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April 19, 2019
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The problem lies in a certain parameter called the “block size limit”. First, we will spend a very quick acquaintance with the basics of Bitcoin for those who do not know. All transactions that have ever occurred on the Bitcoin network are recorded in a public and intrusion-protected registry called the “blockchain.”
The main issue
All these features of the functioning of the system led to the problem of scaling Bitcoin and limited its theoretical size. A blockchain is a sequence of blocks, each of which is a set of transactions protected by cryptographic algorithms. At the same time, Satoshi Nakamoto (about a year after the creation of Bitcoin) limited the block size to one megabyte. This was done in order to prevent possible DoS-attacks of intruders when they create large (in theory unlimited) blocks to paralyze the network.
However, such a security measure had a negative effect on the network capacity in general (in the long term). Today, bitcoin can process about 7 transactions per second (TPS). At the same time, the actual load on the Bitcoin network is 3.5 TPS. For comparison, the TPS indicator in the Visa system is 2,000 (at the moments of peak activity – 50,000).
How to solve it?
The initial simple solution was to increase the block size. But this idea was not easy. But there was no clear agreement on how much it should increase. Some were in favor of 2 MB, another advocated for 8 MB, and one developer wanted to go up to 32 MB.
At that time, an increase in the block size was the simplest solution from a technical point of view, but none of the schemes was implemented. Refusal to implement turned out to be associated more with political (within the Bitcoin ecosystem) problems than with technical ones. The presence of large blocks could lead to the centralization of Bitcoin, since their storage and processing would require even more computing power, and only large companies can allocate such amounts of resources. Thus, there would be a contradiction with the main idea of Bitcoin blockchain as user-controlled cryptocurrency.
Solution 1: SegWit
Segwit is an abbreviation for the term Segregated Witness, which can be literally translated as “separated witness”. Understanding the meaning of this term will be easier after considering the structure of a transaction on the Bitcoin network.
Solution 2: SegWit2X
In 2017, a new approach was discovered: Segwit2X. This idea — supported by several of the largest exchanges in the sector — combined SegWit with an increase in block size of up to 2 MB, which effectively multiplied the capacity of preliminary transactions up to 8 times. The proposal, which did not solve the problem, caused another wave of discord. The way it was resolved and its lack of protection against replay struck many. And the deliberate redistribution of power from developers to miner enterprises threatened to cause a fundamental split in the community.
Solution 3: Schnorr signatures
This is a way to improve network bandwidth by aggregating the signatures needed for BTC transactions. The size of the transaction becomes smaller. This means that additional transactions will be added to the network. In addition, the commission is calculated per byte.
Bitcoin scaling options
While the use of bitcoin as a payment mechanism seems to be fixed in its value as an investment asset, the need for more transactions is still relevant. After all, fees charged by miners for processing are now more expensive than equivalents in Fiat. Moreover, taking into account that we are still at the beginning of the evolution of cryptocurrency, the development of new features that enhance functionality is crucial for the implementation of the base blockchain technology.
The issue with the Bitcoin scaling options
April 18, 2019
Back in the year 2009, bitcoin cost mere pennies. However, at the moment, the rate of cryptocurrency has jumped to unprecedented heights. Therefore, the question of where to sell Bitcoin is more relevant than ever. If you are also interested in this question, then read this article. In it we will talk about all possible ways to sell bitcoin. Those are the main ways to sell your Bitcoins:
- Stock exchanges;
- Peer to peer;
- Direct deals;
- Bitcoin ATM;
Stock exchanges
Why are cryptobirds so popular? Perhaps the main advantage of such services is security. Exchange acts as an intermediary. If you want to sell a cryptocurrency, then you just need to place the appropriate application and specify the desired price. When a buyer appears who is satisfied with your price, the exchange will automatically conduct the transaction. In the end, you get the money, and the buyer – Bitcoins.
