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What is Ethereum? | The Ultimate Beginners’ Guide

With the second largest market cap in the cryptocurrency world, Ethereum has drawn a lot of attention from investors and crypto enthusiasts alike.

This relatively new cryptocurrency not only presents a significant change to the status quo, it also allows for the quick development and deployment of new applications. Ethereum essentially enables dozens of new and extremely innovative cryptocurrencies to exist.

While Ethereum’s utility is obvious to programmers and the tech world at large, many people who are less tech-savvy have trouble understanding it. We’ve designed this guide to appeal to both crowds and expose anyone from complete crypto beginners and intermediates to this potentially game-changing cryptocurrency.

Ethereum vs. Bitcoin

If you’re interested in Ethereum, chances are you have some sort of foundational knowledge of Bitcoin.

All cryptocurrencies inevitably get compared to Bitcoin, and it frankly makes understanding them much easier.

Bitcoin launched in 2009 as the world’s first cryptocurrency, with the single goal of creating a decentralized universal currency. This currency would not require any intermediary financial institutions, but would still ensure safe and valid transactions. This was made possible by a revolutionary technology called the blockchain.”

The blockchain is a digital ledger, continuously recording and verifying records. It’s used to track and verify Bitcoin transactions. Since the global network of communicating nodes maintains the blockchain, it’s pretty much incorruptible. As new blocks are added to the network, they are constantly validated.

Similar to Bitcoin, Ethereum is a distributed public blockchain network. While both Ethereum and Bitcoin are cryptocurrencies that can be traded among users, there are many substantial differences between the two.

Bitcoin, for example, utilizes blockchain to track ownership of the digital currency, making it an extremely effective peer to peer electronic cash system. Ethereum, on the other hand, focuses on running the programming code of an application. Application developers largely use it to pay for services and transaction fees on the Ethereum network.

Both Bitcoin and Ethereum are “decentralized,” meaning they have no central control or issuing authority. Respective miners run each network by validating transactions to earn either bitcoin (for Bitcoin) or ether (for Ethereum).

If you’re still having trouble making the distinction, the words of Dr. Gavin Wood—one of Ethereum’s Co-Founders—might help:

“Bitcoin is first and foremost a currency; this is one particular application of a blockchain. However, it is far from the only application. To take a past example of a similar situation, e-mail is one particular use of the internet, and for sure helped popularise it, but there are many others.”

-Dr. Gavin Wood, Ethereum Co-Founder

Ethereum is simply the application of blockchain for a completely different purpose.

What is Ethereum?

Simply put, Ethereum is a blockchain-based decentralized platform on which decentralized applications (Dapps) can be built.

  • Remember, blockchain is the structure the vast majority of cryptocurrencies run on. It’s a database with no central server that keeps track of every transaction and exchange.
  • We’ll jump into decentralized apps—referred to as dapps–in greater detail later, but just know they are applications that serve a certain purpose to a user. Fasten your seatbelts, some of these dapps are amazing.

Ethereum’s appeal is that it is built in a way that enables developers to create smart contracts. Smart contracts are scripts that automatically execute tasks when certain conditions are met. For example, a smart contract could technically say, “pay Jane $10 if she submits a 1000 word article on goats by September 15, 2018,” and it would pay Jane once the conditions are met.

These smart contracts are executed by the Turing-complete Ethereum Virtual Machine (EVM), run by an international public network of nodes.

The cryptocurrency of the Ethereum network is called ether. Ether serves two different functions:

  1. Compensate the mining full nodes that power its network. This keeps things running smoothly at an administrative level.
  2. Pay people under smart contract conditions. This is what motivates users to work on the Ethereum platform.

If you’re still a little confused, don’t worry. The underlying technology is complicated even at a surface level.By the end of this guide, you’ll have a better understanding of Ethereum than 99.999% of people out there… and that’s a pretty good start!

We’ll go over things such as how Ethereum functions, Ethereum’s history, and some of the exciting dapps running on the Ethereum platform.

Welcome to a Wild Ride: Ethereum

In 2011, a 17 year old Russian-Canadian boy named Vitalik Buterin learned about Bitcoin from his father.

In 2013, after visiting developers across the world who shared an enthusiasm for programming, Buterin published a white-paper proposing Ethereum.

In 2014, Buterin dropped out of the University of Waterloo after receiving the Thiel Fellowship of $100,000 to work on Ethereum full-time.

In 2015, the Ethereum system went live.

In 2017, Ethereum hit a cap rate of $36 billion dollars.

Whether you’re looking at this from an investment standpoint, tech perspective, or witness to history; Ethereum is extremely exciting.

Buterin’s goal was to bring the same decentralization from Bitcoin to more than just currency. This could be accomplished by building a fully-fledged Turing-complete programming language into the Ethereum blockchain.

The Ethereum white paper goes into detail for some of the potential use cases, all of which could be built through decentralized apps on the Ethereum network. The list goes on and on:

  • Token Systems
  • Financial Derivatives
  • Identity and Reputation Systems
  • File Storage
  • Banking
  • Centralized Autonomous Organizations
  • Insurance
  • Data Feeds
  • Cloud Computing
  • Prediction Markets

By building these apps on the Ethereum network, these dapps can utilize Ethereum’s blockchain instead of having to create their own.

The Ethereum Virtual Machine

Early blockchain applications like Bitcoin only allowed users a set of predefined operations. For example, Bitcoin was created exclusively to operate as a cryptocurrency.

Unlike these early blockchain projects, Ethereum allows users to create their own operations. The Ethereum Virtual Machine (EVM) makes this possible. As Ethereum’s runtime environment, the EVM executes smart contracts. Since every Ethereum node runs the EVM, applications built on it reap the benefits of being decentralized without having to build their own blockchain.

Smart Contracts

Smart contracts are strings of computer code capable of automatically executing when certain predetermined conditions are met.

Instead of requiring a single central authority to say “yay” or “nay,” these contracts are self-operated. This not only makes the entire process more effective, it also makes it more fair and objective.

For example, a simple smart contract use case would be:

  • Jim wants to bet Sarah 100 Ether (ETH) that the price of ETH will be above $1000 on August 30th, 2018.
  • They agree on a data feed to be used to determine the ETH price.
  • They each escrow 100 ETH to a smart contract, with the winner taking the full 200 ETH.
  • On August 30th, 2018 the data feed is queried and the contract immediately executes sending money to the winner.

Using the smart contract, there’s no need for Jim and Sarah to trust each other. They just have to trust the data feed.

Keep in mind that this is only a very simple example. Many smart contracts are extremely complex and can work wonders.

The takeaway: Smart contracts can automate a variety of tasks, without requiring intermediaries. All a smart contract needs is the arbitrary rules written into it.

Now, let’s move on to the Dapps.

