

Bitcoin vs. gold, other assets

Additionally, beyond the liquidity issue, Bitcoin is also carrying its weight as an asset in itself, and has even been suggested as a reserve currency. According to Yonatan Sela, SVP Business Development, YouNow:

“The soar in the price of Bitcoin isn’t surprising, and I expect that while price fluctuations will continue, in the long term Bitcoin will continue to rise in price far beyond $6,000, especially if you buy into the thesis that Bitcoin could become the prominent digital reserve currency. The main reserve currency in the world is gold, with a market cap of ~$7 trillion USD. Bitcoin is currently at ~$94 billion which is less than 1.5% of that. Even if it stays just 2% of gold, it will surpass the $6,000 price point.”

Other leaders were quick to point out that the asset characteristics of Bitcoin are only just now becoming mainstream. As more and more people discover Bitcoin, the price will only trend higher.

In fact, the fear, uncertainty and doubt (FUD) caused by comments from Jamie Dimon, Larry Fink and others simply adds to public awareness, which in turn drives up prices. Per Serafin Lion Engel, CEO and Founder of DataWallet :

“Bitcoin proves to be an antifragile asset which, due to its characteristics of immutability, transparency, and disintermediation, thrives in a world of ever-increasing political and socio-economic uncertainty. Comments, such as Jamie Dimon’s, drive the Bitcoin hormesis we are currently witnessing, where adversarial comments by renowned beneficiaries of the current centralized system simply add to the strength of the Bitcoin ecosystem. Furthermore, it also simply boils down to exposure: The more people hear that about Bitcoin, the more people will adopt Bitcoin since its benefits over the past financial system are so abundantly clear.”

However, most industry experts see that the power of Bitcoin is not only in its technology, but in its longevity. As the oldest and most stable cryptocurrency, it has the trust of the digital currency community. Eyal Herzog and Galia Benartzi Co Founders of Bancor said:

“What’s interesting here to remember is that Bitcoin has at least 4 years of momentum accumulation before Ethereum. This is a great reminder that real value networks don’t just spike into existence. They take time and dedication to build and take real root. We should keep this in mind as we look at new alt coins and somehow expect them to skyrocket in days or weeks.”

Bitcoin instability and volatility

In spite of the huge run up in price over the last few days, the value of the cryptocurrency may well see substantial volatility. Even if Bitcoin does hit $6,000 (which appears quite likely), the price may see another massive drop, just as it did when the $5,000 price point was first touched. Further, any negative news may cause some unrest in the price. According to Bharath Rao, CEO of Leverj

“The Bitcoin price has moved from under $1,000 at the beginning of the year to around $6,000. The price should certainly be expected to fluctuate quite a bit, both due to the uncertainty and promise of new technology. We believe that Bitcoin is not yet mainstream and will continue to grow in value as more financial use cases move to crypto. Buying and holding Bitcoin has outpaced every single traditional investment since 2009 and is likely to continue to do so for several years.”

Bitcoin long term?

Among experts, most see the strength of Bitcoin being assured, at least in the short term. While anti-Bitcoin pundits may critique the platform, the reality that Bitcoin has achieved some consensus for mainstream acceptance is clear. According to Rob Viglione, Co-Founder of ZenCash:

“It’s always tough to say what’s driving prices, but what we do know is that there’s more demand for Bitcoin now than ever. A big part of that is due to the fact that it has steadily achieved more mainstream credibility and that there’s now a robust global conversation. For those of us who study cryptocurrency characteristics, there’s growing consensus that we’re witnessing the birth of a new asset class, and that’s huge.”

