Bitcoin Forum
January 27, 2020, 01:46:09 PM *
News: Latest Bitcoin Core release: 0.19.0.1 [Torrent]
 
  Home Help Search Login Register More  
  Show Posts
Pages: [1]
1  Alternate cryptocurrencies / Altcoin Discussion / What coins to buy - 5 basic tips on: February 15, 2018, 08:16:48 AM
Every day there are several topics with a question that what coins to buy better. Pump brains and learn to think and analyze. Enough to ask a stupid question, which you beginners will be advised to buy any shit coins.

Ermos Kyriakides wrote a terrific article for you. Enjoy reading.

What Problem Does It Solve?

The first thing to ask yourself is — What problem does the project try to solve? What are they trying to achieve and is there truly a need for a Blockchain or Directed Acyclic Graph (DAG)?

Let’s take Bitcoin (BTC) for example. It is the big boy and was the first project that brought a real use-case for the blockchain. Bitcoin was presented to the world as a cryptocurrency with minimal fees, a degree of anonymity, near-instant transaction times with a decentralized, immutable ledger. Things have changed since, but what Bitcoin set out to become had a real use-case for a blockchain.

BTC can be purchased on various exchanges with FIAT including Coinbase, Bitstamp, Gemini and Kraken.

Token Value

By definition, investing “is the act of committing money or capital to an endeavor (a business, project, real estate, etc.), with the expectation of obtaining an additional income or profit”. When investing in a particular digital currency, you need to think — where does the value for XYZ come from? What makes XYZ’s price increase?

Let’s take two real examples:

  • Dogecoin (DOGE) was created as a “parody” coin back in 2013. The value is purely derived from supply & demand and people’s perception of its price. The coin serves no particular purpose, brings no technological advancements and solves no real-world problem (no offense DOGE owners!). It has not been updated in over 2 years but still has a market cap (more on this later) of nearly $1B.
  • On the other hand, Ethereum (ETH) has clear value. In addition, from its price being derived from people’s perception (i.e. those who buy and sell it), ETH is also used to pay for implementing & executing smart contracts on the Ethereum network. Therefore, we can imply that ETH is “backed” by the value that these smart contracts provide.

I am not arguing whether you should invest in coins like DOGE, as they can bring a significant return on investment (ROI) in the short-term, but are definitely riskier investments and more prone to disappear once the impeding crash comes.

DOGE and ETH can be purchased on Coinbase, Bitstamp, Gemini, Kraken, Bittrex, Gate.io and many more.

Coin Supply & Market Capitalization (Market Cap)

Before continuing, I would like to get some definitions out of the way (courtesy of CoinMarketCap):


  • Circulating Supply is the best approximation of the number of coins that are circulating in the market and in the general public’s hands.
  • Total Supply is the total amount of coins in existence right now (minus any coins that have been verifiably burned).
  • Max Supply is the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency.
  • Market Capitalization is one way to rank the relative size of a cryptocurrency. It’s calculated by multiplying the Price by the Circulating Supply. Therefore, Market Cap = Price * Circulating Supply.

A huge mistake I see many people make, is investing in a coin because the “price per coin” is cheap(er) — something completely incorrect. For example, we have Project A and Project X. Project A has a supply of 1000 coins worth $1 each. Project X has a supply of 10 coins worth $100 each. The value of both projects is exactly the same, as they both have the same market cap, however, many people are under the false impression that investing in Project A is a better choice. To make it as simple as possible — the more coins there are, the less valuable they are.

Consider the following:

  • What is the circulating, total and max supply? Pay close attention to the difference between the 3 and always research to understand the economics of the coin, why there’s a difference and how it will be “bridged”. An excellent resource for finding the supplies is CoinMarketCap.
  • There are 3 types of coins; inflationary coins which increase their supply over time, deflationary coins which decrease their supply over time and coins that are neither — their supply always remains constant. Ignoring external factors, inflationary coins drop in value when new coins are added to circulation (as they are now more abundant) and deflationary coins increase in value when coins are removed from circulation (as they are now scarcer). BTC is an example of an inflationary coin (until the 21 million max supply is reached), Iconomi (ICN) is an example of a deflationary coin and IOTA is an example of a coin which is neither. You should always question what type of coin are you investing in and the reasons behind it.
  • What percentage do the coin founders hold? Always research how many coins do the founders hold, and if this is a significant percentage (let’s say over 25–30%) question why. Do they have a valid reason for holding such amount? What are they planning to do with it?
    The aforementioned coins can be purchased on Coinbase, Binance, Kraken and others.

Team & Transparency

A very important factor to take into consideration when investing in a project is the team behind it. Some questions to think about are:

  • Does the team have any prior experience in the industry the project is tackling? It’s not essential, but it definitely helps if it has expertise and knowledge in the industry. A perfect example is the Enjin (ENJ) team. They have been in the gaming industry for a while and have the necessary understanding to launch a cryptocurrency project in this space.
  • Why is the team anonymous for a project that doesn’t require them to be? For example, it’s understandable if they are developing a privacy coin but not if they are developing a coin focused on eSports.
  • Is the team engaged with the community and provide timely updates? Are they on track to deliver their roadmap? district0x (DNT) is a perfect example on how a team should communicate. You can see what I mean by taking a quick look at their blog here.
    Thankfully, we live in a digital age where you can browse through the web to find more information about the individuals working behind the project.
The coins mentioned in this section can be bought on Binance, COSS, and Bittrex.