Decentralized Apps (Dapps)

Most of us have a pretty good understanding of what an application (app) is. An application is formally defined as a program or piece of software designed and written to fulfill a particular purpose of the user. We use apps every day: Apps allow us to check our bank balance, scroll through a live feed of pictures, or even launch a Flappy Bird into oblivion.

Now take this definition and ~*~decentralize~*~ it. Dapps serve similar functions, but run on an entire network of nodes rather than a central source. The fact that they are decentralized gives dapps an enormous advantage over traditional apps.

You know when Instagram is down because the server is down? This doesn’t happen with dapps. How about when Zomato got hacked and exposed the information of 17 million people? This doesn’t happen either.

Moreover, Dapps are:

  • Open Source – Dapps allow users to view the app code on both the frontend and backend. No sketchy “allow us to use your location” nonsense unless otherwise stated.
  • Autonomous – Dapps automatically act by the rules encoded into them. No room for outside corruption.
  • Secure – Data and protocols are stored on the blockchain cryptographically. No hacks.
  • 100% Uptime – The blockchain is always running, meaning zero downtime for dapps. No crashes.
  • Easier to Implement – Developers wanting to take advantage of blockchain technology do not need to create a new blockchain. The framework is there, saving dapp creators a ton of time and effort spent creating a potentially subpar framework. In order to run on this decentralized network, dapps just pay transaction fees.

In many cases, front-end users can’t even distinguish dapps from regular apps. Dapps typically use HTML/JavaScript web applications to communicate with the blockchain, appearing the same to users as many applications you’re already using today.

Ethereum Dapps Use Cases

Fasten your seatbelts and get your Twitter-fingers ready, it’s finally time for the most exciting part of this guide.

Ethereum’s intersection with the real world is paved with innovation and disruption. There are already a huge number of projects, both live and in development, built on the Ethereum network. Here are just some of the most successful and promising of these dapps.

Golem: The Golem project aims to make a global supercomputer easily accessible to anyone. It’s essentially the first decentralized sharing economy of computing power. As a global market, users would be able to make money by “renting” out their idle computing power, or spend money to have access to a supercomputer. Hold up, have you ever used a supercomputer? Supercomputers cost between a million dollars and a good fraction of a billion dollars. The modern Tianhe-2 Supercomputer has the power of roughly 18,400 Playstation 4s. Golem’s goal is to make this sort of power easily accessible anywhere in the world at an infinitesimal cost.

Augur: Augur’s goal is to utilize a decentralized network to create a powerful forecasting tool using prediction markets. Augur would reward users for correctly predicting future events. While at a surface level it may just seem like a decentralized betting platform (which is still worth a lot), Augur could potentially provide provide powerful predictive data for virtually any industry. Prediction markets are more accurate at forecasting than individual experts, traditional opinion polling, and surveys.

Civic: Civic aims to protect user’s identities and provide blockchain-based, secure, low-cost, on-demand access to identity verification. This would not only prevent and provide users with assistance for identity fraud, but it would also remove the need for constant personal information and background verification checks. Think about how many times you’ve left your social security number with someone’s assistant and you can see the benefits of Civic.

OmiseGO: OmiseGO vision is to solve the problems and inefficiencies of financial institutions, processors, and gateways by enabling decentralized exchange on a public blockchain at a lower cost and high volume. This means anyone will be able to conduct financial transactions such as payments, payroll deposits, B2B commerce, supply-chain finance, asset management, and loyalty programs without having to rely on a single server… and without exorbitant fees! The system is built in a way that allows the best currency (whether fiat or decentralized) to win.

Storj: Storj’s aim is to make it possible for users to rent out their excess hard drive space in exchange for the crypto STORJ. Users could therefore also use Storj to rent additional hard drive space.

These are only a handful of different dapps all running on the Ethereum platform. What really stands out with dapps is how their founder are able to “raise” real capital by selling tokens. Whereas traditional apps have to seek outside investment or IPO, a dapp can simply “ICO” and raise the capital they need to build their company. While this removes friction from the financing processes, it has unfortunately also made it possible for many sub-par dapps to ICO and take advantage of eager speculators.

For more dapps, check out the State of the Dapps. You find some upcoming ICOs here.

Ethereum vs Bitcoin: Continued

Now that you have a decent understanding of what Ethereum is and how it functions, it’s useful to revisit how it compares to Bitcoin at a technical level.

While the two cryptocurrencies serve different purposes, Ethereum provides a number of benefits over Bitcoin:

  1. Shorter Block Times – On Ethereum, blocks are mined roughly every 15 seconds compared to Bitcoin’s 10-minutes rate. This shorter time allows the blockchain to more quickly start confirming transaction data, although it also means more orphaned blocks.
  2. More Sophisticated Fee Structure – Ethereum transaction fees are based off storage needs and network usage. Bitcoin transactions are limited by block size and compete with each other.
  3. More Sophisticated Mining – Bitcoin mining currently requires ASICs (Application-Specific Integrated Circuits), necessitating a large amount of capital investment to mine. Ethereum’s mining algorithm was designed with ASIC-resistance in mind, thus leveling the playing field and aiding in the decentralization of mining.

Ethereum arguably currently functions better than Bitcoin as a currency. With Ethereum, you can reliably send transactions faster, pay lower transaction fees, and mine at a more profitable rate (although it still has its downfalls for miners).

Read: Is Ethereum Mining Profitable?

However, Bitcoin does have a relatively more stable price—and therefore functions as a better value storage option—from a trading and value storage perspective. Ethereum is much younger but has covered a substantial amount of ground in recent years. Although Ethereum certainly shows promise as a currency, its true potential lies in features nonexistent in Bitcoin’s code.

The DAO: Trouble in Paradise

The most famous DAO was simply known as The DAO. The nearly identical name causes a lot of confusion for people and gives DAOs a bad reputation.

The DAO was a decentralized autonomous organization primarily functioning as its own investor-directed venture capital fund. It didn’t have the conventional management structure or board of directors, was not tied to any particular government, and instead ran on open source code. The DAO was set up to give funders the power to vote for which dapps deserved investment through DAO tokens.

Dapps had somewhat of an approval process:

  1. Get whitelisted by reputable figureheads in the Ethereum community
  2. Get voted on by those who held DAO tokens
  3. Get an approval of 20% in the vote in order to receive a share of DAO funds they required to get started.

The DAO is most famous for the largest crowdfunding campaign in history, raising over $150 million in ether from more than 11,000 investors. The DAO is also most infamous for getting hacked for $50 million. This hack inevitably caused a split in the Ethereum community, creating what we now know as Ethereum (ETH) and Ethereum Classic (ETC).

Ethereum Classic

The hack happened because of The DAO’s “Split Function.” Funders who wanted to exit The DAO could use its “Split Function,” which would give them back the ether they had invested. The only stipulation was that existing funders had to hold their ether for 28 days before they could withdraw them.