Start with creating an account
The service will ask you to answer a few questions and download identity documents. These include a passport, driver’s license, residence permit or official work permit in a particular country. You will also have to confirm your bank account. For this cryptobirge asks for an extract. Still, need to confirm the place of residence. This can be done, for example, with the help of a receipt for utilities.
As with any ordinary stock exchange, the sale of cryptocurrency takes time. During the bidding price is the amount that will be at the intersection of buyers and sellers in the so-called stock glass. Exchange glass is the volume and prices of transactions set by exchange participants. Sellers tend to sell the cryptocurrency at a higher price, buyers want to buy cheaper, therefore, orders of some will be higher than the market value, orders of others will be lower.
Placing Order and withdraw money
When you place an order to close the purchase or sale of bitcoins at a certain price – it is considered that you have placed a limited order. The system will fulfill your demand either at the price you specify or at a price better than the one you set. You can be sure that your order will not be fulfilled at the worst price. An order can be closed in one transaction if the seller/buyer is found, with price parameters that fully satisfy your order, or in several transactions, if there are no such sellers/buyers.
In this case, you can close the transaction at once, if you place an order at market value. In this case, you spend the minimum amount of time, because someone’s application will be executed online. True, one can hardly say that this method will ensure the closing of the transaction at a good price because as a rule, we always want to sell more expensive.
Peer to Peer Bitcoin exchanges
P2P translations were created to solve / avoid problems that appeared with ordinary translations. Due to the fact that a very limited number of structures accept payments in cryptocurrency, it was necessary to exchange it for fiat currencies in order to make purchases. It was then that had to resort to using exchangers. However, a minus of such a system is that the exchangers are controlled by people, the owners of the services are both the solvers of disputes between users and the controllers of their actions. In addition, they charge a fee for their work.
When using conventional exchangers, the user places information that he intends to buy a certain amount, for example, Bitcoins, or sell. The exchanger searches for matching offers and makes a deal. Transactions with such a system can last from 5 minutes to several hours.
Bitcoin ATMs
ATMs is a good alternative to exchanges. Sale through ATMs is made very quickly. Moreover, ATMs is extremely easy to operate. They do not require any specific knowledge or trading skills from you. Nevertheless, the course in ATMs less profitable than on the stock exchanges. Moreover, ATMs may also charge a fee for the services provided. Because of this, selling bitcoin for rubles through exchange points is not very profitable.
Direct Deals
Perhaps the most profitable way to sell bitcoins is a direct deal. The bottom line is that you yourself find a buyer and offer him to buy your tokens. You can dictate your terms of the deal and sell the cue ball at the desired rate. Moreover, the transaction is carried out without commission, as for carrying out direct transactions do not need to use third-party services. However, the main problem with this method is security. The person who decided to purchase your bitcoins from Blockchain’s wallet may well turn out to be a fraud.
April 17, 2019
Many digital tokens are released every year. However, despite the growing number of currencies, only a few have succeeded. As part of an ICO team, it is very important that you take into consideration the factors influencing the success of these ICOs. One of the ways that you can distinguish yourself in the industry is to make sure that your tokens make it to the Token List on Cryptocurrency Exchanges.
The Token List
Every exchange has a token list. This token list contains all the coins traded in every exchange. You can also see other circulating cryptocurrencies.
Why get your token on the token list exchange?
Once your ICO is finished, the next step that you need to do is give value to your currency. This step is very important because this will add monetary value to your currency. It will not just keep your project afloat but will also make your investors happy.
In order to keep money coming, you need to add more utility to your currency. If your digital currency makes it to the list of token exchanges, more opportunities will definitely come your way.
ICO token listing sites that you should check out
One of the advantages of getting your token listed is that it adds more credibility and value to your currency. To get to this listing, your marketing team should explore some of the sites below.
