Cryptocurrencies refer to a system that allows for secure online payments. These can also be called virtual tokens. The online network is distributed across a number of computers and this has also been criticized for being vulnerable and playing a part in illegal activities. However, it has also been praised due to its transparency and … In order to be better adopted by the public, cryptocurrencies and the industry that revolves around them must be known and mastered by all. This is the mission that the Ukrainian government has decided to accomplish through its ministry of digital transformation. The latter has published on the web a whole series of episodes with … Cryptocurrency – What are the types of Cryptocurrency. How do Cryptocurrencies work? What is Cryptocurrency? All you need to know about Cryptocurrency on The Economic Times The emerging cryptocurrency market has generated increasing interest over the last few years, among investors of all varieties and backgrounds. Unlike traditional currencies, cryptocurrency trading is based on speculation of price fluctuations, instead of actually owning and selling an asset. The value of an investment is determined by the asset’s movement between trade entry and exit. Cryptocurrencies are unique in ways that distinguish them from other traditional commodities and trading markets. They’re virtual or digital commodities, which makes them intangible, and they’re unregulated and decentralized, so they’re not managed, monitored or governed by a central authority, such as a government or internationally recognized bank. This makes them intrinsically lucrative but also volatile. These sorts of technologically advanced financial investment opportunities About 10,000 Cubans have turned to bitcoin and altcoins, including ethereum and dogecoin, to skirt around U.S. sanctions, according to a report from Deutsche Welle’s Spanish-language service, reported CryptoNews.Cubans overseas use BitRemesas, a cryp S&P Dow Jones Indices, a division of financial data provider S&P Global Inc, said on Thursday that it will launch cryptocurrency indices in 2021, making it the latest major finance company to enter the nascent asset class.
Cryptocurrencies refer to a system that allows for secure online payments. These can also be called virtual tokens. The online network is distributed across a number of computers and this has also been criticized for being vulnerable and playing a part in illegal activities.
However, it has also been praised due to its transparency and portability. There are now different types of cryptocurrencies all around the world and within Europe. The first cryptocurrency was bitcoin. Bitcoin still remains to be the most popular and the most valuable cryptocurrency.
A cryptocurrency can be used to pay for goods and services. A lot of small businesses and most of the large businesses are already accepting it as a mode of payment. In most of the countries, you can trade the cryptocurrency you own for any other cryptocurrency or for fiat currencies. You can also choose to hold onto it.
The European Union.
The European Union makes up 22% of the entire economic activity in the world. This huge economic role makes the EU one of the world’s economic leaders. The market in Europe is being watched very closely by investors. Any decision that the EU will make about digital currencies will have a huge impact on the global market and on blockchain technology.
Unfortunately for blockchain startups and investors, the European Union does not seem like they will be offering any clear guidance. The EU has been divided on the role they should play in the blockchain and virtual currencies.
Regulators have not declared ownership of cryptocurrencies as an illegal activity, but they have not recognized cryptocurrencies as money for means of commerce and exchange. In simple words, cryptocurrencies are not banned but may be discouraged in the EU. That said, the European Central Bank has no intention of issuing a blockchain-based currency along with or as a replacement for the euro.
How the member states responded.
Individual member states of the European Union have their own different policies and attitudes toward cryptocurrencies that include blockchain havens like Malta and more strictly regulated banking environments like Germany where all accounts have to be registered. The member states have responded with different regulations and initiatives themselves.
Differences in regulations around Europe has made it much more difficult for many blockchain startups to establish themselves in Europe. With conflicting and changing with time, the regulations across the EU, a lot of blockchain startups that started their business in Europe have shifted their headquarters to more favorable countries in Southeast Asia.
However, seven EU countries led by France and Malta, have started an initiative called the Mediterranean Seven. With this initiative they aim to promote the use and development of cryptocurrencies and blockchain technology.
France, Malta, Italy, Spain, Portugal, Greece, and Cyprus are going to cooperate on education, land registry, mobility, business registry, and healthcare for blockchain companies. While this initiative could simplify things, currently the process of cryptocurrency regulation and adoption in the European Union is divided and almost each country has a different approach.
The future in Europe.
In recent times, European Union has shown that they are planning to regulate cryptocurrencies. However, the legislative processes do take some time. The European Union, along with the rest of the world, knows that the future of finance is digital but it is also important to remove any potential risks that come with the digital world. As mentioned previously, ownership of a digital currency is not illegal.
