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What is Cryptocurrency

What is Cryptocurrency? How it’s Works?

1. What is Cryptocurrency?

 Definition: Cryptocurrency is a currency that can be used only electronically and it encompasses things like Bitcoin. It is created to be a means of exchange where it relies on the use of encryption to protect transactions, regulate the generation of more coins, and authenticate asset exchange. Unlike other forms of money that is physical like the US dollar and the euro, the crypt currencies are generally digital and function on block technologies.

 Key Characteristics:

 Decentralized: Currently, cryptocurrencies work in decentralized systems that include no authority such as the government or bank. They used them based on a correspondent record of all transactions occurring on a distributed ledger (Blockchain).

 Cryptographic Security: It makes the transactions to be secure, private and verifiable hence enhancing its security. Every transaction is signed by means of private key and this makes every transaction secure.

 Transparency Records: All the transactions that are conducted are recorded on the ledgers which are known as the block chain and these are available for public viewing. While transaction information is quite open, the names and other essential info of the users are often unknown.

 Immutability: In its simplest form, once a transaction is entered into the blockchain it cannot be changed or deleted, thus making the records safe.

 Global Accessibility: The use of the crypto currency is the same as that of the internet, and hence does not require geographical boundaries and hence is borderless as opposed to the banking systems.

 Popular Cryptocurrencies:

 Bitcoin (BTC): The first and arguably the most famous one, it is commonly called the ‘digital gold. ’

 Ethereum (ETH): An application that is digital currency as well as an operating system to support the decentralized applications and smart contract.

 Ripple (XRP): A cryptocurrency that caters to the need of making cross border prompt payments at a minimal cost.

 Litecoin (LTC): A decentralized digital currency that operates as an alternative to Bitcoin and which confirms transactions in less time as compared to Bitcoin.

2. What is Cryptocurrency Mining?

 Definition: Mining is the generation of new crypt currency coins or tokens it also refers to the verification of new transactions and addition of these to the blockchain. In PoW based systems such as bitcoin mining is the process that involves solving of complicated mathematical problems with the help of computational power. This work is done by miners to maintain the network and they are compensated by the bitcoin or any other digital currency.

Cryptocurrency mining

 How Mining Works:

 Blockchain Validation: Crypto coins run on a decentralised system where many nodes which are computers have to approve a transaction. In this process, computational resources are employed to solve some cryptographic puzzles that check the authenticity of such transactions.

 Proof of Work (PoW): As in the case of Bitcoin, PoW systems involves miners trying to solve various complex mathematical problems. This task falls with the first miner who correctly solves the puzzle and can append a new block of transaction in the blockchain, with the incentive of the newly generated digital currency.

 Mining Rewards: Payment that is accorded to the miners is in two forms,

 Block Reward: A newly developed cryptocurrency is awarded to the miner that manages to contribute a block within the blockchain.

 Transaction Fees: The transaction fees of the transactions performed in the new block also belong to the miners.

 Energy Intensive: Mining is very much computer intensive as miners use hardware devices such as ASICs and consume a lot of electricity to solve these riddles.

 Mining Algorithms:

 Proof of Work (PoW): The most widely used bitcoin mining algorithm where the miners have to complete some specific tasks to secure the transaction.

 Proof of Stake (PoS): Another consensus where validators are selected according to the number of coins they own and are ready to ‘lock’ in the smart contract called ‘stake’.

 Hybrid Systems: Some of the newest crypto solutions incorporate both the PoW and PoS to make a more effective and secure network.

3. How Does Cryptocurrency Work?

 Blockchain Technology:

 A blockchain is a decentralized ledger that holds all the records and transactions of the cryptocurrencies and these records are stored in a distributed manner in a network of computers known as nodes. Every block in the blockchain is a record of recent transactions, and, when the block is inserted in the chain of blocks, it is resistant to changes.

 Blockchain acts as a guarantor of openness, protection, and distribution to exclude the possibility of someone’s monopoly over the network.

 Transaction Process:

 Initiating a Transaction: When a user for instance wishes to send cryptocurrency to another user creates a transaction request. The components of this transaction are details of the amount of crypto coins being transferred from the payer, the identity of the payer wallet and that of the payee and the digital signature of the transaction.

 Broadcast to the Network: The information of such a transaction will be relayed to the cryptocurrency network and then received by the miners or validators.

 Verification by Miners: Due to this miners work to ensure that the transaction is valid by solving some complex mathematical problems which see to it that the sender has enough money to fund the transaction. This process helps eliminate the risk of one using the same crypto asset to transact severally.