On June 17th 2016, an unknown person or group of people took advantage of a lapse in the Split Function’s security with a simple recursive function. This frustratingly easy hack allowed the hacker(s) to repeat their request to withdraw the same DAO tokens multiple times before the system registered it as $50 million.

The news of this hack created chaos in the Ethereum community. While this hack had nothing to do with the Ethereum platform and everything to do with The DAO platform, many members of the Ethereum community were invested in The DAO. The community as a whole had 28 days to come up with a solution, which ended up being to “fork”—stop the current blockchain entirely and create something new from scratch.

The new Ethereum (ETH) is the result of the fork, and is essentially the blockchain before the hack. The old Ethereum (Ethereum Classic – ETC) is still running the original blockchain with the hack included.

The vast majority of the Ethereum community including the Ethereum founders pivoted along with ETH, with a small minority staying loyal to the original blockchain.

Future Updates to Ethereum

The future for Ethereum is bright, but it is not without its potential uncertainty.

A notable event on the horizon is the Metropolis hard fork that is set to occur in late September. This hard fork indicates some major upgrades for the platform including:

  1. Increased anonymity with new zero-knowledge proofs, or “zk-SNARKs.” This means users will be able to conduct transactions at much more secure levels of anonymity than ever before.
  2. Smart contracts and programming will be much easier to work with. Gas is also going to be adjusted for bill setting.
  3. Masking will increase security on the network. Users will be able to determine the address for which they have a private key, and this will protect them from quantum computer hacking.
  4. A “difficulty bomb” will be included in the upgraded, meaning mining will become much more difficult. This is a significant step as Ethereum transitions from proof-of-work (PoW) to proof-of-sake (PoS).

We won’t know how this hard fork will affect the price of Ethereum as markets could adjust in a variety of ways. If the upgrades attract more users, the price could rise. However, if mining becomes more difficult and slows, the price could fall.

The next upgrade after Metropolis is referred to as Serenity, which should increase stability and encourage more investment.

Final Thoughts

While there is a lot of speculative interest around Ethereum, it’s important to note that the Ethereum and dapp communities are very much focused on building a tangible future.

Ethereum is a phenomenal application of the blockchain and has made it possible for hundreds of projects to exist.

“Blockchain solves the problem of manipulation. When I speak about it in the West, people say they trust Google, Facebook, or their banks. But the rest of the world doesn’t trust organizations and corporations that much — I mean Africa, India, the Eastern Europe, or Russia. It’s not about the places where people are really rich. Blockchain’s opportunities are the highest in the countries that haven’t reached that level yet.”

-Vitalik Buterin, Ethereum Founder

The primary goal of Ethereum’s founders isn’t to create a cryptocurrency that makes speculators a ton of money; it’s to change the world. The Ethereum community attracts ideological supporters in the same way Bitcoin and other cryptocurrencies do, but it’s use cases give it life far beyond that of other coins.

Want to Invest in Ethereum?

The easiest way to invest in Ethereum is by using a cryptocurrency exchange. We’ve compiled a list of the best exchanges where you can buy Ethereum. On this page you can find key details of these exchanges, as well as links to their individual reviews and user guides.

If you’re new to the world of cryptocurrency, Coinbase offers one of the simplest ways to buy, sell, and store Ethereum.

For those interested in regular trading, the following exchanges may be more suited to your needs:

Gemini
Kraken
GDAX
Bittrex
CEX.IO

How to Buy Ethereum

 

This article was originally published at CoinCentral.com


How to Lose It All Trading Telegram Signals

Entering the Crypto Trading World

Prior to August 2017, I followed Bitcoin news with great interest. The world of cryptocurrencies fascinated me, as I found it incredibly appealing and ambitious. I was amazed by the opportunities they offered, and primarily by the idea to make anonymous transactions that did not involve or inform any third party. Like anyone else, I became fascinated by the promised ideas. Something soon happened that pushed me to try my luck in crypto trading.

Back in August of 2017, the Bitcoin rate increased dramatically, and the coin crossed the $5,000 mark. This meant that many of people in the industry believed in the coin and had put a stake on it. The more information I read, the more I felt the urge to become involved in crypto trading.

I had next to no experience in crypto trading or any other kind of financial stocks, and my knowledge of Bitcoin was both superficial and theoretical. Even still, I realized that the playing field was level for all, as even the most experienced traders on the traditional market were as uneducated about Bitcoin as the beginners. The new digital currency was an alien in the world of finances, and no one was certain how to treat it, or how it would treat them.

In October 2017, I began trading crypto. This was a new experience for me, and I was very excited. Many people discussed crypto trading and shared their opinions about it willingly with friends and coworkers, but no one could tell me exactly how things worked. I understood that I could not waste too much time on a thorough analysis of the market, so I found a faster, more straightforward way; I researched all the most popular relevant information that I could find online. In this way, I analyzed the cryptocurrency business much more quickly.

For starters, I purchased several different coins. I had OmiseGO (OMG), Monero, and Dash in my portfolio. As time went by, my portfolio volume increased in response to the growth of the whole market. I was not satisfied with these results, even though my portfolio doubled over the next several months. I decided to dig deeper to find how to earn more on crypto trading. There was one question I wish I asked myself then - can you lose money on Bitcoin?

Crypto Consultants That Helped Me (Lose It All)

One of my colleagues was also interested in trading crypto and told me about his successful experience in trading crypto according to crypto signal on Telegram. I wasn’t quite sure if the same thing would work for me, but I decided to give it a try. I searched for the top Telegram crypto groups and came across an article on one website that I found first in the Google search results. There was an audit of five Telegram crypto channels. I searched for more channels on Telegram myself, but the amount was overwhelming, most of them looked the same, and I did not know how to distinguish the trustworthy ones from the scammers. I decided to rely on the inspiring information provided by the smartoptions.io website.

Excited about pursuing the outstanding results promised, I subscribed for a paid membership to two channels, PALM BEACH VIP and Cryptoland Elite. Following the channels’ advice, I distributed my portfolio between the coins, religiously following the signals. PALM BEACH VIP sent me about five signals daily, mainly short and long-term ones. It was only later that I realized that I had invested in a lot of ShitCoins and fakes. As well, I realized too late that the coins had already reached the first or second target by the time the channel administrators published the signals. As for Cryptoland Elite, I received three to four mid-term signals every three days.

In a short time, some of the coins that I invested in reached their targets, while the rest of them subsided. There were also coins that reached the target the moment the signals came. By the middle of January, I was shocked to realize that all the coins had reached the stop-loss order. Still, I continued to make purchases according to the signals that kept coming. Finally, I understood that all of my purchases had reached stop-loss order within the next two to three days after the purchases.