However, many see fundamental flaws within the structure of Bitcoin technology – particularly with block creation. The continued production of blocks depends on substantial electrical use and huge output of resources. Some say that Bitcoin, with its Proof of Work (PoW) protocol, may well be overtaken by other altcoins with the Proof of Stake (PoS) protocol. Technical experts see a need for change, like Lior Yaffe Core Developer at NXT ARDOR:

“The recent increase in Bitcoin’s value is likely due to it being the de-facto exchange currency between the fiat and crypto worlds, much the same as the US dollar is between fiat currencies. It is quite obvious that Bitcoin is not going to replace any fiat currency any time soon due to scaling issues and the waste generated by the POW process. Going forward I predict that most innovation in the crypto world in the mid to long term will take place on POS based blockchains, but being the bridge between the worlds gives Bitcoin a huge short term boost.”

The move toward $6,000 is not only encouraging because of the price point for Bitcoin holders. To some industry experts, the price shift is really reflective of the power of Bitcoin and Blockchain technology to truly change the world. According to Carl Bennetts Co-Founder of Status.im:

“Reaching milestones against fiat currency certainly aren’t inconsequential, but what’s far more interesting to me is the long term trend at play, and what this signifies for the future of blockchain technologies. While 6,000 USD certainly reflects some market maturity, what’s truly exciting is that we’re slowly edging towards mass-adoption, a world of true financial self-sovereignty, and an open financial system that brings fair access the anyone with an internet connection.”

Generally, the consensus among industry leaders is that the Bitcoin bull will continue to run, and $6,000 will be achieved.

Article Source

The post Industry Experts Believe Bitcoin Headed to $6,000 appeared first on Bitcoin E-Gold Rush.

#Bitcoin #Bitcoin news

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abigailswager · 7 years

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Litecoin vs Bitcoin | the differences between these 2 Cryptocurrencies.

New Post has been published on https://onlinelitecointrading.com/litecoin-vs-bitcoin-differences/

Litecoin vs Bitcoin | the differences between these 2 Cryptocurrencies.

Litecoin and Bitcoin can be spoken in one sentence and many people do not yet understand what set them apart. and yet they are not the same. See them as Brothers with Bitcoin being the Big brother of the Two. that said as a little brother myself , i am sure you agree that also we have our uses.

Lets Start to explain Litecoin vs Bitcoin

Back In 2009, a janapense programmer going by the name Satoshi Nakamoto launched bitcoin as the world’s first cryptocurrency or atleast that is what is believed , since then many pother rumours and scenarios have surfaced , but it matters less tothe current situation.

The code of the Bitcoin was and still is open source, this means in laymans terms that it can be changed and altered by anyone and to be used for any project they see fit. that was the start of many other digital currencies that used this original code to create their own cryptocurrency . some were made successful other not so much.

Litecoin was build and designed like the robin to Batman, not to just replacve them but to assist and in its own terms become successful.

Litecoin vs Bitcoin | The crucial difference between bitcoin and litecoin.

bitcoin litecoin Coin limit 21 Million 84 Million Algorithm SHA-256 Scrypt Mean block time 10 minutes 2.5 minutes Difficulty retarget 2016 block 2016 blocks Block reward details Halved every 210,000 blocks. Halved every 840,000 blocks Initial reward 50 BTC 50 LTC Current block reward 25 BTC 50 LTC Block explorer blockchain.info block-explorer.com Created by Satoshi Nakamoto Charles Lee Creation date January 3rd, 2009 October 7th, 2011 Market cap $10,467,596,650.78 $540,274,528.26 Bitcoin Statistics Litecoin Statistics

Litecoin vs Bitcoin Mining differences

Just like bitcoin, litecoin is a crytocurrency that is generated by mining. Litecoin was created in October 2011 by former Google engineer Charles Lee. The motivation behind its creation was to improve upon bitcoin. The key difference for end-users being the 2.5 minute time to generate a block, as opposed to bitcoin’s 10 minutes. Charles Lee now works for Coinbase, one of the most popular online bitcoin wallets.

