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How to choose a cryptocurrency for investment? What to consider and what to pay attention to?

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Cryptocurrency trading can be very difficult due to unexpected fluctuations happening in this market. Therefore, the formation of a crypto portfolio must be approached with extreme caution.

By learning to professionally expand your assets, you can avoid big losses during market shocks. Strong cryptocurrencies are less exposed to risks than little-known altcoins. Therefore, choosing new tokens for long-term storage, it is necessary to carefully analyze them.

Bitcoin vs altcoins

Many crypto traders prefer to invest only in Bitcoin (BTC) . Bitcoin has many unique qualities. This is the first successful cryptocurrency in the world, and its market share is an impressive 68%. Because of this, market volatility is often associated precisely with fluctuations in the rate of BTC. Due to its place in the cryptocurrency market, Bitcoin is one of the most reliable digital currencies. Most analysts agree that the likelihood of a Bitcoin crash is less than that of altcoins.

When used properly, altcoins can become powerful investment tools. The exponential growth of the cryptocurrency market is largely due to the success of the largest altcoins such as ether, XRP and lightcoin. Now there are thousands of different altcoins. On the one hand, this gives the investor unlimited freedom of action in the market, on the other hand, it forces the most responsible approach to choosing the right asset.

Poorly managed cryptocurrencies can collapse and depreciate in the blink of an eye, which happened with Bitconnect . That is why, before stopping on something, you need to carefully study everything. Let's get acquainted with the most basic concepts of the cryptocurrency market, without the knowledge of which it is impossible to start building your portfolio.

Compare the total issue volume and the number of tokens in circulation.

If you want to professionally approach the formation of your cryptocurrency portfolio, you need to understand how the ratio of the total issue and the number of tokens currently in circulation will affect the market value of the asset you are interested in. It is simply a matter of supply and demand. The greater the demand, the higher the price. If demand exceeds supply, price will always rise.

For example, the total amount of Bitcoin emissions is 21,000,000 BTC. After the 21 millionth bitcoin is mined, their release will cease. Now in circulation are 17 867 887 BTC. This means that miners have to get less than 4 million bitcoins. As the number of tokens in circulation approaches the total issue volume, it is logical to assume that as the deficit develops, the BTC rate will increase.

The same principle applies to investments in altcoins. Even with high demand, the price of cryptocurrency is unlikely to increase significantly if the supply is large. It's like in an old saying about the sale of snow to the Eskimos. If miners have to get billions of tokens, then in the long term, the growth in demand will be easily satisfied without a sharp increase in the rate of this cryptocurrency.

Explore Decentralized Platforms

Should be taken into account and certain differences related to the field of management. Decentralized projects do not have a president, and the community controls everything. These are open source projects, and most of them can be verified using the Github service.

Decentralized platforms are the basis of the cryptocurrency market, and many believe that the whole ideology of crypto space is based on the idea of decentralization. BTC does not have its own office. Bitcoin is just a mathematical formula that exists in the crypto space. This is what makes BTC “a genuine peer-to-peer payment system,” as stated in an article by Satoshi Nakamoto.

Decentralization has its drawbacks that you need to consider when creating a reliable crypto portfolio. The main disadvantage is that you have no one to demand compensation for losses if you are deceived by scammers or you accidentally sent your money there. There is no office where you could send a complaint, and no return is provided either. If you are dealing with decentralized cryptocurrencies such as bitcoin, errors in working with the blockchain can be expensive.

Explore centralized platforms

Centralized cryptocurrencies are managed like regular companies. Such projects usually have a president and head office where you can apply. Centralized cryptocurrencies try to comply with the requirements of supervisory authorities. Examples of such cryptocurrencies are Neo and Ripple , which are created taking into account the likely future requirements of regulators.

Centralized cryptocurrencies also have their drawbacks. And here is the main one: developers fully control the creation and use of these tokens. There were cases when networks were hacked by hackers, and instead of incurring large losses, developers preferred to do hard fork and create a new currency, depreciating the old one. This is exactly what happened with the broadcast in June 2016. As a result, ether (ETH) and Ethereum Classic (ETC) appeared separately.

Rate the project

Read the White Paper of the project you want to invest in. Never invest in a project whose goals are not clearly and thoroughly explained in White Paper. This is a very bad signal and the most risky way to build your portfolio.

White Paper provides a brief overview of the market situation, and it should also say why there is a need for such a platform. In addition, there will be a technical section containing information on the internal structure of the platform. Experienced investors prefer to invest in open source projects. This means that the community can evaluate the work of developers and help them, making the code more efficient and reliable.