Can you lose money?

Unfortunately, you can, and I will tell you how based on my bitter experience. As I mentioned above, all of my purchases reached stop-loss order within the next two to three days after the purchases. Stop-loss usually means -20% of the purchase. By the time I realized that something was not right, BAT, GNO, ADA, XEM, - all the coins were falling along with the content of my portfolio, both in Bitcoins and dollars. As a result, I lost about 75% in dollars, and I also lost 50% in Bitcoin. It is far easier to lose money trading Bitcoin and crypto to scammers than to earn more and increase your portfolio.

At the time of my most significant losses, the administrators continued to post the positive results their signals brought. I realized that they never posted any of the bad news. Their happy statistics were based on no more than 10-15% of the total market. The rest of the coins brought only losses, but the administrators did not ever say a word about it to their subscribers. Whenever there was anyone unhappy or angry, they would get banned and deleted from the channel. As a result, the administrators were always safe from any harm to their reputation and could attract more and more new users. People who had lost money in cryptocurrency could not warn any other users about scammer-administrators and had no way to report them since the channels had no websites. Some left angry messages at Bitcointalk, but this website would be hard for any beginner to figure out.

One more suspicious thing that I noticed after I lost my investments was that the channels posted a lot of cross-marketing information. This was a perfect way for the administrators to transfer unhappy users to “new” channels and continue earning on subscriptions. I later learned that the channels belonged to the same person. I wrote another article that I devoted to this issue where I explain how I managed to expose the scammers.

I had already lost money in cryptocurrency, which was very stressful for me. However, I hated the fact that other people were giving their money to the scammers and I could not do anything to warn them about it. All of the users paid either for a monthly subscription or a lifetime one. The paid crypto signals group had about five hundred subscribers, and each one of them spent about 0.03 BTC on a monthly subscription or 0.05 BTC on a lifetime one.

Belief in Crypto Trading Returns

Having lost all my money in Bitcoin, I could not afford to waste any more of my budget. I turned to analysis and developed my criteria for choosing successful, trustworthy traders. I devoted a separate article to this topic. Based on my criteria, I decided to keep an eye on the following channels:
Asian Wh…
CryptoCh…
Indian Wh..

There was one channel in particular, called Asian..., that stood out. They had an original strategy and provided only one signal in five days, which was quite interesting. Moreover, they remained silent during the times of significant market fluctuation. I followed this channel for some time, and I realized that its users were actually making money. I took one more leap of faith and purchased a lifetime subscription, along with my colleagues, for 0.12 BTC. I hoped to get back at least a part of what I lost.

Having signed up for the channel, my colleagues and I received access to the previous signals and decided to draw up the stats for them. The results were shocking: 27 coins out of 42 (64%) showed positive dynamics two to three days after the signals, and the total Bitcoin capital reached 10% over this period.

I decided to write this article and share my experience because I understood how many people would quit trying trading crypto once they fell among thieves. I hope this article will help beginner traders keep their portfolio safe from scammers and grow it with the help of experienced traders. I had to lose money to make money in crypto, but that was only because I could not find an article like this one at that time. When you start trading, keep an eye on your portfolio at all times and do not blindly follow the advice of traders simply because they seem trustworthy and boast of breathtaking results.

Final Thoughts

This article does not cover all the points of crypto trading a beginner needs to know, but it provides valuable information on how I lost money in crypto. Learn from my mistakes and avoid the scams. My losses discouraged me at first, but then they motivated me to share my experience with you. A bit later, I decided to launch a platform to show the real results of signals as distributed by traders - Safetrading. Visit it to see the stats and audits for the traders and leave your feedback about any of them. Let’s stop the scam together and keep our investments safe!

 

This article was written and submitted by Andreas Schmidt.


Digital Mints: How to Create Your Own Cryptocurrency

Creating Your Own Cryptocurrency

The first cryptocurrency emerged when Satoshi Nakamoto conceived Bitcoin in 2008. At the time, the world economy was approaching turmoil with the coming of the Great Recession. Economic crises typically result in centralized banks and governments buying themselves out of trouble by printing more money and flooding it into the economy. By contrast, Bitcoin created a financial system of limited supply with new coin mintage designated at strict ten minute intervals. This system ensures that a centralized authority never alters Bitcoin’s supply against its mathematically-based parameters to debase the currency through mass-inflation.

With its first iteration in Bitcoin, blockchain technology empowers all individuals to create their own cryptocurrency. So how would you go about doing this?

Roll Your Own Cryptocurrency

Cryptocurrency Rube Goldberg

An engineer filled with enthusiasm might want to write all the code from scratch. Inspired with innovative concepts to solve existing, complex problems, he might want to pave his own path, proposing new solutions. This approach looms as a daunting challenge. It is not for the faint of heart.  And it is not to be accomplished without powerful resources and time-consuming work.

I’ll Have What He’s Having

Alternatively, open source software provides a popular mechanism for programmers to publish their software and share their code. Projects maintained as open source release their source code to the public on repositories like GitHub. These projects permit anyone to use their software within any specified licensing agreement.

Bitcoin, for example, is an open source software that you can find on GitHub. Anyone can view the code, download it, modify it, and incorporate it into their own project. Consequently, anyone can take the Bitcoin code and use it as the basis for their own cryptocurrency project.

Implement a few modifications to the code and you now have your own new cryptocurrency. Any existing open source cryptocurrency project lends itself to this process.

Charlie Lee created Litecoin this way. He took the Bitcoin code, made minor modification to components like enlarging the block size, then released it as a new and separate project. Litecoin aspired to be a faster, cheaper version of Bitcoin that would facilitate payments and function as a currency to complement Bitcoin’s role as a store or value.

Source code forks like Litecoin distinguish themselves from hard forks by establishing a new code base and running on a new set of network nodes. A hard fork is simply an upgrade of the original project; it updates the code base of its parent coin and uses the same network nodes as the original blockchain it forks from.

Litecoin also has its own GitHub.

GitHub Bitcoin Code Respository

GitHub Bitcoin Code Respository

Standing On the Shoulders of Giants: Launching a Token

The Ethereum network enables users to easily create their own cryptocurrency tokens without coding the entire system from scratch and without borrowing from the code of other coins. Ethereum’s ERC-20 standard defines a list of the functions programmers need to follow to create a new token that will operate on the Ethereum blockchain. ERC stands for Ethereum Request for Comment, while the number is an index to reference the proposal.

To implement the ERC-20 token standard to create your cryptocurrency, you would code all the elements required. These elements include a name for the currency and its symbol (e.g., the ticker for the currency, like BTC for Bitcoin and ETH for Ether). You would build code to determine the total supply of coins for your currency, and then you would program a function to return the current balance of a given account. Finally, you would also program functions to transfer coins from one account to another, as well as a variety of other necessary coding functions.

