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Cryptocurrency 101

July 19, 2019 | Uncategorized | No Comments

Cryptocurrency is quite popular and taking the world by storm nowadays. Those who believe that it is just a fad are blown away by how the market keeps on growing. In essence, cryptocurrency is a form of digital or virtual currency. This currency only exists over the internet and using computer networks, blockchain technology and cryptography in monitoring its value and at the same time, ownership.

In 2009, a man named Satoshi Nakamoto has launched Bitcoin which was the very first blockchain-based virtual currency and it has remained as to be the most valuable and popular ever since. However as time goes by, there are now more competition to Bitcoin. In fact, trading cryptocurrency has attracted millions of people worldwide. Some are even applying to Zebra loans from New Zealand to fund this new opportunity.

Familiarize Yourself into Crypto First

However, before you jump into the bandwagon, it is important that you know what you are getting yourself into.

Underscoring the importance of cryptocurrency, there were two bills that were passed to back digital currency in the US. These bills are entitled Virtual Currency Consumer Protection Act of 2019 as well as U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2019. The legislation proposed from these acts are made to provide regulations to cryptocurrencies and protecting consumers towards bad aspects of the virtual currency. With the interests and attention given by the federal government, it only shows that there is a bright future ahead for crypto.

Are You a Risk-Taker?

For those investors who are not confident when it comes to volatility as well as risks, they steer clear from cryptocurrency investment. The same thing goes for those who cannot afford to lose their investment. One may have chosen the wrong asset and painfully watch their investment to disappear.

But according to Russell Korus, the cofounder and at the same time, CEO of EZ Exchange in Toronto, Canada, he said that those who are interested to dive in crypto must concentrate on blue chip cryptocurrency which is none other than Bitcoin. After all, this is the largest and oldest form of cryptocurrency. Besides, it has shown resilience to great number of things from:

  • Community infighting
  • Attempted intervention of the government and;
  • Technological threats

Crypto might help in Business Transactions

Money transfers are currently requiring third party portal for it to push through. It can be credit card, a bank, PayPal or any other intermediary. The proponents of crypto expect the industry to facilitate direct transfer between parties and thus, cuts out the presence of third party.

To a great number of people, cryptocurrencies are seen to be a risky investment. This is true especially among insiders in Silicon Valley and millennials. But what they are actually missing is, in the midst of hype and talks about these digital currencies, it was programmed to “do something”. Thus, it has wide range of use.

Because Sending Money is now more Simplified!

A very popular advantage associated to cryptocurrencies such as bitcoin is it capability to send and to receive payments at high speed and low cost. Now, if this money would go through traditional mediums, the fees will be significantly higher. Not to mention, there are going to be lots of processes it will go through before the receiver actually receives the money.

Just think of the inconvenience that it has. What more if that money is needed urgently?

For sure, you aren’t thinking that your assets and your bank account will be frozen anytime soon. But sorry to break this to you, this is a real-life situation and it has happened already to lots of people. All it needs is for a person be accused of financial misconduct. After that, it’s goodbye with your money and assets. When this happens, people have nowhere else to go but to accept the fact that they have nothing and fight for what they believe is right.

Use Crypto as a Form of Investment

With the onset of digital currencies fundraising, it helped anyone who has a connection to the internet to invest in early-stage startup techs. At the same time, it provides new startups with the funds and capital they need to continue their business. Basically, it is a win-win situation for everyone.

If the investment has pushed through, founders will be able to rake in profits, likewise with the investors.

Now, if you want to buy cryptocurrencies and use it for investment, or you are a budding entrepreneur who lacks of funds, you can take advantage of tradeline sales web site to acquire additional funding needed.

It’s Leveling the Field

Back then, getting access to these types of deals will only be available to seasoned and experienced capitalists. Thanks to the introduction of cryptocurrency, it has carved way in creating new opportunities to a wider spectrum of investors. Having said that, small entities can now compete with bigger and more established companies. Thus, it gives everyone an equal chance to earn.