• ICO Alert
• ListICO
• ICO Hot List
• The Tokener
• Top ICO List
• ICO Map
• BestCoins
• ICO Watchlist
• CoinMarketPlus
• Coin Schedule
Where to get listed
As of this time, there are hundreds of cryptocurrencies circulating in the market. It makes you wonder how and where you should start. However, there are some sites that will guide you on getting on the token list. You can check out The Ultimate Guide To Cryptocurrency Exchanges. Aside from this guide, check out the other top exchanges for your token listing.
• Kraken
• Coinbase
• CEX.IO
• HitBTC
• Bittrex
• KuCoin
• Binance
Things that you need to do to get listed
Each cryptocurrency exchange has its own terms and conditions. It’s a gamble on which exchange you wish to get your digital currency listed. However, you need to always remember that exchanges will always check the quality of every ICO project and their software. It is very important that you give them complete details on your digital token. It is vital that you equip your marketing team with the tools for marketing your digital token on the platform. You can also post your source code in Github. In fact, some platforms require you to post the source code there. Aside from that, make sure that your digital currency passes the Howey Test.
Applicable Fees
Most people usually think that getting their digital currency listed won’t cost them a penny. In reality, however, you need to shell out money for that. Crypto Exchanges have a list of fees in their platform. The fees depend on the popularity of your currency in the market. Some exchanges even charge 1,000,000 BTC just to get the token in the list. Once you submit your ICO token for evaluation, it will take some time before you can get the results.
Listing services for Crypto Exchanges
Another way to get your currency is listed is to check crypto agencies that offer this service. It can mean less hassle on your end and can be very helpful. Although it can cost you a certain amount, these agencies’ platforms can help you market your currency. However, you need to take note that even if you get your listing, it is still not a guarantee for your currency to succeed.
If you wish to get the services of a crypto agency, make sure that you prepare the following information:
- The details your company and the owner/s
- The name and description of your token and your logo,
- Name of your blockchain platform
- The date of your ICO launch
- YourGithub link
- Listing fee (Note: The listing fee vary from site to site)
An ICO token listing is usually competitive. However, the tips listed above might just help you get the listing that you wanted.
April 16, 2019
ICO teams continue to grow in number in recent years. However, not all of these teams were able to succeed in making a successful ICO token. ICO tokens come in different types and names. If you plan on making your own ICO token, it is best that you know what the token is really all about.
ICO Token
ICO tokens are products that have a specific value assigned to it. Usually, when giving value to a token, the creator assigns an equivalent to it. One token can be equal to a certain monetary value or service.
In Making an ICO Token
Making your own digital token is a big leap in creating an ICO. An ICO is a fundraising project that usually funds ICO projects in exchange for the cryptocurrency. Many platforms like Stellar and Ethereum allow traders to create their own cryptocurrency. It also helps to have your own blockchain in making your ICO token.
Make sure that you are able to address the questions below. to help you scale the success rate of the ICO token that you plan on making.
• What is your business’ overall goal?
• Can your business profit from using blockchain technology? How?
• Is it necessary to have a token system for your business?
• What value does this token give to its users?
• Does it conform to all the legal requirements of an ICO token?
• Can you list your token in a cryptocurrency exchange?
• Do you have competitors? If so, identify them and their products.
Types of ICO Tokens
In creating your own ICO tokens, you also need to classify what type of ICO token it should be and the purpose it will serve. There are three categories for ICO tokens:
Equity Tokens
Equity tokens are the newest type of tokens in the market. These tokens are similar to investment shares in IPOs. Investors get Equity Tokens in exchange for the money that they invest. In addition, these tokens allow the investor to vote and decide on matters relevant to the ICO Company. However, Equity Tokens do not have clear regulations and can be a high-risk investment.
Security Tokens
You can issue Security Tokens for almost everything. They are often used on products that are tangible. They are used to tokenize properties and other material assets. Many ICO companies often offer this type of token. Security tokens are covered by strict security regulations. Make sure that you take the time to read and study these regulations if you plan on issuing them.