A good White Paper also includes a roadmap showing how the company plans to grow at various stages. There will also be a section "Team", which will contain information on leadership skills and experience of developers. Contact the team representatives on social networks and ask them your questions. If they answer you, this will be a good sign showing that the project is actively developing.

Stay tuned for the latest news.

The cost of cryptocurrency can greatly depend on what is written about it in the cryptocurrency media. The best cryptocurrencies are constantly featured in the news, their teams are actively talking about how these projects are developing.

Always check the reliability of news that can increase the rate of a particular cryptocurrency, for example, if it is a question of the fact that this cryptocurrency has begun to be traded on a large exchange .

Responsibly approach the formation of a cryptocurrency portfolio

Blockchain made a technical revolution in a wide variety of fields. In the coming months, cryptocurrencies will continue to gain popularity and further growth of this market can be expected.

Follow the tips from this article and responsibly approach the formation of your cryptocurrency portfolio by choosing the most promising options.

Publication date 08/10/2019
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TRON (TRX) cryptocurrency review – forecasts and prospects, current rate

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Cryptocurrency TRON (TRX) is a decentralized protocol based on blockchain technology designed to create a global entertainment network with free content.

In simple terms, TRON is a service similar to all well-known social networks and platforms where users have the opportunity to publish, view and use any available content for entertainment, for example, online games.

The TRON project is currently developing the idea of joint consumption, which is that on a single global platform, users will be able to share entertainment content.

Official TRON cryptocurrency website: https://tron.network

Analysts call this platform the broadcast of the modern entertainment industry. In general, the functioning of this system is as follows:

  1. The author or copyright holder publishes the result of his intellectual work on the official website. You can download anything from literary novels to an author’s song or art on a specific topic. Next, the participant uploads information about how his creation can be used (as an accompaniment to another work or as an independent product). Nearby, he indicates the price of his work.
  2. Another user who is interested in this work acquires it for the local currency Tron (TRX). However, users should remember that it is impossible to purchase this or that product on this resource using fiat money (dollar, euro, rubles, etc.). The system has its own cryptocurrency , which must be purchased at exchangers or exchanges in order to complete a transaction.
  3. As soon as the interested user has acquired the result of intellectual work, the amount indicated by him is transferred to the author’s account. The author can use the tokens at his discretion – purchase a work from another author, simply save money in his account, or exchange it for another cryptocurrency or fiat funds.

About what TRX is, initially interested in all users who are just starting their activities on the site. This resource uses several types of tokens for different purposes:

  • Tron (TRX) . This is the main currency of the system. For this currency you can buy or sell the results of your intellectual work. If necessary, the owner of a certain amount in this currency can exchange it for fiat money or other cryptocurrency.
  • Tron Power It is impossible to purchase or exchange other money for a given currency. The only way to get them is to secure the TRX currency on the site platform. In this case, they are converted to TR. The presence of such tokens gives advantages to their owner. For example, the holder of a TR has the right to vote for one or another change in the system, or to oppose them.
  • TRON 20 . Coins owned by developers. With the help of them, they create new full-fledged blockchains with new tokens.

The TRON cryptocurrency issue is limited, 100 billion coins have been issued at present. However, it is worth considering another point – starting in 2018, tokens begin to be burned (they are meant to be forwarded to an address known only to developers). The last major burn was in June last year, but how often such procedures will be carried out is currently unknown.

project team

The team of this project has on its side professionals working in various fields. The founder of the platform and the creator of TRX Coin is Justin Sun , who also created a social network with an audience of 10 million people. In 2017, Forbes magazine included Justin on his list as one of the most successful entrepreneurs, who was not yet 30 years old.

The technical director of the project is Lucien Chen , who has extensive experience in working for large Internet companies. He is perfectly versed in blockchains and the principles of functioning of cryptocurrencies.

Deus Yu , responsible for quality control, has been working in the computer games industry for a long time. According to Justin Sun, the experience of Deus will come in handy a little later, when the platform gains even greater popularity.

Charles Zhang , an adviser who is well versed in a business not related to cryptocurrencies and blockchains. He has repeatedly lectured on the basics of entrepreneurship, with which he was invited to many universities. Charles made a huge contribution to the promotion of the platform at the initial stage.

Blockchain Browser

Block Explorer is a search tool that allows you to view the addresses of wallets involved in the system, blocks, as well as data of transactions completed or committed. It can be compared with standard browsers, with the help of which an ordinary user searches for the information he needs on the Internet.