Cryptocurrencies as medium of payments, investments or borrowings can only transpire by way of blockchain technology. It is important therefore to have a thorough understanding how one becomes a cryptocurrency owner in order to take part in transactions using digital currency as medium.

First off, bitcoin is only one of numerous cryptocurrencies used to transact business outside of the conventional financial institutions. Digital currencies other than bitcoin are collectively called altcoins, which is short for alternative coins. Some examples of popular altcoins are Litecoins, Ethereum, Ripple, ZCash, and Cardano; there are several more available as an alternative to bitcoin.

Secondly, cryptocurrency transactions require the use of a blockchain platform or application in order to connect to other cryptocurrency users, to third party digital currency brokers, to traders or digital currency-wallet providers.

Thirdly, there are two ways by which an individual can acquire a particular cryptocurrency. One is by buying a preferred type of digital money from a broker or from an e-wallet provider using actual cash. The other method is by earning a unit of cryptocurrency for solving every set of related cryptocurrency transactions recorded in a blockchain open ledger. Solving and linking encryptions used in the blockchain ledger is a method of confirming the validity of a transaction that made use of bitcoin or a type of altcoin as payment or exchange mode.

How Does the Blockchain Technology Record and Validate Bitcoin Transactions?

The reason why this cryptocurrency technology is called a block chain is because several digital currency transactions occurring via a blockchain platform will be linked. The purpose of which is to tell a story of how one bitcoin or altcoin user came to own his or her cryptocurrency, and of how he made use of that particular virtual money.

A block refers to the time-stamped cryptogram code used in recording each related transaction in the blockchain ledger. Every block contains the cryptogram code containing the public key generated by the blockchain platform and the private key supplied by the cryptocurrency sender or payer.

Difference Between a Blockchain Public Key and Private Key

A public key is an encryption that identifies the kind of transaction that the blockchain will record. Let us say BitUser A buys $50 worth of bitcoin from BitTrader B. The public key generated by the blockchain platform will refer to this transaction. In order to complete a block, BitTrader B as sender must provide the private key to validate his authorization for issuing the bitcoin.

A private key therefore validates a cryptocurrency user’s ownership of the digital money being transferred to another. An owner receives a private key every time he receives digital currency as part of a chain of transactions. If the private key is invalid or missing, the transaction will not go through since it remains unconfirmed or unvalidated.

In our example, bitcoin recipient BitUser A received a private key, which serves as his authority to use or transfer the digital money to another recipient. In the same way, the new recipient will also receive a private key that will allow him to transact his own virtual currency deal. Miners will then solve and link all blocks of cryptogram codes connected to the bitcoin purchased by BitUser A. Doing so provides full authentication that all virtual currency used in the series of transactions came from legitimate owners.

To make taking a loan easy, there are some things you need to know. First, if you are planning to start a business or invest on something you must determine the right type of loan for you by vertaile lainoja. Not only they offer loans that you can get in just few clicks, they can also do the task of comparing different types of loans and identifying the most suitable type for you. Moreover, the amount that you are capable to pay off can also be easily computed using their loan calculator.

In the present times, there is another way of borrowing money, and that is through bitcoin loan. Basically, it works like a regular loan where you will borrow money and pay it back with interest. There is an easy way to get  money through bitcoin loan and that is through the peer to peer lending platform.

To help you get through, listed below are the three important things to know before taking a loan. 

  • You must have some cryptoasset for securing a loan (BTC, LTC or ETH). You also need to be informed that you’ll be able to lend fiat money equivalent to 60% of your collateral market value. It means that depositing crypto worth $1000, you’ll get $600 loan at least (60% of $1000).
  • Youu can get your loan in EUR, USD, TUSDUSDC, GUSD, GBP and RUB.
  • To withdraw your money, choose any of the following payment methods: SEPA, SWIFTAdvCash.

You can get a loan by following the steps below: 

  1. Open an account by registering at your trusted site
  2. Your identification must be verified
  3. Deposit crypto as collateral
  4. Once you identify your lender, ask him/her for an appropriate application.
  5. Withdraw funds from the platform.