Litecoin Mining

ASIC Mining

For miners and enthusiasts though, litecoin holds a much more important difference to bitcoin, and that is its different proof of work algorithm. Bitcoin uses the SHA-256 hashing algorithm, which involves calculations that can be greatly accelerated in parallel processing. It is this characteristic that has given rise to the intense race in ASIC technology, and has caused an exponential increase in bitcoin’s difficulty level.

“scrypt algorithm“

Litecoin, however, uses the “scrypt algorithm” – originally named as s-crypt, but pronounced as ‘script’. This algorithm incorporates the SHA-256 algorithm, but its calculations are much more serialized than those of SHA-256 in bitcoin. Scrypt favors large amounts of high-speed RAM, rather than raw processing power alone. As a result,”scrypt” is known as a ‘memory hard problem’.

The consequences of using “scrypt” mean that there has not been as much of an ‘arms race’ in litecoin (and other scrypt currencies), because there is (so far) no ASIC technology available for this algorithm. However, this is soon to change, thanks to companies like Alpha Technologies, which is now taking pre-orders.

GPU mining

To highlight the difference in hashing power, at the time of writing, the total hashing rate of the bitcoin network is over 20,000 Terra Hashes per second, while litecoin is just 95,642 Mega Hashes per second.

Current Mining activity

For the time being, ‘state of the art’ litecoin mining rigs come in the form of custom PCs fitted with multiple graphics cards (ie: GPUs). These devices can handle the calculations needed for scrypt and have access to blisteringly fast memory built into their own circuit boards.

There was a time when people could use GPU mining for bitcoin, but ASICs have made this method not worth the effort.

Transaction differences Litecoin vs Bitcoin

The main difference is that litecoin can confirm transactions must faster than bitcoin. The implications of that are as follows:

Litecoin can handle a higher volume of transactions thanks to its faster block generation. If bitcoin were to try to match this, it would require significant updates to the code that everyone on the bitcoin network is currently running.

The disadvantage of this higher volume of blocks is that the litecoin blockchain will be proportionately larger than bitcoin’s, with more orphaned blocks.

The faster block time of litecoin reduces the risk of double spending attacks – this is theoretical in the case of both networks having the same hashing power.

A merchant who waited for a minimum of two confirmations would only need to wait five minutes, whereas they would have to wait 10 minutes for just one confirmation with bitcoin.

Transaction speed (or faster block time) and confirmation speed are often touted as moot points by many involved in bitcoin, as most merchants would allow zero-confirmation transactions for most purchases. It is necessary to bear in mind that a transaction is instant, it is just confirmed by the network as it propagates.

Litecoin vs Bitcoin Summary

Both Bitcoin and Litecoin are deflationary.

Litecoin payment confirmations are faster.

Litecoin is more adaptive to technical up-scaling.

Both coins can compliment each other.

Comparing two stocks to find out the relatively better value buy is quite easy for a traditional research analyst who deals with equity market. The number of parameters available for comparison is wide and time tested, starting from a simple quarterly result’s net profit to complex ones like debt equity ratio, PE, trailing EPS etc.

Let us first discuss about the similarities

Stocks are categorized by its market capitalization and industry to make the study more focused. But when comes to crypto world, we don’t have any time tested parameters to filer out the naked ones from others which are promising and disruptive in nature. So an investor who decided to invest in crypto currencies have to overcome this black-hole by using some simple traditional techniques which requires normal IQ level only. Let us first discuss about the similarities between these two coins and then step in to future outlook of Litecoin.

1.Both Bitcoin and Litecoin are deflationary

These crux behind the deflationary nature is simple defined by the demand supply logic in basic economics. The supply of both these coins will be tapered in coming years and at the same time demand will be increasing if something catastrophic is not happening in crypto space.

Bitcoin will have 21 million coins in its entire life span and Litecoin will have 84 million, which is exactly 4 times that of Bitcoin. Considering the fact that in early days, people gave little importance on secure storage, millions worth coins were lost which cannot be recovered by any chance. This is the reason why both of these coins are considered deflationary in nature. The current supply of Bitcoin is nearly 16.4 million whereas Litecoin has 51.85 million coins in circulation.