The benefits of this approach are that you do not have to implement your own blockchain. Your token will store on existing wallets; you will not have to create a new wallet or add a new feature to an existing wallet. From the word go, it will also operate on a viable network of active nodes.

The Ethereum Organization provides a step-by-step guide on how to do this from the beginning through the end stage of deployment.

The Waves platform makes launching your own token even easier. For Waves, you do not need to know how to program, and a new currency can be set up in a minute or so.

An Ethereum ERC-20 token can represent numerous tokenized assets (investment contracts, an IOU, a game token, etc.), but Waves focuses on creating tokens for trading money on an exchange. Tokens created on Waves are tied to a fiat currency, and they are then traded essentially as a stand-in for that currency. For example, a new Wave token called MyLovelyNewCoin might be tied to the U.S. dollar. Each MyLovelyTokenCoin represents one dollar. This reduces costs for the transfer and speeds-up the transaction. Alternatively, Waves can also use established cryptocurrencies such as Bitcoin to serve as the base behind a Waves token.

Down to the Bottom Dollar

Cryptocurrency Simpsons Coin

Andy Warhol famously said that, in the future, everyone would be famous for fifteen minutes. Traditionally, only governments and powerful organizations have issued currency. But in this day and age, technology empowers everyone with the ability to create his/her own private currency.  You can create your own economy, even if lasts for less than fifteen minutes.

Regardless of the process used, we’ll likely see individuals continue to add to the growing list of more than 1,500 cryptocurrencies currently in circulation. People may even do this if for no other reason than to stamp a coin with their own identity.

 

This article by Wilton Thornburg was originally published at CoinCentral.com

 


A Beginners Guide to Bitcoin and the Blockchain

How is Bitcoin related to Blockchain Technology?

Bitcoin is a digital currency or, a cryptocurrency, the idea behind it was first published as open source by an alias Satoshi Nakamoto in 2009. The transactions on the Bitcoin network are anonymous unlike current payment methods.

Transactions made with cryptocurrency or bitcoin are stored in the blockchain network which is a digital decentralized network, once the transaction is made and entered into the blockchain it can neither be removed nor altered, an added feature of the blockchain technology, by which we can say that all the transactions are safe and there is no possibility of double spending.

The time required to add an extra block in the blockchain is taken as block time and the block time of bitcoin is 10 minutes and is 20 seconds for Ethereum which is used as an alternative or "altcoin" to bitcoin.

Bitcoin and altcoins hype is being increased as they are being widely accepted in many fields as payments, shopping, online trading, online bitcoin gambling and etc.

To have more detailed information on Bitcoin and Blockchain technology take a look at the below given infographic.

 

 

This article and infographic was originally published at Bitcoinfy.net.


Major Players header image

EP 16: Tether is audited, the Hiltons list home for Bitcoin, and more!

Tether undergoes voluntary audit, the Hiltons list real estate property for $38 million in cryptocurrency. The Japanese government is requring exchanges to utilize KYC, Bithumb is hacked for over $30 million and more on this weeks episode of Our Two Satoshis.

BitCab, Uber 2.0?: https://cryptofizz.com/bitcab-uber-2-0/
Download Brave Browser: https://brave.com/cry208

Podcast Locations

CryptoFizz: https://cryptofizz.com/category/podcasts/
Spotify: https://open.spotify.com/show/6ualRmhV4M4b5Eh5RdpzAG
Podbean: http://cryptofizz.podbean.com/
Itunes: https://itunes.apple.com/us/podcast/our-two-satoshis/id1348383350
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Cryptography header image

Cryptography: A Brief History from Symmetry to Bitcoin

Introduction to Cryptography

“There’s nothing you can know that isn’t known.
Nothing you can see that isn’t shown.
All you need is…PUBLIC KEY CRYPTOGRAPHY!!!”

– with apologies to Lennon-McCartney

 


16th-century French cipher machine in the shape of a book with the arms of Henry II.

Without public key cryptography, cryptocurrency fails. Public key cryptography proves ownership and enforces privacy. It arrived relatively recently, though, appearing on the scene in the mid-1970’s at the same time as the personal computer revolution.

The art and science of cryptography encode (i.e., encrypt) messages so that no one can read them except the intended audience. Only the proper recipient decodes (i.e., decrypts) the message, maintaining privacy between communicators.

A key is used to encrypt and decrypt messages. In asymmetric cryptography (another name for public key cryptography), the key to encrypt a message is different from the key to decrypt the message.

In symmetric encryption, the key to decrypt a message is the same as the key used to encrypt it. This strategy creates a key distribution problem: the sender not only has to send the message but also find a secure way to send the key as well. When a villain intercepts the key and the message both, privacy disintegrates.

Whitfield-Diffie Key Distribution Solution

Linguistics, language, and puzzle skills ruled cryptography through most of history, but from the mid-twentieth century onward, math has been predominant.

In the 1970’s at Stanford University, Whitfield Diffie, Martin Hellman, and Ralph Merkle found a mathematical solution to the key distribution problem. In their solution, they used modular arithmetic and one-way functions. (Among other accomplishments, Ralph Merkle also contributed greatly to cryptocurrency as the inventor of Merkle trees.)

Modular arithmetic deals with remainders and incorporates a set of numbers that wrap around to the beginning after a certain point. That is, 7 mod 3 equals 1 because 1 is what remains after dividing 3 into 7. A 12-hour clock provides the most common example of the wrap-around nature of modular arithmetic. If it’s 8:00 a.m. now, 6 hours from now will not be 14:00 o’clock but 2:00 p.m. The main point to remember is that modular arithmetic behaves non-intuitively and yields unexpected results.

In mathematics, one-way functions execute easily but strongly resist reverse engineering. Think of a bowl of soup served in a restaurant. The cook easily followed the recipe to create it, perhaps even improvising some ingredients at hand. You may well be able to detect this flavor and the spices, but without the recipe and exact ingredients the chef used, you’ll have a difficult time duplicating that bowl of soup.

In the Whitfield-Diffie algorithm, correspondents share some public information for the key but keep private information that prevents an eavesdropper from reproducing that key. The team presented their solution publicly in June 1976 at the National Computer Conference.

Enter Asymmetric Cryptography

Whitfield-Diffie solves the key distribution problem but still uses symmetric encryption.

Upon learning of the Whitfield-Diffie solution, Ron Rivest, Adi Shamir, and Leonard Adelman at the MIT Laboratory for Computer Science began building on those mathematical concepts to discover a solution for asymmetric encryption. In April 1977, they succeeded. This became known as RSA after the names of the creators.

In asymmetric encryption, you publish a public key that everyone knows. People use this to encrypt messages that only you can decrypt because you know the private key. Simply put, a public key is just a number created by multiplying two numbers of the private key. If the numbers used are sufficiently large, discovering those two numbers is computationally intensive and time-consuming.