Utility Tokens
However, before you start dispensing and creating Utility Tokens, be sure that they pass the Howey Test. The Howey Test helps you determine if your Utility Coin is able to meet the security requirements mandated by the government. Utility Tokens play an important role in a blockchain application or platform and allow users to enjoy special benefits from it.
Initial Supply of your ICO Tokens
ICO teams usually decide on the number of tokens that will be made available in the market. They also have a say on how these tokens will be distributed. Down below are some of the options on how you can create a number of digital tokens to be released and how they will be distributed:
- ICO Sale
- Private Sale
- Pre-ICO sale
- Post-ICO sale
Furthermore, you have to allocate tokens for your advisory board and ICO team. You also need to set aside a number of tokens for your business reserves and expenses. Having a specific amount that you want your tokens to reach also helps determine the initial supply of your digital token. You can set a hard cap and soft cap on the amount that you want to raise.
How to create your ICO token
Many ICOs often use Ethereum as their primary platform. It doesn’t take a lot of time in creating a digital token on Ethereum. It usually takes about 20 minutes to issue tokens through the platform. There are also other alternatives that you can use in creating tokens. There are times that Ethereum networks would set a limit to their platform transactions. You can also use other platforms like Stellar to create your own cryptocurrency.
In making an ICO token, always take into consideration the uses and types of
the tokens. In this way, it will be easier for you to conceptualize and scale
up its functionality. Always remember that a worthless coin is easily replaceable
in the world of cryptocurrency trading.
April 15, 2019
The rise of cryptocurrency is one of the reasons why many ICO teams and companies flourish. They were able to conceptualize projects like WAVES, NEO, and Bancor. These ICO products are among the top ten ICO projects. It is no wonder that many ICO teams would want to create their own successful ICO product.
Accomplishing this feat, however, entails a lot of work. Here are some things to consider.
Making your Own Successful ICO product
In creating a successful ICO product, always bear in mind the kind of value they will create with the public. This idea is the most common mistake that many entrepreneurs often forget. More often than not, they usually create ICO products just for the sake of the hype.
It is important that you clearly develop the concept of your product or service. Potential investors would always want to see a solid product or service for them to invest on. Make sure to state all your plans in a white paper. It will help you convince your investor, thus helping you achieve your goal faster.
So, put a lot of consideration when conceptualizing your product. It should be in line with what you want and not just simply following the trend.
Characteristics of a Good ICO Product
Creating a successful ICO product is not easy. You need to consider its functionality, design, and branding. Once these three are addressed properly, you will know that the product will succeed in no time. Down below are some of the questions that will help you assess the success potential of your product.
• Is the product useful?
• Can it give value to your customers?
• Will it help address problems?
• Does your market have a remarkable demand for your product?
• Will you be able to optimize it?
• Is the price reasonable enough to make a profit out of it?
• Is it up to par with similar products in the market?
• Is cryptocurrency an important feature of this product?
Examples of Successful ICO Products in 2017-2018
In a span of one year, many interesting ICO products and services were created and sold. If you are unsure of what product to offer, here are some business ideas that you should check out.
● Literature
● Equities
● Goods
● Fundraising
● Real estate
● Service leases
● Credit
● Time-based rentals
● Art
● Music
● Futures
It may not look like it, but there are a lot of things that you can tokenize. Some ideas may seem unusual, but they are actually possible.
Should your product be ready before the ICO?
Your product doesn’t have to be completed before the ICO. However, having a finished product would be better. The beta or MVP version of the product contributes to the success rate of the final ICO product. It helps investors visualize the system. It will also convince them to fund the project without any further questions.
Things that you should do before ICO
Basically, you need to research on the technical part of your planned product. As much as possible, you should conduct simulations from time to time. Simulation can help you see loopholes in your product. Aside from this, you also need to research the market of the product. This will help you assess whether the product can be well-received by the market.
You can visit forums like BitcoinTalk. You can also ask the opinion of other traders and experts in cryptocurrency.