 Adding the Transaction to the Blockchain: After the transaction made is checked it is then placed in a new block. The received block is next placed in a sequential order on the blockchain increasing the security of the past and the content of future blocks.

 Confirmation: Once the transaction is done and included in the blockchain ledger it becomes permanent and cannot be altered. At the same time, the use of additional confirmations also strengthens the transaction in question.

 Wallets and Keys:

 Wallets: Cryptocurrency wallet is an application which enables one to receive, store and transfer cryptocurrencies. There are mainly two kinds of wallets: software wallet, where your Bitcoin can be accessed from the internet or from the computer and hardware wallet, which is a physical device like a flash disk.

Public and Private Keys:

 Public Key: This is the one a user provide to receive the cryptocurrency like a user account or an ID number.

 Private Key: This is a unique numerical password for signing of transactions and gaining access to one’s cryptocurrency. This must be made secure since anyone controlling the private key in regard to this fund will have power over the resources.

 Security Features:

 Cryptographic Hashing: Every block and the transaction is hashed or converted to a fixed length string and the same is done with the help of cryptographic algorithms so as to avoid data tampering.

 Consensus Mechanisms: One of the primary purposes of the cryptocurrency networks is that they are based on the consensus mechanisms such as PoW or PoS in order to decide the validity of the transactions without a central authority.

 Pseudonymity: Whereas the system itself is open for the public, the users’ true identities are actually concealed, although their transactions are transparent.

 4. Applications and Use Cases of Cryptocurrency:

Investment and Trading: Cryptocurrencies are employed as an investment type, whereby individuals buy and sell them with an intention of making a profit through high risk ventures.

 Payments: Cryptocurrencies are also used by some establishments as a method of payment, as a replacement for the fiat money.

 Decentralized Finance (DeFi): DeFi platforms utilize cryptocurrencies to offer such value-added services such as loans, savings, and trading without the involvement of centralized institutions such as banks.

 Smart Contracts: Cryptocurrencies such as Ethereum allow smart contracts; which are digital contracts that are programmed to execute automatically.

 Cross-Border Payments: Here, one can assert that Cryptocurrencies work much faster and cost less than the traditional banking systems in terms of international money transfers.

What is a Crypto Airdrop

What is a Crypto Airdrop? How to Get Crypto Airdrop?

What is a Crypto Airdrop?

In simple language cryptocurrency airdrop is a marketing strategy or distribution of cryptocurrency that

 involves sending tokens, coins or other awards in large wallet addresses. Airdrops is basically rewards for the loyal user or helpful for the startup projects.

basically crypto airdrops is a marketing strategy to increase the crypto user and these airdrops coins, token or

other rewards is directly send to the users wallet without purchasing .

Why Do Crypto Projects Use Airdrops?  

Following are the popular ways why use airdrops

1: For marketing

2: For promotion

3: Startup of new project

4: Reach investor

5: For awareness

6: Encourage recepents

-> when a startup needs a investors then the airdrops is the best and the easiest ways to reach the best investor

 in the world. It also helps us to encourage people or new user to invest in their startup.

-> The secondary region of the crypto airdrop is to promoting the blockchain projects or blockchain startups using the free

tokens, coins or other rewards.

-> Basically crypto airdrops is also used for brand awareness.

How do crypto airdrops work?

If user want crypto airdrop then user must fulfill the new airdrop requirement like simply signup process,

completing simple task or inviting their friends or many other simple tasks .

In crypto airdrop allocating a certain number of tokens, coins or other rewards is distributed all the crypto

user in there level wise.

Every user receive their reward according to their eligibility. One of crypto team is Determining the

every user eligibility and then distributed the airdrops rewards in form of token or coins.

Types of crypto Air drops:

1:Standard Airdrop:  Standard airdrop is also known as raffle. It simply require signup or registration process

to get this airdrop.

2:Bounty airdrops:  The second air drop is bounty air drop . complete simple and easy tasks according to

crypto demand then user is eligible for this airdrop.

3:Holder Airdrop:  holder or exclusive airdrop is require holding an existing cryptocurrency for this holding

airdrop. This airdrop is reward for loyal community member to encourage.

How to start Trading?


Crypto Swing trading

What is Swing Trading and Their Strategies?

Swing Trading:

          In simple terms we say that swing trading is a strategies or a trading style in which swing trader attempt to make a profit from the short term movement. Swing trader hold the financial asset such as stock , option or other commodities for several day, several week or month to capture the short term to medium term profit such as gain in stock or other commodities.

Day trading:

         This technique or practice of selling and buying or investing in securities or stock within the same day. Day trader use this technique to generate profit in short time or enhance their trading skills in forex trading, stock, cryptocurrency or other commodities.