Encryption for the Rest of Us

 

The patent application for an electric code machine, 1923.

Using RSA encryption challenged the resources of the computers in those days. Encryption belonged only to the powerful and wealthy — the military, governments, large corporations, etc. Paul Zimmerman envisioned encryption available to anyone with a personal computer. He implemented Pretty Good Privacy (PGP) and released it to the public for free in June 1991.

Zimmerman overcame the resource intensive computational slowness of asymmetric encryption by implementing a hybrid algorithm. The message itself used a symmetric key, and asymmetric cryptography encrypted the key to safely send it with the message.

Hello, Hal Finney


Secret decoder ring

The first employee Phil Zimmerman hired at PGP was Hal Finney. Hal Finney would become the first person to show any interest when an unknown person calling himself Satoshi Nakamoto arrived on the scene in 2008 proposing something he called Bitcoin.

Multiple attempts to create private digital money protected by asymmetric encryption failed throughout the 1990’s. In Amsterdam, David Chaum created DigiCash but required all transactions to be validated by a centralized company. DigiCash failed when Chaum’s company went bankrupt in 1998. British researcher Adam Back created HashCash in 1997 utilizing a Proof of Work method to create new coins. HashCash failed because a coin could only be used once. Users needed to create new coins every time they wanted to purchase something.

Hal Finney solved the HashCash problem by making the first reusable proof of work system (RPOW). He made his attempt at a digital money project with something he called CRASH (for Crypto cASH). (Lesson learned: call a computer program CRASH and expect it to fail.)

Hello, Bitcoin

Hal Finney became the first person after Satoshi to run a Bitcoin node and was the first recipient of Bitcoin from the first transaction on the network.

Hal encouraged Satoshi with the wisdom of a seasoned pro who has not grown jaded with cynicism: “Imagine that Bitcoin is successful and becomes the dominant payment system in use throughout the world. Then the total value of the currency should be equal to the total value of all the wealth in the world…Even if the odds of Bitcoin succeeding to this degree are slim, are they really 100 million to one against? Something to think about.”

Later on, Hal Finney contracted the fatal disease of ALS and posted some parting words to the community on March 19, 2013:

“After a few days, bitcoin was running pretty stably, so I left it running. Those were the days when difficulty was 1, and you could find blocks with a CPU, not even a GPU. I mined several blocks over the next days. But I turned it off because it made my computer run hot, and the fan noise bothered me…The next I heard of Bitcoin was late 2010, when I was surprised to find that it was not only still going, bitcoins actually had monetary value. I dusted off my old wallet, and was relieved to discover that my bitcoins were still there. As the price climbed up to real money, I transferred the coins into an offline wallet, where hopefully they’ll be worth something to my heirs.”

Final Thoughts and Further Reading

The history of cryptography from Whitfield-Diffie to Bitcoin and beyond continues to progress. Math provides the foundation. Modern math unlocks possibilities unheard of before the middle of the twentieth century. Mathematical research continues, and when quantum computing becomes common, new mathematical possibilities will emerge.

Beyond math, decentralization drives the history of modern cryptography. Everyone deserves privacy. When Rivest, Shamir, and Adelman created public key cryptography, only powerful and centralized organizations benefitted immediately. Phil Zimmerman’s Pretty Good Privacy (PGP) expanded the market to include anyone wanting to use cryptography on a personal computer. With Bitcoin, anyone who uses the cryptocurrency gets the privacy of public key cryptography as an integral component of the system.

Further Reading

Many sources provide further in-depth information on the history of cryptography and its emergence in cryptocurrency:

A popular book on the history of cryptography is Simon Singh’s The Code Book: The Science of Secrecy from Ancient Egypt to Quantum Cryptography.

The early chapters of Nathaniel Popper’s Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money cover the early history of cryptocurrency.

Archives, articles, and a wealth of primary material can be found here.

 

This article by Wilton Thornburg was originally published at CoinCentral.com

 


dApp Development Ideas for Businesses That Want to Benefit From Blockchain Tech

When the average person first hears about blockchain technology, they’re usually drawn to the monetary value of cryptocurrencies like Bitcoin. But a bit more research will prove that this is just one of many aspects that blockchain is offering to businesses. For instance, Ethereum provides a platform for the development of decentralized applications (dApps). Using “smart contracts”, which is a protocol that digitally facilitates an agreement between two parties, a blockchain developer can create an application with impeccable security and no need for a middleman.

Many businesses are starting to research how dApps could be integrated into their own products and services. There’s an ever-increasing number of ideas being generated by companies that want to get into dApp development. From government systems to mobile games, social media to messaging services, the potential of dApps is essentially unlimited. There are a number of ideas for businesses and developers that want to utilize blockchain technology to create a decentralized product or service. Here are some of the most prominent examples of how businesses are currently leveraging the power of blockchain and dApps.

Tapping the Potential of E-Commerce

Taking advantage of the secure and decentralized nature of blockchain tech, many businesses are looking to use dApps to develop marketplaces for goods and services. Implementing a decentralized peer-to-peer network into e-commerce grants more protection and freedom to the user, eliminating intermediaries (such as PayPal) and greatly reducing to possibility of having their data compromised.

An increasingly popular network for the development of decentralized marketplaces is District0x. The framework of this platform has enabled the creation of numerous services and e-commerce services, from job boards like Ethlance to the Meme Factory, a unique “district” that allows users to mint their own tokenized memes and offer them for sale immediately.

 

Blockchain-Based Messaging and Social Media Services

Decentralized applications that focus on encrypted messaging and social media are also generating a ton of hype in the blockchain space. As controversy surrounds platforms like Facebook and Twitter, the desire for a truly decentralized and free social media service has never been higher. An open-source social media platform would prevent any bias or censorship from manipulating the thoughts of users.

On the other hand, messaging dApps like Status.im are aiming to provide users with a secure platform to send and receive encrypted messages, as well as Ether payments and smart contracts.

Develop Your Business Through Crowdfunding on the Blockchain

A great idea for startups and businesses that are seeking to increase capital is to use decentralized applications as a crowdfunding tool.

One example is WeiFund, a crowdfunding platform that is utilizing the decentralized internet (also known as Web 3.0) to improve upon the flaws that plague popular services Kickstarter and Indiegogo. With the use of smart contracts, donations are registered as complex agreements, which effectively expands fundraising possibilities for companies. Instead of using Fiat money, this Ethereum-based service uses Ether tokens to donate to different projects.

Creating Valuable Assets with Games and Collectables

Another increasingly popular idea for dApp development is creating a gaming or gambling platform. For instance, the Ethereum platform can be implemented into games that have a player-run economy, or even to create gambling services that operate without lengthy and pricey transaction fees.