“When I released Litecoin there were a lot of other cryptocurrencies that were pre-mined by founders wanted to be super rich. I preannounced Litecoin on Bitcointalk, so people could mine it from the get go. It was more widely distributed from the start than Bitcoin.” Charlee Lee, Litecoin founder

2. Litecoin payment confirmations are faster

The block generation time of Bitcoin is 10 minutes and Litecoin is 2.5 minutes. In simple terms, it means that transactions are confirmed 4 times faster in Litecoin. The downside of smaller block generation time is, it is easy for reversal of transaction compared to a larger block. Since the value of Bitcoin is high, Litecoin’s future lies in using it for small transactions as the transaction fees associated is negligible compared to Bitcoin’s transactions.

Litecoin has a large economy and our technology works on Litecoin with almost no changes. We like ethereum too, but ethereum is too different from bitcoin for us to easily switch. Litecoin has the best combination of economic size and technical similarity to bitcoin. On Litecoin, transaction fees are only a few cents. This means users can comfortably load only $1 onto our network while still paying negligible fees. This is a radically lower barrier to entry compared to $100 for bitcoin. Litecoin is one hundred times better for our application today than bitcoin. Ryan X. Charles, Yours

3. Both coins are based on “Proof of Work” concept.

The coin rewarding functionality of both Bitcoin and Litecoin are based on the concept of proof of work, though their algorithms differ. Bitcoin is using SHA-256 and Litecoin is using scrypt algorithm. SHA-256 is a complex algorithm and data block processing with SHA-256 possess slower—transaction turnaround times with less room for error. Successful mining of coins using SHA-256 requires hash rates at the giga hashes per second range or higher which means miners need high performing ASIC chips. Scrypt is simpler and it is is much easier to run on GPUs, and tends to use up less energy than using SHA-256.

Future Outlook for Litecoin

Litecoin is more adaptive to technical up-scaling.

If we compare the history and road-map of Bitcoin and Litecoin, it is evident that the later has been well ahead in adapting new improvement plans. Segwit is already activated in Litecoin without any political doldrums. The founder Charlee Lee has joined back at Litecoin foundation after his stint in coinbase. The team behind Litecoin is now working on Lightning network and adding smart contracts. Once implemented successfully, these two projects can change the future of Litecoin.

Lightning Network.

I believe Litecoin will be the first crypto to implement lightning network which would increase the scalability of transactions. Ind is one of the implementations which is in the final stages and expected to complete in next 6 months. Once lightning network is implemented, the number of transactions per second can grow to millions.

Smart Contracts.

The future road-map of Litecoin shows its interest in anonymous smart contracts. Smart crypt vault is one of the items on the roadmap Charlie Lee is excited about. The technology combines MAST (Merkelized abstract syntax trees) and covenants – script combinations that restrict how coins are spent. The team is expecting a positive outcome in this month on this as per Charlie’s tweet.

Litecoin vs Bitcoin Conclusion

Charlee Lee introduced Litecoin as “silver crypto currency” when Bitcoin took the name of “Crypto gold”. If we understand the fundamental logic behind both the coins, we don’t need rocket science knowledge or high IQ to understand the fact that Litecoin is heavily undervalued. The ideal price of Litecoin is ultimately pegged with 1/4th of Bitcoin price. This is by the simple calculation of supply of coins, 21 million vs 84 million. According to google keyword search, Litecoin is still not in limelight like Bitcoin or Ethereum. This can change in near future and both the coins can compliment each other on a long run.

“Litecoin vs Bitcoin is like Facebook versus Google Plus,” says Lee. “It would be hard for Plus to overtake Facebook. But if something catastrophic happens to Bitcoin, I could see Litecoin positioned to overtake it.” Charlee Lee, Litecoin founder

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herpainterconnoisseur-blog · 7 years

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abigailswager · 7 years

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Litecoin vs Bitcoin | the differences between these 2 Cryptocurrencies.