This could mean that any citizen can be in ownership of a cryptocurrency or trade them online with the rest of the world on tested and proven online trading platforms such as The Bitcoin Evolution (https://the-bitcoinevolution.com/).
The European Union is the second largest economy of the world, it is still behind Asian countries like South Korea and Japan in terms of investment in cryptocurrencies and blockchain technology.
The future of digital currency in the EU depends on regulations and frameworks for blockchain businesses moving forward. If the European Union wants to become a leader in blockchain technology, cooperation between member states and introducing blockchain legislation should be a top priority.
Author: News Bureau
Ukrainian government sponsors educational content on crypto – Cryptocurrencies
In order to be better adopted by the public, cryptocurrencies and the industry that revolves around them must be known and mastered by all. This is the mission that the Ukrainian government has decided to accomplish through its ministry of digital transformation. The latter has published on the web a whole series of episodes with educational content on the subject. One more way for the authorities to promote the development of cryptographic activities in the country.
Named Diia.Digital Education, the program promoted by the Ukrainian government was able to see the light of day thanks to a collaboration with Binance, Hacken and Crystal Blockchain. Consisting of a series of eight episodes of a maximum duration of 12 minutes, it is based on an interview with industry specialists. The latter are notably questioned by the host Andriy Onistrat who is actually an entrepreneur and former banker. The various subjects that are thus addressed during these exchanges allow the public to learn the basics of how cryptocurrencies and blockchain work. This was indeed the case with the first episode which presents the concept of cryptocurrency as a ledger of permissionless and unstoppable transactions.
Marketing Director of Binance in Ukraine, Ivan Paskar also had to participate in one of these discussion sessions alongside Mr. Onistrate. There is for example explained how bitcoin managed to maintain a supply that was both immutable and verifiable. Other more complex subjects were also raised during this episode such as smart contracts and the functioning of decentralized exchanges. Overall, the program’s user-friendly format makes it easy for audiences to learn about the concepts developed. Viewers receive at the end of the program a certificate for having followed all the episodes which are otherwise available on YouTube.
This program is part of the multiple efforts undertaken by the government to facilitate the creation of an environment conducive to the development of crypto activities in the country. If the purpose of these episodes is toinstill a digital culture among citizens, companies are not forgotten. The latter can also thank Ukraine’s Ministry of Digital Transformation for its commitment to clear regulation of their activities. It was in this context that a collaboration with Binance was established over the last year. It was planned that the latter would come to the aid of the ministry to design the country’s regulatory framework for cryptocurrencies.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
The choice to educate the population on cryptocurrencies through this program should also allow companies in the sector to better present their product and service in the country. There is no doubt that this initiative will be taken up in other countries once the method has borne fruit in Ukraine.
Cryptocurrency – What is Cryptocurrency? Types of Cryptocurrency
Bitcoin soared to a record $19,918 on Tuesday, buoyed by demand from investors who variously view the virtual currency as a “risk-on” asset, a hedge against inflation and a payment method gaining mainstream acceptance.
03 Dec, 2020, 01.28 PM IST
- Bitcoin steadies after biggest slump since March market meltdown
27 Nov, 2020, 08.03 AM IST
“After big rallies in shares and various other assets, they are all vulnerable to a bit of a pause,” said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. in Sydney. “But Bitcoin more than most, as it surged higher far more and had become far more frothy with speculative interest.”
How You Can Effectively Trade Cryptocurrency
The emerging cryptocurrency market has generated increasing interest over the last few years, among investors of all varieties and backgrounds. Unlike traditional currencies, cryptocurrency trading is based on speculation of price fluctuations, instead of actually owning and selling an asset. The value of an investment is determined by the asset’s movement between trade entry and exit. Cryptocurrencies are unique in ways that distinguish them from other traditional commodities and trading markets. They’re virtual or digital commodities, which makes them intangible, and they’re unregulated and decentralized, so they’re not managed, monitored or governed by a central authority, such as a government or internationally recognized bank. This makes them intrinsically lucrative but also volatile.