There are also ways to generate value with digital collectables. One of the most trendy decentralized applications on the gaming market is CryptoKitties, which allows players to breed their own virtual cats, and then buy, sell, and trade with others. This simple dApp idea has helped raised an immense amount of money for charities, and one of these cute CryptoKitties was recently sold for a whopping $140,000!

Conclusion

As you can now see, there’s a vast array of dApp development ideas being tossed around the blockchain space. Ethereum supplies blockchain developers with a platform that can be used to create decentralized applications for nearly any type of business or service. With blockchain technology spreading in both popularity and potential, more and more ideas will continue to hit the market and revolutionize industries.


Shares and Cryptocurrencies header image

The Difference Between Shares and Cryptocurrencies

Many investors that want to enter the cryptocurrency market have never traded any form of a financial instrument before. Most of them, however, have some form of knowledge of the stock market. Using lessons learned from the stock market and applying them on the cryptocurrency market is not necessarily a smart move though.

This blog post will outline a few differences and similarities between shares and cryptocurrencies and their respective trading environments, and hopefully, give you an overview over what to think about when comparing the two.

Value

First of all, an inescapable similarity between shares and cryptocurrencies is that the value is what another person is prepared to purchase the share/crypto for. If the stock or crypto price is USD 10, and a seller suddenly wants to sell for USD 100, then the value is USD 100 as soon as such seller finds a buyer. So, in a sense, the only thing that really matters is what other buyers or sellers in the market are willing to buy/sell for. Unlike for cryptocurrencies, however, there are several different ways to value shares. The most commonly used valuation methods are the following.


Margot Robbie is unfortunately not here to explain the following valuation methods for you. You just have to keep reading.

P/E Ratio

You arrive at the P/E Ratio by solving the following division: Market Value per Shares / Earnings per Share. By performing that division, you will arrive at a PE-number. If the PE-number is 20, that means that an investor is willing to pay 20 times the earnings per share to acquire one share. In order to know whether a company’s PE-number indicates that you should buy or sell the share, you must also know the PE-number for comparable companies in the same industry.

Net Asset Value per Share

Net Asset Value or NAV is essentially the accounting value of a firm, calculated by adding up its assets and then subtracting liabilities and intangible assets such as goodwill or brand value. Effectively, it is what shareholders would own if the company was wound up and its creditors repaid. If a company’s share price is less than its Net Asset Value per Share, it could be an interesting acquisition as you are effectively getting the assets for less than their accounting value.

Discounted Cash Flow

The DCF-valuation model is a bit more complex. What you do when assessing the share price with the DCF-model is to – based on profit forecasts etc. – total the expected returns at a time in the future, and then discount them back to a per-share value in today’s money that can be compared to the share price. If the discounted value is lower than today’s share price, then the share is attractively priced.

None of the above valuation models work on cryptocurrencies. The reason being that all of the above valuation models are based on the financial statements and forecasts of the Company and that companies issuing cryptocurrencies are not required to publish any such statements or forecasts. Accordingly, we simply do not have the data we need for doing the relevant valuations when it comes to investing in virtual currency and even if we had – such valuations would be useless seeing that your possession of such a currency gives you no right to the company’s assets. This, that no one really knows the “true” value of any cryptocurrency, is an inherent risk in investing in cryptocurrencies.

Ownership and Voting Rights

A big difference between shares and cryptocurrencies on a conceptual level is that cryptos (as mentioned briefly above) give you no ownership interests or voting rights in the underlying entity. If you own shares representing 1% of the share capital in a company, you also own 1% of the company. In the event of bankruptcy, you are entitled to receive 1% of the company’s remaining assets (after certain prioritized debts have been paid). You are also entitled to vote for your shares at such company’s general meetings. When you own 1% of the outstanding coins that a company has issued, you own 0% of the company and you are not entitled to vote at such company’s general meetings. It can be argued, however, that the no-ownership and no-voting rights aspect with cryptocurrencies is irrelevant, seeing that 99% of the shareholders on Nasdaq also only own shares for potential ROI and don’t really care about the actual ownership or voting rights.

When owning cryptocurrencies, you will not be summoned to general meetings where things can (but rarely does) “heat up”.

Dividends

An additional difference between shares and cryptocurrencies is the access to dividends. Successful companies often give its shareholders a yearly dividend amounting to a few percentage points of the share price each year. The size of the dividend is proposed by the board of directors of the company and resolved upon by the company’s general meeting of shareholders. The dividend feature doesn’t (with a few voluntary exceptions, e.g. the token issued by the KuCoin platform) exist in the cryptocurrency world. To be fair here, it should be noted that some cryptocurrencies split into separate cryptocurrencies. We call this a Fork. This can in some aspects be viewed as dividends.

Insider trading

Another huge difference between shares and cryptocurrencies is that shares are heavily regulated. There are numerous rules and regulations regarding what companies in the stock market must and must not do and what the investors in the stock market must not do.

For instance, the rules on insider trading prohibit people in the market from trading based on price-sensitive information (being information that has the potential of influencing a particular company’s share price). Accordingly, as an investor, you cannot take advantage of other investors not having the price-sensitive information you have. This is however fully possible in the cryptomarket. This can be further illustrated by an example.

EXAMPLE: Robert works at Tech Company LLC. Tech Company LLC have issued shares traded on a stock exchange, and tokens traded on several cryptocurrency exchanges. Robert happens to know that the company has developed a superefficient and market-changing technical solution that the company will announce to the public on Wednesday. If Robert purchases shares on Tuesday, he might (if caught) be sentenced for insider trading and can possibly face some time in jail. However, if Robert purchases tokens on Tuesday, he will not be liable for anything and can enjoy any gains made when the news is published on Wednesday.


“Robert” after buying tokens on Tuesday.

Financial statements

Another important part of regulation is the rules on periodic distribution of financial statements. As mentioned above when discussing the valuation models, companies with shares traded on a stock exchange are required to release yearly and quarterly financial statements, showing how the company’s business has developed during such period and is expected to develop going forward. If the company has reason to believe that the expectations are flawed, the company must issue a public statement revising such expectations. Companies with tokens traded on a crypto exchange are under no obligation at all to provide any information as to the company’s financial statements or expectations.

Needless to say, the absence of regulation and obligations to present financial statements is an inherent risk in investing in cryptocurrencies and a difficulty when deciding which digital currency to invest in.

Trading hours

The stock markets close. The exchanges where you can trade financial instruments are not open during the weekend and normally close in the afternoon, around 5 p.m. (the exact time dependent upon in which country the relevant exchange is based). If you want to be on top of your holdings and never miss a beat, you can comfortably sit back in your sofa when the stock markets close and look back on a (hopefully) successful day. This is not possible in the crypto world. The cryptocurrency exchanges are open 24/7 for the whole year (including Christmas). So, if you can’t relax until the markets are closed, trading cryptocurrency for profit is nothing for you.