For each cryptocurrency, a personal Block Explorer is created that shows the network status for a given period of time. For the Tron cryptocurrency, such a Block Explorer is called TRONSCAN , where users can get all the information they need ( https://tronscan.org ).

How to mine Tron?

The developers of the platform did not provide for mining the Tron cryptocurrency , since they had already created all the necessary coins. In addition, the creators talked about the scheme according to which their cryptocurrency will work:

  1. 40% of the total number of coins will go on sale to enable the project to develop further.
  2. 15% of the remaining amount is allocated for acquisition by investors. Investors are players who, after the main sale of coins, will be ready to purchase tokens further.
  3. The remaining funds are “frozen” and remain in the accounts of the company owners.

Justin Sun explained that perhaps mining will be provided in the future when the company gains the necessary popularity.

TRX Token Wallets

The user can choose one of two options for storing Tron coins (TRX):

  • Storage of tokens on the exchange;
  • Creating your own crypto wallet.

With proper use, wallets provide a higher level of security. All types of wallets for Tron (TRX) are described in detail in this review .

Buying and selling TRX coins

You can buy a Tron on popular crypto exchanges , we recommend that you use the first 15 exchanges, and do not forget to install additional account protection. On the selected exchange, you must go through the registration procedure, after which you will be given a personal wallet, as well as its address.

The most popular and safe exchangers where you can buy and sell Tron:

The exchange rate of the Tron cryptocurrency against the ruble as of October 28, 2019 is 1.29 rubles per 1 coin. For a detailed analysis of the course and chart of coins, we recommend that you look at the Coinmarketcap website.

Development Perspectives and Company Roadmap

A distinctive feature of the project is its roadmap, which is scheduled until 2027. It is divided into several stages:

  1. Exodus It lasts from 2017 to 2018 and is considered officially completed. During this period, information about the project was actively disseminated, as well as developers were engaged in improving tools for using the site.
  2. Odyssey . Accounted for 2019-2020. During this time, developers will pay special attention to the economic development of the platform.
  3. Great Voyage . Captures July 2020 and ends in July 2021. Implementation of a personal ICO system, and third-party developers will have the opportunity to launch their own ICOs.
  4. Apollo It lasts from March 2021 to March 2023. Creating a decentralized exchange platform.
  5. Star Trek . It begins in April 2023 and ends in September 2025. Creation of a decentralized platform for the development of any computer games.
  6. Eternity . It starts in September 2025 and ends in September 2027. Platform users will have the opportunity to create their own playgrounds.

The developers mentioned that if these plans are implemented, a new roadmap will be created in the future, which will begin in 2028.

When analyzing the active nodes of the Tron cryptocurrency, you can notice the scale of the development of the project, where the majority of servers are located in the USA, China and Germany.

The forecast for Tron cryptocurrency from leading analysts suggests that, taking into account the current features of the crypto asset, in the future the project can absorb the entertainment market. And this means that in 2020 the value of one coin is able to stand on one level with the dollar.

Main competitors Tron

The project has two main competitors – Qtum and Ethereum . Each competing company has its own advantages, for example, the first has a more advanced platform in terms of technology, and the second wins due to smart contracts and fame.

Analysts are confident that the Tron platform will still have to fight for its users, since the developers are aimed at a specific audience. However, the Throne does not have special advantages that would distinguish the project from its competitors, which could become a serious problem in the future.

Conclusion

Tronix cryptocurrency has good prospects for further development, since the project itself is one of the most ambitious among others. However, at present it is not in demand. Investing in such a project will bring quite large risks, however, long-term investments can bring the investor good profit.

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The largest exchange Binance has the opportunity to deposit / withdraw deposits in rubles

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The Binance cryptocurrency exchange this Wednesday activated the possibility of making deposits in Russian rubles.

According to the instructions provided on the website, deposit / withdrawal of funds is carried out through the AdvCash payment system , including using bank cards. The commission for the deposit in this case is 3%, for the withdrawal – 2.5% plus 50 rubles.

To deposit / withdraw assets in rubles, you need to go to the “Buy cryptocurrencies” tab in the upper control panel or select the “RUB” currency in the user's wallet, then indicate the desired direction of payment and other necessary data.

Trading pairs for exchanging the ruble for cryptocurrencies on the Binance platform have not yet been presented.

Earlier today, CoinDesk published excerpts from a conversation with Binance CEO Changpen Zhao during his visit to Moscow last week.

“We are always looking for partners in any community, especially in Russia. Russia is a key market for us, it is one of the most active markets in the global blockchain space, ” he said then.