These sorts of technologically advanced financial investment opportunities certainly carry their own appeal and the potential for unlimited profitability. But in the finance world, high returns are often proportionate to high risks. To minimize the risks and increase your chances of success, it’s essential to develop an adequate understanding of the theories and mechanisms behind these digital transactions. This will help you to improve your crypto trading strategy based on knowledge, instead of just hopes and prayers.
In the world of cryptocurrency, there are some industry-specific terms that you should become well familiarized with to understand how these markets operate. Here are some of the fundamentals:
Blockchain is the digital database underlying cryptocurrencies. It’s a digital ledger of recorded data, whereby all records are encrypted individually. Transactions are recorded in blocks, and blocks are added to the chain as transactions take place. This process is known as cryptocurrency mining.
Blockchain technology and its decentralized networks are built and sustained by mass collaboration on a global scale. They’re based on peer-to-peer exchanges and layers of trust, removing the need for a centralized authority to monitor transactions. This makes blockchain a trading anomaly that fascinates many investors and economists.
There are more than 1,600 cryptocurrencies currently being traded publicly, with a combined market value of more than $289 billion. The value of Bitcoins alone was estimated at $210 billion. And while there is a limit on the number of Bitcoins available for purchase, the appreciation of their value is seemingly limitless. This naturally heightens demand and speculative interest on trade and investment value, as it would with any tradable commodity.
Although its name is misleading, Bitcoin does in fact belong in the token category, and is the most popular and widely traded cryptocurrency on the market. It was also the first crypto asset ever created. In general, people are more familiar with this digital currency than with any of the others, so the demand for Bitcoin is quite high. There are a number of ways to earn or win Bitcoin, such as by leveraging investment trading strategies or exchanging digital services for cryptocurrency.
An abbreviation for Alternative Cryptocurrency Coins, these are any coins besides Bitcoins. Although they’re all created on the same theory and foundation as Bitcoin, they’re all unique in the purposes and applications they serve, and are supported by different systems and protocols. The most well-known altcoins on the market are the following:
Once you feel confident about your decision to invest in a cryptocurrency of your choosing, there are a couple ways to approach your investment strategy: you can trade cryptocurrency or purchase it, and either method comes with its own advantages and disadvantages.
Trading With CFDs
A CFD or Contract for Differences is a contractual agreement to exchange the difference in price of a currency, from the time the transaction opens to when it closes. This is based on price speculation rather than actual ownership of the currency. In this case, a Bitcoin price analysis would greatly benefit your trade strategy. You’ll have to decide whether your strategy and position will be short or long. A solid risk management strategy should be built into any longer-term trade approach, so that there are limiting constraints to all losses.
Day trading is an example of how you can profit from a short-term strategy. Bitcoin is traded 24/7 and is the most liquid of all cryptocurrencies, which means it can undergo quicker transactions and monetary conversions within a day—and with marginal impact on the market price. There are also many more trading opportunities in a 24-hour window, in larger loads with much less overhead. With day trading, consider optimizing your strategy in the following ways:
Purchasing Cryptocurrency Through An Exchange:
In this case, you’re taking ownership of the digital currency, and ideally the asset you purchase will appreciate in value. You’ll need a digital wallet to store your currency and an account through which to exchange it. Digital wallets need to be secure and protected from external cyber threats such as hackers.
Ways To Buy Or Invest In Cryptocurrency
If you’re wondering how to acquire cryptocurrency in the first place, there are a few options, such as exchange platforms and trade brokers. Bitcoin, for example, can be purchased from exchanges that’ll charge a percentage of the purchasing price. Each one charges different trade fees based on a tiered structure or schedule. The most well-known and widely used cryptocurrency exchanges are:
If you choose to go down a more traditional route with a stockbroker, here a few mainstream cryptocurrency trade brokers:
There are other ways to purchase or invest in Bitcoin or Altcoins, such as Bitcoin ATMs, peer-to-peer transactions, and digital currency asset managers.
Before you embark on your cryptocurrency adventure, you should first take steps to educate yourself on the risks involved before jumping into high-level trading. Explore your options for trading or exchanging currencies, and the necessary steps for storage and investment management. Even if you’ve got significant experience in financial trading and investment strategies, cryptocurrency operates very differently from any other market in terms of volatility, liquidity and predictability of trends. So, it’s important to first get familiarized with this unique market. Understanding the nature of cryptocurrency will help to optimize your experience, and help set you up for potential success.