Since there are a lot of lending platforms out their and tons of lending site scams, it is important to research first on the platform and make necessary actions to confirm that it is legit. Here are some best Bitcoin lending sites

  1. BlockFi– this platform was developed in 2017 and has quickly risen to prominence in the Bitcoin loan industry because of its quality service.
  2. CoinLoan– this offers a peer-to-peer lending platform that enables long-term holders to quickly receive a high-LTV loan while providing those with excess fiat a healthy return.
  3. Nexo- this is younger compared to the previous platforms. However, it has already earned quite the reputation in its short time, owing to its great services and operating processes.

Some owners of small businesses are already experts when it comes to financial management. Some have previous experience when it comes to handling small businesses and they even have enough knowledge and deeper understanding of business accounting. 

If you belong to those who are planning to start a small business or you already have a business and you want to be able to handle your finances effectively, then you must keep on reading. Moreover, this is to those with little-to-no finance experience.

Important Terms to Know When it Comes to Business Accounting:

1. Gross Revenue- This can also be called total revenue which is the sum of payments you received from your customers in return for the company’s product or service prior to deducting other expenses.

2. Expenses- this quite common sense. Expenses refer to anything that keep your gross revenue from going to straight to your pocket such as rent, supplies, payroll, taxes, and other operational expenses.

3.Net Profit– This is sometimes referred to as the bottom line, net income or net earnings. This is what’s from all the expenses and profit. You will know that you are creating profit if the net profit is positive. If it s negative they you have to take action. I know someone who experience, this, hence they look for payday loans near me. 

4. Break-even Point-  There will come a time where small businesses will experience temporary loss especially during the first few months of starting a business. Hence, their expenses are greater than their profit. If your expenses are just equal to the net revenue, it is called break-even

Important Documents in Business Accounting 

1.Balance Sheet- this is where you can see a glimpse of your business’ financial status. You can find the assets, liabilities, and equity your company holds in the balance sheet. Basically this will make your tasks easier.

2. Income Statement- This is also referred to as the profit and loss statement and can be a summary of your business revenues and expenses all throughout the year. Moreover, income statement allows you to easily calculate how much you earned. It is crucial to maintain an accurate and consistent income statement because this will be used to determine the break even point for small and new businesses.

To someone whoa is just starting a business, he/she will find the guidelines and documents overwhelming especially preferred to handle manually. Fortunately, because of technology advancement, there are various open software available that will handle your bookkeeping.

As for a small business owner who is considering financing offers, the duration and amount of financing are two factors to be taken into account. To ensure that there’s better cash flow as well as turnaround on credit line, it’s preferable to opt for short term financing. What this mean is, the amount you pay back is already fixed for the said term.

Furthermore, this puts away your business from any risks if mandated to payback a portion of your profits.

Smart Loan Decisions

If you wish to minimize payables, then seeking for long term loans will be wise. However, this is going to compromise the funds you could withdraw and used as working capital since it takes longer to pay back the loan. This is why the “no commitment” and “free early payoff” offered in short term loans are more attractive among SMEs.

Moving over to your credibility with bank loans, you’d do fine given that you are paying on or before due date. On short term loans, it is likely to gain points by simply

  • Paying earlier than the expected due date
  • Paying more than the payment required or
  • Paying on time

These three factors can help big time especially when you seek additional funding before completing your first loan.

Think of short term loan as credit card.

You’ll be given a 10,000 dollars credit line and paying most of it for few months entitles you for an increase.

So let’s say for example that you want to use that money to trade on crypto signal, and you were that good allowing you to get more than half of your ROI in just a short span of time, you can use your profits to pay for your loan and get an increase. This increase will serve as backup whenever you need to add more to your account.

Should Always Be an Open Communication

Another thing to check is the responsiveness of the financing organization. With financing firms offer short term, you’ll get an actual person as point of contact than established banks and larger companies to which most probably, redirect you to their general customer service department.

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