Zhao also confirmed that Russia is included in the Venus project, in which Binance intends to launch several regional stablecoins.

“We are working with potential issuers of stablecoin tied to fiat currency. We do this in all jurisdictions, in Russia in particular, we are looking for partners, ” he added.

Last week, Binance listed its first cryptocurrency pairs on its main platform, starting with Nigerian naira. The exchange also supports fiat trading at selected sites in Uganda, Singapore, the United States and Jersey.

Publication date 10/30/2019
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Technical analysis: the cryptocurrency market is ready for a new growth wave

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RoboForex lead analyst Dmitry Gurkovsky talks about further possible scenarios of the price movement of bitcoin and several popular altcoins .

Buyers managed to show a good bounce up. At the moment, assets such as Bitcoin and Bitcoin Cash look very interesting in the context of continued growth. Moreover, if the BCH / USD chart shows the formation of a reversal pattern of the inverted “Head and Shoulders” in favor of growth, then BTC is just getting ready to leave the channel and continue a confident upward movement.

Unfortunately, the assets of Ethereum, Litecoin and EOS are still under pressure. There are several signals from daily charts in favor of moving down. However, if the bulls manage to break through the next resistance levels, then these assets will be ready to move to the phase of sustainable growth.

In general, the cryptocurrency market looks ready for the start of a new wave of recovery. The bulls can only hold the current levels and rise a little higher to deprive the bears of all chances to continue the downward correction.

Bitcoin (BTC)

Quotes showed an aggressive rebound from the support level. However, the price tested resistance in the form of a downtrend near the $ 9800 area. To continue the rise by the buyer, it is important to “push” prices even higher.

A good signal in favor of a likely continuation of growth is the breakdown of a downward trend line on the RSI indicator. In most cases, a return to the broken line occurs, after which we should expect continued growth. As the main trading idea, you can take a slight correction to the level of $ 7700, after which you can talk about a rebound and upward movement.

Cancellation of this option will be a fall in the quotes of the digital asset below the level of $ 6875, which will indicate a breakdown of the lower boundary of the channel and continued decline.

On the 4-hour chart, cryptocurrency quotes were able to leave the limits of the short-term downward channel. Such a signal is the first sign of a potential reversal of the current downward correction. However, confirmation of the completion of the fall will be a strong growth with consolidation above the level of $ 10,995, which will indicate a way out of the downward channel. In this case, the target of the movement will be the area of $ 12,405.

The values of the RSI indicator again pushed off the resistance level, so we should expect a decrease and a test of the broken channel boundary. After this movement, we can talk about the beginning of growth towards the goal at the level of $ 10,995.

Ethereum (ETH)

Ethereum buyers also managed to keep quotes in the support area, which is located at $ 147. At the moment, the price has once again returned to the area between the moving averages, which may provoke an attempt to further decline.

In favor of this option is a rebound from the downward resistance line on the RSI indicator. As the main idea, we should expect a rebound from the lower border of the rising channel and the continuation of the fall to the first target at $ 147. Its breakdown will open the way for the movement of quotations to the level of $ 100. Cancellation of the negative option will be a breakdown of the Moving Averages and the consolidation of ETH / USD above the level of $ 239. In this case, we can talk about continuing the rise to the goal at the level of $ 280.

On a 4-hour chart, quotes are clamped in a downward channel. The values of the RSI indicator are testing the resistance line again, so we can expect a rebound and fall in the quotes of the digital asset to the level of $ 150.

In favor of this option, a test of the upper boundary of the downward channel will also come forward. Cancellation of the proposed forecast will be a breakdown of the resistance level and consolidation above $ 202, which will indicate the exit of quotes beyond the rising channel. In this case, the target of the rise will be the level of $ 239.

Attention!

Forecasts of financial markets are the private opinion of their authors. Current analysis is not a guide to trade. RoboForex is not responsible for the results of work that may arise when using trading recommendations from the submitted reviews.

Publication date 10/30/2019
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Name Price24H (%)
Bitcoin (BTC)
$7,488.05
-0.30%
Ethereum (ETH)
$149.66
1.10%
XRP (XRP)
$0.227464
0.05%
Bitcoin Cash (BCH)
$212.84
0.34%
EOS (EOS)
$2.73
-0.04%
Stellar (XLM)
$0.055576
0.37%
Litecoin (LTC)
$45.39
-0.71%
Cardano (ADA)
$0.038255
-0.51%
Tether (USDT)
$1.00
-0.10%
Monero (XMR)
$53.79
-0.98%
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