In the world of crypto, it’s always business time.

Trading Fees

Another difference between shares and cryptocurrencies is the fees for trading. In the crypto world the main fees to be concerned about are the “maker/taker fees” and the withdrawal fees, whereas in the share world you first and foremost have the brokerage fees.

The maker and taker fees that are the common versions of trading fees. To summarize, a trade gets the taker fee if the trade order is matched immediately against an order already on the order book. This order removes liquidity from the order book. A trade gets the maker fee if the trade order is not matched immediately against an order already on the order book. This order adds liquidity to the order book. When a fee is flat it is equally high or low irrespective of whether you are a taker or a maker.

When trading on the stock market there are no taker or maker fees, both parties are charged with fees, being brokerage fees. The brokerage fees are normally dependent upon from which account you are trading.

Today, an “industry standard” is that the taker fees are in the interval of 0.20% – 0.25%. Brokerage fees, however, vary from country to country but a global industry average is far below the above-mentioned interval. On the flip side, some crypto exchanges offer 0-fee trading (Cobinhood, ZB.com, Indodax, Coincheck) (and a few exceptions even offer negative trading fees, usually maker fees, meaning that you can get paid to trade: BitMEX and HitBTC). To Cryptowisser’s knowledge, there are no such brokerage fees in the world of share trading.

A final difference between shares and cryptocurrencies to highlight is that many cryptocurrency exchanges charge withdrawal fees when a trader wants to take home his/her profits. This is uncommon when share trading.

Conclusion

The conclusion to be drawn based on the above analysis is easy: an investment in cryptocurrencies is riskier than an investment in shares. The price of a share is more correctly set by the market (as the company releases financial statements periodically that are the basis for different valuation models to apply). But, on the flip side, an investment in cryptocurrencies provides less “obstacles” to be concerned with (e.g., less prohibited trading practices and unlimited trading hours) and the potential for generating extreme profits is much bigger in the crypto world (mostly due to the volatility in the crypto world).

Just as with any investment practice, our recommendation is to do your research before starting to trade in crypto. We hope that this has helped you learn more about the difference between shares and cryptocurrencies.

 

This article by Richard was originally published at CoinCentral.com


Major Players header image

EP 15: Coinbase Adding ETC, McAfee for President and More!

Coinbase announced they will add Ethereum Classic, McAfee claims he will run for President in 2020. Fidelity with over 4 trillion in assets sets up a cryptocurrency desk and Wells Fargo bans purchasing of digital assets. Billy and I discuss this and more on this weeks episode of Our Two Satoshis.

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One of the World’s Top 5 GPU Mines, Launches The Most Advanced Trading Ecosystem, AI Trader. 

The Autonomous Trading Platform currently generates on average 82% monthly returns on Cryptocurrency trading and over 100% profits while Leverage Trading across all strategies.

This is a PRESS RELEASE. The views herein are not of cryptofizz.com

Dubai, May 24, 2018 – One of the World’s Top 5 GPU based mining firms announces the launch of a breakthrough autonomous cryptocurrency trading platform, AI Trader.

Dubai, also deemed as the Silicon Valley for the Middle East, now houses one of the World’s Largest GPU based crypto mine with a 7 MW facility called Kingdom Mining. The mine has been fully operational since April 2017. “We developed an AI ecosystem with a team of expert traders from established financial firms such as Morgan Stanley and Deutsche Bank and specialists from the fields of machine learning and artificial intelligence. Prior to this as other miners do, we generally HODL most of our production. We have found AI to mitigate our mining income shortfalls when the prices dropped in February and March. Since then we have been improving the systems and its GUI to let our crypto community benefit from this creation.”

How it works

The ground-breaking AI Ecosystem enables users to autonomously trade cryptocurrencies whereby they simply choose a pair to trade and click play. AI Trader uses Artificial Intelligence to review and make trading decisions based on real-time market information. It has also been programmed to recognise market conditions optimal for trading in order to realise gains.

Performance

Not only have the systems managed to significantly mitigate the HODL losses for the creators of the system but it’s strategies are currently yielding 82% on average monthly returns while trading cryptocurrencies and 120% while leverage trading across all strategies. These results are posted on their website and updated in real-time. Users can download and see these results based on every single transaction the AI made.

Key Features 

AI Trader was developed based on two core principles, “keep it simple” & “make it transparent”. “We have intentionally kept our platform simple. Instead of offering several bots that present trading solutions on varied parameters we developed a holistic AI ecosystem that takes account of all best practices in the world of cryptocurrency trading.” You don’t find complicated graphs and charts on AI Trader, instead carefully developed strategies to trade specific currencies are presented in a game-changing GUI. Some of its key features include:

Dynamic Equity Management

The AI uses behavioural sciences to recover any losses it might have incurred whilst trading. It enters the trade back with a higher amount and attempts to recover the incurred loss. Just as a human trader would.

Trading Results

The latest trading results give you an overview of how the AI’s strategy performed in the last 30 days. It also gives you the value you would have generated if you would HODL instead. You can also download a full transaction history of any given strategy in a CSV format.

Multiple Exchanges Supported 

Unlike other trading bots, AI Trader offers its complete system currently powered by both Binance and Bitmex trading backend to all registered users. In the future they will be adding Bittrex on to the platform and all current users will also be given access to the same at no additional costs. Any future exchanges and upgrades added are also free of charge for the registered users. AI Trader at no point has access to the user’s funds; once a trade is completed, the results reflect in the user’s exchange account. Unlike other platforms where users can trade only a selected few pairs. AI trader offers every single pair available on the supported exchange to traders.

https://www.youtube.com/watch?v=dqz65lSjM2w

Referral Program

The platform has also announced one of the most attractive referral programs in the market. Influencers receive 10% lifetime commission of the referred customer. The customer also receives a 10% lifetime discount.

Subscription Details

The platform offers three different pricing packages; starting from 150 USD. This enables the firm to make further improvements to the system. Currently, Litecoin, Bitcoin Cash and Credit Card/PayPal payments are allowed.

Final Thoughts

AI Trader is undeniably a one of a kind platform, that's set to disrupt the way crypto trading is done today. It fundamentally shakes the current paradigm of trading, simplifying it to a degree users have not experienced before.

We have also availed a 10% discount for all our audience, you can claim the same by clicking the following link: https://app.aitrader.ai/referral/kxkeb

For more information on AI Trader and its features, feel free to check out their website https://aitrader.ai/

Platform Overview: https://www.youtube.com/watch?v=dqz65lSjM2

Follow AI Trader on Twitter: https://twitter.com/Aitrader_Ai

About AI Trader: https://aitrader.ai/about

Contact AI Trader: contact@aitrader.ai