Creating your own ICO product is never easy. However, with the right concepts and system, your own cryptocurrency will boom in no time at all.
April 14, 2019
How To Create A Website For Your ICO
In ICO marketing, a great website is a prerequisite. Cryptocurrency traders often check the websites of many ICO companies. They usually decide on whether or not to invest in it based on the information that they get from the website. As an ICO company, it is important that you impress your prospective investors with your website.
Creating an ICO websiteM
Having a website is a must for any business models. Traditional or not, businesses are now using websites to expand and reach out to their market. For ICO companies, your website is a portfolio for your possible investors to check.
In creating a website, all the information it contains should be accurate. The website should contain the project’s information, the white paper of the project and the token you are marketing. You should also add information about the team members so you can build your profile’s credibility.
Finally, link your website to social media platforms like LinkedIn, Twitter, Facebook, and Telegram.
Languages for your website
English is the language commonly used in many websites. However, there are countries that don’t usually use English as their first or second language. It is best that you add other language options for your website such as Spanish, Chinese, or Russian. This feature helps your website attract prospective investors from non-English speaking countries. In this way, clients can easily understand technical terminologies without using online translators.
What your Homepage should look like
When opening your website, the first thing that your client sees is the homepage. It is very important that your investors will see the kind of services you are offering. For ICO websites, your homepage must have a preview of your ICO product or service.
Once you have given a preview, make sure that you also add a boilerplate of the project. Add a countdown timer to catch the attention of the visitors. In this way, your visitors will anticipate the kind of product you are offering and when it is going to be launched.
Make sure that the website is also mobile friendly. In this way, users can also access it with their mobile devices.
Project Preview
The project preview is another important detail that your website must have. It contains the basic and most important details of the project. It must be written in the simplest way possible. This is to make sure that your project is easily understood by others.
Down below are some of the information that your project preview must contain:
• Goals of the ICO
• Innovations made by your company
• Where your business is located
Digital Currency of Your Website
In ICO, always remember that the digital token made by your company is your main product. It is very important that you entice investors to buy or invest in your currency.
You can do this by giving important information that will answer these questions:
• What is the name of your cryptocurrency?
• What is its ticker?
• How is it used?
• What is the price your cryptocurrency?
• Does it have a bounty? If so, what is it?
• Does it have airdrops?
• What is the total supply of your cryptocurrency?
• When will the ICO start?
• When will it end?
• What is its soft and hard cap?
Documentation
Another important section that your website should have is the documentation of the ICO and its token. Make sure that you put the white paper of your ICO, the business roadmap, and other legal documents that are required in establishing an ICO company.
Social Media Platforms
Social media marketing is another way of promoting your crypto currency’s visibility. Make sure that you link your ICO website to your social media accounts. It will help you get a good number of followers.
The ICO Team
In one of the pages of your website, make sure that you add the members of your ICO team. It helps build your token’s credibility. It is also important that you add your members’ portfolio, positions in the ICO team, as well as links to their LinkedIn profiles.
ICO Website Development
Many ICO owners usually make their own ICO websites. You can create a website by simply using an ICO website template. These templates are available on the internet. If you are not comfortable with your coding skills, you can hire an ICO website developer instead.
ICO Web Design
If you haven’t decided on how you want your website to look like, here are some of the web design examples that you should check out:
• Eligma
• AdHive
- Bloom
• Sharpay
Your ICO website plays an important role in making your ICO Company grow. Make sure that you put a lot of consideration on developing your website to be. In this way, you will be able to build a strong and capable digital presence of your ICO Company.
April 13, 2019
How to build an ICO team
Behind every successful cryptocurrency project is a great ICO management team. Many investors often consider funding ICO teams because of the high rates of return that they bring and their high success ratings. However, investing in ICOs can also be risky. If are interested in organizing your own ICO team, here are the basic things that you should consider.
What is ICO?
