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A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. Many cryptocurrencies are decentralized systems based on blockchain technology, a distributed ledger enforced by a disparate network of computers. A defining feature of a cryptocurrency, and arguably its biggest allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Cryptocurrencies are systems that allow for the secure payments of online transactions that are denominated in terms of a virtual "token," representing ledger entries internal to the system itself. "Crypto" refers to the fact that various encryption algorithms and cryptographic techniques, such as elliptical curve encryption, public-private key pairs, and hashing functions, are employed.
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The cryptocurrency market seems to be growing in popularity every day. With the astronomical rise of cryptocurrencies, there seems to be an influx of people into the market. Many cryptocurrency exchanges cannot even afford to have their account creation feature open all the time. Such is the demand for entry into the market that trading account creation for new customers is periodically disabled. The average daily trading volume of the market is usually in trillions of dollars. The total market cap of the entire market stands at more than half a trillion dollars which is an astonishing feat considering the market is less than a decade old.
However, despite all of these large numbers, there are a number of major problems that plague the market. To use these numbers solely as an appraisal index of the state of the market would present a false narrative. There are structural and functional issues that affect the market. These problems stem from a variety of reasons such as the infant nature of the market, lack of understanding of the cryptocurrency space, and some peculiar economics of cryptocurrencies (“tokenomics”) just to name a few.
The following are some of the major problems in the cryptocurrency market.
Price Manipulation
By far the biggest issue in the cryptocurrency market is the excessive volatility. The prices of cryptocurrencies on exchange platforms rise and fall dramatically over a short period of time. When a tradable asset can drop by as much as 49 percent in less than 24 hours, then the volatility of the market is high. There are a number of reasons that contribute to the excessive volatility in the market.
Pump and Dump ICO Schemes
ICOs have emerged to become an integral part of the cryptocurrency market. Many tokens are introduced to the market via ICOs with investors buying these tokens in exchange for fiat money. Pump and dump ICO schemes continue to be a problem for the market due to the lack of regulation. During the ICO, the entrepreneurs behind the token speculate massively on the coin, driving the prices up and getting investors attracted. Once this is done, they cash out, leaving the investors with worthless coins that have little or no value.
The Activities of Cybercriminals
The cryptocurrency market has right from its inception been beset by the activities of hackers and cybercriminals. There have been a number of high-profile cryptocurrency hacks and heists that have resulted in millions of dollars being stolen. Traders and investors have lost funds and some platforms have ceased to operate. In the aftermath of these hacks, the price of particular cryptocurrencies has dropped considerably.
Lack of Price Uniformity
Price charting is an essential part of asset/commodity trading. It is often necessary to develop price charts in order to carry out investment analysis and develop trading strategies.
Transaction Delays
The cryptocurrency market is plagued with a litany of delays across almost every type of transaction. From opening a trading account to verifying your identity and being able to make deposits and withdrawals, the system seems to be quite slow. Blockchain technology ought to make transactions occur faster but it seems to take forever for transactions to be approved on the various chains.
FRIENDS WHAT ARE YOUR OPINION ON THE TOPIC MATTER
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Just on the same lines as initial public offering (IPO) of stocks, an initial coin offering is an unique way adopted by cryptocurrency startups and other manufacturing firms to raise money from the market. The companies which adopt this route fund their enterprises by selling their own cryptocurrency, often accepting payment in other forms of cryptocurrency (mostly Bitcoin or Ethereum).
An ICO typically involves selling a new digital currency at a discount — or a “token” — as part of a way for a company to raise money. If that cryptocurrency succeeds and appreciates in value — often based on speculation, just as stocks do in the public market — the investor has made a profit.
Unlike IPOs, ICOs don’t involve any investment bank or underwriters and rarely any equity or voting rights are offered to the investors here. However, there is a very minimal regulatory oversight in such cases as norms regarding cryptocurrency are still in infancy stages all across the world. As per popular American business magazine Forbes, these types of offerings raised more than $4 billion in 2017.
ICO working
The first step during the launch of a typical ICO is an issuance of a white paper that details the technicalities, project plans and budget goals for a project, and may also include a brief discussion on how the coins or tokens will be distributed among the interested investors. In many cases, ICOs fix the number of coins to be offered before sale. Generally, those who buy first are mostly given preferential terms, paying a lower price per coin. But, prices can fluctuate. Some offerings have a specific fundraising goal, and they keep the price fixed throughout the period of offering.
Worldwide, various ICOs have been launched in the last some years with much success by the crypto-firms to raise finances to meet their financial endeavors. However, this route of raising money is still in a premature stage, and it will take time to mature and evolve into a full fledged mechanism to raise money just like IPOs.
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I have serious believe in ETH because it has achieved great fit when we talk about cryptocurrency and it has also shown that it can stand the test of time because this is not the first time the value of ETH has gone down.
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This time we are is the best time to buy anything because virtually all the prices are down and you can be able to use little Fiat to purchase more of altcoin and when the time to sell cones, you can be able to make high profit.
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Proof of joined post
Bitcointalk username: Adeyod
ETH address: 0x554C3689d9fF54B2fB53A00720E68816932f381b
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This is the best time for you to invest because the prices of cryptocurrencies are down now so you can buy it at cheap prices and wait till the prices go up for you to sell and make good profit
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The price is going up now. It can be bought now but the best price to buy was when it was lower than this because that will ensure wide gap between the price you bought it and the price you will sell it. This is how to increase someone's return on investment. This is how those who have made millions from cryptocurrency was able to make it
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I will advice you to first learn from those that have experience in cryptocurrency trading so that they can put you through the rudiments of trading cryptocurrencies so as to avoid such loss in the nearest future. With that you can know which crypto to invest in and the ones you should not invest in. You will also know the amount to invest in any of the cryptos you are investing in. This is what i did before venturing into trading cryptos and it has since being working for me.
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Glory be to God Almighty because i am commenting on this thread in the year 2018 and i can tell you that ICOs are still coming on board on a daily basis and as such i dont believe that ICOs will die in 2018. Since the beginning of this year, we have witnessed lots of ICOs that has came on board. What i can say is that it will continue to get better by the day. Though we might have some ICOs that are not serious and doesnt have solid project but also we have to have it at the back of our mind that we also have good and great projects coming out on a daily basis.
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My biggest regret in cryptocurrency is that i new about it late and when i knew about i didnt make good use of the opportunity. Those that got to know about cryptocurrency at the early stage are now millionaire in the industry because they acquire large quantity of it with little money and when it appreciated in value they sell and made large margin of returns from it
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Both cryptocurrencies are very important in their various ways. One of the reasons why people believe more in bitcoin over Ethereum is that Bitcoin has fixed supply as against Ethereum. Also Bitcoin has edge over Ethereum and other cryptocurrencies because it is the pathfinder in this industry. People also believe that Ethereum might not stay long to stand the test of time and as such they don't want to hold it for so long.
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In my own opinion, I see ETH as a multipurpose cryptocurrency. Most people now make use of it as a means of exchange even more than other cryptocurrencies that are popular. This is gradually increasing its popularity. Presently bitcoin is the cryptocurrency that has the highest value but there is nothing impossible. In a matter of time, who knows ETH can do the wonders.
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It all depends on your ideology on cryptocurrency. I prefer to buy when the prices are down and wait for the rise in price because I believe that is when you can have more returns from your investment. If you buy when the price has turned green, you will still make a profit but your profit might not be huge because the difference in the price you bought it and the price you sell it might not be wide enough to make a huge profit.
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