New Post has been published on https://onlinelitecointrading.com/litecoin-vs-bitcoin-differences/

Litecoin vs Bitcoin | the differences between these 2 Cryptocurrencies.

Lets Start to explain Litecoin vs Bitcoin

Litecoin was build and designed like the robin to Batman, not to just replacve them but to assist and in its own terms become successful.

Litecoin vs Bitcoin | The crucial difference between bitcoin and litecoin.

Litecoin vs Bitcoin Mining differences

Litecoin Mining

ASIC Mining

“scrypt algorithm“

GPU mining

Current Mining activity

There was a time when people could use GPU mining for bitcoin, but ASICs have made this method not worth the effort.

Transaction differences Litecoin vs Bitcoin

The main difference is that litecoin can confirm transactions must faster than bitcoin. The implications of that are as follows:

The disadvantage of this higher volume of blocks is that the litecoin blockchain will be proportionately larger than bitcoin’s, with more orphaned blocks.

The faster block time of litecoin reduces the risk of double spending attacks – this is theoretical in the case of both networks having the same hashing power.

A merchant who waited for a minimum of two confirmations would only need to wait five minutes, whereas they would have to wait 10 minutes for just one confirmation with bitcoin.

Litecoin vs Bitcoin Summary

Both Bitcoin and Litecoin are deflationary.

Litecoin payment confirmations are faster.

Litecoin is more adaptive to technical up-scaling.

Both coins can compliment each other.

Let us first discuss about the similarities

1.Both Bitcoin and Litecoin are deflationary

2. Litecoin payment confirmations are faster

3. Both coins are based on “Proof of Work” concept.

Future Outlook for Litecoin

Litecoin is more adaptive to technical up-scaling.

Lightning Network.

Smart Contracts.

Litecoin vs Bitcoin Conclusion

0 notes

abigailswager · 7 years

Text

Litecoin vs Bitcoin | the differences between these 2 Cryptocurrencies.

New Post has been published on https://onlinelitecointrading.com/litecoin-vs-bitcoin-differences/

Litecoin vs Bitcoin | the differences between these 2 Cryptocurrencies.

Lets Start to explain Litecoin vs Bitcoin

Litecoin was build and designed like the robin to Batman, not to just replacve them but to assist and in its own terms become successful.

Litecoin vs Bitcoin | The crucial difference between bitcoin and litecoin.

Litecoin vs Bitcoin Mining differences

Litecoin Mining

ASIC Mining

“scrypt algorithm“

GPU mining

Current Mining activity

There was a time when people could use GPU mining for bitcoin, but ASICs have made this method not worth the effort.

Transaction differences Litecoin vs Bitcoin

The main difference is that litecoin can confirm transactions must faster than bitcoin. The implications of that are as follows:

The disadvantage of this higher volume of blocks is that the litecoin blockchain will be proportionately larger than bitcoin’s, with more orphaned blocks.

The faster block time of litecoin reduces the risk of double spending attacks – this is theoretical in the case of both networks having the same hashing power.

A merchant who waited for a minimum of two confirmations would only need to wait five minutes, whereas they would have to wait 10 minutes for just one confirmation with bitcoin.

Litecoin vs Bitcoin Summary

Both Bitcoin and Litecoin are deflationary.

Litecoin payment confirmations are faster.

Litecoin is more adaptive to technical up-scaling.

Both coins can compliment each other.

Let us first discuss about the similarities

1.Both Bitcoin and Litecoin are deflationary

2. Litecoin payment confirmations are faster

3. Both coins are based on “Proof of Work” concept.

Future Outlook for Litecoin

Litecoin is more adaptive to technical up-scaling.

Lightning Network.

Smart Contracts.

Litecoin vs Bitcoin Conclusion

0 notes