Initial Coin Offering (ICO) is a fundraising mechanism for the ICO team’s new projects in exchange for cryptocurrency and fiat money. These could include the launch of new products, implementing activities to attain the organization’s goals, or starting a new cryptocurrency.
Usually, the ICO team provides a white paper and website for prospective investors to check out. The information they contain helps the client to decide on funding the projects by investing in the ICO. ICO offerings can either be done through crowdfunding or through private offerings.
Things That You Shouldn’t Do
In building your own ICO team, there are several things that you need to remember. Based on the experience of some of the ICO companies, here is a list of some of the indicators that veteran investors are wary of:
- When the team doesn’t have a record of the companies they have funded.
- They do not provide information about the company or the team.
- They are using dummy names and a fake track record of their work
- Lying about who the members of the team are.
- The turnover of team members is frequent and the turnover rate is high.
Investors usually consider these indicators as red flags; so, they usually steer away from this kind of ICO team.
Things That You Need to Do
In building your ICO team profile, you need to remember that your website and marketing collateral should have the following information:
- The names of the team members with their pictures
- LinkedIn profile link
- Track record of the members
The information that is provided must be accurate and updated. It will help you establish your presence with cryptocurrency investors.
The Positions of Your Team Members
The first thing that you need to do when establishing your team is to designate the position of each member. This will facilitate your management of the products you are handling as well as the other functions in making your project work. Although roles and functions may vary from one team to another, make sure that you take note of the important ones.
- Founder/ Chief Executive Officer
- Chief Technological Officer
- Chief Financial Officer
- Chief Operation Officer
- IT developers
- Quality Control group
- Web designers
- Marketing team
- Advisory board
Before you designate the roles, make sure that you check the background of your candidates. Whether it’s ICO or traditional, the key to a successful business lays in the people managing it.
Potential Members of the Team
Recruiting your ICO team members can be really challenging. Most people would join crypto-communities to meet possible team members. If you don’t know anyone in the community yet, you can try Upwork or LinkedIn. These websites allow you to look for expert freelancers to help you build your own ICO team.
There are also other portals that you can check out:
- Token Market
- Bitcoin Forum
- CryptoCompare
- Ambisafe
- ICO Now
- ICO Rating
- List ICO
- ICO Bench
- ICO Drops
- List ICO
- ICO Ranker
- Coinschedule
- ICO Tracker
When you surf through these sites, make sure to interact with the other members. You can actually scout promising individuals through these websites.
Choosing the Best Advisory Board
The advisory board is an integral part of the team because they can help you decide on specific issues. They can help you make sound decisions and guide the team to the right path. The advisory board should be composed of experts, influencers, and entrepreneurs.
When choosing the members of your advisory board, it is important that you check their credentials first. Also, your advisory board should also share the same ICO idea and principles with you.
April 12, 2019
If our readers are planning to start trading cryptocurrencies it is useful to understand that, in fact, there is no Bitcoin as such. They do not lie somewhere in a flat pile and are not even on the hard disk. The owner of the virtual coin can’t pick up a bill or point to a digital file and say: “Here they are, my bitcoins!” Instead, he can see or show the balance of the wallet and his transaction history.
All bitcoin transactions, in turn, are carried out in e-wallets and require a digital signature. It is necessary for safety. Each money transfer becomes known to all users of the network, as Bitcoin has an open history of operations. Each transaction is stored in a public book.
The process
BTC transactions are essentially a regular money transfer. It is only carried out much faster. To transfer money, you only need the address of the recipient’s bitcoin wallet. No first and last names. On the part of the user, the operation looks like this: a wallet is opened, the recipient’s address and the amount of the sending are entered, the signature is executed using the private key. Everything, 10-30 minutes – and the money from the recipient. Behind this simple at first glance, the process hides a huge world.
For example, if Alex sends Bob two and a half bitcoins, the transaction will have three pieces of information:
- Entrance. Record with information about where Alex got his bitcoins.