Investors & Partnerships

Something I find extremely positive when deciding what to invest in, are current project investors and partnerships. The reason should be self-explanatory, but having the backing of well-established entities gives the project further legitimacy. A few examples with eye-catching investors and partnerships are:
  • Request Network (REQ) — Backed by Y Combinator.
  • VeChain (VEN) — Partnerships include PricewaterhouseCoopers (PWC), DNV GL, KUEHNE+NAGEL and many more.
  • IOTA — Received investment from Robert Bosch Venture Capital GmbH (RBVC), the corporate venture capital company of the Bosch Group. Partnerships include Ruuvi, Volkswagen and others.
  • Stellar (XLM) — Partnership with IBM.
The coins discussed in this section can be purchased on Binance, COSS, Gate.io, Bitfinex and Bittrex.

Conclusion
Jumping on the “hottest” coin could bring you short-term gains, but if you are looking for a serious, long-term investment, proper analysis has to be performed.
Link to original article: https://hackernoon.com/5-cryptocurrency-investment-tips-6e9e23e223be
2  Economy / Economics / Don't worry, the market will not fall forever. on: February 02, 2018, 08:05:10 AM
The fall and collapse of the crypto-currency exchange rates do not scare investors in comparison with December 2017, but rather vice versa - new crypto funds are launched in the US and Europe. Offering the Swedish exchange Nasdaq Nordic exchange-traded note for bitcoin and ETH, Coinshares Group is launching two new funds: "Active" and "Large Cap" . The first offers a fairly aggressive strategy for investing in promising cryptocurrencies, the latter uses a more passive strategy and a wider basket of digital assets.
If you are in a position - hold.
If you have the finest money - buy in parts.
Everything goes to the fact that in May we are expected again the rally
3  Bitcoin / Legal / In the bitcoin network, the fees fell to a record low. on: January 30, 2018, 09:19:48 AM
So, if at the end of last week to confirm the transaction in the next block it was enough to pay 10-12 satoshi / bytes, then by Tuesday morning this figure decreased almost 10 times.
Such figures are explained by experts as a reduction in the cost of bitcoin, the size of the commission itself and the amount of spam transactions in the network.
Note also, in the bitcoin network, the percentage of SegWit-transactions increased, which help to reduce the amount of commissions. As of Tuesday morning, January 30, their share in the total volume of transactions is estimated at 16%.
Will the bitcoins again have low fees?
4  Alternate cryptocurrencies / Altcoin Discussion / Trinity Network Credit - good startup on: January 25, 2018, 12:56:56 PM
On January 22, trinity network credit was released on the kucoin. On the kucoin, it has a top 3 large volume. This is a scaling protocol for NEO, like Raiden Network for Etherium. I will follow both companies. If one shows successes and shoots, then I'll go to the floor cutlets in another.

If my post turns out to be useful, please sent me a Merit (on the right, where the button is to quote)
5  Alternate cryptocurrencies / Altcoin Discussion / Tierion is a good opportunity on: January 25, 2018, 12:49:14 PM
Tierion on January 21 made + 40% to bitcoin. They increased the award per node, and also plan to redistribute awards for more honest shares for each holder on node. This is done with only one purpose to increase the number of nodes. A large number of nodes can only be needed if the network is increased. Increasing the award per node is a hint from the company itself to the growth of its capitalization. Tierion has a competitor Factom that has a capitalization of 3.3 times. In my opinion, the company Tierion is better and will soon overtake the company by Factom. Look at the trading charts. Trading volume Tierion is 4 times higher. Buy this coin and you will be happy.

If my post turns out to be useful, please sent me a Merit (on the right, where the button is to quote)
6  Economy / Trading Discussion / where bitcoin holds the direction? on: December 22, 2017, 09:00:13 AM
When bitcoin broke the trend line at 12850, I waited for it to go to 11000. But before this figure bitcoin did not reach and pushed off from 12100. But this is only the first day of panic. It is interesting to see what happens next. I do not miss the opportunity to go to the 11000 and test it for the opportunity to go to 9000 dollars. What do you think? I ask reasonedly to write thoughts, and not my desire to see bitcoin next year 100 000 or something like that.
7  Economy / Trading Discussion / Trade BTG and BCH on: December 08, 2017, 12:36:25 PM
Can someone tell their opinion about the BTG and the BCH. I entered positions on 1406 and 240 dollars, because I thought there was a set of positions on these coins. I understand that the bitcoin movement has a strong effect on the price of alt. What do you think about the movement of BTG and BCH?
8  Economy / Trading Discussion / Bitfinex pump/dump 29.11.2017 on: November 30, 2017, 08:23:51 AM
Bitfinex became frequent with pamp and dump. Yesterday there was a serious manipulation of 3 coins: NEO, ETP, OMG. Many people who were in marginal trading went into big minus. You can enter the exchange and see how the prices for these tokens have been omitted several times in a matter of minutes. Why such a large exchange creates manipulation and undermines trust? Or the exchange is not to blame?
9  Alternate cryptocurrencies / Service Discussion (Altcoins) / Profit from bounty companies for Jr. Member. on: October 30, 2017, 01:30:51 PM
Colleagues, please share information about the earning opportunities for the Jr. Member. How much can I earn on average on signatures? For example, I chose a good bounty company. Then, tell me, on what conditions I need to pay attention to the signature requirements, in order to choose a company with the opportunity to get a good profit?
Pages: [1]
Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!