Author: About The Author
Bitcoin Daily: Cubans Use Cryptocurrencies For Remittances In Wake Of US Sanctions; Swiss National Bank, BIS Test CBDC Integration
About 10,000 Cubans have turned to bitcoin and altcoins, including ethereum and dogecoin, to skirt around U.S. sanctions, according to a report from Deutsche Welle’s Spanish-language service, reported CryptoNews.
Cubans overseas use BitRemesas, a crypto exchange, to essentially transfer money to family in Cuba through a middleman, CryptoNews explained. They convert their fiat currency into cryptocurrency, which middlemen in Cuba then bid on and pay for in cash to the sellers’ family members in Cuba. The middleman gets a commission fee from the exchange, and BitRemesas takes a percentage as well.
Transfers, while high in volume, usually come in small amounts — $10 to $20 — according to CryptoNews.
In the last 10 years, Cubans have received nearly $30 billion in cash remittances, 90 percent coming from the U.S., according to CryptoNews, citing data from The Havana Consulting Group and Tech.
In other news, the Bank for International Settlements (BIS) announced Thursday (Dec. 3) that it completed a successful trial of Project Helvetia, which explored the feasibility of integrating a digital asset with a central bank currency.
The proof-of-concept was run in partnership with BIS’ Innovation Hub Swiss Centre, the Swiss National Bank and financial infrastructure operator SIX, according to the announcement.
Its goal was to examine whether a wholesale central bank digital currency (CBDC) could be issued on a digital asset platform and if the platform could be linked back to an existing wholesale payment system, the announcement stated.
BIS’ report noted that it used a wholesale CBDC, which is used by bank and other financial institutions, rather than a retail CBDC, which is for general use. It offers potential advantages but faces “major” policy hurdles, according to the announcement.
“Further work is needed; the next steps are to gain a better understanding of the practical complexities and policy implications of wholesale CBDC,” the announcement noted. “Different design choices that allow for trade-offs between risks and benefits need to be explored.”
The announcement stated that Project Helvetia was an experiment and BIS is not issuing a wholesale CBDC as of yet, rather “continued deliberations and experimentations” are needed.
“It is now crucial that we continue our journey incorporating our learnings and understanding the benefits to ensure that the added value for the financial industry will far outweigh the effort,” said Jos Dijsselhof, CEO of SIX, in the release.
Meanwhile, Hauck & Aufhauser, a private bank headquartered in Frankfurt, Germany, is launching a cryptocurrency fund next year.
S&P Dow Jones will launch cryptocurrencies indices in 2021
Friday, December 4th 2020 – 08:56 UTC
S&P Dow Jones Indices, a division of financial data provider S&P Global Inc, said on Thursday that it will launch cryptocurrency indices in 2021, making it the latest major finance company to enter the nascent asset class.
The S&P DJI-branded products will use data from New York-based virtual currency company Lukka on more than 550 of the top traded coins, the companies said.
S&P’s clients will be able to work with the index provider to create customized indices and other benchmarking tools on cryptocurrencies, S&P and Lukka said in a joint statement.
S&P and Lukka hope more reliable pricing data will make it easier for investors to access the new asset class, and reduce some of the risks of the very volatile and speculative market, they said.
“With digital assets such as cryptocurrencies becoming a rapidly emerging asset class, the time is right for independent, reliable and user-friendly benchmarks,” said Peter Roffman, global head of innovation and strategy at S&P Dow Jones Indices.
The move by one of the world’s most well-known index providers could help cryptocurrencies become more mainstream investments.
It comes as bitcoin continues to soar to record highs against the dollar, boosted by increased demand from investors who say the virtual currency is a hedge against inflation and a safe-haven asset.
Bitcoin was trading at US$ 19,300 in latest trading on Thursday, having soared around 170% this year.
Cryptocurrencies have been around for more than a decade, but have started attracting more interest from large financial companies over the last few years.
Large firms including Fidelity Investments and Japan’s Nomura Holdings Inc have starting safeguarding bitcoins and other cryptocurrencies for institutional investors, while major exchanges have started offering bitcoin derivatives.
The emergence of more mainstream market infrastructure has made the asset class more accessible for institutional investors, with hedge fund managers such as Paul Tudor Jones and Stanley Druckenmiller saying they include bitcoin in their broad investment strategies.