- Amount. The number of transferred coins. In this case, 2.5.
- Output. Bitcoin wallet address of Bob.
If you think that the commission in the implementation of operations with Bitcoin – something beyond the limit and out of the ordinary, take it easy. Banks, payment services, exchanges, you also pay a commission for the implementation of the transaction, even though it is sometimes invisible. Deductions, in this case, make up the profit of the service or go to maintain its livelihoods. In the case of Bitcoin, commissions go to miners who assist you in conducting the operation. Please note that deductions for fees are not required. If you do not pay, your transfer will come true, although it will take a long time to wait.
Transactions take some time
Since the transaction must be checked by miners, sometimes you have to wait until they finish mining the block. Bitcoin protocol regulates mining so that each block takes about 10 minutes.
This can cause difficulties with instant payment for services in stores that accept bitcoins. In most cases, devices are used that deferred conduct transactions. This is normal for low-cost transactions where the risk of fraud is not so great.
Public and private keys
During the creation of a Bitcoin wallet, the user is given a private and public key. The public key is public and serves as an address for transactions. It can be seen by all users who commit transactions to it or track them in the blockchain. The private key is private. He knows only the owner of the wallet and it is on this key is based on the safety of your funds.
There is also a public key unique individual address, which is visible in the blockchain. A public key is a cryptographic code that consists of an encryption algorithm with an asymmetric key, which is used to convert messages into a non-readable format. The Bitcoin public key itself is very long because it is compressed and reduced to the form of a public address. If a user loses his public key, it is possible to recover it using a private key.
April 11, 2019
Getting Started: Bitcoin mining pool
Bitcoin mining implies participation in the work of the system in order to assist in the computation of cryptographic keys (hashes) that sign blocks of transactions in the blockchain. For finding each key, the system gives a reward in the form of emitted bitcoins. Due to the high complexity of the computations, it is impossible to find the key by yourself, being ahead of other participants, even with high-performance equipment. Therefore, more than 99% of miners, with the exception of those who have the fantastically powerful computing power, work through these sites.
- You will need to download from the official resource the software that is required for the implementation of mining.
- You will need to understand the software, configure it, and design its launch.
- Then everything is simple – test mining on your computer, and calculate how much you can earn on it through this pool.
In principle, everything is extremely simple on this point, nothing complicated is required. But it should be remembered that ordinary users do not have access to some pools, for example, the pool – Bitfüri is private.
Advantages
Distributed computing by a group of miners is much more efficient than a single key search. Together they manage to find the hash faster than it would if they were working alone. For the use of the resource you have to pay a commission of the pool, but this amount is insignificant compared to the increase in profitability due to the joint solution of computational problems.
Commissions
There are cases when unscrupulous owners of the “pools” robbed users, collecting the extracted cryptocurrency and disappearing. In order not to become a deceived entrepreneur, we recommend using the services of proven services. However, the more reliable the pool, the higher the commission and other types of fees. New pools lure users with a low commission and pleasant bonuses during registration, which of course attracts inexperienced miners.
Regulations
Some countries do impose a tax on Bitcoin mining income since they classify cryptocurrency as bond and stocks. Whether your country of residence does that or not you should do research or even better consult with the expert in this field.
Top 10 Mining Pools
The most popular mining services have an English interface, which does not prevent Russian miners from earning successfully with their help. The list of the largest pool of BTC mining associations includes the following resources:
1. BTC.com
Country: China.
Founded: 2015.
Commission: 17.93% of all blocks.
Is it open to the public: Yes.
2. AntPool
Country: China.
Founded: 2015.
Commission: 14.40% of all blocks.
Is it open to the public: Yes.
3. SlushPool
Country: Czech Republic.
Founded: 2010.
Commission: 11.96% of all blocks.
Is it open to the public: Yes.
4. BTC.top
Country: China.
Founded: 2014.