Swing Trading Strategies :

Markets receive their booms and so they also receive their busts. Prices may change rapidly in a single trading interval, and they may change little in many trading intervals, showcasing market’s continuous volatility.

Based on your investment horizon you may be interested in more long-term phenomenon such as long term trends and cycles including bull and bear markets. But within the larger currents exist a multitude of minor price fluctuations: It in the form of a series of blips, where it can swell and give ‘swing’ in the form of rallies and declines partially. In other words, one may find sub-trends in a given trend.

Some traders try to earn their profits on such fluctuations of the price level. That is the reason the term ‘swing trading’ is used to describe this specific kind of market speculation. You may have been enticed by the idea of doing so in this style yourself at one time. If you are not very much acquainted with it, you might want to read on to find out how it is.

Swing trading is among the numerous market speculation strategies and entails opportunity, but with given risks. Like most trades in the market, those who profited in the secondary market were just enriched while a different story is ‘the road ahead.

swing trading strategies
For illustrative purposes only. Past performance does not guarantee future results.

Swing Trading vs Day Trading :

         Swing trader hold the stock , trades or commodities for days , week or month to capture the short term to medium term profit unlike  Day Trader  capitalize, profit in short term rather than holding a stock in week or month.

Key Features Of Swing Trading:

Position or Time Management : Swing Trader can hold the position for a days, week or month.

Trend-base: Swing trading realize on trend it will change according to market condition.

Key Feature of Day Trading:

Market gaps:

 All trades are closed by market end not worry about overnight news or market gaps for trader.

Leverage  system:

 In day trading day trader borrow funds for increasing their Potential profit or their

position in market.

Overnight position:

In day trading is the end of overnight position because trades closed in all trading session.

How Both are Flexible?

Both trading swing trading and day trading is flexible for those trader who cannot monitor the market for full time or those traders who want to trade for a short term and  make a profit.

Risk in Swing Trading:

Price Changing:

 In Swing trading there is a market Risk .  Holding the overnight postions exposes the swing trader to market gap that can lead to the significant price change.

Cost:

 Swing trader frequently trade in a market then frequent trade can lead the commission or higher fees.

Patience:

In Swing trading for trader must require patience because in trading  may require holding positions longer than expected.


how to start trading

How to Start Trading? Important Steps for Trading

How to start Trading :

Trading is much easy as you think but It need consistency, hard work & most important Patience. Fellow steps are given below to start your Trading Journey :

Choose Trading Market :

The first thing you need to choose is Trading Market. Decide between stocks, Forex, Cryptocurrencies, commodities etc.  

Select Reputable Broker :

 Selecting reputable broker is a critical step when starting to trade, As they act as intermediaries between you and markets. Here’s breakdown:

Regulation :

Ensure the broker is regulated by financial authorities (e.g., SEC in the U.S, FCA in U.K, or ASIC in Australia ). These broker are bounded by the Regulated Guideline that protect your funds and transparent operations.

Market Access :

Each Broker offers access to various Trading Market such as Stocks, Forex or Cryptocurrencies.

Fee and Commissions :

Each Charge some fee for each trading services they offer such as commissions, spreads withdrawal fees etc.

Create Trading Account & Fund:

Sign up for brokerage account and complete your verification for easy deposit. Than add your fund into it to start your first trade.

How to start trading?
4 Major Step for every Trading.

Develop a Trading Strategy :

Most Importing think in trading is Trading Strategy, how to play with candles?

Define your certain thinks such as:

  • Your Goal of present trade How much You want you earn today. Once you achieved that it. No more greedy.
  • Risk Tolerance is the most important because when you set you tolerance level you will save from further disaster. Such as you took a trade of 100$ but you are fail to make it successful and you set your tolerance rate at 80$, When you lose you 20$ You have reached at you tolerance level you have to should stop immediately. That help you to save you 80$ instead to losing whole of you money.
  • Set up your trading style (e.g., Day Trading, Swing Trading).

Learn Technical & Fundamental Analysis:

Study Charts, Trends and Market data to make informed trading decisions. That also help you know about today’s market what will it do?

Practice with Demo Account :

Use A Demo Account for you practice to familiarize yourself with trading platforms without risking real money.

Start Small :

Begin with small trades to manage risk while you gain experience.

Monitor Your Trades & News :

  • Track Market movements and adjust your strategy as necessary. Daily 1 Hour of Mind training help you to train you mind about trading and risk management.
  • Follow financial News, Market Updates, and Trends that affect market to move up and down.

Review and Adjust Regularly :

Analyze your performance and maintain your record to approach for continuous improvement.


Stock Futures

What is Stock Futures? How It’s Works?

                                         

what is Stock?

In simple and easy words we says that stock represent the units of share owned by Investor in a company or partial ownership in company. 

what is stock futures?

Stock Futures Means contract or agreement between two or more parties to buy or sell particular undelaying asset or resources at a future date.

what are stock futures doing right now?

SymbolPriceChange
NAS FUT1932.32+1.01
S&P MID MINI3,107.21+2.023
S&P FUT5,650.2+1.01
DOW FUT41,120.7+1.09
Stock Futures now a days

why trade future over stocks?

When you buy or sell the stock then Most stocks only allow limited trading day or overnight margin trading . Future trade allows you potentially great profits compared to the stocks.

Difference between stock and stock future?

In simple terms we says that stock represent the private ownership in company and future is a contract or agreement with expiration dates. 

How Do stock futures work?

let’s assume a simple  scenario  you invested in a future contract  for 50 shares of Tesla company at a value of Rs. 5000 each share at a certain date . when your future contract is expired you received  shared as same price Rs.5000 per share you invested not the present price of the share.

How to pick Future market to trade?

Following are the key point that help’s you for better trade

  1. Define the objectives of your investment
  2. Identify the Risk and challenges may be face in future
  3. Enhance your search
  4. research about different markets trends
  5. Evaluate market flexibility
  6. analyze market condition
  7. check trading Time
  8. Evalute trading strategy
  9. Supply and demand 

Why ?

1: No Restrictions

2: no trading rules

3: Flexibale

4: increase capital

5: virtual 24-hours trading 

Risk:

Leverage Risk: when you invested in a company you are not 100% sured shares of this company will give the profit.

You can lose your initial investment when market trend goes against to  your expectations.

Are stock future Risky?

Yes it is possible you lose your initially invested money when trading going against your expectations.


Crypto Arbitrage

What is Crypto Arbitrage? How is works?

What is Crypto Arbitrage?

Crypto Arbitrage is Trading method or strategy where a person buys a Cryptocurrency on one Exchange where its price is low and then sells it on another Exchange where the price is higher, making a profit from the price difference. It takes advantage of price variations between different platforms.

Imagine you see that Bitcoin is selling for $30,000 on Exchange A & $30,200 on Exchange B. You but 1 Bitcoin on Exchange A for $30,000, then sell it on Exchange B for $30,200. You’ve made a $200 profit just in minutes without much hurdles

Crypto Arbitrage

Benefits of Crypto Arbitrage :

  • Crypto Arbitrage is the most useful and easy method make profit without any lost.
  • This is low-risk strategy compared to other trading methods, it does not require any efficient understanding of markets strategy and their rules.
  • Unlike other trading methods you are not need to worry about the up and down of market or prediction about trade that will go up or down.

Types of Crypto Arbitrage

 There are several types of Crypto Arbitrage

Spatial Arbitrage :

It’s like buying Bitcoin on Exchange A (Based in U.S.) and selling it on Exchange B (based in Europe), where the price might be slightly different base on their market demand.

Triangular Arbitrage :

Suppose, you have noticed a price difference among three different Crypto currencies, say Bitcoin, Ethereum, and Litecoin. You exchanged Bitcoin with Ethereum, then Ethereum for Litecoin, and finally Litecoin to back Bitcoin. If it done correctly, You end up with more Bitcoin than you started with.

Intra-Exchange Arbitrage :

This Type of Arbitrage is contained within one Exchange or Platform with its different products. For Instance, a trader might take an advantage of the price  difference b/w a Cryptocurrency’s spot prices

How to start Crypto Arbitrage?

Crypto Arbitrage is taking Advantages of price difference of Cryptocurrencies on different Exchanges. Here’s a simple step-by-step explanation to start arbitrage :

Educate yourself :

  • Make Sure you understands how Crypto Currency and Exchanges works. Get fimilar with difference type of arbitrage such as Spatial, Triangular or Intra- Exchange Artibrage.

Choose Exchange :

  • Make choose of exchange you want to use for arbitration.
  • Look its Trading , payment & withdrawal fee &  regulatory compliance of each exchange.

Setup Your Account :

  • Setup your account and deposit your payment onto your account

Buy Crypto Currgency :

  • Setup eye on exchanges and note the price difference of Crypto Currency on the exchange.
  • Before Buying Crypto Currency verify all important things such as price difference, authentic platform.
  • Now, Buy your Currency and try to sell on other exchange where its price is much higher than the previous one.

Maintain record :

  • Make sure you carry all document about  taxes and fee purposes.
  • Using cryptocurrency accounting software to help manage and organize your trading data.