Commission: 9.24% of all blocks.
Is it open to the public: Yes.
5. F2pool
Country: China.
Founded: 2013.
Commission: 9.24% of all blocks.
Is it open to the public: Yes.
6. ViaBTC
Country: China.
Founded: 2016.
Commission: 8.97% of all blocks.
Is it open to the public: Yes.
7. Poolin
Country: China.
Founded: 2014.
Commission: 5.71% of all blocks.
Is it open to the public: Yes.
8. BitFury
Country: Georgia.
Founded: 2014.
Commission: 3.53% of all blocks.
Is it open to the public: No.
9. BitClub
Country: China.
Founded: 2014.
Commission: 2.72% of all blocks.
Is it open to the public: Yes.
10. DPOOL
Country: China.
Founded: 2014.
Commission: 2.45% of all blocks.
Is it open to the public: Yes.
April 10, 2019
The cryptocurrency market also works in the same way as the world stock exchange. On the chart, you will see exactly the same price fluctuations as on securities or Forex, although there is a distinct feature. To know how to read cryptocurrency charts, you first need to master the understanding of what “Сandlestick chart” or “Line chart” are and how technical analysis models are built on them. Market charts make it possible to smooth out the behavior of the crowd on the stock exchange, to understand which forces, to which they distribute their positions.
An experienced trader will spend a little time looking at the chart for a BTC, ETH or other asset, and a beginner is at great risk for money. Exchange schedules are the most important tool of market analysis, as they present price information in a graphical, visual version, which is the easiest for a general understanding of the market situation than textual or digital information. They allow you to see the mass behavior of the crowd, as well as to assess the balance of power between sellers and buyers, which ultimately makes it possible to understand the potential profitability of transactions.
Understanding Bitcoin charts
Types of Bitcoin charts
There are three types of charts: a line chart, a histogram and a chart called “candlestick chart”
Line chart
This is the basic schedule that a trader has to deal with – it is simply a change in the parameter of a cryptocurrency over time. A chart can track various cryptocurrency parameters, for example, its price or market share. Using such a chart, one can judge the profitability of a coin on the horizon of a month, week, day, or even the last hour.
Candlestick chart
A candlestick chart, or candlestick chart, is also used to describe the price movements of securities, currencies or derivatives; usually, each candle is one day. Among cryptocurrency traders, such charts are the most popular. They are intended for advanced traders, but it is not difficult to understand them. Each “candle” on the chart shows the opening price, the lowest and highest price for a given period of time, as well as the closing price.
Where to find Bitcoin charts
It is a very useful and necessary tool for traders so most of the wallets and exchanges have some sort of charts in their interfaces, but there are also dedicated platforms solely for charts:
- CoinMarketCap
- CoinDesk
- Bitcoin.com
- CCN
- Coinbase
- TradingView
How to understand Bitcoin charts
Each chart has its own properties and after we found out how to find chart platforms, now it is time to learn how to read them.
Line charts
In the linear chart, everything is simple and intuitive, everything is as you see. The upper point of the vertical line here is the highest, and the lower – the lowest price for a certain period of time. The left bar shows the opening price, and the right bar – the close.
Candlestick charts
The size and color of the body of the candle, as well as the length of the shade or wick, are very important because they demonstrate current trends, as well as indicate reversals and future price movements. The candlestick color indicates whether the closing price was higher than the opening price (usually in this case green is used) or lower (usually red). Wicks or shadows, that is, the thin lines that come out of the body of the candle up or down, show the lowest and highest price for the selected period.
Holding and margin trading
Now that you can read charts, you can follow trends every day. Diagrams are very helpful in this because they allow us to estimate the dynamics and not just the current price value.
Recap
However, price analysis is only part of the task, because it is equally important to understand the causes of sudden highs and lows. So do not forget to follow the news that may affect the state of the cryptocurrency market – if something significant happens, no graphs will help to predict the subsequent price jump.